Canada’s first small-cap marijuana ETF set to launch

Horizons ETFs has filed its final prospectus to launch the Horizons Emerging Marijuana Growers Index ETF.

Units of the ETF have been conditionally approved for listing and are slated to begin trading on the Aequitas NEO Exchange under the ticker symbol HMJR on or about Feb. 14, 2018.

Read: Advisors bullish on marijuana, financials, emerging markets: survey

The fund offers direct exposure to small-capitalization companies primarily involved in the cultivation, production or distribution of marijuana. It aims to replicate, to the extent possible, the performance of the Emerging Marijuana Growers Index, net of expenses.

Read: Small caps about more than cannabis in 2018

Stocks are rebalanced quarterly on a market-capitalization basis, and are capped so that no single stock can exceed 8% of the weight of the index when rebalanced.

While the fund is North American-focused, the index may include up to 20% issuers that are in developed markets outside North America. Any weight in excess of the 20% threshold allotted for non-North American issuers will be redistributed proportionally among North American index components with a weight less than 8%.

“The Horizons Marijuana Life Sciences Index ETF (HMMJ), which is also offered by our firm, has been one of the fastest-growing ETFs in Canada since its launch in April of last year,” says Steve Hawkins, president and co-CEO of Horizons ETFs, in a release. “With HMMJ offering investors broad diversified exposure to the marijuana sector and HMJR focusing on the smaller but emerging producers, investors should be able to access the full potential of the rapidly growing global marijuana equities sector.”

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.