Horizons ETFs has announced that it plans to close and liquidate its US-listed Horizons Cadence Hedged US Dividend Yield ETF (USDY US), which will see its last day of trading on 24 August 2018.
Co-managed by Cadence Capital Management, the fund is an actively managed multi-factor ETF that invests in US large-cap dividend payers while offering downside protection through the use of an option overlay strategy. It has a net expense ratio of 0.68%.
USDY was launched on Cboe BZX in February of this year and has accumulated nearly $35 million in assets under management which is certainly amongst the higher AUM levels of ETFs that get scheduled for closure.
Horizons is owned by Asia-based financial services business Mirae Asset Global Investments which bought a majority stake in the firm in November 2011. Mirae further anchored its presence in the US with the recent acquisition of Global X.
Horizons said the closure was “due to a change in business strategy”.
The other funds in Horizons’ US-listed stable of ETFs include the $18m Horizons DAX Germany ETF (DAX US), the $54m Horizons S&P 500 Covered Call ETF (HSPX US) and the $310m Horizons Nasdaq-100 Covered Call ETF (QYLD US).