Change includes the introduction of Canada's First NASDAQ-100 Covered Call
ETF
TORONTO, June 27,
2022 /CNW/ - Horizons ETFs Management
(Canada) Inc. ("Horizons
ETFs") announced today that it has substantially completed its
updates (the "Updates") for six exchange-traded funds within
its covered call ETF suite (the "ETFs"), following approvals
by unitholders of the ETFs at special meetings held on June 21, 2022. Updates of the investment
objectives were effective on June 24,
2022 with the new names and tickers of the ETFs effective at
the open of trading on June 27,
2022.
The ETFs are part of Horizons ETFs' Covered Call family – a
suite of ETFs that provide exposure to a variety of sectors and
indices, and employ a dynamic covered call option writing program
to generate additional income on the portfolio.
"With these updates to our covered call suite, we expect
these ETFs to offer investors strategies well equipped to provide
additional income to these various exposures throughout all market
conditions," said Steve Hawkins,
President, and CEO of Horizons ETFs. "The updates, directed by
our options strategist team, led by portfolio managers Nick Piquard and Hans
Albrecht, has resulted in ETFs that can potentially generate
meaningful yield for investors while providing exposure to a number
of in-demand indices and sectors."
The Updates were completed following a proposal made by the
Manager, published in a circular made available to all unitholders,
and announced by a press release dated May
17, 2022, both available at www.sedar.com and
www.HorizonsETFs.com. An update to the circular in respect of
Horizons Enhanced Income Gold Producers ETF was announced by press
release on June 2, 2022, and was
subsequently filed on www.sedar.com.
The changes are further described below:
|
Previous Name and
Ticker
|
New Name and
Ticker
|
New Investment
Objectives
|
|
Horizons Enhanced
Income Equity ETF ("HEX")
|
Horizons Canadian Large
Cap Equity Covered Call ETF ("CNCC")
|
CNCC seeks to provide:
(a) exposure to the performance of the large-cap segment of the
Canadian equity market; and (b) monthly distributions of dividend
and call option income. To mitigate downside risk and generate
income, CNCC will employ a dynamic covered call option writing
program.
|
|
Horizons Enhanced
Income Energy ETF ("HEE")
|
Horizons Canadian Oil
and Gas Equity Covered Call ETF ("ENCC")
|
ENCC seeks to provide,
to the extent possible and net of expenses: (a) exposure to the
performance of an index of Canadian companies that are involved in
the crude oil and natural gas industry (currently, the Solactive
Equal Weight Canada Oil & Gas Index); and (b) monthly
distributions of dividend and call option income. To mitigate
downside risk and generate income, ENCC will employ a dynamic
covered call option writing program.
|
|
Horizons Enhanced
Income Financials ETF
("HEF")
|
Horizons Equal Weight
Canadian Bank Covered Call ETF
("BKCC")
|
BKCC seeks to provide,
to the extent possible and net of expenses: (a) exposure to the
performance of an index of equal-weighted equity securities of
diversified Canadian banks (currently, the Solactive Equal Weight
Canada Banks Index); and (b) monthly distributions of dividend and
call option income. To mitigate downside risk and generate income,
BKCC will employ a dynamic covered call option writing
program.
|
|
Horizons Enhanced
Income US Equity (USD) ETF
("HEA.U")*
|
Horizons US Large Cap
Equity Covered Call ETF
("USCC.U")
|
USCC.U seeks to
provide: (a) exposure to the performance of the large-cap market
segment of the U.S. equity market and (b) monthly U.S. dollar
distributions of dividend and call option income. To mitigate
downside risk and generate income, USCC.U will employ a dynamic
covered call option writing program. USCC.U will not seek to hedge
its exposure to the U.S. dollar back to the Canadian
dollar.
