Please note that the Gross Expense Ratio is 0.75*% and the Net Expense Ratio is 0.68%. The fund advisor has contractually agreed to waive a portion of the Management Fee of USDY from 0.75% to 0.68% until 2/28/2019.
The Horizons Cadence Hedged US Dividend Yield ETF (“Fund”) seeks income and long-term growth of capital.
The ETF’s investment approach seeks to achieve these objectives by using a quantitative rules based methodology to select securities and construct a portfolio focusing on yield, eliminating concentration risk, while using index options to seek lower volatility and downside risk
|FUND DETAILS (As Of Jul 11, 2018)|
|Fund Net Assets||$32,672,931|
|Weighting||Weight Adjust Market Cap|
|Total Gross Expense Ratio||0.75%*|
|Total Net Expense Ratio||0.68%*|
A factor-focused ETF that seeks to provide an income solution with lower volatility
The Horizons Cadence Hedged US Dividend Yield ETF (Cboe: USDY) was developed in partnership between Cadence Capital Management and Horizons ETFs Management (US) LLC.
Cadence Capital Management is a Boston, MA based Investment Manager with approximately $4.5 billion in AUM* and a wholly owned subsidiary of Pacific Life Insurance Company.
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 with over $20 billion in ETF AUM.*
– Market Participation: Designed to potentially enhance portfolio returns through exposure to U.S. dividend-paying stocks selected by yield.
– Income Focused: USDY seeks to select companies with attractive above average dividends.
– Seeks a Measure of Portfolio Protection: Monthly Index options are used to create a collar strategy through selling call options and buying protective put options*. This may serve as a buffer to market selloffs, which may lower the volatility of the portfolio.
*Covered calls limit the upside potential of the underlying security; buying protective puts raise the break-even point of the underlying security by the amount paid for the put; and collars may involve multiple fees and charges payable by the Fund.
How USDY Works
Equity Universe: Cadence uses a quantitative approach to selecting a portfolio of US equities. Through the application of a screener on the members of the Russell 1000 Index, Cadence seeks to identify companies exhibiting a compelling risk reward profile who pay an above average dividend yield. The coupling of quantitative fundamental analysis and qualitative factor inputs afford the strategy the ability to produce an absolute total return.
Options Overlay: Horizons ETFs implements a hedge through a costless collar on up to 30% of the portfolio. This is achieved by writing S&P 500 index calls and using the proceeds to buy S&P 500 index puts. The quantitative investment process used specifically analyzes mean (average), volatility (standard deviation) and market prices to establish a pricing matrix and probability analysis.
QUARTER END PERFORMANCE (6/30/18)
|1 Mo||3 Mo||6 Mo||YTD||1 Yr||3 Yr||5 Yr||SIR*|
|USDY (Market Price)||0.28%||1.06%||–||–||–||–||–||-0.56%|
|Russell 1000 Index||0.25%||1.18%||–||–||–||–||–||0.45%|
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Returns less than one year are not annualized. An investor cannot invest directly in an index. Index returns do not represent Fund returns. The Index does not charge management fees or brokerage expenses, nor does the Index lend securities, and no revenues from securities lending were added to the performance shown.
NAV: The dollar value of a single share, based on the value of the underlying assets of the fund minus its liabilities, divided by the number of shares outstanding. Calculated at the end of each business day.
Market Price: The current price at which shares are bought and sold. Market returns are based upon the last trade price.
*Cumulative return since inception return on February 14, 2018.
|PRICE INFO (As Of Jul 11, 2018)|
|Day End Nav||$25.13|
|Nav Change ($)||$-0.27|
|Nav Change (%)||-1.05%|
|Day End Market Price||$25.22|
|Market Price Change ($)||$0.00|
|Market Price Change (%)||0.00%|
|Premium or Discount (%)||-0.97%|
|Ex-dividend Date||Record Date||Payment Date||Amount ($)||Distribution Period|
A portion of the distribution may include a return of capital. These do not imply rates for any future distributions. The ETF is not required to make distributions.
|Distribution Summary||As Of 3/31/18|
|30-day SEC Yield||2.55%|
|12-month Trailing Yield||0.85%|
Top 10 Holdings
|Gilead Sciences Inc||375558103||1.34%|
|General Electric Co||369604103||1.30%|
|Wells Fargo & Co||949746101||1.29%|
|Johnson & Johnson||478160104||1.29%|
|Texas Instruments Inc||882508104||1.29%|
|JPMorgan Chase & Co||46625H100||1.28%|
Holdings are subject to change. Download full holdings file here.
Investor Guide Horizons Cadence Hedged US Dividend Yield ETF
© 2018 Horizons ETFs Management (US) LLC. All Rights Reserved.
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.
Performance data quoted represents past performance and is no guarantee of future results. Investment return and principle value fluctuate, so that an investors shares, when redeemed, may be worth more or less than their original cost; and current performance may be higher or lower than the performance data quoted. Index returns are for illustrative purposes only. Investors cannot directly invest in an index and unmanaged index returns do not reflect any management fees, transaction costs or expenses. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with investments in the fund.
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.
The Fund engages in writing call and put Index options on the S&P 500 Index. By selling 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. Should the Fund sell uncovered calls, its exposure to potential loss is theoretically unlimited. By selling put options, the Fund may achieve a limited amount of downside protection that equals the purchase price of the underlying securities, minus the strike price of the option, plus the amount of options premium received. However, by writing Put options, the Fund may be required to purchase shares of underlying securities during periods in which market prices continue to decline. A liquid market may not exist for options held by the Fund.
Horizons ETFs Management (US) LLC is the investment adviser of the 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. 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.