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An ETF for every investor.

HBNK

Horizons Equal Weight Banks Index ETF

Price
$20.75
$-0.21
-1.00%
NAV
$20.9449
$0.0880
0.42%

Benchmark

Sector Equity

Fact Sheet
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SPAY

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

Price
$27.04
$0.10
0.37%
NAV
$27.0305
$0.0888
0.33%

Active

Fixed Income

Fact Sheet
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CASH

Horizons High Interest Savings ETF

Price
$50.17
$0.01
0.02%
NAV
$50.1421
$0.0066
0.01%

Benchmark

Fixed Income

Fact Sheet
Learn more about CASH
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Scenario 2

High rate volatility

In periods of elevated rate volatility, the option premiums are expected to increase as options are predominantly priced by volatility. However, this also increases the chance of an adverse price movement. Thus, the base “straddle” can be evolved into what’s known as a “strangle”. This is a similar option strategy where both calls and puts are shorted in equal proportions, but the strike prices start to diverge away from each other. This reduces the risk of being called away or put-too, which is needed given the increasingly uncertain environment. In periods of very high volatility, the PM can also reduce the coverage percentage, as the increased premiums offset the need for higher exposure to puts and calls.