TORONTO, March 28, 2013 /CNW/ - Horizons ETFs Management (Canada) Inc.
("Horizons ETFs") is pleased to announce the launch of U.S. dollar denominated units of
the Horizons S&P 500® Index ETF (the "Horizons S&P 500® ETF" or "HXS"). The U.S. dollar denominated units of the Horizons S&P 500® ETF will
begin trading on the Toronto Stock Exchange ("TSX") on April 1, 2013, under the ticker symbol HXS.U.
The launch of U.S. dollar denominated units of the Horizons S&P 500® ETF
coincides with the previously announced change of its investment
objective and change of name which are also effective as of April 1,
In accordance with a previously approved investment objective change,
all units of HXS will no longer seek to replicate a Canadian dollar
hedged version of the S&P 500® Index and will instead to seek to
replicate, to the extent possible, the performance of the S&P 500®
Index (Total Return), net of expenses.
"We've heard from the Canadian marketplace that investors would prefer
to get non-hedged or direct U.S. dollar exposure to the S&P 500®
Index," said Howard Atkinson, President of Horizons ETFs. "Given that the Canadian dollar more or less trades around parity these
days, it doesn't make as much sense to use a currency hedge, which
historically has increased the tracking error of index ETFs that seek
to replicate a U.S. stock index. We think that both the Canadian dollar
and U.S. dollar denominated versions of the Horizons S&P 500® ETF will
now be more efficient at tracking the underlying S&P 500® Index (Total
HXS will continue to use a total return swap to replicate the
performance of the S&P 500® Index (Total Return). Because it does not
receive or pay any cash distributions, HXS is not subject to U.S.
withholding, U.S. dividend or U.S estate taxes.
"The Horizons S&P 500® ETF will continue to be one of the lowest cost and
most tax-efficient U.S. stock index ETFs in Canada," said Mr. Atkinson. "Investors now have the option of purchasing the ETF in U.S. dollars,
a powerful option for Canadian investors who may want to deploy U.S.
cash assets into the U.S. stock market but don't want to receive
taxable distributions or have their investments subject to U.S.
withholding or estate taxes.
About Horizons ETFs (www.HorizonsETFs.com)
Horizons ETFs Management (Canada) Inc. and its affiliate AlphaPro
Management Inc. are innovative financial services companies offering
the Horizons ETFs family of exchange-traded funds (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 currently
more than $4.3 billion in assets under management and 74 ETFs listed on
the TSX, the Horizons ETFs makes up one of the largest families of ETFs
in Canada. Horizons ETFs Management (Canada) Inc. and AlphaPro
Management Inc. are members of the Mirae Asset Financial Group.
SOURCE: Horizons ETFs Management (Canada) Inc.
For further information:
Howard Atkinson, President, Horizons ETFs Management (Canada) Inc. (416) 777-5167, firstname.lastname@example.org