Monthly Archives

December 2018

Horizons ETFs announces December 2018 distributions for certain ETFs (INOC)

TORONTODec. 20, 2018 /CNW/ – Horizons ETFs Management (Canada) Inc. (“Horizons ETFs“) is pleased to announce the distribution amounts per unit (the “Distributions“) for certain of its exchange traded funds (the “ETFs“), for the 2018 tax year end, as indicated in the table below.

Each ETF is required to distribute any net income and capital gains that they have earned in the year. All of the Distributions indicated as “Cash Distribution per Unit” in the table (the “Cash Distributions”) will be paid in cash unless the unitholder has enrolled in the dividend reinvestment plan (“DRIP”) of the respective ETF.

The annual non-cash Distributions, indicated as “Reinvested Annual Non-Cash Distributions per Unit (Est.)” in the table (the “Non-Cash Distributions”), 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 respective ETF. The Non-Cash Distributions will be reinvested automatically in additional units of the respective ETFs and immediately consolidated so that the number of units held by the unitholder, the units outstanding of the ETFs and the net asset value of the ETFs 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.

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.

Horizons ETFs has made an additional announcement regarding the December distributions for its family of covered call ETFs in a separate press release.

 

View the Press Release

 

ETF Name

Ticker

Symbol

Cash

Distribution

per Unit

Annualized

Yield*

Frequency

Reinvested

Annual Non-

Cash

Distribution

per Unit

(Est.)

Horizons Blockchain Technology & Hardware Index ETF(1)

BKCH

$0.11908

0.68%

Annually

BKCH.U

$0.11908

0.68%

Annually

Horizons Global Sustainability Leaders Index ETF(2)

ETHI

$ 0.01050

0.35%

Quarterly

Horizons Active Corporate Bond ETF

HAB

$ 0.02872

3.28 %

Monthly

Horizons Seasonal Rotation ETF

HAC

Annually

$1.33911

Horizons Active Cdn Bond ETF

HAD

$ 0.02109

2.56 %

Monthly

Horizons Active Intl Developed Markets Equity ETF

HADM

$0.04488

2.01%

Quarterly

Horizons Active Global Fixed Income ETF

HAF

$ 0.02339

3.64 %

Monthly

Horizons Active Emerging Markets Dividend ETF

HAJ

$0.06248

2.01%

Quarterly

$0.11797

Horizons Active Cdn Dividend ETF

HAL

$0.12519

3.39%

Quarterly

Horizons Active US Dividend ETF(3)

HAU

$0.05879

2.03%

Quarterly

$0.08652

HAU.U

$0.05879

2.03%

Quarterly

$0.08652

Horizons Active Global Dividend ETF

HAZ

$0.11939

2.40%

Quarterly

$0.17347

Horizons China High Dividend Yield Index ETF

HCN

$0.40990

6.62%

Quarterly

$1.64109

Horizons Active Emerging Markets Bond ETF

HEMB

$ 0.03543

4.36%

Monthly

Horizons S&P/TSX 60 Equal Weight Index ETF

HEW

$0.07421

2.31%

Quarterly

Horizons Active Floating Rate Preferred Share ETF

HFP

$ 0.03014

4.41%

Monthly

Horizons Active Floating Rate Bond ETF

HFR

$ 0.02054

2.48%

Monthly

Horizons Managed Global Opportunities ETF

HGM

$0.06669

1.30%

Semi-Annual

Horizons Cdn Insider Index ETF

HII

$0.07320

2.96%

Quarterly

Horizons Marijuana Life Sciences Index ETF(4)

HMMJ

$ 0.28760

7.70%

Quarterly

HMMJ.U

$ 0.28760

7.70%

Quarterly

Horizons Active Cdn Municipal Bond ETF

HMP

$ 0.01700

2.09%

Monthly

Horizons Emerging Marijuana Growers Index ETF(5)

HMJR

$0.01168

0.84%

Horizons Canadian Midstream Oil & Gas Index ETF

HOG

$ 0.10848

5.66%

Quarterly

Horizons Active Preferred Share ETF

HPR

$ 0.03142

4.63%

Monthly

Horizons Global Risk Parity ETF

HRA

$0.06502

0.66%

Annually

Horizons Active Floating Rate Senior Loan ETF

HSL

$ 0.04155

5.32 %

Monthly

Horizons Active US Floating Rate Bond (USD) ETF(6)

HUF.U

$ 0.11758

14.13%

Monthly

HUF

$ 0.11758

14.13%

Monthly

Horizons Active High Yield Bond ETF

HYI

$ 0.05918

7.68%

Monthly

Horizons Inovestor Canadian Equity Index ETF

INOC

$ 0.04090

1.81%

Quarterly

Horizons Active A.I. Global Equity ETF

MIND

$0.03185

0.14%

Annually

Horizons Robotics and Automation Index ETF(7)

RBOT

$0.02643

0.15%

Annually

RBOT.U

$0.02643

0.15%

Annually

These 12 defensive TSX stocks combine value and quality

In the filter created this week for The Globe and Mail, we screened for Defensive TSX stocks that combine value and quality

The defensive nature of value investing makes it a go-to strategy during an economic or market downturn. Today, I look for value companies that are not necessarily trading at a discount but rather at a reasonable price, what we call “quality” investing. We are screening the Canadian market with an emphasis on quality companies – those that perform defensively compared with others, regardless of market volatility.

