Horizons third one-ticket-solution ETF is 100% equity focused
and oriented to growth-seeking investors
TORONTO, Sept. 16, 2019 /CNW/ - Horizons ETFs Management
(Canada) Inc. ("Horizons
ETFs") is launching Horizons Growth TRI ETF Portfolio
("HGRO"), an all-equity "ETF of ETFs" portfolio that will be
the third offering within its One-Ticket-Solution ETFs line-up.
Units of the ETF will trade on the Toronto Stock Exchange ("TSX"),
under the ticker symbol HGRO, commencing today.
HGRO is the latest One-Ticket-Solution ETF portfolio of ETFs
from Horizons ETFs; joining the Horizons Conservative TRI ETF
Portfolio ("HCON") and the Horizons Balanced ETF Portfolio
("HBAL"), which were launched in 2018. Like HCON and HBAL, HGRO
will only hold ETFs that are part of Horizons ETFs' Total Return
Index ("TRI") suite of ETFs.
HGRO seeks long-term capital growth by investing in a growth
portfolio consisting primarily of equity TRI ETFs. The portfolio
targets a long-term asset allocation of at least 99% equity
securities at the time of any rebalance, and the portfolio will be
rebalanced semi-annually in order to seek a consistent level of
risk from developed countries around the world.
The equity components will only include TRI ETFs that offer
exposure to North American and other global equities, and seek a
"world" equity return. Generally, no less than 15% of HGRO's
portfolio will be exposed to Canadian equity securities as at each
semi-annual rebalance.
"While mutual funds may have historically dominated the
one-ticket-solution investing space, commonly referred to as
balanced funds or fund-of-funds, today's Canadian marketplace is
seeing significant demand from retail and institutional investors
for one-ticket ETF solutions," said Steve Hawkins, President and CEO of Horizons
ETFs. "HGRO is an equity-focused ETF that provides broad global
equity exposure, with the added benefits of using our TRI ETFs,
which have low index replication tracking error in a low fee
structure."
Investors in HGRO are not subject to any direct management fees
or operating costs. HGRO has no direct management fee, and Horizons
ETFs pays all of the operating and administrative expenses incurred
directly by HGRO. However, HGRO will indirectly pay the
management fees and trading expenses of the TRI ETFs it holds.
Based on the historical management expense ratio of the
portfolio of TRI ETFs held by HGRO, the total management expense
ratio of HGRO is expected to be 0.17%, and will not exceed 0.19%,
at any rebalance.
Based on the historical trading expense ratio of the TRI ETFs
currently held by HGRO, the aggregate underlying trading expense
ratio of the portfolio of TRI ETFs held by HGRO is expected to be
0.28%. As trading expense ratios include expenses outside of the
control of Horizons ETFs, the trading expense ratio of the
portfolio of TRI ETFs held by HGRO is subject to change.
HGRO has closed its initial offering of units and will begin
trading today on the TSX when the market opens this morning.
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 more than $10 billion of
assets under management and 91 ETFs listed on major Canadian stock
exchanges.
Commissions, management fees and applicable sales taxes all
may be associated with an investment in the Horizons Growth TRI ETF
Portfolio (the "ETF") is managed by Horizons ETFs Management
(Canada) Inc. The ETF is not
guaranteed, its value changes frequently, and past performance may
not be repeated. The prospectus contains important detailed
information about the ETF. Please read the prospectus before
investing.
Certain statements may constitute a forward-looking
statement, including those identified by the expression "expect"
and similar expressions (including grammatical variations thereof).
The forward-looking statements are not historical facts but reflect
the author's current expectations regarding future results or
events. These forward-looking statements are subject to a number of
risks and uncertainties that could cause actual results or events
to differ materially from current expectations. These and other
factors should be considered carefully and readers should not place
undue reliance on such forward looking statements. These
forward-looking statements are made as of the date hereof and the
authors do not undertake to update any forward-looking statement
that is contained herein, whether as a result of new information,
future events or otherwise, unless required by applicable
law.
SOURCE Horizons ETFs Management (Canada) Inc.
