Q&A interview with Horizons ETFs CEO Mr. Howard Atkinson
Tell me about Horizons ETFs.
Horizons ETFs offers a broadly diversified family of 76 exchange traded funds. Our fund list includes solutions for investors of all experience levels to help them meet their investment objectives in a variety of market conditions.
What is unique about Horizons ETFs?
Horizons ETFs is the sole distributor of leveraged, inverse, inverse leveraged, and volatility ETFs in Canada, providing innovative investment tools that allow investors to profit or protect in bull and bear markets. Horizons ETFs also has the largest family of actively managed ETFs in Canada, with ETFs that offer exposure to equities, fixed income, covered call strategies and alternative strategies.
Horizons ETFs is launching a simulated trading competition on February 1st. Who is eligible to enter and how does it work?
The contest is open to Canadian residents who are 18 years of age and older. It starts at market open on February 1st, 2013, and provides an opportunity for investors to open a simulated trading account of $100,000 and invest in any combination of our 76 ETFs. The contest runs for four weeks. We have a grand prize of $10,000, a first runner-up prize of $5,000, a second runner-up prize of $1000, and four weekly prizes of $1,000. Participants are able to pre-register online now until Friday when the contest opens. We’ll be updating all participants regularly on weekly winners, both on the website and through email.
How can the competition help new, intermediate and experienced investors?
This competition is a great opportunity for investors of all experience levels to try their hand at investing using our ETFs. Investors can trade ETFs without putting up any of their own capital, and learn all about our various products and investment strategies—from our index, commodity, currency and equity ETFs, to our actively managed, leveraged, inverse, and inverse leveraged ETFs—and how they can benefit their portfolio.
Recently we have been hearing more about Actively Managed ETFs.What exactly is an Actively Managed ETF?
Similar to a traditional mutual fund, an actively-managed exchange traded fund is an ETF with a designated portfolio manager making decisions on the underlying portfolio, with the investment objective of outperforming an index or benchmark. Actively managed ETFs are listed on a stock exchange, trade intra-day, offer better liquidity and can be a tax-efficient investment solution.
How is it different from a mutual fund?
An ETF is different from a mutual fund in that ETFs trade on a stock exchange throughout the day, offering greater liquidity, and can be more tax-efficient. They can also help investors save on fees. Lower fees can lead to higher returns, especially over long investment time-horizons.
Describe the Horizons family of ETFs in terms of how long they’ve been around, new ETF launches etc.
Horizons was the first ETF company in Canada to launch leveraged ETFs. In January 2007, the Horizons S&P/TSX 60 Bull Plus (HXU) and Horizons S&P/TSX 60 Bear Plus ETF (HXD) were launched. Since then, we have built a reputation as innovators, bringing to market ETF solutions for Canadian self-directed, advisor led and institutional investors. Our family of Actively Managed ETFs, which includes fixed income, equity income, equity and an alternative category, now has an award winning ETF member too! Our Horizons Morningstar Hedge Fund Index ETF recently won the global 2012 William F. Sharpe Indexing Achievement Award for ETF Innovation of the Year.
The contest is only about trading Horizon ETFs. What is the best way for investors and participants to learn and understand more about Horizons ETFs?
The best way for investors and participants to learn and understand more about our ETFs is to start with our website. We have a vast array of educational tools and resources, on both the website and the contest site, that detail all the different ETF strategies we offer at Horizons ETFs. If you have questions, we welcome inquiries through our website at any time.
What is so special about this contest and why does it excite you?
This contest is special because it allows investors to try our products with no capital investment. It excites me because it gives people the chance to try our ETFs, execute buy and sell orders, and experiment with different investment strategies. Last year we had over 1,000 people in the contest and winners from across Canada.
What is the greatest risk factor?
The best part of this contest is that there is no risk. You can sign up, and at 9:30am on February 1st you can make your first trade using virtual dollars. Maybe you’ll be one of our winners!
Is there anything else you would like to say?
In summary, at Horizons ETFs we believe that every investor, regardless of portfolio size, deserves access to the best money managers and the best investment strategies at the best possible price. Our corporate mission is to deliver on this belief each and every day.
Disclosure: Horizons ETFs is a Stockhouse client.