Horizons Tactical Absolute Return Bond ETF available in US dollar-denominated shares
Horizons ETFs has launched a US dollar-denominated series of shares of the Horizons Tactical Absolute Return Bond ETF.
These shares will trade on the Toronto Stock Exchange (TSX) under the ticker symbol HARB.U.
The launch of HARB.U follows the launch of two other series of the Horizons Tactical Absolute Return Bond ETF, which were launched on 8 December, 2020, under the ticker symbols HARB (the "Total Return Series Shares") and HARB.J (HARB.J or the "Dividend Series Shares"). The new US dollar denominated shares will provide unhedged exposure to the ETF' portfolio, which, under normal market conditions, is not expected to make any distributions, similar to the Total Return Series Shares used by HARB.
All three series of shares of the ETF seek to provide positive absolute returns with low volatility over a market cycle regardless of market conditions or general market direction. The ETF tactically takes long and short positions in North American and global debt instruments and derivatives across the credit spectrum.
Unlike HARB, which only accepts subscriptions in Canadian dollars and tactically hedges its currency exposure and employs tactical FX hedging, HARB.U will only accept subscriptions in U.S. dollars and does not employ any FX hedging.
The ETF can take long or short positions, using leverage up to three-times (300 per cent) of its net asset value, across a variety of North American and global income-producing instruments including, but not limited to: government debt, corporate debt, preferred shares, fixed income derivatives, and other income-producing instruments, as part of a variety of sophisticated strategies.
"Since we launched HARB and HARB.J in December 2020, we have seen considerable interest across the investor spectrum for a US dollar version that can also deliver absolute returns in what has been a challenging fixed income environment to navigate using traditional strategies," says Steve Hawkins, President & CEO of Horizons ETFs. "With increased volatility in the fixed income market in 2021, we believe it is more critical than ever to offer Canadian fixed income investors the tools that allow them to navigate this market turbulence, which would include having flexibility with their currency exposure."
The ETF is sub-advised by DMAT Capital Management (DMAT).