ETF Focus List - CIBC Wood Gundy

Transcription

Investment Strategy Group
ETF Focus List
February 2014
TROY KILLICK, CFA
Director, Investment Funds
RICHARD WOO
ETF Specialist
JIMMY MOK, MBA, P.ENG
Senior Manager, Investment Funds
Internal Use Only
Investment Strategy Group CIBC Wood Gundy ETF Focus List
The Canadian Exchange-Traded Fund (ETF) market continues to grow, with over
300 ETFs, nine issuers and approximately $63 billion of assets under management.
This growth has been driven and accelerated by evolution and innovation, much
of which come from the U.S. by way of U.S. ETF providers opening offices in
Canada or building on ideas from the U.S. marketplace. We are encouraged by this
continued flow of new product which has served to provide investment advisors
with better access to various asset classes and investment strategies in an efficient
investment vehicle.
To support our advisors in this burgeoning space, we are pleased to announce the
launch of the CIBC Wood Gundy ETF Focus List. This publication is in addition to
other ETF publications currently provided including the Exchange-Traded Funds
Quarterly and the publication of trade ideas in the Monthly World Market Report and
the Equity Week Ahead.
The CIBC Wood Gundy ETF Focus List is broadly categorized and then further
delineated into passive, intelligent-indexing and actively-managed ETFs. Each ETF
on the list is supported by a one-page sheet with a broad overview of the ETF,
performance, key information and highlights. We believe this provides investment
advisors with an additional tool in creating more robust portfolios in the everchanging landscape of the financial markets.
Troy Killick, CFA
Director
Richard Woo
ETF Specialist
- Internal Use Only -
Jimmy Mok, MBA, P.Eng
Senior Manager
2
A Banner Year On Many Fronts
2013 In Review
Global Indices 2013 Performance
Despite the announcement of ‘tapering’ by the Fed, the
U.S. government shutdown, and a host of other
Nikkei-225 Stock Average
59.3%
negative headlines, 2013 was a strong year for U.S. and
S&P 500 Index
32.4%
global equities. The S&P 500 surged 32.4%, while the
MSCI World Index
27.5%
MSCI World Index was not far behind at a very
German
Stock
Index
25.5%
respectable 27.5%. The depreciation of the Canadian
dollar also added to these gains, pushing the Canadian
MSCI EAFE Index
23.6%
dollar returns on these indexes to 41.4% and 36.2%,
FTSE Eurotop 100 Index
19.2%
respectively. On the home front, the S&P/TSX
S&P/Tsx Composite Index
13.0%
Composite Index (TSX) returned 13.0%, improving
Hang Seng Index
6.6%
upon the 2012 performance of 7.2%. Weighing on the
MSCI Emerging Markets Index
TSX was the Materials sector, which fell 30.6% on the
-2.3%
back of weak metals prices, especially in the precious
-20%
0%
20%
40%
60%
metals sector. The TSX Global Gold Index, which fell
Source: CIBC Wood Gundy, Bloomberg
47% last year, has shown some signs of recovery in
January, with the index advancing 16.6% in the first
month of the year.
In the fixed-income universe, the ever-resilient Canadian Government bond market has finally posted a
negative year with a 2.0% decline. While there is generally a consensus on the general direction of interest rates, the
rate of change is the topic of much debate.
Proliferation Of ETFs
The Canadian Exchange-Traded Funds (ETF) industry ended the year with approximately $63 billion in assets under
management on the back of $4.7 billion net inflow and strong market appreciation. BMO Asset Management was the
clear winner in 2013, leading the pack with $3.2 billion in net new creation. Although it does not appear that
BlackRock iShares Canada, the long-standing incumbent with the most assets under management in Canada, is in
danger of losing its top spot, it may well see its percentage market share decline in this increasingly competitive
space.
A total of 35 ETFs were created in 2013, garnering close to $1.5 billion in total assets by the end of the year.
Notably, Som Seif, the founder of the ETF provider Claymore, returned to the ETF scene with his new company,
Purpose Investments. Purpose had a good start with its launch of five ETFs. Roughly 40% of the firm’s $171 million
in assets reside in the Purpose High Interest Savings ETF (PSA-TSX) which was launched to provide another vehicle
to hold assets in high-interest deposit accounts with one
or more chartered banks. The fund had an impressive
Canadian ETF Flow In 2013
initial inflow of assets but the flow has plateaued since
Equity flow: $2,507MM
December.
Record Year Of Flow Into Equity ETFs
Fixed Income flow: $1,074MM
Equity Preferred flow: $1,218MM
Others flow: -$102MM
$1,500
2013 marked another spectacular year of net inflow into
equity ETFs, garnering more than $2.5 billion in assets.
The fear of tapering and rising interest rates caused
investors to shy away from fixed-income ETFs in the
second half of 2013, with total net outflow of $838
million during that period.
$1,000
$500
$0
-$500
-$1,000
Jan-13
Mar-13
May-13
Jul-13
Sep-13
Nov-13
Source: CIBC Wood Gundy, Toronto Stock Exchange, Bloomberg
3
Equity ETF Flow in 2013
Equity Canada flow: -$943MM
Equity U.S. flow: $2,150MM
$1,500
Equity Global/International flow: $1,248MM
Equity North America flow: $51MM
$1,000
$500
$0
-$500
-$1,000
-$1,500
Jan-13
Mar-13
May-13
Jul-13
Sep-13
Nov-13
Within the equity sleeve, it was no surprise that U.S.
equity-based ETFs experienced the majority of inflows
with $2.2 billion of new assets. Global and
Internationally-focused ETFs came in second place,
with a total of $1.2 billion in new assets. Canadafocused equity ETFs came in last, with a net outflow of
$943 million.
Although it is still early in the year, 2014 is
shaping up to be an interesting year with many new
ETF launches expected, both in the domestic landscape
as well as listed on the U.S. exchanges. It could well be
the case that the asset gatherers of 2013 could be the
laggards in the year ahead. Only time will tell.
Source: CIBC Wood Gundy, Bloomberg
4
CIBC Wood Gundy ETF Focus List
Introduction
The Canadian ETF market continues to grow, with more TSX-listed ETFs year over year. The Investment Funds
Group at CIBC Wood Gundy is publishing an ETF Focus List to help CIBC Wood Gundy Investment Advisors (IAs)
and their clients select and invest in ETFs. In order to compile a comprehensive list of ETFs that would be suited for
a broad universe of potential investors, we are setting forth a method and selection criteria for ETFs and their
respective asset classes. Our goal is to keep the selection criteria simple and relevant to provide the best exposure for
any particular asset class.
The CIBC Wood Gundy ETF Focus List contains 41 ETFs which we believe represent the best options for
implementing a long-term asset allocation or for executing a tactical trade. A detailed discussion on our selection
process is contained in the next section, but, at a high level, it can be summarized by the acronym T.T.C, which
stands for trading, tracking & cost.
There is no secret sauce or quantitative model that drives the selection process. Instead, we segment the full
listing of TSX-listed ETFs into narrow categories and review each category constituent against our expectations and
its peers. In this way we can best identify and highlight the most attractive ETFs for each category.
We look for ETFs that provide sufficient liquidity, allowing investors to make reasonably-sized trades at
prices close to net asset value (NAV). We approach liquidity from various angles, including conducting volume and
bid/ask analysis as well as holding discussions with traders, market makers and the capital markets team. Tracking
is one of the most important and broad areas of the analysis of ETFs. Tracking refers to how closely an ETF replicates
the performance of a particular index. In an ideal world where tracking error does not exist, an ETF net asset value’s
return, gross of fees, should be identical to the underlying index’s net return over any time period. When we look at
tracking, we also look closely at what the ETF is tracking and the methodology behind the index. As the proliferation
of ETFs continues and the industry matures, we expect we will encounter a more-varied landscape of ETFs with
similar broad objectives and different indices to satisfy investors’ needs and goals. Lastly, cost is a factor that is of
critical importance, especially for similar ETFs with similar methodologies and objectives.
The ETFs on the Focus List are supported by an individual sheet that provides relevant information to our
advisors. This includes a description and historical performance of the ETF and our reasons for adding it to the list.
All supporting materials will be posted on our ETF intranet page.
Selection Process
We use a variety of databases to screen the quantitative aspects of the ETFs which are available to Canadian
investors. In particular, data is typically sourced from Bloomberg, SEDAR, the Toronto Stock Exchange, industry
contacts and ETF providers. We use a multi-factor analytical framework to screen, score and select ETFs that are
suitable for a wide range of investors. The ultimate goal is to understand the spectrum of ETFs in order to identify
the ETFs that are suitable for a broad universe of investors.
While the framework below provides insight into our process, it is certainly not exhaustive in its description.
Furthermore, the ETFs selected for the CIBC Wood Gundy ETF Focus List are not exhaustive of the useful ETFs listed
in Canada. The increasingly competitive landscape has provided for lower fees in certain areas, particularly in ETFs
based on the broad passive indexes where there may be only a small advantage. We have sought to present what we
believe to be the most attractive options and, where appropriate, have noted similar options or alternatives.
1) Tradability and Liquidity: The ability to trade at a price close to the NAV is imperative to the investor. An
analysis of the liquidity of an ETF must go well beyond looking at the average daily volume traded or the Level 1
quote. Liquidity needs to be reviewed both from the primary and secondary market perspectives. Amongst other
factors, we tend to focus on historical bid-ask spread analysis, true market depth and a review of the composition
and liquidity of the underlying securities. Prior to constructing the focus list, we held due diligence meetings with
various ETF providers, capital markets teams and traders to ensure we understand and select the ETFs with strong
liquidity.
5
2) Management Fee: The ETF universe tends to be highly fee sensitive, especially in passive broad market ETFs
where fees are the primary driver of a recommendation of one ETF over another. In areas where ETFs have become
commoditized, fees could be a critical deciding factor. While the lowest-cost ETF is desirable, we will screen for the
most cost-efficient ETFs which can meet their investment mandates. All else being equal, the lowest-cost ETF will
provide the best value for CIBC Wood Gundy’s clients.
3) Tracking Error: We prefer ETFs that track their underlying index with minimal tracking error, regardless of the
market phase and regardless of whether it’s a bear, bull, or flat market. Based on the ETF’s structure, strategy and
rebalancing frequency, we will prefer ETFs that have an acceptable level of tracking error. ETFs not tracking an
index, such as an actively-managed ETF, will be subject to the other quantitative and qualitative criteria.
4) Asset Under Management: We prefer ETFs that have a minimum size of $50.0 million. Smaller ETFs may be
considered if there is a unique method or style that makes them attractive as long-term investments.
5) Leverage: The ETF Focus List will not include ETFs that are leveraged long or short, nor will it contain inverse
ETFs. An ETF is leveraged when it uses financial derivatives and/or debt to amplify the returns of the underlying
index. Typically, the amount of leverage stays at a constant level where the ETF would seek twice or triple the
performance of the index. An inverse ETF tracks the opposite performance of the index.
6) Tax Efficiency: Characterization of distributions are important for investors who have non-registered accounts.
We will consider the distribution size, frequency and history during our selection process. ETFs which use
derivatives such as total return swaps to replicate the performance of an index may provide a more tax-efficient
structure for investors in non-registered accounts.
7) Weighting Method: ETFs which use different weighting methods on the same underlying index may have a
significant impact on the total return. We will analyze and compare ETFs to ensure that the Focus List has a good
variety of methods.
8) Concentration: Individual security and sector exposure limits may vary across ETFs. We consider ETFs that offer
the best diversification to investors and will highlight any differences.
9) Portfolio Construction and Composition: We consider the portfolio construction methodology and the end index
composition that it creates. It is important to understand how the methodology selects and weights securities in an
index to understand the characteristics and biases of the index.
10) Rebalancing: The frequency and method in which an ETF rebalances may impact the performance of the ETF
compared to that of its underlying index and peers.
6
Correlation of Major Indices
Correlation can be a useful tool in constructing portfolios. According to the modern portfolio theory, a portfolio of
asset classes with low correlations to one another can serve to reduce the overall portfolio volatility. Investment
advisors should keep in mind that correlations could change over time and may converge during market stress.
Correlation tables can provide a good starting point in identifying asset classes to provide additional portfolio
diversification. The CIBC Wood Gundy ETF Focus List contains ETFs, which we believe provide the best exposure to
the respective asset classes including the ones listed below.
S&P/TSX
C omposite
Index
S&P/TSX C omposite Index
S&P 500 Index
NASDAQ C omposite Index
Dow Jones Industrial Average
MSC I World Index
MSC I EAFE Index
MSC I Emerging Markets Index
MSC I C hina Index
MSC I India Index
Nikkei 225
GOLD SPOT $/OZ
DEX Universe
1.00
0.80
0.76
0.74
0.81
0.75
0.81
0.72
0.66
0.33
0.41
-0.25
S&P 500
Index
0.80
1.00
0.94
0.98
0.97
0.89
0.80
0.65
0.58
0.55
0.10
-0.33
NASDAQ
C omposite
Index
0.76
0.94
1.00
0.88
0.91
0.84
0.79
0.65
0.59
0.58
0.09
-0.36
Dow Jones
Industrial
Average
0.74
0.98
0.88
1.00
0.93
0.85
0.74
0.60
0.52
0.51
0.10
-0.31
MSC I World MSC I EAFE
Index
Index
0.81
0.97
0.91
0.93
1.00
0.98
0.87
0.73
0.66
0.60
0.15
-0.30
0.75
0.89
0.84
0.85
0.98
1.00
0.87
0.74
0.67
0.62
0.16
-0.25
MSC I
Emerging
Markets
Index
0.81
0.80
0.79
0.74
0.87
0.87
1.00
0.90
0.82
0.48
0.29
-0.20
MSC I C hina MSC I India
Index
Index
0.72
0.65
0.65
0.60
0.73
0.74
0.90
1.00
0.70
0.42
0.29
-0.23
0.66
0.58
0.59
0.52
0.66
0.67
0.82
0.70
1.00
0.35
0.23
-0.10
Nikkei 225
0.33
0.55
0.58
0.51
0.60
0.62
0.48
0.42
0.35
1.00
-0.28
-0.43
GOLD SPOT DEX
$/OZ
Universe
0.41
0.10
0.09
0.10
0.15
0.16
0.29
0.29
0.23
-0.28
1.00
0.16
-0.25
-0.33
-0.36
-0.31
-0.30
-0.25
-0.20
-0.23
-0.10
-0.43
0.16
1.00
Source: CIBC Wood Gundy, Bloomberg. Data is compiled using 5-Year monthly total returns.
7
Summary of CIBC Wood Gundy ETF Focus List
CATEGORY
C anadian Broad Market
TICKER
EXCHANGE TRADED FUND
METHODOLOGY
ZLB
HXT
BMO Low Volatility C anadian Equity ETF
Horizons S&P/TSX 60 Index ETF
Passive
Passive
XIU
iShares S&P/TSX 60 Index Fund
Passive
Pg 11
HAL
Horizons Active C anadian Dividend ETF
Actively Managed
Pg 12
PXC
PowerShares FTSE RAFI C anadian Fundamental Index ETF
Intelligent Indexing
Pg 13
Pg 9
Pg 10
C anadian Dividend
C DZ
iShares S&P/TSX C anadian Dividend Aristocrats Index Fund
Passive
Pg 14
C anadian Preferred Shares
HPR
Horizons Active Preferred Share ETF
Actively Managed
Pg 15
C anadian Small C ap
XC S
iShares S&P/TSX SmallC ap Index Fund
Passive
Pg 16
C anadian Value
FXM
First Asset Morningstar C anada Value Index ETF
Pg 17
C anadian Momentum
WXM
First Asset Morningstar C anada Momentum Index ETF
Pg 18
C anadian Fixed Income
HAB
Horizons Active C orporate Bond ETF
Actively Managed
Pg 19
HFR
Horizons Floating Rate Bond ETF
Actively Managed
Pg 20
C BO
iShares 1-5 Year Laddered C orporate Bond Index Fund
Passive
Pg 21
C LF
iShares 1-5 Year Laddered Government Bond Index Fund
Passive
Pg 22
XC B
iShares DEX All C orporate Bond Index Fund
Passive
Pg 23
XSB
iShares DEX Short Term Bond Index Fund
Passive
Pg 24
XBB
iShares DEX Universe Bond Index Fund
Passive
Pg 25
ZDJ
BMO Dow Jones Industrial Average Hedged to C AD Index ETF
Passive
Pg 26
C UD
iShares S&P US Dividend Growers Index Fund (C AD-Hedged)
Passive
Pg 27
ZSP
BMO S&P 500 Index ETF
Passive
Pg 28
VSP
Vanguard S&P 500 Index ETF (C AD-Hedged)
Passive
Pg 29
U.S. Broad Technology Market QQC
PowerShares QQQ C AD Hedged Index ETF
Passive
Pg 30
U.S. Fixed Income
XHY
iShares US High Yield Bond Index Fund (C AD-Hedged)
Passive
Pg 31
U.S. Small C ap
XSU
iShares Russell 2000 Index Fund (C AD-Hedged)
Passive
Pg 32
HAZ
Horizons Active Global Dividend ETF
Actively Managed
Pg 33
C JP
iShares Japan Fundamental Index Fund
Pg 34
XIN
iShares MSC I EAFE Index Fund (C AD-Hedged)
Passive
Pg 35
XWD
iShares MSC I World Index Fund
Passive
Pg 36
C HI
iShares C hina All-C ap Index Fund
Passive
Pg 37
XID
iShares C NX Nifty India Index Fund
Passive
Pg 38
VEE
Vanguard FTSE Emerging Markets Index ETF
Passive
Pg 39
ZWU
BMO C overed C all Utilities ETF
Actively Managed
Pg 40
ZRE
BMO Equal Weight REITs Index ETF
Passive
Pg 41
ZUT
BMO Equal Weight Utilities Index ETF
Passive
Pg 42
ZEB
BMO S&P/TSX Equal Weight Banks Index ETF
Passive
Pg 43
HEP
Horizons Enhanced Income Gold Producers ETF
Actively Managed
Pg 44
U.S. Broad Market
International/Global Equity
Emerging Markets
Sector Funds
Specialty
XST
iShares S&P/TSX C apped C onsumer Staples Index Fund
Passive
Pg 45
XEG
iShares S&P/TSX C apped Energy Fund
Passive
Pg 46
XGD
iShares S&P/TSX Global Gold Index Fund
Passive
Pg 47
C GL
iShares Gold Bullion ETF
Passive
Pg 48
HAC
Horizons Seasonal Rotation ETF
Actively Managed
Pg 49
8
BMO Low Volatility Canadian Equity ETF
Canadian Broad Market
OVERVIEW
SNAPSHOT
The BMO Low Volatility Canadian Equity ETF seeks to provide exposure to a low-betaweighted portfolio of Canadian stocks. The fund utilizes a rules-based methodology to
select the least market-sensitive stocks based on the one year beta.
Ticker
Price
Management Expense Ratio
Trailing 12-Mo. Yield
Distribution Frequency
Inception Date
Number of Holdings
ZLB - TSX
$20.77
0.40%
2.12%
Quarterly
10/27/2011
41
Net Assets
6-Mo. Average Daily Volume
$160 MM
43,385
Category
Benchmark
Methodology
Underlying Index
S&P/TSX Composite Index
Passive
n/a
PERFORMANCE HISTORY - GROWTH OF $10,000
BMO Low Volatility Canadian Equity ETF
$15,000
$14,601
$14,000
$13,000
$12,000
$11,000
$10,000
$9,000
$8,000
Oct-11
KEY POINTS

