Horizons ETFs Management (LATAM) LLC is an investment advisory firm that oversees the development of the Horizons-branded investment products in Latin America. Its affiliate Horizons Investment Management Inc. ("HIMI") acts as Portfolio Manager to Fondo Bursátil Horizons MILA 40 de S&P, an exchange traded fund domiciled in Colombia and established according to the provisions set out in Decree 2555 of 2010 Republic of Colombia, administered by Cititrust Colombia S.A. Sociedad Fiduciaria. Participation units of Fondo Bursátil Horizons MILA 40 de S&P are listed on the Bolsa de Valores de Colombia (BVC) under the ticker symbol HMILA40. Cititrust Colombia S.A. Sociedad Fiduciaria is an entity supervised by the Colombian Superintendence of Finance. 

The Horizons ETFs Group (www.HorizonsETFs.com)
Horizons ETFs Management (LATAM) LLC and Horizons Investment Management Inc. are members of the Horizons ETFs Group. The Horizons ETFs Group consists of innovative financial services companies offering regional families of ETFs in Canada, Korea, Hong Kong, Australia, the United States and Colombia. Currently, all of the ETFs offered by these companies use the Horizons ETFs brand with the exception of the 'BetaShares' family of ETFs in Australia and the 'Mirae Asset Tiger ETFs' family in Korea. With approximately $7 billion in assets under management and 180 ETF listings worldwide, the Horizons ETFs Group makes up one of the largest collective families of ETFs in the world. All of the Horizons ETFs Group companies and affiliates are subsidiaries of Mirae Asset Global Investments Co., Ltd. 

Mirae Asset Global Investments (www.MiraeAsset.com)
Mirae Asset Global Investments is one of the world's largest investment managers in emerging market equities (Investments & Pensions Europe, January 2013). With approximately 550 employees, including 137 dedicated investment professionals, Mirae Asset offers a breadth of emerging markets expertise. Mirae Asset's offices are located in Australia, Brazil, Canada, China, Colombia, Hong Kong, India, Korea, Taiwan, the U.K., the United States and Vietnam. Headquartered in Seoul, South Korea, the firm manages $58 billion in assets globally through a diversified platform to offer market-leading franchises in traditional equity and fixed income products, ETFs and alternative strategies, such as real estate, private equity and hedge funds.
 

The Mercado Integrado Latino Americano (MILA) exchange was formed in 2011 by the integration of trading platforms from the Colombia Stock Exchange, Lima Stock Exchange and Santiago Stock Exchange. MILA is Latin America's second largest stock exchange after Brazil's BM&FBOVESPA by market value, and the largest by number of listings.
Daily closing values: Horizons ETFs publishes an ETF's previous day's closing market price and closing net asset value (NAV) per participation unit on its website. Go to the Prices and Performance page (click here) for a detailed list. 

Intraday values: An ETF's indicative intraday value, known as its Indicative Optimized Portfolio Value (IOPV), represents an estimate of an ETF's current fair (or theoretical) value. By comparing the IOPV with current bid/ask prices, investors and the general public can see whether an ETF is being priced fairly in the market and determine a price at or around which they might want to place a limit order. Indicative intraday values are calculated at 15-second intervals throughout the trading day. Consult your quotation service provider (e.g., Bloomberg or Thomson Reuters) for more information on how to look up an IOPV on your trading platform. 

Secondary Market Price: The price at which the participation units of the ETF trades on the Bolsa de Valores de Colombia (BVC) at any particular time during the trading day.

The S&P MILA ANDEAN 40 Index is designed to track the performance of the 40 largest and most liquid stocks trading on the Mercado Integrado Latino Americano (MILA) platform, an integrated trading venture formed by the Colombia, Perú and Chile stock exchanges. The S&P MILA ANDEAN 40 Index is intended to provide a primary benchmark for the rapidly growing Andean equity market. 

Eligibility
To be eligible for inclusion in the S&P MILA ANDEAN 40 Index, stocks must:

-Be members of the S&P Global BMI (Broad Market Index).
-Have a float-adjusted market capitalization above US$ 100 million.
-Demonstrate a three-month average daily value traded (ADVT) in their local markets above US$ 250,000.

Other considerations in determining and calculating the index:

-If a company has multiple share classes, the share class with the higher liquidity is eligible.
-The index uses the local listing and/or the MILA listing for each constituent.
-To arrive at membership weightings, all calculations are made in U.S. dollars. The index is calculated in U.S. dollars with the Reuters/WM London closing fix being used to convert the local market prices to U.S. dollars. The index is also calculated in Chilean pesos, Colombian pesos and Peruvian new soles.

