TORONTO – November 28, 2019 – Horizons ETFs Management (Canada) Inc. (“Horizons ETFs”) announced today that it has completed the reorganization (the “Reorganization”) of twenty-nine exchange-traded funds (the “Reorganized ETFs”) listed in the table below into Horizons ETF Corp., a single multi-class corporate fund structure managed by Horizons ETFs, as approved by unitholders of the ETFs at special meetings held earlier this month. The Reorganization was effected after the close-of-business on November 27, 2019.

Twenty-five of the Reorganized ETFs listed in the table are the Horizons ETFs’ BetaPro suite of ETFs – a unique-to-Canada ETF structure that offers investors leveraged, inverse and inverse-leveraged exposure to twelve different indices and asset classes. Four of the Reorganized ETFs listed below, Horizons Gold ETF (“HUG”), Horizons Silver ETF (“HUZ”), Horizons Crude Oil ETF (“HUC”) and Horizons Natural Gas ETF (“HUN”) are ETFs within Horizons ETFs’ Commodity suite of ETFs, which use swaps and futures contracts in order to obtain commodity exposure.

Following months of hard work with our advisors, bank counterparties, unitholders and the regulators, we are excited to announce that we have successfully reorganized our BetaPro and Commodity suites of ETFs into our new corporate class structure,said Steve Hawkins, President and CEO of Horizons ETFs. “We wanted to keep things as straightforward as possible so none of the investment objectives, names or ticker symbols of the ETFs changed. This new corporate class structure simply allows Horizons ETFs to continue to provide tax-efficient exposure to a variety of popular asset classes.

The following Reorganized ETFs will begin trading on the TSX as a corporate class of ETF shares of Horizons ETF Corp., effective today:

REORGANIZATION INTO CORPORATE CLASS TO BE EFFECTIVE AS OF END OF DAY, NOVEMBER 27, 2019
 
Commodity Suite of ETFs
ETF Name Ticker
Horizons Gold ETF HUG
Horizons Silver ETF HUZ
Horizons Crude Oil ETF HUC
Horizons Natural Gas ETF HUN
 
BetaPro Suite of ETFs
ETF Name Ticker
BetaPro Gold Bullion 2x Daily Bull ETF HBU
BetaPro Gold Bullion -2x Daily Bear ETF HBD
BetaPro Crude Oil 2x Daily Bull ETF HOU
BetaPro Crude Oil -2x Daily Bear ETF HOD
BetaPro Natural Gas 2x Daily Bull ETF HNU
BetaPro Natural Gas -2x Daily Bear ETF HND
BetaPro Silver 2x Daily Bull ETF HZU
BetaPro Silver -2x Daily Bear ETF HZD
BetaPro S&P/TSX 60™ 2x Daily Bull ETF HXU
BetaPro S&P/TSX 60™ -2x Daily Bear ETF HXD
BetaPro S&P/TSX Capped Financials™ 2x Daily Bull ETF HFU
BetaPro S&P/TSX Capped Financials™ -2x Daily Bear ETF HFD
BetaPro S&P/TSX Capped Energy™ 2x Daily Bull ETF HEU
BetaPro S&P/TSX Capped Energy™ -2x Daily Bear ETF HED
BetaPro NASDAQ-100® 2x Daily Bull ETF HQU
BetaPro NASDAQ-100® -2x Daily Bear ETF HQD
BetaPro S&P 500® 2x Daily Bull ETF HSU
BetaPro S&P 500® -2x Daily Bear ETF HSD
BetaPro Canadian Gold Miners 2x Daily Bull ETF HGU
BetaPro Canadian Gold Miners -2x Daily Bear ETF HGD
BetaPro Marijuana Companies 2x Daily Bull ETF HMJU
BetaPro Marijuana Companies Inverse ETF HMJI
BetaPro S&P/TSX 60™ Daily Inverse ETF HIX
BetaPro S&P 500® Daily Inverse ETF HIU
BetaPro S&P 500 VIX Short-Term Futures™ ETF HUV
 

As previously announced on November 12, 2019, Horizons ETFs anticipates that it will complete a similar corporate class reorganization in respect of the fifteen ETFs from Horizons ETFs’ Total Return suite of ETFs, after the close-of-business on November 29, 2019 (the “Subsequent Reorganization”). Following the Subsequent Reorganization, these fifteen Total Return ETFs will begin trading on the TSX as a corporate class of ETF shares of Horizons ETF Corp. on December 2, 2019.

