HOU and HOD will maintain exposure to the November Crude Oil Futures Contract
TORONTO, Aug. 18, 2020 /CNW/ - Horizons ETFs Management (Canada) Inc. ("Horizons ETFs" or the "Manager") is announcing a change to the exposure of the Horizons Crude Oil Rolling Futures Index (the "Underlying Index"), the proprietary underlying index of the BetaPro Crude Oil Leveraged Daily Bull ETF1 ("HOU") and the BetaPro Crude Oil Inverse Leveraged Daily Bear ETF2 ("HOD", and together with HOU, the "ETFs").
The Horizons Crude Oil Rolling Futures Index is a proprietary index owned and operated by Horizons ETFs that endeavours to provide exposure to as close to the front-month light sweet crude oil futures contract as is deemed reasonable by the Manager, based on the current market conditions for crude oil futures contracts.
As a result of further stabilization of crude oil futures prices and negotiations with the ETFs' counterparties, the Manager is announcing that the exposure of the Underlying Index will remain in the November crude oil futures contract on August 20, 2020, which is the contract expiry date for the current front-month September crude oil futures contract. The Underlying Index is now expected to remain exposed to the November crude oil futures through most of September, and at least until September 22, 2020, which is the contract expiry date for the October crude oil futures contract.
By remaining in the November futures contract, the ETF is essentially moving its exposure from the third-month contract for crude oil to the second-month contract. This change is in keeping with the Underlying Index's goal disclosed in the prospectus of the ETFs, which is to endeavor to provide exposure to as close to the front-month crude oil futures contract as is deemed reasonable by the Manager, based on the current market conditions for crude oil futures contracts and subject to negotiations with the counterparties.
The roll methodology for the Underlying Index (which includes roll dates, the primary and secondary futures contracts, and the allocation between the primary and secondary futures contract) may be changed at any time by the Manager in its sole discretion based on, among other things, negotiations with the ETFs' counterparties, liquidity for the underlying primary and secondary futures contracts as the primary futures contract's expiry approaches.
The Manager posts the current roll methodology for the Horizons Crude Oil Rolling Futures Index on its website, www.HorizonsETFs.com.
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 $14.5 billion of assets under management and 93 ETFs listed on major Canadian stock exchanges.
1 Previously known as the BetaPro Crude Oil Daily Bull ETF
2 Previously known as the BetaPro Crude Oil -1x Daily Bear ETF
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SOURCE Horizons ETFs Management (Canada) Inc.
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