Horizons offers two new income ETFs

Horizons has launched two new ETF this morning, both of which employ covered call strategies: The Horizons Enhanced Income US Equity (USD) ETF (trading as HEA.U) and the Horizons Enhanced Income International Equity ETF (trading as HEJ).

“These are the latest additions to our family of enhanced income solutions, which use covered call strategies to generate income. Each of these ETFs offer investors the potential for an attractive tax-efficient monthly yield on a popular asset class,” said Howard Atkinson, CEO of Horizons ETFs, “HEA.U and HEJ broaden our product suite to asset classes beyond Canada’s borders, so investors can take advantage of a covered call strategy on their respective baskets of stocks, each of which holds a number of the world’s largest companies.”

Horizons HEA.U will invest primarily in a portfolio of equity and equity-related securities of blue-chip U.S. companies that trade on the New York Stock Exchange or NASDAQ.

Because Horizons HEA.U is denominated and traded in U.S. dollars, it will not seek to hedge its exposure to the U.S. dollar back to the Canadian dollar.

Horizons HEJ will invest primarily in a portfolio of equity and equity-related securities of large-cap, non-North American issuers on the TSX, NYSE or NASDAQ. Horizons HEJ will hedge its exposure to the U.S. dollar back to the Canadian dollar.

JovInvestment Management Inc., an affiliate of the manager of the ETFs, will act as investment advisor to the ETFs. These ETFs will be the seventh and eight covered-call writing mandates that JovInvestment manages for AlphaPro.

Staff

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