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Two new thematic ETFs will invest in popular U.S.-listed ETF strategies offered by its US sister company Global X ETFs

TORONTO – December 2, 2021 – Horizons ETFs Management (Canada) Inc. (“Horizons ETFs”) is pleased to announce the launches of the Horizons GX Cybersecurity Index ETF (“HBUG”) and the Horizons GX Telemedicine and Digital Health Index ETF (“HDOC” and together, the “ETFs”). Units of the ETFs will begin trading today on the Toronto Stock Exchange (“TSX”) under the ticker symbols HBUG:TSX and HDOC:TSX, respectively.

Thematic investing seeks to capture opportunities created by structural trends. Two major thematic trends in technology are the ever-growing need to improve and expand cybersecurity, and the rapid increase of digital health solutions. Global X Management Company LLC (“Global X ETFs”) is one of the fastest growing ETF providers based in the United States with more than US $42 billion in assets under management, primarily focused on thematic ETFs. Global X ETFs has built leading products in both cybersecurity and digital health themes; HBUG and HDOC are ETFs of ETFs and will seek to replicate their respective indices by investing in the underlying U.S.-listed ETFs as well as optimizing exposure for Canadian investors by adding a currency hedge. 

“Both Horizons ETFs and Global X ETFs have strong reputations as leaders in innovation. With HBUG and HDOC, we had a great opportunity to work with the amazing team at our corporate partner Global X ETFs and bring two-best-in-class thematic mandates to the Canadian market, with each of them covering an important technological growth trend,” said Steve Hawkins, President and CEO of Horizons ETFs.

Horizons ETFs and Global X ETFs are both subsidiaries of Mirae Asset Global Investments Co. Ltd. (“Mirae Asset”). This is the first direct partnership of the two corporate entities to bring these Global X ETFs products to the Canadian marketplace through an ETF wrapper.

“Through this partnership, Horizons ETFs and Global X ETFs have been able to leverage their collective ETF industry and thematic investing expertise,” said Luis Berruga, CEO of Global X ETFs. “We’re thrilled to be working with the top-notch team at Horizons ETFs to offer Canadian investors locally-listed access to two disruptive and growing themes that are driving the future forward.”

ETF Name
and Ticker
Summary of
Investment Objective
Management Fee*
Horizons GX Cybersecurity
Index ETF (HBUG:TSX)
HBUG seeks to replicate, to the extent possible and net of expenses, the performance of an index that is designed to provide exposure to the performance of global, publicly listed companies that stand to potentially benefit from the increased adoption of cybersecurity technology, such as those whose principal business is generally engaged in the development and management of security protocols preventing intrusion and attacks to systems, networks, applications, computers and mobile devices. Currently, HBUG seeks to replicate, directly or indirectly, the performance of Indxx Cybersecurity Index, net of expenses, by investing primarily in the Global X Cybersecurity ETF (BUG:NASDAQ). HBUG seeks to hedge any U.S. dollar portfolio exposure back to the Canadian dollar at all times. 0.45%
Horizons GX Telemedicine and
Digital Health Index ETF
(HDOC:TSX)
HDOC seeks to replicate, to the extent possible and net of expenses, the performance of an index that is designed to provide exposure to the performance of global, publicly listed companies generally engaged in the field of telemedicine and digital health, as well as applications thereof. Currently, HDOC seeks to replicate, directly or indirectly, the performance of the Solactive Telemedicine & Digital Health Index, net of expenses, by investing primarily in the Global X Telemedicine & Digital Health ETF (EDOC:NASDAQ). HDOC seeks to hedge any U.S. dollar portfolio exposure back to the Canadian dollar at all times. 0.60%

*Plus applicable sales taxes.

Horizons GX Cybersecurity Index ETF

HBUG provides exposure to companies positioned to benefit from the increasing adoption of cybersecurity technology, including those offering protection against intrusion and attacks on systems, networks, applications, computers and mobile devices.