Rebalancing

The index is rebalanced twice a year in March and September after the close of the last trading day of the month. At rebalancing, no single stock is allowed more than an 8% weight in the index and no country can represent more than 50% of the index. No country can have less than 5 constituents. No companies are added between rebalancings, but companies may be deleted due to acquisitions, mergers, takeovers, bankruptcies or delistings. 

To reduce turnover, the index allows companies to stay in the index if their market capitalization falls below the top 40 but remains above the top 60. 

For more information on the S&P MILA ANDEAN 40 Index, please click on the following links:
S&P MILA 40 [English]
S&P MILA 40 – Factsheet [English]
El índice S&P MILA 40 – Factsheet [Spanish]
S&P MILA 40 Methodology [English]
Metodología del índice S&P MILA 40 [Spanish]
"ETF" stands for exchange traded fund. Like mutual funds, ETFs invest in an underlying basket of assets, such as stocks, bonds, currencies, options or commodities. Unlike mutual funds, however, the participation units of ETFs trade like ordinary shares, meaning that pricing is transparent and that ETFs can be bought and sold throughout the regular trading day on the stock exchange. ETFs generally aim to track, as closely as possible, the performance of a given index or asset class, before fees and expenses. They are transparent, liquid, cost-efficient and flexible investment tools – designed to be attractive to both individuals and institutional investors. In Colombia this type of instrument is known as a stock fund pursuant to Decree 2555 of the Republic of Colombia. 

Investors can use ETFs to:

-Gain low-cost, diversified exposure to markets and sectors
-Assist with long-term strategic or short-term tactical asset allocation
-Implement positive or negative views on markets or sectors
Low costs. ETFs generally tend to have lower management fees and expenses than other diversified investment products. 

Flexibility. ETFs can be bought or sold on the stock market anytime throughout the regular trading day (subject to the requirements and restrictions of an investor's brokerage and those of the exchange). 

Liquidity. ETFs have three sources of liquidity. The first is the stock exchange on which the ETF trades. The second is the ETF's designated Market Maker whose function is to provide a minimum amount of liquidity, irrespective of daily trading volume, by selling participation units from its own inventory or buying participation units from the market to meet excess demand or absorb excess supply. The third is the ETF's provider, who is able to issue or redeem very large Creation Units daily to or from Authorized Participants (typically large broker-dealer firms). 

Diversification. Being comprised of a basket of securities, an ETF offers instant diversification—typically more than individual investors can achieve on their own.* 

* Note: Some ETFs may hold a high concentration in an individual security if that security is heavily weighted in the underlying index. Diversification does not guarantee profit or protection from loss, especially in a broadly declining market. 

Access. ETFs holding securities listed on foreign exchanges can provide investors with convenient access to foreign markets without having to establish foreign investment accounts. 

Transparency. An ETF that tracks a published index holds the same securities as that index or a representative sampling of it. Unlike certain other diversified investment funds that disclose their holdings only quarterly, ETFs publish their holdings daily. ETF investors can always see what assets they own. This allows investors to accurately gauge their current exposure to the markets and the asset classes in which they are invested.
Passive index investing is a strategy whereby an investor buys a diversified market or sector index fund instead of picking individual stocks. 

The approach has many potential benefits, including: 

Lower transaction costs. The investor is able to gain instant exposure to an entire index or sector through one transaction rather than the multiple transactions required to buy many stocks individually. 

Lower management fees. Index ETFs generally have much lower management fees than actively managed diversified investment funds. 

Avoidance of market timing. Investors can avoid the difficulties and risks associated with trying to time the purchase of individual stocks, as well as the extensive costs associated with analyzing company-specific factors. A large body of empirical evidence suggests that many active portfolio managers tend not able to significantly outperform their benchmark indices, over the long term, after fees and expenses. This observation seems to be supported by certain forms of the efficient-market theory. 

Market returns. A passive ETF that tracks a particular index or sector generally achieves performance, before fees and expenses, in line with the performance of its underlying index or sector.
 
ETFs may make distributions of net investment income and/or capital gains, if any, on a monthly, quarterly, semi-annual or annual basis. Until a potential distribution date, any net investment income that the ETF receives from its underlying assets is reflected in the ETF's net asset value (NAV). 

Fondo Bursátil Horizons MILA 40 de S&P is expected to pay distributions, if any, on a quarterly basis. 

