ETF Facts July 10, 2018 Horizons Enhanced Income Equity ETF (HEX) - Class E Units Manager: This document contains key information you should know about Horizons Enhanced Income Equity ETF. You can find more details about this exchange traded fund (ETF) in its prospectus. Ask your representative for a copy, contact at info@horizonsetfs.com or 1-866-641-5739, or visit www.horizonsetfs.com. Before you invest, consider how the ETF would work with your other investments and your tolerance for risk. Quick facts Date ETF started: March 16, 2011 Total value on June 29, 2018: $40.4 Million Management expense ratio (MER): 0.83% Fund manager: Portfolio manager: Distributions: Monthly (if any) Trading information (12 months ending June 29, 2018) Ticker symbol: HEX Exchange: Toronto Stock Exchange (TSX) Currency: Canadian dollars Pricing information (12 months ending June 29, 2018) Market price: $6.32 - $7.02 Net asset value {NAV}: $6.35 - $7.02 Average daily volume: 19,673 units Number of days traded: 250 out of 251 trading days Average bid-ask spread: 0.35% What does the ETF invest in? The investment objective of the ETF is to provide unitholders with: (a) exposure to the performance of an equal weighted portfolio of large capitalization Canadian companies; and (b) monthly distributions of dividend and call option income. The charts below give you a snapshot of the ETFs investments on June 29, 2018. The ETF's investments will change. Top 10 investments (June 29, 2018) 1. Imperial Oil Ltd. 4.1% 2. Suncor Energy Inc. 4.0% 3. Canadian Natural Resources Ltd. 3.9% 4. Encana Corp. 3.8% 5. Husky Energy Inc. 3.7% 6. Enbridge Inc. 3.7% 7. Canadian National Railway Co. 3.6% 8. Nutrien Ltd. 3.5% 9. CGI Group Inc. 3.5% 10. Metro Inc. 3.4% Total percentage of top 10 investments 37.2% Total number of investments: 86 Investment mix (June 29, 2018) Asset Mix 100.3% Canadian Equities 0.3% Cash and Cash Equivalents -0.2% Other Assets less Liabilities Sector Mix 34.1% Financials 23.1% Energy 10.1% Industrials 9.9% Materials 9.9% Consumer Discretionary 6.3% Telecommunication Services 3.5% Information Technology 3.4% Consumer Staples 0.3% Cash and Cash Equivalents -0.2% Other Assets less Liabilities How risky is it? The value of the ETF can go down as well as up. You could lose money. One way to gauge risk is to look at how much an ETF's returns change over time. This is called "volatility". In general, ETF's with higher volatility will have returns that change more over time. They typically have a greater chance of losing money and may have a greater chance of higher returns. ETFs with lower volatility tend to have returns that change less over time. They typically have lower returns and may have a lower chance of losing money.
Horizons Enhanced Income Equity ETF Risk rating has rated the volatility of this ETF as Medium. This rating is based on how much the ETF's returns have changed from year to year. It doesn't tell you how volatile the ETF will be in the future. The rating can change over time. An ETF with a low risk rating can still lose money. For more information about the risk rating and specific risks that can affect the ETF's returns, see the "Risk Factors" section of the ETF's prospectus. No guarantees ETFs do not have any guarantees. You may not get back the amount of money you invest. Low Low to Medium Medium Medium to High High How has the ETF performed? This section tells you how units of the ETF have performed over the past 6 years. Returns 1 are after expenses have been deducted. These expenses reduce the ETF's returns. 1 Returns are calculated using the ETF s net asset value (NAV). Year-by-year returns This chart shows how units of the ETF performed in each of the past 6 completed calendar years. The ETF dropped in value in 1 of the 6 years. The range of returns and change from year to year can help you assess how risky the ETF has been in the past. It does not tell you how the ETF will perform in the future. 40% 30% 20% 10% 0% -10% -20% -30% -40% 4.1 5.1 3.7 2012 2013 2014-7.3 2015 22.4 2016 6.3 2017 Best and worst 3-month returns This table shows the best and worst returns for units of the ETF in a 3-month period over the past 6 calendar years. The best and worst 3-month returns could be higher or lower in the future. Consider how much of a loss you could afford to take in a short period of time. Return 3 months ending If you invested $1,000 at the beginning of the period Best return 11.1% April 30, 2016 Your investment would rise to $1,111 Worst return -12.6% September 30, 2011 Your investment would drop to $874 Average return As at June 29, 2018, a person who invested $1,000 in the ETF 6 years ago now has $1,233. This works out to an annual compound return of 2.9%. Trading ETFs ETFs hold a basket of investments, like mutual funds, but trade on exchanges like stocks. Here are a few things to keep in mind when trading ETFs: Pricing ETFs have two sets of prices: market price and net asset value (NAV). Market price ETFs are bought and sold on exchanges at the market price. The market price can change throughout the trading day. Factors like supply, demand, and changes in the value of an ETF s investments can effect the market price. You can get price quotes any time during the trading day. Quotes have two parts: bid and ask. The bid is the highest price a buyer is willing to pay if you want to sell your ETF units. The ask is the lowest price a seller is willing to accept if you want to buy ETF units. The difference between the two is called the bid-ask spread. In general, a smaller bid-ask spread means the ETF is more liquid. That means you are more likely to get the price you expect. Net asset value (NAV) Like mutual funds, ETFs have a NAV. It is calculated after the close of each trading day and reflects the value of an ETF s investments at that point in time. NAV is used to calculate financial information for reporting purposes like the returns shown in this document.
