Horizons Emerging Marijuana Growers Index ETF provides exposure to burgeoning marijuana-producer stocks
TORONTO – February 14, 2018 – Horizons ETFs Management (Canada) Inc. (“Horizons ETFs”) is pleased to announce the launch of the Horizons Emerging Marijuana Growers Index ETF (“HMJR”). Units of the exchange traded fund (“ETF”) will begin trading today on the Aequitas NEO Exchange (“NEO Exchange”) under the ticker symbol HMJR.
HMJR seeks to replicate, to the extent possible, the performance of the Emerging Marijuana Growers Index (the “Index”), net of expenses. The Index was designed to provide exposure to the performance of a basket of primarily North American publicly-listed, small-capitalization companies, primarily focused on the cultivation, production and/or distribution of marijuana. Stocks within the Index generally must have a market capitalization greater than $50 million but less than $500 million for initial inclusion.
“HMJR is the first ETF in Canada to give investors direct exposure to blossoming smaller-cap marijuana cultivation and distribution companies,” said Steve Hawkins, President and Co-CEO of Horizons ETFs. “We believe the companies poised to benefit the most from the rapidly expanding legalization of marijuana globally, particularly in the recreational markets of Canada and certain U.S. states, are the growers and cultivators of the product.”
Stocks in the Index are rebalanced quarterly on a market-capitalization basis, and are capped so that no single stock can exceed 8% of the weight of the Index when rebalanced. While HMJR is North American-focused, the Index may include up to 20% issuers that are in developed markets outside North America. Any weight in excess of the 20% threshold allotted for non-North American issuers will be redistributed proportionally among North American Index components with a weight less than 8%.
HMJR is Horizons ETFs’ second marijuana-focused ETF. Last April, the firm launched the world’s first marijuana ETF – the Horizons Marijuana Life Sciences Index ETF (HMMJ) broadly considered by ETF analysts as Canada’s best ETF launch of 2017. “HMMJ gives investors broad diversified exposure to the Marijuana sector, while HMJR provides more direct, often referred to as ‘pure-play’ exposure to the sector, by focusing on the smaller, emerging producers,” Mr. Hawkins explained. “Another key difference is HMJR will directly invest in companies that have U.S. marijuana operations.”
HMJR has closed its initial offering of units and will begin trading on the NEO Exchange when the market opens this morning.