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

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 inverse (opposite) of the daily performance of the S&P 500 VIX () 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

Category (main) Inverse Volatility USA
Category (other)Inverse
Underlying Index S&P 500 VIX Short-Term Futures Index
ETF Structure Passive type. Inverse. Endeavours to return the inverse (opposite) daily Index return before fees/costs
Asset Class Volatility
Region USA
Issuer Horizons ETFs (Canada)
ETF Home Page Available here
Fund Facts
Inception Date April 4, 2012
Total Holdings Unknown
Distribution Frequency None
Leverage None
Significant Currency Exposure Yes
Currency Hedging Yes
Management Fee 1.15%
Management Expense Ratio (MER) Unknown *
Forward Structure Costs 0.50%

* Not available yet

Trading Information
Ticker HVI
Exchange TSX (Toronto Stock Exchange)
Currency CAD
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 at TMX ETF at Morningstar

ETF Analysis

Inverse ETFs are reset/rebalanced daily. Consequently they will not and should not be expected to replicate the return (or inverse return) of its underlying index over any period of time other than daily.

The returns of inverse ETFs over periods longer than one day will likely differ in amount and possibly direction from the performance of their underlying index for the same period. This effect becomes more pronounced as the volatility of the underlying index increases.

Investors should monitor investments in inverse ETFs on a daily basis.

When inverse ETFs are held, they are typically held for small periods only - often just a single day.

Do not invest in inverse ETFs unless you fully understand the risks involved and how your particular ETF works.

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.