Horizons ETFs to Launch World’s Very first U.S.-Focused Marijuana ETF
Horizons US Marijuana Index ETF will commence trading on April 18, 2019
TORONTO, April 15, 2019 /CNW/ – Horizons ETFs Management (Canada) Inc. (“Horizons ETFs”) is pleased to announce that it has filed its final prospectus to launch the Horizons US Marijuana Index ETF. Units of the exchange traded fund (“HMUS” or the “ETF”) have been conditionally authorized for listing by the NEO Exchange (“NEO”) and are slated to commence trading on April 18, 2019, beneath the ticker symbols HMUS (Canadian dollar units) and HMUS.U (U.S. dollar units).
HMUS will be the initial ETF in the planet that is solely focused on giving exposure to firms with important organization activities in, or important exposure to, the United States marijuana or hemp industries. HMUS is an index (or passively managed) ETF, which seeks to replicate, to the extent achievable, the efficiency of the US Marijuana Corporations Index (the “Underlying Index”), net of expenditures.
The ETF will make its units out there on NEO in each Canadian and U.S dollars.
When marijuana remains federally illegal for healthcare and recreational usage in the United States, the quantity of legal cultivators and distributors at the U.S. state level continues to develop. Lots of of these firms have selected Canadian stock exchanges to list their stocks in order to raise capital to meet increasing investor demand.
Steve Hawkins, President and CEO of Horizons ETFs
HMUS will be the initial index ETF resolution to concentrate solely on identifying, and investing straight in, U.S. marijuana and hemp firms. As the U.S. continues to additional liberalize its marijuana regulations, we anticipate that a lot more investors will be searching to invest in firms with important organization operations in the U.S. market place and HMUS will supply a diversified and liquid way to acquire that exposure in 1 ETF.
The Underlying Index is created to supply exposure to the efficiency of a basket of publicly-listed firms getting important organization activities in, or important exposure to, the marijuana or hemp industries in the United States. Constituent firms will mainly contain these with organization activities as a producer, developer, or supplier of marijuana or hemp-primarily based goods, and can also contain investment firms focused on investments in the Marijuana or Hemp industries, or firms with organizations ancillary to the Marijuana or Hemp industries.
Constituents of the Underlying Index are chosen from Canadian and U.S. exchanges. When some securities may well be listed on significant North American exchanges, the majority of the securities presently trade on North American exchanges that contain but are not restricted to the Canadian Securities Exchange and NEO.
The Underlying Index is market place-capitalization-weighted, topic to a cap for every single constituent issuer of a maximum of 10% of the net asset worth of the Underlying Index at the time of any rebalance. For a safety to be eligible for the Underlying Index, the issuer will typically require to have a market place capitalization of higher than $75 million.
The top rated-20 constituents and weights of the Underlying Index as at April 15, 2019, are in the table under. Please note that the weights of the Underlying Index and the actual portfolio weights of HMUS could be distinctive. Horizons ETFs will not invest the assets of HMUS on a discretionary basis except to the extent it may well pick securities of issuers in the course of employing a stratified sampling method to seek to closely match the investment qualities of the Underlying Index.
Only stocks that meet minimum size and liquidity thresholds are eligible for inclusion in the Underlying Index. The composition of the Underlying Index is rebalanced at least quarterly on a market place-capitalization basis, and capped so that no single stock can exceed 10% of the weight of the Underlying Index when rebalanced. Additional facts about the Underlying Index is out there at site at www.solactive.com.
“The Horizons Marijuana Life Sciences Index ETF (HMMJ) was the initial Marijuana ETF listed in the planet. We launched that ETF shortly just before cannabis was completely legalized in Canada,” stated Mr. Hawkins. “We see a lot of similarities with the regulatory atmosphere in the U.S. to what we saw in Canada, 3 years ago. If the U.S. have been to enact any sort of federal legalization, either healthcare or recreational, that would promptly make the U.S. the biggest federally authorized cannabis market place in the planet. HMUS will give investors direct diversified access to this early stage sector which has the possible of future U.S. regulatory modify.”
HMUS will close the initial providing of units to its designated broker immediately after the close of organization on April 17, 2019, prior to its initial listing of units on NEO on April 18, 2019.
About Horizons ETFs Management (Canada) Inc. (www.HorizonsETFs.com)
Horizons ETFs is an revolutionary monetary solutions corporation and provides 1 of the biggest suites of exchange traded funds in Canada. The Horizons ETFs item loved ones incorporates a broadly diversified variety of options for investors of all encounter levels to meet their investment objectives in a range of market place circumstances. Horizons ETFs has a lot more than $10 billion of assets beneath management and 87 ETFs listed on significant Canadian stock exchanges. Horizons ETFs is a member of the Mirae Asset Worldwide Investments Group.
Original press release
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