If data is the most important resource of the digital economy, protecting it is absolutely vital,” said Mr. Hawkins. “HBUG provides global exposure to the leading cybersecurity companies that are building the tools necessary to protect companies from key threats, such as hacking, malware, cyber-crime and other forms of digital extortion – all of which threaten our transition to a truly digitally-focused economy. BUG, the U.S.-listed ETF offered by Global X ETFs on this theme, has been a clear leader with more than US$1 billion in assets under management.”

Horizons GX Telemedicine and Digital Health Index ETF

The global healthcare industry is not exempt from digital disruption. The advantage of being able to deliver remote healthcare engagement and diagnostics has become crucial in expanding and providing healthcare services. Digital healthcare could be revolutionary in allowing broader access to care while potentially reducing the overall cost, as demand increases globally with aging populations in the developed world.

HDOC provides exposure to a global portfolio of companies that are heavily focused on providing digital healthcare and telemedicine services.

The global telemedicine market increased 35% from 2019 to 2020, exceeding $55 billion. According to Grand View Research, the market could reach nearly $300 billion by 2028 as more healthcare providers seek to engage their patients virtually reducing the cost of more expensive in-person care, as well as potentially increasing the reach of crucial healthcare services globally.

HDOC provides exposure to a global portfolio of companies that are leading the way in building vital digital and remote healthcare infrastructure,” said Mr. Hawkins. “The COVID-19 pandemic highlighted that many proactive and diagnostic healthcare services don’t have to be in-person to be effective. A strong, global and digital healthcare system, which may also rely upon the growing metaverse, can potentially increase the breadth and depth of healthcare services available to patients across the world.”

The ETFs closed their initial offering of units to their designated broker at the close of business on December 1, 2021, and will begin trading today on the TSX.

For more information about HBUG, please visit: www.HorizonsETFs.com/HBUG

For more information about HDOC, please visit: www.HorizonsETFs.com/HDOC

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 more than $20 billion of assets under management and 105 ETFs listed on major Canadian stock exchanges.

About Global X ETFs  (www.GlobalXETFs.com)
Global X ETFs was founded in 2008. For more than a decade, their mission has been empowering investors with unexplored and intelligent solutions. Their product line-up features more than 80 ETF strategies and over $40 billion in assets under management. While Global X is distinguished for Thematic Growth, Income and International Access ETFs, the firm also offers Core, Commodity, Alpha and Risk Management funds to suit a wide range of investment objectives.

Both Horizons ETFs and Global X ETFs are a part of the Mirae Asset Financial Group, a global leader in financial services, with more than $620 billion in assets under management worldwide. Mirae Asset has an extensive global ETF platform ranging across the US, Australia, Brazil, Canada, Colombia, Europe, Hong Kong, India, Japan, Korea and Vietnam with over $70 billion in assets under management.

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
Assistant Vice President, Corporate Communications
Horizons ETFs Management (Canada) Inc.
(416) 640-2956
jmcguire@horizonsetfs.com

Commissions, management fees and expenses all may be associated with an investment in exchange traded products (the “Horizons Exchange Traded Products”) managed by Horizons ETFs Management (Canada) Inc. 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.

Certain statements may constitute a forward-looking statement, including those identified by the expression “expect” and similar expressions (including grammatical variations thereof). The forward-looking statements are not historical facts but reflect the author’s current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking statements. These forward-looking statements are made as of the date hereof and the authors do not undertake to update any forward-looking statement that is contained herein, whether as a result of new information, future events or otherwise, unless required by applicable law.

The financial instrument is not sponsored, promoted, sold or supported in any other manner by Solactive AG nor does Solactive AG offer any express or implicit guarantee or assurance either with regard to the results of using the Index and/or Index trade name or the Index Price at any time or in any other respect. The Index is calculated and published by Solactive AG.  Solactive AG uses its best efforts to ensure that the Index is calculated correctly. Irrespective of its obligations towards the Issuer, Solactive AG has no obligation to point out errors in the Index to third parties including but not limited to investors and/or financial intermediaries of the financial instrument. Neither publication of the Index by Solactive AG nor the licensing of the Index or Index trade name for the purpose of use in connection with the financial instrument constitutes a recommendation by Solactive AG to invest capital in said financial instrument nor does it in any way represent an assurance or opinion of Solactive AG with regard to any investment in this financial instrument.

