Horizons ETFs Rebalances Marijuana & Psychedelics-Focused Index ETFs

Published: October 26, 2021

Horizons ETFs Rebalances Marijuana & Psychedelics-Focused Index ETFs

Horizons ETFs Management (Canada) Inc. (“Horizons ETFs“) has completed the quarterly rebalances of the holdings of the Horizons Marijuana Life Sciences Index ETF (“HMMJ“: TSX), the Horizons US Marijuana Index ETF (“HMUS“: NEO) and the Horizons Psychedelic Stock Index ETF (“PSYK“: NEO).

HMMJ REBALANCE
HMMJ is the world’s first ETF to offer direct exposure to North American-listed securities having significant business activities in the marijuana industry. This quarter, five companies were added to HMMJ’s portfolio:

Additions

Company Name

Ticker

Exchange

Grove Inc.

GRVI

NASDAQ

India Globalization Capital

IGC

NYSE

IPower Inc.

IPW

NASDAQ

MYMD Pharmaceuticals Inc.

MYMD

NASDAQ

Power REIT

PW

NYSE

HMMJ is an index (or passively managed) ETF, which seeks to replicate, to the extent possible, the performance of the North American Marijuana Index (the “HMMJ Index“), net of expenses. The HMMJ 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 HMMJ 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.

“Devoid of momentum south of the border, the Canadian marijuana sector has largely languished, with valuations further exasperated by recent market volatility,” said Steve Hawkins, President and CEO of Horizons ETFs. “Within a more challenging business environment, Canada’s licensed producers are choosing to innovate, merge and consolidate, as well as pivot to more lucrative strategies and verticals. In time, these moves will likely serve to help affirm the stability and profitability of Canada’s marijuana sector.”

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

Performance Update as at September 30, 2021*

1
Month

3
Month

6
Month


YTD

1
Year

3
Year

Annualized Since
Inception**

HMMJ

-12.74%

-26.63%

-36.69%

-1.24%

36.21%

-27.06%

0.18%

Source: Bloomberg, as at September 30, 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 (the “HMUS Index“), net of expenses. This HMUS Index, which 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 five companies being added to the HMUS portfolio:

Company Name

Ticker

Exchange

Ceres Acquisition Corp.

CERE

NEO

Glass House Brands Inc.

GLAS

NEO

Grove Inc.

GRVI

NASDAQ

iAnthus Capital Holdings Inc.

IAN

CSE

India Globalization Capital

IGC

NYSE

“While it looks like America’s ‘marijuana moment’ won’t happen in 2021, there are still several initiatives underway that are paving the way for broader liberalization in the United States,” said Mr. Hawkins. “The latest Congressional approval of the SAFE Banking Act advances the bill to the U.S. Senate and if passed there, would allow cannabis companies to bank and publicly list on market exchanges in the United States, creating an incalculable opportunity for U.S. multi-state operators to scale-up within the country and become broadly accessible and investable for 330 million Americans.”

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

Performance Update as at September 30, 2021*

1
Month

3
Month

6
Month


YTD

1
Year

Annualized Since
Inception**

HMUS

-3.85%

-19.63%

-28.46%

-12.32%

45.59%

-20.83%

Source: Bloomberg, as at September 30, 2021. **Since HMUS’ inception on April 17, 2019.

PSYK REBALANCE
PSYK was the world’s first ETF to offer direct exposure to North American publicly listed securities that have significant business activities in the psychedelics industry. This quarter, one security was added to PSYK’s portfolio and the North American Psychedelics Index (the “PSYK Index“), as follows:

Company Name

Ticker

Exchange

PharmaTher Holdings Ltd.

PHRM

CSE

“From Elon Musk to governments across the globe, there is a growing awareness and acceptance of the therapeutic potential of psychedelics, which is leading to the dismantling of regulatory barriers that previously restricted clinical research and development of medical applications,” said Steve Hawkins, President and CEO of Horizons ETFs. “While the recent volatility is typically a factor within any emerging sector, the approval or licensing of a single psychedelic drug or therapy could ‘open the floodgates’ and result in a major boost for the industry at large.”

PSYK is an index (or passively managed) ETF, which seeks to replicate, to the extent possible and net of expenses, the performance of a market index that is designed to provide exposure to the performance of a basket of North American publicly-listed life sciences companies having significant business activities in, or significant exposure to, the psychedelics industry. Currently, the ETF seeks to replicate the performance of the PSYK Index, net of expenses. The PSYK Index is a proprietary index owned and operated by Horizons ETFs with Solactive AG as the independent calculation agent.

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

About Horizons ETFs Management (Canada) Inc. (www.HorizonsETFs.com)
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 $19 billion of assets under management and 98 ETFs listed on major Canadian stock exchanges.

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