Horizons Enhanced Income Equity ETF Orders There are two main options for placing trades: market orders and limit orders. A market order lets you buy or sell units at the current market price. A limit order lets you set the price at which you are willing to buy or sell units. Timing In general, market prices of ETFs can be more volatile around the start and end of the trading day. Consider using a limit order or placing a trade at another time during the trading day. Who is this ETF for? Investors who: Suitable for investors who are looking for income Suitable for investors who want exposure to a portfolio of Canadian equities that seeks income enhancement Suitable for investors who are comfortable with fluctuations in the market value of their investment. A word about tax In general, you'll have to pay income tax on any money you make on an ETF. How much you pay depends on the tax laws where you live and whether or not you hold the ETF in a registered plan, such as a Registered Retirement Savings Plan or a Tax-Free Savings Account. Keep in mind that if you hold your ETF in a non-registered account, distributions from the ETF are included in your taxable income, whether you get them in cash or have them reinvested. How much does it cost? This section shows the fees and expenses you could pay to buy, own and sell units of the ETF. Fees and expenses, including any trailing commissions, can vary among ETFs. Higher commissions can influence representatives to recommend one investment over another. Ask about other ETFs and investments that may be suitable for you at a lower cost. 1. Brokerage commissions You may have to pay a commission every time you buy and sell units of the ETF. Commissions may vary by brokerage firm. Some brokerage firms may offer commission-free ETFs or require a minimum purchase amount. 2. ETF expenses You don t pay these expenses directly. They affect you because they reduce the ETF's returns. As of December 31, 2017, the ETF's expenses were 1.11% of its value. This equals $11.10 for every $1,000 invested. Annual rate (as a % of the ETF's value) Management expense ratio (MER) This is the total of the ETF's management fee and operating expenses. 0.83% Trading expense ratio (TER) These are the ETF s trading costs. 0.28% ETF expenses 1.11% Trailing commission The trailing commission is an ongoing commission. It is paid for as long as you own the ETF. It is for the services and advice that your representative and their firm provide to you. This ETF doesn t have a trailing commission. 3. Other fees Redemption Fee FEE WHAT YOU PAY The manager may charge unitholders of the ETF, at its discretion, a redemption fee of up to 0.25% of the value of the units you redeem or exchange. The manager will publish the current redemption fee, if any, on its website at www.horizonsetfs.com.
