Download Inverse Indexing

Inverse Indexing
A More Efficient Way to Express a Negative View on the Markets
What are Inverse ETFs?
Inverse ETFs are investments that deliver the opposite performance of their reference index on a daily basis.
Horizons ETFs Management (Canada) Inc. offers inverse ETFs based on three of the most widely followed
market indices in Canada and the United States:
• Horizons BetaPro S&P/TSX 60™ Inverse ETF (HIX)
• Horizons BetaPro S&P 500® Inverse ETF( HIU)
• Horizons BetaPro S&P 500 VIX Short-Term Futures™ Inverse ETF (HVU)
Who Uses Inverse ETFs?
Ideal for investors seeking to profit or protect during market declines or periods of increased volatility.
How an Inverse ETF Works
Inverse ETFs are similar to holding short positions to hedge against, or profit from, falling prices.
*before fees and expenses
Example: An investor who owns a broadly diversified portfolio of Canadian large-cap stocks believes that the Canadian large-cap
market will decline over the next quarter. The investor could hedge their portfolio against a decline by buying the Horizons
BetaPro S&P/TSX 60™ Inverse ETF to hedge against it. By buying an inverse ETF, the investor can avoid selling stock from their
existing portfolio, which may incur a capital gain/loss, while continuing to benefit from the dividends paid by those stocks.
Benefits of Inverse ETFs
• No margin account required (no borrow/margin calls to worry about)
• Eligible for non-margin accounts such as RRSPs, RESP and TFSA
• Risk is limited to the capital invested (short selling, on the other hand, is subject to potentially unlimited loss)
• Can reduce risk without having to sell existing stocks and incur a capital gain/loss
• Allows investors to continue receiving any dividends paid by the stocks they are hedging in their portfolio
Innovation is our capital. Make it yours.
http://www.HorizonsETFs.com
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Inverse Indexing
Horizons has the largest family of Inverse ETFs in Canada.
HIX
Horizons BetaPro S&P/TSX 60TM Inverse ETF
HIU
Horizons BetaPro S&P 500® Inverse ETF
Horizons BetaPro S&P 500 VIX Short-Term Futures Inverse ETF
TM
HVI
Horizons BetaPro S&P/TSX 60™ Inverse ETF (HIX)
The Horizons BetaPro S&P/TSX 60 Inverse ETF (HBP S&P/TSX 60
Inverse ETF) seeks daily investment results, before fees, expenses, distributions, brokerage commissions and other
transaction costs, that endeavour to correspond to one times (100%) the inverse (opposite) of the daily performance
of the S&P/TSX 60 Index™.
Horizons BetaPro S&P 500® Inverse ETF (HIU)
The Horizons BetaPro S&P 500® Inverse ETF seeks daily investment results, before fees, expenses, distributions, brokerage
commissions and other transaction costs, that endeavour to correspond to one times (100%) the inverse (opposite) of the
daily performance of the S&P 500®. 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 its ability.
Horizons BetaPro S&P 500 VIX Short-Term Futures™ Inverse ETF (HVI)
The Horizons BetaPro S&P 500 VIX Short-Term Futures™ Inverse ETF seeks daily investment results, before fees, expenses,
distributions, brokerage commissions and other transaction costs that endeavour to correspond to the inverse (opposite)
of the daily performance of the S&P 500 VIX Short-Term Futures Index™. 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.
To learn more, please visit www.HorizonsETFs.com
ALPHA
BENCHMARK
BETAPRO
Horizons ETFs is a member of Mirae Asset Global Investments. Commissions, trailing commissions, management fees and expenses all may be associated with an investment in exchange traded
products managed by AlphaPro Management Inc. and Horizons ETFs Management (Canada) Inc. (the “Horizons Exchange Traded Products”). 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 prospectus before investing. H00322 0315