Holdings consist of 40 stocks with the lowest one-year beta from the 100
largest and most liquid Canadian TSX-listed securities

Securities are weighted by allocating more weight to those with a lower
beta

Maximum exposure to an individual stock or sector are capped at 10%
and 35% respectively

Rebalances semi-annually
Feb-12
Trailing Performance (%)
ETF
Benchmark
Annual Performance (%)
ETF
Benchmark
Jun-12
YTD
2.3
0.8
Oct-12
1M
2.3
0.8
2009
35.0
Feb-13
3M
3.5
3.3
6M
8.7
11.4
2010
17.6
1YR
20.8
11.4
2011
-8.7
Jun-13
3YR
3.3
Oct-13
5YR
12.8
2012
13.9
7.2
10YR
7.6
2013
20.7
13.0
ASSET ALLOCATION
METRICS
Standard Deviation
Sharpe Ratio
52-Week High
52-Week Low
1YR
7.1
2.8
3YR
-
5YR
-
$20.81 - 01/21/2014
$17.63 - 02/14/2013
TOP HOLDINGS
Canadian Equity
U.S. Equity
International Equity
Fixed Income
Cash
Other
Total
99.4%
0.0%
0.0%
0.0%
0.6%
0.0%
100%
SECTOR ALLOCATION
Alimentation Couche-Tard Inc.
Bell Aliant Inc
Metro Inc.
4.1%
4.0%
3.8%
Cons Staples
Energy
18.7%
15.1%
BCE Inc
3.6%
Financials
14.6%
Dollarama, Inc.
3.5%
Telecom.
12.4%
Fairfax Financial Holdings Ltd
3.5%
Utilities
12.1%
Empire Company Limited
3.2%
Cons Disc.
11.4%
Canadian Utilities Ltd
3.1%
Materials
4.9%
Franco-Nevada Corp
2.9%
Health Care
4.6%
George Weston Limited
2.8%
Info Tech
Industrials
Total
4.6%
1.7%
100.0%
Source: CIBC Wood Gundy, BMO Asset Management, Bloomberg
Performance and price date as at January 31, 2014. All other information dated as at January 31, 2013. Allocation may not add up to 100% due to rounding and long rescaling.
9
OVERVIEW
SNAPSHOT
The Horizons S&P/TSX 60 Index ETF seeks to replicate the performance of the S&P/TSX 60
Index (Total Return), net of expenses.
Ticker
Price
Inception Date
Number of Holdings
HXT - TSX
$24.39
0.07%
n/a
n/a
09/15/2010
n/a
Net Assets
$872 MM
912,769
Category
Benchmark
Methodology
Underlying Index
Passive
S&P/TSX 60 Index
$13,000
$12,062
$12,000
$11,000
$10,000
$9,000
$8,000
Sep-10
KEY POINTS
Mar-11
ETF
Benchmark

Tracks the S&P/TSX 60 Index through the use of total return swap
contracts

Lowest management expense ratio for an ETF tracking the Canadian
equity market

Market-cap. weighted

Does not own the underlying shares

U.S. dollar version (HXT.U-TSX) is available
ETF
Benchmark
Sep-11
YTD
0.5
0.8
Mar-12
1M
0.5
0.8
2009
35.0
Sep-12
3M
3.0
3.3
6M
11.4
11.4
2010
17.6
1YR
11.2
11.4
2011
-9.0
-8.7
Mar-13
3YR
3.2
3.3
Sep-13
5YR
12.8
2012
7.8
7.2
10YR
7.6
2013
13.2
13.0
ASSET ALLOCATION
METRICS
Standard Deviation
Sharpe Ratio
52-Week High
52-Week Low
1YR
8.1
1.3
3YR
10.4
0.2
Canadian Equity
U.S. Equity
Fixed Income
Cash
Other
Total
5YR
-
$25.04 - 01/22/2014
$20.66 - 06/24/2013
TOP HOLDINGS
100.0%
0.0%
0.0%
0.0%
0.0%
0.0%
100%
SECTOR ALLOCATION
ROYAL BANK OF CANADA
TORONTO-DOMINION BANK (THE)
BANK OF NOVA SCOTIA (THE)
8.3%
7.5%
6.5%
Financials
Energy
35.3%
25.0%
SUNCOR ENERGY INC.
4.5%
Materials
10.4%
CANADIAN NATIONAL RAILWAY CO.
4.1%
Industrials
7.1%
BANK OF MONTREAL
3.7%
Cons Disc.
6.6%
CANADIAN NATURAL RESOURCES LIMITED
3.2%
Telecom.
6.4%
MANULIFE FINANCIAL CORPORATION
3.1%
Cons Staples
3.7%
Health Care
3.6%
VALEANT PHARMACEUTICALS INTERNATIONAL, INC. 3.1%
3.1%
ENBRIDGE INC.
Info Tech
Utilities
Total
1.2%
0.8%
100.0%
Source: CIBC Wood Gundy, Horizons Exchange Traded Funds, Bloomberg
Performance and price date as at January 31, 2014. All other information dated as at December 31, 2013. Allocation may not add up to 100% due to rounding and long rescaling.
10
OVERVIEW
SNAPSHOT
Ticker
Price
Inception Date
Number of Holdings
XIU - TSX
$19.79
0.18%
2.67%
Quarterly
09/28/1999
60
The iShares S&P/TSX 60 Index Fund seeks to replicate the performance of the S&P/TSX 60
Index through investments in the constituent issuers of the index, net of expenses.
Net Assets
$12,546 MM
7,147,788
Category
Benchmark
Methodology
Underlying Index
Passive
S&P/TSX 60 Index
$20,733
$20,000
$18,000
$16,000
$14,000
$12,000
$10,000
$8,000
Jan-04
KEY POINTS

Tracks the S&P/TSX 60 Index by directly holding the underlying
components of the index, which are comprised of 60 Canadian large-cap.
securities selected with a view to match the sector allocation of the

Largest and oldest Canadian-listed ETF


Advisor may consider the lower cost Horizon S&P/TSX 60 Index ETF
(HXT-TSX) which provides exposure to the index through the use of total
return swap contracts
Jan-06
ETF
Benchmark
ETF
Benchmark
Jan-08
YTD
0.5
0.8
1M
0.5
0.8
2009
31.3
35.0
Jan-10
3M
3.1
3.3
2010
13.9
17.6
Standard Deviation
Sharpe Ratio
52-Week High
52-Week Low
3YR
10.3
0.2
5YR
12.9
0.8
$20.30 - 01/23/2014
$16.96 - 06/24/2013
TOP HOLDINGS
1YR
11.2
11.4
2011
-9.3
-8.7
3YR
3.1
3.3
5YR
11.5
12.8
2012
7.9
7.2
Jan-14
10YR
7.6
7.6
2013
13.1
13.0
ASSET ALLOCATION
METRICS
1YR
8.1
1.3
6M
11.6
11.4
Jan-12
Canadian Equity
U.S. Equity
Fixed Income
Cash
Other
Total
99.8%
0.0%
0.0%
0.0%
0.0%
0.2%
100%
SECTOR ALLOCATION
ROYAL BANK OF CANADA ORD
TORONTO DOMINION ORD
BANK OF NOVA SCOTIA
8.1%
7.2%
6.0%
Financials
Energy
36.5%
22.7%
SUNCOR ENERGY INC.
4.3%
Materials
12.2%
CANADIAN NATIONAL RAILWAY COMPANY
4.0%
Industrials
7.3%
VALEANT PHARMACEUTICALS INTERNATIO
3.8%
Telecommunications
6.3%
BANK OF MONTREAL ORD
3.6%
Consumer Discretionary
5.6%
CANADIAN NATURAL RESOURCES LIMITED
3.3%
Health Care
4.9%
ENBRIDGE INC
3.1%
Consumer Staples
2.6%
MANULIFE FINANCIAL CORP
3.0%
Information Technology
Utilities
Total
1.2%
0.8%
100.1%
Source: CIBC Wood Gundy, BlackRock iShares Canada, Bloomberg
11
Horizons Active Canadian Dividend ETF
OVERVIEW
SNAPSHOT
The Horizons Active Canadian Dividend ETF seeks long-term total returns consisting of
regular dividend income and modest long-term capital growth. The ETF invests primarily in
equity securities of major North American companies with above-average dividend yields.
Ticker
Price
Inception Date
Number of Holdings
HAL - TSX
$13.17
0.99%
3.27%
Monthly
02/10/2010
n/a
Net Assets
$12 MM
3,633
Category
Benchmark
Methodology
Underlying Index
Actively Managed
n/a
Horizons Active Canadian Dividend ETF
$15,000
$14,148
$14,000
$13,000
$12,000
$11,000
$10,000
$9,000
$8,000
Feb-10
KEY POINTS
Aug-10
Feb-11
ETF
Benchmark

Actively managed by Sri Iyer and his team at Guardian Capital LLP

Uses a multi-factor quantitative model to select dividend stocks

Investment philosophy is based on growth, predictability and
sustainability of dividends

Invests primarily in North American equities with above-average dividend
yields

Since inception, holdings had been concentrated in Canadian equities

May invest up to 10% in fixed-income securities

Advisor series (HAL.A-TSX) pays a trailer of 75bps and carries a
management fee of 1.45%

U.S. dollar exposure will be hedged
ETF
Benchmark
Standard Deviation
Sharpe Ratio
52-Week High
52-Week Low
3YR
9.5
0.7
5YR
-
$13.64 - 01/20/2014
$11.58 - 06/24/2013
TOP HOLDINGS
1M
-1.9
0.8
2009
35.0
Feb-12
3M
4.3
3.3
Aug-12
6M
9.0
11.4
2010
17.6
1YR
11.4
11.4
2011
-0.5
-8.7
Feb-13
3YR
8.1
3.3
Aug-13
5YR
12.8
2012
8.8
7.2
10YR
7.6
2013
19.8
13.0
ASSET ALLOCATION
METRICS
1YR
7.0
1.5
YTD
-1.9
0.8
Aug-11
Canadian Equity
U.S. Equity
Fixed Income
Cash
Other
Total
99.2%
0.0%
0.0%
0.0%
0.8%
0.0%
100%
SECTOR ALLOCATION
BANK OF NOVA SCOTIA
BANK OF MONTREAL
3.6%
3.6%
3.5%
Financials
Energy
28.2%
27.1%
SUN LIFE FINANCIAL INC
3.5%
Industrials
14.6%
KEYERA CORP
3.2%
Cons Disc.
12.4%
METHANEX CORP
3.2%
Materials
7.5%
TORONTO-DOMINION BANK
3.1%
Info Tech
5.7%
DAVIS + HENDERSON CORP
3.0%
Telecom.
2.9%
CINEPLEX INC
3.0%
Cons Staples
0.9%
AIMIA INC
2.9%
Cash
0.8%
Total
100.0%
12
PowerShares FTSE
RAFI Canadian Fundamental Index ETF
OVERVIEW
SNAPSHOT
The PowerShares FTSE RAFI Canadian Fundamental Index ETF seeks to replicate, before
fees and expenses, the performance of the FTSE RAFI Canada Index. This ETF gives
investors exposure to all Canadian equities in the FTSE RAFI Developed ex U.S. 1000
Index, a fundamentally-weighted index.
Ticker
Price
Inception Date
Number of Holdings
PXC - TSX
$22.84
0.50%
2.72%
Quarterly
01/26/2012
88
Net Assets
$127 MM
34,099
Category
Benchmark
Methodology
Underlying Index
FTSE RAFI Canada Index
PowerShares FTSE RAFI Canadian Fundamental Index ETF
$13,000
$12,307
$12,000
$11,000
$10,000
$9,000
$8,000
Jan-12
KEY POINTS

Invests in the Canadian constituents of the FTSE RAFI Developed ex US
1000 Index

Weightings are based on the Research Affiliates Fundamental Indexes
(RAFI) methodology by factoring in sales, cash flow, book value and
dividends

The index weights holdings by its ‘fundamental size’ factors rather than
the market cap. which may be more subject to market speculation and
overvaluation
Apr-12
Jul-12
ETF
Benchmark
ETF
Benchmark
YTD
-0.4
0.8
Oct-12
1M
-0.4
0.8
2009
35.0
Jan-13
3M
0.8
3.3
Apr-13
6M
8.7
11.4
2010
17.6
1YR
12.0
11.4
2011
-8.7
Jul-13
3YR
3.3
Oct-13
5YR
12.8
2012
7.2
Jan-14
10YR
7.6
2013
16.4
13.0
ASSET ALLOCATION
METRICS
Standard Deviation
Sharpe Ratio
52-Week High
52-Week Low
1YR
9.4
1.2
3YR
-
5YR
-
$23.54 - 01/21/2014
$19.89 - 04/18/2013
TOP HOLDINGS
Canadian Equity
U.S. Equity
Fixed Income
Cash
Other
Total
97.2%
2.6%
0.2%
0.0%
0.0%
0.0%
100%
45.6%
26.5%
SECTOR ALLOCATION
BANK OF NOVA SCOTIA
11.7%
6.7%
4.4%
Financials
Energy
MANULIFE FINANCIAL CORP
4.3%
Materials
7.6%
SUNCOR ENERGY INC
4.0%
Cons Disc.
5.6%
BANK OF MONTREAL
3.6%
Industrials
3.9%
ENCANA CORP
3.1%
Cons Staples
3.4%
CANADIAN NATURAL RESOURCES
2.7%
Telecom.
2.6%
CAN IMPERIAL BK OF COMMERCE
2.7%
Info Tech
2.0%
SUN LIFE FINANCIAL INC
2.4%
Utilities
Health Care
Total
1.9%
0.9%
100.0%
Source: CIBC Wood Gundy, Invesco PowerShares, Bloomberg
13
iShares S&P/TSX Canadian
Dividend Aristocrats Index Fund
Canadian Dividend
OVERVIEW
SNAPSHOT
The iShares S&P/TSX Canadian Dividend Aristocrats Index Fund aims to replicate the
S&P/TSX Canadian Dividend Aristocrats Index, less fees and expenses. To qualify,
securities must: a) be a common stock or an income trust listed on the TSX and in the S&P
Canada Broad Market Index; b) have increased ordinary cash dividends every year for 5
years, but can maintain the same dividend for a maximum of 2 consecutive years within
that 5-year period; c) have a minimum C$300 million float-adjusted market cap.
Ticker
Price
Inception Date
Number of Holdings
CDZ - TSX
$24.49
0.66%
3.50%
Monthly
09/07/2006
66
Net Assets
$1,054 MM
140,327
Category
Benchmark
Methodology
Underlying Index
Canadian Dividend
Passive
S&P/TSX Canadian Dividend
Aristocrats Index
$17,000
iShares S&P/TSX Canadian Dividend Aristocrats Index Fund
$16,444
$15,000
$13,000
$11,000
$9,000
$7,000
KEY POINTS
Based on the S&P/TSX Canadian Dividend Aristocrats Index which
provides exposure to Canadian dividend grower stocks
$5,000
Sep-06

To remain in the index, a company must have increased ordinary cash
dividends every year for 5 years, but can maintain the same dividend for
a maximum of 2 consecutive years within that 5-Year period
ETF
Benchmark

Holdings are weighted by the indicated dividend yield, up to a maximum
weight of 8%; the index will hold at least 40 securities

Differs from the iShares Dow Jones Canada Select Dividend Index Fund
(XDV-TSX) as XDV selects stocks based on the 30 highest-yielding stocks

Advisor series (CDZ.A-TSX) pays a trailer of 75bps and carries a

Sep-07
Sep-08
ETF
Benchmark
YTD
-0.1
0.8
Sep-09
1M
-0.1
0.8
2009
38.4
35.0
Sep-10
3M
2.8
3.3
Sep-11
6M
7.6
11.4
2010
15.7
17.6
1YR
8.1
11.4
2011
6.1
-8.7
Sep-12
3YR
9.0
3.3
5YR
17.4
12.8
2012
8.9
7.2
Sep-13
10YR
7.6
2013
13.5
13.0
ASSET ALLOCATION
METRICS
1YR
6.8
1.0
Standard Deviation
Sharpe Ratio
52-Week High
52-Week Low
3YR
7.7
1.0
5YR
11.9
1.4
$25.03 - 01/21/2014
$21.66 - 06/24/2013
TOP HOLDINGS
Canadian Equity
U.S. Equity
Fixed Income
Cash
Other
Total
99.9%
0.0%
0.0%
0.0%
0.1%
0.0%
100%
SECTOR ALLOCATION
EXCHANGE INCOME CORP.
A.G.F. MANAGEMENT LTD. CL B
BIRD CONSTRUCTION INC.
4.0%
3.4%
3.3%
Financials
Energy
23.3%
16.3%
ENBRIDGE INCOME FUND HOLDINGS INC.
3.3%
Industrials
15.7%
NORTHERN PROPERTY REIT
3.2%
14.1%
EMERA INC
2.6%
7.8%
BCE INC
2.5%
Utilities
6.9%
WI-LAN INC.
2.4%
Telecommunications
6.2%
LAURENTIAN BANK OF CANADA
2.2%
Consumer Staples
5.4%
SHAW COMMUNICATIONS INC. CL B
2.1%
Materials
4.1%
Total
99.9%
14
Canadian Preferred Shares
OVERVIEW
SNAPSHOT
Ticker
Price
Inception Date
Number of Holdings
HPR - TSX
$9.83
0.62%
4.38%
Monthly
11/22/2010
n/a
Net Assets
$252 MM
172,672
The Horizons Active Preferred Share ETF seeks to provide dividend income while preserving
capital by investing primarily in preferred shares of Canadian companies.
$12,000
S&P/TSX Preferred Share Index
$11,276
$11,500
Category
Benchmark
Methodology
Underlying Index
Canadian Preferred Shares
S&P/TSX Preferred Share Index
Actively Managed
n/a
Weighted Average YTM (%)
Weighted Average Term
4.96%
$11,000
$10,500
$10,000
$9,500
$9,000
Nov-10
s.o.
KEY POINTS

