HUF.U Horizons Active Ultra Short Term US Investment Grade Bond ETF

TORONTO, Dec. 18, 2012 /CNW/ - Horizons Exchange Traded Funds Inc. ("Horizons ETFs") and its affiliates are pleased to announce the distribution amounts per unit (the "Distributions") for certain of the Horizons ETFs family of exchange traded funds (the "ETFs"), for the 2012 tax year end, as indicated in the table below.

Each of the ETFs is required to distribute any net income and capital gain that they have earned in the year.  All of the distributions indicated in the table will be paid in cash unless the Unitholder has enrolled in the applicable dividend reinvestment plan ("DRIP") of the respective ETF.  The annual capital gains distributions will not be paid in cash but will be reinvested and reported as taxable distributions and will be used to increase each Unitholder's adjusted cost base of their units of the respective ETF.  The number of units held by the Unitholder will not change as a result of the capital gains distributions. The annual capital gains rates in the table below are presented on an estimated basis. A press release confirming the final annual capital gains rates will be disseminated prior to the record date of the distributions.

The ex-dividend date for the Distributions is anticipated to be December 27, 2012, for all unitholders of record on December 31, 2012.  The Distributions will be paid in cash or, if the unitholder has enrolled in the respective ETF's dividend reinvestment plan (DRIP), reinvested in additional units of the applicable ETF, on or about January 11, 2013.

Horizons ETFs will make an additional announcement of the December distributions for its family of covered call exchange traded funds on or about December 19, 2012.

CLASS E UNITS

ADVISOR CLASS UNITS

* Based on the applicable December 17, 2012 net asset value per unit which is available at www.horizonsetfs.com.  The Annualized Yield is solely in respect of the cash distributions per unit and does not include the reinvested annual capital gains distributions.

⁽¹⁾ Distributions for Horizons Active US Floating Rate Bond (USD) ETF are declared and paid in U.S. dollars.
⁽²⁾ Distributions for Horizons Universa US Black Swan ETF are declared and paid in U.S. dollars.

The Distributions will vary from period to period.

About Horizons Exchange Traded Funds Inc. (www.horizonsetfs.com)

Horizons ETFs is an innovative financial services company offering the Horizons ETFs family of ETFs. The Horizons ETFs family includes a broadly diversified range of investment tools with solutions for investors of all experience levels to meet their investment objectives in a variety of market conditions. With approximately $3.5 billion in assets under management and 79 ETFs listed on the Toronto Stock Exchange, the Horizons ETFs family makes up one of the largest families of ETFs in Canada. Horizons ETFs is a subsidiary of Horizons ETFs Management (Canada) Inc. and a member of the Mirae Asset Financial Group.

SOURCE Horizons Exchange Traded Funds Inc.