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Trending ETFs

Name

As of 03/27/2024

Price

Aum/Mkt Cap

YIELD

Annualized forward dividend yield. Multiplies the most recent dividend payout amount by its frequency and divides by the previous close price.

Exp Ratio

Expense ratio is the fund’s total annual operating expenses, including management fees, distribution fees, and other expenses, expressed as a percentage of average net assets.

Watchlist

$70.04

$525 M

0.20%

$0.14

1.12%

Vitals

YTD Return

4.3%

1 yr return

16.2%

3 Yr Avg Return

6.6%

5 Yr Avg Return

7.1%

Net Assets

$525 M

Holdings in Top 10

31.5%

52 WEEK LOW AND HIGH

$69.8
N/A
N/A

Expenses

OPERATING FEES

Expense Ratio 1.12%

SALES FEES

Front Load N/A

Deferred Load N/A

TRADING FEES

Turnover 27.00%

Redemption Fee N/A


Min Investment

Standard (Taxable)

$2,500

IRA

N/A


Fund Classification

Fund Type

Open End Mutual Fund


Name

As of 03/27/2024

Price

Aum/Mkt Cap

YIELD

Annualized forward dividend yield. Multiplies the most recent dividend payout amount by its frequency and divides by the previous close price.

Exp Ratio

Expense ratio is the fund’s total annual operating expenses, including management fees, distribution fees, and other expenses, expressed as a percentage of average net assets.

Watchlist

$70.04

$525 M

0.20%

$0.14

1.12%

HNDRX - Profile

Distributions

  • YTD Total Return 4.3%
  • 3 Yr Annualized Total Return 6.6%
  • 5 Yr Annualized Total Return 7.1%
  • Capital Gain Distribution Frequency Annually
  • Net Income Ratio 0.35%
DIVIDENDS
  • Dividend Yield 0.2%
  • Dividend Distribution Frequency Annual

Fund Details

  • Legal Name
    Horizon Defined Risk Fund
  • Fund Family Name
    Horizon Funds
  • Inception Date
    Dec 28, 2017
  • Shares Outstanding
    4724342
  • Share Class
    Investor
  • Currency
    USD
  • Domiciled Country
    US
  • Manager
    Scott Ladner

Fund Description

The Defined Risk Fund’s investment adviser, Horizon Investments, LLC (“Horizon”), seeks to achieve the Defined Risk Fund’s investment objective by investing in a broadly diversified portfolio of equity securities (the “Equity Portfolio”), while seeking to generate income, hedge volatility and reduce the downside risk of the Equity Portfolio by buying and selling put and call options (the “Options Portfolio”). Horizon expects that the combination of the returns from the Equity Portfolio and the potential cash flow, reduced volatility and downside protection from the Options Portfolio will provide the Defined Risk Fund with the potential to capture a majority of the returns associated with the general equity markets with reduced risk and volatility.

Equity Portfolio

Securities in the Equity Portfolio may include common and preferred stock, exchange-traded funds (“ETFs”), convertible debt securities, American Depositary Receipts (“ADRs”), and securities issued by real estate investment trusts (“REITs”).

Horizon selects equity securities for the Defined Risk Fund’s Equity Portfolio by assessing each security’s projected return and expected risk using a multi-disciplined approach consisting of economic, quantitative and fundamental analysis. 

The Equity Portfolio typically focuses on investing in individual stocks. However, the Equity Portfolio may also invest in ETFs or baskets of securities, preferred stock, convertible debt securities, ADRs and REITs when Horizon believes such investments may offer higher return and/or lower risk than individual securities or when Horizon believes such investments will provide strategic exposure to a desired sector or market segment. Potential ETFs are reviewed for sufficient trading liquidity and fit within the overall diversification needs of the Equity Portfolio prior to investment. Horizon selects securities for the Equity Portfolio without restriction as to an issuer’s country or capitalization.

The Defined Risk Fund will typically sell equity securities to achieve a desired diversification, to secure gains or limit potential losses or when Horizon otherwise believes it is in the best interest of the Defined Risk Fund. Horizon expects to engage in frequent buying and selling of securities to achieve the Defined Risk Fund’s investment objective.

Options Portfolio

The Options Portfolio will generally consist of options “collars”, which are options combinations comprised of a written call option or call spread and a purchased put option or put spread on the same underlying security. To implement an options collar, the Defined Risk Fund will write a call option or call spread on the underlying security with a strike price above the price of the underlying security and purchase a corresponding put option or put spread on the same underlying security with a strike price below the price of that security.  A call or put “spread” is an option combination whereby the Defined Risk Fund buys an option for investment purposes and writes another option on the same underlying security with the same expiration date, but a different strike price (e.g., a higher strike price in the case of a call and a lower strike price in the case of a put), as a way to offset some of the cost of purchasing the first option.

