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 NASDAQ 100® Bull Plus ETF (HBP NASDAQ 100® Bull+ ETF) and the Horizons BetaPro NASDAQ 100® Bear Plus ETF (HBP NASDAQ 100® Bear+ ETF) seek daily investment results equal to 200% the daily performance, or inverse performance, of the NASDAQ 100® Index, before fees and expenses. The NASDAQ 100® Index includes 100 of the largest domestic and international non-financial securities listed on the NASDAQ stock market based on market capitalization. The Index reflects companies across major industry groups including computer hardware and software, telecommunications, retail/wholesale trade and biotechnology. It does not contain securities of financial companies.
PRINCIPAL INVESTMENT STRATEGY
The HBP NASDAQ 100® Bull+ ETF and the HBP NASDAQ 100® 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 performance of the NASDAQ 100® 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. Apple | 13.08% | 6. Oracle Corp. | 3.20% | |
|---|---|---|---|---|
| 2. Qualcomm | 6.72% | 7. Gilead Sciences | 3.00% | |
| 3. Microsoft | 4.96% | 8. Cisco Systems | 2.99% | |
| 4. Google | 4.73% | 9. Teva Pharmaceutical | 2.57% | |
| 5. Research In Motion | 3.45% | 10. Intel | 2.37% | |
| TOTAL: | 47.07% | |||
ETF SNAPSHOT
| Ticker: | HQD / HQU |
|---|---|
| Inception Date: | June 18, 2008 |
| Cusip: | 44045N104 / 44045L108 |
| Exchange: | TSX |
| Underlying Index: | NASDAQ Composite |
| Bloomberg Index Ticker: | XNDX |
| Management Fee: | 1.15% |
| RSP and TFSA Eligible: | Yes |
| Portfolio Manager: | ProShare Advisors LLC |
PERFORMANCE (MAY 31, 2009)
| Bear (HQD) | Bull (HQU) | NASDAQ Composite | |
|---|---|---|---|
| 1 Month | -7.24% | 4.97% | 3.32% |
| 3 Months | -44.41% | 56.98% | 28.78% |
| 6 Months | -44.38% | 30.91% | 15.55% |
| YTD | -38.30% | 28.73% | 12.51% |
| 1 Year | - | - | -29.66% |
| 3 Years | - | - | -6.62% |
| 5 Years | - | - | -2.24% |
| Since Inception | 13.88% | -60.62% | - |
HISTORICAL RETURNS
The following table shows the cumulative growth of $10,000 initial investment in the fund.
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