Horizons Enhanced Income Equity ETF What if I change my mind? Under securities law in some provinces and territories, you have the right to cancel your purchase within 48 hours after you receive confirmation of the purchase. In some provinces and territories, you also have the right to cancel a purchase, or in some jurisdictions, claim damages, if the prospectus, ETF Facts or financial statements contain a misrepresentation. You must act within the time limit set by the securities law in your province or territory. For more information, see the securities law of your province or territory or ask a lawyer. For more information Contact or your representative for a copy of the ETF s prospectus and other disclosure documents. These documents and the ETF Facts make up the ETF's legal documents. 55 University Avenue Toronto, Ontario M5J 2H7 Toll Free 1-866-641-5739 www.horizonsetfs.com Email: info@horizonsetfs.com
ETF Facts July 10, 2018 Horizons Enhanced Income Financials ETF (HEF) - Class E Units Manager: This document contains key information you should know about Horizons Enhanced Income Financials ETF. You can find more details about this exchange traded fund (ETF) in its prospectus. Ask your representative for a copy, contact Horizons ETFs Management (Canada) Inc. at info@horizonsetfs.com or 1-866-641-5739, or visit www.horizonsetfs.com. Before you invest, consider how the ETF would work with your other investments and your tolerance for risk. Quick facts Date ETF started: May 16, 2011 Total value on June 29, 2018: $17.6 Million Management expense ratio (MER): 0.83% Fund manager: Portfolio manager: Distributions: Monthly (if any) Trading information (12 months ending June 29, 2018) Ticker symbol: HEF Exchange: Toronto Stock Exchange (TSX) Currency: Canadian dollars Pricing information (12 months ending June 29, 2018) Market price: $8.59 - $9.53 Net asset value {NAV}: $8.58 - $9.56 Average daily volume: 5,850 units Number of days traded: 248 out of 251 trading days Average bid-ask spread: 0.27% What does the ETF invest in? The investment objective of the ETF is to provide unitholders with: (a) exposure to the performance of an equal weighted portfolio of Canadian banking, finance and financial services companies; and (b) monthly distributions of dividend and call option income. The charts below give you a snapshot of the ETFs investments on June 29, 2018. The ETF's investments will change. Top 10 investments (June 29, 2018) 1. Bank of Montreal 8.9% 2. Toronto-Dominion Bank (The) 8.7% 3. National Bank of Canada 8.7% 4. Canadian Western Bank 8.5% 5. Canadian Imperial Bank of Commerce 8.4% 6. Royal Bank of Canada 8.4% 7. Sun Life Financial Inc. 8.3% 8. Manulife Financial Corp. 8.3% 9. Great-West Lifeco Inc. 8.3% 10. Intact Financial Corp. 8.2% Total percentage of top 10 investments 84.7% Investment mix (June 29, 2018) Asset Mix 99.6% Canadian Equities 0.7% Cash and Cash Equivalents -0.2% Other Assets less Liabilities Sector Mix 99.6% Financials 0.7% Cash and Cash Equivalents -0.2% Other Assets less Liabilities Total number of investments: 27 How risky is it? The value of the ETF can go down as well as up. You could lose money. One way to gauge risk is to look at how much an ETF's returns change over time. This is called "volatility". In general, ETF's with higher volatility will have returns that change more over time. They typically have a greater chance of losing money and may have a greater chance of higher returns. ETFs with lower volatility tend to have returns that change less over time. They typically have lower returns and may have a lower chance of losing money.
Horizons Enhanced Income Financials ETF Risk rating has rated the volatility of this ETF as Medium. This rating is based on how much the ETF's returns have changed from year to year. It doesn't tell you how volatile the ETF will be in the future. The rating can change over time. An ETF with a low risk rating can still lose money. For more information about the risk rating and specific risks that can affect the ETF's returns, see the "Risk Factors" section of the ETF's prospectus. No guarantees ETFs do not have any guarantees. You may not get back the amount of money you invest. Low Low to Medium Medium Medium to High High How has the ETF performed? This section tells you how units of the ETF have performed over the past 6 years. Returns 1 are after expenses have been deducted. These expenses reduce the ETF's returns. 1 Returns are calculated using the ETF s net asset value (NAV). Year-by-year returns This chart shows how units of the ETF performed in each of the past 6 completed calendar years. The ETF dropped in value in 1 of the 6 years. 30% 20% 10% 7.5 15.0 6.1 18.3 11.6 The range of returns and change from year to year can help you assess how risky the ETF has been in the past. It does not tell you how the ETF will perform in the future. 0% -10% -20% -3.7-30% 2012 2013 2014 2015 2016 2017 Best and worst 3-month returns This table shows the best and worst returns for units of the ETF in a 3-month period over the past 6 calendar years. The best and worst 3-month returns could be higher or lower in the future. Consider how much of a loss you could afford to take in a short period of time. Return 3 months ending If you invested $1,000 at the beginning of the period Best return 11.1% May 31, 2016 Your investment would rise to $1,111 Worst return -8.3% September 30, 2011 Your investment would drop to $918 Average return As at June 29, 2018, a person who invested $1,000 in the ETF 6 years ago now has $1,445. This works out to an annual compound return of 5.3%. Trading ETFs ETFs hold a basket of investments, like mutual funds, but trade on exchanges like stocks. Here are a few things to keep in mind when trading ETFs: Pricing ETFs have two sets of prices: market price and net asset value (NAV). Market price ETFs are bought and sold on exchanges at the market price. The market price can change throughout the trading day. Factors like supply, demand, and changes in the value of an ETF s investments can effect the market price. You can get price quotes any time during the trading day. Quotes have two parts: bid and ask. The bid is the highest price a buyer is willing to pay if you want to sell your ETF units. The ask is the lowest price a seller is willing to accept if you want to buy ETF units. The difference between the two is called the bid-ask spread. In general, a smaller bid-ask spread means the ETF is more liquid. That means you are more likely to get the price you expect. Net asset value (NAV) Like mutual funds, ETFs have a NAV. It is calculated after the close of each trading day and reflects the value of an ETF s investments at that point in time. NAV is used to calculate financial information for reporting purposes like the returns shown in this document.
