UTIL offers direct exposure to TSX-listed dividend-paying
utility, pipeline, and telecom companies
TORONTO, Aug. 10,
2022 /CNW/ - Horizons ETFs Management (Canada) Inc. ("Horizons ETFs") is
pleased to announce the upcoming launch of the Horizons Canadian
Utility Services High Dividend Index ETF ("UTIL" or the
"ETF"). Units of the ETF will begin trading today on the
Toronto Stock Exchange ("TSX") under the ticker symbol
UTIL.
With UTIL, investors can gain Canadian exposure to three major
segments of the utility services sector: utilities, pipelines and
telecommunications. These segments have historically functioned as
defensive industries, offering investors relative stability and
consistent dividends, even during periods of volatility and bear
markets.
"With rising inflation, investors are increasingly looking
towards dividend and yield-focused strategies to outpace costs and
stay ahead in their portfolios. However, with the spectre of a
potential recession on the horizon, investors are also looking for
these income-producing mandates to provide some protection from a
broader market decline," said Steve Hawkins, President and CEO of Horizons
ETFs. "Traditionally, utility services have been regarded as a
relatively defensive sector of the stock market, as their services
– including electricity, oil and internet – are always
necessary."
UTIL seeks to replicate, to the extent possible, the performance
of an index that seeks to provide exposure to the performance of
TSX-listed high dividend paying utility services companies.
Currently, UTIL seeks to replicate the performance of the Solactive
Canadian Utility Services High Dividend Index (the "Index"),
net of expenses.
ETF
Name
|
Ticker
|
Management
Fee*
|
Horizons Canadian
Utility Services High Dividend Index ETF
|
UTIL
|
0.50 %
|
|
*Plus applicable sales
tax
|
The Index is designed to provide exposure to TSX-listed high
dividend paying utility services companies. In order to be eligible
for inclusion in the Index, a company will be classified as
primarily operating in one of the following index categories:
"Utilities," "Pipelines," or "Telecommunications".
Index constituent issuers will be drawn from publicly listed
companies headquartered in Canada,
and may include small, mid, and large-capitalization companies.
Companies must also meet a minimum yield requirement to be eligible
for inclusion in the Index. The Index is rebalanced to
equal-weighted on a semi-annual basis.
"UTIL goes beyond traditional utility strategies as the ETF
portfolio provides exposure to critical utility services in the
energy pipeline and telecommunications sector," said Mr.
Hawkins. "Historically, the utility services sector has offered
a higher level of dividend income than the broader S&P/TSX
Composite. Not only do we think this expansion beyond traditional
utilities improves diversification for investors but it might also
improve the income generated by the ETF."
UTIL closed its initial offering of units to its designated
broker at the close of business on August 9,
2022, and will begin trading today on the TSX when the
market opens this morning.
For further information about UTIL, please visit:
www.HorizonsETFs.com/UTIL
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 105 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
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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
investment strategies. These investments may not be suitable to the
circumstances of an investor.
The financial instrument is not sponsored, promoted, sold, or
supported in any other manner by Solactive AG nor does Solactive AG
offer any express or implicit guarantee or assurance either with
regard to the results of using the Index and/or Index trade name or
the Index Price at any time or in any other respect. The Index is
calculated and published by Solactive AG. Solactive AG uses its
best efforts to ensure that the Index is calculated correctly.
Irrespective of its obligations towards the Issuer, Solactive AG
has no obligation to point out errors in the Index to third parties
including but not limited to investors and/or financial
intermediaries of the financial instrument. Neither publication of
the Index by Solactive AG nor the licensing of the Index or Index
trade name for the purpose of use in connection with the financial
instrument constitutes a recommendation by Solactive AG to invest
capital in said financial instrument nor does it in any way
represent an assurance or opinion of Solactive AG with regard to
any investment in this financial instrument.
SOURCE Horizons ETFs Management (Canada) Inc.