Horizons ETFs Management (US) LLC. confirmed today that effective December 15, 2017 the underlying index for the Horizons S&P 500 Covered Call ETF (the “Fund”) will be changed from the S&P 500 Stock Covered Call Index to the CBOE S&P 500 2% OTM BuyWrite Index (BXY Index). Additionally, the Fund’s investment objective will be changed from seeking investment results that, before fees and expenses, generally correspond to the performance of the S&P 500 Stock Covered Call Index to seeking investment results that, before fees and expenses, generally correspond to the performance of the CBOE S&P 500 2% OTM BuyWrite Index (BXY Index).
“The primary rationale behind the conversion in the underlying index is to enhance the tax efficiency of the covered call strategy. We view the blend of long and short term tax treatment on income derived from writing index options as more favorable than purely short term capital gains associated with single stock options. This transformation in the strategy should both benefit our investors and align HSPX with our other options’ strategies; which utilize index options in the pursuit of tax efficient income,” said Jonathan Molchan, Head of Product Development & Portfolio Manager at Horizons ETFs (US).
Details of the ETF are as follows.
Horizons S&P 500 Covered Call ETF
About the Horizons ETFs Group www.US.HorizonsETFs.com
Horizons ETFs Management (US) LLC is a member of the Horizons ETFs Group. The Horizons ETFs Group consists of innovative financial services companies offering regional families of ETFs in Canada, Korea, Hong Kong, Australia, the United States and Colombia. Currently, all of the ETFs offered by these companies use the Horizons ETFs’ brand with the exception of the “BetaShares” family of ETFs in Australia and the “Mirae Asset Tiger ETFs” family in Korea. With approximately US $17.5 billion in assets under management and 234 ETF listings worldwide (as of October 31, 2017), the Horizons ETFs Group makes up one of the largest collective families of ETFs in the world. All of the Horizons ETFs Group companies and affiliates are subsidiaries of Mirae Asset Global Investments Co., Ltd.
Before investing you should carefully consider each Funds’ investment objectives, risks, charges and expenses. This and other information is in their respective prospectus which can be found at www.us.horizonsetfs.com. Please read the prospectus carefully before you invest. Distributor: Foreside Fund Services, LLC.
Individual shares of the Horizons-branded exchange traded funds (the “Funds”) may be purchased or sold in the secondary market throughout the regular trading day. However, shares of HSPX are not individually redeemable directly from the Funds. Each Fund issues and redeems shares on a continuous basis, at NAV, only in blocks of at least 50,000 shares (“Creation Units”), principally in-kind for securities included in the relevant Index. Horizons ETFs Funds’ Shares are bought and sold at market price (not NAV), are not individually redeemable, and owners of the Shares may acquire those Shares from the Funds and tender those shares for redemption to the Funds in Creation Unit aggregations only, consisting of 50,000 Shares. Brokerage commissions will reduce returns.
Leah Katsanis, 610-228-2117