Information on distribution amounts, frequencies and dates (shareholders of record/payout dates) is available on this website (click here).
ETFs charge a management fee that is deducted from the assets of the ETF. This fee is specified in the constating documents approved by the Financial Superintendency of Colombia. It is expressed as an annualized percentage of assets. The ETF's daily net asset value (NAV) indicates the value of the ETF after ("net of") the deduction of management fees. For example, an investor who owns $100,000 of an ETF with a management fee of 0.60% (or "60 basis points") would pay $600 in management fees over the course of a year (assuming no change in the market value of the ETF). 

Since investors buy and sell ETF participation units through a brokerage account or an investment adviser like ordinary stocks, brokerage commissions and/or transaction costs or service fees may apply. Please consult your broker or financial advisor for their fee schedule.
No. Horizons ETFs Management (LATAM) LLC oversees the development of Horizons-branded investment products in Latin America. Horizons Investment Management Inc. ("HIMI") acts as Portfolio Manager to Fondo Bursátil Horizons MILA 40 de S&P. 

Investors can acquire participation units of Fondo Bursátil Horizons MILA 40 de S&P in the primary market through Authorized Participants with whom the Management Company has existing contracts from time to time, or in the secondary market through any registered stock brokerage trading on the Bolsa de Valores de Colombia (BVC).
Purchases or sales of participation units of Fondo Bursátil Horizons MILA 40 de S&P traded in the secondary market through the Bolsa de Valores de Colombia (BVC) settle in cash in three business days (T + 3). 

Participation units may be purchased or sold at any time throughout the regular trading day. There is no minimum holding period and no minimum investment. 

Only Authorized Participants may create or redeem very large blocks of participation units known as "Creation Units" directly with the Management Company, Cititrust Colombia S.A. Sociedad Fiduciaria.
ETFs generally have three sources of liquidity: 

1. The stock exchange on which they are listed; 

2. Market Makers (designated broker-dealer firms) provide a minimum amount of liquidity by buying shares from the secondary market or selling shares to the market from their own inventory if there are too few buyers or sellers, or if bid/ask spreads get too far out of line with the NAV per share of the ETF's underlying assets; and 

3. Authorized Participants (typically broker-dealer firms) are able to issue or redeem very large blocks of shares known as "Creation Units" on each official valuation day to meet excess demand, or to absorb excess supply in the market. 

 
An ETF's market price is not necessarily the same as its net asset value (NAV) per share. All ETFs have two end-of-day "values". One is a closing market price, which is determined by trading activity in the ETF's shares on the stock exchange (usually the price at which the shares last traded during a trading session). 

The second is the net asset value (NAV) per share, which is calculated by the ETF's independent fund accountant after the market closes. The ETF's NAV is the weighted average price of each of its underlying assets, plus income and cash, minus liabilities such as management fees and expenses. 

An ETF's market price and NAV per share are typically close to each other but they may differ, especially in times of heightened market volatility. 

A premium or discount to NAV per share occurs when the market price of an ETF trades on the exchange above or below the NAV per share of its underlying basket of securities. For example, an ETF may trade at a premium or discount when: 

- its underlying assets trade at different hours than the stock exchange (e.g., commodities)
- its underlying assets trade infrequently (e.g., bonds)
- markets are in a heightened state of instability or flux (e.g., at the open and close of a trading day)
Tracking error is the difference over time between the performance of an ETF and the performance of the benchmark it follows (or "tracks"), such as an index. Most index ETFs track their benchmarks closely, but tracking error can occur as a result of fees and/or because some benchmarks are difficult to replicate perfectly. For example, an ETF with a management fee of 0.65% can be expected to have a tracking error of approximately 0.65% over the course of a year.
No. Fondo Bursátil Horizons MILA 40 de S&P does not hedge the Chilean Peso or Peruvian Neuvo Sol to the Colombian Peso.

 
A Market Maker is a stock brokerage company whose function is to provide liquidity and to attempt to maintain a tight bid/ask spread so that the market price of the ETF participation units closely approximates (tracks) its NAV per participation unit. It provides liquidity by buying or selling participation units from its own inventory when there are few buyers or sellers in the market. This allows investors to get their orders filled when they choose to execute a trade, regardless of trading volume. 

 
Investors do not request the creation and redemption of ETF participation units directly involving the Management Company in the same way they would with traditional mutual funds. ETFs are designed to minimize portfolio turnover costs by trading in the secondary market through a stock exchange. ETFs restrict the direct creation and redemption of very large blocks of participation units (known as "Creation Units") to certain brokerage firms (referred to as "Authorized Participants") selected by the Fund Manager. 

These institutions can create and redeem participation units daily to meet market demand and to absorb excess supply, which helps the ETF to trade with maximum liquidity. 

