Horizons ETFs has completed its final marijuana ETFs
rebalance of 2019
TORONTO, Dec. 30, 2019 /CNW/ - Horizons ETFs
Management (Canada) Inc.
("Horizons ETFs") has completed the quarterly rebalance of
the constituent holdings of the Horizons Marijuana Life
Sciences Index ETF ("HMMJ":TSX), the Horizons US
Marijuana Index ETF ("HMUS":NEO) and the Horizons
Emerging Marijuana Growers Index ETF ("HMJR":NEO).
HMMJ is the world's first ETF offering direct exposure to North
American-listed securities that have significant business
activities in the marijuana industry. Amid contraction within the
marijuana sector, seven constituents were removed from HMMJ's
portfolio:
Deletions
Company
Name
|
Ticker
|
Exchange
|
Heritage Cannabis
Holdings Corp
|
CANN
|
Canadian Securities
Exchange
|
Emerald Health
Therapeutics
|
EMH
|
TSX Venture
Exchange
|
Eve & Co
Inc
|
EVE
|
TSX Venture
Exchange
|
Fsd Pharma
Inc
|
HUGE
|
Canadian Securities
Exchange
|
48North Cannabis
Corp
|
NRTH
|
TSX Venture
Exchange
|
Radient Technologies
Inc
|
RTI
|
TSX Venture
Exchange
|
Zenabis Global
Inc
|
ZENA
|
Toronto Stock
Exchange
|
HMMJ is an index (or passively managed) ETF, which seeks to
replicate, to the extent possible, the performance of the North
American Marijuana Index, net of expenses. This index is designed
to provide exposure to the performance of a basket of North
American publicly listed life sciences companies with significant
business activities in the marijuana industry. The North American
Marijuana Index selects from a current universe of companies that
have operations that may include one or more of biopharmaceuticals,
medical manufacturing, distribution, bioproducts and other
ancillary businesses related to the marijuana industry. Securities
within HMMJ's index generally have a market capitalization of
greater than CAD $75 million.
"The performance of the Marijuana sector in Q4 was quite
disappointing. As a result, the market capitalization of a number
of HMMJ's holdings fell below their minimum inclusion threshold,
leading to their removal from the index and the ETF," said
Steve Hawkins, President and CEO of
Horizons ETFs. "Within HMMJ's portfolio, this has resulted in
the survival of the fittest: HMMJ's holdings are now more
concentrated on companies that are maintaining a strong position
within the cannabis industry, despite difficult market
conditions."
Rebalancing of the North American Marijuana Index, and
consequently HMMJ, occurs each calendar quarter. At that point, all
stocks eligible for inclusion are generally re-weighted by their
respective market capitalization. The holdings of HMMJ and its
current portfolio weights are regularly updated and available
at https://www.HorizonsETFs.com/HMMJ.
Performance Update as at December 20,
2019*
|
1
Month
|
3
Month
|
6
Months
|
YTD
|
1
Year
|
Annualized
Since Inception**
|
HMMJ
|
-4.48%
|
-34.28%
|
-51.52%
|
-34.71%
|
-34.76%
|
0.73%
|
NAMMAR
Index
|
-5.77%
|
-32.43%
|
-51.08%
|
-34.51%
|
-34.55%
|
-6.26%
|
TX60AR
Index
|
0.58%
|
1.77%
|
4.58%
|
22.52%
|
23.95%
|
7.08%
|
* Source: Bloomberg, as at December 20,
2019. ** Since HMMJ's inception on April 4, 2017.
The indicated rates of return are the historical annual
compounded total returns, including changes in unit value and
reinvestment of all distributions and do not take into account
sales, redemption, distribution or optional charges or income taxes
payable by any securityholder that would have reduced returns.
Additionally, index returns do not take into account management,
operating or trading expenses that may be incurred in replicating
the index. The rates of return above are not indicative of future
returns. ETFs are not guaranteed, their values change frequently,
and past performance may not be repeated. The indices are not
directly investible.
HMUS REBALANCE
Launched in April 2019, HMUS is
the world's first U.S.-focused marijuana index ETF.
HMUS seeks to replicate, to the extent possible, the performance
of the US Marijuana Companies Index, net of expenses. This index is
designed to provide exposure to the performance of a basket of
publicly-listed companies having significant business activities
in, or significant exposure to, the marijuana or hemp industries in
the United States. Constituents of
this index are selected from Canadian and U.S. exchanges. While
some securities may be listed on major North American exchanges,
the majority of the securities currently trade on North American
exchanges that include but are not limited to the Canadian
Securities Exchange and the Aequitas NEO Exchange.
This rebalance resulted in the removal of seven companies:
Deletions
Company
Name
|
Ticker
|
Exchange
|
Chemesis
International Inc
|
CSI
|
Canadian Securities
Exchange
|
Dixie Brands
Inc
|
DIXI
|
Canadian Securities
Exchange
|
4front Ventures
Corp
|
FFNT
|
Canadian Securities
Exchange
|
High Tide
Inc
|
HITI
|
Canadian Securities
Exchange
|
Rubicon Organics
Inc
|
ROMJ
|
Canadian Securities
Exchange
|
Sol Global
Investments Corp
|
SOL
|
Canadian Securities
Exchange
|
1933 Industries
Inc
|
TGIF
|
Canadian Securities
Exchange
|
"We continue to believe that the
United States has the potential be the world's largest
cannabis market from an investment perspective," said Mr.
Hawkins. "Several instances of key federal and state-level
legislation have signalled progress on greater cannabis
liberalization in the country, including the SAFE Banking Act, the
MORE Act, and the legalization of recreational cannabis in
Illinois. We are optimistic about
what's in store for the United
States' cannabis sector in 2020."
Rebalancing of the US Marijuana Companies Index, and
consequently HMUS, occurs each calendar quarter. At that point, all
stocks eligible for inclusion are generally re-weighted by their
respective market capitalization. The holdings of HMUS and its
current portfolio weights are regularly updated and available
at https://www.HorizonsETFs.com/HMUS.
HMJR REBALANCE
HMJR seeks to replicate, to the extent possible, the performance
of the Emerging Marijuana Growers Index, net of expenses. This
index is designed to provide exposure to the performance of a
basket of primarily North American publicly-listed
small-capitalization companies primarily involved in the
cultivation, production and/or distribution of marijuana.
HMJR invests in companies with market capitalizations generally
between CAD $50 million and CAD
$500 million. The ETF's portfolio is
100% invested in marijuana producers and distributors, and it can
have exposure to companies outside of North America.
The HMJR portfolio recently expanded to include the following
eight constituents:
Additions
Company
Name
|
Ticker
|
Exchange
|
Ayr Strategies
Inc
|
AYR.A
|
Canadian Securities
Exchange
|
C21 Investments
Inc
|
CXXI
|
Canadian Securities
Exchange
|
Ianthus Capital
Holdings Inc
|
IAN
|
Canadian Securities
Exchange
|
Medmen Enterprises
Inc
|
MMEN
|
Canadian Securities
Exchange
|
Cannaroyalty
Corp
|
OH
|
Canadian Securities
Exchange
|
Seach Medical Group
Ltd
|
SEMG
|
Tel Aviv Stock
Exchange
|
Sundial Growers
Inc
|
SNDL
|
NASDAQ
|
Green Organic
Dutchman Holdings
|
TGOD
|
Toronto Stock
Exchange
|
The following 20 companies were removed from HMJR's portfolio on
this rebalance:
Deletions
Company
Name
|
Ticker
|
Exchange
|
Choom Holdings
Inc
|
CHOO
|
Canadian Securities
Exchange
|
Creso Pharma
Ltd
|
CPH
|
Australian Securities
Exchange
|
Chemesis
International Inc
|
CSI
|
Canadian Securities
Exchange
|
Dixie Brands
Inc
|
DIXI
|
Canadian Securities
Exchange
|
Delta 9 Cannabis
Inc
|
DN
|
Toronto Stock
Exchange
|
Emerald Health
Therapeutics
|
EMH
|
TSX Venture
Exchange
|
Eve & Co
Inc
|
EVE
|
TSX Venture
Exchange
|
Exmceuticals
Inc
|
EXM
|
Canadian Securities
Exchange
|
FSD Pharma
Inc
|
HUGE
|
Canadian Securities
Exchange
|
Harvest One Cannabis
Inc
|
HVT
|
TSX Venture
Exchange
|
Integrated Cannabis
Co Inc
|
ICAN
|
Canadian Securities
Exchange
|
James E Wagner
Cultivation Cor
|
JWCA
|
TSX Venture
Exchange
|
Mjardin Group
Inc
|
MJAR
|
Canadian Securities
Exchange
|
Mgc Pharmaceuticals
Ltd
|
MXC
|
Australian Securities
Exchange
|
Ravenquest Biomed
Inc
|
RQB
|
Canadian Securities
Exchange
|
Sunniva
Inc
|
SNN
|
Canadian Securities
Exchange
|
Sproutly Canada
Inc
|
SPR
|
Canadian Securities
Exchange
|
Wildflower Brands
Inc
|
SUN
|
Canadian Securities
Exchange
|
THC Global Group
Ltd
|
THC
|
Australian Securities
Exchange
|
Westleaf
Inc
|
WL
|
TSX Venture
Exchange
|
Rebalancing of the Emerging Marijuana Growers Index, and
consequently HMJR, occurs each calendar quarter. At that point, all
stocks eligible for inclusion are generally re-weighted by their
respective market capitalization. The holdings of HMJR and its
current portfolio weights are regularly updated and available
at https://www.HorizonsETFs.com/HMJR.
About Horizons ETFs Management (Canada) Inc.
(www.HorizonsETFs.com)
Horizons ETFs Management (Canada) Inc. is an innovative financial
services company and offers one of the largest suites of exchange
traded funds in Canada. The
Horizons ETFs product family includes a broadly diversified range
of solutions for investors of all experience levels to meet their
investment objectives in a variety of market conditions. