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 MSCI Emerging Markets Bull Plus ETF (HBP MSCI Emerging Markets Bull+ ETF) and the Horizons BetaPro MSCI Emerging Markets Bear Plus ETF (HBP MSCI Emerging Markets Bear+ ETF) seek daily investment results equal to 200% the daily performance, or inverse performance, of the MSCI® Emerging Markets Index, before fees and expenses. Created by Morgan Stanley Capital International (MSCI), the MSCI Emerging Markets® Index is a float-adjusted market capitalization index that is designed to measure equity market performance in global emerging markets. As of May 2005, it consisted of indices in 26 emerging economies: Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Israel, Jordan, Korea, Malaysia, Mexico, Morocco, Pakistan, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, Turkey and Venezuela.
PRINCIPAL INVESTMENT STRATEGY
The HBP MSCI Emerging Markets Bull+ ETF and the HBP MSCI Emerging Markets 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 MSCI® Emerging Markets 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. Samsung Electronics Co. | 2.29% | 6. Vale S.A. | 1.61% | |
|---|---|---|---|---|
| 2. Petroleo Bras Sa Petro | 2.14% | 7. Taiwan Semiconductor | 1.54% | |
| 3. CHINA MOBILE | 1.96% | 8. Teva Pharmaceutical | 1.51% | |
| 4. OAO Gazprom ADR | 1.95% | 9. America Movil | 1.40% | |
| 5. Petroleo Bras Sa Petro | 1.79% | 10. China Construction Bank | 1.35% | |
| TOTAL: | 17.54% | |||
ETF SNAPSHOT
| Ticker: | HJD / HJU |
|---|---|
| Inception Date: | July 9, 2008 |
| Cusip: | 44045M114 / 44045Q206 |
| Exchange: | TSX |
| Underlying Index: | MSCI Emerging Markets Free ($ Cdn) |
| Bloomberg Index Ticker: | MXEF |
| Management Fee: | 1.15% |
| RSP and TFSA Eligible: | Yes |
| Portfolio Manager: | ProShare Advisors LLC |
PERFORMANCE (SEPTEMBER 30, 2009)
| Bear (HJD) | Bull (HJU) | MSCI Emerging Markets Free ($ Cdn) | |
|---|---|---|---|
| 1 Month | -18.46% | 20.32% | 6.62% |
| 3 Months | -34.42% | 40.96% | 11.86% |
| 6 Months | -65.57% | 126.95% | 39.23% |
| YTD | -71.92% | 97.70% | 43.35% |
| 1 Year | -82.91% | -33.10% | 20.58% |
| 3 Years | - | - | 6.89% |
| 5 Years | - | - | 13.87% |
| Since Inception | -72.22% | -54.59% | - |
HISTORICAL RETURNS
The following table shows the cumulative growth of $10,000 initial investment in the fund.
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