Mr. Martin Fabregas reports

HORIZONS ANNOUNCES JULY 2016 DISTRIBUTIONS FOR ITS COVERED CALL ETFS

Horizons ETFs Management (Canada) Inc. and its affiliate AlphaPro Management Inc. have released the distribution amounts per unit for the Horizons ETFs suite of covered-call exchange-traded funds for the period ending July 31, 2016, as indicated in the attached table.

The ex dividend date for the distributions is anticipated to be July 27, 2016, for all unitholders of record on July 29, 2016. The distributions will be paid in cash or, if the unitholder has enrolled in the respective ETF's dividend reinvestment plan, reinvested in additional units of the applicable ETF, on or about Aug. 11, 2016.

                                                      JULY DISTRIBUTIONS
  
ETF name                              Ticker   Current-month   NAV change   Current-month   Prior-month        Absolute 
                                      symbol    distribution   from prior        yield (2)     yield (3)      change in 
                                                        rate     month (1)                                   yield from 
                                                                                                         prior month (4)

Horizons Enhanced Income Equity ETF      HEX        $0.02786        3.39%            5.07%         5.22%          -0.15%
                                       HEX.A        $0.02355        3.32%            4.27%         4.42%          -0.15%
Horizons Enhanced Income Energy ETF      HEE        $0.04960        2.14%            4.04%         4.57%          -0.53%
                                       HEE.A        $0.04002        2.07%            3.24%         3.77%          -0.53%
Horizons Enhanced Income Gold
Producers ETF                            HEP        $0.11400        9.53%            4.11%         5.27%          -1.16%
                                       HEP.A        $0.09140        9.46%            3.31%         4.47%          -1.16%
Horizons Enhanced Income Financials
ETF                                      HEF        $0.03365        0.99%            4.87%         5.25%          -0.38%
                                       HEF.A        $0.02824        0.92%            4.07%         4.45%          -0.38%
Horizons Enhanced Income
International Equity ETF                 HEJ        $0.03397        2.68%            6.53%         7.94%          -1.41%
                                       HEJ.A        $0.02980        2.62%            5.73%         7.15%          -1.42%
Horizons Enhanced Income U.S. Equity
(USD) ETF (5)                          HEA.U        $0.04665        3.37%            5.15%         5.81%          -0.66%
                                         HEA        $0.04665        5.35%            5.15%         5.81%          -0.66%
                                       HEA.V        $0.03941        3.31%            4.35%         5.01%          -0.66%
                                       HEA.A        $0.03941        5.28%            4.35%         5.01%          -0.66%
Horizons Gold Yield ETF                  HGY        $0.02348        3.56%            4.95%         4.80%           0.15%
                                       HGY.A        $0.01991        3.50%            4.20%         4.04%           0.16%
Horizons Natural Gas Yield ETF           HNY        $0.10523       -3.41%            8.08%         8.41%          -0.33%
                                       HNY.A        $0.09463       -3.48%            7.27%         7.60%          -0.33%

(1) Based on the period from June 21, 2016, to July 20, 2016, where the prior-month net asset value per unit 
is adjusted to include the prior-month distribution.
(2) Annualized and based on the applicable July 20, 2016, net asset value per unit, which is available at the 
Horizons ETFs website.
(3) Annualized and based on the applicable June 21, 2016, net asset value per unit, which is available at the 
Horizons ETFs website.
(4) The absolute change of the prior month's previously announced annualized distribution yield to the current 
month's annualized distribution yield.
(5) Distributions for Horizons Enhanced Income U.S. Equity (USD) ETF are declared and paid in U.S. dollars, 
including those listed under the Canadian-dollar-traded tickers HEA and HEA.A. The approximate Canadian-dollar-
equivalent distribution rates for HEA and HEA.A are 6.091 cents per unit and 5.146 cents per unit, 
respectively. For unitholders who hold Canadian-dollar-traded HEA and HEA.A, distribution payments will 
typically be converted to Canadian dollars by the unitholder's account holder.

Each ETF does not have a fixed distribution but pays distributions monthly. Distribution rates are generally based on the average current volatility of the securities held by the ETF, along with any dividend income received, less expenses payable by the ETF. The amount of monthly cash distributions is expected to fluctuate from month to month, and there can be no assurance that an ETF will make any distributions in any particular month or months. Monthly distributions will be paid in cash, unless the investor has chosen to participate in the ETF's reinvestment plan.