Toronto-based Horizons ETFs Management (Canada) Inc. announced that it’s entering the marijuana space on Tuesday with the introduction of the first-ever ETF with “direct exposure” to cannabis stocks listed in North America.
Horizons Medical Marijuana Life Sciences, which will be listed as HMMJ on the Toronto Stock Exchange, invests in stocks tied to medical marijuana bioengineering and production.
“HMMJ is a way for investors to directly access the medical marijuana and life sciences industry through a transparent, low-cost ETF that holds a diversified basket of companies,” says Steve Hawkins, president and co-CEO of Horizons ETFs.
The ETF, which seeks to follow the lead of the North America medical marijuana index, will tap into a wide range of operations within the cannabis industry, from the manufacturing of medical marijuana to other “ancillary” businesses that have emerged.
Stocks eligible for inclusion will be restricted to those that “meet the minimum asset and liquidity thresholds,” and will be “rebalanced quarterly on a market-capitalization basis,” the statement says. Each stock will be subject to a 10% cap in terms of its weight in the index when rebalanced.
Units for HMMJ are expected to begin trading on April 5.
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