Changes to two Horizons natural gas ETFs approved

By Staff | August 21, 2020 | Last updated on August 21, 2020
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Toronto-based Horizons ETFs Management (Canada) Inc. announced on Friday that proposed changes to two of its leveraged natural gas ETFs have been approved by unitholders.

The two funds — which will be renamed the BetaPro Natural Gas Leveraged Daily Bull ETF and the BetaPro Natural Gas Inverse Leveraged Daily Bear ETF — will now use variable amounts of leverage and track a proprietary index.

Currently, the two ETFs seek to double the daily value and the inverse daily value of their underlying index. Once the funds’ new investment objectives take effect, the ETFs will use variable leverage, up to a maximum of 200%.

In a release, Horizons said it has no immediate plans to change the current leverage ratio of the funds, or to change the current front-month futures exposure or roll-on methodology that the funds use.

The funds’ new underlying index, the Horizons Natural Gas Rolling Futures Index, will “endeavour to provide exposure to as close to the front-month natural gas futures contract as is deemed reasonable,” Horizons said in the release.

Changes to the funds’ investment objectives and underlying index are expected to take effect at the close of business on Aug. 27. The fund names will be changed as soon as practicable thereafter, Horizons said.

The ticker symbols for both funds will remain the same. staff


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