While market volatility puts tremendous pressure on real-life financial traders, it has provided exciting conditions for the latest edition of the Horizons ETFs Biggest Winner 6 Trading Competition, a fantasy trading tilt which ran from May 9 to June 17.
“Given the volatile market conditions during the Competition, anyone who generated a positive return should be considered a winner,” said Steve Hawkins, Co-CEO of Horizons ETFs. “This year’s Competition really gave participants the chance to learn how to use ETFs tactically and find a strategy that works best for them.”
However, only one winner could be declared, and that was Tim Love, who managed a six-week cumulative return of 31.9%, landing him the competition’s grand prize of $7,500. The runner-up, Sylvain Roy, earned 31.7%, for which he was awarded $2,500.
The competition, for which almost 1,500 people registered, had eligible participants each open a fantasy brokerage account with a starting balance of $100,000 in notional Canadian dollars. The fund was then used to make simulated purchases and sales from the entire universe of ETFs listed in the TSX.
“You really had to be tactical to do well in this year’s Competition, as the markets moved dramatically back and forth during the course of the six weeks,” explained Mr. Hawkins. “In order to be near the top of the leaderboard, competitors had to be both long and short markets and asset classes.”
Despite the competition’s “no-ETFs-barred” rules, the entire top 20 belonged to the Horizons BetaPro family of leveraged and inverse ETFs, with the top 15 getting returns in excess of 15%. The Horizons BetaPro S&P/TSX Global GoldTM Bull Plus ETF and the Horizons BetaPro S&P 500 Short-Term FuturesTM Bull Plus ETF were the two most traded ETFs, the latter of which got Mr. Love an impressive 53.6% return for his account during a well-timed purchase.
“The high usage of BetaPro ETFs by the winners underscores how effective these types of tactical investment tools can be for short-term investment horizons,” Mr. Hawkins remarked.
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