STOX.B Triggers Bearish Dead Cross Despite Inflows

ETF Overview and Capital Flows

The Horizon Core Equity ETF (STOX.B) is an actively managed equity fund designed to seek capital appreciation. It falls under the "Active Equity ETFs" theme and holds a leverage ratio of 1.0x, amplifying its exposure to U.S. equities. Recent data shows a net inflow of $29.21 million, reflecting modest investor interest despite its 0.7% expense ratio, which is above the average for core equity funds.

Technical Signals and Market Setup

A key technical signal emerges from the KDJ indicator: STOX.B has triggered a "dead cross," a bearish pattern often signaling potential near-term weakness. This divergence between price action and technical indicators raises questions about sustainability. The ETF’s recent 52-week high may lack broad-based momentum support, suggesting caution for new buyers.

Peer ETF Snapshot

• AGG.P charges a 0.03% expense ratio, holds $138 billion in assets, and maintains a 1.0x leverage ratio.
• AVIG.P has a 0.15% expense ratio, $2 billion in AUM, and a 1.0x leverage ratio.
• ANGL.O offers a 0.25% expense ratio, $3 billion in assets, and a 1.0x leverage ratio.
• APMU.P carries a 0.37% expense ratio, $213 million in AUM, and a 1.0x leverage ratio.

Opportunities and Structural Constraints

STOX.B’s leveraged structure and active management present opportunities in rising markets but amplify risks during downturns. The KDJ dead cross highlights a potential structural constraint: the ETF’s price strength may not align with broader technical momentum. Investors should weigh its higher expense ratio against its performance relative to peers like AGG.P and AVIG.P, which offer scale and lower costs.