Oil well with the pump jack in action. Alberta
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Horizons ETFs Management (Canada) Inc. will hold virtual shareholder meetings to discuss proposed changes to the investment objectives of two troubled crude oil ETFs.

Horizons suspended new subscriptions into the BetaPro Crude Oil Daily Bull ETF and BetaPro Crude Oil -1x Daily Bear ETF on April 22 due to “extreme volatility in crude oil markets.” In an effort to save the funds, the firm announced on April 29 that it had shifted the ETFs’ underlying exposure to the Septembers futures contract.

Horizons is now proposing changing the funds’ underlying index to the Horizons Crude Oil Rolling Futures Index, a proprietary index owned and operated by Horizons.

According to a release, the index “will endeavour to provide exposure to as close to the front month light sweet crude oil futures contract as is deemed reasonable by the manager, based on the current market conditions for crude oil futures contracts.”

The shareholder meetings are set to take place on July 2. Further details of the proposed changes will be distributed to shareholders in an information circular on May 22.

The changes, if approved, are expected to take effect in early July. Following that, Horizons plans to change the names of the funds to the BetaPro Crude Oil Leveraged Daily Bull ETF and the BetaPro Crude Oil Inverse Leveraged Daily Bear ETF.