TORONTO, June 20, 2019 /CNW/ - Horizons ETFs Management
(Canada) Inc. ("Horizons
ETFs") is pleased to announce the listing of BetaPro
NASDAQ-100® -2x Daily Bear ETF (the "ETF") in
U.S. dollars, providing Canadian investors with the option of
investing in the ETF using Canadian dollars or U.S.
dollars.
Class A Units of the ETF begin trading in U.S. dollars (the
"US$ Units") on the Toronto Stock Exchange ("TSX")
tomorrow morning, June 21, 2019,
under the symbol HQD.U. Class A Units of the ETF will
continue to trade in Canadian dollars (the "Cdn$ Units")
under the symbol HQD.
The ETF seeks daily investment results, before fees, expenses,
distributions, brokerage commissions and other transaction costs,
that endeavour to correspond to two times (200%) the inverse
(opposite) of the daily performance of the NASDAQ-100
Index®. Any U.S. dollar gains or losses as a result of
the ETF's investment will be hedged back to the Canadian dollar to
the best of the ETF's ability. The ETF does not seek to achieve its
investment objective over a period of time greater than one
day.
HQD and HQD.U are two trading symbols for the same exchange
traded fund, and they share the same CUSIP number. There is no
difference in the underlying exposure of Cdn$ Units and US$ Units.
The only difference is the currency they trade in.
About Horizons ETFs Management (Canada) Inc.
(www.HorizonsETFs.com)
Horizons ETFs 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 90 ETFs listed on major Canadian stock exchanges.
Horizons ETFs is a member of the Mirae Asset Global Investments
Group.
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 units of a BetaPro Product decreases in value. The
BetaPro Products consist of our 2x Daily Bull and 2x Daily Bear
ETFs ("2x Daily ETFs"), Inverse ETFs ("Inverse ETFs") and our
BetaPro S&P 500 VIX Short-Term Futures™ ETF (the "VIX ETF").
Included in the 2x Daily 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 2x Daily 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 2x Daily ETF seeks a return, before fees and
expenses, that is 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 2x Daily 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 2x Daily ETFs, possibly
direction from the performance of their respective Target(s) for
the same period. 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 15.00% and 35.00% per annum of the aggregate notional
exposure of HMJI's forward documents. The hedging costs may
increase above this range. The manager will publish, 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.
SOURCE Horizons ETFs Management (Canada) Inc.
