Horizons ETFs lifts suspension of new subscriptions for ETF

By The IJ Staff | February 07 2018 11:30AM


Horizons ETFs Management (Canada) Inc. has announced the resumption of new subscriptions, with a temporary capped limit until further notice, for units of the BetaPro S&P 500 VIX Short-Term Futures 2X Daily Bull ETF, which trades on the TSX under the ticker symbol HVU. 

Horizons announced the suspension of new subscriptions for units of HVU early in the day on Feb. 6 due to extreme volatility in the VIX-futures markets that occurred during after-hours trading on Feb. 5. The suspension was lifted late in the day on Feb. 6.

New subscriptions capped

While lifting the suspension, Horizons has also introduced a limit on the amount of daily net new subscriptions that the ETF can accept “to 50 per cent of the issued and outstanding units of the ETF based on the prior trading day.”

Daily subscriptions into HVU will be accepted “on a first-come, first-served basis with no new subscriptions being accepted after the proposed daily limit is reached,” says Horizons.

Much riskier

Horizons added that investing in ETFs that seek to replicate either the performance or the inverse performance of the S&P 500 VIX Short-Term Futures Index is historically much riskier than investing in more traditional asset classes. “Despite the underlying volatility of investing in this assets class, Horizons ETFs remains committed to offering volatility-focused ETFs and will undertake all options available to ensure investors can continue to gain exposure to this asset class through its ETF offerings.”