BetaPro ETFs are rebalanced on a daily basis, so unlike traditional leverage strategies, which tend to use lending mechanisms such as margin, BetaPro
ETF unit holders will not lose more than their initial investment.
Not exact matches
As bonds mature during the year leading up to the termination date, the proceeds will be reinvested in cash and cash - equivalents and when the
ETF terminates, it will make a cash distribution to
unit holders equivalent to the
ETF's Net Asset Value.
By way of an example, a
holder of 1,000 advisor - class
units of the Horizons Active Corporate Bond
ETF (HAB.A) will receive 1,001 common class
units (HAB) of the same
ETF based on its Conversion Ratio.
Unit holders pay most taxes when they sell the
ETF, effectively deferring taxes until realized.