Horizons ETFs Management (Canada) Inc. has launched an unhedged U.S.-dollar series of its Tactical Absolute Return Bond ETF.
The ETF, which is subadvised by DMAT Capital Management, can take long and short positions using leverage of up to 300% in North American and global debt instruments, including government debt, corporate debt, preferred shares and fixed income derivatives.
The fund’s investment objective is to provide positive absolute returns with low volatility over a market cycle regardless of market conditions or general market direction. Under normal market conditions, the fund is not expected to make any distributions, Horizons said.
Horizons launched two other series of the fund last December. Since then, the firm has “seen considerable interest across the investor spectrum for a U.S. dollar version that can also deliver absolute returns in what has been a challenging fixed income environment to navigate using traditional strategies,” said Steve Hawkins, president and CEO of Horizons, in a release.