Actively managed by Nicolas Normandeau and his team at Fiera Capital
Corp. Mr. Normandeau has been the lead manager on this ETF since
2012

Focused on the Canadian preferred share market but may include U.S.
issuers


Holdings will generally have investment-grade ratings

Advisor series (HPR.A-TSX) pays a trailer of 50bps and carries a
Apr-11
Sep-11
ETF
Benchmark
ETF
Benchmark
Standard Deviation
Sharpe Ratio
52-Week High
52-Week Low
3YR
2.9
0.9
1M
0.4
0.9
2009
27.0
Jul-12
3M
0.8
0.6
6M
0.6
-0.1
2010
7.7
Dec-12
1YR
-0.7
-2.4
2011
6.8
5.8
3YR
3.6
2.8
2012
5.8
5.5
Oct-13
5YR
7.7
10YR
-
2013
-0.6
-2.6
7.5%
69.4%
20.8%
P1
P2
P3
5YR
-
$10.55 - 02/19/2013
$9.62 - 08/19/2013
TOP HOLDINGS
May-13
ASSET ALLOCATION
METRICS
1YR
3.6
-0.5
YTD
0.4
0.9
Feb-12
Total
98%
SECTOR ALLOCATION
MANULIFE FINCL CORP NNCUM CL A PFD SER 4
BANK OF NOVA SCOTIA NC PRF SER 16
SUN LIFE FNCL INC CL A NON CUM SER 1
2.1%
1.9%
1.7%
Financials
Energy
ROYAL BANK CDA NC 5YR PRF 1 SER AX
1.5%
Communication
6.3%
BANK OF MONTREAL NC PP CL B SR 14
1.5%
Infrastructure
6.2%
HSBC BANK CANADA CLS 1 PRF SER C
1.4%
Consumers
2.1%
ROYAL BANK CDA NC 1ST PFD SR AE
1.4%
Cash
1.9%
TRANSCANADA CORP 1ST PRF SER 7
1.3%
Other
1.3%
BROOKFIELD OFFICE PP CL AAA PFR SER L
1.3%
BANK OF NOVA SCOTIA NC RESET PRF SER 32
1.2%
68.6%
13.7%
Total
100.0%
15
iShares S&P/TSX SmallCap Index Fund
Canadian Small Cap
OVERVIEW
SNAPSHOT
The iShares S&P/TSX SmallCap Index Fund seeks to replicate the performance of the
S&P/TSX SmallCap Index, net of expenses. The index is comprised of the smaller marketcap. securities listed on the TSX, selected by S&P using its industrial classifications and
guidelines for evaluating issuer capitalization, liquidity and fundamentals.
Ticker
Price
Inception Date
Number of Holdings
XCS - TSX
$15.63
0.60%
2.20%
Quarterly
05/14/2007
219
Net Assets
$148 MM
72,583
Category
Benchmark
Canadian Small Cap
S&P/TSX SmallCap Index
Methodology
Underlying Index
Passive
iShares S&P/TSX SmallCap Index Fund
$11,000
$9,301
$9,000
$7,000
$5,000
$3,000
May-07
KEY POINTS

Only Canadian-listed ETF specifically focused on Canadian small-cap.
equities on the TSX

Historically, holdings were concentrated in energy and materials sectors


Market cap. of the holdings can range from $100 million to $1.5 billion,
other eligibility factors are the same for the S&P/TSX Composite Index
May-08
ETF
Benchmark
ETF
Benchmark
May-09
YTD
1.3
1.7
May-10
1M
1.3
1.7
2009
58.3
62.3
May-11
3M
4.1
4.6
6M
11.9
12.8
2010
35.6
35.0
1YR
6.3
6.6
2011
-17.2
-16.5
May-12
3YR
-3.9
-3.5
May-13
5YR
14.1
14.3
2012
-2.6
-2.2
10YR
3.4
2013
7.7
7.5
ASSET ALLOCATION
METRICS
Standard Deviation
Sharpe Ratio
52-Week High
52-Week Low
1YR
10.2
0.5
3YR
16.2
-0.3
5YR
17.4
0.8
$16.14 - 01/21/2014
$12.93 - 06/24/2013
TOP HOLDINGS
Canadian Equity
U.S. Equity
Fixed Income
Cash
Other
Total
99.0%
0.0%
0.0%
0.0%
0.0%
1.0%
100%
SECTOR ALLOCATION
AIR CANADA CL B
CAPITAL POWER CORP.
SECURE ENERGY SERVICES INC.
1.8%
1.6%
1.5%
Energy
Materials
26.0%
23.5%
SUPERIOR PLUS CORP.
1.3%
Industrials
14.5%
HUDBAY MINERALS INC
1.3%
Financials
13.9%
RONA INC.
1.1%
7.0%
FIRSTSERVICE CORP.
1.1%
Utilities
5.2%
DOMINION DIAMOND CORP.
1.1%
4.1%
LAURENTIAN BANK OF CANADA
1.1%
Consumer Staples
3.8%
PARKLAND FUEL CORP.
1.1%
Health Care
2.1%
Total
100.0%
16
First Asset
Morningstar Canada Value Index ETF
Canadian Value
OVERVIEW
SNAPSHOT
Ticker
Price
Inception Date
Number of Holdings
FXM - TSX
$13.90
0.62%
1.75%
Quarterly
02/15/2012
30
Net Assets
$100 MM
69,804
The First Asset Morningstar Canada Value Index ETF has been designed to replicate the
performance of the Morningstar Canada Value Index, net of expenses. The ETF invests in
equity securities of the largest and most liquid Canadian issuers based on proprietary
research generated by Morningstar, and is designed to provide diversified exposure to
Canadian issuers which are considered to be ‘good value’, based on characteristics like low
price-to-earnings and low price-to-cash flow ratios.
First Asset Morningstar Canada Value Index ETF
$14,000
$13,806
$13,000
Category
Benchmark
Methodology
Underlying Index
Canadian Value
Morningstar Canada Value Index
$12,000
$11,000
$10,000
$9,000
$8,000
Feb-12
KEY POINTS

Morningstar Canada Value Index is comprised of liquid Canadian
securities listed on the TSX that are considered to be ‘good value’
companies

Morningstar CPMS applies a rules-based methodology to score stocks
based on five key equally-weighted factors: price-to-earnings, price-tobook-value, price-to-sales, price-to-cash-flow and 3-month earnings
estimate revisions

30 holdings with a maximum of 5 holdings per sector

Equally-weighted and rebalances quarterly

Historically, the holdings have been biased towards mid-cap. stocks

Advisor series (FXM.A-TSX) pays a trailer of 75bps and carries a
May-12
Aug-12
ETF
Benchmark
ETF
Benchmark
YTD
0.2
0.8
Nov-12
1M
0.2
0.8
2009
35.0
Feb-13
3M
0.6
3.3
Standard Deviation
Sharpe Ratio
52-Week High
52-Week Low
3YR
-
1YR
21.7
11.4
2011
-8.7
Aug-13
3YR
3.3
Nov-13
5YR
12.8
2012
7.2
10YR
7.6
2013
27.2
13.0
ASSET ALLOCATION
5YR
-
$14.17 - 01/21/2014
$11.51 - 02/26/2013
TOP HOLDINGS
6M
8.8
11.4
2010
17.6
METRICS
1YR
6.2
3.3
May-13
Canadian Equity
U.S. Equity
Fixed Income
Cash
Other
Total
99.6%
0.0%
0.0%
0.0%
0.4%
0.0%
100%
SECTOR ALLOCATION
West Fraser Timber Co Ltd
Canfor Corp
Magna International Inc
3.9%
3.8%
3.7%
Consumer Staples
Industrials
16.6%
16.2%
Capital Power Corp
3.6%
13.8%
Atco Ltd/Canada
3.5%
Energy
13.0%
Cogeco Cable Inc
3.5%
Financials
12.3%
WSP Global Inc
3.5%
Materials
11.0%
Alimentation Couche Tard Inc
3.5%
Utilities
10.5%
Finning International Inc
3.5%
6.5%
Encana Corp
3.5%
Health Care
Telecommunications
Total
0.0%
0.0%
99.9%
Source: CIBC Wood Gundy, First Asset Exchange Traded Funds, Bloomberg
17
First Asset Morningstar
Canada Momentum Index ETF
Canadian Momentum
OVERVIEW
SNAPSHOT
The First Asset Morningstar Canada Momentum Index ETF has been designed to replicate
the performance of the Morningstar Canada Momentum Index, net of expenses. The
investment strategy of the First Asset Morningstar Canada Momentum Index ETF is to
invest in and hold constituent securities of the Morningstar Canada Momentum Index.
Ticker
Price
Inception Date
Number of Holdings
WXM - TSX
$13.69
0.62%
1.56%
Quarterly
02/15/2012
30
Net Assets
$75 MM
56,120
Category
Benchmark
Methodology
Underlying Index
Canadian Momentum
Morningstar Canada Momentum
Index
First Asset Morningstar Canada Momentum Index ETF
$14,000
$13,810
$13,000
$12,000
$11,000
$10,000
$9,000
$8,000
Feb-12
KEY POINTS

Morningstar Canada Momentum Index is comprised of liquid Canadian
securities listed on the TSX that have demonstrated positive momentum
in earnings and price

Morningstar CPMS applies a rules-based methodology to score stocks
based on six key factors: trailing ROE, 3-month fiscal EPS estimate
revision, latest quarterly earnings surprise, price change from 3 and 9
months ago and percentage change in price from 12-month highs

30 holdings with a maximum of 5 holdings per sector

Equally-weighted and rebalances quarterly

Historically, the holdings have been biased towards mid-cap. stocks

Advisor series (WXM.A-TSX) pays a trailer of 75bps and carries a
May-12
Aug-12
ETF
Benchmark
ETF
Benchmark
YTD
1.8
0.8
Nov-12
1M
1.8
0.8
2009
35.0
Feb-13
3M
4.9
3.3
Standard Deviation
Sharpe Ratio
52-Week High
52-Week Low
3YR
-
1YR
23.0
11.4
2011
-8.7
Aug-13
3YR
3.3
Nov-13
5YR
12.8
2012
7.2
10YR
7.6
2013
26.8
13.0
ASSET ALLOCATION
5YR
-
$13.92 - 01/21/2014
$11.20 - 06/24/2013
TOP HOLDINGS
6M
15.8
11.4
2010
17.6
METRICS
1YR
7.2
3.0
May-13
Canadian Equity
U.S. Equity
Fixed Income
Cash
Other
Total
99.7%
0.0%
0.0%
0.0%
0.3%
0.0%
100%
SECTOR ALLOCATION
Valeant Pharmaceuticals International Inc
West Fraser Timber Co Ltd
Constellation Software Inc/Canada
4.1%
3.8%
3.7%
Industrials
Materials
15.6%
13.9%
Canfor Corp
3.7%
12.6%
Magna International Inc
3.6%
Consumer Staples
10.2%
Methanex Corp
3.6%
Energy
10.2%
Saputo Inc
3.5%
Telecommunications
9.9%
Inter Pipeline Ltd
3.5%
Financials
9.4%
Raging River Exploration Inc
3.5%
6.9%
TELUS Corp
3.5%
Utilities
Health Care
Total
6.8%
4.1%
99.6%
Source: CIBC Wood Gundy, First Asset Exchange Traded Funds, Bloomberg
18
Horizons Active Corporate Bond ETF
Canadian Fixed Income
OVERVIEW
SNAPSHOT
The Horizons Active Corporate Bond ETF seeks long-term moderate capital growth and
seeks to generate high income. The ETF invests in a portfolio of debt securities of Canadian
and U.S. companies, directly, or through investments in securities of other investment
funds, including exchange-traded funds. The ETF seeks to hedge its non-Canadian dollar
currency exposure to the Canadian dollar at all times.
Ticker
Price
Inception Date
Number of Holdings
HAB - TSX
$10.63
0.57%
3.30%
Monthly
07/15/2010
n/a
Net Assets
$492 MM
126,558
Category
Benchmark
Methodology
Underlying Index
DEX Universe Bond Index
Actively Managed
n/a
3.36%
Horizons Active Corporate Bond ETF
$13,000
$12,500
$11,991
$12,000
$11,500
$11,000
$10,500
$10,000
$9,500
$9,000
Jul-10
s.o.
KEY POINTS

Actively managed by Derek Brown and his team at Fiera Capital Corp.

Strategy uses macro-economic and fundamental credit research

Fiera Capital Corp. performs in-house credit analysis and rates the issues
using its own methodology

The mandate can include up to 15% of non-investment grade issues but
historically the ETF has held less than 5%

Non-Canadian dollar exposure will be hedged

Advisor series (HAB.A-TSX) pays a trailer of 50bps and carries a
Dec-10 May-11
ETF
Benchmark
ETF
Benchmark
Standard Deviation
Sharpe Ratio
52-Week High
52-Week Low
3YR
3.3
1.3
2009
5.4
3M
1.5
1.9
Aug-12
6M
2.9
2.9
2010
6.7
Jan-13
1YR
2.8
2.1
2011
7.4
9.7
Jun-13
3YR
5.4
5.0
2012
6.8
3.6
AAA
AA
A
BBB
BB or Lower
Other
5YR
-
$10.95 - 04/08/2013
$10.26 - 09/11/2013
TOP HOLDINGS
1M
2.1
2.6
Mar-12
5YR
5.5
Nov-13
10YR
5.3
2013
0.1
-1.2
CREDIT QUALITY
METRICS
1YR
4.3
0.4
YTD
2.1
2.6
Oct-11
Total
3.1%
29.8%
34.0%
30.8%
2.4%
0.0%
100%
SECTOR ALLOCATION
BANK OF NOVA SCOTIA 2.75 AUG 13 18
TD BANK 4.779 DEC 14 16FL05
WELLS FARGO FIN CDA 2.78 NOV 15 18
2.3%
2.1%
2.1%
Financials
Communication
BROOKFIELD OFF PRO 3.244 JAN 09 20
2.0%
Energy
9.9%
CIBC 2.350 OCT 18 17
2.0%
Real Estate
9.0%
CAPITAL DESJARDINS 5.187 MAY 05 20
1.9%
Industrials
8.5%
HOME TRUST CO 3.400 DEC 10 18
1.9%
Infrastructure
8.3%
ROGERS COMMUNICATION 5.340 MAR 22 21
1.7%
Cash
2.0%
CANADA T/B JAN 07 14
1.6%
Other
1.2%
TELUS CORP 3.600 JAN 26 21
1.6%
Federal
1.1%
49.9%
10.1%
Total
100.0%
19
OVERVIEW
SNAPSHOT
The Horizons Active Floating Rate Bond ETF seeks to generate income that is consistent
with prevailing short-term corporate bond yields while stabilizing the market value of the
ETF from the effects of interest-rate fluctuations.
Ticker
Price
Inception Date
Number of Holdings
HFR - TSX
$10.18
0.45%
2.40%
Monthly
12/13/2010
n/a
Net Assets
$353 MM
250,612
Category
Benchmark
Methodology
Underlying Index
Actively Managed
n/a
2.19%
$12,000
$11,500
$11,000
$10,500
$10,934
$10,000
$9,500
$9,000
$8,500
$8,000
Dec-10
s.o.
KEY POINTS

Actively managed by Nicolas Normandeau of Fiera Capital Corp.

Historically, holdings have been concentrated in Canadian short-term
corporate bonds

The ETF seeks to immunize the market value of the ETF from the effects
of interest-rate fluctuations

The ETF enters into interest-rate swaps through which the ETF pays the
counterparty a fixed return on a portfolio of fixed-income securities in
exchange for a floating rate of income. Generally, the portfolio duration
should not exceed two years, and has historically been closer to 0.5
years


Advisor series (HFR.A-TSX) pays a trailer of 40bps and carries a
May-11
Oct-11
ETF
Benchmark
ETF
Benchmark
Standard Deviation
Sharpe Ratio
52-Week High
52-Week Low
3YR
1.4
1.3
2009
5.4
3M
1.2
1.9
Jan-13
6M
1.3
2.9
2010
6.7
1YR
2.4
2.1
2011
1.3
9.7
Jun-13
3YR
2.8
5.0
2012
4.9
3.6
AAA
AA
A
BBB
BB or Lower
Other
5YR
-
$10.25 - 03/26/2013
$10.10 - 09/10/2013
TOP HOLDINGS
1M
0.6
2.6
Aug-12
5YR
5.5
Nov-13
10YR
5.3
2013
2.3
-1.2
CREDIT QUALITY
METRICS
1YR
0.9
1.6
YTD
0.6
2.6
Mar-12
Total
5.8%
40.7%
26.3%
27.5%
0.0%
0.0%
100%
SECTOR ALLOCATION
CANADA T/B JAN 03 14
CIBC 4.110 APR 30 15CA20
ROYAL BANK CDA 3.030 JUL 26 16
4.0%
3.6%
3.5%
Financials
Industrials
JPMORGAN CHASE & CO 2.920 SEP 19 17
2.6%
Communication
6.5%
TD BANK 4.779 DEC 14 16FL05
2.4%
Real Estate
6.5%
CHOICE PROP REIT 3.554 JUL 05 18
2.1%
Cash
5.8%
BANK OF MONTREAL 2.960 AUG 02 16
2.1%
Others
4.2%
TD BANK 2.433 AUG 15 17
2.1%
Energy
3.7%
CIBC 2.220 MAR 07 18
2.0%
Infrastructure
1.0%
BANK OF NOVA SCOTIA 2.598 FEB 27 17
1.7%
63.5%
8.9%
Total
100.0%
20
iShares 1-5 Year
Laddered Corporate Bond Index Fund
OVERVIEW
SNAPSHOT
The iShares 1-5 Year Laddered Corporate Bond Index Fund seeks to provide a return based
on holding the securities that constitutes the DEX 1-5 Year Laddered Corporate Bond Index,
less fees and expenses. The ETF provides investors with exposure to a diversified corporate
bond portfolio, with laddered maturity levels ranging from 1 to 5 years.
Ticker
Price
Inception Date
Number of Holdings
CBO - TSX
$19.81
0.28%
4.38%
Monthly
02/25/2009
46
Net Assets
$1,961 MM
382,197
Category
Benchmark
Methodology
Underlying Index
Passive
DEX 1-5 Year Laddered Corp. Bond
Index
1.98%
Weighted Average Duration (yrs)
iShares 1-5 Year Laddered Corporate Bond Index Fund
$14,000
3.01
2.76
$13,000
$12,000
$12,315
$11,000
$10,000
$9,000
Feb-09
Sep-09
Apr-10
Nov-10
Jun-11
Jan-12
Aug-12 Mar-13
Oct-13
KEY POINTS

