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Horizons ETFs reintroduces leverage on HOU and HOD


Horizons ETFs Management has reintroduced leverage to the BetaPro Crude Oil Leveraged Daily Bull ETF (HOU) and the BetaPro Crude Oil Inverse Leveraged Daily Bear ETF (HOD). After the market close for crude oil futures (2:30pm EST) on 10 November, 2020, HOU will seek to deliver 1.5 times the daily performance, and HOD will seek to deliver 1.5 times the inverse (opposite) of the daily performance, of the Horizons Crude Oil Rolling Futures Index (the Underlying Index).

The investment objectives of the ETFs provide for up to two times (200 per cent) (HOU), and up to two times (200 per cent) the inverse (HOD), the daily performance of the Underlying Index.

Subject to negotiations with the counterparties, the Manager anticipates under normal market conditions to manage the leverage ratio to be as close to two times (200 per cent) as practicable, however the Manager can, at its sole discretion, change the leverage ratio based on the current market conditions for crude oil futures contracts at that time.

In accordance with the Manager’s assessment of the crude oil futures market, and the Manager’s negotiations with the ETFs’ counterparties, the Manager has determined that, as noted above, and until further public notice is provided by the Manager, HOU and HOD will provide 1.5 times, and -1.5 times respectively, the daily performance of the Underlying Index.  The Underlying Index is currently invested in the January 2021 crude oil contract and will roll into the February 2021 crude oil contract on 20 November, 2020.

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