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TORONTO, January 28, 2015 - Horizons ETFs Management (Canada) Inc. and AlphaPro Management Inc. (collectively, “Horizons ETFs”) are proud to announce that the Horizons S&P 500® Index ETF (“HXS”) and the Horizons Active Corporate Bond ETF (“HAB”) have both won Fundata FundGrade® A+ Awards for 2014.

Created by Fundata Canada Inc., the FundGrade rating system uses risk-adjusted performance figures to rank and grade Canadian investment funds. 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”).

“Horizons ETFs is very honoured to have won FundGrade A+® Awards for HXS and HAB,” said Howard Atkinson, President of Horizons ETFs. “According to Fundata, the only products that receive an A+ Award are the ‘best-of-the-best’ in their respective fund category, which means, in their view, our innovative actively managed and index ETFs are exceeding the industry standards of performance.”

This was the second year in a row that HAB received a FundGrade A+® Award. HAB is an actively managed Canadian corporate bond ETF, sub-advised by Fiera Capital Corporation (“Fiera”), one of the largest independent fixed income managers in Canada, with more than $50 billion in fixed income assets. HAB also received a 5-star Morningstar Risk-Adjusted Rating as of September 30, 2013, which it has maintained through December 31, 2014.

“HAB’s portfolio managers are not forced to buy and sell bonds the way an index does, which has been an advantage in its ability to generate total returns in the corporate bond market,” said Mr. Atkinson, “Fiera has one of the most experienced fixed income investment teams in Canada and they add additional value through their robust credit analysis and bond selection process.”

In addition to winning a FundGrade A+® Award, HXS was also awarded the 2014 Lipper Fund Award in the U.S. Equity category earlier this year (for the three-year period ended July 31, 2014).* HXS also received a five-star rating from Morningstar as of September 30, 2014 which it continues to maintain. HXS seeks to replicate, to the extent possible, the performance of the S&P 500® (Total Return), net of expenses.

HXS uses a total-return swap based structure, which means the ETF does not physically hold the underlying stocks of the S&P 500®. This can reduce tracking error and can also minimize taxable distributions. Since its inception in 2010, HXS has not paid any taxable distributions.

“There are at least seven ETFs in Canada that offer single-long exposure to the S&P 500®, but we believe that it's the combination of HXS' low management fees, reduced potential for tracking error and greater tax efficiency, that have led to outstanding exposure to the index and have earned it numerous awards,” said Mr. Atkinson. “The A+ Award further substantiates that benchmarking, while basic in concept, can still provide superior performance and efficiencies.”
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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 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.