Horizons ETFs Management has launched the Horizons Managed Multi-Asset Momentum ETF (HMA), the first actively managed ETF in Canada to use momentum-based investing to target multiple global asset classes.
Units of the ETF will begin trading today on the Toronto Stock Exchange (TSX) in Canadian dollars under the ticker symbols HMA (Class E units) and HMA.A (Advisor Class units).
Sub-advised by Landry Investment Management Inc (Landry), HMA will seek long-term returns by providing exposure to selected global asset classes on a risk-adjusted basis, primarily through investments in ETFs. In allocating HMA's portfolio, Landry selects the top ranked global asset classes, out of a current universe of 16; which include in part, Canadian and US equities, emerging market equities, US and Canadian bonds, real estate investment trusts, and gold.
Momentum investing refers to the investment strategy of seeking to capitalise on existing trends in a marketplace. For example, if a certain index or security is trending up, according to a specific characteristic, then a momentum investor believes that additional gains can be made.
"Landry uses a proprietary price momentum model to target top performing global asset classes," says Howard Atkinson (pictured), President of Horizons ETFs. "HMA seeks to give Canadian investors optimal risk-adjusted exposure, by not only capturing strong pricing uptrends, but also having a strong focus on risk management, such as moving to cash if there are no observable investment opportunities."
Landry was founded in 2002 by veteran investor Jean-Luc Landry, who wanted to make momentum-based investment portfolios more accessible to institutional investors and private clients. With the launch of HMA we can now add retail investors to this list.
"We are very excited about partnering with Horizons ETFs to launch the first actively managed global multi-asset momentum ETF," says Landry. "We look at momentum investing as a way to capitalise on long-term uptrends and minimise the impact of market drawdowns, and HMA is an opportunity for investors to access our model in the liquid, low-cost ETF structure."
While Canada makes up approximately 3 per cent to 4 per cent of the world's total market capitalisation, per the MSCI All Country World Index, it is well known that many Canadian investors express a 'home bias' and are typically overweight financial and commodity asset classes in their portfolios.
"HMA can provide investors with diversified access to global asset classes. By using the robust Landry model for ranking global assets, HMA's investors can reduce the concentration risk from being overly invested in domestic markets," adds Atkinson.