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Horizons ETFs Completes Rebalances of its Marijuana-focused ETFs

June 29, 2018

 

TORONTO, June 29, 2018 -- /D.M.O. Newswire/ -- Horizons ETFs Management (Canada) Inc. ("Horizons ETFs") has completed the quarterly rebalance of the constituent holdings of the Horizons Marijuana Life Sciences Index ETF ("HMMJ:TSX") and the Horizons Emerging Marijuana Growers Index ETF ("HMJR:NEO").

 

HMMJ is the world's first and largest ETF offering direct exposure to North American publicly listed life sciences companies with significant business activities in the marijuana industry. Once again, the ETF has added more companies to its portfolio as more firms have become eligible for inclusion in its underlying index – the North American Marijuana Index.

 

The HMMJ portfolio recently expanded to include the following constituents:

 

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 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 index selects from a current universe of companies that have operations that may include one or more of biopharmaceuticals, medical manufacturing, distribution, bio-products and other ancillary businesses related to the marijuana industry.

 

"The HMMJ portfolio continues to grow as more companies achieve a size and scale that allows them to be eligible for inclusion in the North American Marijuana Index," said Steve Hawkins, President and Co-CEO of Horizons ETFs. "Now that we have confirmed that the official start-date of recreational marijuana legalization will commence on October 17, 2018, we expect that more companies in Canada will continue to ramp-up their marijuana-focused activities over the next quarter."

 

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 weighted by their respective market capitalization. However, no single stock can exceed 10% of the weight of the index at the rebalance date. The holdings of HMMJ and its current portfolio weights are regularly updated on our website at www.HorizonsETFs.com/HMMJ.

 

HMJR Rebalance

 

Horizons ETFs also completed the first rebalance of the portfolio of HMJR. HMJR seeks to replicate, to the extent possible, the performance of the Emerging Marijuana Growers Index, net of expenses. This index is designed to provide exposure to the performance of a basket of primarily North American publicly listed small-capitalization companies primarily involved in the cultivation, production and/or distribution of marijuana.

 

HMJR has four key differences compared to HMMJ. HMJR invests in smaller market-capitalization companies than HMMJ, its portfolio is 100% invested in marijuana producers and distributors, and it can have exposure to companies outside of North America. In addition, HMMJ is listed on the Toronto Stock Exchange, while HMJR is listed on the NEO Exchange.

 

The HMJR portfolio recently expanded to include the following constituents:

 

 

HMJR also had to eliminate some holdings from its initial portfolio due to the fact they no longer qualify for index inclusion. They are:

 

 

"We would expect HMJR to have slightly higher turnover than HMMJ, since it can hold stocks with smaller market capitalizations, but it will also be required to sell stocks that exceed a certain market capitalization," said Mr. Hawkins. "Companies that graduate out of HMJR could potentially be in the HMMJ portfolio, so between the two ETFs, investors would have a more comprehensive exposure to the investable universe of listed marijuana securities in Canada."

 

It is important to note that both HMMJ and HMJR may not hold all of the constituent names in their respective indices. The manager of the ETFs, through the use of a stratified sampling strategy, may invest in securities that closely match the investment characteristics of the ETFs' respective indices, provided they are consistent with the ETFs' 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 more than $10 billion of assets under management and 80 ETFs listed on major Canadian stock exchanges. Horizons ETFs Management (Canada) Inc. is a member of the Mirae Asset Global Investments Group.

 

Horizons ETFs is a member of Mirae Asset Global Investments. Commissions, management fees and expenses all may be associated with an investment in exchange traded products managed by Horizons ETFs Management (Canada) Inc. (the "Horizons Exchange Traded Products"). The Horizons Exchange Traded Products are not guaranteed, their values change frequently and past performance may not be repeated. The prospectus contains important detailed information about the Horizons Exchange Traded Products. Please read the relevant prospectus before investing.

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