Horizons ETFs Offers Canada's Largest Suite of Gold-Focused
ETFs
TORONTO, July 8, 2020 /CNW/ - Effective today, Horizons
ETFs Management (Canada) Inc.
("Horizons ETFs") has lowered the management fee on the
Horizons Gold ETF ("HUG") from 0.65% to 0.20% (plus
applicable sales tax).
In Horizons ETFs' opinion, this reduction in management fee
improves the appeal of HUG for investors seeking exposure to gold
bullion, and makes HUG one of the lowest cost gold ETFs in
Canada¹.
HUG seeks investment results, before fees, expenses,
distributions, brokerage commissions and other transaction costs,
that endeavour to correspond to the performance of the Solactive
Gold Front Month MD Rolling Futures Index ER. HUG is denominated in
Canadian dollars. Any U.S. dollar gains or losses as a result of
the ETF's investment will be hedged back to the Canadian dollar to
the best of the ETF's ability.
"HUG is a simple to use ETF that provides Canadian investors
with exposure to gold bullion," said Steve Hawkins, President and CEO of Horizons
ETFs. "Gold has been a strong performing asset class in 2020
thus far, resulting from market uncertainty and deflationary
pressures, globally. Our fee reduction represents more than a
two-thirds decrease in the management fee of the ETF – a
significant cost savings opportunity that we are happy to pass on
to investors looking for a low-cost ETF solution to obtain exposure
to gold."
HUG Performance
|
1 Mo
|
3 Mo
|
6
Mo/YTD
|
1 Yr
|
3 Yr
|
5 Yr
|
10 Yr
|
SIR**
|
|
HUG
|
2.72%
|
11.37%
|
15.97%
|
23.55%
|
10.19%
|
6.29%
|
1.72%
|
3.96%
|
|
Source: Horizons ETFs
as at June 30, 2020. **Since HUG's inception on June 24,
2009.
|
HUG and Horizons' single commodity ETFs are based on futures
contracts. Futures contracts are rolled from their specified
delivery month to a subsequent delivery month before contract
maturity (when the holder of the contract would be required to
accept or make delivery of a physical commodity). Gold and other
commodities tend to have a low correlation with global stock
markets; not necessarily moving in the same direction or by the
same magnitude as stocks. Adding commodities to your portfolio can
potentially reduce its overall volatility.
On November 27, 2019, after
receiving unitholder approval, HUG merged into a class of shares of
a corporate fund structure which resulted in increased operational
efficiencies for HUG.
|
¹Compared to other
Canadian ETFs in the "Gold" fund commodity category. HUG is tied
for the lowest management fee with one other ETF, among a total of
four "Gold" ETFs, as at June 30, 2020.
|
About Horizons ETFs Management (Canada) Inc.
(www.HorizonsETFs.com)
Horizons ETFs Management (Canada) Inc. is an innovative financial
services company and offers one of the largest suites of exchange
traded funds in Canada. The
Horizons ETFs product family includes a broadly diversified range
of solutions for investors of all experience levels to meet their
investment objectives in a variety of market conditions. Horizons
ETFs has over $13.5 billion of assets
under management and 92 ETFs listed on major Canadian stock
exchanges.
Commissions, management fees and expenses all may be
associated with an investment in exchange traded products (the
"Horizons Exchange Traded Products") managed by Horizons ETFs
Management (Canada) Inc. The
Horizons Exchange Traded Products are not guaranteed, their values
change frequently and past performance may not be repeated. The
prospectus contains important detailed information about the
Horizons Exchange Traded Products. Please read the relevant
prospectus before investing.
The indicated rates of return in the table above are the
historical annual compounded total returns including changes in per
unit/share value and reinvestment of all dividends or distributions
and do not take into account sales, redemption, distribution or
optional charges or income taxes payable by any securityholder that
would have reduced returns. The rates of return shown in the table
are not intended to reflect future values. HUG is not guaranteed,
its value changes frequently and past performance may not be
repeated.
The Inception Date shown is the inception date of the
predecessor ETF of the same name which was structured as a trust.
On November 27, 2019, after receiving
unitholder approval, the predecessor ETF merged into a class of
shares of a corporate fund structure. In accordance with exemptive
relief, the data of the ETF presented here includes the historical
data of the predecessor ETF in order to provide full disclosure of
the ETF's data.
SOURCE Horizons ETFs Management (Canada) Inc.