The index allocates across five maturity buckets with successive maturity
dates (e.g., 1-2 years, 2-3 years, etc.). At the rebalancing date, the
bucket with a maturity of less than 1 year will be sold and invested in up
to 20 bonds with maturities of between 5-6 years

All credit ratings are A or better, maximum of 60% exposure in financials
with no more than 40% in banks

The index has evolved over time to accommodate the significant assets
accumulated by the ETF. As of 2012, up to 20 bonds will be selected each
year for the 5-6 year bucket, versus the original 5 per bucket in 2007
and 10 per bucket in 2010

Rebalances annually on June 30th

Advisor series (CBO.A-TSX) pays a trailer of 50bps and carries a
ETF
Benchmark
ETF
Benchmark
YTD
0.9
2.6
1M
0.9
2.6
2009
5.4
3M
1.1
1.9
2010
3.8
6.7
Standard Deviation
Sharpe Ratio
52-Week High
52-Week Low
3YR
1.4
1.8
2011
4.8
9.7
3YR
3.5
5.0
2012
3.2
3.6
AAA
AA
A
BBB
BB or Lower
Other
5YR
-
$20.22 - 03/04/2013
$19.51 - 09/11/2013
TOP HOLDINGS
1YR
3.1
2.1
5YR
5.5
10YR
5.3
2013
2.1
-1.2
CREDIT QUALITY
METRICS
1YR
1.8
1.1
6M
2.0
2.9
Total
1.8%
23.4%
73.8%
0.0%
0.0%
1.0%
100%
SECTOR ALLOCATION
TORONTO-DOMINION BANK (THE)
BANK OF MONTREAL
WELLS FARGO FIN CANADA
4.4%
4.3%
4.1%
Financial
Infrastructure
GREATER TORONTO AIRPORT
4.1%
Energy
6.7%
GREAT-WEST LIFECO INC
2.5%
Real Estate
2.2%
TORONTO DOMINION BANK (MONTREAL BR
2.5%
Industrial
2.2%
GREATER TORONTO AIRPORTS AUTHORITY
2.5%
BANK OF MONTREAL
2.5%
GE CAPITAL CANADA FUNDING COMPANY
2.5%
2.4%
65.1%
22.8%
Total
98.9%
21
iShares 1-5 Year
Laddered Government Bond Index Fund
OVERVIEW
SNAPSHOT
The iShares 1-5 Year Laddered Government Bond Index Fund seeks to provide a return
based on holding the securities that constitutes the DEX 1-5 Year Government Bond Index,
less fees and expenses. The ETF provides investors with exposure to a government bond
portfolio with laddered maturity levels ranging from 1 to 5 years.
Ticker
Price
Inception Date
Number of Holdings
CLF - TSX
$19.49
0.17%
3.72%
Monthly
01/31/2008
38
Net Assets
$1,029 MM
196,673
Category
Benchmark
Methodology
Underlying Index
Passive
DEX 1-5 Year Laddered Gov't Bond
Index
1.41%
iShares 1-5 Year Laddered Government Bond Index Fund
$14,000
$13,000
$12,405
$12,000
$11,000
$10,000
$9,000
Jan-08
2.92
2.72
KEY POINTS

The index allocates across five maturity buckets with successive maturity
dates (e.g., 1-2 years, 2-3 years, etc.). At the rebalancing date, the
bucket with a maturity of less than 1 year will be sold and invested in up
to 20 bonds with maturities between 5-6 years

Targets 40% GoC non-agency bonds, 20% GoC agency bonds and 40%
provincial bonds

The index has evolved over time to accommodate the significant assets
accumulated by the ETF. As of 2012, up to 20 bonds will be selected each
year for the 5-6 year bucket, versus the original 5 per bucket in 2008
and 10 per bucket in 2010

Rebalances annually on June 30th

Advisor series (CLF.A-TSX) pays a trailer of 50bps and carries a
Jan-09
ETF
Benchmark
ETF
Benchmark
Jan-10
YTD
0.9
2.6
1M
0.9
2.6
2009
1.5
5.4
Jan-11
3M
1.0
1.9
2010
2.8
6.7
52-Week High
52-Week Low
1YR
1.5
1.1
3YR
1.5
1.4
1YR
2.6
2.1
2011
5.5
9.7
3YR
3.0
5.0
2012
1.2
3.6
AAA
AA
A
BBB
BB or Lower
Other
5YR
1.9
1.0
$19.81 - 04/18/2013
$19.24 - 09/18/2013
TOP HOLDINGS
Jan-13
5YR
2.8
5.5
Jan-14
10YR
5.3
2013
1.8
-1.2
CREDIT QUALITY
METRICS
Standard Deviation
Sharpe Ratio
6M
2.0
2.9
Jan-12
Total
42.3%
32.0%
24.9%
0.0%
0.0%
0.8%
100%
SECTOR ALLOCATION
CANADA (GOVERNMENT OF)
ONTARIO (PROVINCE OF)
4.2%
3.9%
3.9%
Provincial
Federal
64.1%
31.5%
MANITOBA (PROVINCE OF)
3.9%
Municipal
4.5%
QUEBEC (PROVINCE OF)
3.8%
ONTARIO CANADA (PROVINCE OF)
2.8%
ONTARIO PROVINCE OF
2.8%
2.8%
BRITISH COLUMBIA PROV OF
2.8%
CANADA HOUSING TRUST NO 1
2.8%
Total
100.0%
22
iShares
DEX All Corporate Bond Index Fund
OVERVIEW
SNAPSHOT
The iShares DEX All Corporate Bond Index Fund seeks to provide income by replicating the
performance of the DEX All Corporate Bond Index, net of expenses.
Ticker
Price
Inception Date
Number of Holdings
XCB - TSX
$20.90
0.44%
3.75%
Monthly
11/06/2006
681
Net Assets
$1,453 MM
338,093
Category
Benchmark
Methodology
Underlying Index
Passive
DEX All Corporate Bond Index
iShares DEX All Corporate Bond Index Fund
$15,000
$14,093
$14,000
$13,000
$12,000
$11,000
$10,000
$9,000
2.84%
$8,000
Nov-06
8.08
5.63
KEY POINTS

Provides fixed-income exposure to a diversified portfolio of investmentgrade Canadian corporate bonds

Historically, the ETF had a large number of holdings with the majority of
constituents having a credit rating of A or above

Index is comprised primarily of semi-annual, fixed-rate corporate bonds
issued domestically in Canada and denominated in Canadian dollars, with
an investment-grade rating and a remaining effective term to maturity of
at least one year

For additional yield pickup, consider the BMO Mid Corporate Bond Index
ETF (ZCM-TSX), which has a higher duration and concentration in BBB
rated bonds, and a lower MER

Nov-07
ETF
Benchmark
ETF
Benchmark
Nov-08
YTD
1.1
2.6
Nov-09
1M
1.1
2.6
2009
14.5
5.4
Nov-10
3M
1.0
1.9
2010
6.4
6.7
Standard Deviation
Sharpe Ratio
52-Week High
52-Week Low
3YR
2.9
1.4
2011
7.5
9.7
3YR
5.0
5.0
2012
5.4
3.6
AAA
AA
A
BBB
BB or Lower
Other
5YR
3.5
1.7
$21.73 - 05/02/2013
$20.38 - 09/18/2013
TOP HOLDINGS
1YR
1.9
2.1
Nov-12
5YR
6.9
5.5
Nov-13
10YR
5.3
2013
0.2
-1.2
CREDIT QUALITY
METRICS
1YR
3.8
0.2
6M
2.0
2.9
Nov-11
Total
3.9%
24.2%
40.5%
30.2%
0.0%
1.2%
100%
SECTOR ALLOCATION
CANADIAN IMPERIAL BANK OF COMMERCE
0.8%
0.6%
0.6%
Financial
Infrastructure
46.8%
13.2%
CANADIAN IMPERIAL BANK OF COMMERCE
0.6%
Energy
13.1%
0.6%
Communication
9.0%
0.6%
Industrial
6.8%
0.6%
Other
3.8%
0.6%
Securitization
3.1%
0.6%
Real Estate
3.0%
CIBC CAPITAL TRUST
0.5%
Provincial
0.1%
Total
98.9%
23
OVERVIEW
SNAPSHOT
The iShares DEX Short Term Bond Index Fund seeks to provide income by replicating the
performance of the DEX Short Term Bond Index, net of expenses.
Ticker
Price
Inception Date
Number of Holdings
XSB - TSX
$28.72
0.28%
2.65%
Monthly
11/20/2000
383
Net Assets
$2,252 MM
308,728
Category
Benchmark
Methodology
Underlying Index
Passive
DEX Short Term Bond Index
1.56%
$16,000
$14,000
$14,633
$12,000
$10,000
$8,000
Jan-04
2.90
2.75
KEY POINTS
Jan-06
ETF
Benchmark

Provides broad, shorter-term, fixed-income exposure to Canadian
investment-grade bonds

Historically, the majority of holdings had a credit rating of A or higher

Index is market-cap. weighted and consists of a broadly diversified range
of investment grade federal, provincial, municipal and corporate bonds
with a term to maturity of between one and five years

ETF
Benchmark
Jan-08
YTD
1.0
2.6
1M
1.0
2.6
2009
4.4
5.4
Jan-10
3M
0.9
1.9
6M
1.8
2.9
2010
3.3
6.7
1YR
2.5
2.1
2011
4.4
9.7
Jan-12
3YR
2.8
5.0
2012
1.6
3.6
5YR
3.2
5.5
Jan-14
10YR
3.9
5.3
2013
1.4
-1.2
CREDIT QUALITY
METRICS
Standard Deviation
Sharpe Ratio
52-Week High
52-Week Low
1YR
1.5
1.0
3YR
1.3
1.4
AAA
AA
A
BBB
BB or Lower
Other
5YR
1.8
1.2
$28.99 - 04/18/2013
$28.32 - 09/18/2013
TOP HOLDINGS
Total
51.2%
22.5%
17.5%
6.8%
0.0%
2.0%
100%
SECTOR ALLOCATION
CANADA HOUSING TRUST NO.1
2.3%
2.2%
2.1%
Federal
Financial
45.6%
26.2%
2.0%
Provincial
13.0%
2.0%
Other
2.7%
1.9%
Communication
2.1%
1.9%
Securitization
2.1%
1.8%
Energy
1.9%
1.8%
Infrastructure
1.9%
1.8%
Industrial
Municipal
Total
1.8%
1.2%
98.4%
24
OVERVIEW
SNAPSHOT
The iShares DEX Universe Bond Index Fund seeks to provide income by replicating the
performance of the DEX Universe Bond Index, net of expenses.
Ticker
Price
Inception Date
Number of Holdings
XBB - TSX
$30.60
0.33%
3.24%
Monthly
11/20/2000
768
Net Assets
$1,511 MM
236,407
Category
Benchmark
Methodology
Underlying Index
Passive
2.51%
$16,000
$16,408
$14,000
$12,000
$10,000
$8,000
Jan-04
9.81
6.86
KEY POINTS
Jan-06
ETF
Benchmark

Provides diversified exposure to Canadian investment-grade, fixedincome securities over a wide range of maturities

Historically, the majority of holdings had a credit rating of A or higher
and more than 60% of assets were in government-issued bonds

The DEX Universe Bond Index is largely considered to be the benchmark
for fixed-income securities in Canada. It consists of a broadly diversified
selection of investment-grade Government of Canada, provincial,
corporate and municipal bonds issued domestically in Canada and
denominated in Canadian dollars
ETF
Benchmark
Jan-08
YTD
2.4
2.6
1M
2.4
2.6
2009
5.2
5.4
Jan-10
3M
1.8
1.9
6M
2.8
2.9
2010
6.1
6.7
1YR
1.7
2.1
2011
9.4
9.7
Jan-12
3YR
4.6
5.0
2012
3.0
3.6
5YR
5.2
5.5
Jan-14
10YR
5.1
5.3
2013
-1.3
-1.2
CREDIT QUALITY
METRICS
Standard Deviation
Sharpe Ratio
52-Week High
52-Week Low
1YR
4.4
0.2
3YR
3.4
1.1
AAA
AA
A
BBB
BB or Lower
Other
5YR
3.3
1.3
$31.68 - 05/02/2013
$29.53 - 09/18/2013
TOP HOLDINGS
Total
42.6%
22.8%
23.2%
9.7%
0.0%
1.7%
100%
SECTOR ALLOCATION
1.4%
1.3%
1.3%
Federal
Provincial
35.7%
29.5%
1.2%
Financial
14.4%
1.1%
Infrastructure
4.1%
1.1%
Energy
4.1%
ONTARIO (PROVINCE OF)
1.0%
Communication
2.8%
1.0%
Other
2.6%
1.0%
Industrial
2.2%
0.9%
Municipal
Real Estate
Total
1.8%
1.0%
98.1%
25
BMO Dow Jones Industrial
Average Hedged to CAD Index ETF
U.S. Broad Market
OVERVIEW
SNAPSHOT
The BMO Dow Jones Industrial Average Hedged to CAD Index ETF seeks to replicate the
performance of the Dow Jones Industrial Average, net of expenses, through investments in
the constituent issuers of the index. The U.S. dollar currency exposure is hedged back to
the Canadian dollar.
Ticker
Price
Inception Date
Number of Holdings
ZDJ - TSX
$27.01
0.26%
1.85%
Quarterly
06/04/2009
31
Net Assets
$160 MM
21,282
Category
Benchmark
Methodology
Underlying Index
U.S. Broad Market
S&P 500 Index
Passive
Dow Jones Industrial
Average (CAD hedged)
BMO Dow Jones Industrial Average Hedged to CAD Index ETF
$23,000
S&P 500 Index
$21,000
$19,000
$19,917
$17,000
$15,000
$13,000
$11,000
$9,000
Jun-09
KEY POINTS

Provides Canadian dollar-hedged exposure to the Dow Jones Industrial
Average (DJIA), a price-weighted stock index with 30 blue-chip
constituents

The index universe is comprised of U.S.-listed stocks, excluding those in
the transportation and utilities sectors

Stock selection is not governed by quantitative rules but instead by a
committee. A company is typically added only if it has an excellent
reputation, demonstrates sustained growth and is of interest to a large
number of investors. Maintaining adequate sector representation within
the index is also a consideration in the selection process

Low management expense ratio

Jan-10
Aug-10
ETF
Benchmark
ETF
Benchmark
YTD
-5.4
-3.5
Mar-11
1M
-5.4
-3.5
2009
26.4
Oct-11
3M
1.1
2.0
52-Week High
52-Week Low
6M
2.0
6.8
2010
10.8
15.1
1YR
15.7
21.5
2011
7.2
2.1
Dec-12
3YR
12.0
17.9
Jul-13
5YR
16.7
2012
9.4
16.0
10YR
5.0
2013
29.6
32.4
ASSET ALLOCATION
METRICS
Standard Deviation
Sharpe Ratio
May-12
1YR
11.3
1.3
3YR
11.8
0.9
Canadian Equity
U.S. Equity
Fixed Income
Cash
Other
Total
5YR
-
$28.58 - 12/31/2013
$23.76 - 02/25/2013
TOP HOLDINGS
0.0%
104.6%
0.0%
0.0%
-4.6%
0.0%
100%
SECTOR ALLOCATION
Visa, Inc. Class A
International Business Machines Corp
Goldman Sachs Group Inc
9.2%
7.6%
7.0%
Industrials
Info Tech
19.9%
19.5%
3M Co
5.5%
Financials
15.8%
Boeing Co
5.4%
Cons Disc.
13.0%
United Technologies Corp
4.9%
Health Care
10.0%
Chevron Corp
4.8%
Energy
8.3%
McDonald's Corporation
4.0%
Cons Staples
7.7%
Caterpillar Inc
4.0%
Telecom.
3.3%
Exxon Mobil Corporation
3.9%
Materials
Utilities
2.5%
0.0%
100.0%
Total
26
iShares S&P US Dividend
Growers Index Fund (CAD-Hedged)
U.S. Broad Market
OVERVIEW
SNAPSHOT
The iShares S&P US Dividend Growers Index Fund (CAD-Hedged) seeks to track, net of
expenses, the S&P High Yield Dividend Aristocrats CAD Hedged Index which is comprised of
the highest dividend-yielding securities of the S&P Composite 1500 Index which have
increased dividends every year for at least 20 consecutive years.
Ticker
Price
Inception Date
Number of Holdings
CUD - TSX
$28.55
0.68%
1.90%
Monthly
09/13/2011
95
Net Assets
$412 MM
54,084
Category
Benchmark
Methodology
Underlying Index
U.S. Broad Market
S&P 500 Index
Passive
S&P High Yield Dividend
Aristocrats CAD Hedged Index
iShares S&P US Dividend Growers Index Fund (CAD-Hedged)
S&P 500 Index
$17,000
$15,000
$11,000
$9,000
Sep-11
KEY POINTS

Provides exposure to the highest dividend-yielding U.S. stocks chosen
from the S&P 1500 Index

Selected companies must have increased dividends every year for the
past 20 consecutive years and pass size and liquidity tests

Index is weighted by the indicated annual dividend yield, re-weighted
quarterly with an annual universe review

Maximum exposure to an individual stock is capped at 4%


Advisor series (CUD.A-TSX) pays a trailer of 75bps and carries a
$15,507
$13,000
Jan-12
ETF
Benchmark
ETF
Benchmark
May-12
YTD
-3.2
-3.5
Sep-12
1M
-3.2
-3.5
2009
26.4
3M
-0.6
2.0
Standard Deviation
Sharpe Ratio
52-Week High
52-Week Low
3YR
-
May-13
1YR
17.9
21.5
2011
2.1
Sep-13
3YR
17.9
5YR
16.7
2012
10.3
16.0
Jan-14
10YR
5.0
2013
30.2
32.4
ASSET ALLOCATION
5YR
-
$29.77 - 12/27/2013
$24.72 - 02/05/2013
TOP HOLDINGS
6M
3.1
6.8
2010
15.1
METRICS
1YR
11.2
1.5
Jan-13
Canadian Equity
U.S. Equity
Fixed Income
Cash
Other
Total
0.0%
99.4%
0.0%
0.0%
0.6%
0.0%
100%
SECTOR ALLOCATION
HCP INC.
AT&T INC
CONSOLIDATED EDISON INC.
3.1%
2.7%
2.3%
Financials
Consumer Staples
21.8%
16.6%
NATIONAL RETAIL PROPERTIES INC.
2.3%
Industrials
13.7%
PEOPLES UNITED FINANCIAL INC.
1.9%
Utilities
10.8%
MCDONALD'S CORP
1.8%
Materials
10.4%
FEDERAL REALTY INVESTMENT TRUST RE
1.7%
8.6%
KIMBERLY CLARK CORP
1.7%
Health Care
7.7%
SYSCO CORP
1.6%
3.7%
CLOROX ORD
1.6%
Telecommunications
Energy
Total
3.5%
3.2%
100.0%
27
U.S. Broad Market
OVERVIEW
SNAPSHOT
Ticker
Price
Inception Date
Number of Holdings
ZSP - TSX
$21.92
0.17%
1.51%
Quarterly
11/20/2012
504
Net Assets
$770 MM
173,358
The BMO S&P 500 Index ETF has been designed to replicate the performance of the S&P
500 Index, net of expenses. The ETF invests in and holds the constituent securities of the
index in the same proportion as they are reflected in the index.
$15,000
S&P 500 Index
$14,398
$14,000
Category
Benchmark
Methodology
Underlying Index
U.S. Broad Market
S&P 500 Index
Passive
S&P 500 Index
$13,000
$12,000
$11,000
$10,000
$9,000
Nov-12
KEY POINTS

Tracks the S&P 500 Index by holding the underlying components of the
index

The world-renowned index is a float-adjusted, market-cap.-weighted
index that includes 500 leading companies in U.S. The index has a largecap. bias and captures approximately 80% of the available market cap.

