Horizons launches U.S. Dollar ETF

BetaPro Management Inc. has announced the launch of the Horizons U.S. Dollar Currency ETF, an exchange traded fund that offers investors direct access to foreign currency investing. The U.S. Dollar ETF will begin trading on the TSX on April 7, 2011, under the symbol DLR.

The U.S. Dollar ETF seeks to reflect the price in Canadian dollars of the U.S. dollar, net of expenses, by investing primarily in cash and cash equivalents that are denominated in the U.S. dollar. The U.S. Dollar ETF will make monthly distributions of any income earned on the cash and cash equivalents it holds, net of fees and expenses.

ETF Centre, ETF filter tool

“Given our proximity to the United States, Canadian individuals and businesses may want to hold U.S. dollars for a variety of reasons. Canadian financial institutions can charge in excess of 2% to convert our dollar into U.S. dollars,” said Howard Atkinson, president of BetaPro. “Using an ETF is an innovative way for investors to lower the cost of gaining access to the U.S. dollar while increasing their flexibility to buy and sell U.S. dollar exposure throughout the day.”

With an annual management fee of 0.45%, the U.S. Dollar ETF provides a low cost method for investors to gain access to the U.S. dollar.

Staff

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