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Rebalancing Tool

As outlined in our prospectus, the investment objective of each of the HBP Funds & ETFs is to track two times the daily or inverse daily performance of their respective benchmarks. In order to provide NON recourse leveraged exposure and achieve this investment objective the funds are rebalanced daily.

This process results in the funds being rebalanced at the close of each trading day so that the market exposure for the next day is only two times the then current assets of the fund. If a fund has positive performance on a given day this will result in the market exposure being increased and vice versa. Thus, also resulting in compounding.

If an investor would like to minimize the effects of compounding and have their investment track more closely to 2x/-2x the PERIOD return of the underlying benchmark the investor should rebalance their holdings. More frequent rebalancing will result in period investment returns more closely matching 2x/-2x the benchmark.

The following tools calculate the approximate amount of additional (or reduced) investment required in order for the investor to maintain the equivalent investment ratio as the inception of their investment. Input the required information into the yellow cells only. The rebalancing calculator will determine the necessary rebalance amount required.

HBP Rebalancing BULL Tool  
Initial Investment $
Initial Exposure $
Index Move since time of investment   %
Current Value of investment $
Current Exposure $
Rebalancing Required $


HBP Rebalancing BEAR Tool  
Initial Investment $
Initial Exposure $
Index Move since time of investment   %
Current Value of investment $
Current Exposure $
Rebalancing Required $


Disclaimer: This analysis is for illustration purposes only. Exchange Traded Funds are not guaranteed, their values change frequently and past performance may not be repeated. Rebalancing consideration is more important if volatility in the underlying index or commodity is higher and anticipated hold period is longer. Please read the prospectus before investing.

© 2010 Horizons BetaPro Management Inc. Horizons BetaPro Privacy of Information

Horizons BetaPro Bull Plus and Bear Plus Exchange Traded Funds ("HBP Plus ETFs") use leveraged investment techniques that magnify gains and losses and result in greater volatility in value. HBP Plus ETFs are subject to leverage risk, and Horizons BetaPro Single Exchange Traded Funds ("HBP Single ETFs"), Horizons BetaPro Inverse Exchange Traded Funds ("HBP Inverse ETFs") and HBP Plus ETFs (collectively, “HBP ETFs”) are subject to aggressive investment risk and price volatility risk, which are described in the HBP ETF’s prospectus. Each HBP Plus ETF seeks a return that is either 200% or -200% of the performance of a specified underlying index, commodity or benchmark (the "target") for a single day.  Each HBP Single ETF or HBP Inverse ETF seeks a return that is 100% or - 100%, respectively, of the performance of a specified underlying target. Due to the compounding of daily returns, an HBP Plus ETF’s or HBP Inverse ETF’s, returns over periods other than one day will likely differ in amount and possibly direction from the performance of the specified underlying target for the same period. Investors should monitor their holdings, as frequently as daily, to ensure that they remain consistent with their investment strategies. Commissions, management fees and expenses all may be associated with HBP ETFs. HBP ETFs are not guaranteed, their values change frequently and past performance may not be repeated. All trademarks/service marks are registered by their respective owners and licensed for use by BetaPro Management Inc. and none of the owners thereof or any of their affiliates sponsor, endorse, sell, promote or make any representation regarding the advisability of investing in HBP ETFs. Complete trademark and servicemark information is available at www.HBPETFs.com/trademark.  Please read the prospectus before investing.