When the Defined Risk Fund writes (sells) a call or put option, it receives a premium from the purchaser, which may be used to offset the price of purchasing other options. In addition to the cash flow generated by the selling options, the Defined Risk Fund will write call options to seek to reduce the volatility of the Equity Portfolio, especially in down or sideways markets.  Writing call options will, however, reduce the Defined Risk Fund’s ability to profit from increases in the value of the Equity Portfolio because the Defined Risk Fund will begin to accrue liabilities to the purchaser of the call option once the price of the underlying security rises above the option’s strike price. The Defined Risk Fund will buy corresponding put options in an attempt to protect the Defined Risk Fund from significant market declines in the Equity Portfolio that may occur over short periods of time.  The Defined Risk Fund will primarily use exchange-traded options on indexes, ETFs and other individual equity securities, but may also use over-the-counter options when Horizon deems it advisable to do so.

The Defined Risk Fund will typically increase its use of options collars when the Adviser’s research indicates that markets are likely to experience volatility, and there is no maximum or minimum amount of assets that the Defined Fund may use to invest in options collars.

Horizon uses quantitative techniques to screen the available option universe for options collars that Horizon believes offer the best risk/return characteristics for the Equity Portfolio, taking into account, among other things, the following characteristics:

liquidity of underlying instruments
basis risk/tracking error between portfolio & options positions
volatility forecasts
option relative valuation
time to maturity & strike prices

The Defined Risk Fund typically expects to allow the options in the Options Portfolio to expire, but may seek to close out options positions ahead of expiration when Horizon believes it is advantageous to do so.

There is no limit on the number or size of the options transactions in which the Fund may engage; however, the Fund will not use options for the purpose of increasing the Fund’s leverage with respect to any portfolio investment.

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HNDRX - Performance

Return Ranking - Trailing

Period HNDRX Return Category Return Low Category Return High Rank in Category (%)
YTD 4.3% -2.8% 240.8% 73.52%
1 Yr 16.2% -4.3% 140.6% 66.96%
3 Yr 6.6%* -8.3% 18.3% 62.82%
5 Yr 7.1%* -5.0% 17.3% N/A
10 Yr N/A* -4.6% 13.2% N/A

* Annualized

Return Ranking - Calendar

Period HNDRX Return Category Return Low Category Return High Rank in Category (%)
2023 14.7% -34.1% 904.0% 39.19%
2022 -10.4% -28.6% 438.4% 39.31%
2021 12.8% -93.5% 8.2% 15.17%
2020 6.6% -38.9% 19.8% N/A
2019 12.6% -10.9% 12.8% N/A

Total Return Ranking - Trailing

Period HNDRX Return Category Return Low Category Return High Rank in Category (%)
YTD 4.3% -2.7% 244.0% 74.31%
1 Yr 16.2% -4.3% 140.6% 64.78%
3 Yr 6.6%* -8.3% 18.3% 59.62%
5 Yr 7.1%* -5.4% 17.3% N/A
10 Yr N/A* -4.6% 13.2% N/A

* Annualized

Total Return Ranking - Calendar

Period HNDRX Return Category Return Low Category Return High Rank in Category (%)
2023 15.0% -34.1% 904.0% 39.19%
2022 -10.1% -5.9% 438.4% 39.88%
2021 13.1% -81.2% 8.2% 17.24%
2020 7.2% -29.0% 19.8% N/A
2019 13.2% -10.9% 12.8% N/A

NAV & Total Return History


HNDRX - Holdings

Concentration Analysis

HNDRX Category Low Category High HNDRX % Rank
Net Assets 525 M 25 17.4 B 28.84%
Number of Holdings 515 2 508 1.91%
Net Assets in Top 10 160 M -6.66 M 5.12 B 40.84%
Weighting of Top 10 31.46% 11.3% 100.0% 52.00%

Top 10 Holdings

  1. Microsoft Corp 7.32%
  2. Apple Inc 7.25%
  3. Amazon.com Inc 3.45%
  4. NVIDIA Corp 3.00%
  5. Alphabet Inc 2.04%
  6. Meta Platforms Inc 1.89%
  7. Alphabet Inc 1.76%
  8. Tesla Inc 1.72%
  9. Berkshire Hathaway Inc 1.71%
  10. UnitedHealth Group Inc 1.33%

Asset Allocation

Weighting Return Low Return High HNDRX % Rank
Stocks
99.25% -3.92% 100.76% 0.38%
Cash
1.45% -0.76% 100.29% 99.62%
Preferred Stocks
0.00% 0.00% 3.08% 9.92%
Convertible Bonds
0.00% 0.00% 20.91% 12.21%
Bonds
0.00% 0.00% 97.96% 19.08%
Other
-0.71% 0.00% 45.92% 25.57%

Stock Sector Breakdown

Weighting Return Low Return High HNDRX % Rank
Technology
25.61% 0.00% 44.43% 65.55%
Healthcare
13.66% 0.00% 25.91% 74.79%
Financial Services
13.18% 0.00% 29.60% 69.75%
Consumer Cyclical
11.77% 0.00% 19.02% 17.23%
Communication Services
9.43% 0.00% 21.22% 15.13%
Industrials
8.17% 1.41% 43.91% 69.75%
Consumer Defense
6.56% 0.00% 22.87% 22.69%
Energy
3.88% 0.00% 69.54% 86.13%
Utilities
2.73% 0.00% 13.35% 75.63%
Real Estate
2.70% 0.00% 9.74% 78.99%
Basic Materials
2.32% 0.00% 60.58% 76.47%

