Understanding Horizon's New ETFs
Horizon launched three new exchange-traded funds (ETFs) this year, representing its 10th, 11th, and 12th offerings. These funds have been introduced to help financial advisors create well-structured portfolios in turbulent market conditions.
Diverse Equity Opportunities
The latest offerings include a focus on both U.S. and international equities, with a strategy rooted in active management and the use of quantitative screens combined with tactical risk management techniques. This integrated approach aims to provide greater flexibility and responsiveness to market changes.
Horizon International Equity ETF
The lead fund, known as the Horizon International Equity ETF (NYSE: FRGN), adopts a globally diversified strategy. It focuses on seeking capital appreciation through a blend of active stock selection and quantitative allocations. This ETF strategically shifts across developed and emerging markets using multiple factors such as value, momentum, quality, volatility, and sentiment, while employing put-spread techniques that may enhance returns during unstable market periods.
Horizon Small/Mid Cap Core Equity ETF
Next in the lineup is the Horizon Small/Mid Cap Core Equity ETF (NYSE: SMOX). This fund leverages a similar multi-factor approach, focusing on smaller U.S. companies. It aims to identify varied return sources within the small and mid-cap universe, also integrating tactical put spreads to optimize total return potential.
Horizon International Managed Risk ETF
The final addition is the Horizon International Managed Risk ETF (NYSE: SFTX). While previous ETFs are geared towards growth, this fund is crafted with built-in risk management features. It automatically reduces exposure to equities during high volatility, utilizing Horizon's proprietary “Risk Assist” framework. The assets are then shifted towards U.S. Treasuries or cash equivalents, providing a safeguard against sharp downturns.
Rapid Expansion of Horizon's Offerings
With the launch of these three ETFs, Horizon has accelerated its growth in the ETF market, bringing its total to 12 funds within a single year. This expansion is part of a larger initiative aimed at addressing the challenges financial advisors face in managing portfolios effectively.
Insights from Leadership
Horizon’s head of product, Clark Allen, has reiterated that these launches are designed to meet advisors’ real-world portfolio management needs. The focus is on developing tools that yield substantive, outcome-driven results, helping investors adeptly navigate diverse market landscapes.
Frequently Asked Questions
What are the new ETFs launched by Horizon?
Horizon launched three new ETFs, including the Horizon International Equity ETF (FRGN), Horizon Small/Mid Cap Core Equity ETF (SMOX), and Horizon International Managed Risk ETF (SFTX).
What is the investment strategy of the Horizon International Equity ETF?
This ETF seeks capital appreciation through a mix of active stock selection and quantitative allocation, focusing on both developed and emerging markets.
How does the Horizon Small/Mid Cap Core Equity ETF operate?
This fund applies a multi-factor investment approach targeting U.S. small and mid-sized companies to capture diverse sources of returns.
What risk management features are included in the Horizon International Managed Risk ETF?
The ETF is designed to reduce equity exposure during high volatility periods and shifts assets into U.S. Treasuries or cash equivalents for cushioning against drawdowns.
How many ETFs does Horizon now offer?
Following the latest launches, Horizon’s suite now comprises a total of 12 ETFs, marking a significant expansion this year.
