Potential Benefits of Horizons Covered Call ETFs
– Professional options management, packaged into an ETF
– Seeks to generate via monthly call options on major U.S. indexes
– Seeks a measure of portfolio protection from options premium received from monthly index call options
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The Horizons ETFs Group makes up one of the largest collective families of ETFs in the world. At Horizons ETFs U.S. we constantly maintain focus on our clients and the products we develop, which is driven by our core value of ETF innovation. Our growing lineup of investment products cover a diverse range of strategies including risk management, innovative and thematic access, and actively managed products. Learn more below.
The Horizons NASDAQ 100 Covered Call ETF (“Fund”) seeks to provide investment results that will closely correspond, before fees and expenses, generally to the price and yield performance of the CBOE NASDAQ-100® BuyWrite V2 Index.
The Horizons S&P 500 Covered Call ETF (“Fund”) seeks to provide investment results that will closely correspond, before fees and expenses, generally to the price and yield performance of the CBOE S&P 500 2% OTM BuyWrite Index (BXY Index).
The Horizons DAX Germany ETF (“Fund”) seeks to provide investment results that will closely correspond, before fees and expenses, to the price and yield performance of the DAX® Index.
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Before investing you should carefully consider the fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained on this website. Please read the prospectus carefully before you invest.
There are risks involved with investing, including possible loss of principal. Concentration in a particular industry or sector will subject the funds to loss due to adverse occurrences that may affect that industry or sector. Each sector fund is subject to its own specific risk factors. See prospectus for specific risks regarding fund. Investors in the funds should be willing to accept a high degree of volatility in the price of the fund’s shares and the possibility of significant losses. International investing involves risks, including -risks related to foreign currency, limited liquidity, less government regulation and the possibility of substantial volatility due to adverse political, economic or other developments. These risks often are heightened for investments in emerging/developing markets or in concentrations of single countries. Diversification may not protect against market risk or loss of principal. DAX and QYLD are considered non-diversified and may be subject to greater risks than a diversified fund.
QYLD and HSPX both engage in options trading. An option is a contract sold by one party to another that gives the buyer the right, but not the obligation, to buy (call) or sell (put) a stock at an agreed upon price within a certain period or on a specific date. A covered call option involves holding a long position in a particular asset, in this case U.S. common equities, and writing a call option on that same asset with the goal of realizing additional income from the option premium.
QYLD engages in writing covered call index options on the Nasdaq-100 Index and HSPX engages in writing covered call index options on the S&P 500® Index. By selling covered call options, the fund limits its opportunity to profit from an increase in the price of the underlying index above the exercise price, but continues to bear the risk of a decline in the index. A liquid market may not exist for options held by the fund. While the fund receives premiums for writing the call options, the price it realizes from the exercise of an option could be substantially below the indices current market price.
Horizons ETFs Management (US) LLC is the investment adviser of HSPX, DAX, QYLD, and USDY. The funds are distributed by Foreside Fund Services, LLC, which is not affiliated with Horizons ETFs Management (US) LLC or any of its affiliates.
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 on the New York stock exchange or Nasdaq exchange through a brokerage account. Brokerage commissions will reduce returns. However, shares are not individually redeemable directly from the funds. Each fund issues and redeems shares on a continuous basis, at NAV, only in blocks of shares (“creation units”), principally in-kind for securities included in the relevant index. The creation units for DAX, QYLD, HSPX, and USDY are 50,000 shares.