Horizons ETFs has filed its final prospectus to launch the Horizons Medical Marijuana Life Sciences ETF. Its units have been conditionally approved for listing by the TSX. Trading is set to begin April 5, under the symbol HMMJ, announced the company March 28.
It will be the first ETF to offer direct exposure to North American-listed stocks involved in marijuana bioengineering and production. It is an index ETF, aimed at replicating the performance of the North American Medical Marijuana Index, net of expenses.
A rapidly growing industry
"The medical marijuana industry is rapidly growing in North America as legislators allow or consider allowing more legal uses of marijuana and marijuana-related products, particularly medical marijuana usage," says Steve Hawkins, President and Co-CEO of Horizons ETFs. "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."
Hawkins expects to attract investors’ interest with the new offering. "Given the recent high returns generated by medical marijuana companies, investors are clearly attracted to the industry," says Hawkins. "We feel that the methodology of the North American Medical Marijuana Index will maximize the risk/reward opportunity for investors by ensuring the companies in the Index meet important liquidity and asset requirements, so that the stocks in the Index are the leaders in the Medical Marijuana industry."