Horizons ETFs Launches U.S. Dollar Units of Horizons S&P 500® Index ETF

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, 2013.

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 Return)."

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, hatkinson@horizonsetfs.com


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