Horizons offers three commodity yield ETFs

Horizons Exchange Traded Funds launched three new monthly income commodity ETFs, which will provide exposure to crude oil, natural gas and silver.

Horizons Silver Yield ETF, Horizons Crude Oil Yield ETF and Horizons Natural Gas Yield ETF began trading today on the TSX in both E class and advisor class units. Returns are hedged to the Canadian dollar.

“Investing in commodities such as oil, gas and precious metals can offer several advantages to a portfolio. Among them are diversification, growth potential and inflation protection. However, commodities by their nature have never been unable to offer one investing staple…income,” said Howard Atkinson, CEO of Horizons ETFs. “These new ETFs will give investors the best of both worlds: exposure to each underlying commodity and tax-efficient income.”

All three will seek is to provide its unitholders with exposure to the price of the underlying commodity, tax-efficient monthly distributions and exposure to a covered call option writing strategy on 33% of the invested portfolio.

Horizons already offers a similar ETF providing exposure to the price of gold.

Staff

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