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Two new thematic ETFs offer exposure to sectors facing potential long-term structural trends

TORONTO – October 27, 2021 – Horizons ETFs Management (Canada) Inc. (“Horizons ETFs”) is pleased to announce the launches of the Horizons Global Vaccines and Infectious Diseases Index ETF (“HVAX”) and the Horizons North American Infrastructure Development Index ETF (“BLDR” and together, the “ETFs”). Units of the ETFs will begin trading today on the Toronto Stock Exchange (“TSX”) under the ticker symbols HVAX:TSX and BLDR:TSX, respectively.

Thematic investing seeks to capture opportunities created by structural trends. Two areas receiving significant attention over the past 18 months are vaccines, as part of a global pharmaceutical shift, and North American infrastructure investment. Vaccines, and the prevention of infectious disease, alongside infrastructure investment have taken on significant importance recently and have generated considerable market interest. From massive investment by global governments in COVID-19 research and vaccine development, as well as the Biden administration’s Build Back Better agenda, which pledges billions of dollars toward renewing U.S. infrastructure, both themes have an opportunity to see long term momentum based on these events.

“As a leading provider of thematic ETFs in Canada, we are proud to once again offer investors access to two of the most important themes of today,” said Steve Hawkins, President and CEO of Horizons ETFs. “Thematic ETFs, like HVAX and BLDR, provide one-stop access with exposure to long-term trends with significant growth potential. There has never been an easier time to harness thematic ETFs and get exposure to the sectors driving the future forward.”

 

ETF Name and Ticker: Horizons Global Vaccines and Infectious Diseases Index ETF (HVAX:TSX)
Investment Objective: HVAX seeks to replicate, to the extent possible and net of expenses, the performance of the Solactive Global Vaccines and Infectious Diseases Index which is designed to provide exposure to the performance of global, publicly listed companies generally engaged in the development and production of vaccines, therapeutics and diagnostics. HVAX seeks to hedge any U.S. dollar portfolio exposure back to the Canadian dollar at all times.
Management Fee*: 0.60%

ETF Name and Ticker: Horizons North American Infrastructure Development Index ETF (BLDR:TSX)
Investment Objective: BLDR seeks to replicate, directly or indirectly and net of expenses, the performance of the Solactive North American Infrastructure Development Index which is designed to provide exposure to the performance of North American, publicly listed companies generally engaged in the development and production of the building materials and equipment, as well as the logistics, construction and engineering services used for the development and maintenance of infrastructure projects. BLDR seeks to hedge any U.S. dollar portfolio exposure back to the Canadian dollar at all times.
Management Fee*: 0.60%

*Plus applicable sales taxes.

HORIZONS GLOBAL VACCINES AND INFECTIOUS DISEASES INDEX ETF (HVAX)
HVAX allows investors to gain exposure to what we expect will be a long-term global theme of vaccine development and disease prevention that has been highlighted by the COVID-19 pandemic. Due to the renewed importance of vaccines, cutting-edge therapies and pandemic preparedness, the life sciences and pharmaceutical companies engaged in infectious disease vaccines, diagnostics and treatments have received massive capital infusions; this could potentially propel further transformative innovation.

“The onset of the COVID-19 outbreak challenged many assumptions about pandemic readiness and subsequently, spurred hundreds of billions of dollars in vaccine development and acquisition spending, enriching the life sciences and pharmaceutical companies behind their development and manufacture,” said Mr. Hawkins. “As countries equip themselves and their populations against future pandemics, it is clear that the companies leading the fight against these infectious threats are well-positioned for continued long-term growth and revenue expansion.”

HORIZONS NORTH AMERICAN INFRASTRUCTURE DEVELOPMENT INDEX ETF (BLDR)

BLDR provides exposure to the North American companies that are benefitting or are expected to benefit from crucial public and private infrastructure investment – an important long-term trend that has become increasingly prominent due to recent political momentum in the U.S. and the impacts of climate change. Much of the major infrastructure in North America is a half-century old and will require extensive public and private investment to ensure the United States and Canada have the ability to accommodate population expansion and economic growth.

“The twin challenges of aging infrastructure and the need for climate change resiliency means that infrastructure investment has never been more critical for the future of North America. Thankfully, both the U.S. and Canadian governments are taking action,” said Mr. Hawkins. “The U.S.’s Infrastructure Investment and Jobs Act, which pledges over $500 billion towards renewing and creating physical, transit and utility infrastructure, will require millions of workers, creating an unprecedented investment opportunity that could benefit both investors and the broader economy.”

The ETFs closed their initial offering of units to their designated broker at the close of business on October 26, 2021, and will begin trading today on the TSX.

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

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

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 $20 billion of assets under management and 101 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
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.

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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.