Horizons ETFs Adds HGRO to its Suite of One-Ticket-Solution ETFs
Horizons third one-ticket-solution ETF is 100% equity focused and oriented to growth-seeking investors
TORONTO, Sept. 16, 2019 /CNW/ - Horizons ETFs Management (Canada) Inc. ("Horizons ETFs") is launching Horizons Growth TRI ETF Portfolio ("HGRO"), an all-equity "ETF of ETFs" portfolio that will be the third offering within its One-Ticket-Solution ETFs line-up. Units of the ETF will trade on the Toronto Stock Exchange ("TSX"), under the ticker symbol HGRO, commencing today.
HGRO is the latest One-Ticket-Solution ETF portfolio of ETFs from Horizons ETFs; joining the Horizons Conservative TRI ETF Portfolio ("HCON") and the Horizons Balanced ETF Portfolio ("HBAL"), which were launched in 2018. Like HCON and HBAL, HGRO will only hold ETFs that are part of Horizons ETFs' Total Return Index ("TRI") suite of ETFs.
HGRO seeks long-term capital growth by investing in a growth portfolio consisting primarily of equity TRI ETFs. The portfolio targets a long-term asset allocation of at least 99% equity securities at the time of any rebalance, and the portfolio will be rebalanced semi-annually in order to seek a consistent level of risk from developed countries around the world.
The equity components will only include TRI ETFs that offer exposure to North American and other global equities, and seek a "world" equity return. Generally, no less than 15% of HGRO's portfolio will be exposed to Canadian equity securities as at each semi-annual rebalance.
"While mutual funds may have historically dominated the one-ticket-solution investing space, commonly referred to as balanced funds or fund-of-funds, today's Canadian marketplace is seeing significant demand from retail and institutional investors for one-ticket ETF solutions," said Steve Hawkins, President and CEO of Horizons ETFs. "HGRO is an equity-focused ETF that provides broad global equity exposure, with the added benefits of using our TRI ETFs, which have low index replication tracking error in a low fee structure."
Investors in HGRO are not subject to any direct management fees or operating costs. HGRO has no direct management fee, and Horizons ETFs pays all of the operating and administrative expenses incurred directly by HGRO. However, HGRO will indirectly pay the management fees and trading expenses of the TRI ETFs it holds.
Based on the historical management expense ratio of the portfolio of TRI ETFs held by HGRO, the total management expense ratio of HGRO is expected to be 0.17%, and will not exceed 0.19%, at any rebalance.
Based on the historical trading expense ratio of the TRI ETFs currently held by HGRO, the aggregate underlying trading expense ratio of the portfolio of TRI ETFs held by HGRO is expected to be 0.28%. As trading expense ratios include expenses outside of the control of Horizons ETFs, the trading expense ratio of the portfolio of TRI ETFs held by HGRO is subject to change.
HGRO has closed its initial offering of units and will begin trading today on the TSX when the market opens this morning.
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 more than $10 billion of assets under management and 91 ETFs listed on major Canadian stock exchanges.
Commissions, management fees and applicable sales taxes all may be associated with an investment in the Horizons Growth TRI ETF Portfolio (the "ETF") is managed by Horizons ETFs Management (Canada) Inc. The ETF is not guaranteed, its value changes frequently, and past performance may not be repeated. The prospectus contains important detailed information about the ETF. Please read the prospectus before investing.
Certain statements may constitute a forward-looking statement, including those identified by the expression "expect" and similar expressions (including grammatical variations thereof). The forward-looking statements are not historical facts but reflect the author's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. These and other factors should be considered carefully and readers should not place undue reliance on such forward looking statements. These forward-looking statements are made as of the date hereof and the authors do not undertake to update any forward-looking statement that is contained herein, whether as a result of new information, future events or otherwise, unless required by applicable law.
SOURCE Horizons ETFs Management (Canada) Inc.
For investor inquiries: Contact Horizons ETFs at 1-866-641-5739 (toll-free) or (416) 933-5745, [email protected]; For media inquiries: Contact Jonathan McGuire, External Communications Manager, Horizons ETFs Management (Canada) Inc., (416) 640-2956, [email protected]
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