UTIL offers direct exposure to TSX-listed dividend-paying utility, pipeline, and telecom companies
TORONTO – August 10, 2022 – Horizons ETFs Management (Canada) Inc. (“Horizons ETFs”) is pleased to announce the upcoming launch of the Horizons Canadian Utility Services High Dividend Index ETF (“UTIL” or the “ETF”). Units of the ETF will begin trading today on the Toronto Stock Exchange (“TSX”) under the ticker symbol UTIL.
With UTIL, investors can gain Canadian exposure to three major segments of the utility services sector: utilities, pipelines and telecommunications. These segments have historically functioned as defensive industries, offering investors relative stability and consistent dividends, even during periods of volatility and bear markets.
“With rising inflation, investors are increasingly looking towards dividend and yield-focused strategies to outpace costs and stay ahead in their portfolios. However, with the spectre of a potential recession on the horizon, investors are also looking for these income-producing mandates to provide some protection from a broader market decline,” said Steve Hawkins, President and CEO of Horizons ETFs. “Traditionally, utility services have been regarded as a relatively defensive sector of the stock market, as their services – including electricity, oil and internet – are always necessary.”
UTIL seeks to replicate, to the extent possible, the performance of an index that seeks to provide exposure to the performance of TSX-listed high dividend paying utility services companies. Currently, UTIL seeks to replicate the performance of the Solactive Canadian Utility Services High Dividend Index (the “Index”), net of expenses.
|ETF Name||Ticker||Management Fee*|
|Horizons Canadian Utility Services High Dividend Index ETF||UTIL||0.50%|
The Index is designed to provide exposure to TSX-listed high dividend paying utility services companies. In order to be eligible for inclusion in the Index, a company will be classified as primarily operating in one of the following index categories: “Utilities,” “Pipelines,” or “Telecommunications”.
Index constituent issuers will be drawn from publicly listed companies headquartered in Canada, and may include small, mid, and large-capitalization companies. Companies must also meet a minimum yield requirement to be eligible for inclusion in the Index. The Index is rebalanced to equal-weighted on a semi-annual basis.
“UTIL goes beyond traditional utility strategies as the ETF portfolio provides exposure to critical utility services in the energy pipeline and telecommunications sector,” said Mr. Hawkins. “Historically, the utility services sector has offered a higher level of dividend income than the broader S&P/TSX Composite. Not only do we think this expansion beyond traditional utilities improves diversification for investors but it might also improve the income generated by the ETF.”
UTIL closed its initial offering of units to its designated broker at the close of business on August 9, 2022, and will begin trading today on the TSX when the market opens this morning.
For further information about UTIL, please visit: www.HorizonsETFs.com/UTIL
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 over $22 billion of assets under management and 105 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
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This communication is intended for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to purchase exchange traded products (the « Horizons Exchange Traded Products ») managed by Horizons ETFs Management (Canada) Inc. and is not, and should not be construed as, investment, tax, legal or accounting advice, and should not be relied upon in that regard. Individuals should seek the advice of professionals, as appropriate, regarding any particular investment. Investors should consult their professional advisors prior to implementing any changes to their investment strategies. These investments may not be suitable to the circumstances of an investor.
The financial instrument is not sponsored, promoted, sold, or supported in any other manner by Solactive AG nor does Solactive AG offer any express or implicit guarantee or assurance either with regard to the results of using the Index and/or Index trade name or the Index Price at any time or in any other respect. The Index is calculated and published by Solactive AG. Solactive AG uses its best efforts to ensure that the Index is calculated correctly. Irrespective of its obligations towards the Issuer, Solactive AG has no obligation to point out errors in the Index to third parties including but not limited to investors and/or financial intermediaries of the financial instrument. Neither publication of the Index by Solactive AG nor the licensing of the Index or Index trade name for the purpose of use in connection with the financial instrument constitutes a recommendation by Solactive AG to invest capital in said financial instrument nor does it in any way represent an assurance or opinion of Solactive AG with regard to any investment in this financial instrument.