Horizons ETFs launches Active S&P/TSX 60™ Covered Call ETF
TORONTO, Jan. 14, 2013 /CNW/ - Horizons Exchange Traded Funds Inc. ("Horizons ETFs") and its affiliate AlphaPro Management Inc. ("AlphaPro") are pleased to announce the launch of the Horizons Active S&P/TSX 60™ Index Covered Call ETF ("HAX" or the "ETF"), an exchange traded fund that uses an innovative covered call strategy to generate additional income from the option eligible stocks comprising the S&P/TSX 60™ Index. The ETF will begin trading on the Toronto Stock Exchange tomorrow under the symbol HAX.
The investment objective of HAX is to provide Unitholders with: (a) exposure to the performance, to the extent possible, of the S&P/TSX 60™ Index, together with the impact of a covered call strategy, before fees and expenses; and (b) monthly distributions of dividend and call option income.
HAX will hold all 60 of the constituent stocks in the S&P/TSX 60™ Index in proportion to their respective weights in the index. The ETF will write covered call options on the option eligible securities in the portfolio to generate a tax-efficient, monthly distribution. The level of covered call option writing may vary based on market volatility and other factors.
"This is the first covered call ETF in Canada that will proportion its holdings to that of S&P/TSX 60™ Index, which is, in our view, the most important Canadian stock benchmark," said Howard Atkinson, CEO of Horizons Exchange Traded Funds Inc. "Covered call strategies have historically been shown to enhance the income earned from stocks while reducing volatility."
Horizons Investment Management Inc. ("HIMI"), an affiliate of AlphaPro, is the investment manager to the ETF. The HIMI investment team, including Eden Rahim, Vice-President and Options Strategist, provides the portfolio management services to the ETF. HAX will be the eighth equity-focused covered call ETF that Horizons ETFs has launched which uses Mr. Rahim's dynamic covered call writing strategy.
"Eden and the team oversee more than $500 million in assets on behalf of Horizons ETFs," said Mr. Atkinson. "They have done a terrific job of raising awareness to covered call products in Canada and the benefits they can potentially offer investors including generating income and mitigating portfolio risk."
Commissions, trailing commissions, management fees and expenses all may be associated with investments in the ETF. The ETF is not guaranteed, its values will change frequently and past performance may not be repeated. Please read the prospectus before investing.
The ETF has closed the offering of its initial Class E units and Advisor Class units and will begin trading on the TSX when the market opens tomorrow morning.
About Horizons Exchange Traded Funds Inc. (www.horizonsetfs.com)
Horizons ETFs is an innovative financial services company offering the Horizons ETFs family of ETFs. The Horizons ETFs family includes a broadly diversified range of investment tools with solutions for investors of all experience levels to meet their investment objectives in a variety of market conditions. With approximately $3.6 billion in assets under management and 80 ETFs (including HAX) listed on the Toronto Stock Exchange, the Horizons ETFs family makes up one of the largest families of ETFs in Canada. Horizons ETFs is a subsidiary of Horizons ETFs Management (Canada) Inc. and a member of the Mirae Asset Financial Group.
SOURCE: Horizons Exchange Traded Funds Inc.For further information:
Howard Atkinson, CEO, Horizons Exchange Traded Funds Inc., (416) 777-5167 firstname.lastname@example.org