Q&A Interview with Horizons ETFs President Mr. Howard Atkinson
Tell me about Horizons ETFs.
HA: Horizons ETFs offers a broadly diversified family of 73 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?
HA: 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 all market types. Horizons ETFs also has the largest family of actively managed ETFs in Canada, offering exposure to equities, fixed income, covered call strategies and alternative investments.
Horizons ETFs is launching its fourth simulated trading competition on May 20, 2014. Who is eligible to enter and how does it work?
HA: The fourth Biggest Winner Trading Competition is open to Canadian residents who are 18 years of age or older. It starts at 9:30 a.m. ET on May 20, 2014, and runs for six weeks until 4:00 p.m. ET on June 27, 2014. There will be a grand prize of $7,500 for the competitor with the highest six-week cumulative return. $2,500 will be awarded to the runner-up, and six weekly prizes of $500 each will be offered to competitors with the six best single weekly returns. Participants are able to register online now and throughout the contest. We’ll be updating all participants regularly on weekly winners, both on the website and through emails.
How can the competition help new, intermediate and experienced investors?
HA: This competition is a great opportunity for investors of all experience levels to try their hand at investing using our ETFs in real market situations. Investors can trade our ETFs without putting up any real money, 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.
How is an ETF different from a mutual fund?
HA: ETFs are different from mutual funds in that they trade on a stock exchange throughout the day, offer
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.
Recently we have been hearing more about Actively Managed ETFs. What exactly is an Actively Managed ETF?
HA: Similar to a traditional mutual fund, an actively managed exchange traded fund is an ETF with a designated investment manager making decisions on the underlying portfolio, with the objective of outperforming an index or benchmark.
Describe the Horizons family of ETFs in terms of how long they’ve been around, new ETF launches, etc.
HA: Horizons was the first ETF company in Canada to launch leveraged ETFs. In January 2007 the
Horizons S&P/TSX 60 Bull Plus ETF (
TSX: T.HXU,
Stock Forum) and
Horizons S&P/TSX 60 Bear Plus ETF (
TSX: T.HXD,Stock Forum) were launched. Since then, we’ve built a reputation as innovators, bringing ETF solutions to market for Canadian self-directed, advisor-led and institutional investors. Our
Horizons Morningstar Hedge Fund Index ETF (
TSX: T.HHF,
Stock Forum) won the global 2012 William F. Sharpe Indexing Achievement Award for ETF Innovation of the Year.
Horizons Active Floating Rate Bond ETF (
TSX: T.HFR,
Stock Forum) won best fixed income ETF at the 2013 Morningstar Awards.
We always look for opportunities to bring to market products with lower costs, reduced potential for tracking error and more tax efficiency. We accomplished these goals with the
Horizons S&P/TSX 60™ Index ETF (
TSX: T.HXT,
Stock Forum) and the
Horizons S&P 500® Index ETF (
TSX: T.HXS,
Stock Forum), and investors were urging us to do the same with three of Canada’s most important sector indices: financials, energy, and fixed income.
In September 2013 we launched two new ETFs that provide investors with the lowest-cost ETF exposure to the financials and energy sectors of the Canadian stock market. The
Horizons S&P/TSX Capped Financials Index ETF (
TSX: T.HXF,
Stock Forum) and the
Horizons S&P/TSX Capped Energy Index ETF (
TSX: T.HXE,
Stock Forum) use the same innovative total return swap structure as HXT. Most recently, we launched Canada’s first fixed income total return swap ETF, HBB.
What is the best way for investors and participants to learn and understand more about Horizons ETFs?
HA: 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 our main website and on the Biggest Winner Competition site, which 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?
HA: This contest is special because it allows investors to learn about 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. Our previous Biggest Winner Competition in October 2013 had 1,400 participants and winners from across Canada. We are also thrilled that National Bank Direct Brokerage is once again the exclusive sponsor of the competition.
What is the greatest risk factor?
HA: The best part of this contest is that there is no risk. You can sign up, and at 9:30 a.m. ET on May 20th you can make your first trade using fantasy dollars. Maybe you’ll be one of our winners!
Is there anything else you would like to say?
HA: 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.
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.
For more information about Horizons ETFs, please visit https://www.horizonsetfs.com
To register for The Biggest Winner 4, please visitthebiggestwinner.stocktrak.com
Disclosure: Horizons ETFs is a Stockhouse client.