Horizons ETFs Management (Canada) Inc. has announced it will not be accepting any new subscriptions for units of the BetaPro S&P 500 VIX Short-Term Futures Inverse ETF (HVI), which trades on the TSX.
Horizons does not expect HVI to be able to meet its current stated investment objective after the close of trading today. Redemptions on HVI will continue to be accepted in the normal course. After the close of trading today, Horizons anticipates that the performance of HVI will only correspond to approximately one-half times the inverse (opposite) multiple of the daily performance of the S&P 500 VIX Short Term Futures Index.
Horizons adds that purchases of new units at the available offer price on the secondary market are not expected to reflect the underlying net asset value per unit. Further, the secondary market will continue to provide unitholders with a forum to sell units at a price reflective of the net asset value per unit.
Of note, units of HVI are expected to trade at a substantial premium to their net asset value while subscriptions of new units are suspended. As a result, Horizons strongly discourages investors from purchasing new units of HVI at this time.
The firm is assessing various courses of action with respect to HVI, and currently intends to call a special meeting of unitholders as soon as possible
Horizons anticipates that the investment objective would change from seeking to correspond to one times the inverse (opposite) multiple of the daily performance of the S&P 500 VIX Short Term Futures Index, to seeking to correspond to one-half times the inverse (opposite) multiple of the daily performance of the S&P 500 VIX Short Term Futures Index.