The Horizons ETF Group:

The Horizons ETFs Group consists of innovative financial services companies offering regional families of ETFs in Canada, Korea, Hong Kong, Australia, and the United States. 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. 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.
 
As of December 31, 2016, Horizons ETF Group total global AUM stood at US$ 12.5 billion.
 
Mirae Asset Global Investments:

Mirae Asset Global Investments is a global investment management firm originating from Asia with offices, clients and business lines across the world's major markets (Australia, Brazil, Canada, China, Colombia, Hong Kong, India, Korea, Taiwan, the U.K., the United States and Vietnam). We provide asset management services through a diversified platform that offers market-leading franchises in traditional equity and fixed income products, ETFs and alternative strategies such as real estate, private equity and hedge funds.

As of December 31, 2016, Mirae Asset Global Investments Co., Ltd total AUM stood at US$ 90.3 billion.

"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, ETFs trade on the stock exchange like ordinary shares. This means that pricing is transparent and ETF shares can be bought and sold throughout the regular trading day on the stock exchange. Index 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 used by both individuals and institutional investors.

General Inquiries

Individual Investors: Toll Free (855) 496-3837 opt:2
Financial Professionals: Toll Free (855) 496-3837 opt:1
Email: usmarketing@horizonsetfs.com

Or write to: Horizons ETFs Management (US) LLC
625 Madison Avenue, 3rd Floor
New York, NY
10022
ETFs can offer many benefits, including: 

Low costs. ETFs generally have lower management fees and expenses than other diversified investment products. Lower fees can potentially lead to higher returns over the long run. 

Investment flexibility. ETFs can be bought or sold on the stock market throughout the trading day, just like ordinary stocks. ETFs can usually be traded using the typical order types applicable to stocks, including market orders, limit orders and stop-loss orders. They may also be purchased on margin or sold short (subject to the requirements and restrictions of an investor's broker and those of the stock 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 who is obligated to provide a minimum amount of liquidity, irrespective of daily trading volume, by selling shares from its own inventory or buying share 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 Authorized Participants (typically large broker-dealer firms).* 

* While individual shares of an exchange traded fund can be bought or sold in the secondary market through the stock exchange, they are not individually acquired from, or redeemed by the Investment Company directly; however, Authorized Participants may create (or redeem) very large blocks of shares known as "Creation Units" directly from the Fund. The Fund issues and redeems shares on a continuous basis, at NAV, typically only in blocks of at least 50,000 shares ("Creation Units"), principally in-kind for securities included in the relevant Index. 

Diversification. Being comprised of a basket of securities, an ETF offers instant diversification—typically more than individual investors can achieve on their own. An index ETF, for example, may contain dozens or even hundreds of securities, allowing an investor to gain exposure to an entire index or sector through a single ETF.* 

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

Transparency. An ETF that tracks a published index generally holds substantially the same securities as that index, a representative sampling of it or a synthetic exposure to 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 indirectly own. This allows investors to accurately gauge their current exposure to the markets and the asset classes in which they are invested.
ETFs may make distributions of net investment income and/or short-term or long-term capital gains, if any, on a monthly, quarterly 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). 

For the Horizons-branded ETFs that trade in the United States, information on distribution amounts, frequencies and dates (shareholders of record/payout dates) is available on this website. 

Distribution Reinvestment Services
Some brokerages may offer a distribution reinvestment service to their customers who own ETF shares. If this service is available and used, distributions of both income and capital gains will automatically be reinvested in additional whole shares of that ETF purchased in the secondary market. Without this service, investors would receive their distributions in cash. In order to achieve greater correlation with the Underlying Index, investors are encouraged to use the distribution reinvestment service. To determine whether the distribution reinvestment service is available and whether there is a commission or other charge for using this service, consult your broker. Brokers may require an ETF's shareholders to adhere to specific procedures and timetables.
ETFs charge a management fee that is deducted from the assets of the ETF. This fee is disclosed in the prospectus and other constating documents. It is expressed as an annualized percentage of assets. The ETF's daily net asset value (NAV) per share indicates the value of the ETF's shares after ("net of") the deduction of management fees. For example, an investor who owns $10,000 of an ETF with a management fee of 0.65% (or "65 basis points") would pay $65 in management fees over the course of a year, assuming no change in the value of the ETF. 