The Reorganization, and the Subsequent Reorganization, are not expected to be taxable events for Canadian resident unitholders of the affected ETFs provided that unitholders with ETF units in taxable accounts make a joint election with Horizons ETF Corp. under Section 85 of the Income Tax Act (Canada) for the exchange of their trust units into the corresponding class of ETF Shares of Horizons ETF Corp. to occur on a tax-deferred basis. Horizons ETFs has established a process to provide assistance to unitholders in taking the necessary steps to file the joint election, which is available free of charge. Additional information can be found here: https://www.horizonsetfs.com/section-85-election

About Horizons ETFs Management (Canada) Inc. (www.HorizonsETFs.com)
Horizons ETFs Management (Canada) Inc. is an innovative financial services company and offers one of the largest suites of exchange traded funds in Canada. The Horizons ETFs product family includes a broadly diversified range of solutions for investors of all experience levels to meet their investment objectives in a variety of market conditions. Horizons ETFs has approximately $10 billion of assets under management and 91 ETFs listed on major Canadian stock exchanges.

For investor inquiries:
Contact Horizons ETFs at 1-866-641-5739 (toll-free) or (416) 933-5745
info@horizonsetfs.com

For media inquiries:
Contact Jonathan McGuire
External Communications Manager
Horizons ETFs Management (Canada) Inc.
(416) 640-2956
jmcguire@horizonsetfs.com

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Horizons ETFs Announces November 2019 Distributions for its Covered Call ETFs

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Commissions, management fees and expenses all may be associated with an investment in exchange traded products managed by Horizons ETFs Management (Canada) Inc. (the "Horizons Exchange Traded Products"). The Horizons Exchange Traded Products are not guaranteed, their values change frequently and past performance may not be repeated. The prospectus contains important detailed information about the Horizons Exchange Traded Products. Please read the relevant prospectus before investing.

The Horizons Exchange Traded Products include our BetaPro products (the “BetaPro Products”). The BetaPro Products are alternative mutual funds within the meaning of National Instrument 81-102 Investment Funds, and are permitted to use strategies generally prohibited by conventional mutual funds: the ability to invest more than 10% of their net asset value in securities of a single issuer, to employ leverage, and engage in short selling to a greater extent than is permitted in conventional mutual funds. While these strategies will only be used in accordance with the investment objectives and strategies of the BetaPro Products, during certain market conditions they may accelerate the risk that an investment in shares of a BetaPro Product decreases in value. The BetaPro Products consist of our 2x Daily Bull and 2x Daily Bear ETFs (“2x Daily ETFs”), Inverse ETFs (“Inverse ETFs”) and our BetaPro S&P 500 VIX Short-Term Futures™ ETF (the “VIX ETF”). Included in the 2x Daily ETFs and the Inverse ETFs are the BetaPro Marijuana Companies 2x Daily Bull ETF (“HMJU”) and BetaPro Marijuana Companies Inverse ETF (“HMJI”), which track the North American MOC Marijuana Index (NTR) and North American MOC Marijuana Index (TR), respectively. The 2x Daily ETFs and certain other BetaPro Products use leveraged investment techniques that can magnify gains and losses and may result in greater volatility of returns. These BetaPro Products are subject to leverage risk and may be subject to aggressive investment risk and price volatility risk, among other risks, which are described in their respective prospectuses. Each 2x Daily ETF seeks a return, before fees and expenses, that is either 200% or –200% of the performance of a specified underlying index, commodity futures index or benchmark (the “Target”) for a single day. Each Inverse ETF seeks a return that is –100% of the performance of its Target. Due to the compounding of daily returns a 2x Daily ETF’s or Inverse ETF’s returns over periods other than one day will likely differ in amount and, particularly in the case of the 2x Daily ETFs, possibly direction from the performance of their respective Target(s) for the same period. Hedging costs charged to BetaPro Products reduce the value of the forward price payable to that ETF. Due to the high cost of borrowing the securities of marijuana companies in particular, the hedging costs charged to HMJI are expected to be material and are expected to materially reduce the returns of HMJI to unitholders and materially impair the ability of HMJI to meet its investment objectives. Currently, the manager expects the hedging costs to be charged to HMJI and borne by unitholders will be between 10.00% and 45.00% per annum of the aggregate notional exposure of HMJI’s forward documents. The hedging costs may increase above this range. The manager will publish, on its website, the updated monthly fixed hedging cost for HMJI for the upcoming month as negotiated with the counterparty to the forward documents, based on the then current market conditions. The VIX ETF, which is a 1x ETF, as described in the prospectus, is a speculative investment tool that is not a conventional investment. The VIX ETF’s Target is highly volatile. As a result, the VIX ETF is not intended as a stand-alone long-term investment. Historically, the VIX ETF’s Target has tended to revert to a historical mean. As a result, the performance of the VIX ETF’s Target is expected to be negative over the longer term and neither the VIX ETF nor its target is expected to have positive long-term performance. Investors should monitor their holdings in BetaPro Products and their performance at least as frequently as daily to ensure such investment(s) remain consistent with their investment strategies.

*The indicated rates of return are the historical annual compounded total returns including changes in per unit value and reinvestment of all dividends or distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. The rates of return shown in the table are not intended to reflect future values of the ETF or returns on investment in the ETF. Only the returns for periods of one year or greater are annualized returns.