Horizon Digital Frontier ETF Stock Price, News & Analysis

Horizon Digital Frontier ETF (YNOT) is an actively managed exchange traded fund that, according to Horizon, aims to achieve long-term capital appreciation. The fund does this by investing primarily in equity securities of companies operating in the digital and technology sectors, with a focus on firms that Horizon describes as being at the forefront of digital innovation and transformation.

Investment objective and approach

The stated investment objective of Horizon Digital Frontier ETF is long-term capital appreciation. The fund seeks to identify and hold equity securities of companies in digital and technology areas that Horizon views as being closely connected to emerging technologies and digital transformation. As an actively managed ETF, portfolio decisions are made by Horizon’s investment team rather than tracking a specific index.

Horizon characterizes YNOT, alongside its other ETFs, as part of a lineup of outcome-oriented strategies designed to align with a client’s goals, such as building wealth, preserving assets, or preparing for retirement. In Horizon’s description, YNOT offers growth exposure in the digital space with a risk-aware approach, intended to be used by financial advisors as a portfolio building block within a broader goals-based framework.

Role within Horizon’s ETF lineup

Horizon Digital Frontier ETF is one of several actively managed ETFs offered by Horizon. The firm notes that its ETF lineup expanded from an initial two funds to nine offerings, with each fund designed to fit within a goals-based methodology. YNOT is positioned within this lineup as a way to access companies in digital and technology sectors, complementing other Horizon strategies that address different risk and return objectives.

About Horizon

Horizon describes itself as an industry-recognized firm that provides modern goals-based solutions to empower financial advisors to help their clients reach financial goals. The firm states that it operates at the intersection of financial technology, wealth management, and investment solutions. Horizon emphasizes its combination of investment capabilities, proprietary technology, and customized support aimed at helping advisory practices grow and focus on client relationships.

According to Horizon, the firm has advisor clients across the United States and is headquartered in Charlotte, North Carolina. Horizon’s ETFs, including Horizon Digital Frontier ETF, are distributed by Quasar Distributors, LLC.

Risk considerations

Horizon highlights that investing in Horizon Digital Frontier ETF involves risk, including the potential loss of principal, and that there is no assurance the fund will meet its objective. The firm notes that investments in securities are subject to market risks that may cause prices to fluctuate, and that the value of investments can decline due to factors affecting securities markets or individual holdings.

Horizon also points out that investments in options involve risks that differ from investing directly in securities, including leverage risk, tracking risk, and, for over-the-counter options, counterparty default risk. Option positions may expire worthless, which can expose the fund to significant losses. Horizon further notes that shares of any ETF are bought and sold at market price rather than net asset value and are not individually redeemed, and that brokerage commissions can reduce returns.

How advisors may use YNOT

Horizon presents Horizon Digital Frontier ETF as a tool for financial advisors who want to engage with rapidly evolving digital and technology themes while maintaining a risk-aware orientation. Within Horizon’s goals-based framework, advisors may consider YNOT as part of a broader allocation intended to pursue growth objectives across different risk tolerances, in combination with other Horizon ETFs that focus on various strategies.