Indxx is a service mark of Indxx, LLC (“Indxx”) and may be licensed for use for certain purposes by the Manager. HBUG is not sponsored, endorsed, sold or promoted by Indxx. Indxx makes no representation or warranty, express or implied, to the owners of HBUG or any member of the public regarding the advisability of investing in securities generally or in HBUG particularly. Indxx has no obligation to take the needs of the Manager or the Unitholders of HBUG into consideration in determining, composing or calculating the Indxx Cybersecurity Index. Indxx is not responsible for and has not participated in the determination of the timing, amount or pricing of the Units to be issued or in the determination or calculation of the equation by which the Units are to be converted into cash. Indxx has no obligation or liability in connection with the administration, marketing or trading of HBUG.
 

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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 value changes frequently and past performance may not be repeated. Certain ETFs may have exposure to leveraged investment techniques that magnify gains and losses and which may result in greater volatility in value and could be subject to aggressive investment risk and price volatility risk. Such risks are described in the prospectus. The prospectus contains important detailed information about the ETF. 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 Daily Bull and Daily Bear ETFs (“Leveraged and Inverse Leveraged ETFs”), Inverse ETFs (“Inverse ETFs”) and our BetaPro S&P 500 VIX Short-Term Futures™ ETF (the “VIX ETF”). Included in the Leveraged and Inverse Leveraged 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 Leveraged and Inverse Leveraged 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 Leveraged and Inverse Leveraged ETF seeks a return, before fees and expenses, that is either up to, or equal to, 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 Leveraged and Inverse Leveraged 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 Leveraged and Inverse Leveraged ETFs, possibly direction from the performance of their respective Target(s) for the same period. For certain Leveraged and Inverse Leveraged ETFs that seek up to 200% or up to or -200% leveraged exposure, the Manager anticipates, under normal market conditions, managing the leverage ratio as close to two times (200%) as practicable however, the Manager may, at its sole discretion, change the leverage ratio based on its assessment of the current market conditions and negotiations with the respective ETF’s counterparties at that time. 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 publishes 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. BetaPro Bitcoin ETF (“HBIT”), and BetaPro Inverse Bitcoin ETF (“BITI”), which are a 1X ETF, and an up to -1X ETF, respectively, as described in the prospectus, are speculative investment tools that are not conventional investments. Their Target, an index which replicates exposure to rolling Bitcoin Futures and not the spot price of Bitcoin, is highly volatile. As a result, neither ETF is intended as a stand-alone investment. There are inherent risks associated with products linked to crypto-assets, including Bitcoin Futures. While Bitcoin Futures are traded on a regulated exchange and cleared by regulated central counterparties, direct or indirect exposure to the high level of risk of Bitcoin Futures will not be suitable for all types of investors. An investment in any of the BetaPro Products is not intended as a complete investment program and is appropriate only for investors who have the capacity to absorb a loss of some or all of their investment. Please read the full risk disclosure in the prospectus before investing. 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.

Horizons Total Return Index ETFs (“Horizons TRI ETFs”) are generally index-tracking ETFs that use an innovative investment structure known as a Total Return Swap to deliver index returns in a low-cost and tax-efficient manner. Unlike a physical replication ETF that typically purchases the securities found in the relevant index in the same proportions as the index, most Horizons TRI ETFs use a synthetic structure that never buys the securities of an index directly. Instead, the ETF receives the total return of the index through entering into a Total Return Swap agreement with one or more counterparties, typically large financial institutions, which will provide the ETF with the total return of the index in exchange for the interest earned on the cash held by the ETF. Any distributions which are paid by the index constituents are reflected automatically in the net asset value (NAV) of the ETF. As a result, the Horizons TRI ETF receives the total return of the index (before fees), which is reflected in the ETF’s share price, and investors are not expected to receive any taxable distributions. Certain Horizons TRI ETFs (Horizons Nasdaq-100 ® Index ETF and Horizons US Large Cap Index ETF) use physical replication instead of a total return swap. The Horizons Cash Maximizer ETF and Horizons USD Cash Maximizer ETF use cash accounts and do not track an index but rather a compounding rate of interest paid on the cash deposits that can change over time.

*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.