Hedging with Horizons BetaPro Inverse and Bear+ ETFs Presented By: Howard Atkinson, CFA, CIMA ®, ICD.D President Horizons ETFs Date: March 11, 2010

- For Dealer Use Only - 2

3 About Horizons BetaPro ETFs Offers investors three types of ETF structures to profit or protect in all market conditions o HBP Bull + & Bear + ETFs: provide double exposure to the daily performance (or inverse daily) performance of 15 underlying indices before fees and expenses o Risk limited to capital invested through daily rebalancing o HBP Inverse ETFs: provide exposure to the inverse daily performance of 7 underlying indices before fees and expenses o HBP Single ETFs: provide exposure to the performance of 4 underlying commodity indices before fees and expenses Leading ETF provider in Canada BetaPro Management Inc. is a leading ETF provider in the country, growing 539% in 2007, 223% in 2008, and 26% in 2009 currently managing approximately $2.6 BN in the Horizons BetaPro ETFs. Exclusive provider of leveraged, inverse, and single commodity ETFs in Canada World's first leveraged and inverse leveraged commodity ETFs NYMEX ® Crude Oil, NYMEX ® Natural Gas, COMEX ® Gold & Silver, S&P Agribusiness

- For Dealer Use Only - 4 Current Product Line-Up

- For Dealer Use Only - 5 Markets: Past & Present Historical Market Cycles: DJIA Present “Historical market cycles indicate that U.S. equity markets tend to follow cycles approximately every years.” (Don Vialoux, Investing Through the Ages, National Post, ) present Post- Depression Baby Boom Skeptical Technology ?? Turn of the Century Roaring ‘20s Source: StockCharts.com

- For Dealer Use Only - 6 Dow Jones Industrial Average 2000 to 2010 Source: Bloomberg

- For Dealer Use Only - 7 Leveraged and inverse funds affected by record volatility Highest short-term volatility levels for U.S. equities in 80 years affected all investments, including leveraged funds S&P Month Volatility (annualized %) 66% (12/31/29) 69% (10/21/32) 60% (1/11/88) 72% (12/16/08) Source: Journal of Indexes, August For illustrative purposes only. Source: Bloomberg

- For Dealer Use Only - 8 Universal effects of compounding on investment returns All HBP leveraged and inverse ETFs rebalance daily to ensure an investor’s risk is limited to the current value of their investment The trend is your friend o Favourable trending periods enhance returns o Unfavourable trending periods reduce losses Volatile periods reduce returns and may increase losses Positive and negative effects of compounding are magnified in leveraged and inverse funds o The impact of daily compounding on a 2x leveraged fund is greater than 2x a period return Source: ProShare Advisors LLC

- For Dealer Use Only - 9 Compounding Affects All Investments Over Time Source: ProShare Advisors LLC I N D E X-1x F U N D*-2x F U N D* Daily Return U P W A R D T R E N D Day 1 Return10%-10%-20% Day 2 Return10%-10%-20% Compounded 2-day Return21%-19%-36% D O W N W A R D T R E N D Day 1 Return-10%10%20% Day 2 Return-10%10%20% Compounded 2-day Return-19%21%44% V O L A T I L E M A R K E T Day 1 Return10%-10%-20% Day 2 Return-10%10%20% Compounded 2-day Return-1% -4% *Before fees and expenses as described in the Prospectus

- For Dealer Use Only - 10 HBP ETFs Guide Underlying IndexTickerInception Date S&P/TSX 60™ IndexHIXMarch 4, 2009 S&P/TSX Capped Financials Index™HIFMarch 4, 2009 S&P/TSX Capped Energy Index™HIEMarch 11, 2009 S&P/TSX Global Gold Index™HIGMarch 11, 2009 S&P 500® IndexHIUFebruary 10, 2010 NYMEX® Natural GasHINFebruary 10, 2010 NYMEX® Crude OilHIOFebruary 10, 2010 BetaPro currently has 7 Inverse ETFs offering the daily inverse results of the following indices:

- For Dealer Use Only - 11 Index Volatility Source of Data: Bloomberg 2007 S&P/TSX 60 TM Index14.90% S&P/TSX Capped Financials Index TM 13.22% S&P/TSX Capped Energy Index TM 19.81% S&P/TSX Global Gold Index TM 28.92% S&P 500® Index15.95% NYMEX® Crude Oil29.25% NYMEX® Natural Gas44.83%

