Horizons launches Canadian Equity Index ETF

Horizons ETFs Management (Canada) Inc. has partnered with Inovestor Inc. to launch the Horizons Inovestor Canadian Equity Index ETF (INOC). The ETF is the first in Canada to offer low-cost exposure to the Nasdaq Inovestor Canada Index.

Units of the ETF will begin trading today on the TSX.

The Nasdaq Inovestor Canada Index is comprised of 25 equal-weighted, large-capitalization, Canadian-listed companies. All are firms that trade at a reasonable price with the best rankings in Inovestor’s StockPointer stock selection model.

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INOC uses a six-step investment process within the ETF that begins with screening Canadian stocks based on a metric called Economic Profit – a form of residual wealth that occurs when a company pays back its cost of capital from its operating profit, adjusted for tax. The metric is one way of viewing whether capital invested in a company has generated value for investors.

Once the top-100 securities are selected, sectors are weighted and the top-25 securities are selected using a StockPointer score – a 50/50 combination of performance and risk metrics. The ETF is rebalanced quarterly to ensure diversification among the top-25 securities selected and to avoid concentration risk.

ETF name

Ticker

Management fee

Horizons Inovestor Canadian Equity Index ETF

INOC

0.50% (plus applicable sales taxes)