Horizons ETFs Rebalances Marijuana-Focused Index ETF Suite

Published: July 13, 2020

Horizons ETFs Rebalances Marijuana-Focused Index ETF Suite

Horizons ETFs Management (Canada) Inc. has completed the quarterly rebalance of the constituent holdings of the Horizons Marijuana Life Sciences Index ETF and the Horizons US Marijuana Index ETF.

HMMJ is the world’s first ETF that offered direct exposure to businesses with activities in the marijuana industry. This quarter, two constituents were added to HMMJ’s portfolio:

Additions

Company Name

Ticker

Exchange

Agraflora Organics International Inc.

AGRA

Canadian Securities Exchange

CBDMD Inc.

YCBD

New York Stock Exchange

HMMJ 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 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. Securities within HMMJ’s index generally have a market capitalization of greater than C$75 million.

“Following volatility that impacted nearly all asset classes across global markets in March, marijuana companies saw a strong recovery in the first two months of Q2 2020. HMMJ was up more than 15% for the three months ending at June 30, 2020,” said Steve Hawkins, President and CEO of Horizons ETFs. “While there is volatility within the marijuana space again, the investing case remains strong: after Canadian adult-use cannabis sales set new record highs in March they remained consistently strong into April, reaching over $180 million.”

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 generally re-weighted by their respective market capitalization.

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 may, through the use of a stratified sampling, invest HMMJ in securities that closely match the investment characteristics of its index, provided they are consistent with the ETF’s investment objectives and strategies.

Performance Update as at June 30, 2020*

1
Month

3
Month

6
Months

YTD

1
Year

3
Year

Annualized Since
Inception**

HMMJ

-8.00%

15.59%

-17.19%

-17.19%

-58.16%

0.38%

-4.68%

NAMMAR Index

-8.51%

21.79%

-17.31%

-17.31%

-56.38%

-4.35%

-9.42%

 Source: Bloomberg, as at June 30, 2020. **Since HMMJ’s inception on April 4, 2017.

ABOUT HMUS

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 is designed to provide exposure to the performance of a basket of publicly-listed companies having 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. While some securities may be listed on major North American exchanges, the majority of the securities currently trade on North American exchanges that include but are not limited to the Canadian Securities Exchange and the Aequitas NEO Exchange.

This rebalance resulted in one addition and one removal from the portfolio:

Additions

Company Name

Ticker

Exchange

CBDMD Inc.

YCBD

New York Stock Exchange

Deletions

Company Name

Ticker

Exchange

Halo Labs Inc.

HALO

Aequitas NEO Exchange

“Similar to what we saw in Canada during Q2 2020, U.S. cannabis companies, as represented by HMUS, saw strong investor conviction in April and May, while June saw the return of volatility,” said Mr. Hawkins. “However, with new polls suggesting the likelihood of a Democrat victory in November, there may be a new surge in optimism for reformative political change on the issue of federal illegality of cannabis in the U.S., which could again bolster U.S. marijuana companies.”

Rebalancing of the US Marijuana Companies Index, and consequently HMUS, occurs each calendar quarter. At that point, all stocks eligible for inclusion in the index are generally re-weighted by their respective market capitalization.

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

Performance Update as at June 30, 2020*

1
Month

3
Month

6
Months

YTD

1
Year

Annualized Since
Inception**

HMUS

-12.08%

23.80%

-27.90%

-27.90%

-57.19%

-60.26%

US Marijuana Companies Index

-12.40%

22.99%

-29.71%

-29.71%

-59.18%

-61.93%

Source: Bloomberg, as at June 30, 2020. **Since HMUS’ inception on April 17, 2019.

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 over $13.5 billion of assets under management and 92 ETFs listed on major Canadian stock exchanges.