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An ETF for every investor.

HBNK

Horizons Equal Weight Banks Index ETF

Price
$20.75
$-0.07
-0.34%
NAV
$20.8369
$0.1255
0.61%

Benchmark

Sector Equity

Fact Sheet
Learn more about HBNK

SPAY

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

Price
$26.98
$-0.04
-0.15%
NAV
$27.0189
$0.0754
0.28%

Active

Fixed Income

Fact Sheet
Learn more about SPAY

CASH

Horizons High Interest Savings ETF

Price
$50.13
$0.01
0.02%
NAV
$50.1224
$0.0262
0.05%

Benchmark

Fixed Income

Fact Sheet
Learn more about CASH
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Gold recently hit a record high and it is up 10.43% YTD as at November 30, 2023. Bullion prices have since fallen back below US$2000/oz.

Key drivers supporting gold

Competitor Overview and Ways to Invest in Gold

Exposure to gold can be achieved by investing in physical gold, directly or indirectly, or by investing in Gold equities. Gold producers may outperform Gold bullion in gold bull market cycles due to operating leverage due to their fixed cost base. If elevated gold prices persist, investors can participate in growth potential resulting from higher revenues due to elevated production at higher prices. Covered Call strategies have been popular in 2023, and GLCC, the Horizons Gold Producer Equity Covered Call ETF can be an effective way to get exposure to the largest and most liquid North American listed gold producers while also generating income through the use of a dynamic call writing approach.

The table below show an overview of GLCC’s strong outperformance relative to competitors (CGXF and XGD), both YTD and since the product revamp in 2022.  

Annualized Performance – November 30, 2023 (%)

Ticker 1 Month 3 Months 6 Months YTD 1 Year Since Revamp 3 Years 5 Years 10 Years Common Inception 2019-01-11 Since Inception Inception Date
Horizons Gold Producers EQ Cov Call ETF GLCC 8.70 10.37 2.17 9.60 11.03 11.59 -0.01 12.24 6.28 -1.19 -1.61 2011-04-11
CI Gold + Giants Covered CII ETF Comm CGXF 5.41 4.72 -1.82 3.37 4.7 8.02 1.01 8.04 2.88 -1.42 -1.42 2011-06-01
iShares S&P/TSX Global Gold ETF XGD 8.01 5.82 -0.66 5.57 6.41 5.18 -0.72 13.26 6.8 -1.48 -1.48 2001-03-23

Source: Morningstar, December 5, 2023

The indicated rates of return are the historical annual compounded total returns including changes in per unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution, or optional charges or income taxes payable by any securityholder that would have reduced returns. The rates of return shown in the table are not intended to reflect future values of the ETF(s) or future returns on investment in the ETF(s).  For the Horizons Gold Producer Equity Covered Call ETF, performance prior to June 27, 2022, reflects the performance of the previous portfolios. Only the returns for periods of one year or greater are annualized returns.

This chart shows the growth of CAD$100 if it was invested in GLCC, CGXF and XGD since the product revamp – GLCC is the clear winner.  

Growth chart of CAD$100 if it was invested in GLCC, CGXF and XGD since the product revamp, GLCC is the clear winner.

Source:  Morningstar, as at December 5, 2023

The Growth of $100 chart above is based on the historical daily net asset value per unit (NAV) of the ETF and represents the value of an initial investment into the ETF of $100 since its revamp, on a total return basis. Distributions, if any, are treated as reinvested, and it does not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder. The NAV values do contemplate management fees and other fund expenses where paid by the fund. The chart is not a performance chart and is not indicative of future value which will vary.

For more risk-averse investors, HGY, the Horizons Gold Yield ETF can be a strong candidate due to lower volatility and since it partially eliminates the opportunity cost of holding gold in a higher interest rate environment. Unlike other physical Gold ETFs, HGY pays an attractive monthly yield with the trade-off being less potential upside capture.

Below is an overview of the funds referenced above with their product features.

Horizons Gold Producer Equity Covered Call ETF CI Gold+ Giants Covered Call ETF iShares S&P/TSX Global Gold Index ETF Horizons Gold Yield ETF iShares Gold Bullion ETF
Ticker GLCC CGXF XGD HGY CGL
Management Fee 0.65% 0.65% 0.55% 0.60% 0.50%
Investment Objective The Horizons Gold Producer Equity Covered Call ETF seeks to provide, to the extent possible and net of expenses: (a) exposure to the performance of an index of equity securities of diversified North American listed gold producers (currently, the Solactive North American Listed Gold Producers Index) and (b) monthly distributions of dividend and call option income. To mitigate downside risk and generate income, GLCC will employ a dynamic covered call option writing program. The ETF’s investment objective is to provide Unitholders, through an actively managed portfolio, with (i) quarterly cash distributions, (ii) the opportunity for capital appreciation by investing on an equal weight basis in a portfolio of equity securities of at least the 15 largest gold and precious metals companies measured by market capitalization listed on a North American stock exchange, and (iii) lower overall volatility of returns on the portfolio than would be experienced by owning a portfolio of securities of such issuers directly by employing a covered call option writing program. The issuers included in the portfolio, which is based on their market capitalization, may be adjusted based on the Portfolio Manager’s view on the liquidity of the issuers’ equity securities and their related call options. The iShares S&P/TSX Global Gold Index ETF seeks to provide long-term capital growth by replicating the performance of the S&P/TSX Global Gold Index, net of expenses. The Horizons Gold Yield ETF seeks to provide Unitholders with: (i) exposure to the price of gold bullion hedged to the Canadian dollar, less HGY’s fees and expenses; (ii) tax-efficient monthly distributions; and (iii) in order to mitigate downside risk and generate income, exposure to a covered call option writing strategy. The iShares Gold Bullion ETF seeks to replicate the performance of the price of gold bullion, less fees and expenses.
Underlying Portfolio The Solactive North American Listed Gold Producers Index is a representation of securities that are active in the Gold Ore Mining Industry and listed in North America. Active

Investment Strategies:
CGXF invests in a portfolio of equity securities of at least the 15 largest gold and precious metals companies measured by market capitalization listed on a North American stock exchange. “Gold and precious metals companies” are generally producers or companies predominantly involved in the mining, fabrication, processing, marketing or distribution of metals, including gold, silver, platinum group and palladium, and diamonds.

