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FHM

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Analysis and statistics

  • Open
    28.8855$
  • Previous Close
    28.8855$
  • 52 Week Change
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  • Day Range
    0.00$
  • 52 Week High/Low
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  • Dividend Per Share
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  • Market cap
    --$
  • EPS
    --
  • Beta
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  • Volume
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About

FHM.TO represents the Horizons High-Yield Floating Rate Note ETF, traded on the Toronto Stock Exchange. This exchange-traded fund aims to replicate, to the extent possible, the performance of the Solactive High Yield Floating Rate USD CAD Hedged Index, net of expenses. The fund primarily invests in U.S. dollar denominated high-yield corporate debt securities (commonly referred to as “junk bonds”) that have floating interest rates, while hedging its exposure to the U.S. dollar back to Canadian dollars. It's designed for investors seeking income from high-yield debt while mitigating interest rate risk and currency fluctuations between the USD and CAD.

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Factors

Underlying Holdings' Performance: FHM.TO's price heavily depends on the collective performance of the high-yield bonds and other debt instruments it holds. If these holdings perform well, the ETF's price will likely increase.

Interest Rate Changes: As a bond ETF, FHM.TO is sensitive to interest rate fluctuations. Rising interest rates typically cause bond prices to fall, negatively affecting the ETF's price.

Credit Spreads: Widening credit spreads (the difference between high-yield bond yields and risk-free rates) indicate increased risk aversion, which can lower the value of high-yield bonds and thus FHM.TO's price.

Market Sentiment: Overall investor sentiment towards high-yield bonds and riskier assets influences demand for FHM.TO. Positive sentiment can drive up the price, while negative sentiment can depress it.

Liquidity and Trading Volume: Low liquidity and trading volume can lead to wider bid-ask spreads and potentially greater price volatility for FHM.TO.

ETF Supply and Demand: Basic supply and demand forces also play a role. High demand can push the price above its net asset value (NAV), while increased selling pressure can cause it to trade at a discount.

Fund Management Fees: Although indirectly, FHM.TO's expense ratio affects its overall return. Higher fees can slightly reduce the net return compared to similar ETFs with lower fees.

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