Auxly Added To HMMJ ETF
Horizons completes rebalance of marijuana ETFs
2018-12-27 18:16 AT - News Release
Also News Release (C-HMJR) Horizons Emerging Marijuana Growers Index ETF
Mr. Jonathan McGuire reports
HORIZONS ETFS REBALANCES ITS MARIJUANA-FOCUSED FUNDS
Horizons ETFs Management (Canada) Inc. has completed the quarterly rebalance of the constituent holdings of the Horizons Marijuana Life Sciences Index ETF (HMMJ) and the Horizons Emerging Marijuana Growers Index ETF (HMJR).
HMMJ rebalance
HMMJ is the world's first ETF offering direct exposure to North American-listed securities that are involved with marijuana bioengineering and production. Once again, the ETF has added additional 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 constituents in the attached table.
Name Ticker Exchange Khiron Life Sciences Corp. KHRN TSX Venture Exchange MediPharm Labs Corp. LABS TSX Venture Exchange Auxly Cannabis Group XLY TSX Venture Exchange
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 North American Marijuana Index selects from a current universe of companies that have operations that may include one or more of biopharmaceuticals, medical manufacturing, distribution, bioproducts and other ancillary businesses related to the marijuana industry.
"This has been a difficult quarter for the marijuana sector, and the slowdown in growth contributed to fewer names being added to HMMJ's portfolio," said Steve Hawkins, president and chief executive officer of Horizons ETFs. "Long term, we believe there are still quite a few drivers of growth for the sector, including the growth of global medical marijuana opportunity and continued liberalization of marijuana laws in the [United States]. Both of these factors could help drive marijuana stocks further in 2019."
Rebalancing of the North American Marijuana Index, and consequently HMMJ, occurs each calendar quarter. At that point, all stocks eligible for inclusion are weighted by their respective market capitalization. However, no single stock can exceed a 10-per-cent weight of the North American Marijuana Index at the rebalance date. The holdings of HMMJ and its current portfolio weights are regularly updated and available on the Horizons ETFs website.
HMJR rebalance
Horizons ETFs also completed the 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. The Emerging Marijuana Growers 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.
In addition to tracking a separate index, HMJR has four key differences compared with HMMJ. HMJR invests in smaller-market-capitalization companies than HMMJ, its portfolio is 100 per cent 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 constituents in the attached table.
Name Ticker Exchange FSD Pharma Inc. HUGE Canadian Securities Exchange Harvest Health & Recreation HARV Canadian Securities Exchange Emerald Health Therapeutics EMH TSX Venture Exchange Neptune Wellness Solutions NEPT Toronto Stock Exchange Elixinol Global Ltd. EXL Australian Stock Exchange Trulieve Cannabis Corp. TRUL Canadian Securities Exchange Eve & Co. Inc. EVE TSX Venture Exchange Rubicon Organics Inc. ROMJ Canadian Securities Exchange Heritage Cannabis Holdings Corp. CANN Canadian Securities Exchange Biome Grow Inc. BIO Canadian Securities Exchange GTEC Holdings Ltd. GTEC TSX Venture Exchange
The holdings of HMJR and its current portfolio weights are regularly updated and available on the Horizons ETFs website. 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.
Horizons ETFs Management (Canada) 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 $9.5-billion of assets under management and 85 ETFs listed on major Canadian stock exchanges.