NEW YORK, Feb. 14, 2018 (GLOBE NEWSWIRE) — Horizons ETFs Management (US) LLC (“Horizons US”), a member of one of the largest collective families of ETFs in the world, in partnership with Cadence Capital Management (“Cadence”), announces the launch of the Horizons Cadence Hedged US Dividend Yield ETF, which begins trading today on the Cboe BZX Exchange under the symbol “USDY.” Co-managed by Cadence and Horizons, USDY is a multi-factor ETF that seeks income and long-term growth of capital, with a strategy that seeks to potentially provide a measure of downside protection through the use of index options.
Developed for investors seeking income, long-term growth of capital and reduced volatility, the Horizons Cadence Hedged US Dividend Yield ETF invests in the dividend-paying stocks of large-cap companies within the market capitalization range of the Russell 1000 Index. USDY focuses on factors such as financial quality, company’s history in meeting earnings, dividend targets and earnings quality to create its portfolio. Hedging with index options seeks to provide lower overall portfolio volatility and enhance the risk-adjusted return profile for USDY. The hedge is achieved through a Collar or sale of an out-of-the-money Index Call option with proceeds going to the purchase of an out-of-the-money Index Put Option.
“The launch of USDY further exemplifies our ongoing commitment to offer investors unique approaches to sourcing income and alpha,” said Garrett Paolella, Managing Director at Horizons US. “Cadence is an industry leader with approximately $4.6 billion in assets that’s been managing yield-oriented equity strategies for institutional investors since 1988. They are an ideal partner for Horizons ETFs US and we are excited to continue developing this partnership through our joint commitment to launching innovative and value-added products,” noted Paolella.
“We are thrilled to be working with Horizons ETFs Management (US) on the launch of USDY. Their global reach through Mirae Asset Global Investments and dedication to providing investors with a unique approach to sourcing income and alpha makes them an ideal partner,” said Michael Skillman, CEO of Cadence Capital Management. “Combining our 30-years of investment experience and philosophy with Horizons’ ability to design easy-to-use products that meet diverse investment needs, we believe USDY will be an essential tool for investors seeking income and reduced volatility.”
USDY is part of a growing group of innovative ETFs offered by Horizons US, including the Horizons Nasdaq 100 Covered Call ETF (QYLD), Horizons S&P 500® Covered Call ETF (HSPX) and Horizons DAX Germany ETF (DAX).
About the Horizons ETFs Group (www.HorizonsETFsUS.com)
Horizons ETFs Management (US) LLC is a member of the Horizons ETFs Group. The Horizons ETFs Group consists of innovative financial services companies offering regional families of ETFs in Canada, Korea, Hong Kong, Australia, the United States and Colombia. Currently, all of the ETFs offered by these companies use the Horizons ETFs’ brand with the exception of the ‘BetaShares’ family of ETFs in Australia and the ‘Mirae Asset Tiger ETFs’ family in Korea. With over US $20 billion in assets under management and 237 ETF listings worldwide (as of December 31, 2017), the Horizons ETFs Group makes up one of the largest collective families of ETFs in the world. All of the Horizons ETFs Group companies and affiliates are subsidiaries of Mirae Asset Global Investments Co., Ltd.
About Cadence Capital Management
Founded in 1988, Cadence Capital manages approximately $4.6 billion on behalf of institutions, mutual funds and high net worth individuals. Cadence employs a disciplined, systematic investment approach across global equity markets to meet its client’s needs. For additional information, please visit www.CadenceCapital.com.
Before investing you should carefully consider each Funds’ investment objectives, risks, charges and expenses. This and other information is in their respective prospectus which can be found at www.horizonsetfsus.com. Please read the prospectus carefully before you invest. The Fund is distributed by Foreside Fund Services, LLC, which is not affiliated with Horizons ETFs Management (US) LLC or any of its affiliates.
There is no assurance that the Fund will meet its investment objective. The value of your investment in the Fund, as well as the amount of return you receive on your investment in the Fund, may fluctuate significantly. Active trading may result in higher brokerage costs or mark-up charges, which are ultimately passed on to shareholders of the Fund. Active trading may also result in adverse tax consequences. Past dividend payments are not a guarantee of future dividend payments. Also, the market return of high dividend yield securities, in certain market conditions, may perform worse than other investment strategies or the overall stock market. Also, a company may reduce or eliminate its dividend.
The Fund engages in writing call and put Index options on the S&P 500 Index. By selling call options, the Fund limits its opportunity to profit from an increase in the price of the underlying Index above the exercise price, but continues to bear the risk of a decline in the index. Should the Fund sell uncovered calls, its exposure to potential loss is theoretically unlimited. By selling put options, the Fund may achieve a limited amount of downside protection that equals the purchase price of the underlying securities, minus the strike price of the option, plus the amount of options premium received. However, by writing Put options, the Fund may be required to purchase shares of underlying securities during periods in which market prices continue to decline. A liquid market may not exist for options held by the Fund. Additionally, cashless collars may result in additional fees and charges payable by the Fund
Shares are bought and sold at market price (not NAV), are not individually redeemable, and owners of the Shares may acquire those Shares from the Funds and tender those shares for redemption to the Funds in Creation Unit aggregations only, consisting of 50,000 Shares. Brokerage commissions will reduce returns. Please visit www.US.HorizonsETFs.com or call 855-496-3837 if you have any questions.
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