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Horizons Equal Weight Banks Index ETF

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Horizons Short-Term U.S. Treasury Premium Yield ETF

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Horizons High Interest Savings ETF

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New ETFs offer monthly income backed by the creditworthiness of the Canadian and U.S. federal governments

TORONTO – April 14, 2023 – Horizons ETFs Management (Canada) Inc. (“Horizons ETFs” or the “Manager“) is pleased to announce the launch of two new ETFs: the Horizons 0-3 Month T-Bill ETF (“CBIL”), and the Horizons 0-3 Month U.S. T-Bill ETF (“UBIL.U” and together, the “ETFs”). Units of the ETFs will begin trading today on the Toronto Stock Exchange (“TSX“).

CBIL and UBIL.U are the first ETFs in Canada to provide respective exclusive exposure to Canadian and U.S. short-term federal Treasury Bills (“T-Bills”): federal government securities with maturities of one year or less. Across the fixed-income spectrum, T-Bills are generally considered to be amongst the lowest-risk investments available to investors, given that they are short-term securities backed by the creditworthiness of large federal governments.

ETF Name Ticker Investment Objective Management Fee* Initial Target Annualized Net Yield
Horizons 0-3 Month T-Bill ETF CBIL CBIL seeks to provide interest income through exposure to Government of Canada Treasury Bills with remaining maturities generally less than 3 months. 0.10% 4.23%
Horizons 0-3 Month U.S. T-Bill ETF** UBIL.U UBIL.U seeks to provide interest income through exposure to U.S. Treasury Bills with remaining maturities generally less than 3 months. 0.12% 4.25%

The ETFs will distribute the net income they generate from their T-Bill holdings to unitholders on a monthly basis. In doing so, the ETFs are anticipated to generate interest income that is in line with the yield on their respective short-dated T-Bills.

During volatile markets, factors like credit risk and term-to-maturity can be crucial considerations when building a resilient portfolio,” said Jasmit Bhandal, Interim President and CEO of Horizons ETFs. “Short-term treasuries, like the ones held in CBIL and UBIL.U, can offer investors consistent monthly income, backed by the creditworthiness of the Canadian and U.S. federal governments.” 

While T-Bills are available for public purchase, direct investment can potentially result in additional costs, like commissions, as well as requiring additional management to roll and purchase new T-Bills to maintain a desired exposure. With CBIL and UBIL.U, investors do not need to undertake any manual management, as the ETFs handle these processes while maintaining their respective maturity exposures between 0 to 3 months.

Unlike other savings vehicles, like Guaranteed Investment Certificates (“GICs”) or High-Interest Savings Accounts, which typically have minimum holding periods or investment amounts, CBIL and UBIL.U can be purchased or sold anytime throughout the trading day.  These ETFs also provide a comparable yield, with the initial target annualized net yield at launch for CBIL expected to be 4.23% and UBIL.U at 4.25%.

Increasingly, investors are seeking ways to hold cash in their portfolio, while taking advantage of higher interest rates to generate higher levels of income., said Jasmit Bhandal. “In our view, CBIL and UBIL.U provide exposure to very low-risk assets that provide investors with viable Canadian and U.S. dollar cash alternatives that offer both safety and an attractive monthly income.

While CBIL and UBIL.U are not covered by the Canada Deposit Insurance Corporation or the Federal Deposit Insurance Corporation in the U.S., T-Bills are respectively backed by the Government of Canada and the U.S. Government; neither of which have ever defaulted on their debt obligations. CBIL is offered in Canadian dollars, while UBIL.U is only offered in U.S. dollars.

The ETFs closed their initial offering of units to their designated broker and will begin trading today on the TSX when the market opens this morning.

About Horizons ETFs Management (Canada) Inc. (www.HorizonsETFs.com)
Horizons ETFs Management (Canada) Inc. is an innovative financial services company and offers one of the largest suites of exchange traded funds in Canada. The Horizons ETFs product family includes a broadly diversified range of solutions for investors of all experience levels to meet their investment objectives in a variety of market conditions. Horizons ETFs has more than $25 billion of assets under management and 108 ETFs listed on major Canadian stock exchanges. Horizons ETFs is a wholly owned subsidiary of the Mirae Asset Financial Group, which manages approximately $710 billion of assets across 13 countries around the world.

 For investor inquiries:
Contact Horizons ETFs at 1-866-641-5739 (toll-free) or (416) 933-5745
info@horizonsetfs.com

For media inquiries:
Contact Jonathan McGuire
Assistant Vice President, ETF Strategy
Horizons ETFs Management (Canada) Inc.
(647) 289-3324