Since investors buy and sell ETF shares 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.
Investors, together with their financial advisors, should consider the following factors in addition to reading the prospectus as they decide how best to incorporate ETFs into their investment portfolios: 

• Their overall financial situation and investment goals
• Their current income and capital return requirements
• How much they have available for investment
• How much risk they can tolerate
• An appropriate allocation between equity, fixed-income and alternative investments 
• Costs, including management fees, commissions and/or transaction costs and annual charges
• Their individual tax situation
Investors outside of the United States may be able to purchase shares of ETFs trading on the New York Stock Exchange provided they have access to the exchange through a registered broker. Foreign shareholders (i.e., non-resident alien individuals and foreign corporations, partnerships, trusts and estates) may be subject to U.S. estate tax and U.S. withholding tax, unless a lower treaty rate or certain exemptions apply. For more information, please read an ETF's prospectus 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, but not limited to, possible loss of principal. ETFs are non-diversified and may invest a greater portion of their assets in securities of a small number of issuers which may have an adverse effect on Fund performance. Concentration in a particular industry or sector will subject ETFs to loss due to adverse occurrences that may affect that industry or sector. The Funds risk not benefiting from potential increases in the value of underlying securities above the exercise prices of the written covered call options, and are subject to the risk of declines in the value of such securities. An investment in an ETF is not a bank deposit and is not insured or guaranteed by the FDIC or any government agency. ETF values change frequently, and past performance may not be repeated. A full list of principal risks affecting a shareholder's investment in an ETF is set forth in the prospectus. Please read the prospectus carefully before investing.
Daily closing values: Horizons ETFs publishes an ETF's previous day's closing market price and closing net asset value (NAV) per share on its website. 

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 by a third party. They are distributed by National Securities Clearing Corporation (NSCC) and published via the NYSE Euronext Global Index Feed (GIF) using the ETF's core ticker symbol followed by the suffix "IV". Consult your quotation service provider (e.g., Bloomberg or Thomson Reuters) for more information on how to look up an IOPV on your platform.
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.
In a share split, there is an increase in the number of shares outstanding, accompanied by a proportional decrease in the net asset value (NAV) per share. The value of an investor's holdings is not affected by the split. 

The decision to split shares of an ETF usually occurs when share values reach or exceed $100. The split makes it easier for an investor to afford and trade 100 share "board lots" and facilitate liquidity. 

Here is an example of how a split works: 

Pre-split holdings: 100 shares
NAV per share: $100
Total value of holdings: $10,000 (100 x $100) 

A 4:1 split occurs, resulting in shareholders of record receiving 4 shares for each share held on a specific date. 

Post-split holdings: 400 shares (100 x 4)
NAV per share $25 ($100 / 4)
Total value of holdings: $10,000 (400 x $25) 

Should a split occur, it will be announced in advance by a press release that details the split, the effective date and the shareholders of record date.
A reverse share split (consolidation) is the opposite of a share split. In a reverse share split, there is a reduction in the number of shares and an accompanying increase in the net asset value (NAV) per share. The value of an investor's holdings is unaffected by the reverse share split. 

The decision to reverse split shares of an ETF usually occurs when share values fall to or below $5. The reverse share split makes it easier for an investor to trade the number of shares required to establish the same dollar position, which lowers transaction costs for investors on a per share basis. Also, brokerage firms typically will not consider securities trading under $5 to be marginable. 

Here is an example of how a reverse share split works: 

Pre-reverse share split holdings: 1,000 shares
NAV per share: $5
Total value of holdings: $5,000 (1,000 x $5) 

A 1:5 reverse share spit occurs, resulting in shareholders of record receiving 1 share for every 10 shares held on a specific date. 

