If You Invested in Horizon International Equity ETF (FRGN)

Horizon International Equity ETF (FRGN) is an exchange-traded fund listed on the New York Stock Exchange (NYSE). According to Horizon, the fund seeks capital appreciation through an actively managed approach that combines quantitative models and options strategies to invest in international equity markets.

The ETF is described as allocating across both developed and emerging markets using a flexible framework. Horizon states that FRGN applies multi-factor analysis with an emphasis on value, momentum, quality, volatility, and sentiment. These factors are used to identify and weight equity exposures with the goal of capturing diverse sources of return across international markets.

In addition to its equity selection process, FRGN is noted for the tactical use of put spreads. A put spread is an options strategy involving the purchase and sale of two put options on the same asset with the same expiration date but different strike prices. Horizon indicates that this options overlay is used to enhance total return potential within the fund’s overall strategy.

FRGN is part of Horizon’s lineup of exchange-traded funds that the firm describes as goals-based solutions for financial advisors and their clients. The Horizon ETF suite includes domestic and international strategies designed to provide targeted exposure and risk management tools for advisory practices.

Horizon characterizes itself as a provider of highly customized investment and technology solutions intended to support the growth of financial advisors. The firm highlights its focus on goals-based approaches, proprietary technology, and customized support for advisory practices. Horizon serves financial advisors across the United States and is headquartered in Charlotte, North Carolina.

As with other ETFs, shares of Horizon International Equity ETF are bought and sold on an exchange at market prices rather than directly at net asset value. Horizon notes that brokerage commissions can reduce investor returns and that investing in securities, including international markets and options, involves risks, including the potential loss of principal.

Fund strategy and approach

Horizon states that FRGN’s investment process combines active management with quantitative models. The multi-factor framework is intended to evaluate securities based on value, momentum, quality, volatility, and sentiment characteristics. By applying these factors across developed and emerging markets, the fund seeks to identify opportunities for capital appreciation outside the United States.

The use of put spreads is presented as a tactical tool within the strategy. According to Horizon, these options positions are used to enhance total return potential, and they introduce risks that differ from investing directly in securities. The firm notes that option positions may expire worthless and that options involve risks such as leverage risk, tracking risk, and, for certain over-the-counter positions, counterparty default risk.

Role within Horizon’s ETF lineup

Horizon describes FRGN as one of several ETFs that together form a suite of goals-based solutions. Within this lineup, FRGN provides international equity exposure with an active, factor-based process and an options overlay. Other funds in the suite include strategies focused on U.S. small- and mid-cap equities and international managed risk, illustrating Horizon’s emphasis on building blocks that advisors can use in portfolio construction.

The firm positions its ETF range as tools that financial advisors can use to address portfolio construction challenges and align investments with client goals. FRGN’s international focus and factor-based methodology fit within this broader framework of outcome-oriented strategies described by Horizon.

Risk considerations

Horizon emphasizes that investing in FRGN involves risks. The firm notes that investments in securities are subject to market risks that may cause prices to fluctuate. It also highlights that investments in non-U.S. markets can be more volatile and less liquid than the U.S. market. The value of investments in fixed income securities, and in securities whose underlying investments are fixed income securities, is expected to fluctuate with changes in interest rates.

Horizon further notes that there is no assurance that the fund will meet its objective and that investing involves the potential loss of principal. The discussion of options risk underscores that options strategies, including put spreads, may introduce additional risks compared with investing directly in securities.

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, offering deep expertise, proprietary technology, and customized support to advisory practices.

According to Horizon, this approach is intended to help advisors transform their practices and focus on building relationships and guiding clients toward financial objectives. The firm serves financial advisors across the country and is headquartered in Charlotte, North Carolina.

Key characteristics of Horizon International Equity ETF (FRGN)

• Fund type: Exchange-traded fund listed on the New York Stock Exchange (NYSE)
• Stated objective: Seeks capital appreciation
• Investment focus: International equity securities across developed and emerging markets
• Management style: Active management combined with quantitative models
• Factor approach: Multi-factor analysis emphasizing value, momentum, quality, volatility, and sentiment
• Options overlay: Tactical use of put spreads to enhance total return potential, as described by Horizon
• Provider: Horizon, a firm focused on goals-based solutions for financial advisors
• Headquarters of provider: Charlotte, North Carolina

Important investor information

Horizon advises that investors should consider the investment objectives, risks, charges, and expenses carefully before investing in the fund and should review the prospectus, which contains this and other information. The firm notes that investing involves risk, including potential loss of principal, and that there is no assurance the fund will meet its objective. Shares of any ETF are bought and sold at market price and are not individually redeemed from the fund, and brokerage commissions will reduce returns.