Horizons ETF Guide. Innovation is our capital. Make it yours. Innovation is our capital. Make it yours. ETF Solutions for every investor TM

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1 Horizons ETF Guide s LPH BENCHMRK BETPRO ETF Solutions for every investor TM

2 Horizons ETFs ETF solutions for every investor We Believe Every investor, regardless of portfolio size, should have access to the best investment strategies and money managers at the best possible price. Our Canadian suite of exchange traded funds includes innovative tools and solutions that provide exposure to: 1 ctive Management: Get the active advantage with our lpha ETFs Horizons ETFs offers the largest family of actively managed ETFs in Canada. nd, all of our actively managed ETFs have low management fees. 2 Indexing: Our Benchmark ETFs are indexing evolved low cost and tax efficient Horizons is committed to offering Canadian investors low cost investment solutions, providing Canada s low cost ETF. 3 Tactical Trading Tools: ccess leveraged, inverse and volatility based strategies to Profit or Protect in Bull & Bear Markets with BetaPro ETFs The Horizons BetaPro Bull Plus, Bear Plus, and Inverse ETFs aim to give investors access to achieve 2x, -2x or -1x the daily performance of their respective underlying benchmarks. MODEL PORTFOLIOS Customized Risk Tolerance Based solutions WHT S YOUR RISK NUMBER? MNGING RISK IS KEY DRIER IN DELERING LONG-TERM PERFORMNCE. Learn more at: HorizonsETFs.com/portfolios

3 Our Partners USPICE uspice Capital dvisors. uspice Capital dvisors is an innovative asset manager that focuses on applying rules-based investment strategies across a broad range of financial and commodity markets. Its portfolio managers are seasoned institutional commodity traders. Their experience trading Natural Gas, one of the most volatile asset classes, forms the backbone of their strategy for generating profits while preserving capital and dynamically managing risk. Fiera Capital Corp. Publically traded with offices across the U.S. and Canada, Fiera Capital Corp. has become a leader in the realm of non-traditional investment solutions. It has vast experience and expertise in Canadian fixed income, North merican preferred shares, Canadian and foreign equities, asset allocation and alternative strategies. Guardian Capital LP is one of Canada s leading asset managers which has been managing institutional assets since In partnership with Horizons ETFs, it has successfully implemented its GPS approach that focuses on three key fundamental drivers: Growth of dividend payout; payout of cash flow; and sustainability of the payout. Having a portfolio of stocks that offers a combination of these three factors gives Guardian an excellent track record and future in dividend investing. Morningstar, Inc. Morningstar, Inc. is a leading provider of independent investment research in North merica, Europe, ustralia, and sia. They offer an extensive line products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. PŮR Investing Inc. Founded and led by Mark Yamada, PŮR Investing Inc. is a portfolio manager specializing in investment solutions. PŮR maintains its focus on controlling risk, as well designing portfolios to outperform benchmarks by protecting capital in two ways: first, under normal market conditions, where volatility is within historical averages; second, when volatility is historically high or low. PŮR Investment s uses its proprietary SmartRisk investment process a tactical asset allocation approach to automatically de-risk portfolios when markets display high volatility and increase risk when volatility is low. Universa Investment L.P. Founded in January 2007 by Mark Spitznagel, chief investment officer, and advised by Nassim Taleb, acclaimed author, Universa is an investment management firm that specializes in hedging tail risk as a means to enhance long-term equity returns. Universa portfolios are, by construction, exceedingly positively-skewed, robust to extreme risk assumptions, and non-linear to common risk factors (such as beta).

