Horizon Investments Jumps Into ETF Space With 2 New Offerings
After nearly a decade of subadvising ETFs for First Trust, Horizon is making its push into the market.
Horizon Investments, a diversified asset management and financial advisory services platform, debuted two exchange-traded funds this week that will join its mutual fund lineup.
The Charlotte, North Carolina-based company, which manages nine of its own mutual funds and subadvises three ETFs for First Trust, rolled out two ETFs geared toward financial advisors in Horizon’s theme of goals-based investing models.
The Horizon Expedition Plus ETF (HBTA) is an actively managed fund that employs options strategies to generate higher volatility than the broad U.S. large-cap equity market, according to Clark Allen, who has been with Horizon for six years and was recently named to the newly created position of head of ETFs.
The Horizon Landmark ETF (BENJ) is an active total return strategy designed to fit an investor’s short-term equity sleeve, Allen said.
BENJ invests in U.S. Treasury Bills with maturities ranging from one to three months as well as ETFs that have substantial exposure to such T-bills. The ETF will also engage in options transactions such as spreads and other option combinations.
More ETFs on the Horizon
Horizon has been in the ETF business as a subadvisor since 2016 through the First Trust Horizon Managed Volatility Domestic ETF (HUSV) and the First Trust Horizon Managed Volatility Developed International ETF (HDMV). The First Trust Horizon Managed Volatility Small/Mid ETF (HSMV) was launched in 2020.
Horizon’s mutual fund lineup covers a range of equity and fixed-income strategies, including the use of options strategies, but Allen said there are no plans to convert or clone any existing mutual funds into ETFs. He added that the ETF space is a dedicated growth area for Horizon.
“This is a deliberate effort by the company," Allen said. “We’re strongly committed to the growth of the active ETF business, and we have a strong roadmap ahead.”
The company currently has no new ETFs filed with the Securities and Exchange Commission, he said.
The ETF plan followed 18 months of listening to clients' and advisors' wants and needs, Horizon President and Chief Executive John Drahzal said in a statement.
Horizon’s ETF debut follows a steady stream of newcomers to the ETF space over the past few weeks and follows the flow of assets into ETFs and out of mutual funds.