Horizons ETFs Management (Canada) Inc - BetaPro S&P 500 VIX Short-Term Futures Daily Inverse ETF Class A BTTPF

RE:RE:Only Velocity Shares Effected

[jicoop]

for HVI ..

Open-ended mutual fund trust which intends to provide investment results which correspond to the inverse of the performance of the S&P 500 VIX Short-Term Futures Index™. The proceeds of the initial offering of units have been invested in a Canadian equity portfolio which is the subject of a forward contract with a Canadian chartered bank or its affiliate such that the price payable by the bank or affiliate for the portfolio is based on the inverse of the performance of the Index. The forward contract may be pre-settled from time to time to pay for redemptions of units, market purchases of units or other expenses of the ETF. Investments are made in equity securities and/or other financial instruments (including derivatives) which it is believed in combination will replicate the inverse of the performance of the Index. The ETF intends to hedge any U.S. dollar investment gains or losses back to the Canadian dollar to the extent possible. The S&P 500 VIX Short-Term Futures Index™ was created with the intention of offering exposure to market volatility through publicly-traded futures markets, specifically by reflecting the returns that are potentially available through an unleveraged investment in first and second delivery month VIX futures contracts. These futures contracts are based on the CBOE Volatility Index or VIX Index, which is a proprietary measurement of implied and expected volatility of the S&P 500® over a 30-day period.


CBOE is Chicago Board Options Exchange.