4 Horizons ETFs Get the ctive dvantage LPH Equity Sub-advised by Guardian Capital LP HJ Horizons ctive Emerging Markets Dividend ETF HL Horizons ctive Cdn Dividend ETF HZ Horizons ctive Global Dividend ETF Covered Call Managed by Horizons ETFs Management (Canada) Inc. HX Horizons ctive S&P/TSX 60 Index Covered Call ETF HE Horizons Enhanced Income US Equity (USD) ETF HE.U Horizons Enhanced Income US Equity (USD) ETF C $ HEE Horizons Enhanced Income Energy ETF HEF Horizons Enhanced Income Financials ETF HEJ Horizons Enhanced Income International Equity ETF HEP Horizons Enhanced Income Gold Producers ETF HEX Horizons Enhanced Income Equity ETF HGY Horizons Gold Yield ETF HNY Horizons Natural Gas Yield ETF Fixed Income Sub-advised by Fiera Capital Corp. HB Horizons ctive Corporate Bond ETF HD Horizons ctive Cdn Bond ETF HF Horizons ctive Yield Matched Duration ETF HFP Horizons ctive Floating Rate Preferred Share ETF HFR Horizons ctive Floating Rate Bond ETF HPR Horizons ctive Preferred Share ETF HUF Horizons ctive US Floating Rate Bond (USD) ETF HUF.U Horizons ctive US Floating Rate Bond (USD) ETF HYI Horizons ctive High Yield Bond ETF Balanced Sub-advised by PŮR Investing H Horizons ctive Diversified Income ETF LL actively managed ETFs are available in dvisor Class (.) or in dvisor Class (.) C $ lternative Strategies Managed by Horizons ETFs Management (Canada) Inc. HC Horizons Seasonal Rotation ETF HUT Horizons Canadian Black Swan ETF lternative Strategies Sub-advised by Universa Investment L.P. C $ HUS.U Horizons US Black Swan ETF BENCHMRK Horizons ETFs Indexing Evolved The purchase and sale process for an dvisor Class ETF is exactly the same as it is for any other ETF listed on the Toronto Stock Exchange. For advisors looking to purchase the dvisor Class units, it is important to note the unique ticker symbols (and CUSIP numbers) of these ETFs. Horizons ETFs will pay service fees to dealers on a quarterly basis based on the unique CUSIP number for these ETFs. dvisors will only receive this service fee if their clients continue to hold the ETF at the end of the applicable quarter. Equities HXT Horizons S&P/TSX 60 Index ETF HXT.U Horizons S&P/TSX 60 Index ETF HXS Horizons S&P 500 Index ETF HXS.U Horizons S&P 500 Index ETF HEW Horizons S&P/TSX 60 Equal Weight Index ETF HXE Horizons S&P/TSX Capped Energy Index ETF HXF Horizons S&P/TSX Capped Financials Index ETF Fixed Income HBB Horizons Cdn Select Universe Bond ETF Currencies DLR Horizons U.S. Dollar Currency ETF DLR.U Horizons U.S. Dollar Currency ETF Commodities HUC Horizons NYMEX Crude Oil ETF HUN Horizons NYMEX Natural Gas ETF HUG Horizons COMEX Gold ETF HUZ Horizons COMEX Silver ETF C $ C $ C $ lternative Strategies Morningstar, Inc. HHF Horizons Morningstar Hedge Fund Index ETF lternative Strategies uspice Capital dvisors HBR Horizons uspice Broad Commodity Index ETF HMF Horizons uspice Managed Futures Index ETF olatility HU BetaPro S&P 500 IX Short-Term Futures ETF Inverse Equities (-1X) HIX BetaPro S&P/TSX 60 Inverse ETF HIU BetaPro S&P 500 Inverse ETF Inverse olatility (-1X) HI BetaPro S&P 500 IX Short-Term Futures Inverse ETF The lternative Strategy ETFs are also available in dvisor Class (.) C $ = Listed in (.U)