Post-reverse share split holdings: 200 shares (1,000 / 5)
NAV per share $25 ($5 x 5)
Total value of holdings: $5,000 (200 x $25) 

Should a reverse share split occur, it will be announced in advance by a press release that details the reverse share split, the trading date on which it comes into effect and the shareholders of record date.
Horizons ETFs and its distributor work closely with the reorganization departments at the major brokerages and custodians to provide complete and timely information required for these changes. However, in the normal course of business it may take 3-5 business days for holdings to be updated after a split or reverse share split. Please call your broker or custodian with any questions and to confirm that your accounts have been updated.
Most investors generally do not purchase and redeem ETF shares directly with the Adviser in the same way as they would traditional mutual funds. ETFs are designed to minimize portfolio turnover and related transaction costs. They do this by restricting the direct creation and redemption of shares (known as "Creation Units") to large investors, typically banks or broker-dealers (known as "Authorized Participants"). These institutions may create and redeem shares daily to meet market demand or to absorb excess supply, which helps ETFs to trade with maximum liquidity. 

Authorized Participants – Subscribing for Creation Units Direct from the Adviser 

Parties who have entered into a designated broker and/or underwriter agreement with Exchange Traded Concepts, LLC (the "Adviser"), subject to certain conditions outlined in the Prospectus, can subscribe for or redeem a prescribed number of Creation Units* in a Horizons-branded ETF listed on the New York Stock Exchange through Foreside Financial Group, LLC. 

* While individual shares of an exchange traded fund can be bought or sold in the secondary market through the stock exchange, they are not individually acquired from, or redeemed by the Investment Company directly; however, Authorized Participants may create (or redeem) very large blocks of shares known as "Creation Units" directly from the Fund. The Fund issues and redeems shares on a continuous basis, at NAV, typically only in blocks of at least 50,000 shares ("Creation Units"), principally in-kind for securities included in the relevant Index. 

The acquisition of Creation Units will be subject to a standard creation transaction fee in all cases and other non-standard charges may apply. The redemption of Creation Units will be subject to a standard redemption transaction fee in all cases and other non-standard charges may apply.
A Market Maker is a broker-dealer firm whose function is to provide liquidity and to attempt to maintain a tight bid/ask spread so that the market price of the ETF closely approximates (tracks) its intraday NAV. It provides liquidity by buying or selling shares from its own inventory when there are too 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. 

The Horizons ETF Group:

The Horizons ETFs Group consists of innovative financial services companies offering regional families of ETFs in Canada, Korea, Hong Kong, Australia, and the United States. 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. 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.
 
As of December 31, 2016, Horizons ETF Group total global AUM stood at US$ 12.5 billion.
 
Mirae Asset Global Investments:

Mirae Asset Global Investments is a global investment management firm originating from Asia with offices, clients and business lines across the world's major markets (Australia, Brazil, Canada, China, Colombia, Hong Kong, India, Korea, Taiwan, the U.K., the United States and Vietnam). We provide asset management services through a diversified platform that offers market-leading franchises in traditional equity and fixed income products, ETFs and alternative strategies such as real estate, private equity and hedge funds.

As of December 31, 2016, Mirae Asset Global Investments Co., Ltd total AUM stood at US$ 90.3 billion.

"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, ETFs trade on the stock exchange like ordinary shares. This means that pricing is transparent and ETF shares can be bought and sold throughout the regular trading day on the stock exchange. Index 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 used by both individuals and institutional investors.
ETFs can offer many benefits, including: 

Low costs. ETFs generally have lower management fees and expenses than other diversified investment products. Lower fees can potentially lead to higher returns over the long run. 

Investment flexibility. ETFs can be bought or sold on the stock market throughout the trading day, just like ordinary stocks. ETFs can usually be traded using the typical order types applicable to stocks, including market orders, limit orders and stop-loss orders. They may also be purchased on margin or sold short (subject to the requirements and restrictions of an investor's broker and those of the stock 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 who is obligated to provide a minimum amount of liquidity, irrespective of daily trading volume, by selling shares from its own inventory or buying share 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 Authorized Participants (typically large broker-dealer firms).* 

* While individual shares of an exchange traded fund can be bought or sold in the secondary market through the stock exchange, they are not individually acquired from, or redeemed by the Investment Company directly; however, Authorized Participants may create (or redeem) very large blocks of shares known as "Creation Units" directly from the Fund. The Fund issues and redeems shares on a continuous basis, at NAV, typically only in blocks of at least 50,000 shares ("Creation Units"), principally in-kind for securities included in the relevant Index. 