Authorized Participants – Subscribing for Creation Units Direct from the Manager 

Only brokerage firms selected by the Portfolio Manager who have entered into an Authorized Participant agreement with the Management Company may apply to the latter to create or redeem Creation Units*. 

* While individual participation units can be bought or sold in the secondary market through the stock exchange, they are not individually acquired from, or redeemed by the Management Company directly; however, Authorized Participants may create (or redeem) very large blocks of participation units known as "Creation Units" directly from the Fund. The Fund issues and redeems participation units on a continuous basis, at NAV, only in blocks of at least 10,000 participation units ("Creation Units"), principally in exchange for a payment in-kind which usually consists of the securities included in the relevant Index.
Investors outside of Colombia may be able to purchase participation units of ETFs trading on the Bolsa de Valores de Colombia (BVC) provided they have access to the exchange through a registered brokerage firm in compliance with the requirements set out by the Bank of the Republic of Colombia for this type of investment in the jurisdiction of Colombia. 

Foreign shareholders (i.e., non-resident alien individuals and foreign corporations, partnerships, trusts and estates) may be subject to Colombian withholding taxes, unless a lower treaty rate or certain exemptions apply. For more information, please read an ETF's constating documents and consult your tax or financial advisor.
As with all funds, exchange traded funds (ETFs) generally are subject to the risks involved with investing, including (among others) the risk of possible loss of principal resulting from fluctuations in the prices of the assets making up an ETF. Diversification cannot protect against market risk. Securities concentrated in a single country or a single region or sector may be subject to greater volatility. Other kinds of risks are also associated with ETF investments and are described in the constating documents. Please read the constating documents carefully before investing.
Investors can download the Regulations and Fund Prospectus electronically in PDF format from the website of Cititrust Colombia S.A. Sociedad Fiduciaria. To download copies of the constating documents from this website, go to the ETF Products page and select an ETF. The documents icon is located at the top right-hand side of the page. 

All Authorized Participants who purchase Creation Units receive copies of the constating documents. Some brokerages may deliver copies of the constating documents to secondary market purchasers. 

Before purchasing ETF participation units, an investor should carefully read the constating documents.
 
To learn more, please contact your broker/financial advisor or Horizons ETFs Management (LATAM) LLC directly at + 571 319 2706 or e-mail to: info@horizonsetfs.com 

Write: Horizons ETFs Management (LATAM) LLC
Carrera 7 # 71 -21 Torre B Oficina 1301
Bogotá, Colombia
Fondo Bursátil Horizons Colombia Select de S&P (“Horizons Colombia Select”) seeks investment results that, before fees and expenses, are comparable to the S&P Colombia Select Index (the “Index”), which is designed to track the performance of the largest and most liquid stocks listed on the Bolsa de Valores de Colombia (“BVC”).
Fiduciaria Bogotá S.A (Fidubogotá) is one of Colombia’s largest mutual fund providers. It acts as the management company of the Horizons Colombia Select De S&P. More information can be found on the Fiduciaria Bogotá website. http://www.fidubogota.com.
Horizons ETFs Management (Canada) Inc., an affiliate of Horizons LatAm, acts as the portfolio manager of the Fondo Bursátil Horizons Colombia Select de S&P.
Created and calculated by Standard & Poor’s, one of the world’s most recognized index providers, the S&P Colombia Select Index is designed to be a sector diversified benchmark index of the Colombia equity market. 

Key Features


-No single stock will have more than a 15 per cent weight in the Index, thereby reducing single stock risk
-Sector weights are capped at 40 per cent to reduce sector concentration and allow for greater sector diversification
-Robust liquidity screens reduce ETF replication constraints (i.e. can efficiently accommodate large-dollar orders)
-As the Colombian stock market grows, so can the number of holdings in the index to reflect this changing landscape
-Independent S&P committee oversees the management and policies of the Index
-Price, net and total-return versions of the Index available in both USD and COP
-Constituents restricted to Colombian domiciled companies listed on the BVC
-The Index uses an industry classification scheme which allows investors to compare global securities
S&P Dow Jones Indices is the world's largest provider of financial market indices. Formed in 2012 by combining the Company’s S&P Indices business and the Dow Jones Indexes business from the CME Group, S&P Dow Jones Indices calculates over 830,000 indices, publishes benchmarks that provide the basis for over 620 index-linked ETFs with global assets of $492.6 billion, and serves as the DNA for $1.5 trillion of the world's indexed assets. 

More assets are invested in products based upon indices calculated and published by S&P Dow Jones Indices than any other provider in the world.

