Toronto-based Horizons ETFs Management (Canada) Inc. has completed the quarterly rebalance of the constituent holdings in Horizons Marijuana Life Sciences Index ETF and Horizons Emerging Marijuana Growers Index ETF.
Horizons Marijuana Life Sciences Index ETF provides direct exposure to North American publicly listed life sciences companies with significant business activities in the marijuana industry. The index chooses companies that have operations that may include one or more of biopharmaceuticals, medical manufacturing, distribution, bio-products and other ancillary business related to the marijuana industry.
“The 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, in a statement. “Now that we have confirmed that the official start-date of recreational marijuana legalization will commence on Oct. 17, we expect that more companies in Canada will continue to ramp-up their marijuana-focused activities over the next quarter.”
Horizons ETFs also finished the first rebalance of the portfolio of Horizons Emerging Marijuana Growers Index ETF. The ETF seeks to replicate the performance of the emerging marijuana growers index. This index provides exposure to the performance of a basket of primarily North American publicly listed small-capitalization companies primarily involved in the cultivation, production and distribution of marijuana.
The ETF differs from Horizons Marijuana Life Sciences Index ETF in that it invests in smaller market-capitalization companies; its portfolio is 100% invested in marijuana producers and distributors and it can have exposure to companies outside of North America. Horizons Emerging Marijuana Growers Index ETF is listed on the Toronto Stock Exchange whereas Horizons Marijuana Life Sciences Index ETF is listed on the NEO Exchange.
“We would expect Horizons Emerging Marijuana Growers Index ETF to have slightly higher turnover than Horizons Marijuana Life Sciences Index ETF, since it can hold stocks with smaller market capitalizations, but it will also be required to cell stocks that exceed a certain market capitalization,” Hawkins said. “Companies that graduate out of Horizons Emerging Marijuana Growers Index ETF could potentially be in Horizons Marijuana Life Sciences Index ETF, so between the two ETFs, investors would have a more comprehensive exposure to the investable universe of listed marijuana securities in Canada.”