Diversification. Being comprised of a basket of securities, an ETF offers instant diversification—typically more than individual investors can achieve on their own. An index ETF, for example, may contain dozens or even hundreds of securities, allowing an investor to gain exposure to an entire index or sector through a single ETF.* 

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

Transparency. An ETF that tracks a published index generally holds substantially the same securities as that index, a representative sampling of it or a synthetic exposure to 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 indirectly own. This allows investors to accurately gauge their current exposure to the markets and the asset classes in which they are invested.
ETFs may make distributions of net investment income and/or short-term or long-term capital gains, if any, on a monthly, quarterly 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). 

For the Horizons-branded ETFs that trade in the United States, information on distribution amounts, frequencies and dates (shareholders of record/payout dates) is available on this website. 

Distribution Reinvestment Services
Some brokerages may offer a distribution reinvestment service to their customers who own ETF shares. If this service is available and used, distributions of both income and capital gains will automatically be reinvested in additional whole shares of that ETF purchased in the secondary market. Without this service, investors would receive their distributions in cash. In order to achieve greater correlation with the Underlying Index, investors are encouraged to use the distribution reinvestment service. To determine whether the distribution reinvestment service is available and whether there is a commission or other charge for using this service, consult your broker. Brokers may require an ETF's shareholders to adhere to specific procedures and timetables.
ETFs charge a management fee that is deducted from the assets of the ETF. This fee is disclosed in the prospectus and other constating documents. It is expressed as an annualized percentage of assets. The ETF's daily net asset value (NAV) per share indicates the value of the ETF's shares after ("net of") the deduction of management fees. For example, an investor who owns $10,000 of an ETF with a management fee of 0.65% (or "65 basis points") would pay $65 in management fees over the course of a year, assuming no change in the value of the ETF. 

Since investors buy and sell ETF shares 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.
Investors, together with their financial advisors, should consider the following factors in addition to reading the prospectus as they decide how best to incorporate ETFs into their investment portfolios: 

• Their overall financial situation and investment goals
• Their current income and capital return requirements
• How much they have available for investment
• How much risk they can tolerate
• An appropriate allocation between equity, fixed-income and alternative investments 
• Costs, including management fees, commissions and/or transaction costs and annual charges
• Their individual tax situation
Investors outside of the United States may be able to purchase shares of ETFs trading on the New York Stock Exchange provided they have access to the exchange through a registered broker. Foreign shareholders (i.e., non-resident alien individuals and foreign corporations, partnerships, trusts and estates) may be subject to U.S. estate tax and U.S. withholding tax, unless a lower treaty rate or certain exemptions apply. For more information, please read an ETF's prospectus 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, but not limited to, possible loss of principal. ETFs are non-diversified and may invest a greater portion of their assets in securities of a small number of issuers which may have an adverse effect on Fund performance. Concentration in a particular industry or sector will subject ETFs to loss due to adverse occurrences that may affect that industry or sector. The Funds risk not benefiting from potential increases in the value of underlying securities above the exercise prices of the written covered call options, and are subject to the risk of declines in the value of such securities. An investment in an ETF is not a bank deposit and is not insured or guaranteed by the FDIC or any government agency. ETF values change frequently, and past performance may not be repeated. A full list of principal risks affecting a shareholder's investment in an ETF is set forth in the prospectus. Please read the prospectus carefully before investing.
Daily closing values: Horizons ETFs publishes an ETF's previous day's closing market price and closing net asset value (NAV) per share on its website. 

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 by a third party. They are distributed by National Securities Clearing Corporation (NSCC) and published via the NYSE Euronext Global Index Feed (GIF) using the ETF's core ticker symbol followed by the suffix "IV". Consult your quotation service provider (e.g., Bloomberg or Thomson Reuters) for more information on how to look up an IOPV on your platform.

