TORONTO – December 30, 2022 – Horizons ETFs Management (Canada) Inc. (“Horizons ETFs”) is announcing that the three basis point (0.03%) management fee rebate on the Horizons S&P/TSX 60™ Index ETF (“HXT”) will expire as of the close of business on December 31, 2022. As a result, effective January 1, 2023, the annual management fee of HXT will be seven basis points (0.07%), plus applicable sales taxes.
HXT seeks to replicate, to the extent possible, the performance of the S&P/TSX 60™ Index (Total Return) (the “Underlying Index”), net of expenses. The Underlying Index is designed to measure the performance of the large-cap market segment of the Canadian equity market. Launched in September 2010, HXT is the oldest and largest ETF within Horizons ETFs’ family of tax-efficient Total Return Index (TRI) ETFs.
Unlike a traditional physical replication ETF, which typically purchases the securities found in the relevant index in the same proportions as the index, HXT currently uses a synthetic structure that doesn’t buy the securities of the index directly. Instead, HXT receives the total return of the applicable index by entering into Total Return Swap agreements with one or more of the Canadian banks, which provide HXT with the total return of the Underlying Index.
For more information about HXT, please visit: www.HorizonsETFs.com/HXT
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 $22 billion of assets under management and 107 ETFs listed on major Canadian stock exchanges.
For all inquiries:
Please contact Horizons ETFs at 1-866-641-5739 (toll-free) or (416) 933-5745
Commissions, management fees and expenses all may be associated with an investment in exchange traded products (the “Horizons Exchange Traded Products”) managed by Horizons ETFs Management (Canada) Inc. The Horizons Exchange Traded Products are not guaranteed, their values change frequently and past performance may not be repeated. The prospectus contains important detailed information about the Horizons Exchange Traded Products. Please read the relevant prospectus before investing.
Certain statements may constitute a forward-looking statement, including those identified by the expression “expect”, “anticipate” and similar expressions (including grammatical variations thereof). The forward-looking statements are not historical facts but reflect the author’s current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking statements. These forward-looking statements are made as of the date hereof and the authors do not undertake to update any forward-looking statement that is contained herein, whether as a result of new information, future events or otherwise, unless required by applicable law.
Horizons Total Return Index ETFs (“Horizons TRI ETFs”) are generally index-tracking ETFs that use an innovative investment structure known as a Total Return Swap to deliver index returns in a low-cost and tax-efficient manner. Unlike a physical replication ETF that typically purchases the securities found in the relevant index in the same proportions as the index, most Horizons TRI ETFs use a synthetic structure that never buys the securities of an index directly. Instead, the ETF receives the total return of the index through entering into a Total Return Swap agreement with one or more counterparties, typically large financial institutions, which will provide the ETF with the total return of the index in exchange for the interest earned on the cash held by the ETF. Any distributions which are paid by the index constituents are reflected automatically in the net asset value (NAV) of the ETF. As a result, the Horizons TRI ETF receives the total return of the index (before fees), which is reflected in the ETF’s share price, and investors are not expected to receive any taxable distributions. Certain Horizons TRI ETFs (Horizons Nasdaq-100 ® Index ETF and Horizons US Large Cap
Index ETF) use physical replication instead of a total return swap. The Horizons Cash Maximizer ETF and Horizons USD Cash Maximizer ETF use cash accounts and do not track an index but rather a compounding rate of interest paid on the cash deposits that can change over time.
Horizons S&P/TSX 60™ Index ETF (“HXT”) is not sponsored, endorsed, sold or promoted by Standard & Poor’s and its affiliates (“S&P Group”) or by the TSX and its affiliates (the “TSE”). S&P Group and TSE make no representation, condition or warranty, express or implied, to the owners of HXT or any member of the public regarding the advisability of investing in securities generally or in HXT particularly or the ability of any Underlying Index to track general stock market performance. S&P Group’s and TSE’s only relationship to the Manager is the licensing of certain trademarks and trade names and of the Underlying Index, which are determined, composed and calculated by S&P Group and/or the TSE without regard to the Manager or HXT. S&P Group and the TSE have no obligation to take the needs of the Manager
or the owners of HXT into consideration in determining, composing or calculating any Underlying Index. S&P Group and the TSE are not responsible for and have not participated in the determination of the prices and amounts of HXT or the timing of the issuance or sale of HXT or issued or in the determination or calculation of the equation by which HXT are to be converted into cash. S&P Group and TSE have no obligation or liability in connection with the administration, marketing or trading of HXT.
S&P GROUP AND THE TSE DO NOT GUARANTEE THE ACCURACY AND/OR THE COMPLETENESS OF THE UNDERLYING INDEX OR ANY DATA INCLUDED THEREIN AND S&P GROUP AND THE TSE SHALL HAVE NO LIABILITY FOR ANY ERRORS, OMISSIONS, OR INTERRUPTIONS THEREIN. S&P GROUP AND THE TSE MAKE NO WARRANTY OR CONDITION, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY THE MANAGER, OWNERS OF THE ETF, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE UNDERLYING INDEX OR ANY DATA INCLUDED THEREIN. S&P GROUP AND THE TSE MAKE NO EXPRESS OR IMPLIED WARRANTIES OR CONDITIONS, AND EXPRESSLY DISCLAIM ALL WARRANTIES OR CONDITIONS OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE UNDERLYING INDEX OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL S&P GROUP OR THE TSE HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS), RESULTING FROM THE USE OF THE UNDERLYING INDEX OR ANY DATA INCLUDED THEREIN, EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.