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Horizons ETFs reduces management fee for Black Swan ETFs


Horizons ETFs Management (Canada) and its affiliate AlphaPro Management are changing the management fee structure of Horizons Canadian Black Swan ETF (HUT) and Horizons US Black Swan ETF (HUS).

The change, which is retroactive to 1 November 2014, reduces the annual management fees of the Class E Units and Advisor Class Units of the ETFs so that the management fees are as follows:
HUT – Class E Units – 0.70 per cent of the net asset value
HUT.A – Advisor Class Units – 1.45 per cent of the net asset value
HUS.U – Class E Units – 0.70 per cent of the net asset value
HUS.V – Advisor Class Units – 1.45 per cent of the net asset value 
Previously, the annual management fees were 0.95 per cent in respect of the Class E Units of each ETF and 1.70 per cent in respect of the Advisor Class Units of each ETF.  The ETFs' management fees are calculated and accrued daily and payable monthly in arrears.
The Black Swan ETFs seek to capture the upside gains of the applicable stock index while using various option strategies to seek to avoid losses in the event of a significant and sudden market decline. 
"History has shown us that bull markets do not last forever, stock market crashes and corrections do happen, as we observed most recently in 2008/2009.  Timing when to get out of the stock market can be very difficult. For this reason many long term stock investors would rather stay invested in stocks with some sort of hedging protection," says Howard Atkinson, president of Horizons ETFs. "The Black Swan ETFs use various put-option strategies that seek to avoid losses if the market declines by more than 10 per cent in a 30 day period. This would allow investors to stay invested in Canadian or US stocks, while also providing some protection from steep market declines."  
In September Horizons ETFs reduced the annual management fee for Horizons S&P/TSX 60 Equal Weight Index ETF (HEW) from 0.50 per cent to 0.40 per cent.

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