Horizons Enhanced Income Financials ETF Orders There are two main options for placing trades: market orders and limit orders. A market order lets you buy or sell units at the current market price. A limit order lets you set the price at which you are willing to buy or sell units. Timing In general, market prices of ETFs can be more volatile around the start and end of the trading day. Consider using a limit order or placing a trade at another time during the trading day. Who is this ETF for? Investors who: Suitable for investors who are looking for income Suitable for investors who want exposure to a portfolio of Canadian financial companies that seeks income enhancement Suitable for investors who are comfortable with fluctuations in the market value of their investment. A word about tax In general, you'll have to pay income tax on any money you make on an ETF. How much you pay depends on the tax laws where you live and whether or not you hold the ETF in a registered plan, such as a Registered Retirement Savings Plan or a Tax-Free Savings Account. Keep in mind that if you hold your ETF in a non-registered account, distributions from the ETF are included in your taxable income, whether you get them in cash or have them reinvested. How much does it cost? This section shows the fees and expenses you could pay to buy, own and sell units of the ETF. Fees and expenses, including any trailing commissions, can vary among ETFs. Higher commissions can influence representatives to recommend one investment over another. Ask about other ETFs and investments that may be suitable for you at a lower cost. 1. Brokerage commissions You may have to pay a commission every time you buy and sell units of the ETF. Commissions may vary by brokerage firm. Some brokerage firms may offer commission-free ETFs or require a minimum purchase amount. 2. ETF expenses You don t pay these expenses directly. They affect you because they reduce the ETF's returns. As of December 31, 2017, the ETF's expenses were 1.04% of its value. This equals $10.40 for every $1,000 invested. Annual rate (as a % of the ETF's value) Management expense ratio (MER) This is the total of the ETF's management fee and operating expenses. 0.83% Trading expense ratio (TER) These are the ETF s trading costs. 0.21% ETF expenses 1.04% Trailing commission The trailing commission is an ongoing commission. It is paid for as long as you own the ETF. It is for the services and advice that your representative and their firm provide to you. This ETF doesn t have a trailing commission. 3. Other fees Redemption Fee FEE WHAT YOU PAY The manager may charge unitholders of the ETF, at its discretion, a redemption fee of up to 0.25% of the value of the units you redeem or exchange. The manager will publish the current redemption fee, if any, on its website at www.horizonsetfs.com.