Horizons ETFs Management (LATAM) LLC is an investment advisory firm that oversees the development of the Horizons-branded investment products in Latin America. Its affiliate Horizons Investment Management Inc. ("HIMI") acts as Portfolio Manager to Fondo Bursátil Horizons MILA 40 de S&P, an exchange traded fund domiciled in Colombia and established according to the provisions set out in Decree 2555 of 2010 Republic of Colombia, administered by Cititrust Colombia S.A. Sociedad Fiduciaria. Participation units of Fondo Bursátil Horizons MILA 40 de S&P are listed on the Bolsa de Valores de Colombia (BVC) under the ticker symbol HMILA40. Cititrust Colombia S.A. Sociedad Fiduciaria is an entity supervised by the Colombian Superintendence of Finance. 

The Horizons ETFs Group (www.HorizonsETFs.com)
Horizons ETFs Management (LATAM) LLC and Horizons Investment Management Inc. are members of the Horizons ETFs Group. The Horizons ETFs Group consists of innovative financial services companies offering regional families of ETFs in Canada, Korea, Hong Kong, Australia, the United States and Colombia. Currently, all of the ETFs offered by these companies use the Horizons ETFs brand with the exception of the 'BetaShares' family of ETFs in Australia and the 'Mirae Asset Tiger ETFs' family in Korea. With approximately $7 billion in assets under management and 180 ETF listings worldwide, the Horizons ETFs Group makes up one of the largest collective families of ETFs in the world. All of the Horizons ETFs Group companies and affiliates are subsidiaries of Mirae Asset Global Investments Co., Ltd. 

Mirae Asset Global Investments (www.MiraeAsset.com)
Mirae Asset Global Investments is one of the world's largest investment managers in emerging market equities (Investments & Pensions Europe, January 2013). With approximately 550 employees, including 137 dedicated investment professionals, Mirae Asset offers a breadth of emerging markets expertise. Mirae Asset's offices are located in Australia, Brazil, Canada, China, Colombia, Hong Kong, India, Korea, Taiwan, the U.K., the United States and Vietnam. Headquartered in Seoul, South Korea, the firm manages $58 billion in assets globally through a diversified platform to offer market-leading franchises in traditional equity and fixed income products, ETFs and alternative strategies, such as real estate, private equity and hedge funds.
 

The Mercado Integrado Latino Americano (MILA) exchange was formed in 2011 by the integration of trading platforms from the Colombia Stock Exchange, Lima Stock Exchange and Santiago Stock Exchange. MILA is Latin America's second largest stock exchange after Brazil's BM&FBOVESPA by market value, and the largest by number of listings.

The S&P MILA ANDEAN 40 Index is designed to track the performance of the 40 largest and most liquid stocks trading on the Mercado Integrado Latino Americano (MILA) platform, an integrated trading venture formed by the Colombia, Perú and Chile stock exchanges. The S&P MILA ANDEAN 40 Index is intended to provide a primary benchmark for the rapidly growing Andean equity market. 

Eligibility
To be eligible for inclusion in the S&P MILA ANDEAN 40 Index, stocks must:

-Be members of the S&P Global BMI (Broad Market Index).
-Have a float-adjusted market capitalization above US$ 100 million.
-Demonstrate a three-month average daily value traded (ADVT) in their local markets above US$ 250,000.

Other considerations in determining and calculating the index:

-If a company has multiple share classes, the share class with the higher liquidity is eligible.
-The index uses the local listing and/or the MILA listing for each constituent.
-To arrive at membership weightings, all calculations are made in U.S. dollars. The index is calculated in U.S. dollars with the Reuters/WM London closing fix being used to convert the local market prices to U.S. dollars. The index is also calculated in Chilean pesos, Colombian pesos and Peruvian new soles.

Rebalancing

The index is rebalanced twice a year in March and September after the close of the last trading day of the month. At rebalancing, no single stock is allowed more than an 8% weight in the index and no country can represent more than 50% of the index. No country can have less than 5 constituents. No companies are added between rebalancings, but companies may be deleted due to acquisitions, mergers, takeovers, bankruptcies or delistings. 

To reduce turnover, the index allows companies to stay in the index if their market capitalization falls below the top 40 but remains above the top 60. 