The S&P/TSX Global Gold Index is designed to provide an investable index of global gold securities. Eligible Securities are classified under the GICS® Code 15104030 which includes producers of gold and related products, including companies that mine or process gold and the South African finance houses which primarily invest in, but do not operate, gold mines. SPDR® Gold Shares Gold Bullion
Weighting Methodology Weighted according to Share Class Market Capitalization. Then, a weight cap is applied for each INDEX COMPONENT by re-distributing any weight which is larger than 10.0% to the other INDEX COMPONENT proportionally in an iterative manner. Equal Weight Float-adjusted market cap weighted
Top Holdings (with weights) Gold Fields Ltd – ADR — 10.62%
Agnico Eagle Mines Ltd — 9.99%
Anglogold Ashanti Plc — 9.93%
Barrick Gold Corp — 9.84%
Newmont Corp — 9.3%
Kinross Gold Corp — 9.08%
Alamos Gold Inc Cl A — 7.19%
Pan American Silver Corp — 7.15%
Endeavour Mining PLC — 7.07%
B2Gold Corp — 5.27%
Harmony Gold Mining Co Ltd – ADR — 4.7%
Eldorado Gold Corp — 3.32%
SSR Mining Inc — 2.97%
Equinox Gold Corp — 2.11%
NovaGold Resources Inc — 1.73%
Gold Fields Ltd – ADR — 7.45%
Kinross Gold Corp — 7.15%
Alamos Gold Inc Cl A — 7.09%
AngloGold Ashanti Ltd — 7.06%
Endeavour Mining PLC — 7.03%
B2Gold Corp — 6.95%
Barrick Gold Corp — 6.78%
Wheaton Precious Metals Corp — 6.75%
Agnico Eagle Mines Ltd — 6.73%
Newmont Corp — 6.54%
Royal Gold Inc — 6.53%
SSR Mining Inc — 6.45%
Pan American Silver Corp — 6.14%
Franco-Nevada Corp — 5.91%
Sibanye Stillwater Ltd – ADR — 5.43%
Newmont — 20.02%
Barrick Gold Corp — 13.35%
Agnico Eagle Mines Ltd — 11.43%
Wheaton Precious Metals Corp — 9.51%
Franco Nevada Corp — 9.01%
Gold Fields Adr Representing Ltd — 5.68%
Anglogold Ashanti Plc — 3.43%
Royal Gold Inc — 3.38%
Kinross Gold Corp — 3.11%
Alamos Gold Inc Class A — 2.46%
Endeavour Mining — 1.86%
B2Gold Corp — 1.81%
Harmony Gold Mining Adr Representi — 1.41%
Eldorado Gold Corp — 1.14%
Osisko Gold Royalties Ltd — 1.13%
SPDR Gold MiniShares Trust ETF Gold Bullion
Covered Call Strategy Dynamic Percent-Written as at Oct 31, 2023: 24.45% At-the-money call options, targeting approximately 25%. Conservative covered call option writing strategy Percent-Written as at Oct 31, 2023: 33.11%
Distribution Frequency Monthly Quarterly Semi-Annually Monthly
Currency Hedging No Yes No Yes Yes

Source: Horizons ETFs Management (Canada) Inc. and respective fund issuer website, as at December 5, 2023

Snapshot

Ticker Morningstar Category Fund Size Management Fee MER 12 Month Yield Current Yield at NAV %
Horizons Gold Yield ETF Comm HGY Canada Fund Commodity 61,997,247.00 0.60 0.90 6.16 6.14
iShares Gold Bullion ETF (CAD-Hedge) CGL Canada Fund Commodity 715,158,764.00 0.50 0.55 0.00
LBMA Gold Price PM USD

 

Annualized Performance – November 30, 2023 (%)

Ticker 1 Month 3 Months 6 Months YTD 1 Year 3 Years 5 Years 10 Years Common Inception 2019-01-11 Since Inception Inception Date
Horizons Gold Yield ETF Comm HGY 2.1 3.48 2.9 8.11 10.96 2.63 7.5 2.61 0.33 0.33 2010-12-17
iShares Gold Bullion ETF (CAD-Hedge) CGL 1.75 4.54 3.1 11.12 14.72 3.72 9.48 3.88 2.19 3.87 2009-05-28
LBMA Gold Price PM USD 1.93 4.8 3.62 12.22 16.09 4.92 10.83 4.97 3.11 7.43 1968-04-01

Source: Morningstar, as at December 5, 2023

The indicated rates of return are the historical annual compounded total returns including changes in per unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution, or optional charges or income taxes payable by any securityholder that would have reduced returns. The rates of return shown in the table are not intended to reflect future values of the ETF(s) or future returns on investment in the ETF(s). Only the returns for periods of one year or greater are annualized returns.