Canadian Capitalist Logo Dark
No Result
View All Result
Sunday, January 29, 2023
  • Login
  • Register
  • Home
  • Economy
  • Investing
  • Markets
  • Real Estate
  • Retirement
  • Tax Savings
  • Trivia
  • Resources
Subscribe
Canadian Capitalist Logo Light
  • Home
  • Economy
  • Investing
  • Markets
  • Real Estate
  • Retirement
  • Tax Savings
  • Trivia
  • Resources
No Result
View All Result
Canadian Capitalist Logo Mobile
No Result
View All Result
Home Uncategorised

From the archives: Horizon AlphaPro Managed S&P/TSX 60 ETF (HAX)

by Ram Balakrishnan
August 3, 2010
Reading Time: 2 mins read
129 4
0
how to buy penny stocks in canada online
152
SHARES
1.9k
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

When I first wrote about the introduction of the Horizon AlphaPro Managed S&P/TSX 60 ETF [TSX: HAX] (If You Seek Alpha, You May Want to Look Elsewhere, Jan. 13, 2009), I was skeptical that the fund’s tactical allocation can deliver outperformance. The skepticism was based on the belief that it is hard to outperform the benchmarks when saddled with high fees (compared to other ETFs) and high turnover.

Sure enough, 2009 was a bad year for HAX. The ETF returned 5.94% compared to 21.33% for the index. The ETF’s MER in its first year came in at 1.05% and the fund’s 340% portfolio turnover rate cost investors another 0.47% in trading expenses. The fund manager offers this explanation for the underperformance in their 2009 annual report (available here on SEDAR):

At the beginning of 2009, the ETF was about 14% underweight in the Financial sector and had less than 3% difference in all other sectors. In addition, there was a 5% cash position in the ETF.

The cash position was increased gradually during the first three months of 2009 since the technical picture of the markets remained weak. The ETF slightly outperformed the market during this period.

The cash position was about 35% at the beginning of March. Since less money was put to work, the swift rally that started the following weeks significantly hurt the relative performance of the ETF versus the market, even though the cash position was gradually reduced to less than 2% by early June. In addition, the main underweight sector was still the Financials while most financial stocks did well during this period.

Translation: We bet against those darned banks and they shot up like a rocket (In 2009, financials returned close to 50% between March and early June). So, sorry.

HAX’s performance thus far is 2010 isn’t much to write about either. In the first six months of the year, the fund lost 6.5% compared to a loss of 3.3% for the index.

Related posts:

  1. Finding a Financial Advisor, Part 1
  2. Carnival of Debt Reduction # 19
  3. The Income Tax Cut is Better
  4. This and That
Share61Tweet38Share11

Get real time update about this post categories directly on your device, subscribe now.

Unsubscribe
Previous Post

Wise Investing should complement a savings habit

Next Post

A tuneup to skip

Ram Balakrishnan

Ram Balakrishnan

Related Posts

Why you cant afford a house in Canada

Why You Can’t Afford A Home In Canada?

January 24, 2022
358
investing benefits
Investing

Finding a Financial Advisor, Part 1

June 19, 2021
2.1k
investing in bitcoin

Is it time to invest in Bitcoins again?

May 13, 2019
2k
when do reits liquidate
Uncategorised

Performance of Currency-Neutral S&P 500 Index Funds

January 19, 2014
2k
is mortgage interest tax deductible
Uncategorised

The 2013 Sleepy Portfolio Report Card

January 12, 2014
2k
how to buy individual stocks in canada
Uncategorised

Asset Class Returns for 2013

January 5, 2014
1.9k
Next Post
recommended preferred stocks

A tuneup to skip

Please login to join discussion
Canadian Capitalist

© 2022 Canadian Capitalist

Navigate Site

  • Home
  • Disclaimer
  • Privacy Policy
  • Advertisement
  • Contact Us

Follow Us

No Result
View All Result
  • Home
  • Economy
  • Investing
  • Markets
  • Real Estate
  • Retirement
  • Tax Savings
  • Trivia
  • Resources

© 2022 Canadian Capitalist

Welcome Back!

Sign In with Facebook
Sign In with Google
Sign In with Linked In
OR

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Sign Up with Facebook
Sign Up with Google
Sign Up with Linked In
OR

Fill the forms below to register

*By registering into our website, you agree to the Terms & Conditions and Privacy Policy.
All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
two man and woman standing on doorway
The man who does not read has no advantage over the man who cannot read - Mark Twain