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MTAV provides exposure to companies enabling the development of the unified, virtual world of the future.

TORONTO – November 25, 2021 – Horizons ETFs Management (Canada) Inc. (“Horizons ETFs”) is pleased to announce that it is launching the Horizons Global Metaverse Index ETF (“MTAV”). Units of MTAV have been conditionally approved for listing by the Toronto Stock Exchange (“TSX”) and are slated to begin trading on November 29, 2021, under the ticker symbol MTAV:TSX.

MTAV will be Canada’s first index-based exchange traded fund (“ETF”) focused on the emerging metaverse opportunity. MTAV is an index (or passively managed) ETF, which seeks to replicate, to the extent possible, the performance of the Solactive Global Metaverse Index (the “Index”). The Index is designed to provide exposure to global, publicly listed companies that potentially stand to benefit from the adoption and usage of technologies expected to grow and support the functioning of the metaverse.

The metaverse companies in the Index will be made up of the following key segments:

  1. Augmented / Virtual Reality: Companies engaged in the production of technologies, software, and hardware that allow consumers and businesses to interact in immersive extended realities. This includes the production of wearable devices, specialized optics and displays, as well as, audio and sensory equipment. These companies are expected to allow end-users to transcend physical spaces and fully immerse themselves into the metaverse.
  2. Creator Economy: Companies that offer consumer software tools, social media, and other distribution platforms that make it possible for individual creators to create, share, and transact directly with their consumers. This includes the provision of programs and services used for editing and sharing user generated content. These companies are expected to unlock the value chain of the creator economy in the metaverse.
  3. Digital Infrastructure: Companies engaged in the development, operation and distribution of technologies, services and hardware related to network infrastructure, big data, digital platforms and cloud computing. 
  4. Digital Marketplace: Companies engaged in the provision of a digital economy including platforms and services to facilitate virtual interactions and online commerce, as well as the integration of social network platforms. These companies are expected to play a key role in the digital economy of the metaverse.
  5. Gaming: Companies involved in the provision, development, and distribution of technologies, infrastructure and hardware used for the creation, streaming, and consumption of online gaming and e-sports content. This includes the development of online games, the production of gaming equipment, as well as, the provision of services and platforms necessary for the functioning of the gaming ecosystem expected to be central to the metaverse. 
  6. Digital Payments: Companies engaged in the development, distribution and integration of infrastructure, software, and applications related to digital payment services and blockchain technologies. This includes digital payment processes, platforms, including fiat currency “on-ramps” to decentralized finance (DeFi) applications. These companies are expected to provide the payment rails for the metaverse. 

The metaverse is the next frontier of the human experience and technological innovation. We believe that the metaverse will become an extremely important realm for social and economic interaction over the next decade,” said Steve Hawkins, President and CEO of Horizons ETFs. “Even today, these technologies are already reframing the way that we engage with one another, from virtual reality to non-fungible tokens (“NFTs”). MTAV is the first index-based ETF in Canada to offer direct exposure to the global companies that are investing heavily in building and expanding the digital worlds that encompass the metaverse.”
 

ETF Name: Horizons Global Metaverse Index ETF
Ticker: (MTAV:TSX)
Management Fee: 0.55% (Plus applicable sales taxes.)
Investment Objective: MTAV seeks to replicate, to the extent possible and net of expenses, the performance of an index that seeks to provide exposure to global, publicly listed companies that potentially stand to benefit from the adoption and usage of technologies expected to grow and support the functioning of the metaverse. Currently, the ETF seeks to replicate the performance of the Solactive Global Metaverse Index, net of expenses. The ETF seeks to hedge any U.S. dollar portfolio exposure back to the Canadian dollar at all times.

“Analysts are predicting the metaverse opportunity to reach at least $800 billion of market capitalization by 2024 and that it is likely to grow exponentially from there as more people and businesses integrate into it,” said Mr. Hawkins. “We were also very pleased to be working again with our innovative index partner Solactive AG; it required their extensive expertise to build an index that adequately captures a complex concept like the metaverse. We are confident that MTAV’s exposure to this index will provide Canadian investors an ideal solution to access the rapid pace of technological innovation and change occurring from within this exciting theme.”

MTAV will close the initial offering of units to its designated broker at 9am tomorrow, November 26, 2021.

For further information about MTAV, please visit: www.HorizonsETFs.com/MTAV

About Horizons ETFs Management (Canada) Inc. (www.HorizonsETFs.com)

 Horizons ETFs Management (Canada) Inc. is an innovative financial services company and offers one of Canada's largest suites of exchange traded funds. 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 103 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.

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.

Neither Horizons ETFs nor Solactive AG shall have any liability, contingent or otherwise, to any person or entity for the quality, accuracy, timeliness and/or completeness of the Index, the data of the Index, or for delays, omissions or interruptions in the delivery of the Index or data related thereto. Neither Horizons ETFs nor Solactive AG makes any warranty, express or implied, as the results to be obtained by any person or entity in connection with any use of the Index, including but not limited to the trading of or investments in MTAV or related to the Index, any data related thereto or any components thereof. Neither Horizons ETFs nor Solactive AG makes any express or implied warranties, and hereby expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to the Index or any data related thereto. Without limiting any of the foregoing, in no event shall Horizons ETFs or Solactive AG have any liability for any special, punitive, indirect, or consequential damages (including lost profits), in connection with any use by any person of the Index, MTAV or any products related thereto, even if notified of the possibility of such damages. Neither Horizons ETFs nor Solactive AG is an advisor as to legal, taxation, accounting, regulatory or financial matters in any jurisdiction, and is not providing any advice as to any such matter.

 

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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.