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 Mining Bull Plus ETF (HBP Global Mining Bull+ ETF) and the Horizons BetaPro S&P/TSX Global Mining Bear Plus ETF (HBP Global Mining Bear+ ETF) seek daily investment results equal to 200% the daily performance, or inverse performance, of the S&P/TSX Global Mining Index™ , before fees and expenses. The Index consists of securities of global mining sector issuers listed on the TSX, NYSE, NASDAQ and AMEX.
PRINCIPAL INVESTMENT STRATEGY
The HBP Global Mining 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 Mining 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. BHP Billiton Limited | 16.68% | 6. Vale Rio Doce | 5.72% | |
|---|---|---|---|---|
| 2. BHP Billiton PLC | 9.40% | 7. Goldcorp Inc. | 5.09% | |
| 3. Rio Tinto | 7.06% | 8. Newmont Mining Corp. | 4.23% | |
| 4. Anglo American PLC | 6.69% | 9. Freeport McMoran | 3.97% | |
| 5. Barrick Gold Corp. | 5.83% | 10. Anglogold Ashanti Ltd. | 2.65% | |
| TOTAL: | 67.32% | |||
ETF SNAPSHOT
| Ticker: | HMD / HMU |
|---|---|
| Inception Date: | January 22, 2008 |
| Cusip: | 440451102 / 44045O203 |
| Exchange: | TSX |
| Underlying Index: | S&P/TSX Global Mining |
| Bloomberg Index Ticker: | TXGM |
| Management Fee: | 1.15% |
| RSP and TFSA Eligible: | Yes |
| Portfolio Manager: | ProShare Advisors LLC |
PERFORMANCE (MAY 31, 2009)
| Bear (HMD) | Bull (HMU) | S&P/TSX Global Mining | |
|---|---|---|---|
| 1 Month | -27.58% | 28.73% | 14.41% |
| 3 Months | -50.43% | 63.30% | 30.77% |
| 6 Months | -66.02% | 54.08% | 34.02% |
| YTD | -52.57% | 40.39% | 25.18% |
| 1 Year | -49.17% | -73.87% | -34.27% |
| 3 Years | - | - | - |
| 5 Years | - | - | - |
| Since Inception | -60.03% | -49.84% | - |
HISTORICAL RETURNS
The following table shows the cumulative growth of $10,000 initial investment in the fund.
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