- For Dealer Use Only - 12 Index Volatility Source of Data: Bloomberg 2008 S&P/TSX 60 TM Index41.46% S&P/TSX Capped Financials Index TM 42.56% S&P/TSX Capped Energy Index TM 60.22% S&P/TSX Global Gold Index TM 80.36% S&P 500® Index41.05% NYMEX® Crude Oil57.61% NYMEX® Natural Gas47.03%

- For Dealer Use Only - 13 Index Volatility Source of Data: Bloomberg 2009 S&P/TSX 60 TM Index27.28% S&P/TSX Capped Financials Index TM 37.21% S&P/TSX Capped Energy Index TM 39.21% S&P/TSX Global Gold Index TM 47.50% S&P 500® Index27.28% NYMEX® Crude Oil49.87% NYMEX® Natural Gas62.10%

- For Dealer Use Only - 14 Key Attributes of HBP Inverse ETFs INVERSE DAILY performance of the underlying index* Risk limited to capital invested TSX Listed No leverage Tax Efficient Marginable CAD Denominated *Before fees and expenses as described in the Prospectus

- For Dealer Use Only - 15 Why Do We Rebalance ? Limits risk to current invested amount Same experience for each investor No margin calls Rebalancing calculator available for longer period holds

- For Dealer Use Only - 16 HBP Inverse ETF Correlations - Financials Bank EquityRelative toCorrelation*HIF HedgeHFD Hedge RBC Capped Financials 0.93$0.93$0.46 CIBC Capped Financials 0.87$0.87$0.44 TD Capped Financials 0.91$0.91$0.45 BNS Capped Financials 0.91$0.91$0.45 BMO Capped Financials 0.86$0.86$0.43 MFC Capped Financials 0.86$0.86$0.43 *Data from 1/1/07 to 2/23/10 | Source of Data: Bloomberg Perfect Correlation = 1

- For Dealer Use Only - 17 HBP Inverse ETF Correlations – S&P 500 US BankRelative toCorrelation*HIU HedgeHSD Hedge Bank of AmericaS&P $0.69$0.35 JP MorganS&P $0.75$0.37 3MS&P $0.79$0.39 General ElectricS&P $0.73$0.36 *Data from 1/1/07 to 2/23/10 | Source of Data: Bloomberg Perfect Correlation = 1

- For Dealer Use Only - 18 HBP ETF Correlations – Natural Gas Firm / FundRelative toCorrelation*HIN HedgeHND Hedge EnCana CorporationNatural Gas0.26$0.26$0.13 Talisman Energy Inc Natural Gas0.23$0.23$0.11 NuVista Energy Ltd. Natural Gas0.28$0.28$0.14 *Data from 1/1//07 to 2/23/10 | Source of Data: Bloomberg Perfect Correlation = 1

- For Dealer Use Only - 19 HBP ETF Correlations – Crude Oil Firm / FundRelative toCorrelation*HIC HedgeHOD Hedge EnCana CorporationCrude Oil0.45$0.45$0.22 Talisman Energy Inc Crude Oil0.47$0.47$0.23 Canadian Natural Resource LTD.Crude Oil0.53$0.53$0.26 Suncor Energy Inc.Crude Oil0.52$0.52$0.24 *Data from 1/1/07 to 2/23/10 | Source of Data: Bloomberg Perfect Correlation = 1

- For Dealer Use Only - 20 Performance -4.4% -25.8% -50.9% Source: Bloomberg

- For Dealer Use Only - 21 HIX outperforms HXD +8.1% +4.7% -18.1% Source: Bloomberg

- For Dealer Use Only - 22 Performance of TSX 60/HIX/HXD 5-month period % +50.9% -40.7% Source: Bloomberg

- For Dealer Use Only - 23 HBP ETFs Performance Summary* HBP ETFs track (-1x, +/-2x) extremely well on a DAILY basis Over periods longer than a day, performance is MARKET PATH DEPENDENT Directional markets are favourable for performance: o Earn GREATER than (-1x, +/-2x) or lose LESS than (-1x, +/-2x) period returns The greater the two-way volatility, the further performance will deviate (be worse) from (-1x, +/-2x) the period return WITHOUT INVESTOR REBALANCING HBP Single Commodity ETFs (1x) track the daily AND period performance of the rolling underlying futures contracts *Assumes an investor is Long HBP ETFs

