TORONTO – January, 24, 2020 – Horizons ETFs Management (Canada) Inc. (“Horizons ETFs”) is proud to announce that five of its exchange-traded funds (“ETFs”) have been awarded Fundata FundGrade A+® Awards (“Fundata Awards”) for 2019:

ETF Name Category Category Size
Horizons Active CDN Bond ETF ("HAD") Canadian Fixed Income 310
Horizons Active CDN Dividend ETF ("HAL") Canadian Dividend & Income Equity 356
Horizons S&P/TSX 60™ Index ETF ("HXT") Canadian Equity 429
Horizons NASDAQ-100 ® Index ETF ("HXQ") U.S. Equity 883
Horizons Canadian Midstream Oil & Gas Index ETF ("HOG") Energy Equity 39
 

Created by Fundata Canada Inc., the FundGrade rating system uses risk-adjusted performance figures to rank and grade Canadian investment funds, which include ETFs. Based on up to 10 years of performance data, the ‘A+ Grade’ is strictly a quantitative calculation conducted on an annual basis, which results in a grade score ranking, according to the fund classification standards defined by the Canadian Investment Funds Standards Committee (“CIFSC”).

For a second year in a row, five of our funds have earned FundGrade A+ awards, including four that were recognized previously for their performance,” said Steve Hawkins, President and CEO of Horizons ETFs. “The market conditions in 2019 were very different than 2018, which just underscores that many of these award winners can deliver consistent relative performance throughout different market environments.

Two of Horizons ETFs’ 2019 award-winning funds are sub-advised by two of Canada’s leading investment managers. HAD, an actively-managed ETF that focuses on high-quality Canadian fixed income securities, is sub-advised by Fiera Capital Corporation (“Fiera Capital”). HAL, a Canadian dividend-focused ETF, is actively managed by Guardian Capital LP. Both ETFs are previous award recipients.

Horizons ETFs is very proud of its longstanding partnerships with two of Canada’s leading investment managers: Fiera Capital, subadvisor to our actively-managed fixed income ETF suite, and Guardian Capital LP, subadvisor to our actively-managed dividend ETF suite,” said Mr. Hawkins. “HAD and HAL once again demonstrate there is real value in using experienced active portfolio management teams in certain assets classes like Canadian fixed income and dividend-paying stocks.

HXT and HXQ were recognized by the Fundata Awards for their respective achievements in the Canadian and U.S. Equity categories. HXT, the lowest-cost 1 ETF in Canada, has an effective management fee of 0.03%. HXQ provides benchmark exposure to the NASDAQ-100®. Both ETFs are a part of Horizons ETFs’ corporate class ETF family, a structure which can help provide minimal tracking error, and tax-efficiency for taxable accounts.

The twin-wins of HXT and HXQ in their respective categories are evidence of our ability to offer award-winning exposure on both sides of the 49th parallel,” said Mr. Hawkins. “While HXT has been recognized previously, this is the first time that HXQ has earned the award in its category. HXQ was recognized based on its 2019 performance, and since then we have made changes to the structure of HXQ for 2020 – where we continued to reduce the overall cost of ownership of this ETF2 – which we believe should further improve its value proposition for existing and future investors.

Horizons ETFs’ HOG was recognized by the 2019 Fundata Awards in the Energy Equity category. A benchmark strategy, HOG seeks to replicate, to the extent possible, the performance of the Solactive Canadian Midstream Oil & Gas Index, net of expenses. It provides investors with exposure to the equity securities of Canadian oil and gas companies operating in the midstream sector.

Investing in energy pipeline and services companies has historically been a lower-risk way for investors to get exposure to the energy equity markets since these companies are less dependent on energy prices than companies involved in oil and gas extraction,” said Mr. Hawkins. “HOG has allowed investors to capture a meaningful amount of the upside of the Canadian midstream oil & gas sector’s rebound in 2019, resulting in HOG’s one year return of 20.48%.

