Horizons BetaPro S&P 500 VIX Short-Term Futures ETF - HUV

ETF Overview

The fund is designed to provide investment results, before fees, expenses, distributions, brokerage commissions and other transaction costs, that endeavour to correspond to the performance of the S&P 500 VIX ( VIX is a trademarked ticker symbol for the Chicago Board Options Exchange Market Volatility Index, a popular measure of the implied volatility of S&P 500 index options. Often referred to as the fear index or the fear gauge, it represents one measure of the market's expectation of stock market volatility over the next 30 day period. ) Short-Term Futures Index.

Any U.S. dollar gains or losses as a result of the ETF's investment will be hedged back to the Canadian dollar to the best of its ability.

VIX Index

Volatility is a market condition that is easier to identify than it is to manage. Since 1993, the CBOE has calculated and published its proprietary measurement of implied and expected volatility of the S&P 500 over a 30 day period, the CBOE Volatility Index (the "VIX Index").

The Underlying Index

The S&P 500 VIX Short-Term Futures Index, the underlying index, seeks to offer exposure to market volatility through publicly traded futures markets. Specifically, the Underlying Index measures the excess return from a daily rolling long position in the first and second month VIX Futures Contracts.

VIX Futures Contracts are based on the value of the VIX Index at a predetermined future date. The VIX Index is calculated based on the prices of put and call options on the S&P 500.

The VIX Index is a theoretical calculation and cannot be traded on a market price basis.

While it is important to understand the VIX Index and VIX Futures Contracts in order to understand the composition of the Underlying Index, neither the VIX Index nor individual VIX Futures Contracts are the benchmark or underlying index for this ETF.

Historically, the Underlying Index has tended to revert to a historical mean. As a result, the performance of the Underlying Index is expected to be negative over the longer term.

The Forward Agreement Structure

The Fund utilizes a Forward Agreement structure to gain exposure to the target portfolio.

Be aware that the forward structure adds additional costs to the ETF. These costs are not included in the MER.

Key ETF Data

Fundamentals
Category (main)	Volatility USA
Underlying Index	S&P 500 VIX Short-Term Futures Index
ETF Structure	Passive type. Endeavours to return the Index return before fees/costs
Asset Class	Volatility
Region	USA
Issuer	Horizons ETFs (Canada)
ETF Home Page	Available here

Fund Facts
Inception Date	Dec 18, 2010
Total Holdings	Unknown
Distribution Frequency	None
Leverage	None
Significant Currency Exposure	Yes
Currency Hedging	Yes

Fees
Management Fee	0.85%
Management Expense Ratio (MER)	0.93% *
Forward Structure Costs	0.30%

* 2011, 2010 (0.90%)

Trading Information
Ticker	HUV
Exchange	TSX (Toronto Stock Exchange)
Currency	CAD

Eligibility
Eligibility *	RRSP, RRIF, RESP, TFSA, DPSP, RDSP
DRIP available **	No
PACC Plan available **	No
SWP available **	No

* Always check eligibility with your plan operator as plans and accounts can differ

** Not all brokers can facilitate these plans. Check with your broker.

Current Price, Fund Performance, Yield, NAV, Charts etc

To view the TSX or Morningstar fund page for this ETF click on the Fund Data menu tab or below:

ETF Analysis

Historically, the Underlying Index (S&P 500 VIX Short-Term Futures Index) has tended to revert to a historical mean. As a result, the performance of the Underlying Index is expected to be negative over the longer term.