Horizons ETFS Rebalances Marijuana-Focused Index ETF Suite

Ahead of the three-year anniversary of HMMJ, Horizons ETFs has completed its first marijuana ETFs rebalance of 2020

TORONTO, April 3, 2020 /CNW/ - 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 US Marijuana Index ETF ("HMUS":NEO).

HMMJ is the world's first ETF offering direct exposure to North American-listed securities that have significant business activities in the marijuana industry. This quarter, four constituents were removed from HMMJ's portfolio:

Deletions

Company Name	Ticker	Exchange
Abacus Health Products Inc.	ABCS	Canadian Securities Exchange
Agraflora Organics International Inc.	AGRA	Canadian Securities Exchange
Flower One Holdings Inc.	FONE	Canadian Securities Exchange
CBDMD Inc.	YCBD	New York Stock 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. Securities within HMMJ's index generally have a market capitalization of greater than CAD$75 million.

"Marijuana stocks declined significantly in the first quarter of 2020, alongside most other equities categories, but there has been a strong resurgence in valuations in the last couple of weeks," said Steve Hawkins, President and CEO of Horizons ETFs. "There is evidence of strong cannabis product sales despite non-essential business closures and government-imposed quarantines, which could give cannabis companies a stronger revenue outlook for Q2 2020."

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.

Performance Update as at March 31, 2020*

	1 Month	3 Month	6 Months	YTD	1 Year	Annualized Since Inception**
HMMJ	-15.28%	-28.36%	-45.68%	-28.36%	-69.05%	-9.55%
NAMMAR Index	-17.27%	-32.10%	-43.98%	-32.10%	-69.91%	-15.89%
TX60AR Index	-15.30%	-18.48%	-16.49%	-18.48%	-11.68%	-0.79%

Source: Bloomberg, as at March 31, 2020. ** Since HMMJ's inception on April 4, 2017.

 

HMUS REBALANCE

Launched in April 2019, 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 the removal of six companies from the portfolio:

Deletions

Company Name	Ticker	Exchange
Abacus Health Products Inc.	ABCS	Canadian Securities Exchange
Body & Mind Inc.	BAMM	Canadian Securities Exchange
Ignite International Brands	BILZ	Canadian Securities Exchange
Green Growth Brands Inc.	GGB	Canadian Securities Exchange
Plus Products Inc.	PLUS	Canadian Securities Exchange
CBDMD Inc.	YCBD	New York Stock Exchange

 

"Similar to the increased cannabis sales effect that we are seeing in Canada amid the COVID-19 pandemic, states that have legalized the sale and purchase of recreational and medical marijuana appear to be experiencing greater sales volume," said Mr. Hawkins.

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.

About Horizons ETFs Management (Canada) Inc. (www.HorizonsETFs.com)

Horizons ETFs Management (Canada) Inc. is an innovative financial services company that 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 $11 billion of assets under management and 91 ETFs listed on major Canadian stock exchanges.

Commissions, management fees and expenses all may be associated with an investment in exchange traded products (the "Horizons Exchange Traded Products") managed by Horizons ETFs Management (Canada) Inc. 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.

There are risks associated with this product. HMUS is expected to invest in the Marijuana industry in certain U.S. states that have legalized marijuana for therapeutic or adult-use, which is currently illegal under U.S. federal law. HMUS will passively invest in companies involved in the marijuana industry in the U.S. where local state law regulates and permits such activities, as well as in companies involved in the Canadian legal Marijuana industry. HMUS will not be directly engaged in the manufacture, importation, possession, use, sale or distribution of marijuana in either Canada or the U.S. Please read the full risk disclosure in the prospectus before investing.

SOURCE Horizons ETFs Management (Canada) Inc.

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