Horizons ETFs Completes Rebalances of its Marijuana-focused ETFs
TORONTO, Sept. 26, 2018 /CNW/ – Horizons ETFs Management (Canada) Inc. (“Horizons ETFs”) has completed the quarterly rebalance of the constituent holdings of the Horizons Marijuana Life Sciences Index ETF (“HMMJ:TSX”) and the Horizons Emerging Marijuana Growers Index ETF(“HMJR:NEO”).
HMMJ is the world’s first and largest ETF offering direct exposure to North American publicly listed life sciences companies with significant business activities in the Marijuana industry. As at September 5, 2018, HMMJ had reached over CAD $1 billion in assets under management – a rare achievement for the Canadian ETF marketplace.
As capital markets activity for cannabis companies in Canada increases, HMMJ continues to add more companies to its portfolio as more firms have become eligible for inclusion in the North American Marijuana Index: HMMJ’s underlying index.
The HMMJ portfolio recently expanded to include the following additional constituents:
HMMJ is an index (or passively managed) ETF, which seeks to replicate, to the extent possible, the performance of the North American Marijuana Index, net of expenses. This index is designed to provide exposure to the performance of a basket of North American publicly listed life sciences companies with significant business activities in the Marijuana industry. The index selects from a current universe of companies that have operations that may include one or more of biopharmaceuticals, medical manufacturing, distribution, bio-products and other ancillary businesses related to the Marijuana industry.
HMMJ’s growth and its recent achievement of $1 billion in assets highlight the ongoing growth in the size and number companies within the North American Marijuana Index. HMMJ’s rebalance comes at a time when there is a significant focus on the sector, given that recreational marijuana will become legal in Canada on October 17, 2018.
Steve Hawkins, President and CEO of Horizons ETFs
With recreational sales starting soon, investors will get a better idea of what companies are poised to become leaders in the recreational cannabis space and are able to generate real sales.
Rebalancing of the North American Marijuana Index, and consequently HMMJ, occurs each calendar quarter. At that point, all stocks eligible for inclusion in the index are weighted by their respective market capitalization. However, no single stock can exceed 10% of the weight of the index at the rebalance date. The holdings of HMMJ and its current portfolio weights are regularly updated on our website at www.HorizonsETFs.com/HMMJ.
Horizons ETFs also completed the rebalance of the portfolio of HMJR. HMJR seeks to replicate, to the extent possible, the performance of the Emerging Marijuana Growers Index, net of expenses. This index is designed to provide exposure to the performance of a basket of primarily North American publicly listed small-capitalization companies primarily involved in the cultivation, production and/or distribution of Marijuana.
HMJR has four key differences compared to HMMJ. HMJR only invests in smaller market-capitalization companies, its portfolio is 100% invested in Marijuana producers and distributors, and it can have exposure to companies listed outside of North America. In addition, HMJR’s primary listing is on the NEO Exchange.
The HMJR portfolio recently expanded to include the following additional constituents:
HMJR also had to eliminate some holdings from its initial portfolio due to the fact they no longer qualify for index inclusion. They are:
“HMJR offers investors a way to gain exposure to a basket of primarily North American companies within the marijuana sector that have smaller market capitalizations; providing access to emerging players within the space,” said Mr. Hawkins. “As they grow, these budding marijuana companies have the opportunity to graduate into HMMJ’s index, allowing investors to participate in the full growth cycle of these businesses through our two marijuana based ETFs.”
The holdings of HMJR and its current portfolio weights are regularly updated on our website at www.HorizonsETFs.com/HMJR.
It is important to note that both HMMJ and HMJR may not hold all of the constituent names in their respective indices. The manager of the ETFs, through the use of a stratified sampling strategy, may invest in securities that closely match the investment characteristics of the ETFs’ respective indices, provided they are consistent with the ETFs’ investment objectives and strategies.
About Horizons ETFs Management (Canada) Inc. (www.HorizonsETFs.com)
Horizons ETFs Management (Canada) Inc. is an innovative financial services company and offers one of the largest suites of exchange traded funds in Canada. The Horizons ETFs product family includes a broadly diversified range of solutions for investors of all experience levels to meet their investment objectives in a variety of market conditions. Horizons ETFs has more than $11 billion of assets under management and 83 ETFs listed on major Canadian stock exchanges. Horizons ETFs Management (Canada) Inc. is a member of the Mirae Asset Global Investments Group.