Who is BetaPro Management Inc.?
What are double inverse ETFs?
Are the HBP ETFs RSP Eligible?
Do the HBP ETFs pay distributions?
How do I begin making markets in HBP ETFs?
What is the difference between NAV and Price?
Can I buy HBP ETFs if I don't live in Canada?
How do the effects of compounding and rebalancing affect my returns?
What is my risk for losses considering the HBP ETFs are leveraged?
How do the HBP ETFs maintain liquidity?
What benchmarks do the HBP ETFs track?
What types of strategies use the HBP ETFs?
Are the HBP commodity ETFs currency hedged?
Why do the HBP ETFs use futures instead of investing in physical commodities?
Where can I go to learn more about investing in commodities?
What is contango/backwardation?
Who can I contact to learn more about HBP ETFs?
How can I participate in the Quarterly Advisor Sentiment Survey?
How can I sign up to receive quarterly news about Horizons BetaPro?
How do I obtain a copy of the HBP ETFs prospectus?
BetaPro Management Inc. is Canada's sole provider of leveraged and inverse leveraged mutual funds and ETFs allowing investors to profit or
protect in bull and bear markets. BetaPro Management Inc. is an associate of Jovian Capital Corporation, a publicly traded financial services
holding company with approximately $15B in client assets.
Double inverse ETFs are designed to return that is two times the opposite of the underlying benchmark. If the
benchmark goes up 1% in a day, the ETF will go down 2%. Conversely, if the underlying benchmark goes down
1% in a day, the ETF should go up 2% on that day.
All HBP ETFs are RSP eligible.
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The ETFs are entitled to pay distributions annually and they are expected to be predominantly capital gains in nature.
If you are interested in making markets in the HBP ETFs, please contact the manager directly at info@betapro.ca
Coming soon…
Those living outside of Canada are able to purchase HBP ETFs as long as they have access to trading on the
Toronto Stock Exchange.
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As a result of the typical stated objective of beta funds to realize a multiple (for HBP ETFs, 2x or -2x) of the daily returns of a given benchmark index, an investor’s investment will experience the effects of compounding.
• For example, if $100 is invested in an ETF and the underlying index rises 1% on the next day, the investor would earn $2. On the following day, $102 will be invested to achieve the same investment objective. As such, as the ETF rises on consecutive days, the investor’s capital being invested to realize the daily return of the underlying benchmark index will increase each day, resulting in a "compounding" effect.
• Conversely, if $100 is invested in an ETF and the underlying index declines 1% on the next day, the investor would lose $2. On the following day, $98 will be invested to achieve the same investment objective. As such, as the ETF drops on consecutive days, the investor’s capital being invested to realize the daily return of the underlying benchmark index will decrease each day, resulting in a "compounding" effect.
• This latter phenomena explains why the investment is of limited risk
The HBP ETFs have limited risk. You are only subject to losing your original investment. Because the HBP
ETFs are rebalanced daily, you cannot lose more that you put in. For examples of rebalancing, please see the prospectus.
ETFs maintain liquidity on three levels:
• They are listed on an exchange
• Market makers are present and obligated to provide a minimum amount of liquidity by providing bid/ask spreads
that keep the ETFs in line with their underlying instruments.
• The ETF manager is able to create and redeem units at any time depending on the liquidity of the underlying instruments
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The HBP ETFs track a number of key benchmarks across different asset classes. To view the current line-up please
see our
HBP ETF Guide
To learn more about strategies involving the HBP ETFs please visit the Strategies section of our website
The following HBP ETFs are currency hedged:
HBP NYMEX Crude Oil Bull + ETF
HBP NYMEX Crude Oil Bear + ETF
HBP NYMEX Gas Bull + ETF
HBP NYMEX Gas Bear + ETF
HBP COMEX Gold Bull + ETF
HBP COMEX Gold Bear + ETF
HBP DJ-AIG Agricultural Grains Bull + ETF
HBP DJ-AIG Agricultural Grains Bear + ETF
The above are denominated in Canadian dollars although their underlying benchmarks are priced
in U.S. dollars. Any U.S. dollar gains or losses as a result of the fund's investment will be hedged back to
the Canadian dollar to the fullest extent possible. The HBPETFs are denominated in CAD but provide daily
commodity returns in USD.
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The Horizons BetaPro ETFs use futures instead of investing in physical commodities or "spot prices"
because of additional considerations such as storage costs and liquidity constraints among others.
The futures prices should take these costs into account and the returns of
both investments should be the same in an efficient market.
To learn more about investing in commodities please visit our
Education page
To learn more about investing in commodities please visit our
Education page
To learn more about contango/backwardation, please see "Investing in Commodity Funds and ETFs"
To find out more about HBP Funds contact your advisor or us directly at 416 933 5745
(1 866 641 5739 toll free) or info@betapro.ca
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If you are an advisor and are interested in participating in the HBP Quarterly Advisor Sentiment
Survey, please contact us at 416 933 5745 (1 866 641 5739 toll free) or info@betapro.ca
*Please note, participation in the Survey is restricted to investment professionals.
To receive the Horizons BetaPro Quarterly Newsletter please contact us at 416 933 5745
(1 866 641 5739 toll free) or
info@betapro.ca
*Please Note, the newsletter is available to investment professionals only.
An electronic copy of the HBP ETFs prospectus is available
here
To receive a print copy, please contact us at 416 933 5745 (1 866 641 5739 toll free) or
info@betapro.ca
