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 Capped Energy Bull+ ETF (HBP Energy Bull+ ETF) and the Horizons BetaPro Capped Energy Bear+ ETF (HBP Energy Bear+ ETF) seek daily investment results equal to 200% the daily performance, or inverse daily performance, of the S&P/TSX Capped Energy Index™, before fees and expenses. The Index includes stocks belonging to the S&P/TSX Energy industry sector classification, with the weight of any one company capped at 25% of the market capitalization of the Index.
PRINCIPAL INVESTMENT STRATEGY
The HBP Energy Bull+ ETF and the HBP Energy 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 Capped Energy 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 (JANUARY 31, 2010)
| 1. Suncor Energy | 19.52% | 6. Canadian Oil Sands Trust | 4.98% | |
|---|---|---|---|---|
| 2. Canadian Natural Resources | 13.72% | 7. Nexen Inc. | 4.53% | |
| 3. EnCana Corp. | 9.11% | 8. Imperial Oil | 3.62% | |
| 4. Cenovus Energy | 6.88% | 9. Crescent Point Energy | 2.83% | |
| 5. Talisman Energy | 6.66% | 10. Penn West Energy Trust | 2.74% | |
| TOTAL: | 74.59% | |||
ETF SNAPSHOT
| Ticker: | HED / HEU |
|---|---|
| Inception Date: | June 19, 2007 |
| Cusip: | 440453108 / 44045X102 |
| Exchange: | TSX |
| Underlying Index: | S&P/TSX Capped Energy |
| Bloomberg Index Ticker: | TTENAR |
| Management Fee: | 1.15% |
| RSP and TFSA Eligible: | Yes |
| Portfolio Manager: | ProShare Advisors LLC |
PERFORMANCE (JANUARY 31, 2010)
| Bear (HED) | Bull (HEU) | S&P/TSX Capped Energy | |
|---|---|---|---|
| 1 Month | 13.03% | -12.46% | -6.36% |
| 3 Months | -0.53% | -3.25% | -1.67% |
| 6 Months | -19.50% | 10.93% | 5.79% |
| YTD | 13.03% | -12.46% | -6.36% |
| 1 Year | -66.26% | 65.96% | 35.61% |
| 3 Years | - | - | -4.74% |
| 5 Years | - | - | 5.82% |
| Since Inception | -34.91% | -33.76% | - |
HISTORICAL RETURNS
The following table shows the cumulative growth of $10,000 initial investment in the fund.
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