Horizons Enhanced Income Financials ETF What if I change my mind? Under securities law in some provinces and territories, you have the right to cancel your purchase within 48 hours after you receive confirmation of the purchase. In some provinces and territories, you also have the right to cancel a purchase, or in some jurisdictions, claim damages, if the prospectus, ETF Facts or financial statements contain a misrepresentation. You must act within the time limit set by the securities law in your province or territory. For more information, see the securities law of your province or territory or ask a lawyer. For more information Contact or your representative for a copy of the ETF s prospectus and other disclosure documents. These documents and the ETF Facts make up the ETF's legal documents. 55 University Avenue Toronto, Ontario M5J 2H7 Toll Free 1-866-641-5739 www.horizonsetfs.com Email: info@horizonsetfs.com
ETF Facts July 10, 2018 Horizons Enhanced Income International Equity ETF (HEJ) - Class E Units Manager: This document contains key information you should know about Horizons Enhanced Income International Equity ETF. You can find more details about this exchange traded fund (ETF) in its prospectus. Ask your representative for a copy, contact Horizons ETFs Management (Canada) Inc. at info@horizonsetfs.com or 1-866-641-5739, or visit www.horizonsetfs.com. Before you invest, consider how the ETF would work with your other investments and your tolerance for risk. Quick facts Date ETF started: September 13, 2011 Total value on June 29, 2018: $20.5 Million Management expense ratio (MER): 0.84% Fund manager: Portfolio manager: Distributions: Monthly (if any) Trading information (12 months ending June 29, 2018) Ticker symbol: HEJ Exchange: Toronto Stock Exchange (TSX) Currency: Canadian dollars Pricing information (12 months ending June 29, 2018) Market price: $6.16 - $7.28 Net asset value {NAV}: $6.15 - $7.28 Average daily volume: 32,055 units Number of days traded: 251 out of 251 trading days Average bid-ask spread: 0.42% What does the ETF invest in? The investment objective of the ETF is to provide unitholders with: (a) exposure to the performance of an equal weighted portfolio of large capitalization international, non-north American, companies; and (b) monthly distributions of dividend and call option income. The charts below give you a snapshot of the ETFs investments on June 29, 2018. The ETF's investments will change. Top 10 investments (June 29, 2018) 1. BHP Billiton Ltd., ADR 6.2% 2. SAP SE, ADR 6.0% 3. Diageo PLC, ADR 5.7% 4. Koninklijke Philips NV 5.7% 5. Total SA, ADR 5.7% 6. Sony Corp., ADR 5.7% 7. National Grid PLC, ADR 5.4% 8. Toyota Motor Corp., ADR 5.4% 9. Sanofi SA, ADR 5.1% 10. Orange SA, ADR 5.0% Total percentage of top 10 investments 37.3% Total number of investments: 30 Investment mix (June 29, 2018) Asset Mix 20.4% United Kingdom Equities 19.7% Japan Equities 15.8% France Equities 9.3% Switzerland Equities 9.0% Germany Equities 6.2% Australia Equities 5.7% Netherlands Equities 5.0% Hong Kong Equities 4.4% Belgium Equities 3.9% Spain Equities -2.6% Currency Forward Hedge 3.7% Cash and Cash Equivalents -0.3% Other Assets less Liabilities Sector Mix 16.0% Financials 15.5% Consumer Discretionary 14.5% Consumer Staples 10.3% Industrials 10.0% Telecommunication Services 9.8% Health Care 6.2% Materials 6.0% Information Technology 5.7% Energy 5.4% Utilities -2.6% Currency Forward Hedge 3.7% Cash and Cash Equivalents -0.3% Other Assets less Liabilities
Horizons Enhanced Income International Equity ETF How risky is it? The value of the ETF can go down as well as up. You could lose money. One way to gauge risk is to look at how much an ETF's returns change over time. This is called "volatility". In general, ETF's with higher volatility will have returns that change more over time. They typically have a greater chance of losing money and may have a greater chance of higher returns. ETFs with lower volatility tend to have returns that change less over time. They typically have lower returns and may have a lower chance of losing money. Risk rating has rated the volatility of this ETF as Medium. This rating is based on how much the ETF's returns have changed from year to year. It doesn't tell you how volatile the ETF will be in the future. The rating can change over time. An ETF with a low risk rating can still lose money. Low Low to Medium Medium Medium to High High For more information about the risk rating and specific risks that can affect the ETF's returns, see the "Risk Factors" section of the ETF's prospectus. No guarantees ETFs do not have any guarantees. You may not get back the amount of money you invest. How has the ETF performed? This section tells you how units of the ETF have performed over the past 6 years. Returns 1 are after expenses have been deducted. These expenses reduce the ETF's returns. 1 Returns are calculated using the ETF s net asset value (NAV). Year-by-year returns This chart shows how units of the ETF performed in each of the past 6 completed calendar years. The ETF dropped in value in 2 of the 6 years. The range of returns and change from year to year can help you assess how risky the ETF has been in the past. It does not tell you how the ETF will perform in the future. 30% 20% 10% 0% -10% -20% 5.4 1.6-4.0-12.3 6.6 18.5-30% 2012 2013 2014 2015 2016 2017 Best and worst 3-month returns This table shows the best and worst returns for units of the ETF in a 3-month period over the past 6 calendar years. The best and worst 3-month returns could be higher or lower in the future. Consider how much of a loss you could afford to take in a short period of time. Return 3 months ending If you invested $1,000 at the beginning of the period Best return 8.7% May 31, 2016 Your investment would rise to $1,087 Worst return -14.1% May 31, 2012 Your investment would drop to $859 Average return As at June 29, 2018, a person who invested $1,000 in the ETF 6 years ago now has $1,098. This works out to an annual compound return of 1.4%. Trading ETFs ETFs hold a basket of investments, like mutual funds, but trade on exchanges like stocks. Here are a few things to keep in mind when trading ETFs: Pricing ETFs have two sets of prices: market price and net asset value (NAV). Market price ETFs are bought and sold on exchanges at the market price. The market price can change throughout the trading day. Factors like supply, demand, and changes in the value of an ETF s investments can effect the market price. You can get price quotes any time during the trading day. Quotes have two parts: bid and ask.