For more information on the S&P MILA ANDEAN 40 Index, please click on the following links:
S&P MILA 40 [English]
S&P MILA 40 – Factsheet [English]
El índice S&P MILA 40 – Factsheet [Spanish]
S&P MILA 40 Methodology [English]
Metodología del índice S&P MILA 40 [Spanish]
"ETF" stands for exchange traded fund. Like mutual funds, ETFs invest in an underlying basket of assets, such as stocks, bonds, currencies, options or commodities. Unlike mutual funds, however, the participation units of ETFs trade like ordinary shares, meaning that pricing is transparent and that ETFs can be bought and sold throughout the regular trading day on the stock exchange. ETFs generally aim to track, as closely as possible, the performance of a given index or asset class, before fees and expenses. They are transparent, liquid, cost-efficient and flexible investment tools – designed to be attractive to both individuals and institutional investors. In Colombia this type of instrument is known as a stock fund pursuant to Decree 2555 of the Republic of Colombia. 

Investors can use ETFs to:

-Gain low-cost, diversified exposure to markets and sectors
-Assist with long-term strategic or short-term tactical asset allocation
-Implement positive or negative views on markets or sectors
Low costs. ETFs generally tend to have lower management fees and expenses than other diversified investment products. 

Flexibility. ETFs can be bought or sold on the stock market anytime throughout the regular trading day (subject to the requirements and restrictions of an investor's brokerage and those of the exchange). 

Liquidity. ETFs have three sources of liquidity. The first is the stock exchange on which the ETF trades. The second is the ETF's designated Market Maker whose function is to provide a minimum amount of liquidity, irrespective of daily trading volume, by selling participation units from its own inventory or buying participation units from the market to meet excess demand or absorb excess supply. The third is the ETF's provider, who is able to issue or redeem very large Creation Units daily to or from Authorized Participants (typically large broker-dealer firms). 

Diversification. Being comprised of a basket of securities, an ETF offers instant diversification—typically more than individual investors can achieve on their own.* 

* Note: Some ETFs may hold a high concentration in an individual security if that security is heavily weighted in the underlying index. Diversification does not guarantee profit or protection from loss, especially in a broadly declining market. 

Access. ETFs holding securities listed on foreign exchanges can provide investors with convenient access to foreign markets without having to establish foreign investment accounts. 

Transparency. An ETF that tracks a published index holds the same securities as that index or a representative sampling of it. Unlike certain other diversified investment funds that disclose their holdings only quarterly, ETFs publish their holdings daily. ETF investors can always see what assets they own. This allows investors to accurately gauge their current exposure to the markets and the asset classes in which they are invested.
Passive index investing is a strategy whereby an investor buys a diversified market or sector index fund instead of picking individual stocks. 

The approach has many potential benefits, including: 

Lower transaction costs. The investor is able to gain instant exposure to an entire index or sector through one transaction rather than the multiple transactions required to buy many stocks individually. 

Lower management fees. Index ETFs generally have much lower management fees than actively managed diversified investment funds. 

Avoidance of market timing. Investors can avoid the difficulties and risks associated with trying to time the purchase of individual stocks, as well as the extensive costs associated with analyzing company-specific factors. A large body of empirical evidence suggests that many active portfolio managers tend not able to significantly outperform their benchmark indices, over the long term, after fees and expenses. This observation seems to be supported by certain forms of the efficient-market theory. 

Market returns. A passive ETF that tracks a particular index or sector generally achieves performance, before fees and expenses, in line with the performance of its underlying index or sector.
 
ETFs may make distributions of net investment income and/or capital gains, if any, on a monthly, quarterly, semi-annual or annual basis. Until a potential distribution date, any net investment income that the ETF receives from its underlying assets is reflected in the ETF's net asset value (NAV). 

Fondo Bursátil Horizons MILA 40 de S&P is expected to pay distributions, if any, on a quarterly basis. 

Information on distribution amounts, frequencies and dates (shareholders of record/payout dates) is available on this website (click here).
ETFs charge a management fee that is deducted from the assets of the ETF. This fee is specified in the constating documents approved by the Financial Superintendency of Colombia. It is expressed as an annualized percentage of assets. The ETF's daily net asset value (NAV) indicates the value of the ETF after ("net of") the deduction of management fees. For example, an investor who owns $100,000 of an ETF with a management fee of 0.60% (or "60 basis points") would pay $600 in management fees over the course of a year (assuming no change in the market value of the ETF). 

Since investors buy and sell ETF participation units through a brokerage account or an investment adviser like ordinary stocks, brokerage commissions and/or transaction costs or service fees may apply. Please consult your broker or financial advisor for their fee schedule.
No. Horizons ETFs Management (LATAM) LLC oversees the development of Horizons-branded investment products in Latin America. Horizons Investment Management Inc. ("HIMI") acts as Portfolio Manager to Fondo Bursátil Horizons MILA 40 de S&P. 