Canadian-listed ETFs which track the S&P 500 are highly competitive with
marginal differences in cost, liquidity and tracking. Advisors can also
consider the Vanguard S&P 500 Index ETF (VFV-TSX) and the iShares
S&P 500 Index ETF (XUS-TSX)

Not currency hedged
Jan-13
ETF
Benchmark
ETF
Benchmark
Mar-13
YTD
1.3
-3.5
May-13
1M
1.3
-3.5
2009
26.4
3M
8.8
2.0
52-Week High
52-Week Low
6M
15.4
6.8
2010
15.1
Sep-13
1YR
35.2
21.5
2011
2.1
Nov-13
3YR
17.9
5YR
16.7
2012
16.0
Jan-14
10YR
5.0
2013
41.2
32.4
ASSET ALLOCATION
METRICS
Standard Deviation
Sharpe Ratio
Jul-13
1YR
7.8
4.4
3YR
-
5YR
-
$22.56 - 01/22/2014
$16.55 - 02/07/2013
TOP HOLDINGS
Canadian Equity
U.S. Equity
Fixed Income
Cash
Other
Total
0.0%
98.0%
1.8%
0.0%
0.2%
0.0%
100%
SECTOR ALLOCATION
Apple Inc
Exxon Mobil Corporation
SPDR S&P 500
2.8%
2.5%
2.3%
Info Tech
Financials
18.8%
16.2%
Google, Inc. Class A
2.0%
Health Care
13.6%
Microsoft Corporation
1.8%
Cons Disc.
12.2%
General Electric Co
1.6%
Industrials
10.8%
Johnson & Johnson
1.5%
Energy
10.1%
Wells Fargo & Co
1.3%
Cons Staples
9.6%
Chevron Corp
1.3%
Materials
3.4%
Procter & Gamble Co
1.3%
Utilities
Telecom.
3.0%
2.3%
100.0%
Total
28
Vanguard
S&P 500 Index ETF (CAD-Hedged)
U.S. Broad Market
OVERVIEW
SNAPSHOT
The Vanguard S&P 500 Index (CAD-Hedged) ETF seeks to track, before fees and expenses,
the performance of the S&P 500 Index (CAD-Hedged). It mainly invests directly or
indirectly in stocks of U.S. companies and uses derivative instruments to hedge the U.S.
dollar exposure of the securities included in the S&P 500 Index back to the Canadian dollar.
Ticker
Price
Inception Date
Number of Holdings
VSP - TSX
$31.66
0.18%
1.48%
Quarterly
11/02/2012
502
Net Assets
$45 MM
13,487
Category
Benchmark
Methodology
Underlying Index
U.S. Broad Market
S&P 500 Index
Passive
S&P 500 Index
Vanguard S&P 500 Index ETF (CAD-Hedged)
$14,000
$12,921
S&P 500 Index
$13,000
$12,000
$11,000
$10,000
$9,000
Nov-12
KEY POINTS

Tracks the S&P500 Index by holding the U.S.-listed Vanguard S&P 500
ETF (VOO-NYSE ARCA), MER includes the management fee of the
underlying U.S.-listed ETF

The world-renowned index is a float-adjusted, market-cap.-weighted
index that includes 500 leading companies in U.S. The index has a largecap. bias and captures approximately 80% of the available market cap.

Jan-13
ETF
Benchmark
ETF
Benchmark
Mar-13
YTD
-3.5
-3.5
May-13
1M
-3.5
-3.5
2009
26.4
Jul-13
3M
1.5
2.0
6M
6.5
6.8
2010
15.1
Sep-13
1YR
21.5
21.5
2011
2.1
Nov-13
3YR
17.9
5YR
16.7
2012
16.0
Jan-14
10YR
5.0
2013
33.2
32.4
ASSET ALLOCATION
METRICS
Standard Deviation
Sharpe Ratio
52-Week High
52-Week Low
1YR
9.9
2.1
3YR
-
Canadian Equity
U.S. Equity
Fixed Income
Cash
Other
Total
5YR
-
$32.88 - 01/15/2014
$26.34 - 02/26/2013
TOP HOLDINGS
0.0%
100.0%
0.0%
0.0%
0.0%
0.0%
100%
SECTOR ALLOCATION
Apple Inc.
Exxon Mobil Corp.
Google Inc. Class A
3.0%
2.7%
1.9%
Info Tech
Financials
18.6%
16.2%
Microsoft
1.7%
Health Care
13.0%
General Electric Co.
1.7%
Cons Disc.
12.5%
Johnson & Johnson
1.5%
Industrials
10.9%
Chevron corp.
1.4%
Energy
10.3%
Procter & Gamble Co.
1.3%
Cons Staples
9.8%
JP Morgan Chase & Co
1.3%
Materials
3.5%
Wells Fargo & Co
1.3%
Utilities
Telecom.
2.9%
2.3%
100.0%
Total
Source: CIBC Wood Gundy, Vanguard Investment Canada, Bloomberg
29
PowerShares
QQQ CAD Hedged Index ETF
U.S. Broad Technology Market
OVERVIEW
SNAPSHOT
The PowerShares QQQ (CAD Hedged) Index ETF seeks to track the performance of the
NASDAQ-100 Currency Hedged CAD Index, net of expenses. The index consists of the 100
largest non-financial securities listed on the NASDAQ Stock Market based on market
capitalization.
Ticker
Price
Inception Date
Number of Holdings
QQC - TSX
$31.00
0.33%
0.81%
Quarterly
06/16/2011
100
Net Assets
$17 MM
7,794
Category
Benchmark
Methodology
Underlying Index
U.S. Broad Technology Market
S&P 500 Index
Passive
Nasdaq 100 Index
PowerShares QQQ CAD Hedged Index ETF
S&P 500 Index$15,478
$15,000
$13,000
$11,000
$9,000
$7,000
Jun-11
KEY POINTS

Holds the U.S.-listed PowerShares QQQ ETF (QQQ-NYSE ARCA), MER
includes the management fee of the underlying U.S.-listed ETF

Provides exposure to the NASDAQ-100 Currency Hedged CAD Index, a
modified, market-cap.-weighted index of the 100 largest non-financial
securities listed on the NASDAQ Stock Market

Historically, the ETF has high exposure to top U.S. technology companies

Oct-11
Feb-12
ETF
Benchmark
ETF
Benchmark
YTD
-1.4
-3.5
Jun-12
1M
-1.4
-3.5
2009
26.4
Oct-12
3M
4.8
2.0
Feb-13
6M
15.1
6.8
2010
15.1
1YR
31.1
21.5
2011
2.1
Jun-13
3YR
17.9
Oct-13
5YR
16.7
2012
16.0
10YR
5.0
2013
36.6
32.4
ASSET ALLOCATION
METRICS
Standard Deviation
Sharpe Ratio
52-Week High
52-Week Low
1YR
10.7
2.8
3YR
-
5YR
-
$32.25 - 12/27/2013
$23.64 - 02/26/2013
TOP HOLDINGS
Canadian Equity
U.S. Equity
Fixed Income
Cash
Other
Total
0.0%
95.6%
4.4%
0.0%
0.0%
0.0%
100%
SECTOR ALLOCATION
APPLE INC
GOOGLE INC-CL A
MICROSOFT CORP
11.7%
8.1%
7.9%
Info Tech
Cons Disc.
56.8%
20.3%
AMAZON.COM INC
4.1%
Health Care
14.6%
QUALCOMM INC
3.2%
Cons Staples
4.6%
GILEAD SCIENCES INC
3.1%
Industrials
1.8%
INTEL CORP
3.1%
Telecom.
1.6%
CISCO SYSTEMS INC
3.0%
Materials
0.3%
FACEBOOK INC-A
3.0%
Energy
0.0%
COMCAST CORP-CLASS A
2.9%
Financials
Utilities
Total
0.0%
0.0%
100.0%
Source: CIBC Wood Gundy, Invesco PowerShares, Bloomberg
30
iShares US High
Yield Bond Index Fund (CAD-Hedged)
U.S. Fixed Income
OVERVIEW
SNAPSHOT
Ticker
Price
Inception Date
Number of Holdings
XHY - TSX
$21.60
0.61%
5.89%
Monthly
01/21/2010
773
Net Assets
$592 MM
76,171
The iShares US High Yield Bond Index Fund (CAD-Hedged) seeks to provide income by
replicating the performance of the Markit iBoxx USD Liquid High Yield Total Return Index,
net of expenses. The ETF will hedge U.S. dollar currency exposure back to Canadian
dollars.
iShares US High Yield Bond Index Fund (CAD-Hedged)
$15,000
Credit Suisse High Yield Index II
$14,000
Category
Benchmark
U.S. Fixed Income
Credit Suisse High Yield Index II
$13,000
$14,211
$12,000
Methodology
Underlying Index
Passive
Markit iBoxx USD Liquid
High Yield Index
$11,000
$10,000
$9,000
Jan-10
5.28%
4.51
4.06
KEY POINTS

Provides fixed-income exposure to a diversified U.S. high-yield portfolio
of corporate bonds

Historically, the ETF has low or no exposure to CCC+ issues

For additional yield pickup, consider the BMO High Yield US Corporate
Bond Hedged to CAD Index ETF (ZHY-TSX), which has a higher
concentration in CCC rated bonds

Jul-10
Jan-11
ETF
Benchmark
ETF
Benchmark
YTD
1.1
0.8
Jul-11
1M
1.1
0.8
2009
54.2
Jan-12
3M
1.3
1.8
Jul-12
6M
4.0
4.7
2010
14.4
Jan-13
1YR
6.5
7.0
3YR
7.8
8.7
2011
6.8
5.5
Jul-13
5YR
16.9
2012
10.9
14.7
Jan-14
10YR
8.2
2013
6.4
7.5
CREDIT QUALITY
METRICS
Standard Deviation
Sharpe Ratio
52-Week High
52-Week Low
1YR
5.9
0.9
3YR
8.3
0.8
AAA
AA
A
BBB
BB or Lower
Other
5YR
-
$22.26 - 05/08/2013
$20.29 - 06/24/2013
TOP HOLDINGS
Total
0.0%
0.0%
0.0%
6.4%
83.9%
9.7%
100%
SECTOR ALLOCATION
SPRINT CORP
REYNOLDS GROUP ISSUER LLC
SPRINT NEXTEL CORPORATION
0.6%
0.5%
0.5%
Consumer Services
Financials
15.4%
12.8%
FIRST DATA CORPORATION
0.5%
Oil & Gas
12.7%
HAWK ACQUISITION SUB INC
0.4%
Industrials
10.9%
TENET HEALTHCARE CORPORATION
0.4%
Telecommunications
10.4%
SLM CORPORATION
0.4%
Health Care
8.8%
SPRINT CORP
0.4%
Basic Materials
6.9%
HCA INC
0.3%
Technology
6.6%
REYNOLDS GROUP ISSUER LLC
0.3%
Consumer Goods
Utilities
Total
6.5%
5.0%
96.0%
31
iShares Russell
2000 Index Fund (CAD-Hedged)
U.S. Small Cap
OVERVIEW
SNAPSHOT
Ticker
Price
Inception Date
Number of Holdings
XSU - TSX
$24.28
0.36%
0.97%
Semi-Annually
05/14/2007
1,908
Net Assets
$225 MM
88,540
Category
Benchmark
Methodology
Underlying Index
U.S. Small Cap
Russell 2000 Index
Passive
Russell 2000 Index
The iShares Russell 2000 Index Fund (CAD-Hedged) seeks to replicate the performance of
the Russell 2000 Index - Canadian Dollars Hedged, net of expenses. The index is a market
capitalization-weighted index of securities of 2,000 of the smaller U.S. public issuers,
hedged to Canadian dollars. The Russell 2000 Index is commonly used as a measure of
U.S. small-cap. stock market performance.
iShares Russell 2000 Index Fund (CAD-Hedged)
$15,000
Russell 2000 Index
$13,000
$11,000
$12,693
$9,000
$7,000
$5,000
$3,000
May-07
KEY POINTS

Holds the U.S.-listed iShares Russell 2000 ETF (IWM-NYSE ARCA), MER

Only Canadian-listed ETF focused on U.S. small-cap. equities

The index provides exposure to the 2,000 smallest constituents, by
market cap., in the Russell 3000 Index
May-08
ETF
Benchmark
ETF
Benchmark
May-09
YTD
-2.8
-2.8
1M
-2.8
-2.8
2009
22.8
27.1
May-10
May-11
3M
3.0
3.1
6M
8.7
8.9
2010
24.5
26.8
1YR
27.0
27.0
2011
-5.5
-4.2
May-12
3YR
14.1
18.7
May-13
5YR
20.4
19.7
2012
15.8
16.4
10YR
6.4
2013
39.0
38.8
ASSET ALLOCATION
METRICS
Standard Deviation
Sharpe Ratio
52-Week High
52-Week Low
1YR
12.0
2.2
3YR
17.0
0.8
5YR
20.3
1.0
$25.44 - 01/22/2014
$19.15 - 02/26/2013
TOP HOLDINGS
Canadian Equity
U.S. Equity
Fixed Income
Cash
Other
Total
0.0%
99.9%
0.0%
0.0%
0.1%
0.0%
100%
SECTOR ALLOCATION
ACUITY BRANDS INC.
ISIS PHARMACEUTICALS INC.
ATHENAHEALTH INC.
0.4%
0.3%
0.3%
Financial Services
Technology
23.9%
14.7%
COSTAR GROUP INC.
0.3%
Health Care
14.1%
MIDDLEBY CORP.
0.3%
Producer Durables
14.0%
ALNYLAM PHARMACEUTICALS INC.
0.3%
13.6%
ULTIMATE SOFTWARE GROUP INC.
0.3%
Materials & Processing
7.1%
PTC INC
0.3%
Energy
5.2%
ASPEN TECHNOLOGY INC.
0.3%
Utilities
4.1%
NORTHSTAR REALTY FINANCE CORP.
0.3%
Consumer Staples
3.3%
Total
100.0%
32
OVERVIEW
SNAPSHOT
The Horizons Active Global Dividend ETF seeks long-term returns consisting of regular
dividend income and modest long-term capital growth. The ETF invests primarily in equity
and equity-related securities of companies with operations located anywhere in the world.
Ticker
Price
Inception Date
Number of Holdings
HAZ - TSX
$14.44
0.99%
2.55%
Monthly
07/21/2010
n/a
Net Assets
$90 MM
18,338
Category
Benchmark
Methodology
Underlying Index
MSCI World Index
Actively Managed
n/a
MSCI World Index
$16,000
$14,000
$15,598
$12,000
$10,000
$8,000
Jul-10
KEY POINTS

Actively managed by Sri Iyer and his team at Guardian Capital LLP

Uses a multi-factor quantitative model to select dividend stocks from the
world universe

Investment philosophy focuses on selecting stocks with growth,
predictability and sustainability of dividends

May hedge some or all of its non-Canadian dollar currency exposure at
the manager’s discretion
Dec-10 May-11
ETF
Benchmark
ETF
Benchmark
YTD
-0.1
-3.7
Oct-11
1M
-0.1
-3.7
2009
30.9
Mar-12
3M
4.8
0.2
Aug-12
6M
11.0
7.2
2010
12.5
Jan-13
1YR
19.3
16.8
2011
6.1
-4.9
Jun-13
3YR
11.2
13.9
5YR
14.6
2012
3.2
16.7
Nov-13
10YR
5.3
2013
26.4
27.5
ASSET ALLOCATION
METRICS
Standard Deviation
Sharpe Ratio
52-Week High
52-Week Low
1YR
7.7
2.4
3YR
7.5
1.4
5YR
-
$15.07 - 01/22/2014
$12.34 - 02/26/2013
TOP HOLDINGS
Canadian Equity
U.S. Equity
Fixed Income
Cash
Other
Total
6.0%
67.2%
26.2%
0.0%
0.6%
0.0%
100%
SECTOR ALLOCATION
SK TELECOM CO LTD
REYNOLDS AMERICAN INC
JPMORGAN CHASE & CO
3.2%
3.1%
2.9%
Financials
Cons Staples
17.0%
13.7%
PRUDENTIAL PLC
2.9%
Energy
13.3%
BRITISH AMERICAN TOBACCO PLC
2.8%
Industrials
12.8%
EATON CORPORATION PLC
2.7%
Info Tech
11.9%
WESTPAC BANKING CORP
2.6%
Cons Disc.
9.6%
WELLS FARGO & CO
2.6%
Health Care
8.4%
ILLINOIS TOOL WORKS INC
2.6%
Telecom.
6.6%
AUTOMATIC DATA PROCESSING INC
2.6%
Materials
Utilities
4.0%
2.1%
99.4%
Total
33
OVERVIEW
SNAPSHOT
The iShares Japan Fundamental Index Fund seeks to track the FTSE RAFI Japan C$ Hedged
Index, net of expenses. The fund selects constituents by 3 accounting factors (tracked over
5 consecutive years) including: total cash dividends, free cash flow and total sales, as well
as, current-period book equity value.
Ticker
Price
Inception Date
Number of Holdings
CJP - TSX
$11.03
0.72%
0.70%
Annually
02/13/2007
261
Net Assets
$75 MM
49,289
Category
Benchmark
Methodology
Underlying Index
MSCI Japan Index
FTSE RAFI Japan C$ Hedged Index
MSCI Japan Index
$10,000
$8,000
$6,000
$5,962
$4,000
$2,000
Feb-07
KEY POINTS