Stock Geographic Breakdown

Weighting Return Low Return High HNDRX % Rank
US
99.25% -3.89% 100.00% 1.15%
Non US
0.00% -2.17% 99.33% 69.08%

HNDRX - Expenses

Operational Fees

HNDRX Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Expense Ratio 1.12% 0.20% 6.78% 47.74%
Management Fee 0.80% 0.20% 1.75% 49.25%
12b-1 Fee 0.10% 0.00% 1.00% 66.67%
Administrative Fee N/A 0.02% 0.28% N/A

Sales Fees

HNDRX Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Front Load N/A 4.75% 5.75% N/A
Deferred Load N/A 1.00% 1.00% N/A

Trading Fees

HNDRX Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Max Redemption Fee N/A 1.00% 2.00% N/A

Related Fees

Turnover provides investors a proxy for the trading fees incurred by mutual fund managers who frequently adjust position allocations. Higher turnover means higher trading fees.

HNDRX Fees (% of AUM) Category Return Low Category Return High Rank in Category (%)
Turnover 27.00% 0.00% 456.80% 55.36%

HNDRX - Distributions

Dividend Yield Analysis

HNDRX Category Low Category High HNDRX % Rank
Dividend Yield 0.20% 0.00% 3.76% 13.75%

Dividend Distribution Analysis

HNDRX Category Low Category High Category Mod
Dividend Distribution Frequency Annual Annually Monthly Annually

Net Income Ratio Analysis

HNDRX Category Low Category High HNDRX % Rank
Net Income Ratio 0.35% -2.54% 14.24% 43.03%

Capital Gain Distribution Analysis

HNDRX Category Low Category High Capital Mode
Capital Gain Distribution Frequency Annually Annually Annually Annually

Distributions History

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HNDRX - Fund Manager Analysis

Managers

Scott Ladner


Start Date

Tenure

Tenure Rank

Nov 01, 2016

5.58

5.6%

Mr. Ladner serves as Chief Investment Officer and is the Chair of the Investment Committee for Horizon. In these capacities, he oversees all aspects of the Investment Management division for the firm. He also provides the Investment Management division with Macro analysis and interpretation of global derivatives, credit, foreign exchange, equity, and funding markets. His previous roles at Horizon included Head of Risk and Director of Quantitative & Alternative Strategies. Prior to Horizon, Mr. Ladner was a founder of Charlotte Global Advisors and Principal Guard, LLC. Mr. Ladner helped to launch an equity index volatility and dispersion trading unit at PEΔK6 Investments in Chicago, a proprietary listed option and volatility trading firm. Previously at First Union/Wachovia, Mr. Ladner founded and ran the equity swap and forwards portfolio while also managing equity option and volatility portfolios. He also co-founded and managed the Risk Arbitrage and Special Situations portfolio.Mr. Ladner then managed the swaption and cap/floor portion of the bank’s interest rate derivatives portfolio. Mr. Ladner received his BA in Economics and Russian Language & Literature from the University of North Carolina at Chapel Hill.

Michael Dickson


Start Date

Tenure

Tenure Rank

Mar 31, 2018

4.17

4.2%

Dr. Dickson serves as Head of Portfolio Management and in this role oversees all investment strategies managed by Horizon. He also conducts research on the development of quantitative methods and strategies that support Horizon’s investment process and new product development. His research is published in scholarly journals and he frequently speaks on these topics at industry conferences. In previous roles at Horizon, he served as Director of Structured Financial Solutions and as a portfolio manager with an emphasis on retirement income and protection strategies. Dr. Dickson specializes in the areas of empirical asset pricing, portfolio construction, and factor models. Both during and after his Ph.D. studies he taught undergraduate and graduate school coursework in finance and portfolio management at UNC Charlotte. Prior to earning his Ph.D. he worked in financial analysis support roles at Premier, Inc. and Global Compliance. Dr. Dickson received his BS in Chemistry from Winthrop University and both an MS in Economics and Ph.D. in Finance from UNC Charlotte.

Zachary Hill


Start Date

Tenure

Tenure Rank

Feb 18, 2022

0.28

0.3%

Mr. Hill is part of the Investment Management division at Horizon Investments focusing on and providing investment insight on a broad range of asset allocation decisions from a global macro and derivatives perspective. Prior to joining Horizon in 2019, Mr. Hill served as a Senior Portfolio Analyst for Cold Spring Asset Management in New York from July 2016 to January 2017 and was a director within the foreign exchange option trading group at Wells Fargo in New York from 2010 to 2016. Mr. Hill began his career at Wachovia, acquired by Wells Fargo in 2008, in Charlotte in the FX Division. Mr. Hill holds a BA in Economics and a BA in Physics from the University of Virginia. Mr. Hill is also a CFA ® Charterholder.

Tenure Analysis

Category Low Category High Category Average Category Mode
0.04 19.77 3.61 5.67