INK Research Corp., a Vancouver-based independent financial information firm providing insider news and knowledge, Tuesday announced the launch of INK Canadian Insider Index.
This broad stock market index is designed to measure the performance of 50 growth and value stocks listed on the Toronto Stock Exchange (TSX) that have significant insider buying and ownership.
The index employs the proprietary INK Edge V.I.P. screening process that uses valuations, insider commitment and price momentum factors to identify eligible stocks. The index, using these proprietary factors, reflects the returns of TSX listed growth and value stocks which are selected based on their insider ownership.
Insider buying generally refers to the level of ownership activity of a publicly traded company by its own employees, officers and directors. Historically, insider activity has been considered by analysts to be a strong predictor of future performance.
Horizons ETFs Management (Canada) Inc. has licensed the new index from INK and has filed a preliminary prospectus dated Nov. 17, in respect to a public offering of Class A units of the Horizons Cdn Insider Index ETF (Horizons HII).
The investment objective of Horizons HII is to seek to replicate, to the extent possible, the performance of the insider index, net of expenses. The fund will invest and hold the equity securities of the constituents in substantially the same proportion as the index.