Weightings are based on the Research Affiliates Fundamental Indexes
(RAFI) methodology by factoring sales, cash flow, book value and
dividends

The index weights holdings by their ‘fundamental size’ factors rather than
by market cap., which may be more subject to market speculation and
overvaluation

Only ETF in Canada that provides country specific exposure to Japan


Historically, the ETF has comprised of over 250 securities
Feb-08
ETF
Benchmark
ETF
Benchmark
Feb-09
YTD
-9.4
-6.7
Feb-10
1M
-9.4
-6.7
2009
5.2
9.3
3M
-0.4
2.2
Standard Deviation
Sharpe Ratio
52-Week High
52-Week Low
3YR
21.8
0.3
Feb-12
1YR
28.0
32.1
Feb-13
3YR
8.5
8.0
2011
-18.7
-18.6
2012
15.5
21.8
5YR
7.2
6.2
10YR
1.9
2013
53.1
54.9
ASSET ALLOCATION
Canadian Equity
U.S. Equity
Fixed Income
Cash
Other
Total
5YR
21.4
0.3
$12.50 - 05/22/2013
$8.72 - 02/05/2013
TOP HOLDINGS
6M
4.9
8.2
2010
-5.1
0.7
METRICS
1YR
21.2
1.3
Feb-11
0.0%
0.0%
100.0%
0.0%
0.0%
0.0%
100%
SECTOR ALLOCATION
TOYOTA MOTOR CORP.
MITSUBISHI UFJ FINANCIAL GROUP INC
HONDA MOTOR CO. LTD.
4.5%
3.3%
2.3%
Consumer Goods
Industrials
23.2%
22.7%
SUMITOMO MITSUI FINANCIAL GROUP IN
2.2%
Financials
15.4%
HITACHI LTD.
2.2%
Consumer Services
8.0%
PANASONIC CORP.
2.2%
Basic Materials
7.1%
TOKYO ELECTRIC POWER CO. INC.
2.2%
Utilities
6.8%
NIPPON TELEGRAPH & TELEPHONE CORP.
1.8%
Technology
5.5%
MIZUHO FINANCIAL GROUP INC.
1.6%
Telecommunications
5.2%
SONY CORP.
1.4%
Health Care
Oil & Gas
Total
4.2%
1.9%
100.0%
34
iShares
MSCI EAFE Index Fund (CAD-Hedged)
OVERVIEW
SNAPSHOT
The iShares MSCI EAFE Index Fund (CAD-Hedged) seeks to provide long-term capital
growth by replicating the performance of the MSCI EAFE 100% Hedged to CAD Dollars
Index, net of expenses. The index is a free, float-adjusted, market capitalization-weighted,
index provided by MSCI that includes securities from Europe, Australasia and the Far East,
hedged to Canadian Dollars.
Ticker
Price
Inception Date
Number of Holdings
XIN - TSX
$20.90
0.50%
2.27%
Semi-Annually
09/06/2001
842
Net Assets
$1,085 MM
206,241
Category
Benchmark
Methodology
Underlying Index
MSCI EAFE Index
Passive
MSCI EAFE Index
$21,000
iShares MSCI EAFE Index Fund (CAD-Hedged)
MSCI EAFE Index
$19,000
$17,000
$15,000
$12,572
$13,000
$11,000
$9,000
$7,000
KEY POINTS

Holds the U.S.-listed iShares MSCI EAFE ETF (EFA-NYSE ARCA), MER

The index captures large and mid-cap. representation across 21
developed countries around the world, excluding the U.S. and Canada,
covering approximately 85% of the free float-adjusted market cap. in
each country


While BMO MSCI EAFE CAD-Hedged ETF (ZDM-TSX) is also available on
the MSCI EAFE Index, it uses a sampling methodology instead of full
replication to replicate the index’s performance

iShares also provides an unhedged version, the iShares MSCI EAFE IMI
Index Fund (XEF-TSX), which is based on a similar index (MSCI EAFE
Investable Market Index). This index covers a broader range of
securities, specifically the smaller-cap. names, giving the index a greater
breadth and a lower MER
$5,000
Jan-04
Jan-06
ETF
Benchmark
ETF
Benchmark
Jan-08
YTD
-4.3
-4.0
1M
-4.3
-4.0
2009
17.9
32.7
Jan-10
3M
-1.8
-1.7
2010
5.6
8.4
Standard Deviation
Sharpe Ratio
52-Week High
52-Week Low
3YR
13.3
0.4
5YR
14.5
0.7
$22.21 - 01/21/2014
$18.51 - 06/24/2013
TOP HOLDINGS
1YR
14.1
12.7
2011
-13.2
-11.6
3YR
6.6
10.3
5YR
10.9
12.2
2012
17.8
18.1
Jan-14
10YR
2.3
5.2
2013
24.7
23.6
ASSET ALLOCATION
METRICS
1YR
10.6
1.2
6M
4.9
7.8
Jan-12
Canadian Equity
U.S. Equity
Fixed Income
Cash
Other
Total
0.0%
0.0%
99.9%
0.0%
0.1%
0.0%
100%
SECTOR ALLOCATION
NESTLE S.A.
ROCHE HOLDING AG
HSBC HOLDINGS PLC
2.1%
1.7%
1.7%
Financials
Industrials
24.0%
13.3%
NOVARTIS AG
1.6%
12.7%
VODAFONE GROUP PLC
1.5%
Health Care
11.1%
TOYOTA MOTOR CORP.
1.4%
Consumer Staples
10.8%
BP PLC
1.3%
Materials
8.6%
ROYAL DUTCH SHELL PLC CLASS A
1.2%
Energy
6.2%
GLAXOSMITHKLINE PLC
1.1%
Telecommunications
5.3%
SANOFI S.A.
1.0%
Utilities
Total
4.5%
3.5%
100.0%
35
iShares MSCI World Index Fund
OVERVIEW
SNAPSHOT
The iShares MSCI World Index Fund seeks to replicate the performance of the MSCI World
Index, net of expenses. The MSCI World Index is a free, float-adjusted, market
capitalization-weighted index provided by MSCI that is designed to measure the equity
market performance of developed markets.
Ticker
Price
Inception Date
Number of Holdings
XWD - TSX
$32.53
0.47%
1.61%
Semi-Annually
06/18/2009
1,425
Net Assets
$171 MM
27,635
Category
Benchmark
Methodology
Underlying Index
MSCI World Index
Passive
MSCI World Index
iShares MSCI World Index Fund
MSCI World Index
$19,000
$17,000
$15,000
$17,131
$13,000
$11,000
$9,000
Jun-09
KEY POINTS

Holds the U.S.-listed iShares Core S&P 500 ETF (IVV-NYSE ARCA),
iShares MSCI EAFE ETF (EFA-NYSE ARCA), and iShares MSCI Canada ETF
(EWC-NYSE ARCA) to replicate the MSCI World Index, MER includes the
management fee of the underlying U.S.-listed ETFs

Only passive ETF in Canada that provides exposure to the MSCI World
Index, or a similar global index

Not currency hedged

Jan-10
Aug-10
ETF
Benchmark
ETF
Benchmark
YTD
0.7
-3.7
Mar-11
1M
0.7
-3.7
2009
30.9
Oct-11
3M
6.4
0.2
May-12
6M
14.8
7.2
2010
5.5
12.5
1YR
28.6
16.8
2011
-4.1
-4.9
Dec-12
3YR
12.7
13.9
Jul-13
5YR
14.6
2012
12.3
16.7
10YR
5.3
2013
35.0
27.5
ASSET ALLOCATION
METRICS
Standard Deviation
Sharpe Ratio
52-Week High
52-Week Low
1YR
6.2
4.5
3YR
8.9
1.3
5YR
-
$33.73 - 01/22/2014
$25.57 - 02/07/2013
TOP HOLDINGS
Canadian Equity
U.S. Equity
Fixed Income
Cash
Other
Total
4.0%
55.8%
40.1%
0.0%
0.1%
0.0%
100%
SECTOR ALLOCATION
APPLE INC
EXXON MOBIL CORP
GOOGLE INC. CL A
1.7%
1.4%
1.2%
Financials
20.6%
12.4%
MICROSOFT CORP.
1.0%
12.2%
GENERAL ELECTRIC CO.
0.9%
Health Care
12.1%
JOHNSON & JOHNSON ORD
0.9%
Industrials
11.3%
NESTLE S.A.
0.8%
Consumer Staples
9.8%
WELLS FARGO & CO.
0.8%
Energy
9.2%
CHEVRON CORP
0.8%
Materials
5.8%
PROCTER & GAMBLE ORD
0.8%
Telecommunications
Utilities
Total
3.5%
3.1%
100.0%
36
iShares China All-Cap Index Fund
Emerging Markets
OVERVIEW
SNAPSHOT
The iShares China All-Cap Index Fund seeks to track the AlphaShares China Index, less
fees and expenses. 80% of the fund's underlying assets are common stock, American
depositary receipts, American depositary shares, global depositary receipts, international
depositary receipts and other securities which are substantially identical to its component
securities.
Ticker
Price
Inception Date
Number of Holdings
CHI - TSX
$20.43
0.70%
2.22%
Annually
08/05/2010
245
Net Assets
$14 MM
3,269
Category
Benchmark
Methodology
Underlying Index
Emerging Markets
MSCI China Index
Passive
AlphaShares China Index
$13,000
iShares China All-Cap Index Fund
MSCI China Index
$11,373
$12,000
$11,000
$10,000
$9,000
$8,000
$7,000
$6,000
Aug-10
KEY POINTS

Holds the U.S.-listed Guggenheim China All-Cap ETF (YAO-NYSE ARCA),
MER includes the management fee of the underlying U.S.-listed ETF

Provides a cost-effective way to gain country-specific exposure to China'
large, medium and small-cap. stocks

Maximum sector limit of 35%, individual securities limited to 5% at
rebalancing

Rebalances and reconstitutes annually

Not currency hedged

Advisor series available (CHI.A) pays a trailer of 75bps and carries a

The iShares China Index Fund (XCH-TSX) is also available and provides
exposure to the biggest of China’s large-cap. companies. Historically, the
ETF had a high exposure to the financial sector
Feb-11
ETF
Benchmark
ETF
Benchmark
Aug-11
YTD
-5.1
-6.6
Feb-12
1M
-5.1
-6.6
2009
62.7
3M
0.6
-5.4
Standard Deviation
Sharpe Ratio
52-Week High
52-Week Low
3YR
20.2
0.1
1YR
6.7
-6.7
2011
-19.1
-18.3
Feb-13
3YR
2.4
2.8
Aug-13
5YR
10.3
2012
18.0
22.9
10YR
9.8
2013
19.2
4.0
ASSET ALLOCATION
5YR
-
$23.74 - 12/02/2013
$16.47 - 06/24/2013
TOP HOLDINGS
6M
15.2
4.6
2010
5.1
METRICS
1YR
15.7
0.4
Aug-12
Canadian Equity
U.S. Equity
Fixed Income
Cash
Other
Total
0.0%
0.0%
99.9%
0.0%
0.1%
0.0%
100%
SECTOR ALLOCATION
TENCENT HOLDINGS LTD
BAIDU INC - SPON ADR
CHINA MOBILE LTD
6.0%
5.0%
4.9%
Financials
31.2%
16.0%
IND & COMM BK OF CHINA-H
4.8%
Energy
11.4%
CHINA CONSTRUCTION BANK-H
4.8%
7.8%
BANK OF CHINA LTD-H
3.7%
Industrials
7.6%
CNOOC LTD
3.2%
Telecommunications
6.7%
PETROCHINA CO LTD-H
2.7%
Consumer Staples
6.1%
CHINA LIFE INSURANCE CO-H
2.6%
Integrated Oil & Gas
5.3%
CHINA PETROLEUM & CHEMICAL-H
2.6%
Oil & Gas Exploration & Pr
Materials
Total
4.3%
3.6%
100.0%
37
iShares CNX Nifty India Index Fund
Emerging Markets
OVERVIEW
SNAPSHOT
Ticker
Price
Inception Date
Number of Holdings
XID - TSX
$18.92
0.99%
0.56%
Semi-Annually
01/21/2010
51
Net Assets
$33 MM
6,299
Category
Benchmark
Methodology
Underlying Index
Emerging Markets
MSCI India Index
Passive
CNX Nifty Index
The iShares CNX Nifty India Index ETF seeks to provide long-term capital growth by
replicating the performance of the CNX Nifty Index, net of expenses.
$14,000
iShares CNX Nifty India Index Fund
MSCI India Index
$13,000
$12,000
$11,000
$9,796
$10,000
$9,000
$8,000
$7,000
$6,000
Jan-10
KEY POINTS

Holds the U.S.-listed iShares India 50 Index (INDY-NYSE ARCA), MER

Only Canadian-listed ETF with country-specific exposure to the biggest of
India's large-cap. companies in one trade

Not currency hedged

Jul-10
Jan-11
ETF
Benchmark
ETF
Benchmark
YTD
-1.4
-2.5
Jul-11
1M
-1.4
-2.6
2009
93.7
Jan-12
3M
2.1
-2.1
Jul-12
6M
11.9
6.6
2010
16.2
1YR
-4.6
3.8
Jan-13
3YR
-3.1
-2.2
2011
-35.3
-25.4
Jul-13
5YR
10.6
2012
24.0
30.0
Jan-14
10YR
8.8
2013
1.2
8.6
ASSET ALLOCATION
METRICS
Standard Deviation
Sharpe Ratio
52-Week High
52-Week Low
1YR
22.3
-0.3
3YR
24.3
-0.2
Canadian Equity
U.S. Equity
Fixed Income
Cash
Other
Total
5YR
-
$20.50 - 05/17/2013
$14.24 - 08/28/2013
TOP HOLDINGS
0.0%
0.0%
99.8%
0.0%
0.2%
0.0%
100%
SECTOR ALLOCATION
ITC LTD.
INFOSYS LTD
RELIANCE INDUSTRIES LTD
8.9%
8.7%
6.8%
Other
Banks
20.7%
18.4%
HOUSING DEVELOPMENT FINANCE CORP.
6.3%
Computers - Software
18.1%
HDFC BANK LTD.
6.0%
Cigarettes
8.9%
ICICI BANK LTD.
5.7%
Refineries/Marketing
7.3%
TATA CONSULTANCY SERVICES LTD
5.7%
Vehicles
6.5%
LARSEN & TOUBRO LTD.
4.1%
Pharmaceuticals
6.3%
TATA MOTORS LTD
3.3%
Housing Finance
6.3%
OIL & NATURAL GAS CORP. LTD.
2.4%
Engineering-Designing-Constr. 4.1%
3.4%
Oil Exploration
100.0%
Total
38
Vanguard
FTSE Emerging Markets Index ETF
Emerging Markets
OVERVIEW
SNAPSHOT
The Vanguard FTSE Emerging Markets Index ETF seeks to replicate the performance of the
FTSE Emerging Index, before fees and expenses.
Ticker
Price
Inception Date
Number of Holdings
VEE - TSX
$25.23
0.54%
2.12%
Quarterly
12/06/2011
917
Net Assets
$164 MM
36,492
Category
Benchmark
Methodology
Underlying Index
Emerging Markets
Passive
FTSE Emerging Index
Vanguard FTSE Emerging Markets Index ETF
$13,000
$11,155
$12,000
$11,000
$10,000
$9,000
Dec-11
KEY POINTS

Holds the U.S.-listed Vanguard FTSE Emerging Markets ETF (VWO-NYSE
ARCA), MER includes the management fee of the underlying U.S.-listed
ETF

Top country exposure includes China, Brazil, Taiwan, South Africa & India

Index comprised primarily of large and mid-cap. stocks from advanced
and secondary emerging markets

Historically, the ETF had a large number of holdings to provide
diversification (over 900)

Not currency hedged


May also consider the iShares MSCI Emerging Markets Index Fund (XEMTSX) that tracks the MSCI Emerging Markets Index, which is highly
correlated with the FTSE Emerging Index
Mar-12
Jun-12
ETF
Benchmark
ETF
Benchmark
YTD
-4.2
-6.5
Sep-12
1M
-4.2
-6.6
2009
79.0
Dec-12 Mar-13
3M
-3.7
-9.1
2010
19.4
Standard Deviation
Sharpe Ratio
52-Week High
52-Week Low
3YR
-
2011
-18.2
3YR
0.4
5YR
12.8
2012
15.2
18.7
Canadian Equity
U.S. Equity
Fixed Income
Cash
Other
Total
5YR
-
$27.59 - 05/22/2013
$22.95 - 06/24/2013
TOP HOLDINGS
1YR
-3.7
-9.9
Sep-13
Dec-13
10YR
8.5
2013
1.1
-2.3
ASSET ALLOCATION
METRICS
1YR
11.2
-0.4
6M
5.5
-0.2
Jun-13
0.0%
0.0%
100.0%
0.0%
0.0%
0.0%
100%
SECTOR ALLOCATION
Tencent Holdings Ltd.
China Construction Bank Corp.
China mobile Ltd.
1.8%
1.7%
1.7%
Financials
Energy
29.1%
13.1%
Industrial & Commercial Bank of China Ltd.
1.5%
Info Tech
11.6%
Taiwan Semiconductor Manufacturing
1.3%
Materials
10.2%
Naspers Ltd.
1.3%
Cons Staples
9.0%
Taiwan Semiconductor Manufacturing ADR
1.2%
Telecom.
8.8%
MTN Group Ltd.
1.2%
Cons Disc.
6.9%
America Movil SAB de CV
1.1%
Industrials
5.8%
Bank of China Ltd.
1.1%
Utilities
Health Care
Total
3.8%
1.8%
100.0%
Source: CIBC Wood Gundy, Vanguard Investment Canada, Bloomberg
39
BMO Covered Call Utilities ETF
Sector Funds
OVERVIEW
SNAPSHOT
The BMO Covered Call Utilities ETF has been designed to provide exposure to an equallyweighted portfolio of utilities, telecom and pipeline companies, while earning call option
premiums. The call options are written out of the money, selected based on their implied
volatility, and are written in proportion to the underlying securities’ weights. The option
premium provides limited downside protection. The underlying portfolio is rebalanced in
June and reconstituted in December.
Ticker
Price
Inception Date
Number of Holdings
ZWU - TSX
$14.62
0.73%
6.03%
Monthly
10/27/2011
60
Net Assets
$296 MM
109,216
Category
Benchmark
Methodology
Underlying Index
Sector Funds
Actively Managed
n/a
$12,000
BMO Covered Call Utilities ETF
$11,500
$11,000
$10,500
$11,239
$10,000
$9,500
$9,000
$8,500
$8,000
Oct-11
KEY POINTS
Feb-12
ETF
Benchmark

