Firm launches Canada-first ETF strategies with exposure to Big Six banks at 2x leverage and -2x inverse leverage
Horizons ETFs Management has added two new bank-focused strategies to bolster its lineup of leveraged and inverse ETFs.
The BetaPro Equal Weight Canadian Bank 2x Daily Bull ETF (HBKU) and the BetaPro Equal Weight Canadian Bank -2x Daily Bear ETF (HBKD) are now trading on the Toronto Stock Exchange.
The Horizons ETFs BetaPro family of funds, which includes HBKU and HBKD, is Canada's only group of exchange traded funds that offers leveraged, inverse leveraged, and inverse exposure to a wide range of asset classes.
HBKU and HBKD offer leveraged and inverse leveraged exposure, respectively, to an index of Canada's Big Six banks.
"Within the TSX's top 60 companies, Canada's Big Six banks make up nearly a quarter of the total market capitalization, underscoring their relative importance to the Canadian equity market and the economy at large," said Steve Hawkins, President and CEO of Horizons ETFs.
"Whether you are bullish or bearish on a variety of sectors, broad indices or commodities, our suite of leveraged and inverse leveraged ETFs can provide a potential high-conviction, short-term trade.”
HBKU aims to produce daily investment returns that attempt to correspond to two times (200%) the daily performance of the Solactive Equal Weight Canada Banks Index before fees, expenses, and other transaction costs.
Meanwhile, HBKD strives to achieve daily investment results that aim to correspond to two times (200%) the inverse (opposite) of the daily performance of the Solactive Equal Weight Canada Banks Index before transaction costs.
Both ETFs come with a management fee of 1.15%.
"Now, with HBKU and HBKD, we are giving Canadian investors the ability to invest those views on either the long or short side of the Canadian banking sector without taking on the high costs of using margin or borrowing and shorting directly," Hawkins said.
