Horizons ETFs receives awards for Best Canadian Dividend & Income Equity ETF¹, Best Canadian Fixed Income ETF¹, Best Financial Services Equity ETF¹ and Best US Equity ETF¹

TORONTO – November 19, 2020 – Horizons ETFs Management (Canada) Inc. (“Horizons ETFs”) is proud to announce that four of its exchange traded funds (“ETFs”) won “best” in their respective ETF categories at the 2020 Lipper Fund Awards from Refinitiv (“Lipper Fund Awards”) ¹.

The following ETFs won individual awards:

ETF Name Ticker Lipper Fund
ETF Awards Category
Award
Period
Horizons Active CDN Dividend ETF HAL Canadian Dividend & Income Equity 5 Years
Horizons Active CDN Bond ETF HAD Canadian Fixed Income 3 Years
Horizons Active CDN Bond ETF HAD Canadian Fixed Income 5 Years
Horizons S&P/TSX Capped Financials Index ETF HXF Financial Services Equity 3 Years
Horizons NASDAQ-100 ® Index ETF HXQ US Equity 3 Years
 

These Lipper Fund Award achievements are a well-timed complement to what has been a record-breaking year at Horizons ETFs,” said Steve Hawkins, President and CEO of Horizons ETFs. “This year, we surpassed $15 billion in assets under management at the end of October. The recognition of the successes of these funds, from our active strategies to our Total Return Index ETFs, and their subsequent recognition by advisors and investors, is part of the reason why we were able to achieve approximately $5 billion in inflows in 2020 so far.”

The Lipper Fund Awards are calculated based on a comparison with other ETFs in the same Canadian Investment Funds Standards Committee (“CIFSC”) category. The 2020 Lipper Fund Awards are given to funds that deliver consistently strong risk-adjusted performance relative to their peers, for various time periods ending July 31, 2020.

Following its first ever Lipper Fund Award recognition in 2019, HAL has once again received the 2020 Lipper Fund Award in the Canadian Dividend & Income Equity ETF category¹ for the five-year period. HAL ranked first out of 11 ETFs eligible for consideration.

HAL’s recognition for a second year in a row is testament to the cutting-edge investment approaches being undertaken by the i3 Investments team at Guardian Capital,” said Mr. Hawkins. “The fusion of advanced machine learning techniques, enhanced by the i3 Investment team’s experience-driven insights has resulted in a portfolio that offers investors sustainable dividends and income at a time when yield is becoming harder to access across the investment landscape.”

For both the three- and five-year periods ending July 31, 2020, HAD received the 2020 Lipper Fund Award in the Canadian Fixed Income ETF category¹, ranking first out of 17 in the three-year category and 12 in the five-year category, respectively. HAD was also recognized last year by the Lipper Fund Awards for both the three and five-year periods.

“Throughout the market turmoil unleashed in 2020, Fiera Capital proved its ability to expertly navigate a fixed income crisis, and that shows in the management of HAD,” said Mr. Hawkins. “HAD continues to be recognized by the Lipper Fund Awards, year-after-year, affirming its reputation as a trusted choice for investors seeking active management within the investment-grade bond universe.”

HXF received the 2020 Lipper Fund Award in the Financial Services Equity ETF category¹ for the three-year period ending July 31, 2020, ranking first out of 12 ETFs eligible for consideration.

“This is the first year in which HXF has been recognized by the Lipper Fund Awards,” said Mr. Hawkins. “As part of our Total Return Index family of ETFs, HXF provides tax-efficient, capped exposure to Canadian financial companies – one of the largest economic sectors in the country.”

HXQ received the 2020 Lipper Fund Award in the US Equity ETF category¹ for the three-year period ending July 31, 2020. In the ETF categories in which Horizons ETFs’ funds ranked first, HXQ had the largest competitor pool: 43.

"HXQ’s recognition for a third year in a row follows another period of record highs achieved by the NASDAQ-100 Index, which HXQ provides exposure to,” said Mr. Hawkins. “Once again, we are particularly proud of HXQ’s achievement, given the large pool of competitors it was selected from.”

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 over $15.5 billion of assets under management and 93 ETFs listed on major Canadian stock exchanges, as at October 31, 2020.

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

From Lipper Fund Awards from Refinitiv, ©2020 Refinitiv. All rights reserved. Used under license.

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.

¹Horizons Active CDN Bond ETF (HAD), Horizons S&P/TSX Capped Financials Index ETF (HXF), Horizons NASDAQ-100® Index ETF (HXQ) were awarded Canada’s 2020 Lipper Fund Awards from Refinitiv in the Canadian Fixed Income, Financial Services Equity, and US Equity ETF categories for the three-year period ending July 31, 2020, and were ranked first in their categories out of a total of 17, 12, and 43 ETFs, respectively. Horizons Active CDN Bond ETF (HAD) and the Horizons Active CDN Dividend ETF (HAL) were awarded Canada’s 2020 Lipper Fund Awards from Refinitiv in the Canadian Fixed Income and the Canadian Dividend & Income Equity ETF categories for the five-year period ending July 31, 2020, and were ranked first in their categories out of a total of 12, and 11 ETFs, respectively.

The Lipper Fund Awards, granted annually, highlight funds and fund companies that have excelled in delivering consistently strong risk-adjusted performance relative to their peers. The Lipper Fund Awards are based on the Lipper Leader for Consistent Return rating, which is a risk-adjusted performance measure calculated over 36, 60 and 120 months. The highest 20% of funds in each category are named Lipper Leaders for Consistent Return and receive a score of 5, the next 20% receive a score of 4, the middle 20% are scored 3, the next 20% are scored 2 and the lowest 20% are scored 1. The fund with the highest Lipper Leader for Consistent Return (Effective Return) value in each eligible classification per award universe wins the Lipper Fund Award. Lipper Leader for Consistent Return rating are subject to change monthly.

Although Lipper makes reasonable efforts to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Lipper.

Annualized Performance*

ETF 1 Year (%) 3 Year (%) 5 Year (%) SIR (%) Inception Date Lipper Leader Ranking
3 Years 5 Years
HAL -1.69% 5.24% 5.53% 7.81% 09-02-2010 5 5
HAD 10.32% 7.23% 4.40% 4.11% 10-10-2012 5 5
HXF -11.46% 0.58% 4.80% 6.58% 16-09-2013 3 5
HXQ 41.80% 26.42% - 24.92% 19-04-2016 5 -
 

*As at July 31, 2020. The indicated rates of return are the historical annual compounded total returns including changes in per unit/share 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 security holder 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.
 

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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.