Canadian firm launches marijuana-focused ETF

Canadian investment firm Horizon ETFs Management has listed the Horizons Medical Marijuana Life Sciences ETF (HMMJ) on the Canadian National Stock Exchange as well as on the Nasdaq Capital Market.

The ETF which has an annual management fee of 0.75% seeks to replicate the performance of the North American Medical Marijuana Index, net of expenses.

The North American Medical Marijuana Index provides exposure to the performance of a basket of North American listed life sciences companies with significant business activities in the marijuana industry.

The six first holdings of the Horizons Medical Marijuana Life Sciences ETF at launch include Aurora Cannabis, Aphria, Insys Therapeutics, Scotts Miracle, Canopy Growth and GW Pharmaceuticals, each representing a 10% share of the ETF.

The portfolio will be rebalanced quarterly. It will only be invested in public companies that are involved in legal and regulated segments of the marijuana industry.

Horizons ETFs Management highlighted a strong growth potential in the North American medical marijuana market that has recorded revenues of $6.7bn in 2016, up 30% year-on-year.

Earlier this year, US based ETF Managers Group launches the Emerging AgroSphere ETF on NYSE Arca, that provides investors with exposure to companies making prescription drugs using cannabis extracts, selling hemp derivatives and other related stocks.

Adrien Paredes-Vanheule
Adrien Paredes-Vanheule is French-Speaking Europe Correspondent for InvestmentEurope, covering France, Belgium, Geneva and Monaco. Prior to joining InvestmentEurope, he spent almost five years writing for various publications in Monaco, primarily as a criminal and financial court reporter. Before that, he worked for newspapers and radio stations in France, in particular in Lyon.

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