Horizons Enhanced Income International Equity ETF The bid is the highest price a buyer is willing to pay if you want to sell your ETF units. The ask is the lowest price a seller is willing to accept if you want to buy ETF units. The difference between the two is called the bid-ask spread. In general, a smaller bid-ask spread means the ETF is more liquid. That means you are more likely to get the price you expect. Net asset value (NAV) Like mutual funds, ETFs have a NAV. It is calculated after the close of each trading day and reflects the value of an ETF s investments at that point in time. NAV is used to calculate financial information for reporting purposes like the returns shown in this document. Orders There are two main options for placing trades: market orders and limit orders. A market order lets you buy or sell units at the current market price. A limit order lets you set the price at which you are willing to buy or sell units. Timing In general, market prices of ETFs can be more volatile around the start and end of the trading day. Consider using a limit order or placing a trade at another time during the trading day. Who is this ETF for? Investors who: Suitable for investors who are looking for income Suitable for investors who want exposure to a portfolio of non-north American large cap companies that seeks income enhancement Suitable for investors who are comfortable with fluctuations in the market value of their investment. A word about tax In general, you'll have to pay income tax on any money you make on an ETF. How much you pay depends on the tax laws where you live and whether or not you hold the ETF in a registered plan, such as a Registered Retirement Savings Plan or a Tax-Free Savings Account. Keep in mind that if you hold your ETF in a non-registered account, distributions from the ETF are included in your taxable income, whether you get them in cash or have them reinvested. How much does it cost? This section shows the fees and expenses you could pay to buy, own and sell units of the ETF. Fees and expenses, including any trailing commissions, can vary among ETFs. Higher commissions can influence representatives to recommend one investment over another. Ask about other ETFs and investments that may be suitable for you at a lower cost. 1. Brokerage commissions You may have to pay a commission every time you buy and sell units of the ETF. Commissions may vary by brokerage firm. Some brokerage firms may offer commission-free ETFs or require a minimum purchase amount.
Horizons Enhanced Income International Equity ETF 2. ETF expenses You don t pay these expenses directly. They affect you because they reduce the ETF's returns. As of December 31, 2017, the ETF's expenses were 1.23% of its value. This equals $12.30 for every $1,000 invested. Annual rate (as a % of the ETF's value) Management expense ratio (MER) This is the total of the ETF's management fee and operating expenses. 0.84% Trading expense ratio (TER) These are the ETF s trading costs. 0.39% ETF expenses 1.23% Trailing commission The trailing commission is an ongoing commission. It is paid for as long as you own the ETF. It is for the services and advice that your representative and their firm provide to you. This ETF doesn t have a trailing commission. 3. Other fees Redemption Fee FEE WHAT YOU PAY The manager may charge unitholders of the ETF, at its discretion, a redemption fee of up to 0.25% of the value of the units you redeem or exchange. The manager will publish the current redemption fee, if any, on its website at www.horizonsetfs.com. What if I change my mind? Under securities law in some provinces and territories, you have the right to cancel your purchase within 48 hours after you receive confirmation of the purchase. In some provinces and territories, you also have the right to cancel a purchase, or in some jurisdictions, claim damages, if the prospectus, ETF Facts or financial statements contain a misrepresentation. You must act within the time limit set by the securities law in your province or territory. For more information, see the securities law of your province or territory or ask a lawyer. For more information Contact or your representative for a copy of the ETF s prospectus and other disclosure documents. These documents and the ETF Facts make up the ETF's legal documents. 55 University Avenue Toronto, Ontario M5J 2H7 Toll Free 1-866-641-5739 www.horizonsetfs.com Email: info@horizonsetfs.com
ETF Facts July 10, 2018 Horizons Enhanced Income US Equity (USD) ETF (HEA.U (US$) / HEA (C$)) - Class E Units Manager: This document contains key information you should know about Horizons Enhanced Income US Equity (USD) ETF. You can find more details about this exchange traded fund (ETF) in its prospectus. Ask your representative for a copy, contact Horizons ETFs Management (Canada) Inc. at info@horizonsetfs.com or 1-866-641-5739, or visit www.horizonsetfs.com. Before you invest, consider how the ETF would work with your other investments and your tolerance for risk. Quick facts Date ETF started: September 13, 2011 Total value on June 29, 2018: $34.4 Million Management expense ratio (MER): 0.83% Fund manager: Portfolio manager: Distributions: Monthly (if any) Trading information (12 months ending June 29, 2018) Ticker symbol: HEA.U (US$) / HEA (C$) Exchange: Toronto Stock