Horizon Expands ETF Lineup With Two New Fixed-Income Funds

Horizon Investments launched two new fixed-income exchange-traded funds Thursday—the Horizon Core Bond ETF (BNDY) and the Horizon Flexible Income ETF (FLXN)—expanding its ETF offerings to seven total funds as the Charlotte-based firm builds out its product lineup with options-enhanced strategies.

BNDY and FLXN are both actively managed, with put spread overlays designed to manage risk while seeking enhanced returns, according to the company's announcement.

BNDY, FLXN Join Horizon Lineup

The two funds join three equity ETFs that Horizon launched last week, bringing the firm's total ETF count to seven as it builds what CEO John Drahzal called "a more complete range of choices" for financial advisors seeking both income strategies and risk management tools in today's markets.

BNDY focuses on investment-grade fixed-income securities, including government and corporate bonds, while employing put spread overlays to enhance return potential and manage market volatility exposure, according to the fund's prospectus. The fund carries a 0.65% management fee.

FLXN targets high-yield fixed-income securities with tactical allocation flexibility based on market conditions, also using put spread overlays for risk management, the prospectus shows. The fund charges a 0.8% management fee.

Both funds use Horizon's proprietary models to adjust exposure levels according to market conditions, according to the filing. The strategies aim to increase exposure when conditions appear favorable and reduce exposure during less favorable periods.

Equity ETF Suite Rounds Out Offerings

Last week's equity fund launches provide complementary strategies to the new fixed-income products, according to Horizon's announcement. The Horizon Core Equity ETF (STOX) uses a multi-factor active process seeking higher overall volatility than broad equity markets while employing put spreads to boost income and reshape risk exposure.

The Horizon Dividend Income ETF (DIVN) employs qualitative and quantitative analysis to identify companies with stable and growing dividend histories, aiming to provide current income and long-term capital appreciation opportunities.

Meanwhile, the Horizon Managed Risk ETF (SFTY) dynamically adjusts market exposure based on real-time volatility signals through the company's proprietary Risk Assist process, according to the announcement. The fund conducts daily market condition evaluations and reduces equity exposure during elevated volatility periods while maintaining opportunities for upside participation.

All funds are listed on the Chicago Board Options Exchange, according to the company. Scott Ladner, Mike Dickson, Zachary Hill and Clark Allen serve as co-portfolio managers for the new funds, the prospectuses show.