Three out of four awards won are part of Horizons ETFs’ suite of actively managed ETFs.

TORONTO, November 5, 2015 – Horizons ETFs Management (Canada) Inc. (“Horizons ETFs”) is proud to announce four of its ETFs won “best” in their respective categories at the 2015 Lipper Fund Awards (“Lipper Awards”).

The following ETFs won awards:

Fund Name Ticker Lipper Awards Category Award Period
Horizons S&P 500® Index ETF HXS US Equity 3 Years
Horizons Active High Yield Bond ETF HYI High Yield Fixed Income 3 Years
Horizons Seasonal Rotation ETF HAC Alternative Strategies 3 Years
Horizons Gold Yield ETF HGY Commodity 3 Years

“The Lipper Awards are among the most prestigious awards that an investment fund can receive globally and we are very proud of our four winners,” said Steve Hawkins, Co-CEO of Horizons ETFs. “The fact that the majority of our awards were for actively managed ETFs validates our long held belief that active management in a low-cost ETF structure can produce superior returns.”

The Lipper Awards are calculated based on a comparison with other ETFs in the same Canadian Investment Funds Standards Committee (CIFSC) category. The 2015 Lipper Awards are given to funds for delivering consistently strong risk-adjusted performance relative to their peers, for various time periods ending July 31, 2015.

HXS received the 2015 Lipper Fund Award in the US Equity category for the three-year period ending July 31, 2015, ranking first out of the 16 ETFs eligible for consideration. 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 (TRS) 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 taxable distributions.

“HXS’ win illustrates the power of our innovative TRS structure,” said Mr. Hawkins. “There are multiple ETFs in Canada that offer exposure to the US large cap market, but we believe that it’s the combination of HXS’ low management fee, reduced potential for tracking error and greater tax efficiency that has produced its exceptional performance.”

HYI received the 2015 Lipper Award in the High Yield Fixed Income category for the three-year period ending July 31, 2015, ranking first out of the 11 ETFs eligible for consideration. HYI is a cost-efficient, actively managed ETF that seeks to deliver high total-return income and monthly distributions.

The success of HYI highlights how advantageous it is to pair active fixed income investing with an ETF,” said Derek Brown, Vice-President and Senior Portfolio Manager, Fiera Capital Corp. “Active management isn’t limited to issuers in a benchmark, which allows for greater flexibility in selecting securities with more dynamic durations and credit ratings.”

HAC received the 2015 Lipper Award in the Alternative Strategies category for the three-year period ending July 31, 2015, ranking first out of the six ETFs eligible for consideration. HAC uses a proprietary, seasonal rotation investment strategy which seeks to deliver absolute returns in all market conditions. HAC rotates between certain asset classes or industry sectors at specific times of the year, based on repeating seasonal events in the markets or the economy.

HAC’s proven track record speaks to how seasonality paired with technical analysis can provide consistent risk-adjusted returns,” said Brooke Thackray, Research Analyst, Horizons ETFs. “HAC has delivered very attractive annual returns since its inception in 2009, with a much lower standard deviation than the broader North American equity market.”

HGY won the Best Commodity category amongst the eight eligible ETFs for the three-year period ending July 31, 2015. HGY seeks to provide unitholders with: (i) exposure to the price of gold bullion hedged to the Canadian dollar, less the ETF’s fees and expenses; (ii) tax-efficient monthly distributions; and (iii) in order to mitigate downside risk and generate income, exposure to a covered call option writing strategy.

“Investing in gold, typically, doesn’t generate income. HGY not only offers exposure to gold bullion, but also the opportunity for income from covered calls,” said Mr. Hawkins. “The option premium generated by HGY’s call writing strategy has offset some of the losses in the gold market, which is why it has been a better strategy to be invested in than just simply holding gold.”

HYI, HAC and HGY are all actively managed strategies. Horizons ETFs is currently the largest provider of actively managed ETFs in Canada, which make up more than half of its $5.1 billion of assets under management. Horizons ETFs also offers a wide range of other ETF solutions, which include benchmark and leveraged ETFs for investors of all experience levels to achieve their investment goals.

