Toronto-based Horizons ETFs newest ETF, the Horizons Medical Marijuana Life Sciences ETF, began trading today on the Toronto Stock Exchange, under the ticker symbol HMMJ.
It is the first ETF in the world that provides direct exposure to shares of companies listed in North America in the field of medical marijuana bioengineering and production. HMMJ is a passively managed ETF that will seek to replicate, as closely as possible, the performance of the North American Medical Marijuana Index, on a net of expenses basis. The index represents exposure to a basket of North American companies that have significant involvement in the clinical marijuana business.
“The medical marijuana industry is rapidly growing in North America as legislators allow or consider allowing more legal uses of marijuana and marijuana-related products, particularly medical marijuana usage,” said Steve Hawkins, President and Co-CEO of Horizons ETFs. “HMMJ is a way for investors to directly access the medical marijuana and life sciences industry through a transparent, low-cost ETF that holds a diversified basket of companies."
“Given the recent high returns generated by medical marijuana companies, investors are clearly attracted to the industry,” said Mr. Hawkins. “We feel that the methodology of the North American Medical Marijuana Index will maximize the risk/reward opportunity for investors by ensuring the companies in the Index meet important liquidity and asset requirements, so that the stocks in the Index are the leaders in the Medical Marijuana industry.”
The new ETF will be well diversified, offering investors a way of participating in the high-growth marijuana industry, it plans to include the flexibility of including more companies as recreational marijauna use is legalized. Horizons ETFs believes the industry will benefit from mergers and acquisition activity as the industry matures, and will also include a strong focus on Canadian producers.
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