ETF Education: A Confusing Time to Be an Income Investor

March 18, 2021
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You have to have a bit of sympathy for savers and income-focused investors — it’s really not a great time to be an income investor given the current high level of risk relative to historically low yields in fixed income strategies.

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Is Uranium headed for $50?

March 03, 2021

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AUTHOR: NICK PIQUARD

There’s a huge push globally to find cleaner alternative sources of energy to coal and oil, and this once again has major global powers revisiting uranium as a key energy source which could result in significant price appreciation in a commodity that has largely been ignored over the last decade. Indeed, a significant increase in price on uranium, to potentially USD$50 a pound, is not out of the realm of possibility if a number of macro-economic factors continue to align in its favour.  

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The Market Forces Driving the Recent Asset Class Declines

March 02, 2021
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AUTHOR: BARRY ALLAN, DMAT CAPITAL MANAGEMENT

Thursday February 25th, 2020, all asset classes declined — bonds, stocks and bitcoin — while the US Dollar rose as a flight to safety. The sell-off was led by U.S. Treasuries as a 7-year auction was met with extremely poor demand. Even 5-year yields rose over 20 basis points (“bps”) despite the U.S. Federal Reserve’s (the “Fed”) constant commentary that rate hikes are years away.

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U.S. Legalization Provides Potential Path to Profitability for Cannabis Sector Issuers

February 08, 2021

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With the inauguration of the Joe Biden Administration and a so-called “blue wave” taking over three levels of the U.S. government — Congress, the Senate and the Presidency — there is a general optimism that cannabis may see its status as a Schedule 1 narcotic repealed. Should this happen, it may create an opportunity for North American exchange-listed cannabis companies to potentially expand their revenue.

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One-Ticket Solutions to a Globally Diversified ETF Portfolio

January 11, 2021

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Horizons ETFs offers three one-ticket ETFs: the Horizons Conservative TRI ETF Portfolio (“HCON”), the Horizons Balanced TRI ETF Portfolio (“HBAL”) and the Horizons Growth TRI ETF Portfolio (“HGRO”). Each of these ETFs offers exposure to a globally diversified portfolio of equity and fixed income ETFs from our suite of tax-efficient Total Return Index (“TRI”) ETFs.
 

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The Balanced Portfolio by Way of ETFs

December 04, 2020
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AUTHOR: DALE ROBERTS, CUTTHECRAPINVESTING

You’ve likely heard the investment expression, “Don’t put all of your eggs in one basket.” You want to own many baskets.

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Why Should You Use ETFs?

December 04, 2020
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ETFs can be one of the best and simplest ways to invest in the stock market, and are potentially an excellent choice for your retirement portfolio, your child’s college fund and more.

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10 Years of Savings: How HXT Changed the Canadian Investment Landscape

November 19, 2020
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On September 14, 2010, Horizons ETFs launched the Horizons S&P/TSX 60 Index ETF (HXT, which trades on the Toronto Stock Exchange under the ticker symbol HXT.

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What every investor needs to know about ETFs

November 09, 2020
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AUTHOR: STEPHANIE WOLFE, AFCC

Exchange Traded Funds, known as ETFs, are a popular investment choice for investors because they are typically easy to use and simple to understand. Whether you’re new to investing or have been at it for years, there is likely an ETF that’s right for your portfolio.

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US Marijuana Sector Takes the Lead

October 26, 2020
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In our view, the single most important factor driving valuations in the North American marijuana sector is the growing usage of cannabis products in the United States. This last quarter highlighted the stark difference between the Canadian and U.S. marijuana sectors, with the Horizons U.S. Marijuana Index ETF (“HMUS”) delivering a 45.66% return for the six months ending September 30, 2020 versus a -0.09% return over the same period, for the Horizons Marijuana Life Sciences Index ETF (“HMMJ”), which cannot hold U.S.-based marijuana cultivators and distributors. 

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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 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. 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.