HORIZONS BETAPRO ETFS
Horizons BetaPro Exchange Traded Funds (HBP ETFs), a unique series of alternative Exchange Traded Funds (ETFs), are designed to help investors achieve their investment goals in all market conditions. HBP ETFs go beyond traditional index funds. HBP Bull Plus ETFs seek to double the daily performance of a market index. HBP Bear Plus ETFs seek twice the daily returns opposite those of an index. Combined, Horizons BetaPro ETFs allow investors to profit or protect in all market environments.
INVESTMENT OBJECTIVE
The Horizons BetaPro S&P/TSX Global Gold Bull+ ETF (HBP Gold Bull+ ETF) and the Horizons BetaPro S&P/TSX Global Gold Bear+ ETF (HBP Gold Bear+ ETF) seek daily investment results equal to 200% the daily performance, or inverse daily performance, of the S&P/TSX Global Gold Index™ , before fees and expenses. The Index consists of securities of global gold sector issuers listed on the TSX, NYSE, NASDAQ and AMEX.
PRINCIPAL INVESTMENT STRATEGY
The HBP Gold Bull+ ETF and the HBP Gold Bear+ ETF take positions in financial instruments and/or equity securities to seek daily investment results, before fees and expenses that correspond to twice the daily performance or inverse daily performance of the S&P/TSX Global Gold Index™. HBP ETFs are rebalanced daily, so risk is limited to the initial invested capital. As a result, 200%/-200% benchmark tracking over a longer period is dependent upon the extent of compounding and the underlying benchmark volatility. To minimize these effects, longer term investors should rebalance their HBP ETF holdings periodically.
TOP TEN INDEX HOLDINGS (MAY 31, 2009)
| 1. Barrick Gold Corp. | 18.70% | 6. Agnico-Eagle Mines | 5.42% | |
|---|---|---|---|---|
| 2. Goldcorp Inc. | 16.30% | 7. Gold Fields | 5.04% | |
| 3. Newmont Mining | 13.57% | 8. Yamana Gold Inc. | 4.87% | |
| 4. Anglogold Ashanti Ltd. | 8.50% | 9. Lihir Gold Ltd. | 3.46% | |
| 5. Kinross Gold | 7.82% | 10. Randgold Resources | 3.04% | |
| TOTAL: | 86.72% | |||
ETF SNAPSHOT
| Ticker: | HGU / HGD |
|---|---|
| Inception Date: | June 26, 2007 |
| Cusip: | 44045W104 / 44045V205 |
| Exchange: | TSX |
| Underlying Index: | S&P/TSX Global Gold |
| Bloomberg Index Ticker: | TTGDAR |
| Management Fee: | 1.15% |
| RSP and TFSA Eligible: | Yes |
| Portfolio Manager: | ProShare Advisors LLC |
PERFORMANCE (MAY 31, 2009)
| Bear (HGD) | Bull (HGU) | S&P/TSX Global Gold | |
|---|---|---|---|
| 1 Month | -36.17% | 48.64% | 22.40% |
| 3 Months | -34.48% | 13.26% | 10.20% |
| 6 Months | -67.72% | 40.24% | 30.90% |
| YTD | -44.42% | 3.39% | 9.68% |
| 1 Year | -88.84% | -40.47% | 6.92% |
| 3 Years | - | - | 3.87% |
| 5 Years | - | - | 10.42% |
| Since Inception | -77.10% | -17.14% | - |
HISTORICAL RETURNS
The following table shows the cumulative growth of $10,000 initial investment in the fund.
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