Horizons Active A.I. Global Equity ETF will be the world’s first global equity ETF propelled by artificial intelligence
 
TORONTO November 1, 2017 – Horizons ETFs Management (Canada) Inc. (“Horizons ETFs”) is pleased to announce the launch of the Horizons Active A.I. Global Equity ETF (“MIND”). MIND is the first exchange traded fund (“ETF”) in Canada, and the first global equity-focused ETF in the world, to use artificial intelligence (“A.I.”) for all security selection decisions.
 
MIND provides low-cost*, actively managed exposure to global equity indices, by primarily using North American ETFs. Units of the ETF will begin trading today on the Toronto Stock Exchange (“TSX”) under the ticker symbol MIND.
 
 ETF Name  Ticker  Management Fee
 Horizons Active A.I. Global Equity ETF  MIND
 
 0.55%
 (plus applicable sales taxes)
 
MIND seeks to achieve long-term equity returns through investments in major global equity indices using a basket of primarily North American-listed ETFs. MIND is sub-advised by Mirae Asset Global Investments (“Mirae Asset”), which uses an investment strategy entirely run by a proprietary and adaptive artificial intelligence system that analyzes data and extracts patterns. Horizons MIND may also hold cash and cash equivalents.
 
The machine learning process underpinning MIND’s investment strategy is known as Deep Neural Network Learning – which is a construct of artificial neural networks that enable the A.I. system to recognize patterns and make its own decisions, much like how the human brain works, but at hyper-fast speeds.
 
“The launch of MIND represents another milestone for Horizons ETFs and Mirae Asset’s global ETF business, as we strive to offer the best possible investment solutions through global collaborations,” said Taeyong Lee, President and Global Head of ETF Business, Mirae Asset Global Investments.
 
“MIND is expected to be able to more efficiently process market data and allocate assets than any human manager,” said Steve Hawkins, President and Co-CEO of Horizons ETFs. “Unlike today’s portfolio managers who may be susceptible to investor biases such as overconfidence or cognitive dissonance, MIND is devoid of all emotion. It is purely systematic in how it makes investment decisions.”
 
MIND monitors more than 50 investment metrics as the key development inputs from which it analyzes patterns and makes investment decisions. Some of the these primary inputs include: 80-Day Simple Moving Average, Beta, Sharpe Ratio, Money Flow, 6-Month Relative Performance, 90-Day Volatility, Simple RSI, Exponential RSI, Wilder Smoothing RSI, Moving Average Crossovers, Maximum Drawdown, Short Interest and Correlation.
 
MIND rebalances its holdings on a monthly basis to give the A.I. more flexibility around the investment allocation process. Additionally, the A.I. adheres to a set of minimum and maximum exposure requirements, such as cash and cash equivalent holdings, regional restrictions and country restrictions.
 
“Despite Canadian investors slowly overcoming their home bias and wanting to invest in international markets, the expertise required for a global strategy can be costly and time-consuming for the average investor to pursue,” said Mr. Hawkins. “In our view, an A.I. system, as an active manager in this space, significantly streamlines the process and makes buying a whole world of ETFs as easy as trading a single stock on an exchange.”
 
South Korean-based Qraft Technologies Inc. (“Qraft”), a manufacturer of A.I. investment systems for various financial institutions, created the technology powering MIND. In 2016, Mirae Asset contracted Qraft to create the A.I. to perform the investment decisions for the Mirae Asset AI Smart Beta/Smart Beta Market Hedged Fund, as well as the Mirae Asset AI ASEAN Fund.
 
To ensure that MIND had the necessary experience to actively manage a global equity portfolio on a forward-looking basis, Qraft did rigorous live testing with 10-years of historical investment data to give MIND’s A.I. system the necessary experience it needed to interpret data, draw conclusions and allocate assets.
 
Qraft is a founding partner of the Mirae Asset Intelligent Finance Research Center and continues to develop artificial intelligence technology that can be applied directly to financial business, working in cooperation with Korea University.
 
MIND has closed its initial offering of units and will begin trading on the TSX when the market opens this morning.
 
* Relative to the typical MER of comparable strategy mutual funds.
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Horizons Announce October 2017 Distribution for Certain Active ETFs

Horizons ETFs is a Member of Mirae Asset Global Investments. 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 units 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 15.00% and 35.00% 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.