New ETF provides low-cost, tax-efficient exposure to NASDAQ-100® Index
TORONTO, April 20, 2016 /CNW/ - Horizons ETFs Management (Canada) Inc. ("Horizons ETFs") is pleased to announce the launch of the Horizons Nasdaq-100® Index ETF ("HXQ"), which will provide investors with low-cost, tax-efficient exposure to 100 of the largest U.S. and international non-financial companies listed on The NASDAQ
Units of the exchange traded fund ("ETF") will begin trading today on the Toronto Stock Exchange ("TSX") in both Canadian and U.S. dollars under the ticker symbols HXQ and HXQ.U.
HXQ seeks to replicate, to the extent possible, the performance of the NASDAQ-100® Index (Total Return) – "The Index" – net of expenses, and can be purchased or sold in both Canadian and U.S. dollars. HXQ uses Horizons ETFs' innovative total return index ("TRI") structure to provide tax-efficient exposure to the NASDAQ-100®, in U.S. dollar terms.
TRI ETFs are low-cost, index-replicating ETFs that use a synthetic replication structure to receive the pre-tax total return of an index. Unlike physically-replicated ETFs, no distributions are expected to be paid by the ETF; this leads to greater tax efficiency for investors who hold the ETF in non-registered investment accounts. Instead, the value of the dividend or interest income is directly reflected in the performance of the ETF. In addition, tracking error is also reduced in TRI ETFs since there are no portfolio trading costs.
"The NASDAQ-100 is an investor's main index for exposure to some of the world's largest and most well-known brand names, like Apple, Facebook, Google and Microsoft," says Steve Hawkins, Co-CEO, Horizons ETFs. "Using our innovative TRI structure, HXQ investors can now receive the total return of these important growth stocks. This creates the potential for greater compounded after-tax returns versus other NASDAQ-100 ETFs, as HXQ is not exposed to the same withholding taxes for holding the index constituents directly."
HXQ has closed its initial offering of units and will begin trading on the TSX when the market opens this morning.
About Horizons ETFs Management (Canada) Inc. (www.HorizonsETFs.com)
Horizons ETFs Management (Canada) Inc. and its affiliate AlphaPro Management Inc. are innovative financial services companies, which combined make up one of the largest families of exchange traded funds in Canada. The Horizons ETFs' product suite 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 currently has more than $6 billion of assets under management and has 73 ETFs listed on the Toronto Stock Exchange. Horizons ETFs Management (Canada) Inc. and AlphaPro Management Inc. are members of the Mirae Asset Global Investments Group.
Commissions, management fees and applicable sales taxes all may be associated with an investment in the exchange traded funds managed by Horizons ETFs Management (Canada) Inc. (the "ETFs"). The ETFs are not guaranteed, their values change frequently and past performance may not be repeated. The prospectus contains important detailed information about the ETFs. Please read the prospectus before investing.
Certain statements contained in this news release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to a future outlook and anticipated distributions, events or results and may include statements regarding future financial performance. In some cases, forward-looking information can be identified by terms such as "may", "will", "should", "expect", "anticipate", "believe", "intend" or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information. Horizons ETFs undertakes no obligation to update publicly or otherwise revise any forward-looking statement whether as a result of new information, future events or other such factors which affect this information, except as required by law.
"NASDAQ-100®" is a registered trademark of NASDAQ, Inc. ("NASDAQ"). These marks have been licensed for use by Horizons ETFs Management (Canada) Inc. The ETF is not sponsored, endorsed, sold, or promoted by the NASDAQ or its affiliated companies and none of these parties make any representation, warranty or condition regarding the advisability of buying, selling or holding units/shares of the ETF. Complete trademark and service-mark information is available at www.HorizonsETFs.com/pub/en/Trademark.aspx.
SOURCE Horizons ETFs Management (Canada) Inc.
For further information: Olivia Fazekas, Manager, Public Relations, Horizons ETFs Management (Canada) Inc., (416) 640-8255, firstname.lastname@example.org