Crude oil futures might be returned to a bit of normalcy following the wild April experienced by the commodity. Horizons ETFs announced this morning that it has once again pre-scheduled the contract rollover of its BetaPro Crude Oil Daily Bull ETF (TSX: HOU) and BetaPro Crude Oil -1x Daily Bear ETF (TSX: HOD) ETF’s as trading becomes more typical in crude oil futures.
The ETF manager this morning announced that both of the ETF’s would rollover to the November contract on June 22, 2020 following discussions with the ETF counterparties related to the continued volatility of the commodity. This is an improvement, considering that the manager was previously taking a day-by-day approach due to the previous volatility, with the announcement just days ago that the ETF’s would be rolling over to the October contracts effective immediately. Any future rollovers will still be announced however, with a predefined schedule not yet being put in place.
Furthermore, the manager announced that the new roll methodology for the Horizons Crude Oil Rolling Futures Index will be proposed in the proxy meeting for the upcoming shareholders meeting of the ETF’s. If approved, the ETF’s will become a proprietary index that aims to track the closest front month oil futures contract as is determined to be reasonable by the manager based on overall market conditions.
If approved, the changes are expected to come into effect in early July 2020.
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