TORONTO – June 29, 2018 – 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. Once again, the ETF has added more 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 constituents:
|Hempco Food & Fiber||HEMP||TSX Venture Exchange|
|Lexaria Bioscience Corp.||LXX||Canadian Securities Exchange|
|Green Organic Dutchman||TGOD||Toronto Stock Exchange|
|Village Farms International||VFF||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 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.
“The HMMJ portfolio continues to grow as more companies achieve a size and scale that allows them to be eligible for inclusion in the North American Marijuana Index,” said Steve Hawkins, President and Co-CEO of Horizons ETFs. “Now that we have confirmed that the official start-date of recreational marijuana legalization will commence on October 17, 2018, we expect that more companies in Canada will continue to ramp-up their marijuana-focused activities over the next quarter.”
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 first 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 invests in smaller marketcapitalization companies than HMMJ, its portfolio is 100% invested in marijuana producers and distributors, and it can have exposure to companies outside of North America. In addition, HMMJ is listed on the Toronto Stock Exchange, while HMJR is listed on the NEO Exchange.
The HMJR portfolio recently expanded to include the following constituents:
|Heritage Cannabis Holdings||CANN||Canadian Securities Exchange|
|Supreme Cannabis Inc.||FIRE||TSX Venture Exchange|
|Invictus MD Strategies Corp.||GENE||TSX Venture Exchange|
|Golden Leaf Holdings Inc.||GLH||Canadian Securities Exchange|
|Newstrike Resources Ltd.||HIP||TSX Venture Exchange|
|Liberty Health Sciences Inc.||LHS||Canadian Securities Exchange|
|Matica Enterprises Inc.||MMJ||Canadian Securities Exchange|
|Friday Night Inc.||TGIF||Canadian Securities Exchange|
|THC Biomed Intl. Ltd.||THC||Canadian Securities Exchange|
HMJR also had to eliminate some holdings from its initial portfolio due to the fact they no longer qualify for index inclusion. They are:
|Canada House Wellness Group||CHV||Canadian Securities Exchange|
|Liberty Leaf Holdings Ltd.||LIB||Canadian Securities Exchange|
|Marapharm Ventures Inc.||MDM||Canadian Securities Exchange|
|PUF Ventures Inc.||PUF||Canadian Securities Exchange|
|Hydropothecary Corporation||HEXO||Toronto Stock Exchange|
“We would expect HMJR to have slightly higher turnover than HMMJ, since it can hold stocks with smaller market capitalizations, but it will also be required to sell stocks that exceed a certain market capitalization,” said Mr. Hawkins. “Companies that graduate out of HMJR could potentially be in the HMMJ portfolio, so between the two ETFs, investors would have a more comprehensive exposure to the investable universe of listed marijuana securities in Canada.”
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.
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 80 ETFs listed on major Canadian stock exchanges. Horizons ETFs Management (Canada) Inc. is a member of the Mirae Asset Global Investments Group.
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Contact Horizons ETFs at 1-866-641-5739 (toll-free) or (416) 933-5745
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Horizons ETFs Management (Canada) Inc.