Provides exposure to the Canadian and U.S. energy, utilities and
telecommunication services sectors

Historically, the ETF will actively write out-of-the-money covered calls on
up to 50% of the underlying positions in any given month to seek
additional income and yield. While the options strategy does provide
benefits, as described, investors may forfeit some of the upside in a
strong equity market where the underlying equities on which the options
have been written are likely to be called away

Historically, Canadian holdings have represented 75% of the portfolio
with the U.S. at 25%

Equally-weighted and rebalances semi-annually
ETF
Benchmark
Jun-12
YTD
1.9
0.8
Oct-12
1M
1.9
0.8
2009
35.0
3M
3.4
3.3
Standard Deviation
Sharpe Ratio
52-Week High
52-Week Low
3YR
-
1YR
0.4
11.4
2011
-8.7
Jun-13
3YR
3.3
Oct-13
5YR
12.8
2012
3.3
7.2
10YR
7.6
2013
1.7
13.0
ASSET ALLOCATION
5YR
-
$15.53 - 02/05/2013
$13.59 - 06/24/2013
TOP HOLDINGS
6M
6.6
11.4
2010
17.6
METRICS
1YR
7.7
-0.1
Feb-13
Canadian Equity
U.S. Equity
Fixed Income
Cash
Other
Total
76.1%
25.2%
0.0%
0.0%
-0.6%
-0.7%
100%
SECTOR ALLOCATION
Williams Companies Inc
Exelon Corp
TransAlta Corporation
5.4%
5.2%
5.1%
Energy
Utilities
38.8%
33.9%
Inter Pipeline Ltd
5.1%
Telecom.
27.3%
Veresen Inc
5.0%
Cons Disc.
0.0%
TELUS Corp
5.0%
Cons Staples
0.0%
Duke Energy Corporation
5.0%
Industrials
0.0%
5.0%
Materials
0.0%
Southern Co
4.9%
Health Care
0.0%
Pembina Pipeline Corp
4.9%
Financials
Info Tech
Total
0.0%
0.0%
100.0%
40
Sector Funds
OVERVIEW
SNAPSHOT
The BMO Equal Weight REITs Index ETF seeks to replicate the performance of the Dow
Jones Canada Select Equal Weight REIT Index, net of expenses. The ETF invests in
Canadian real estate investment trusts.
Ticker
Price
Inception Date
Number of Holdings
ZRE - TSX
$18.86
0.62%
5.16%
Monthly
05/25/2010
18
Net Assets
$321 MM
69,066
Category
Benchmark
Sector Funds
S&P/TSX Capped REIT Index
Methodology
Underlying Index
Passive
Dow Jones Canada Select Equal
Weight REIT Index
S&P/TSX Capped REIT Index
$18,000
$16,000
$14,000
$10,000
$8,000
May-10
KEY POINTS

Provides equally-weighted exposure to the Canadian-listed REITs to
reduce concentration in the larger market-cap. REITs

For concentrated exposure to the top names in the sector, consider the
iShares S&P/TSX Capped REIT Index Fund (XRE-TSX), which is weighted
by market cap.

Rebalances semi-annually
$15,051
$12,000
Nov-10
May-11
ETF
Benchmark
ETF
Benchmark
YTD
0.8
0.6
Nov-11
1M
0.8
0.6
2009
55.3
May-12
3M
1.2
0.7
Nov-12
6M
4.3
3.6
2010
22.6
1YR
-6.1
-5.7
2011
13.9
21.7
May-13
3YR
7.8
9.0
5YR
20.8
2012
17.7
17.0
Nov-13
10YR
9.8
2013
-4.6
-5.5
ASSET ALLOCATION
METRICS
Standard Deviation
Sharpe Ratio
52-Week High
52-Week Low
1YR
11.6
-0.6
3YR
9.6
0.7
Canadian Equity
U.S. Equity
Fixed Income
Cash
Other
Total
5YR
-
$21.71 - 04/30/2013
$17.80 - 08/27/2013
TOP HOLDINGS
99.5%
0.0%
0.0%
0.0%
0.5%
0.0%
100%
SECTOR ALLOCATION
Northern Property Real Estate Investment Trust
Chartwell Retirement Residences
Dundee International Real Estate Investment Tr
6.2%
6.2%
6.1%
Financials
Cons Disc.
Granite Real Estate Inc Shs of Granite Real Estat
6.0%
Cons Staples
0.0%
Artis Real Estate Investment Trust
6.0%
Industrials
0.0%
Pure Industrial Real Estate Trust
5.9%
Energy
0.0%
Cominar Real Estate Investment Trust
5.9%
Materials
0.0%
Dundee Real Estate Investment Trust
5.9%
Health Care
0.0%
Allied Properties Real Estate Investment Trust
5.8%
Utilities
0.0%
Riocan Real Estate Investment Trust
5.8%
Info Tech
Telecom.
100.0%
0.0%
Total
0.0%
0.0%
100.0%
41
Sector Funds
OVERVIEW
SNAPSHOT
Ticker
Price
Inception Date
Number of Holdings
ZUT - TSX
$14.87
0.62%
5.00%
Monthly
01/21/2010
12
Net Assets
$262 MM
55,760
The BMO Equal Weight Utilities Index ETF seeks to replicate the performance of the Dow
Jones Canada Select Equal Weight Utilities Index, net of expenses.
$15,000
S&P/TSX Capped Utilities Index
$14,000
Category
Benchmark
Sector Funds
S&P/TSX Capped Utilities Index
Methodology
Underlying Index
Passive
Dow Jones Canada Select Equal
Weight Utilities Index
$13,000
$12,000
$11,000
$10,000
$9,000
Jan-10
KEY POINTS

Provides exposure to the Canadian utilities sector which, historically, has
provided high yields

Majority of the holdings have historically been in independent power
products & energy traders

Holdings are weighted equally with semi-annual rebalancing

For concentrated exposure to the top names in the sector, consider the
S&P/TSX Capped Utilities Index Fund (XUT-TSX), which is weighted by
market cap.
$12,582
Jul-10
Jan-11
ETF
Benchmark
ETF
Benchmark
YTD
3.6
3.8
Jul-11
1M
3.6
3.8
2009
19.0
Jan-12
3M
2.7
1.4
Jul-12
6M
5.3
1.9
2010
18.4
1YR
-5.2
-4.8
2011
1.8
6.5
Jan-13
3YR
1.6
2.8
2012
4.3
4.0
Jul-13
5YR
9.5
Jan-14
10YR
8.4
2013
-4.2
-4.4
ASSET ALLOCATION
METRICS
Standard Deviation
Sharpe Ratio
52-Week High
52-Week Low
1YR
13.4
-0.5
3YR
9.5
0.1
5YR
-
$16.55 - 02/05/2013
$13.49 - 09/04/2013
TOP HOLDINGS
Canadian Equity
U.S. Equity
Fixed Income
Cash
Other
Total
99.6%
0.0%
0.0%
0.0%
0.4%
0.0%
100%
90.4%
9.6%
SECTOR ALLOCATION
Pembina Pipeline Corp
Capital Power Corporation
TransAlta Corporation
9.5%
9.4%
9.2%
Utilities
Energy
Atco Ltd. Class I
9.1%
Cons Disc.
0.0%
9.1%
Cons Staples
0.0%
Northland Power Inc
9.0%
Industrials
0.0%
Innergex Renewable Energy, Inc.
9.0%
Materials
0.0%
Emera, Inc.
9.0%
Health Care
0.0%
Just Energy Group Inc
8.9%
Financials
0.0%
Algonquin Power & Utilities Corp
8.7%
Info Tech
Telecom.
0.0%
0.0%
100.0%
Total
42
BMO
S&P/TSX Equal Weight Banks Index ETF
Sector Funds
OVERVIEW
SNAPSHOT
The BMO S&P/TSX Equal Weight Banks Index ETF seeks to replicate the performance of the
S&P/TSX Equal Weight Diversified Banks Index, net of expenses.
Ticker
Price
Inception Date
Number of Holdings
ZEB - TSX
$20.32
0.62%
3.31%
Monthly
10/26/2009
7
Net Assets
$596 MM
213,913
Category
Benchmark
Sector Funds
S&P/TSX Capped Financial Index
Methodology
Underlying Index
Passive
S&P/TSX Equal Weight Diversified
Banks Index
BMO S&P/TSX Equal Weight Banks Index ETF
$15,000
$13,000
$11,000
$9,000
Oct-09
KEY POINTS

Provides sector-specific exposure to the top six Canadian banks, equallyweighted and rebalances semi-annually

Effective way to gain equal-weight exposure to the top six Canadian
banks in one trade

For higher distribution yield, consider the BMO Covered Call Canadian
Banks ETF (ZWB-TSX) or the Horizons Enhanced Income Financials ETF
(HEF-TSX), which uses a covered-call strategy on the underlying
securities to seek additional income

For broad financial sector exposure, consider the iShares S&P/TSX
Capped Financials Index Fund (XFN-TSX), which provides exposure to the
banks, insurance and diversified financial sectors
Apr-10
Oct-10
ETF
Benchmark
ETF
Benchmark
YTD
-4.4
-3.6
Apr-11
1M
-4.4
-3.6
2009
45.8
Oct-11
Standard Deviation
Sharpe Ratio
52-Week High
52-Week Low
3YR
10.3
0.9
6M
9.7
10.7
2010
13.1
8.5
Oct-12
1YR
11.8
17.8
2011
1.2
-3.8
Apr-13
3YR
9.8
10.8
5YR
18.5
2012
14.7
17.1
Oct-13
10YR
8.8
2013
20.4
26.8
ASSET ALLOCATION
Canadian Equity
U.S. Equity
Fixed Income
Cash
Other
Total
5YR
-
$21.75 - 11/25/2013
$17.52 - 06/24/2013
TOP HOLDINGS
Apr-12
3M
-2.7
0.0
METRICS
1YR
10.2
1.1
$16,358
S&P/TSX Capped Financial Index
$17,000
99.5%
0.0%
0.0%
0.0%
0.5%
0.0%
100%
SECTOR ALLOCATION
Toronto-Dominion Bank
Royal Bank Of Canada
Bank of Montreal
17.1%
17.1%
16.7%
Financials
Cons Disc.
Bank of Nova Scotia
16.4%
Cons Staples
0.0%
Canadian Imperial Bank of Commerce
16.3%
Industrials
0.0%
National Bank of Canada
15.9%
Energy
0.0%
Cash & Cash Equivalents
0.5%
Materials
0.0%
Health Care
0.0%
Utilities
0.0%
100.0%
0.0%
Info Tech
Telecom.
Total
0.0%
0.0%
100.0%
43
Horizons
Enhanced Income Gold Producers ETF
Sector Funds
OVERVIEW
SNAPSHOT
The Horizons Enhanced Income Gold Producers ETF seeks to provide unitholders with: (a)
exposure to the performance of an equally-weighted portfolio of North American based gold
mining and exploration companies; and (b) monthly distributions of dividend and call option
income. Any foreign currency gains or losses as a result of HEP's investment in nonCanadian issuers will be hedged back to the Canadian dollar.
Ticker
Price
Inception Date
Number of Holdings
HEP - TSX
$6.28
0.80%
15.79%
Monthly
04/12/2011
n/a
Net Assets
$30 MM
66,868
Category
Benchmark
Methodology
Underlying Index
Sector Funds
S&P/TSX Global Gold Index
Actively Managed
n/a
Horizons Enhanced Income Gold Producers ETF
$11,000
$9,000
$7,000
$4,785
$5,000
$3,000
Apr-11
KEY POINTS

Provides exposure to an equally-weighted portfolio of the largest and
most liquid North American gold mining and exploration companies on
the TSX, and rebalances semi-annually

The ETF will use an option strategy to add income and mitigate some
downside. The strategy involves writing short-term out-of-the-money
covered calls, generally on the full portfolio. While the options strategy
does provide benefits, as described, investors may forfeit some of the
upside in a strong gold equities market where the options are more likely
to be called away

Aug-11
Dec-11
Trailing Performance (%) YTD
ETF
11.9
Benchmark
16.6
ETF
Benchmark
Standard Deviation
Sharpe Ratio
52-Week High
52-Week Low
1M
11.9
16.6
2009
7.6
Aug-12
3M
-0.9
1.7
Dec-12
6M
-4.8
0.6
2010
26.7
Apr-13
1YR
-31.5
-32.7
2011
-13.6
Aug-13
3YR
-20.2
2012
-11.1
-14.7
5YR
-9.3
Dec-13
10YR
-0.3
2013
-44.4
-47.4
ASSET ALLOCATION
METRICS
1YR
33.2
-1.0
Apr-12
3YR
-
5YR
-
$10.94 - 02/07/2013
$5.50 - 12/31/2013
TOP HOLDINGS
Canadian Equity
U.S. Equity
South Africa Equity
Jersey Equity
Peru Equity
Other
Total
62.8%
14.3%
7.3%
7.1%
6.9%
1.8%
100%
Materials
Cash
98.2%
0.0%
SECTOR ALLOCATION
PAN AMERICAN SILVER CORP
BARRICK GOLD CORP
AGNICO EAGLE MINES LTD
8.6%
7.9%
7.7%
ROYAL GOLD INC
7.6%
FRANCO-NEVADA CORP
7.5%
ANGLOGOLD ASHANTI-SPON ADR
7.3%
RANDGOLD RESOURCES LTD-ADR
7.1%
GOLDCORP INC
7.1%
SILVER WHEATON CORP
7.0%
YAMANA GOLD INC
6.9%
Total
98.2%
44
iShares S&P/TSX
Capped Consumer Staples Index Fund
Sector Funds
OVERVIEW
SNAPSHOT
The iShares S&P/TSX Capped Consumer Staples Index Fund seeks to replicate the
performance of the S&P/TSX Capped Consumer Staples Index, net of expenses.
Ticker
Price
Inception Date
Number of Holdings
XST - TSX
$30.83
0.62%
0.75%
Quarterly
04/18/2011
11
Net Assets
$39 MM
7,756
Category
Benchmark
Sector Funds
S&P/TSX Capped Consumer Staples
Index
Passive
S&P/TSX Capped Consumer Staples
Index
Methodology
Underlying Index
iShares S&P/TSX Capped Consumer Staples Index Fund
$16,000
$15,698
$14,000
$12,000
$10,000
$8,000
Apr-11
KEY POINTS
S&P/TSX Capped Consumer Staples Index
Aug-11
Dec-11
ETF
Benchmark

Only ETF listed in Canada that provides sector-specific exposure to
Canadian consumer staples companies

Relatively small number of holdings with significant concentration in the
top 5 holdings

Individual constituents are capped at 25%

ETF
Benchmark
YTD
1.6
1.7
Apr-12
1M
1.6
1.7
2009
9.4
Aug-12
3M
0.2
0.6
Dec-12
6M
0.8
2.1
2010
10.9
Apr-13
1YR
25.8
26.8
2011
6.8
Aug-13
3YR
18.2
5YR
15.1
2012
21.8
22.6
Dec-13
10YR
7.6
2013
22.9
23.6
ASSET ALLOCATION
METRICS
Standard Deviation
Sharpe Ratio
52-Week High
52-Week Low
1YR
12.1
2.1
3YR
-
Canadian Equity
U.S. Equity
Fixed Income
Cash
Other
Total
5YR
-
$31.12 - 01/21/2014
$24.75 - 02/05/2013
TOP HOLDINGS
99.9%
0.0%
0.0%
0.0%
0.1%
0.0%
100%
SECTOR ALLOCATION
SHOPPERS DRUG MART CORP.
ALIMENTATION COUCHE TARD INC. CL B
SAPUTO INC.
22.5%
22.1%
12.7%
Cons Staples
Cons Disc.
METRO INC
11.0%
Industrials
0.0%
LOBLAW COS. LTD.
8.2%
Energy
0.0%
EMPIRE CO. LTD. CL -A-
7.5%
Materials
0.0%
GEORGE WESTON LTD.
6.4%
Health Care
0.0%
JEAN COUTU GROUP (PJC) INC. CL A
3.3%
Financials
0.0%
NORTH WEST CO. INC.
2.4%
Utilities
0.0%
MAPLE LEAF FOODS INC.
2.3%
Info Tech
Telecom.
100.0%
0.0%
Total
0.0%
0.0%
100.0%
45
iShares S&P/TSX Capped Energy Fund
Sector Funds
OVERVIEW
SNAPSHOT
The iShares S&P/TSX Capped Energy Index Fund seeks to replicate the performance of the
S&P/TSX Capped Energy Index, net of expenses. The index is comprised of securities of
Canadian energy sector issuers listed on the TSX, selected by S&P using its industrial
classifications and guidelines for evaluating issuer capitalization, liquidity and
fundamentals.
Ticker
Price
Inception Date
Number of Holdings
XEG - TSX
$17.03
0.60%
2.34%
Quarterly
03/19/2001
52
Net Assets
$635 MM
644,423
Category
Benchmark
Methodology
Underlying Index
Sector Funds
S&P/TSX Capped Energy Index
Passive
iShares S&P/TSX Capped Energy Fund
$29,000
$24,000
$21,618
$19,000
$14,000
$9,000
Jan-04
KEY POINTS

Provides sector-specific exposure to Canadian-listed energy companies,
typically concentrated in the top few large-cap. constituents