- For Dealer Use Only - 24 Disclaimers Horizons BetaPro Bull Plus and Bear Plus Exchange Traded Funds ("BetaPro Plus ETFs") use leveraged investment techniques that magnify gains and losses and result in greater volatility in value. BetaPro Plus ETFs are subject to leverage risk, and Horizons BetaPro Single Exchange Traded Funds ("BetaPro Single ETFs"), Horizons BetaPro Inverse Exchange Traded Funds ("BetaPro Inverse ETFs") and BetaPro Plus ETFs (collectively, "BetaPro ETFs") are subject to aggressive investment risk and price volatility risk, which are described in the respective BetaPro ETF's prospectus. Each BetaPro Plus ETF seeks a return that is either 200% or -200% of the performance of a specified underlying index, commodity or benchmark (the "target") for a single day. Each BetaPro Single ETF or BetaPro Inverse ETF seeks a return that is 100% or - 100%, respectively, of the performance of a specified underlying target. Due to the compounding of daily returns, an BetaPro Plus ETF's or BetaPro Inverse ETF's, returns over periods other than one day will likely differ in amount and possibly direction from the performance of the specified underlying target for the same period. Investors should monitor their holdings, as frequently as daily, to ensure that they remain consistent with their investment strategies. Commissions, management fees and expenses all may be associated with the BetaPro ETFs. BetaPro ETFs are not guaranteed, their values change frequently and past performance may not be repeated. All trademarks and servicemarks are registered by their respective owners and licensed for use by BetaPro Management Inc. and none of the owners thereof or any of their affiliates sponsor, endorse, sell, promote or make any representation regarding the advisability of investing in BetaPro ETFs. Complete trademark and servicemark information is available at Please read the prospectus before investing. "Standard & Poor's®" and "S&P®" are registered trademarks of The McGraw-Hill Companies, Inc. and "TSX®" is a registered trademark of the TSX Inc. These marks have been licensed for use by BetaPro Management Inc. The HBP ETFs are not sponsored, endorsed, sold, or promoted by Standard & Poor's or TSX Group and its affiliated companies and neither party make any representation, warranty or condition regarding the advisability of investing in the HBP ETFs

- For Dealer Use Only - 26 HBP Inverse ETFs S&P/TSX 60™ Inverse ETF (HIX) o The HBP S&P/TSX 60™ Inverse ETF seeks daily investment results, before fees, expenses, distributions, brokerage commissions and other transaction costs, that endeavour to correspond to one times (100%) the inverse (opposite) of the daily performance of the S&P/TSX 60 Index™. S&P/TSX Capped Financials™ Inverse ETF (HIF) o The HBP S&P/TSX Financials™ Inverse ETF seeks daily investment results, before fees, expenses, distributions, brokerage commissions and other transaction costs, that endeavour to correspond to one times (100%) the inverse (opposite) of the daily performance of the S&P/TSX Capped Financials Index™. S&P/TSX Capped Energy™ Inverse ETF (HIE) o The HBP S&P/TSX Energy™ Inverse ETF seeks daily investment results, before fees, expenses, distributions, brokerage commissions and other transaction costs, that endeavour to correspond to one times (100%) the inverse (opposite) of the daily performance of the S&P/TSX Capped Energy Index™.

- For Dealer Use Only - 27 HBP Inverse ETFs S&P/TSX Global Gold™ Inverse ETF (HIG) o The HBP S&P/TSX Global Gold™ Inverse ETF seeks daily investment results, before fees, expenses, distributions, brokerage commissions and other transaction costs, that endeavour to correspond to one times (100%) the inverse (opposite) of the daily performance of the S&P/TSX Global Gold Index™. S&P 500 ® Inverse ETF (HIU) o The HBP S&P 500® Inverse ETF seeks daily investment results, before fees, expenses, distributions, brokerage commissions and other transaction costs, that endeavour to correspond to one times (100%) the inverse (opposite) of the daily performance of the S&P 500® Index.

- For Dealer Use Only - 28 HBP Inverse ETFs NYMEX® Natural Gas Inverse ETF (HIN) o The HBP NYMEX Natural Gas Inverse ETF seeks daily investment results, before fees, expenses, distributions, brokerage commissions and other transaction costs, that endeavour to correspond to one times (100%) the inverse (opposite) of the daily performance of NYMEX Natural Gas. NYMEX® Crude Oil Inverse ETF (HIO) o The HBP NYMEX Crude Oil Inverse ETF seeks daily investment results, before fees, expenses, distributions, brokerage commissions and other transaction costs, that endeavour to correspond to one times (100%) the inverse (opposite) of the daily performance of NYMEX Crude Oil.