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 $10.5 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
Corporate Communications Manager
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.

1Compared to other Canadian physically replicated ETFs in the “Canadian Equity” Morningstar category. HXT has the lowest management fee among a total of 49 ETFs when accounting for its rebate, as at December 31, 2019. Annual management fee rebated by 4bps (0.04%) to an effective management fee of 3bps, or 0.03%, effective October 1, 2015, until at least December 31, 2020.

2Compared to all other Canadian ETFs tracking the NASDAQ-100® Index. HXQ has the lowest management fee and MER among a total of 4 ETFs, which includes the trading expense ratio (TER), as at December 31, 2019.

FundGrade A+® is used with permission from Fundata Canada Inc., all rights reserved. The annual FundGrade A+® Awards are presented by Fundata Canada Inc. to recognize the “best of the best” among Canadian investment funds. The FundGrade A+® calculation is supplemental to the monthly FundGrade ratings and is calculated at the end of each calendar year. The FundGrade rating system evaluates funds based on their risk-adjusted performance, measured by Sharpe Ratio, Sortino Ratio, and Information Ratio. The score for each ratio is calculated individually, covering all time periods from 2 to 10 years. The scores are then weighted equally in calculating a monthly FundGrade. The top 10% of funds earn an A Grade; the next 20% of funds earn a B Grade; the next 40% of funds earn a C Grade; the next 20% of funds receive a D Grade; and the lowest 10% of funds receive an E Grade. To be eligible, a fund must have received a FundGrade rating every month in the previous year. The FundGrade A+® uses a GPA-style calculation, where each monthly FundGrade from “A” to “E” receives a score from 4 to 0, respectively. A fund’s average score for the year determines its GPA. Any fund with a GPA of 3.5 or greater is awarded a FundGrade A+® Award. For more information, see www.FundGradeAwards.com. Although Fundata makes every effort to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Fundata.

Performance for HAD for the period ending December 31, 2019 is as follows: 6.17% (1 year), 4.07% (3 years), 2.98% (5 years) and 3.04% (since inception on October 10, 2012). HAD was awarded its FundGrade A+ Award for the one-year period ending December 31, 2019. In its award category – Canadian Fixed Income – HAD was in competition with 310 other investment funds.

Performance for HAL for the period ending December 31, 2019 is as follows: 30.03% (1 year), 9.67% (3 years), 7.99% (5 years) and 9.62% (since inception on February 9, 2010). HAL was awarded its FundGrade A+ Award for the one-year period ending December 31, 2019. In its award category – Canadian Dividend & Income Equity – HAL was in competition with 356 other investment funds.

Performance for HXT for the period ending December 31, 2019 is as follows: 21.89% (1 year), 7.31% (3 years), and 6.69% (5 years) and 7.05% (since inception on September 14, 2010). HXT was awarded its FundGrade A+ Award for the one-year period ending December 31, 2019. In its award category – Canadian Equity – HXT was in competition with 429 other investment funds.

Performance for HXQ for the period ending December 31, 2019 is as follows: 31.78% (1 year), 20.72% (3 years) and 20.77% (since inception on April 19, 2016). HXQ was awarded its FundGrade A+ Award for the one-year period ending December 31, 2019. In its award category – U.S. Equity – HXQ was in competition with 883 other investment funds.

Performance for HOG for the period ending December 31, 2019 is as follows: 20.48% (1 year), 1.20% (3 years), 1.52% (5 years) and 1.88% (since inception on July 14, 2014). HOG was awarded its FundGrade A+ Award for the one-year period ending December 31, 2019. In its award category – Energy Equity – HOG was in competition with 39 other investment funds.

For more information on the rating system, visit www.Fundata.com/ProductsServices/FundGrade.aspx.

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Horizons ETFs Announces Meeting of Unitholders of Horizons Emerging Marijuana Growers Index ETF (HMJ

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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 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. 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.