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 Financials Bull+ ETF (HBP Financials Bull+ ETF) and the Horizons BetaPro Financials Bear+ ETF (HBP Financials Bear+ ETF) seek daily investment results equal to 200% the daily performance, or inverse daily performance, of the S&P/TSX Capped Financials Index™ , before fees and expenses. The Index includes stocks belonging to the S&P/TSX Financials 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 Financials Bull+ ETF and the HBP Financials 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 Financials 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. Royal Bank of Canada | 20.43% | 6. CIBC | 6.91% | |
|---|---|---|---|---|
| 2. TD Bank | 15.71% | 7. Sun Life Financial Inc. | 5.34% | |
| 3. Bank of Nova Scotia | 12.85% | 8. Power Corp of Canada | 2.82% | |
| 4. Manulife Financial | 12.57% | 9. National Bank of Canada | 2.72% | |
| 5. Bank of Montreal | 7.87% | 10. Power Financial Corp. | 1.93% | |
| TOTAL: | 89.15% | |||
ETF SNAPSHOT
| Ticker: | HFD / HFU |
|---|---|
| Inception Date: | June 12, 2007 |
| Cusip: | 440457109 / 440449106 |
| Exchange: | TSX |
| Underlying Index: | S&P/TSX Capped Financials |
| Bloomberg Index Ticker: | TTFSAR |
| Management Fee: | 1.15% |
| RSP and TFSA Eligible: | Yes |
| Portfolio Manager: | ProShare Advisors LLC |
PERFORMANCE (MAY 31, 2009)
| Bear (HFD) | Bull (HFU) | S&P/TSX Capped Financials | |
|---|---|---|---|
| 1 Month | -20.63% | 18.38% | 9.40% |
| 3 Months | -61.03% | 95.09% | 42.49% |
| 6 Months | -42.94% | 2.76% | 5.55% |
| YTD | -50.41% | 29.00% | 17.08% |
| 1 Year | -27.80% | -52.65% | -23.93% |
| 3 Years | - | - | -7.15% |
| 5 Years | - | - | 1.24% |
| Since Inception | -9.32% | -39.55% | - |
HISTORICAL RETURNS
The following table shows the cumulative growth of $10,000 initial investment in the fund.
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