Canada’s only ETF using insider confirmation metrics in its stock selection.
May 9, 2018
As we potentially enter into an extension of the Canadian equity rally, the Horizons Cdn Insider Index ETF (“HII”) may offer an opportunity for investors to capture additional upside without taking on excessive levels of risk.
HII seeks to replicate, to the extent possible, the performance of the INK Canadian Insider Index (the “Index”), net of expenses. The INK Canadian Insider Index is designed to provide exposure to the performance of 50 TSX-listed stocks that hold positive metrics of a combination of fundamental valuations, insider commitment and price momentum.
HII uses a value-momentum factor approach, similar to a typical CPMS portfolio. It uses insider commitment to validate these rankings and then proceeds to equal-weight the constituents.
This methodology includes several components that we see as potentially advantageous for investors, as it:
- Seeks to uncover attractive stocks often overlooked – by focusing on the insider opportunity instead of size, HII is able to pick up on attractive holdings that could easily be overlooked by other models.
- Is designed to avoid concentration in a few large holdings – having an equal-weighting methodology gives the ETF more mid-cap bias, with less exposure to big banks than its market-weighted index counterparts (as represented by the S&P/TSX Composite Index).
- Provides a second layer of defense – by using insider trading as a validation/signal, you get more reassurance than simply buying because it has been going up.
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Key Details:
Ticker: HII
Management Fee: 0.65%*
Underlying Index: INK Canadian Insider Index
Eligibility: All registered and non-registered investment accounts
Distribution Frequency: Quarterly
Click here to download the
HII product sheet.
To learn more, speak with a Horizons ETFs representative toll-free at 1-866-641-5739. |