General Inquiries

Individual Investors: Toll Free (855) 496-3837 opt:2
Financial Professionals: Toll Free (855) 496-3837 opt:1
Email: usmarketing@horizonsetfs.com

Or write to: Horizons ETFs Management (US) LLC
625 Madison Avenue, 3rd Floor
New York, NY
10022
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)
A Market Maker is a broker-dealer firm whose function is to provide liquidity and to attempt to maintain a tight bid/ask spread so that the market price of the ETF closely approximates (tracks) its intraday NAV. It provides liquidity by buying or selling shares from its own inventory when there are too 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. 
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.
In a share split, there is an increase in the number of shares outstanding, accompanied by a proportional decrease in the net asset value (NAV) per share. The value of an investor's holdings is not affected by the split. 

The decision to split shares of an ETF usually occurs when share values reach or exceed $100. The split makes it easier for an investor to afford and trade 100 share "board lots" and facilitate liquidity. 

Here is an example of how a split works: 

Pre-split holdings: 100 shares
NAV per share: $100
Total value of holdings: $10,000 (100 x $100) 

A 4:1 split occurs, resulting in shareholders of record receiving 4 shares for each share held on a specific date. 

Post-split holdings: 400 shares (100 x 4)
NAV per share $25 ($100 / 4)
Total value of holdings: $10,000 (400 x $25) 

Should a split occur, it will be announced in advance by a press release that details the split, the effective date and the shareholders of record date.
A reverse share split (consolidation) is the opposite of a share split. In a reverse share split, there is a reduction in the number of shares and an accompanying increase in the net asset value (NAV) per share. The value of an investor's holdings is unaffected by the reverse share split. 

The decision to reverse split shares of an ETF usually occurs when share values fall to or below $5. The reverse share split makes it easier for an investor to trade the number of shares required to establish the same dollar position, which lowers transaction costs for investors on a per share basis. Also, brokerage firms typically will not consider securities trading under $5 to be marginable. 

Here is an example of how a reverse share split works: 

Pre-reverse share split holdings: 1,000 shares
NAV per share: $5
Total value of holdings: $5,000 (1,000 x $5) 

A 1:5 reverse share spit occurs, resulting in shareholders of record receiving 1 share for every 10 shares held on a specific date. 

Post-reverse share split holdings: 200 shares (1,000 / 5)
NAV per share $25 ($5 x 5)
Total value of holdings: $5,000 (200 x $25) 

Should a reverse share split occur, it will be announced in advance by a press release that details the reverse share split, the trading date on which it comes into effect and the shareholders of record date.
Horizons ETFs and its distributor work closely with the reorganization departments at the major brokerages and custodians to provide complete and timely information required for these changes. However, in the normal course of business it may take 3-5 business days for holdings to be updated after a split or reverse share split. Please call your broker or custodian with any questions and to confirm that your accounts have been updated.
Most investors generally do not purchase and redeem ETF shares directly with the Adviser in the same way as they would traditional mutual funds. ETFs are designed to minimize portfolio turnover and related transaction costs. They do this by restricting the direct creation and redemption of shares (known as "Creation Units") to large investors, typically banks or broker-dealers (known as "Authorized Participants"). These institutions may create and redeem shares daily to meet market demand or to absorb excess supply, which helps ETFs to trade with maximum liquidity. 

Authorized Participants – Subscribing for Creation Units Direct from the Adviser 

Parties who have entered into a designated broker and/or underwriter agreement with Exchange Traded Concepts, LLC (the "Adviser"), subject to certain conditions outlined in the Prospectus, can subscribe for or redeem a prescribed number of Creation Units* in a Horizons-branded ETF listed on the New York Stock Exchange through Foreside Financial Group, LLC. 

* While individual shares of an exchange traded fund can be bought or sold in the secondary market through the stock exchange, they are not individually acquired from, or redeemed by the Investment Company directly; however, Authorized Participants may create (or redeem) very large blocks of shares known as "Creation Units" directly from the Fund. The Fund issues and redeems shares on a continuous basis, at NAV, typically only in blocks of at least 50,000 shares ("Creation Units"), principally in-kind for securities included in the relevant Index. 

The acquisition of Creation Units will be subject to a standard creation transaction fee in all cases and other non-standard charges may apply. The redemption of Creation Units will be subject to a standard redemption transaction fee in all cases and other non-standard charges may apply.