Horizons ETF’s announced after the bell last night an update to the firms contract exposure for that of the BetaPro Crude Oil Daily Bull ETF (TSX: HOU) and BetaPro Crude Oil -1x Daily Bear ETF (TSX: HOD). With the advent of the June contract rolling over yesterday, the two ETF’s will now follow the October crude oil contract.
The rollover of the ETF’s to the October contract is a result of Horizon’s looking for reduced volatility in the crude oil futures contract that it follows. Following the fireworks exhibited last month within the oil sector as a result of the ongoing coronavirus pandemic, the ETF manager was looking for any method to calm the wild day to day swings of the net asset value of the ETF’s.
Furthermore, the ETF manager will continue to decide on when to roll contracts forward to the next contract as a result of the ongoing volatility. Previously, this would occur automatically on the 10th trading day of each month.
The contract rollover is effective as of 2:30 PM on May 19, 2020.
Horizon’s HOU ETF currently has net assets of $72.4 million and a net asset value of $12.06 per share. The HOD ETF comparatively has net assets of $40.2 million and a net asset value of $12.91 per share.
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