Investors can acquire participation units of Fondo Bursátil Horizons MILA 40 de S&P in the primary market through Authorized Participants with whom the Management Company has existing contracts from time to time, or in the secondary market through any registered stock brokerage trading on the Bolsa de Valores de Colombia (BVC).
Purchases or sales of participation units of Fondo Bursátil Horizons MILA 40 de S&P traded in the secondary market through the Bolsa de Valores de Colombia (BVC) settle in cash in three business days (T + 3). 

Participation units may be purchased or sold at any time throughout the regular trading day. There is no minimum holding period and no minimum investment. 

Only Authorized Participants may create or redeem very large blocks of participation units known as "Creation Units" directly with the Management Company, Cititrust Colombia S.A. Sociedad Fiduciaria.
Daily closing values: Horizons ETFs publishes an ETF's previous day's closing market price and closing net asset value (NAV) per participation unit on its website. Go to the Prices and Performance page (click here) for a detailed list. 

Intraday values: An ETF's indicative intraday value, known as its Indicative Optimized Portfolio Value (IOPV), represents an estimate of an ETF's current fair (or theoretical) value. By comparing the IOPV with current bid/ask prices, investors and the general public can see whether an ETF is being priced fairly in the market and determine a price at or around which they might want to place a limit order. Indicative intraday values are calculated at 15-second intervals throughout the trading day. Consult your quotation service provider (e.g., Bloomberg or Thomson Reuters) for more information on how to look up an IOPV on your trading platform. 

Secondary Market Price: The price at which the participation units of the ETF trades on the Bolsa de Valores de Colombia (BVC) at any particular time during the trading day.
Investors outside of Colombia may be able to purchase participation units of ETFs trading on the Bolsa de Valores de Colombia (BVC) provided they have access to the exchange through a registered brokerage firm in compliance with the requirements set out by the Bank of the Republic of Colombia for this type of investment in the jurisdiction of Colombia. 

Foreign shareholders (i.e., non-resident alien individuals and foreign corporations, partnerships, trusts and estates) may be subject to Colombian withholding taxes, unless a lower treaty rate or certain exemptions apply. For more information, please read an ETF's constating documents and consult your tax or financial advisor.
As with all funds, exchange traded funds (ETFs) generally are subject to the risks involved with investing, including (among others) the risk of possible loss of principal resulting from fluctuations in the prices of the assets making up an ETF. Diversification cannot protect against market risk. Securities concentrated in a single country or a single region or sector may be subject to greater volatility. Other kinds of risks are also associated with ETF investments and are described in the constating documents. Please read the constating documents carefully before investing.
Investors can download the Regulations and Fund Prospectus electronically in PDF format from the website of Cititrust Colombia S.A. Sociedad Fiduciaria. To download copies of the constating documents from this website, go to the ETF Products page and select an ETF. The documents icon is located at the top right-hand side of the page. 

All Authorized Participants who purchase Creation Units receive copies of the constating documents. Some brokerages may deliver copies of the constating documents to secondary market purchasers. 

Before purchasing ETF participation units, an investor should carefully read the constating documents.
 
To learn more, please contact your broker/financial advisor or Horizons ETFs Management (LATAM) LLC directly at + 571 319 2706 or e-mail to: info@horizonsetfs.com 

Write: Horizons ETFs Management (LATAM) LLC
Carrera 7 # 71 -21 Torre B Oficina 1301
Bogotá, Colombia
Fondo Bursátil Horizons Colombia Select de S&P (“Horizons Colombia Select”) seeks investment results that, before fees and expenses, are comparable to the S&P Colombia Select Index (the “Index”), which is designed to track the performance of the largest and most liquid stocks listed on the Bolsa de Valores de Colombia (“BVC”).
Fiduciaria Bogotá S.A (Fidubogotá) is one of Colombia’s largest mutual fund providers. It acts as the management company of the Horizons Colombia Select De S&P. More information can be found on the Fiduciaria Bogotá website. http://www.fidubogota.com.
Horizons ETFs Management (Canada) Inc., an affiliate of Horizons LatAm, acts as the portfolio manager of the Fondo Bursátil Horizons Colombia Select de S&P.
Created and calculated by Standard & Poor’s, one of the world’s most recognized index providers, the S&P Colombia Select Index is designed to be a sector diversified benchmark index of the Colombia equity market. 

