Horizons China High Dividend Yield Index ETF (HCN)

Horizons China High Dividend Yield Index ETF (HCN)

ETF Snapshot

Name: Horizons China High Dividend Yield Index ETF

Launch Date: January 12, 2016

Ticker: HCN

Management Fee:* 0.70%

Underlying Index: Hang Seng High Dividend Yield Index (Total Return)

Bloomberg Index Ticker: HSI52

Distribution Frequency: Quarterly

Eligibility: All registered and non-registered investment accounts

Gain Exposure to a Leading Global Economy China is the world's second-largest economy (by GDP), presenting investors with a potentially lucrative opportunity.

Chinese dividend-paying companies also offer an opportunity for yield diversification, with various corporations within the region paying attractive dividend yields, while still providing meaningful exposure to the strong long-term growth of the Chinese market.

Access China's Highest Yielding Companies Hong Kong is an important market for mainland Chinese companies looking for foreign investment. Unlike China's tightly regulated A-shares markets, there is no quota for the amount of Hong Kong-listed stocks a foreign investor can buy. Chinese companies benefit from a much wider distribution scope through a Hong Kong listing. In addition:

? The Hong Kong financial sector is one of the largest and most developed in the world, ranking number one in the 2019 Index of Economic Freedom1

? Hong Kong's financial system is amongst the world's best when it comes to regulation, with the capacity to withstand a diversity of shocks2

The Horizons China High Dividend Yield Index ETF ("HCN") seeks investment results that, before fees and expenses, generally correspond to the performance of the Hang Seng High Dividend Yield Index (the "Underlying Index" or the "Index").

Key Features: ? High yielding: The Index is designed to provide higher yields than the Hang Seng Index, which is the benchmark equity index for Hong Kong-listed securities ? Diverse exposure: The Index provides broad exposure to a diversified portfolio of 50 Hong Kong-listed equities in a number of different sectors and share classes ? Lower risk vs. broad Chinese equities: Since HCN focuses on larger dividend paying equities, it could be expected to have a lower volatility than the broad Chinese equity market. This means HCN could be a lower-risk way for investors to tap into the long-term growth of the Chinese market

*Plus applicable sales tax.

1 Source: Heritage Foundation, index 2Source: International Monetary Fund, People's Republic of China ? Hong Kong Special Administrative Region: Financial System Stability Assessment, 2014.

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Horizons China High Dividend Yield Index ETF (HCN)

About the Hang Seng High Dividend Yield Index The Underlying Index aims to reflect the overall performance of high-yield securities listed in Hong Kong. It comprises 50 constituents and its universe comprises all stocks and REITs that have their primary listings on the Hong Kong Exchanges and Clearing Limited ("HKEX")

? Eligible stocks are large-cap or mid-cap constituents from the Hang Seng Composite Index ("HSCI") ? The top 50 stocks or REITs in terms of net dividend yield will be selected as constituents of the Hang Seng High Dividend Yield Index ? The Underlying Index is net-dividend, yield-weighted ? At each index rebalancing, the weighting for each constituent is capped at 10%. ? The Underlying Index is calculated and maintained by Hang Seng Indexes Company Limited

Index Selection Process

Selects from the entire Hong Kong-listed universe of large-cap and mid-cap stocks under the Hang Seng Composite Index and REITs

PORTFOLIO HOLDS 50 STOCKS WITH THE HIGHEST NET DIVIDEND YIELD The ETF acheives its exposure to the underlying Index through the purchase of units of the Mirae Asset Horizons Hang Seng High Dividend Yield ETF (the "Underlying ETF"). Accordingly, invertors in the ETF will also be subject, indirectly, to the fees and exposure of the underlying ETF

To learn more, please visit HCN

Commissions, management fees and applicable sales taxes all may be associated with an investment in the Horizons China High Dividend Yield Index ETF ("the ETF") managed by Horizons ETFs Management (Canada) Inc. The ETF is not guaranteed, its values change frequently and past performance may not be repeated. The prospectus contains important detailed information about the ETF. Please read the prospectus before investing.

The mark and name"Hang Seng High Dividend Yield Index"(the"Index") is proprietary to Hang Seng Data Services Limited ("HSDS") which has licensed its compilation and publication to Hang Seng Indexes Company Limited ("HSIL"). HSIL and HSDS have agreed to the use of, and reference to, the Index by Horizons ETFs Management (Canada) Inc. ("the Issuer") in connection with the Horizons China High Dividend Yield Index ETF (the"Product"). However, neither HSIL nor HSDS warrants, represents or guarantees to any person the accuracy or completeness of the Index, its computation or any information related thereto and no warranty, representation or guarantee of any kind whatsoever relating to the Index is given or may be implied. Neither HSIL nor HSDS accepts any responsibility or liability for any economic or other loss which may be directly or indirectly sustained by any person as a result of or in connection with the use of and/or reference to the Index by the Issuer in connection with the Product, or any inaccuracies, omissions or errors of HSIL in computing the Index. Any person dealing with the Product shall place no reliance whatsoever on HSIL and/or HSDS nor bring any claims or legal proceedings against HSIL and/or HSDS in any manner whatsoever. For the avoidance of doubt, this disclaimer does not create any contractual or quasi-contractual relationship between any broker or other person dealing with the Product and HSIL and/or HSDS and must not be construed to have created such relationship. For further information please go to .

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