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 500® Bull Plus ETF (HBP S&P 500® Bull+ ETF) and the Horizons BetaPro S&P 500® Bear Plus ETF (HBP S&P 500® Bear+ ETF) seek daily investment results equal to 200% the daily performance, or inverse performance, of the S&P 500® Index, before fees and expenses. The S&P 500® Index is an index of 500 stocks chosen for market size, liquidity and industry grouping, among other factors. The S&P 500® is designed to be a leading indicator of U.S. equities, reflecting the risk/return characteristics of the large cap universe. The Index is one of the most commonly used benchmarks for the overall U.S. stock market.
PRINCIPAL INVESTMENT STRATEGY
The HBP S&P 500® Bull+ ETF and the HBP S&P 500® 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 S&P 500Ò 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 (OCTOBER 31, 2009)
| 1. Exxon Mobil | 3.77% | 6. Johnson & Johnson | 1.78% | |
|---|---|---|---|---|
| 2. Microsoft | 2.36% | 7. IBM | 1.73% | |
| 3. Procter & Gamble | 1.86% | 8. Chevron Corp. | 1.68% | |
| 4. Apple | 1.85% | 9. AT&T Inc. | 1.66% | |
| 5. JP Morgan Chase & Co. | 1.80% | 10. General Electric | 1.66% | |
| TOTAL: | 20.15% | |||
ETF SNAPSHOT
| Ticker: | HSU / HSD |
|---|---|
| Inception Date: | June 18, 2008 |
| Cusip: | 44046M105 / 44045R105 |
| Exchange: | TSX |
| Underlying Index: | S&P 500 Composite Total Return |
| Bloomberg Index Ticker: | SPTR |
| Management Fee: | 1.15% |
| RSP and TFSA Eligible: | Yes |
| Portfolio Manager: | ProShare Advisors LLC |
PERFORMANCE (OCTOBER 31, 2009)
| Bear (HSD) | Bull (HSU) | S&P 500 Composite Total Return | |
|---|---|---|---|
| 1 Month | 2.86% | -4.65% | -1.86% |
| 3 Months | -12.14% | 8.80% | 5.48% |
| 6 Months | -34.46% | 36.71% | 20.04% |
| YTD | -39.16% | 19.12% | 17.05% |
| 1 Year | -40.23% | -4.85% | 9.80% |
| 3 Years | - | - | -7.02% |
| 5 Years | - | - | 0.33% |
| Since Inception | -7.21% | -45.60% | - |
HISTORICAL RETURNS
The following table shows the cumulative growth of $10,000 initial investment in the fund.
26 Wellington St. E. Suite 920 Toronto, ON, M5E 1S2