About the Lipper Fund Awards

The Lipper Fund Awards are part of the Thomson Reuters Awards for Excellence, a global family of awards that celebrate exceptional performance throughout the professional investment community. The Thomson Reuters Awards for Excellence recognize the world's top funds, fund management firms, sell-side firms, research analysts, and investor relations teams. The Thomson Reuters Awards for Excellence also include the Extel Survey Awards and the StarMine Analyst Awards. For more information about the Lipper Awards, please contact or visit

About Horizons ETFs Management (Canada) Inc. (

Horizons ETFs Management (Canada) Inc. and its affiliate AlphaPro Management Inc. are innovative financial services companies, which combined make up one of the largest families of exchange traded funds in Canada. The Horizons ETFs’ product suite 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 currently has more than $5.1 billion of assets under management and has 70 ETFs listed on the Toronto Stock Exchange. Horizons ETFs Management (Canada) Inc. and AlphaPro Management Inc. are members of the Mirae Asset Global Investments Group.

For more information:
Mark Noble, Vice-President, Communications and PR
Horizons ETFs Management (Canada) Inc.
(416) 640-8254

Certain statements contained in this news release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to a future outlook and anticipated distributions, events or results and may include statements regarding future financial performance. In some cases, forward-looking information can be identified by terms such as "may", "will", "should", "expect", "anticipate", "believe", "intend" or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information. Horizons ETFs undertakes no obligation to update publicly or otherwise revise any forward-looking statement whether as a result of new information, future events or other such factors which affect this information, except as required by law.

Horizons Seasonal Rotation ETF (HAC), Horizons Gold Yield ETF (HGY), Horizons S&P 500 Index ETF (HXS) and the Horizons Active High Yield Bond ETF (HYI) were awarded the 2015 Lipper Fund Award in the Alternative Strategies, Commodity, US Equity, and High Yield Fixed Income categories for the three year period ending July 31, 2015 out of a total of 6, 8, 16, and 11 ETFs, respectively. The Lipper Fund Awards, granted annually, are part of the Thomson Reuters Awards for Excellence awarded by Lipper, Inc. and highlight funds that have excelled in delivering consistently strong risk-adjusted performance relative to their peers.  The Lipper Fund Awards are based on the Lipper Ratings for Consistent Return, which is a risk-adjusted performance measure calculated over 36, 60 and 120 month periods.  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 highest Lipper Leader for Consistent Return in each category wins the Lipper Fund Award.  Lipper Leader ratings change monthly.  For more information, see Although Lipper makes reasonable efforts to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Lipper. Performance for the HAC fund for the period ended July 31, 2015 is as follows: 12.76 % (1 year), 9.89 % (3 years), 8.68 % (5 years) and 9.11 % (since inception on November 19, 2009). The corresponding Lipper Leader ratings of the fund for the same period are as follows: 4 (3 years), 5 (5 years). Performance for the HGY fund for the period ended July 31, 2015 is as follows: -13.47 % (1 year), -30.28 % (3 years), and -23.15 % (since inception on December 20, 2010). The corresponding Lipper Leader ratings of the fund for the same period are as follows: 3 (3 years). Performance for the HXS fund for the period ended July 31, 2015 is as follows: 32.82 % (1 year), 27.50 % (3 years) and 47.49 % (since inception on November 30, 2010). The corresponding Lipper Leader ratings of the fund for the same period are as follows: 4 (3 years). Performance for the HYI fund for the period ended July 31, 2015 is as follows: 0.15 % (1 year), 18.93 % (3 years) and 7.12 % (since inception on February 14, 2012). The corresponding Lipper Leader ratings of the fund for the same period are as follows: 4 (3 years).

Download PDF

Share This Article

Next article

Horizons ETFs Announces Changes to the Horizons Seasonal Rotation ETF

This website uses cookies to ensure we give you the best experience. By continuing to browse the site, you are agreeing to our use of cookies. Click here to read our privacy policy.

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.