Horizons launches hedge fund index ETF

Horizons Exchange Traded Funds has announced the launch of the Horizons Morningstar Hedge Fund Index ETF, which will provide investors with hedge fund-type exposure for their portfolios through an index strategy.

“The Hedge Fund ETF offers investors an index strategy with exposure to the performance of a broad group of hedge funds. Just like in stock investing, the returns of an index are often more compelling than investing in the individual constituent names,” said Howard Atkinson, CEO of Horizons ETFs.

“The vast majority of Canadian investors can’t invest in privately offered hedge funds, but through this ETF, they have a cost-effective way to gain diverse hedge fund-type exposure.”

The ETF seeks to replicate the performance of the Morningstar Broad Hedge Fund Index, hedged to the Canadian dollar. The index contains more than 500 constituent hedge funds and seeks to capture the performance and behaviour of highly liquid hedge funds offering exposure to a wide variety of core and category trading strategies but is itself not investable.

“In our opinion, Morningstar has built the world’s best hedge fund index, which captures the most important aspects of investing in hedge funds, such as absolute returns, portfolio diversification and lower volatility,” said Atkinson.

The ETF does not invest directly in the constituent hedge funds of the index, but seeks to replicate as closely as possible the performance of the Index using a replication strategy licensed from National Bank of Canada.

Class E units and Advisor Class units of the Hedge Fund ETF will begin trading tomorrow on the Toronto Stock Exchange under the ticker symbols HHF and HHF.A, respectively.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.