|
|
Horizons Enhanced
Income International Equity ETF
("HEJ")
|
Horizons NASDAQ-100
Covered Call ETF
("QQCC")
|
QQCC seeks to provide,
to the extent possible and net of expenses: (a) exposure to the
performance of an index of the largest domestic and international
nonfinancial companies listed on the NASDAQ stock market
(currently, the NASDAQ-100® Index); and (b) monthly U.S. dollar
distributions of dividend and call option income. To mitigate
downside risk and generate income, QQCC will employ a dynamic
covered call option writing program. QQCC will not seek to hedge
its exposure to the U.S. dollar back to the Canadian
dollar.
|
|
Horizons Enhanced
Income Gold Producers ETF
("HEP")
|
Horizons Gold Producer
Equity Covered Call ETF
("GLCC")
|
GLCC seeks to provide,
to the extent possible and net of expenses: (a) exposure to the
performance of an index of equity securities of diversified North
American listed gold producers (currently, the Solactive North
American Listed Gold Producers Index) and (b) monthly distributions
of dividend and call option income. To mitigate downside risk and
generate income, GLCC will employ a dynamic covered call option
writing program.
|
*The Canadian dollar version, "HEA", will change to
"USCC".
QQCC will be the first NASDAQ-100 Covered Call ETF listed in the
Canadian market. The ETF allows Canadian investors to
generate a monthly income from a portfolio that provides exposure
to the NASDAQ-100® Index.
"The recent market volatility and rising interest rates have
disproportionately impacted the NASDAQ-100, compared to other
large-cap North American stock indices. This volatility has also
resulted in potentially higher call premiums that can produce
attractive yields for investors," said Mr. Hawkins. "QQCC
effectively allows investors to invest in the NASDAQ and earn a
potentially high level of monthly income, which is something this
index has not historically provided. It can potentially be a
powerful way for income investors to generate additional income in
their equity portfolio."
Mr. Hawkins added that across the board, these new covered call
mandates will allow investors to diversify their sources of income
beyond traditional fixed income, and potentially generate higher
yields from their equity investments.
"More than ever before, investors are looking for
opportunities to add additional income to their portfolios;
particularly as they seek to outpace inflation and equity market
volatility," said Mr. Hawkins. "I am confident that these
updates to our covered call suite will offer investors a strong
opportunity to create the income conditions needed for today's
marketplace."
There are no changes to the management fees of the ETFs. Further
details regarding the changes can be found at
www.sedar.com and 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 $22 billion of assets
under management and 104 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 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.
Additional information regarding an ETF is contained in its
prospectus (as amended), ETF Facts, the most recently filed interim
and annual management reports of fund performance and the annual
audited and interim unaudited financial statements of each ETF. You
should review these documents carefully. Any of the documents of
the type referred to above including any material change report
(excluding confidential material change reports) and prospectus
filed by each ETF and, if applicable, receipted by a securities
commission or similar authority in Canada after the date of the Circular will be
deemed to be incorporated by reference into this Circular. You may
obtain a copy of an ETF's prospectus (as amended) and any of the
documents incorporated by reference herein by accessing the SEDAR
website at www.sedar.com or the Manager's website at
www.HorizonsETFs.com, or at no charge by calling the Manager's
toll-free number at 1-866-641-5739 or by faxing a request to the
Manager at 416-777-5181.
This communication is intended for informational purposes
only and does not constitute an offer to sell or the solicitation
of an offer to purchase exchange traded products (the "Horizons
Exchange Traded Products") managed by Horizons ETFs Management
(Canada) Inc. and is not, and
should not be construed as, investment, tax, legal or accounting
advice, and should not be relied upon in that regard. Individuals
should seek the advice of professionals, as appropriate, regarding
any particular investment. Investors should consult their
professional advisors prior to implementing any changes to their
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Horizons ETFs Management (Canada)
Inc. The Fund(s)have not been passed on by the Corporations as to
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CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT
TO THE FUND(S) or PRODUCT(S).
SOURCE Horizons ETFs Management (Canada) Inc.
