The first ETF in Canada
to provide exposure to the performance of
Europe's blue chip
benchmark.
TORONTO, Dec. 7, 2016 /CNW/ - Horizons ETFs Management
(Canada) Inc. ("Horizons
ETFs") is pleased to announce the launch of the Horizons EURO
STOXX 50® Index ETF ("HXX"). The first of
its kind in Canada, HXX will
provide investors with low-cost, tax-efficient exposure to the
performance of 50 of the largest, sector-leading companies in
Europe.
Units of the exchange traded fund ("ETF") will begin
trading today on the Toronto Stock Exchange ("TSX") under
the ticker symbol HXX.
HXX seeks to replicate, to the extent possible, the performance
of the EURO STOXX 50® Futures Roll Index (Total Return),
net of expenses. The EURO STOXX 50® Futures Roll Index
(Total Return) is designed to reflect the returns generated, over
time, through notional investments in a long position in a series
of futures contracts on the EURO STOXX 50® Index.
Currently, there are no other Canadian ETFs that track this
index. The introduction of HXX also represents the first time that
a Canadian ETF provider has licensed an index from STOXX Ltd. to
provide exposure to the EURO STOXX 50® Index – its most
widely followed index strategy.
The EURO STOXX 50® is a leading blue-chip index for
the 19 European Union countries that have adopted the Euro as their
currency. It currently covers 50 stocks from 19 super-sectors in 12
Eurozone countries: Austria,
Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the
Netherlands, Portugal and
Spain.
HXX uses Horizons ETFs' innovative total return index
("TRI") structure to provide tax-efficient exposure to the
total return of the EURO STOXX 50® Futures Roll
Index.
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. Instead, the value of any
dividend or interest income is directly reflected in the
performance of the ETF. This leads to greater tax efficiency for
investors who hold the ETF in non-registered investment accounts.
In addition, tracking error is also reduced in TRI ETFs since there
are no portfolio trading costs.
"The EURO STOXX 50® provides exposure to some of
Europe's largest and most
well-known brand names, including Anheuser-Busch InBev, Bayer, BASF
and Daimler," says Steve
Hawkins, President and Co-CEO of Horizons ETFs. "Using
our innovative TRI structure, HXX investors will get exposure to
the total return of these sector-leading European stocks. European
stocks currently offer higher dividends on average than would
currently be earned on similar North American stocks. Taxes, which
include foreign withholding tax, eliminate a lot of the yield
advantage of these stocks. HXX's unique TRI structure largely
eliminates immediate taxation of these distributions which should
result in a better after-tax return for holders of HXX versus other
Canadian-listed European equity index ETFs."
HXX 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
offering the Horizons ETFs family of exchange traded funds. 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. Horizons ETFs has more than $7
billion of assets under management. With 76 ETFs listed on
the Toronto Stock Exchange, the Horizons ETFs family makes up one
of the largest families of ETFs in Canada. Horizons ETFs Management (Canada) Inc. and AlphaPro Management Inc. are
members of the Mirae Asset Global Investments Group.
Horizons ETFs is a Member of Mirae Asset Global Investments.
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.
SOURCE Horizons ETFs Management (Canada) Inc.
