Sentences with phrase «tri etfs»

The counterparties used by Horizons TRI ETFs are all Canadian Schedule 1 Banks

Generally, TRI ETFs limit exposure of their assets to counterparties to a mandated maximum of 10 %.

Some of the relevant components of Horizons TRI ETFs are as follows:

TRI ETFs offered by Horizons ETFs that invest in foreign securities or fixed income securities will be charged a swap fee.

TRI ETFs are low - cost, index - replicating ETFs that use a synthetic replication structure to receive the pre-tax total return of an index.

In addition, tracking error is also reduced in TRI ETFs since there are no portfolio trading costs.

Unlike a physical replication ETF that typically purchases the securities found in the relevant index in the same proportions as the index, a TRI ETF is a synthetic structure that never buys the securities of an index directly.

The daily marked - to - market value of a swap is based upon the daily performance of the reference index, which is calculated on a total - return basis • The counterparty to a swap in a Horizon's TRI ETF must maintain the following minimum long - term debt credit rating: A (DBRS), A (Fitch), A2 (Moody's), A (Standard & Poor's).

One factor that is associated with a TRI ETF structure, as opposed to a physically replicated ETF structure, is counterparty risk.

The TRI ETF then provides the investor with the total return of the index through entering a Total Return Swap agreement with one or more counterparties, typically large financial institutions, which will provide the ETF with the total return of the index in exchange for the interest earned on the cash deposit.

Not exact matches

No distributions are received by the ETF using the TRI structure; therefore, no income is expected to be received by the ETF investors.

The above illustrative example highlights the expected after - tax performance benefits of holding a TRI Canadian Equity ETF versus another Canadian domiciled physically replicated Canadian Equity ETF in a non-registered account, assuming both ETFs earned / reflected a net 2 % dividend and track the exact same universe of stocks.

HXQ uses Horizons ETFs» innovative total return index («TRI») structure to provide tax - efficient exposure to the NASDAQ - 100 ®, in U.S. dollar terms.