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An ETF for every investor.

HBNK

Horizons Equal Weight Banks Index ETF

Price
$20.85
$0.20
0.97%
NAV
$20.6334
$-0.0787
-0.38%

Benchmark

Sector Equity

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SPAY

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

Price
$27.01
$0.01
0.04%
NAV
$27.0038
$-0.0679
-0.25%

Active

Fixed Income

Fact Sheet
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CASH

Horizons High Interest Savings ETF

Price
$49.99
$-0.18
-0.36%
NAV
$50.1748
$0.0065
0.01%

Benchmark

Fixed Income

Fact Sheet
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Scenario 3

Directional Rate Movement

From the textbook, a straddle or strangle strategy is written in equivalent proportions of calls or puts. However, in practice, the probabilities of outcomes are rarely equivalent, which requires the introduction of “skew” to either scenario 1 or 2. In the event of an anticipated yield drop, the percentage of written calls would be reduced and the exposure to puts would be increased. The purpose of this is to maintain a desired level of income, and adjust for an impending duration move given interest rate expectations. In the event of a rate hike, the opposite function could occur instead of increasing calls and reducing put exposure.