5 BETPRO Horizons ETFs Profit or Protect in Bull & Bear Markets BULL PLUS ETFs Leveraged (Equities) (2X) HXU BetaPro S&P/TSX 60 Bull Plus ETF HEU BetaPro S&P/TSX Capped Energy Bull Plus ETF HFU BetaPro S&P/TSX Capped Financials Bull Plus ETF HGU BetaPro S&P/TSX Global Gold Bull Plus ETF HMU BetaPro S&P/TSX Global Base Metal Bull Plus ETF HSU BetaPro S&P 500 Index Bull Plus ETF HQU BetaPro NSDQ-100 Bull Plus ETF HJU BetaPro MSCI Emerging Markets Bull Plus ETF HPU BetaPro MSCI Japan Bull Plus ETF Leveraged (Commodities) (2X) HBU BetaPro COMEX Gold Bullion Bull Plus ETF HNU BetaPro NYMEX Natural Gas Bull Plus ETF HOU BetaPro NYMEX Crude Oil Bull Plus ETF HZU BetaPro COMEX Silver Bull Plus ETF BER PLUS ETFs Inverse Leveraged (Equities) (-2X) HXD BetaPro S&P/TSX 60 Bear Plus ETF HED BetaPro S&P/TSX Capped Energy Bear Plus ETF HFD BetaPro S&P/TSX Capped Financials Bear Plus ETF HGD BetaPro S&P/TSX Global Gold Bear Plus ETF HMD BetaPro S&P/TSX Global Base Metal Bear Plus ETF HSD BetaPro S&P 500 Index Bear Plus ETF HQD BetaPro NSDQ-100 Bear Plus ETF HJD BetaPro MSCI Emerging Markets Bear Plus ETF HPD BetaPro MSCI Japan Bear Plus ETF Inverse Leveraged (Commodities) (-2X) HBD BetaPro COMEX Gold Bullion Bear Plus ETF HND BetaPro NYMEX Natural Gas Bear Plus ETF HOD BetaPro NYMEX Crude Oil Bear Plus ETF HZD BetaPro COMEX Silver Bear Plus ETF Leveraged (olatility) (2X) HU BetaPro S&P 500 IX Short-Term Futures Bull Plus ETF Non-Leveraged (olatility) (1X) HU BetaPro S&P 500 IX Short-Term Futures ETF Leveraged (Fixed Income) (-2X) HTD BetaPro U.S. 30-Year Bond Bear Plus ETF Inverse (Equities) (-1X) HIX BetaPro S&P/TSX 60 Inverse ETF HIU BetaPro S&P 500 Inverse ETF Inverse olatility (-1X) HI BetaPro S&P 500 IX Short-Term Futures Inverse ETF Free tools: Technical nalysis and Elliott Wave nalysis Register Now at HorizonsETFs.com/recognia

6 BETPRO Impact of olatility on Returns of Bull+ ETFs olatility is the most significant determinant of the magnitude of the effects of compounding due to daily rebalancing. The table below illustrates the impact of two factors, benchmark volatility and benchmark performance, on a leveraged ETF s period performance where it has an investment objective to correspond to twice (200%) the daily performance of an index. The table shows estimated returns of a Horizons BetaPro Bull Plus ETF for a number of combinations of benchmark performance and benchmark volatility over a one year period. ssumptions used in the tables include: a) no fees, expenses or taxes and b) borrowing/lending rates (to obtain leverage) of zero percent. Refer to the column labelled One Year Index Performance and follow the row where the return is 10%. The column next to it is 200% One Year Index Performance and it shows 20%. If there is 0% benchmark volatility, you can expect a return of the ETF to be 21%. The compounding resulted in a higher return than expected. With increased benchmark volatility, the expected return changes. Using that same row, if you had extreme volatility (say 40%), the estimated return would be approximately 3.1%, which is less than twice the index return, and perhaps less than you expected. *If any fees, expenses or taxes of the Leveraged ETF were included, performance would be lower than shown in the table. Source of Data: ProShare dvisors LLC. 1 Benchmark volatility is a statistical measure of the magnitude of fluctuations in the returns of a benchmark and is calculated as the standard deviation of the natural logarithms of one plus the benchmark return (calculated daily), multiplied by the square root of the number of trading days per year (assumed to be 252). Expected Returns = 200% One Year Index Performance. Source of Data: ProShare dvisors LLC.