Key Features


-No single stock will have more than a 15 per cent weight in the Index, thereby reducing single stock risk
-Sector weights are capped at 40 per cent to reduce sector concentration and allow for greater sector diversification
-Robust liquidity screens reduce ETF replication constraints (i.e. can efficiently accommodate large-dollar orders)
-As the Colombian stock market grows, so can the number of holdings in the index to reflect this changing landscape
-Independent S&P committee oversees the management and policies of the Index
-Price, net and total-return versions of the Index available in both USD and COP
-Constituents restricted to Colombian domiciled companies listed on the BVC
-The Index uses an industry classification scheme which allows investors to compare global securities
S&P Dow Jones Indices is the world's largest provider of financial market indices. Formed in 2012 by combining the Company’s S&P Indices business and the Dow Jones Indexes business from the CME Group, S&P Dow Jones Indices calculates over 830,000 indices, publishes benchmarks that provide the basis for over 620 index-linked ETFs with global assets of $492.6 billion, and serves as the DNA for $1.5 trillion of the world's indexed assets. 

More assets are invested in products based upon indices calculated and published by S&P Dow Jones Indices than any other provider in the world.
ETFs generally have three sources of liquidity: 

1. The stock exchange on which they are listed; 

2. Market Makers (designated broker-dealer firms) provide a minimum amount of liquidity by buying shares from the secondary market or selling shares to the market from their own inventory if there are too few buyers or sellers, or if bid/ask spreads get too far out of line with the NAV per share of the ETF's underlying assets; and 

3. Authorized Participants (typically broker-dealer firms) are able to issue or redeem very large blocks of shares known as "Creation Units" on each official valuation day to meet excess demand, or to absorb excess supply in the market. 

 
An ETF's market price is not necessarily the same as its net asset value (NAV) per share. All ETFs have two end-of-day "values". One is a closing market price, which is determined by trading activity in the ETF's shares on the stock exchange (usually the price at which the shares last traded during a trading session). 

The second is the net asset value (NAV) per share, which is calculated by the ETF's independent fund accountant after the market closes. The ETF's NAV is the weighted average price of each of its underlying assets, plus income and cash, minus liabilities such as management fees and expenses. 

An ETF's market price and NAV per share are typically close to each other but they may differ, especially in times of heightened market volatility. 

A premium or discount to NAV per share occurs when the market price of an ETF trades on the exchange above or below the NAV per share of its underlying basket of securities. For example, an ETF may trade at a premium or discount when: 

- its underlying assets trade at different hours than the stock exchange (e.g., commodities)
- its underlying assets trade infrequently (e.g., bonds)
- markets are in a heightened state of instability or flux (e.g., at the open and close of a trading day)
Tracking error is the difference over time between the performance of an ETF and the performance of the benchmark it follows (or "tracks"), such as an index. Most index ETFs track their benchmarks closely, but tracking error can occur as a result of fees and/or because some benchmarks are difficult to replicate perfectly. For example, an ETF with a management fee of 0.65% can be expected to have a tracking error of approximately 0.65% over the course of a year.
No. Fondo Bursátil Horizons MILA 40 de S&P does not hedge the Chilean Peso or Peruvian Neuvo Sol to the Colombian Peso.

 
A Market Maker is a stock brokerage company whose function is to provide liquidity and to attempt to maintain a tight bid/ask spread so that the market price of the ETF participation units closely approximates (tracks) its NAV per participation unit. It provides liquidity by buying or selling participation units from its own inventory when there are few buyers or sellers in the market. This allows investors to get their orders filled when they choose to execute a trade, regardless of trading volume. 

 
Investors do not request the creation and redemption of ETF participation units directly involving the Management Company in the same way they would with traditional mutual funds. ETFs are designed to minimize portfolio turnover costs by trading in the secondary market through a stock exchange. ETFs restrict the direct creation and redemption of very large blocks of participation units (known as "Creation Units") to certain brokerage firms (referred to as "Authorized Participants") selected by the Fund Manager. 

These institutions can create and redeem participation units daily to meet market demand and to absorb excess supply, which helps the ETF to trade with maximum liquidity. 

Authorized Participants – Subscribing for Creation Units Direct from the Manager 

Only brokerage firms selected by the Portfolio Manager who have entered into an Authorized Participant agreement with the Management Company may apply to the latter to create or redeem Creation Units*. 

* While individual participation units can be bought or sold in the secondary market through the stock exchange, they are not individually acquired from, or redeemed by the Management Company directly; however, Authorized Participants may create (or redeem) very large blocks of participation units known as "Creation Units" directly from the Fund. The Fund issues and redeems participation units on a continuous basis, at NAV, only in blocks of at least 10,000 participation units ("Creation Units"), principally in exchange for a payment in-kind which usually consists of the securities included in the relevant Index.