The sole provider of Active ETFs in the Canadian market, Horizons AlphaPro, is set to expand its range of active products even further. Horizons AlphaPro announced on Feb 10, 2010 that they’ll be launching 3 new additions to their active portfolio with the addition of the AlphaPro Dividend ETF (NYSE:HAL), the AlphaPro North American Value ETF (NYSE:HAV) and the AlphaPro North American Growth ETF (HAW), all of which will be listed on the Toronto Stock Exchange.
Horizon AlphaPro’s existing line of Active ETFs consists of 5 products which include two actively-managed bond ETFs, one equity ETF and two multi-asset ETFs that invest across equities, bonds, commodities and currencies. One of the multi-asset ETFs includes the AlphaPro Gartman ETF, managed by the highly prominent Dennis Gartmen. The 3 new equity products will definitely appeal to investors looking for active management in equity markets but also the benefits of investing in ETFs.
1. The AlphaPro Dividend ETF will invest in high yielding North American equities and will be managed by Leon Frazer, CEO of Leon Frazer & Associates who are the sub-advisors to the fund. The will be aiming for regular income and modest capital appreciation.
2. The second North American Value ETF will also invest in North American equities and will look to achieve long-term capital appreciation and income. This will be managed by Vito Maida of Patient Capital Management, the sub-advisor, and will utilize a value investment style.
3. The third North American Growth ETF also invests in the same universe but aims for long-term capital growth and is managed by Stephen Rogers, VP at JovInvestment Management Inc. who is the investment manager.
Each of the 3 ETFs will be charging a 0.70% management fee, along with a 20% haircut of the amount by which the funds outperform the S&P500 Index.
All 3 managers have very strong track records with their respective firms and will use their reputation to help these new offerings gain traction. Horizons AlphaPro managed $123 million in assets as of Jan 31, 2010 and these new additions will no doubt add to the growth of the firm as well as the Active ETF space in the Canada. In the words of Ken McCord, President of AlphaPro – “We’re taking their unique investment styles and wrapping them up in an ETF structure that allows investors to get exposure to active management with low management fees.”
Disclosure: No positions in above-mentioned names.
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