Horizons to consolidate Bull Plus gas ETF

Horizons ETFs has announced that it plans to consolidate the units of Horizons BetaPro NYMEX Natural Gas Bull Plus ETF on a 1:4 basis.

The reverse split will take effect after the close of the Toronto Stock Exchange on November 22, 2011. The consolidated units will begin trading on November 23, 2011

The prolonged slump in the price of natural gas has made a leveraged upside play a pretty bad investment over the past three years. If an investor had placed $10,000 in the ETF on its launch date in January 2008, that investment would be worth about $37 today.

Horizons has always pointed out that it’s Bull Plus and Bear Plus ETFs are not intended as long-term buy-and-hold investments for structural reasons.

Staff

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