New ETF provides low-cost, tax-efficient exposure
to NASDAQ-100® Index
TORONTO, April 20, 2016 /CNW/ - Horizons ETFs Management
(Canada) Inc. ("Horizons
ETFs") is pleased to announce the launch of the Horizons
Nasdaq-100® Index ETF ("HXQ"), which will provide
investors with low-cost, tax-efficient exposure to 100 of the
largest U.S. and international non-financial companies listed on
The NASDAQ
Units of the exchange traded fund ("ETF") will begin
trading today on the Toronto Stock Exchange ("TSX") in both
Canadian and U.S. dollars under the ticker symbols HXQ and
HXQ.U.
HXQ seeks to replicate, to the extent possible, the performance
of the NASDAQ-100® Index (Total Return) – "The Index" –
net of expenses, and can be purchased or sold in both Canadian and
U.S. dollars. HXQ uses Horizons ETFs' innovative total return index
("TRI") structure to provide tax-efficient exposure to the
NASDAQ-100®, in U.S. dollar terms.
TRI ETFs are low-cost, index-replicating ETFs that use a
synthetic replication structure to receive the pre-tax total return
of an index. Unlike physically-replicated ETFs, no distributions
are expected to be paid by the ETF; this leads to greater tax
efficiency for investors who hold the ETF in non-registered
investment accounts. Instead, the value of the dividend or interest
income is directly reflected in the performance of the ETF. In
addition, tracking error is also reduced in TRI ETFs since there
are no portfolio trading costs.
"The NASDAQ-100 is an investor's main index for exposure to
some of the world's largest and most well-known brand names, like
Apple, Facebook, Google and Microsoft," says Steve Hawkins, Co-CEO, Horizons ETFs. "Using our
innovative TRI structure, HXQ investors can now receive the total
return of these important growth stocks. This creates the potential
for greater compounded after-tax returns versus other NASDAQ-100
ETFs, as HXQ is not exposed to the same withholding taxes for
holding the index constituents directly."
HXQ has closed its initial offering of units and will begin
trading on the TSX when the market opens this morning.
About Horizons ETFs Management (Canada) Inc. (www.HorizonsETFs.com)
Horizons ETFs Management (Canada) Inc. and its affiliate AlphaPro
Management Inc. are innovative financial services companies, which
combined make up one of the largest families of exchange traded
funds in Canada. The Horizons
ETFs' product suite 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 currently has more than $6
billion of assets under management and has 73 ETFs listed on
the Toronto Stock Exchange. Horizons ETFs Management (Canada) Inc. and AlphaPro Management Inc. are
members of the Mirae Asset Global Investments Group.
Commissions, management fees and applicable sales taxes all
may be associated with an investment in the exchange traded funds
managed by Horizons ETFs Management (Canada) Inc. (the "ETFs"). The ETFs are not
guaranteed, their values change frequently and past performance may
not be repeated. The prospectus contains important detailed
information about the ETFs. Please read the prospectus before
investing.
Certain statements contained in this news release constitute
forward-looking information within the meaning of Canadian
securities laws. Forward-looking information may relate to a future
outlook and anticipated distributions, events or results and may
include statements regarding future financial performance. In some
cases, forward-looking information can be identified by terms such
as "may", "will", "should", "expect", "anticipate", "believe",
"intend" or other similar expressions concerning matters that are
not historical facts. Actual results may vary from such
forward-looking information. Horizons ETFs undertakes no obligation
to update publicly or otherwise revise any forward-looking
statement whether as a result of new information, future events or
other such factors which affect this information, except as
required by law.
"NASDAQ-100®" is a registered trademark of NASDAQ, Inc.
("NASDAQ"). These marks have been licensed for use by Horizons ETFs
Management (Canada) Inc. The ETF
is not sponsored, endorsed, sold, or promoted by the NASDAQ or its
affiliated companies and none of these parties make any
representation, warranty or condition regarding the advisability of
buying, selling or holding units/shares of the ETF. Complete
trademark and service-mark information is available at
www.HorizonsETFs.com/pub/en/Trademark.aspx.
SOURCE Horizons ETFs Management (Canada) Inc.