We screened the Canadian universe by focusing on the following criteria:

  • Market capitalization greater than $1-billion;
  • Positive one-year return (as of last month’s end);
  • Positive 12-month change in the economic value-added (EVA) metric – a positive figure shows us that the company’s profits are increasing at a faster and greater pace than the costs of capital. The EVA is the economic profit generated by the company and is calculated as the net operating profit after tax minus capital expenses;
  • Positive 12-month change in the economic performance index (EPI) and a current EPI greater than one – this ratio is the return on capital to cost of capital;
  • Average annual return on capital (ROC) over five years must be greater than 10 per cent;
  • Future-growth-value-to-market-value ratio (FGV/MV) is between 40 per cent and minus 70 per cent. The chosen range was selected to eliminate stocks that are at an exaggerated premium or discount as that would increase the risk. This ratio represents the proportion of the market value of the company that is made up of future growth expectations rather than the actual profit generated. The higher the percentage, the higher the baked-in premium for expected growth and the higher the risk.

Read more in this article written by Noor Hussain, Analyst & Account Executive at Inovestor Inc.

StockPointer® US and ADR Equities Model Portfolio Transactions – December 2018

We have rebalanced the Nasdaq Inovestor Global Index based on our US and ADR Model Portfolios, which will be effective on December 21st after market close. Here are the details for the US Model Portfolio:

Ins:

  1. Six Flags Entertainment Corporation (SIX) – Market Trend. Increase in Consumer Discretionary sector as seen in the Top 100 index therefore increasing our position in the portfolio.
  2. Blackstone Group L.P. (BX) – Market Trend. Increase in Finance sector as seen in the Top 100 index therefore increasing our position in the portfolio.
  3. Skyworks Solutions, Inc. (SWKS) –  Intra Sectorial transaction. WDS fell sharply in performance and is replaced by Skyworks Solution.
  4. Penske Automotive Group, Inc. (PAG) – Intra Sectorial transaction. Penske replacing CBRL as CBRL in no longer within SP score range and not in the top 20 of its sector.

Outs:

  1. Eastman Chemical Company (EMN) – Market Trend. Decrease in Materials sector as seen in the Top 100 index therefore decreasing our position in the portfolio.
  2. Clorox Company (CLX) – Market Trend. Decrease in Materials sector as seen in the Top 100 index therefore decreasing our position in the portfolio.
  3. Western Digital Corporation (WDC) –  SP Score. The company’s score fell sharply well below minimum level.
  4. Cracker Barrel Old Country Store, Inc.(CBRL) – SP Score. The company’s performance was stable, however many companies rose to better performance during the same period.

Here are the details for the International Model Portfolio:

Ins:

  1. Nielsen Holdings PLC (NLSN) – Market Trend. Increase in Consumer Discretionary sector as seen in the Top 100 index therefore increasing our position in the portfolio. There are talks to take the company private.
  2. Lazard Ltd Class A (LAZ) – Market Trend. Increase in Finance sector as seen in the Top 100 index therefore increasing our position in the portfolio.
  3. BBVA Banco Frances SA Sponsored ADR (BFR) – Market Trend. Increase in Finance sector as seen in the Top 100 index therefore increasing our position in the portfolio.

Outs:

  1. Ternium S.A. Sponsored ADR (TX) – Market Trend. Decrease in the Materials sector as seen in the Top 100 index.
  2. Industrias Bachoco SAB de CV Sponsored ADR Class B (IBA) – Market Trend. Decrease in Consumer Staples sector as seen in the Top 100 index.
  3. Allergan PLC (AGN) – Market Trend. Decrease in Healthcare sector as seen in the Top 100 index.

Twelve quality U.S. health care stocks for market uncertainty

In the filter created this week for The Globe and Mail, we screened for Quality US-listed Health Care companies

The health care industry is viewed as a defensive sector and as a hedge during market uncertainty. Today we look for quality U.S.-listed companies in that sector. To do that, we screened the U.S. health care universe, including American depositary receipts, by focusing on the following criteria:

  • Positive three-month and 24-month change in the economic value-added (EVA) metric – a positive figure shows us that the company’s profits are increasing at a faster and greater pace than the costs of capital. The EVA is the economic profit generated by the company and is calculated as the net operating profit after tax minus capital expenses;
  • Economic performance index (EPI) – the ratio of return on capital to cost of capital – must be greater than one;
  • Average five-year return on capital (ROC) must be greater than 10 per cent and the 12-month change in return on capital must be positive;
  • Future growth value/market value (FGV/MV). This ratio represents the proportion of the market value of the company that is made up of future growth expectations rather than the actual profit generated. The higher the percentage, the higher the baked-in premium for expected growth and the higher the risk.

Read more in this article written by Noor Hussain, Analyst & Account Executive at Inovestor Inc.