Horizons ETFs Rebalances Marijuana-Focused Index ETF Suite

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TORONTO, Sept. 27, 2019 /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), the Horizons US Marijuana Index ETF (“HMUS”:NEO) and the Horizons Emerging Marijuana Growers Index ETF (“HMJR”:NEO).

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HMMJ is the world’s first ETF offering direct exposure to North American-listed securities that are involved with marijuana bioengineering and production. Once again, the ETF has added additional companies to its portfolio as more firms have become eligible for inclusion in its underlying index – the North American Marijuana Index.

The HMMJ portfolio recently expanded to include the following two constituents:

Company Name

Ticker

Exchange

Akerna Corp.

KERN

NASDAQ

Fire & Flower Holdings Corp.

FAF

Toronto Stock Exchange

 

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 North American Marijuana Index selects from a current universe of companies that have operations that may include one or more of biopharmaceuticals, medical manufacturing, distribution, bioproducts and other ancillary businesses related to the marijuana industry.

HMMJ is relatively flat year to date, as the Marijuana sector has underperformed the broader markets. While underwhelming, key events on the horizon could result in renewed investor interest, like the second phase of Canadian cannabis legalization permitting edibles, beverages, extracts and topicals on October 17th. According to Deloitte, that market segment could be worth an additional $2.7 billion,” said Steve Hawkins, President and CEO of Horizons ETFs. “Even when the marijuana sector has struggled as of late, HMMJ currently provides some additional performance benefits through its securities lending mechanisms. Year-to-date, including the Q3 distribution trading ex-dividend today, HMMJ has provided $.85 cents per unit of income for its investors.”

Rebalancing of the North American Marijuana Index, and consequently HMMJ, occurs each calendar quarter. At that point, all stocks eligible for inclusion are generally re-weighted by their respective market capitalization. The holdings of HMMJ and its current portfolio weights are regularly updated and available at https://www.HorizonsETFs.com/HMMJ.

Performance Update as at September 20, 2019*

 

1 Month

3 Month

6 Months

YTD

1 Year

Annualized
Since Inception**

HMMJ

-9.17%

-26.23%

-38.96%

-0.67%

-43.70%

19.53%

NAMMAR Index

-8.05%

-27.59%

-38.04%

-3.08%

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-44.46%

9.19%

TX60AR Index

4.85%

2.76%

6.72%

20.39%

8.78%

7.06%

 

* Source: Bloomberg, as at September 20, 2019.
** Since HMMJ’s inception on April 4, 2017.

 

The indicated rates of return are the historical annual compounded total returns, including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. Additionally, index returns do not take into account management, operating or trading expenses that may be incurred in replicating the index. The rates of return above are not indicative of future returns. ETFs are not guaranteed, their values change frequently, and past performance may not be repeated. The index is (indices are) not directly investible.

HMUS Rebalance

This was the second rebalance of HMUS since the ETF was launched in April. HMUS is the world’s first U.S.-focused marijuana index ETF.

HMUS seeks to replicate, to the extent possible, the performance of the US Marijuana Companies Index, net of expenses. This index is designed to provide exposure to the performance of a basket of publicly listed companies having significant business activities in, or significant exposure to, the marijuana or hemp industries in the United States. Constituents of this index are selected from Canadian and U.S. exchanges. While some securities may be listed on major North American exchanges, the majority of the securities currently trade on North American exchanges that include but are not limited to the Canadian Securities Exchange and the Aequitas NEO Exchange.

This rebalance included the addition of one new index constituent:

Company Name

Ticker

Exchange

Akerna Corp.

KERN

NASDAQ

 

“We created HMUS because we believe the U.S. marijuana and hemp markets have the potential to be the world’s largest cannabis market,” said Mr. Hawkins. “In 2018, the U.S. marijuana sector generated an estimated $10.5 billion in revenue. By 2024, Arcview Market Research and BDS Analytics predict that all U.S. states will legalize medical usage and the recreational marijuana market will be permitted in almost half, worth an estimated $44.8 billion.”

Rebalancing of the US Marijuana Companies Index, and consequently HMUS, occurs each calendar quarter. At that point, all stocks eligible for inclusion are generally re-weighted by their respective market capitalization. The holdings of HMUS and its current portfolio weights are regularly updated and available at http://www.HorizonsETFs.com/HMUS.

HMJR Rebalance

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 invests in companies with market capitalizations generally between CAD $50 million and CAD $500 million. The ETF’s portfolio is 100% invested in marijuana producers and distributors, and it can have exposure to companies outside of North America.

The HMJR portfolio recently expanded to include the following 12 constituents:

Company Name

Ticker

Exchange

Acreage Holdings Inc.

ACRG/U

Canadian Securities Exchange

Althea Group Holdings LTD.

AGH

Australian Securities Exchange

EXMceuticals

EXM

Canadian Securities Exchange

4Front Ventures Corp.

FFNT

Canadian Securities Exchange

The Flowr Corporation

FLWR

TSX Venture Exchange

Green Growth Brands Inc.

GGB

Canadian Securities Exchange

Integrated Cannabis Company Inc.

ICAN

Canadian Securities Exchange

Jushi Holdings Inc.

JUSH/B

AEQUITAS NEO

MPX International Corp.

MPXI

Canadian Securities Exchange

PharmaCielo Ltd.

PCLO

TSX Venture Exchange

Wildflower Brands Inc.

SUN

Canadian Securities Exchange

TerrAscend Corp.

TER

Canadian Securities Exchange

 

This quarter, the HMJR portfolio saw 12 cannabis companies added to its portfolio, including Althea Group Holdings, an Australian-based licensed producer,” said Mr. Hawkins. “HMJR continues to be a showcase of emerging cannabis companies within the growing global marijuana sector and highlights the potential for greater legalization opportunities, worldwide.”

Rebalancing of the Emerging Marijuana Growers Index, and consequently HMJR, occurs each calendar quarter. At that point, all stocks eligible for inclusion are generally re-weighted by their respective market capitalization. The holdings of HMJR and its current portfolio weights are regularly updated and available at http://www.HorizonsETFs.com/HMJR.

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 $10 billion of assets under management and 91 ETFs listed on major Canadian stock exchanges.

Commissions, management fees and applicable sales taxes all may be associated with an investment in the Horizons Marijuana Life Sciences Index ETF, Horizons US Marijuana Index ETF and Horizons Emerging Marijuana Growers Index ETF (the “ETFs”) are managed by Horizons ETFs Management (Canada) Inc. The ETFs are not guaranteed, their values changes frequently, and past performance may not be repeated. The prospectus contains important detailed information about the ETFs. Please read the prospectus before investing.

There are risks associated with HMUS. HMUS is expected to invest in the Marijuana industry in certain U.S. states that have legalized marijuana for therapeutic or adult-use, which is currently illegal under U.S. federal law. HMUS will passively invest in companies involved in the marijuana industry in the U.S. where local state law regulates and permits such activities, as well as in companies involved in the Canadian legal Marijuana industry. HMUS will not be directly engaged in the manufacture, importation, possession, use, sale or distribution of marijuana in either Canada or the U.S. Please read the full risk disclosure in the prospectus before investing.

 

SOURCE Horizons ETFs Management (Canada) Inc.

 

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For investor inquiries: Contact Horizons ETFs at 1-866-641-5739 (toll-free) or (416) 933-5745, [email protected]; For media inquiries: Contact Jonathan McGuire, External Communications Manager, Horizons ETFs Management (Canada) Inc., (416) 640-2956, [email protected] CNW Group 2019