New ETF at Horizons

Toronto-based Horizons Exchange Traded Funds Inc., along with its affiliate, AlphaPro Management Inc., has introduced a new exchange-traded fund (ETF) to its lineup. Horizons Active S&P/TSX 60 Index Covered Call ETF uses a covered-call strategy to generate additional income from the options-eligible stocks comprising the S&P/TSX 60 index. The investment objective is to provide investors with exposure to the performance, before fees and expenses, of the S&P/TSX 60 index, as well as monthly distributions of dividend and call-option income. The ETF will hold all 60 of the constituent stocks within the S&P/TSX 60 index in proportion to their respective weights in the index. The ETF will write covered-call options on the options-eligible securities in the portfolio to generate a tax-efficient, monthly distribution. The level of covered-call options writing may vary, based on market volatility and other factors. Eden Rahim, vice president and options strategist at Horizons Investment Management Inc., will manage the ETF.

(cohara@investmentexecutive.com).