Horizons ETFs Announces December 2018 Distributions for its Covered Call ETFs
TORONTO, Dec. 20, 2018 /CNW/ - Horizons ETFs Management (Canada) Inc. ("Horizons ETFs") is pleased to announce the distribution amounts per unit (the "Distributions") for its suite of covered call exchange traded funds (the "ETFs"), for the period ending December 31, 2018, as indicated in the table below.
The ex-dividend date for the Distributions is anticipated to be December 28, 2018, for all unitholders of record on December 31, 2018. The Distributions for units of each ETF will be paid in cash or, if the unitholder has enrolled in the respective ETF's dividend reinvestment plan ("DRIP"), reinvested in additional units of the applicable ETF, on or about January 11, 2019.
ETF Name | Ticker | Current Distribution | NAV | Current | Prior |
Absolute |
Horizons Enhanced Income Equity ETF | HEX | $0.03589 | -4.78% | 7.04% | 6.09% | 0.95% |
Horizons Enhanced Income Energy ETF | HEE | $0.05028 | -13.29% | 7.76% | 7.11% | 0.65% |
Horizons Enhanced Income Gold Producers ETF | HEP | $0.10430 | 3.62% | 5.75% | 5.59% | 0.16% |
Horizons Enhanced Income Financials ETF | HEF | $0.03836 | -6.44% | 6.05% | 5.72% | 0.33% |
Horizons Enhanced Income International Equity ETF | HEJ | $0.03210 | -4.05% | 7.06% | 6.88% | 0.18% |
Horizons Enhanced Income US Equity (USD) ETF(5) | HEA.U | $0.06490 | -4.13% | 7.25% | 6.16% | 1.09% |
HEA | $0.06490 | -1.89% | 7.25% | 6.16% | 1.09% | |
Horizons Gold Yield ETF | HGY | $0.01792 | 1.27% | 4.70% | 4.73% | -0.03% |
Horizons Natural Gas Yield ETF | HNY | $0.10911 | -3.28% | 9.46% | 8.01% | 1.45% |
(1) Based on the period from November 22, 2018 to December 19, 2018, where the prior month's NAV (net asset value) per unit is adjusted to include the prior month's distribution. (2) Annualized and based on the applicable December 19, 2018 NAV per unit, which is available at www.HorizonsETFs.com. |
(3) Annualized and based on the applicable November 22, 2018 NAV per unit, which is available at www.HorizonsETFs.com. |
(4) The absolute change of the prior month's previously announced annualized distribution yield, to the current month's annualized distribution yield. |
(5)Distributions for the Horizons Enhanced Income US Equity (USD) ETF are declared and paid in U.S. dollars, including those listed under the Canadian dollar-traded ticker HEA. The approximate Canadian dollar equivalent distribution rate for HEA is $0.08757 per unit. The approximate Canadian dollar equivalent for the estimated annual non-cash distribution rate for HEA in the table below is $0.24778 per unit. For unitholders who hold the Canadian dollar-traded HEA, distribution payments will typically be converted to Canadian dollars by the unitholder's account holder. |
Each ETF does not have a fixed distribution but pays distributions monthly. Distribution rates are generally based on the average current volatility of the securities held by the ETF, along with any dividend income received, less expenses payable by the ETF. The amount of monthly cash distributions are expected to fluctuate from month to month, and there can be no assurance that an ETF will make any distributions in any particular month or months. Monthly distributions will be paid in cash, unless the investor has chosen to participate in the ETF's reinvestment plan.
In addition to the cash distributions declared above, Horizons ETFs is also announcing today the estimated annual non-cash distributions (the "Non-Cash Distributions") to be distributed to unitholders for the 2018 tax year for the ETF in the table below.
The annual Non-Cash Distributions, indicated as "Reinvested Annual Non-Cash Distribution per Unit (Est.)" in the table, will not be paid in cash but will be reinvested and reported as taxable distributions and will be used to increase each unitholder's adjusted cost base of their units of the ETF. The Non-Cash Distributions will be reinvested automatically in additional units of the ETF and immediately consolidated so that the number of units held by the unitholder, the units outstanding of the ETF and the net asset value of the ETF will not change as a result of the Non-Cash Distributions. The annual Non-Cash Distribution rates in the table below are presented on an estimated basis. A press release confirming the final annual Non-Cash Distribution rates will be disseminated on or about the record date of the Distributions.
ETF Name | Ticker Symbol | Reinvested Annual Non- |
Horizons Enhanced Income US Equity (USD) ETF(5) | HEA.U | $0.18363 |
HEA | $0.18363 |
For certain ETFs, the annualized yield of the December distribution is not indicative of the actual annual yield of the ETF. For further information regarding the Distributions, please visit www.HorizonsETFs.com.
About Horizons ETFs Management (Canada) Inc. (www.HorizonsETFs.com)
Horizons ETFs Management (Canada) Inc. is an innovative financial services company and offers one of the largest suites of exchange traded funds in Canada. The Horizons ETFs product family includes a broadly diversified range of solutions for investors of all experience levels to meet their investment objectives in a variety of market conditions. Horizons ETFs has more than $9.8 billion of assets under management and 85 ETFs listed on major Canadian stock exchanges. Horizons ETFs Management (Canada) Inc. is a member of the Mirae Asset Global Investments Group.
Horizons ETFs is a member of Mirae Asset Global Investments. Commissions, management fees and expenses all may be associated with an investment in exchange traded products managed by Horizons ETFs Management (Canada) Inc. (the "Horizons Exchange Traded Products"). The Horizons Exchange Traded Products are not guaranteed, their values change frequently and past performance may not be repeated. The prospectus contains important detailed information about the Horizons Exchange Traded Products. Please read the relevant prospectus before investing.
SOURCE Horizons ETFs Management (Canada) Inc.
