Horizons ETFs Changes Contract Exposure Of HOD, HOU Crude Oil ETF’s

Horizons ETF’s has updated the rollover schedule for its BetaPro Crude Oil Leveraged Daily Bull ETF (TSX: HOU) and the BetaPro Crude Oil Inverse Leveraged Daily Bear ETF (TSX: HOD) ETF’s. The two oil ETF’s which track the price of oil will now be primarily exposed to the second-month contract rather than that of the third-month oil futures contract.

The adjustment to which contract the ETF tracks will occur on August 20, 2020, when the rollover of the front month oil futures contract is to take place, with the October oil contract becoming the front month. With both ETF’s currently basing exposure on the November contract, rather than rollover to the December contract the ETF’s will remain with exposure to the November contract, effectively changing its exposure to the second-month contract.

The change is being conducted as a result of recent stabilization within the crude oil market, following wild pricing swings that occurred earlier this year as a result of the coronavirus pandemic. With crude oil prices demonstrating recent stability, the ETF manager is confident that the exchange traded funds can now begin to follow an earlier dated contract. The ETF’s as a whole have a mandate to provide exposure to as close to the front-month contract as is deemed reasonable by the manager.

Both HOD and HOU are expected to remain exposed to the November contract until at least September 22, 2020, which is the expiry for the current October contract. At this time it has not been identified whether the manager will remain exposed to the November contract beyond this date.

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