7 Horizons ETFs Recent wards Horizons Morningstar Hedge Fund Index ETF (HHF) Winner of 2012 ETF Innovation of the year Horizons ctive Floating Rate Bond ETF (HFR) Winner of 2013 Morningstar Best Fixed Income ETF Horizons ctive Corporate Bond ETF (HB) Winner of 2013 Fundgrade + Horizons ETFs is a member of Mirae sset Global Investments. Commissions, trailing commissions, management fees and expenses all may be associated with an investment in exchange traded products managed by lphapro Management Inc. and Horizons ETFs Management (Canada) Inc. (the Horizons Exchange Traded Products ). The Horizons Exchange Traded Products are not guaranteed, their values change frequently and past performance may not be repeated. The prospectus contains important detailed information about the Horizons Exchange Traded Products. Please read the prospectus before investing. The Horizons Exchange Traded Products include the Horizons Index ETFs ( Index ETFs ), Bull Plus and Bear Plus ETFs ( Plus ETFs ), Inverse ETFs ( Inverse ETFs ), IX ETFs (defined below) and actively managed ETFs. The Plus ETFs and certain other Horizons Exchange Traded Products use leveraged investment techniques that can magnify gains and losses and may result in greater volatility of returns. These Horizons Exchange Traded Products are subject to leverage risk and may be subject to aggressive investment risk and price volatility risk, which, where applicable, are described in their respective prospectuses. Each Plus ETF seeks a return, before fees and expenses, that is either 200% or -200% of the performance of a specified underlying index, commodity or benchmark (the Target ) for a single day. Each Index ETF or Inverse ETF seeks a return that is 100% or - 100%, respectively, of the performance of a Target. Due to the compounding of daily returns, a Plus ETF s or Inverse ETF s returns over periods other than one day will likely differ in amount and possibly direction from the performance of their respective Target(s) for the same period. The Horizons Exchange Traded Products whose Target is the S&P 500 IX Short-Term Futures Index (the IX ETFs ), one of which is a Plus ETF, one of which is an Inverse ETF, and one of which is an Index ETF, as described in their prospectus, are speculative investment tools that are not conventional investments. The IX ETFs Target is highly volatile. s a result, the IX ETFs are not generally viewed as stand-alone long-term investments. Historically, the IX ETFs Target has tended to revert to a historical mean. s a result, the performance of the IX ETFs Target is expected to be negative over the longer term and neither the IX ETFs nor their Target are expected to have positive long term performance. Investors should monitor their holdings, as frequently as daily, to ensure that they remain consistent with their investment strategies. Standard & Poor s and S&P are registered trademarks of Standard and Poor s Financial Services LLC ( S&P ), TSX is a registered trademark of TSX Inc.( TSX ) and Morningstar is a registered trademark of Morningstar,Inc. ( Morningstar ). These marks have been licensed for use by lphapro Management Inc. and Horizons ETFs Management (Canada) Inc. where applicable. The Horizons Exchange Traded Products are not sponsored, endorsed, sold, or promoted by S&P, TSX or Morningstar and their affiliated companies and none of these parties make any representation, warranty or condition regarding the advisability of buying, selling or holding units/shares in the Horizons Exchange Traded Products. ll trademarks/service marks are registered by their respective owners. None of the owners thereof or any of their affiliates sponsor, endorse, sell, promote or make any representation regarding the advisability of investing in the Horizons Exchange Traded Products. Complete trademark and service-mark information is available at Morningstar wards 2013 (c). Morningstar, Inc. ll Rights Reserved. warded to Horizons ETFs for Best Fixed Income ETF, Canada.

8 s HorizonsETFs.com H LPH BENCHMRK BETPRO ETF Solutions for every investor TM