Finding the Right Balance: How Higher Equity Allocations in Balanced ETFs Could Generate Better Returns

September 04, 2020



With more than 800 exchange traded funds (“ETFs”) listed in Canada, it has become increasingly difficult for investors to know which ETFs to buy and to build into their portfolio. ETF providers have addressed this challenge by offering “Balanced”, “All-in-One”, or “one-ticket-solution” funds: ETFs that buy other ETFs as part of an asset allocation strategy. With one ETF purchase, Canadian ETF investors can get a full asset allocation geared towards their self-determined risk/return objectives.

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Investing Outside of North America: How HXDM, HXEM and HXX work

August 10, 2020



Investing in non-North American equities can be more complex than buying equities listed in the United States and Canada, since foreign equity markets trade at different times.

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A Tale of Two Markets: U.S. Cannabis Market Comes of Age as Canada Lags

July 31, 2020



The second quarter of 2020 was a rollercoaster for marijuana stocks. Coming out of the worst of the COVID-19 equity market sell-off in mid-March, returns in marijuana equities soared as data showed dramatic increases in sales. However, this momentum slowed considerably during the months of May and June.

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Fiera Preferred Share Market Commentary – July 28, 2020

July 28, 2020

RBC’s $1.75 billion offering of Limited Recourse Capital Notes (“LRCNs”) announced last week is likely to be the first of a series of similar offerings from other Canadian banks and insurance companies regulated by the Office of the Superintendent of Financial Services (“OFSI”), as LRCNs now allow them to meet their additional Tier 1 (AT1) capital requirements at a lower financing cost than with preferred shares. 

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Investing in Emerging Tech with ETFs Post-COVID-19

July 22, 2020

The COVID-19 pandemic has accelerated many technologies in the workplace as most office employees have been pushed to work from home. From cybersecurity solutions to remote meeting software, many of these trends have already been part of a larger, emerging trend called Industry 4.0, which revolves around the idea of merging our physical world with the digital world.

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Fiera HPR Commentary – July 2020

July 20, 2020

The TSX Preferred Share Index rallied hard on July 8 and 9, 2020, up 6.7% over the two days combined, though it was down about 70 basis points (“bps”) as at July 17, 2020, with news of RBC issuing $1 billion worth of new Limited Recourse Capital Notes (“LRCNs”).

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Putting Gold to Work

July 16, 2020
Putting Gold To Work  

Gold is a polarizing asset class. Similar to champions of certain types of nutrition and health supplements, ardent followers of gold can have an unwavering belief that gold should be a constant and large portion of a person’s portfolio. On the other hand, there are those who view gold as a fetishized commodity that offers little value for an investment portfolio.

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Inflection Point: U.S Marijuana Stocks Rally

June 01, 2020



The United States marijuana sector, which is comprised primarily of multi-state-operators (MSOs) — vertically integrated companies that cultivate marijuana and own dispensaries and retail distribution in various U.S. states – has rallied over the last month.

Marijuana Stocks: Holding Up Better than Expected?

April 16, 2020

Who knew that marijuana would ever be considered an essential service? For those familiar with social gathering restrictions in Ontario — Canada’s largest province by population — it was a bit of a head scratcher to see both online and storefront marijuana dispensaries initially included on the provincial government’s list of essential businesses allowed to stay open, while retail and restaurants were forced to close.

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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.