Steven Hawkins, president & co-CEO of Horizons ETFs, thinks the cannabis industry is on fire. Good thing for investors, Horizons has a cannabis ETF...
Horizons ETFs, the ETF sponsor behind the Horizons Marijuana Life Sciences ETF (TSX:HMMJ) (OTC:HMLSF), has been gathering substantial AUM thanks to the buzz around the cannabis industry. In his recent video interview with Bloomberg, Hawkins said that he expects HMMJ's assets under management to keep climbing despite the recent launch of MJX, a competing cannabis ETF, on the NYSE.
HMMJ Predictions for 2018
As of January 15th, HMMJ has $687,914,646 CAD in net assets. While HMMJ has raised "almost $800 million in the past eight months," Hawkins says there's several analysts that predict the fund will be managing "well over $1 billion by the end of this month.
When asked about Jeff Sessions' recent decision to rescind the Cole memo, Hawkins seems unworried. Since most of the ETF's underlying holdings are Canadian companies, "the Cole memo doesn't affect them." Beyond the ETF's limited exposure to the United States, the fact that the investor base is primarily Canadian further adds to the HMMJ bullishness.
As Canada quickly positions itself to be the world leader in cannabis, it's no wonder Canadians are seeking to gain exposure to a diversified basket of pot stocks.
ETF Competition is Coming
Competition for cannabis investors' assets has been heating up. As previously mentioned, ETF Managers Group LLC launched the ETFMG Alternative Harvest ETF (NYSE:MJX) in December, and now there's a preliminary prospectus filed for Canada's first actively managed cannabis ETF.
These funds are in addition to the first and only marijuana-focused mutual fund that's been around for years. Just wait until there are as many marijuana ETFs as there are biotech ETFs!
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