TORONTO, Jan. 18, 2021 /CNW/ - Horizons ETFs Management
(Canada) Inc. ("Horizons
ETFs" or the "Manager") is announcing a change to the
BetaPro Crude Oil Leveraged Daily Bull ETF ("HOU") and the
BetaPro Crude Oil Inverse Leveraged Daily Bear ETF ("HOD",
and together with HOU, the "ETFs"). At the market close for
crude oil futures (2:30pm EST) on
January 19, 2021, the Manager will
reintroduce the use of 2.0 times and -2.0 times leverage to HOU and
HOD, respectively. After 2:30pm EST
tomorrow, HOU will seek to deliver 2.0 times the daily
performance, and HOD will seek to deliver 2.0 times the inverse
(opposite) of the daily performance, of the Horizons Crude Oil
Rolling Futures Index (the "Index").
In July 2020, the investment
objectives of HOU and HOD changed. The new investment objectives
changed the Index used by the ETFs, and allowed adjustment of the
leverage ratio employed by the ETFs to provide up to 2.0
times (200%) (HOU) and up to -2.0 times (-200%) (HOD), the
daily performance of the exposure to the Index.
As a result of further stabilization of crude oil futures prices
and negotiations with the ETFs' counterparties, the Manager has
determined that it will reintroduce the 2.0 and -2.0 times
leverage, as applicable, to the exposure of the ETFs. This means,
on and after January 20, 2020 and
until further public notice is provided by Horizons ETFs, HOU and
HOD will provide 2.0 times and -2.0 times, respectively, the
exposure to the Index.
In addition, effective the close of business January 20, 2021, the Index roll methodology will
change so that the crude oil futures exposure will roll to the next
contract over a newly introduced four-day roll process that starts
on the day after the front month contract expires. For this month,
that means that the underlying crude oil futures exposure for HOU
and HOD will roll from the March 2021
contract to the April 2021 contract
commencing on January 21, 2021.
This change to the Index roll methodology does not affect the
leverage ratio that HOU and HOD will employ.
This will be the first time since the investment objective
changes in July 2020 that HOU will
use 2.0 times, and HOD will use -2.0 times, daily leverage and that
the Index exposure will have a multi-day roll period.
The Manager anticipates, under normal market conditions,
managing the leverage ratio to be as close to 2.0 times or -2.0
times as practicable for both HOU and HOD, respectively. However,
the Manager may, at its sole discretion, change the leverage ratio
based on its assessment of the current market conditions for crude
oil futures contracts and negotiations with the ETFs'
counterparties at that time.
The roll methodology for the Index (which includes roll dates,
the primary and secondary futures contracts, and the allocation
between the primary and secondary futures contract) may also be
changed at any time by the Manager in its sole discretion based on,
among other things, negotiations with the ETFs' counterparties,
liquidity for the underlying primary and secondary futures
contracts as the primary futures contract's expiry approaches.
The roll methodology for the Horizons Crude Oil Rolling Futures
Index is posted on the Horizons ETFs website at
www.HorizonsETFs.com.
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 over $17 billion of assets
under management and 93 ETFs listed on major Canadian stock
exchanges.
Commissions, management fees and expenses all may be
associated with an investment in exchange traded products (the
"Horizons Exchange Traded Products") managed by Horizons ETFs
Management (Canada) Inc. 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.
Certain Horizons Exchange Traded Products like HOU and HOD
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.
Certain statements herein 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.
