Horizons ETFs, a Canada-based ETF provider, and Exchange Traded Concepts, a US-based private-label ETF advisor, have filed a registration statement with the Securities and Exchange Commission to issue three covered call ETFs in the United States.
Canada-based Horizons ETFs has teamed up with US private-label ETF advisor Exchange Traded Concepts to enter the US market with the launch of three covered call ETFs.
The Horizons-branded covered call ETFs are based on new indices from S&P that seek to increase yield and mitigate downside risk by using covered calls on the individual constituent securities in the indices.
The ETFs are:
Horizons S&P 500 Covered Call ETF
Horizons S&P Financial Select Sector Covered Call ETF
Horizons S&P Energy Select Sector Covered Call ETF
The Horizons ETFs group has been an active sponsor of ETFs in Canada, with more than 80 ETFs listed on the Toronto Stock Exchange and CAD$3.3 billion in assets under management. These new ETFs will be the first ETFs listed in the US market that will carry the Horizons ETFs brand name.
“We’ve had tremendous success in the Canadian market with our unique covered call ETFs, that use a dynamic buy-write process to reduce the risks associated with stock investing and generate monthly income,” said Howard Atkinson, CEO of Horizons ETFs. “We see the United States as a natural market for the extension of our firm’s current ETF line-up and believe that these innovative income generating strategies will be well-received by US investors.”
This new series of Horizons’ ETFs represents the latest endeavour by Exchange Traded Concepts to enable third-party investment managers to launch ETFs in the US market quickly and cost-effectively.
“We are excited to work with Horizons ETFs, given their successful track record in Canada and deep understanding of the ETF industry,” says J. Garrett Stevens, CEO of Exchange Traded Concepts. “This relationship will reinforce the value of leveraging our operational expertise to introduce new concepts to the ETF marketplace with a minimal initial time and capital investment. We expect more investment managers outside the United States to leverage our platform similarly to bring ETF product to our domestic markets.”