Jan-06
ETF
Benchmark
ETF
Benchmark
Jan-08
YTD
-0.8
-0.7
1M
-0.8
-0.7
2009
40.3
41.5
Jan-10
3M
0.3
0.7
6M
7.6
8.0
2010
11.2
11.7
1YR
8.9
9.7
2011
-15.3
-14.8
Jan-12
3YR
-5.2
-4.7
2012
-5.4
-4.8
5YR
8.0
8.7
Jan-14
10YR
8.0
8.5
2013
12.7
13.3
ASSET ALLOCATION
METRICS
Standard Deviation
Sharpe Ratio
52-Week High
52-Week Low
1YR
8.2
1.0
3YR
17.7
-0.4
Canadian Equity
U.S. Equity
Fixed Income
Cash
Other
Total
5YR
19.2
0.4
$17.43 - 01/23/2014
$14.46 - 04/17/2013
TOP HOLDINGS
99.9%
0.0%
0.0%
0.0%
0.1%
0.0%
100%
SECTOR ALLOCATION
18.1%
SUNCOR ENERGY INC.
CANADIAN NATURAL RESOURCES LIMITE 14.1%
7.6%
CENOVUS ENERGY INC
5.3%
ENCANA ORD
100.0%
0.0%
Energy
Cons Disc.
Cons Staples
0.0%
CRESCENT POINT ENERGY CORP
5.1%
Industrials
0.0%
IMPERIAL OIL LTD.
4.0%
Materials
0.0%
TALISMAN ENERGY INC.
3.9%
Health Care
0.0%
CANADIAN OIL SANDS LTD.
3.4%
Financials
0.0%
HUSKY ENERGY INC.
3.2%
Utilities
0.0%
ARC RESOURCES LTD.
3.2%
Info Tech
Telecom.
Total
0.0%
0.0%
100.0%
46
iShares
S&P/TSX Global Gold Index Fund
Sector Funds
OVERVIEW
SNAPSHOT
The iShares S&P/TSX Global Gold Index Fund seeks to replicate the performance of the
S&P/TSX Global Gold Index, net of expenses. The index is comprised of securities of global
gold sector issuers selected by S&P using its industrial classifications and guidelines for
evaluating issuer capitalization, liquidity and fundamentals.
Ticker
Price
Inception Date
Number of Holdings
XGD - TSX
$11.38
0.60%
1.47%
Quarterly
03/23/2001
37
Net Assets
$566 MM
1,401,970
Category
Benchmark
Methodology
Underlying Index
Sector Funds
Passive
iShares S&P/TSX Global Gold Index Fund
$22,000
$20,000
$18,000
$16,000
$14,000
$12,000
$10,000
$8,000
$6,000
Jan-04
KEY POINTS

Provides sector specific exposure to global gold miners listed on the TSX,
NYSE, AMEX or NASDAQ, including American depository receipts (ADRs)


Historically, the holdings have been heavily weighted in Canada and
concentrated in the top 5 holdings

Market-cap.-weighted
$9,300
Jan-06
Trailing Performance (%) YTD
ETF
16.6
Benchmark
16.6
ETF
Benchmark
Jan-08
1M
16.6
16.6
2009
7.8
7.6
Jan-10
3M
1.6
1.7
6M
0.2
0.6
2010
26.0
26.7
1YR
-33.1
-32.7
2011
-14.2
-13.6
Jan-12
3YR
-20.6
-20.2
2012
-15.3
-14.7
5YR
-9.7
-9.3
Jan-14
10YR
-0.7
-0.3
2013
-47.6
-47.4
ASSET ALLOCATION
METRICS
Standard Deviation
Sharpe Ratio
52-Week High
52-Week Low
1YR
38.7
-0.9
3YR
29.6
-0.7
Canadian Equity
U.S. Equity
Fixed Income
Cash
Other
Total
5YR
31.2
-0.3
$17.67 - 02/07/2013
$9.32 - 12/23/2013
TOP HOLDINGS
99.9%
0.0%
0.0%
0.0%
0.1%
0.0%
100%
SECTOR ALLOCATION
BARRICK GOLD CORP
GOLDCORP INC
NEWMONT MINING CORP
17.4%
16.2%
8.4%
Metals and Mining
Cons Disc.
FRANCO NEVADA CORP
5.8%
Cons Staples
0.0%
YAMANA GOLD INC
5.5%
Industrials
0.0%
RANDGOLD RESOURCES LTD. ADS
5.3%
Energy
0.0%
ANGLOGOLD ASHANTI LTD. ADS
4.7%
Health Care
0.0%
AGNICO-EAGLE MINES LIMITED
4.4%
Financials
0.0%
KINROSS GOLD CORP
4.2%
Utilities
0.0%
ELDORADO GOLD CORPORATION
3.6%
Info Tech
Telecom.
100.0%
0.0%
Total
0.0%
0.0%
100.0%
47
Specialty
OVERVIEW
SNAPSHOT
The iShares Gold Bullion ETF seeks to replicate the performance of the price of physical
gold bullion, less expenses.
Ticker
Price
Inception Date
Number of Holdings
CGL - TSX
$11.06
0.53%
n/a
N/A
05/28/2009
1
Net Assets
$379 MM
130,940
Category
Benchmark
Methodology
Underlying Index
Specialty
Gold Spot $/OZ
Passive
n/a
Gold Spot $/OZ
$18,000
$16,000
$14,000
$12,000
$10,000
$8,000
May-09
KEY POINTS

Holds physical gold bullion in the form of 100 or 400 troy-ounce bars,
may also hold cash and permitted gold certificates

Bullion is stored in the vault facilities of ScotiaMocatta

Holdings are spot-inspected and audited twice a year

U.S. dollar value of the bullion is hedged to the Canadian dollar

Investors who do not want the U.S. dollar hedged can select the nonhedged version (CGL.C-TSX)
$11,741
Jan-10
ETF
Benchmark
ETF
Benchmark
Sep-10
YTD
3.6
3.6
May-11
1M
3.6
3.2
2009
24.4
Jan-12
3M
-6.0
-5.9
6M
-5.3
-6.1
2010
29.1
29.5
Sep-12
1YR
-25.8
-25.2
2011
9.6
10.1
May-13
3YR
-2.6
-2.3
2012
7.1
7.1
5YR
6.0
Jan-14
10YR
12.0
2013
-28.7
-28.0
ASSET ALLOCATION
METRICS
Standard Deviation
Sharpe Ratio
52-Week High
52-Week Low
1YR
19.6
-1.4
5YR
-
$15.06 - 02/07/2013
$10.54 - 06/28/2013
TOP HOLDINGS
Gold Bullion
3YR
20.9
-0.2
Canadian Equity
U.S. Equity
Fixed Income
Cash
Other
Total
0.0%
0.0%
0.0%
0.0%
0.0%
100.0%
100%
Materials
Cons Disc.
100.0%
0.0%
SECTOR ALLOCATION
100.0%
Cons Staples
0.0%
Industrials
0.0%
Energy
0.0%
Health Care
0.0%
Financials
0.0%
Utilities
0.0%
Info Tech
Telecom.
Total
0.0%
0.0%
100.0%
48
Specialty
OVERVIEW
SNAPSHOT
Ticker
Price
Inception Date
Number of Holdings
HAC - TSX
$13.79
0.99%
n/a
Annually, if any
11/20/2009
n/a
Net Assets
$122 MM
30,902
Category
Benchmark
Methodology
Underlying Index
Specialty
MSCI World Index
Actively Managed
n/a
The Horizons Seasonal Rotation ETF uses a proprietary, seasonal rotation investment
strategy. The strategy’s core position consists of broad markets securities at seasonally
favourable times of the year for equities and money-market securities at seasonally
unfavourable times of the year for equities.
$16,000
$14,000
$13,711
$12,000
$10,000
KEY POINTS

Actively managed by Brooke Thackray and Don Vialoux who have a
combined 50 years of experience

Overweight exposure to broad markets in favourable seasonal periods and
underweight market exposure in unfavourable seasonal periods to
generate alpha

Strategy also applies technical analysis and market timing factors

Primarily invests in exchange-traded products and sometimes futures
contracts to gain exposure to select broad markets

Historically, the strategy has a turnover ratio in excess of 500%

Performance fee of 20% over high water mark plus 5% hurdle rate

Trading costs are in addition to the MER and have ranged from 24-59bps
since inception

Rebalancing can be daily and there is no restriction on market cap.

Advisor series (HAC.A-TSX) pays a trailer of 75bps and carries a
$8,000
Nov-09
Jun-10
ETF
Benchmark
ETF
Benchmark
52-Week High
52-Week Low
1YR
7.2
0.4
3YR
6.3
0.8
Jan-11
YTD
-3.6
-3.7
Aug-11
1M
-3.6
-3.7
2009
30.9
Mar-12
3M
1.5
0.2
6M
1.0
7.2
2010
12.7
12.5
Oct-12
1YR
3.8
16.8
2011
5.9
-4.9
3YR
5.9
13.9
5YR
14.6
2012
3.7
16.7
Canadian Equity
U.S. Equity/Commodities
Cash
Currency
5YR
-
$14.47 - 01/20/2014
$12.95 - 02/25/2013
TOP HOLDINGS
May-13
Dec-13
10YR
5.3
2013
12.9
27.5
ASSET ALLOCATION
METRICS
Standard Deviation
Sharpe Ratio
MSCI World Index
Total
14.6%
85.4%
0.2%
0.2%
100%
SECTOR ALLOCATION
iShares Russell 2000 ETF
PowerShares QQQ Trust, Series 1
Horizons S&P/TSX 60™ Index ETF
15.0%
15.0%
14.6%
Cons Disc.
Materials
21.1%
18.6%
Horizons S&P 500® Index ETF
14.4%
Financials
17.5%
Materials Select Sector SPDR Fund
9.9%
Health Care
7.1%
SPDR S&P Homebuilders ETF
9.7%
Energy
6.8%
Horizons COMEX® Silver ETF
6.3%
Telecom.
1.6%
SPDR S&P Metals & Mining ETF
5.0%
Utilities
1.2%
Financial Select Sector SPDR Fund
4.9%
Consumer Discretionary Select Sector SPDR Fund
4.8%
Total
74.0%
49
Investment Funds Team
Troy Killick, CFA - Director, Investment Funds
Troy leads the Investment Funds team which is responsible for providing research and analysis on
mutual funds, exchange-traded funds (ETFs) and closed-end funds. Troy also co-chairs the New Product
Review Working Team, manages the new product approval process and sits on the Sales Practices
Committee of the Alternative Investment Management Association (AIMA). He brings a decade of
investing experience centered on mutual funds, closed-end funds and ETFs. Prior to joining CIBC Wood
Gundy in 2010, Troy worked for a Canadian mutual fund company in sales, product management,
product development and fund oversight. Before taking on head office roles, he worked directly with
clients, providing wealth and investment management advice. Troy graduated from Wilfrid Laurier
University with a Bachelors degree in Economics. He is a CFA charter holder, a Certified Financial
Planner and holds the FMA and CIM designations from the Canadian Securities Institute.
Richard Woo - ETF Specialist
Richard joined CIBC Wood Gundy in April 2010 as the Investment Strategy Group’s Exchange-Traded
Funds (ETF) Specialist. He is responsible for analyzing global macro-economic, geo-political, commodity,
sector and industry trends and highlighting ETFs for exposure to those trends. He brings over 15 years of
experience in the capital markets industry, having previously worked in institutional trading, sales and
research. Previously, he was a Brendan Wood-ranked sell-side technology hardware analyst and worked
as a buy-side analyst where he covered the technology sector and ETFs. Richard has covered the ETF
asset class since 2006 and brings a wealth of ideas, knowledge and experience to CIBC Wood Gundy.
Richard graduated from Concordia University (Montreal, Quebec) with a Bachelor of Commerce in
Finance and has passed the CFA level 2 exam.
Jimmy Mok, MBA, P.Eng – Senior Manager, Investment Funds
Jimmy is responsible for conducting research and due diligence on mutual funds, ETFs, closed-end funds
and new investment products. Jimmy is also involved in special projects to improve business processes
and drive revenue growth. He brings a decade of analytical and quantitative experience from his
previous career in computer hardware chip design with several industry-leading semiconductor firms.
Jimmy has completed all the courses required by the Canadian Securities Institute to qualify for the
Chartered Investment Manager designation. He graduated from the University of Waterloo with an
Honors Bachelor of Applied Science in Computer Engineering and from the Rotman School of
Management with a Master of Business Administration where he made the Dean’s List and was a
Bregman Scholar.
50
Glossary Of Terms
Definitions
Rebalancing: The process of bringing a portfolio of securities back to the intended target weighting.
Reconstitution: The process of re-evaluating the components of a market index to ensure the existing list of securities and
weightings reflect the index’s construction, composition, style and weighting methodology.
Market Capitalization: A method to calculate the market capitalization of a company based on the number of shares
available in the market. ETFs using this method often use the variation of modified or free float market cap. which excludes
shares that are not circulated, such as treasury and insider’s shares.
Index Methodologies
Passive: We define passive ETFs as the ‘plain vanilla’ ETFs which track a broad index and are constructed with basic
screens which are not necessarily related to valuation or fundamental criteria. Passive ETFs have a lower management
expense ratio compared to actively-managed ETFs.
Actively Managed: Actively-managed ETFs follow a specific investment mandate and are managed by a fund manager.
Some ETFs may use a passive methodology with an active management overlay. Typically, actively-managed ETFs have a
higher management expense ratio compared to passive ETFs within the same investible universe.
Intelligent Indexing: Intelligently-Indexed ETFs follow a quantitative model in selecting and allocating securities from a
defined investable universe. This is also known as factor-based indexing or alternative beta, amongst other monikers.
Statistics
Management Expense Ratio (MER): The percentage of total fund assets that is used to cover expenses associated with the
operation of a fund. This amount is taken out of the fund's assets and lowers the return that the fund holders will achieve.
These expenses include management fees and operating expenses. The management fee is the fee that is charged to the
fund by the issuer and it is often a fixed percentage of the total assets. The operating expenses are the expenses that the
fund incurs through its operations and this can include brokerage fees, taxes, investor services and interest expenses. The
MERs quoted in this document are as of the most recent period; they are reported in the fund’s regulatory filings and are
not forward-looking.
Net Assets: The total assets of a fund less any liabilities, as of a particular reporting date.
Sharpe Ratio: A statistical measure of calculating the risk-adjusted return of a portfolio. It is calculated by subtracting the
risk-free rate from the portfolio’s rate of return and dividing the result by the standard deviation over a given time period.
A high Sharpe ratio reflects a better risk-adjusted performance.
Standard Deviation: A statistical measure of risk reflecting the extent to which rates of return for an asset or portfolio may
vary around the average return from one period to the next. The larger the standard deviation, the greater the range of
possible returns and therefore, the more volatile the portfolio.
Weighted Average Duration: A measure of a fixed-income portfolio’s interest-rate sensitivity based on each individual
security’s interest-rate sensitivity and its portfolio weight. Duration measures the price sensitivity of a bond to a change in
the interest rate. Bond prices move inversely to interest rates (i.e., as the interest rate increases, the bond price falls).
Weighted Average Term: An average term to maturity of all fixed-income securities in a portfolio, with each security's
term to maturity weighted by its corresponding percentage contribution to the portfolio's total assets.
Weighted Average Yield to Maturity (YTM): A rate of return obtained on a fixed-income portfolio if all securities are held
to their maturity dates. The yield to maturity of each bond is calculated by using its current market price, par value, coupon
and remaining time to maturity. This calculation assumes that all coupon payments could be reinvested at the same rate as
the bond’s current yield to maturity.
51
Disclosures And Disclaimers
This report is issued and approved for internal use only in Canada by registered representatives of CIBC Wood Gundy, a division of CIBC World
Markets Inc., Member of the Canadian Investor Protection Fund and Member of the Investment Industry Regulatory Organization of Canada,
and by its affiliates via their registered representatives. This report is not authorized for distribution in the Unites States. This document and
any of the products and information contained herein are not intended for the use of private investors in the United Kingdom.
The authors of this report hold one or more positions in the exchange traded funds discussed in this report. CIBC World Markets Inc. is or
is seeking to become the market maker for one or more of the exchange traded funds discussed in this report.
This report is provided for informational purposes only and does not constitute an offer or solicitation to buy or sell any securities
discussed herein in any jurisdiction where such offer or solicitation would be prohibited.
The securities mentioned in this report may not be suitable for all types of investors. This report does not take into account the
investment objectives, financial situation or specific needs of any particular client of CIBC Wood Gundy. Recipients should consider this report
as only a single factor in making an investment decision and should not rely solely on investment recommendations contained herein, if any, as
a substitution for the exercise of independent judgment of the merits and risks of investments. CIBC Wood Gundy suggests that, prior to
making an investment decision with respect to any security recommended in this report; the recipient should contact one of our client advisers
in the recipient’s jurisdiction to discuss the recipient’s particular circumstances. CIBC Wood Gundy will not treat non-client recipients as its
clients by virtue of their receiving this report.
Information, opinions and statistical data contained in this report were obtained or derived from sources believed to be reliable, but CIBC
Wood Gundy does not represent that any such information, opinion or statistical data is accurate or complete, and they should not be relied
upon as such. All estimates, opinions and recommendations expressed herein constitute judgments as of the date of this report and are subject
to change without notice.
Commissions, trailing commissions, management fees and expenses all may be associated with exchange traded fund investments.
Please read the prospectus before investing. The indicated rates of return are the historical annual compounded total returns, including changes
in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income
taxes payable by any security holder that would have reduced returns. Exchange traded funds are not guaranteed, and past performance is not
a guarantee of future results. CIBC Wood Gundy makes no representation or warranty, express or implied, regarding future performance of
any security mentioned in this report.
Nothing in this report constitutes legal, accounting or tax advice. Since the levels and bases of taxation can change, any reference in this
report to the impact of taxation should not be construed as offering tax advice on the tax consequences of investments. As with any investment
having potential tax implications, clients should consult with their own independent tax adviser.
This report may provide addresses of, or contain hyperlinks to, Internet web sites. CIBC Wood Gundy has not reviewed the linked
Internet web site of any third party and takes no responsibility for the contents thereof. Each such address or hyperlink is provided solely for
the recipient's convenience and information, and the content of linked third-party web sites is not in any way incorporated into this document.
Recipients who choose to access such third-party web sites or follow such hyperlinks do so at their own risk.
© 2014 CIBC World Markets Inc. All rights reserved. Unauthorized use, distribution, duplication or disclosure without the prior written
permission of CIBC World Markets is prohibited by law and may result in prosecution.
52
CIBC Wood Gundy is a division of CIBC World Markets Inc., a subsidiary of
CIBC, member of the Canadian Investor Protection Fund and member of the
Investment Industry Regulatory Organization of Canada. 200 King St. West
Suite 700, Toronto, Canada M5H AA8 (416) 594-7000
www.cibcwoodgundy.com

ETF Focus List - CIBC Wood Gundy

Transcription

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