Exchange (TSX) Currency: United States dollars Pricing information (12 months ending June 29, 2018) Market price (US$): $11.24 - $12.61 Net asset value {NAV} (US$): $11.20 - $12.68 Average bid-ask spread (US$): 0.46% Average daily volume: 2,014 units Number of days traded: 164 out of 251 trading days Market price (C$): $13.77 - $15.84 Net asset value {NAV} (C$): $13.79 - $15.77 Average bid-ask spread (C$): 0.39% What does the ETF invest in? The investment objective of the ETF is to provide unitholders with: (a) exposure to the performance of an equal weighted portfolio of large capitalization U.S. companies; and (b) monthly U.S. dollar distributions of dividend and call option income. The charts below give you a snapshot of the ETFs investments on June 29, 2018. The ETF's investments will change. Top 10 investments (June 29, 2018) 1. ConocoPhillips 2.6% 2. Amazon.com Inc. 2.5% 3. Facebook Inc. 2.3% 4. Exxon Mobil Corp. 2.2% 5. Chevron Corp. 2.2% 6. Merck & Co. Inc. 2.2% 7. Simon Property Group Inc. 2.2% 8. UnitedHealth Group Inc. 2.2% 9. Visa Inc. 2.2% 10. Microsoft Corp. 2.2% Total percentage of top 10 investments 20.5% Total number of investments: 119 Investment mix (June 29, 2018) Asset Mix 100.0% U.S. Equities 0.8% Cash and Cash Equivalents -0.5% Other Assets less Liabilities Sector Mix 22.1% Information Technology 17.3% Financials 13.8% Health Care 12.2% Consumer Discretionary 9.9% Industrials 9.5% Consumer Staples 7.1% Energy 3.9% Materials 2.1% Telecommunication Services 2.1% Utilities 0.8% Cash and Cash Equivalents -0.5% Other Assets less Liabilities How risky is it? The value of the ETF can go down as well as up. You could lose money. One way to gauge risk is to look at how much an ETF's returns change over time. This is called "volatility". In general, ETF's with higher volatility will have returns that change more over time. They typically have a greater chance of losing money and may have a greater chance of higher returns. ETFs with lower volatility tend to have returns that change less over time. They typically have lower returns and may have a lower chance of losing money.
Horizons Enhanced Income US Equity (USD) ETF Risk rating has rated the volatility of this ETF as Medium. This rating is based on how much the ETF's returns have changed from year to year. It doesn't tell you how volatile the ETF will be in the future. The rating can change over time. An ETF with a low risk rating can still lose money. For more information about the risk rating and specific risks that can affect the ETF's returns, see the "Risk Factors" section of the ETF's prospectus. No guarantees ETFs do not have any guarantees. You may not get back the amount of money you invest. Low Low to Medium Medium Medium to High High How has the ETF performed? This section tells you how units of the ETF have performed over the past 6 years. Returns 1 are after expenses have been deducted. These expenses reduce the ETF's returns. 1 Returns are calculated using the ETF s net asset value (NAV). Year-by-year returns This chart shows how units of the ETF performed in each of the past 6 completed calendar years. The ETF dropped in value in 1 of the 6 years. 30% 20% 10% 9.6 18.4 6.8 10.3 16.4 The range of returns and change from year to year can help you assess how risky the ETF has been in the past. It does not tell you how the ETF will perform in the future. 0% -10% -20% -1.1-30% 2012 2013 2014 2015 2016 2017 Best and worst 3-month returns This table shows the best and worst returns for units of the ETF in a 3-month period over the past 6 calendar years. The best and worst 3-month returns could be higher or lower in the future. Consider how much of a loss you could afford to take in a short period of time. Return 3 months ending If you invested $1,000 at the beginning of the period Best return 11.6% December 31, 2011 Your investment would rise to $1,116 Worst return -7.6% January 31, 2016 Your investment would drop to $924 Average return As at June 29, 2018, a person who invested $1,000 in the ETF 6 years ago now has $1,900. This works out to an annual compound return of 9.9%. Trading ETFs ETFs hold a basket of investments, like mutual funds, but trade on exchanges like stocks. Here are a few things to keep in mind when trading ETFs: Pricing ETFs have two sets of prices: market price and net asset value (NAV). Market price ETFs are bought and sold on exchanges at the market price. The market price can change throughout the trading day. Factors like supply, demand, and changes in the value of an ETF s investments can effect the market price. You can get price quotes any time during the trading day. Quotes have two parts: bid and ask. The bid is the highest price a buyer is willing to pay if you want to sell your ETF units. The ask is the lowest price a seller is willing to accept if you want to buy ETF units. The difference between the two is called the bid-ask spread. In general, a smaller bid-ask spread means the ETF is more liquid. That means you are more likely to get the price you expect. Net asset value (NAV) Like mutual funds, ETFs have a NAV. It is calculated after the close of each trading day and reflects the value of an ETF s investments at that point in time. NAV is used to calculate financial information for reporting purposes like the returns shown in this document.
Horizons Enhanced Income US Equity (USD) ETF Orders There are two main options for placing trades: market orders and limit orders. A market order lets you buy or sell units at the current market price. A limit order lets you set the price at which you are willing to buy or sell units. Timing In general, market prices of ETFs can be more volatile around the start and end of the trading day. Consider using a limit order or placing a trade at another time during the trading day. Who is this ETF for? Investors who: Suitable for investors who are looking for income Suitable for investors who want exposure to a portfolio of U.S. large cap companies that seeks income enhancement Suitable for investors who are comfortable with fluctuations in the market value of their investment. A word about tax In general, you'll have to pay income tax on any money you make on an ETF. How much you pay depends on the tax laws where you live and whether or not you hold the ETF in a registered plan, such as a Registered Retirement Savings Plan or a Tax-Free Savings Account. Keep in mind that if you hold your ETF in a non-registered account, distributions from the ETF are included in your taxable income, whether you get them in cash or have them reinvested. How much does it cost? This section shows the fees and expenses you could pay to buy, own and sell units of the ETF. Fees and expenses, including any trailing commissions, can vary among ETFs. Higher commissions can influence representatives to recommend one investment over another. Ask about other ETFs and investments that may be suitable for you at a lower cost. 1. Brokerage commissions You may have to pay a commission every time you buy and sell units of the ETF. Commissions may vary by brokerage firm. Some brokerage firms may offer commission-free ETFs or require a minimum purchase amount. 2. ETF expenses You don t pay these expenses directly. They affect you because they reduce the ETF's returns. As of December 31, 2017, the ETF's expenses were 1.12% of its value. This equals $11.20 for every $1,000 invested. Annual rate (as a % of the ETF's value) Management expense ratio (MER) This is the total of the ETF's management fee and operating expenses. 0.83% Trading expense ratio (TER) These are the ETF s trading costs. 0.29% ETF expenses 1.12% Trailing commission The trailing commission is an ongoing commission. It is paid for as long as you own the ETF. It is for the services and advice that your representative and their firm provide to you. This ETF doesn t have a trailing commission. 3. Other fees Redemption Fee FEE WHAT YOU PAY The manager may charge unitholders of the ETF, at its discretion, a redemption fee of up to 0.25% of the value of the units you redeem or exchange. The manager will publish the current redemption fee, if any, on its website at www.horizonsetfs.com.
Horizons Enhanced Income US Equity (USD) ETF What if I change my mind? Under securities law in some provinces and territories, you have the right to cancel your purchase within 48 hours after you receive confirmation of the purchase. In some provinces and territories, you also have the right to cancel a purchase, or in some jurisdictions, claim damages, if the prospectus, ETF Facts or financial statements contain a misrepresentation. You must act within the time limit set by the securities law in your province or territory. For more information, see the securities law of your province or territory or ask a lawyer. For more information Contact or your representative for a copy of the ETF s prospectus and other disclosure documents. These documents and the ETF Facts make up the ETF's legal documents. 55 University Avenue Toronto, Ontario M5J 2H7 Toll Free 1-866-641-5739 www.horizonsetfs.com Email: info@horizonsetfs.com