Horizons ETFs Rebalances Cannabis-Focused Index ETFs

5.6 min readPublished On: March 29th, 2021By

TORONTO–Horizons ETFs Management (Canada) Inc. has completed the quarterly rebalances of the constituent holdings of the Horizons Marijuana Life Sciences Index ETF (TSX: HMMJ) and the Horizons US Marijuana Index ETF (NEO: HMUS).

HMMJ is the world’s first ETF that offered direct exposure to North American-listed securities having significant business activities in the marijuana industry. This quarter, 11 constituents were added to HMMJ’s portfolio:

Company Name Ticker Exchange
Agrify Corp. AGFY NASDAQ
Cardiol Therapeutics Inc. CRDL TSX
GrowGeneration Corp. GRWG NASDAQ
GTEC Holdings Ltd. GTEC TSX-V
Hydrofarm Holdings Group Inc. HYFM NASDAQ
Namaste Technologies Inc. N CV TSX-V
Rubicon Organics Inc. ROMJ TSX-V
Willow Biosciences Inc. WLLW TSX
WeedMD Inc. WMD TSX-V
XPhyto Therapeutics Corp. XPHY CSE
Zenabis Global Inc. ZENA TSX

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, which rebalances quarterly, has been 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 offerings of biopharmaceuticals, medical manufacturing, distribution, bio-products and other ancillary businesses related to the marijuana industry.

After the Canadian cannabis sector’s powerful resurgence in late 2020, all eyes were on the industry’s forward momentum into 2021,” said Steve Hawkins, President and CEO of Horizons ETFs. “We have continued to see strong sales momentum across the provinces and an increasingly competitive marketplace, as highlighted by the amount of new additions to HMMJ – all positive signs for the sector’s ongoing health.”

The holdings of HMMJ and its current portfolio weights are regularly updated and available at https://www.HorizonsETFs.com/HMMJ. It is important to note that HMMJ may not hold all of the constituent names in its index. Horizons ETFs, through the use of a stratified sampling strategy, may invest in securities that closely match the investment characteristics of HMMJ’s index, provided they are consistent with the ETF’s investment objectives and strategies.

Performance Update as at February 28, 2021*

1

Month

3

Month

6

Month

YTD 1

Year

3

Year

Annualized

Since

Inception**

HMMJ 14.43% 42.05% 95.61% 62.54% 89.75% -3.58% 13.84%
*Source: Bloomberg, as at February 28, 2021. **Since HMMJ’s inception on April 4, 2017.

HMUS REBALANCE

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, which also rebalances quarterly, has been designed to provide exposure to the performance of a basket of publicly listed companies with 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.

This rebalance resulted in 15 additions to the HMUS portfolio:

Company Name Ticker Exchange
Australis Capital Inc. AUSA CSE
Body & Mind Inc. BAMM CSE
Bluma Wellness Inc. BWEL CSE
Empower Clinics Inc. CBDT CSE
Centr Brands Corp. CNTR CSE
Flower One Holdings Inc. FONE CSE
Greenlane Holdings Inc. GNLN NASDAQ
Harborside Inc. HBOR CSE
High Tide Inc. HITI TSX-V
Juva Life Inc. JUVA CSE
Next Green Wave Holdings Inc. NGW CSE
Stem Holdings Inc. STEM CSE
Cansortium Inc. TIUM CSE
Vibe Growth Corp. VIBE CSE
Vireo Health International Inc. VREO CSE

“With key cannabis reform bills slated for introduction and voting in the coming months, 2021 might prove to be the year that defines marijuana legalization in the United States,” said Mr. Hawkins. “Following the recent passage of marijuana legalization in Mexico, the United States is now flanked on both its borders by countries with legal marijuana regimes. Not only could that create greater social and economic pressure for federal reform but it offers the multi-state operators additional markets for potential expansion once the opportunity is available.”

The holdings of HMUS and its current portfolio weights are regularly updated and available at https://www.HorizonsETFs.com/HMUS. HMUS may not hold all of the constituent names in its index. Horizons ETFs, through the use of a stratified sampling strategy, may invest in securities that closely match the investment characteristics of HMUS’ index, provided they are consistent with the ETF’s investment objectives and strategies.

Performance Update as at February 28, 2021*

1

Month

3

Month

6

Month

YTD 1

Year

Annualized Since

Inception**

HMUS 16.79% 46.74% 97.60% 38.07% 146.23% -6.19%
*Source: Bloomberg, as at February 28, 2021. **Since HMUS’ inception on April 17, 2019.

Forward looking statements

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

The indicated rates of return for HMMJ and HMUS 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. The ETFs are not guaranteed, their values change frequently, and past performance may not be repeated.

Certain statements may constitute a forward-looking statement, including those identified by the expression “expect” and similar expressions (including grammatical variations thereof). The forward-looking statements are not historical facts but reflect the author’s current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. These and other factors should be considered carefully and readers should not place undue reliance on such forward looking statements. These forward-looking statements are made as of the date hereof and the authors do not undertake to update any forward-looking statement that is contained herein, whether as a result of new information, future events or otherwise, unless required by applicable law.

There are risks associated with this product. 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.

(This information is primarily sourced from Horizons ETFs Management (Canada) Inc.  Highly Capitalized has neither approved nor disapproved the contents of this news release. Read our Disclaimer here)

About the Author: News Team

Newsteam at Highly Capitalized are some of the most experienced writers in cannabis and psychedelics business & finance. We cover capital markets, finance, branding, marketing and everything important in between. Most of all, we follow the money.

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