Horizon Investments wrapped up its 2025 ETF launch campaign with three actively managed funds offering investors exposure to both U.S. small- and midcap stocks and international markets.
The Charlotte-based firm listed the Horizon International Equity ETF (FRGN), the Horizon Small/Mid Cap Core Equity ETF (SMOX), and the Horizon International Managed Risk ETF (SFTX) on the New York Stock Exchange on Wednesday, according to a company announcement.
The launches bring Horizon’s total ETF lineup to 12 funds, all introduced this year, according to the firm. Each new fund charges between 0.75% and 0.82% in annual expenses and uses quantitative models to select securities based on factors like value, momentum, and quality.
FRGN invests in non-U.S. companies across developed and emerging markets with a 0.75% expense ratio. The fund combines active management with computer-driven models to allocate investments across different countries and market sectors, according to the prospectus.
SMOX targets U.S. small- and midcap companies, following a similar approach to FRGN. The fund also carries a 0.75% expense ratio and seeks returns through a mix of human oversight and algorithmic stock selection, the prospectus shows.
Meanwhile, SFTX takes a different path by incorporating Horizon’s Risk Assist framework, which shifts money into U.S. Treasury securities or cash during volatile markets. The international equity fund charges 0.82% annually, according to the prospectus.
New ETF Launch Strategy
All three funds use put spread transactions — a combination of buying and selling options contracts — to generate additional income. The strategy involves simultaneously selling one option while buying another at a lower price to limit potential losses, according to the prospectuses.
“Each solution we build is based on direct feedback from financial advisors and the portfolio construction challenges they face,” Clark Allen, head of product at Horizon, said in the announcement.
The firm launched all 12 of its ETFs in less than a year. Horizon works with financial advisors to create investment strategies designed to help clients meet specific financial goals, according to the company.
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