Horizons ETFs launches Canada's first swap-based bond index ETF

By Jennifer Chiou

New York, May 8 - Horizons ETFs Management (Canada) Inc. announced the launch of the Horizons Cdn Select Universe Bond exchange-traded fund, which will provide exposure to the Canadian investment-grade bond universe and seeks to replicate the performance of the Solactive Canadian Select Universe Bond index.

According to a press release, the ETF began trading Thursday on the Toronto Stock Exchange under the symbol "HBB."

The release noted that the ETF will be the first fixed-income ETF in Canada to use the total return swap structure employed by Horizons ETFs' suite of total return swap equity ETFs.

"[The fund] is an example of how indexing in the fixed-income space can be made better by both improving the underlying index and utilizing a TRS structure to reduce the potential for tracking error and improve tax efficiency," Howard Atkinson, president of Horizons ETFs, said in the release.

Based in Toronto, Horizons ETFs and its affiliate AlphaPro Management Inc. are financial services companies.

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