Horizons ETFs Rebalances Marijuana-Focused Index ETF Suite

Horizons ETFs has completed its final marijuana ETFs rebalance of 2019

TORONTO, Dec. 30, 2019 /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), the Horizons US Marijuana Index ETF ("HMUS":NEO) and the Horizons Emerging Marijuana Growers Index ETF ("HMJR":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. Amid contraction within the marijuana sector, seven constituents were removed from HMMJ's portfolio:

Deletions

Company Name	Ticker	Exchange
Heritage Cannabis Holdings Corp	CANN	Canadian Securities Exchange
Emerald Health Therapeutics	EMH	TSX Venture Exchange
Eve & Co Inc	EVE	TSX Venture Exchange
Fsd Pharma Inc	HUGE	Canadian Securities Exchange
48North Cannabis Corp	NRTH	TSX Venture Exchange
Radient Technologies Inc	RTI	TSX Venture Exchange
Zenabis Global Inc	ZENA	Toronto 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.

"The performance of the Marijuana sector in Q4 was quite disappointing. As a result, the market capitalization of a number of HMMJ's holdings fell below their minimum inclusion threshold, leading to their removal from the index and the ETF," said Steve Hawkins, President and CEO of Horizons ETFs. "Within HMMJ's portfolio, this has resulted in the survival of the fittest: HMMJ's holdings are now more concentrated on companies that are maintaining a strong position within the cannabis industry, despite difficult market conditions."

Rebalancing of the North American Marijuana Index, and consequently HMMJ, occurs each calendar quarter. At that point, all stocks eligible for inclusion 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 December 20, 2019*

	1 Month	3 Month	6 Months	YTD	1 Year	Annualized Since Inception**
HMMJ	-4.48%	-34.28%	-51.52%	-34.71%	-34.76%	0.73%
NAMMAR Index	-5.77%	-32.43%	-51.08%	-34.51%	-34.55%	-6.26%
TX60AR Index	0.58%	1.77%	4.58%	22.52%	23.95%	7.08%

 

* Source: Bloomberg, as at December 20, 2019. ** Since HMMJ's inception on April 4, 2017.

The indicated rates of return are the historical annual compounded total returns, including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. Additionally, index returns do not take into account management, operating or trading expenses that may be incurred in replicating the index. The rates of return above are not indicative of future returns. ETFs are not guaranteed, their values change frequently, and past performance may not be repeated. The indices are not directly investible.

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 seven companies:

Deletions

Company Name	Ticker	Exchange
Chemesis International Inc	CSI	Canadian Securities Exchange
Dixie Brands Inc	DIXI	Canadian Securities Exchange
4front Ventures Corp	FFNT	Canadian Securities Exchange
High Tide Inc	HITI	Canadian Securities Exchange
Rubicon Organics Inc	ROMJ	Canadian Securities Exchange
Sol Global Investments Corp	SOL	Canadian Securities Exchange
1933 Industries Inc	TGIF	Canadian Securities Exchange

 

"We continue to believe that the United States has the potential be the world's largest cannabis market from an investment perspective," said Mr. Hawkins. "Several instances of key federal and state-level legislation have signalled progress on greater cannabis liberalization in the country, including the SAFE Banking Act, the MORE Act, and the legalization of recreational cannabis in Illinois. We are optimistic about what's in store for the United States' cannabis sector in 2020."

Rebalancing of the US Marijuana Companies Index, and consequently HMUS, occurs each calendar quarter. At that point, all stocks eligible for inclusion 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.

HMJR REBALANCE

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 invests in companies with market capitalizations generally between CAD $50 million and CAD $500 million. The ETF's portfolio is 100% invested in marijuana producers and distributors, and it can have exposure to companies outside of North America.

The HMJR portfolio recently expanded to include the following eight constituents:

Additions

Company Name	Ticker	Exchange
Ayr Strategies Inc	AYR.A	Canadian Securities Exchange
C21 Investments Inc	CXXI	Canadian Securities Exchange
Ianthus Capital Holdings Inc	IAN	Canadian Securities Exchange
Medmen Enterprises Inc	MMEN	Canadian Securities Exchange
Cannaroyalty Corp	OH	Canadian Securities Exchange
Seach Medical Group Ltd	SEMG	Tel Aviv Stock Exchange
Sundial Growers Inc	SNDL	NASDAQ
Green Organic Dutchman Holdings	TGOD	Toronto Stock Exchange

 

The following 20 companies were removed from HMJR's portfolio on this rebalance:

Deletions

Company Name	Ticker	Exchange
Choom Holdings Inc	CHOO	Canadian Securities Exchange
Creso Pharma Ltd	CPH	Australian Securities Exchange
Chemesis International Inc	CSI	Canadian Securities Exchange
Dixie Brands Inc	DIXI	Canadian Securities Exchange
Delta 9 Cannabis Inc	DN	Toronto Stock Exchange
Emerald Health Therapeutics	EMH	TSX Venture Exchange
Eve & Co Inc	EVE	TSX Venture Exchange
Exmceuticals Inc	EXM	Canadian Securities Exchange
FSD Pharma Inc	HUGE	Canadian Securities Exchange
Harvest One Cannabis Inc	HVT	TSX Venture Exchange
Integrated Cannabis Co Inc	ICAN	Canadian Securities Exchange
James E Wagner Cultivation Cor	JWCA	TSX Venture Exchange
Mjardin Group Inc	MJAR	Canadian Securities Exchange
Mgc Pharmaceuticals Ltd	MXC	Australian Securities Exchange
Ravenquest Biomed Inc	RQB	Canadian Securities Exchange
Sunniva Inc	SNN	Canadian Securities Exchange
Sproutly Canada Inc	SPR	Canadian Securities Exchange
Wildflower Brands Inc	SUN	Canadian Securities Exchange
THC Global Group Ltd	THC	Australian Securities Exchange
Westleaf Inc	WL	TSX Venture Exchange

 

Rebalancing of the Emerging Marijuana Growers Index, and consequently HMJR, occurs each calendar quarter. At that point, all stocks eligible for inclusion are generally re-weighted by their respective market capitalization. The holdings of HMJR and its current portfolio weights are regularly updated and available at https://www.HorizonsETFs.com/HMJR.

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 approximately $10 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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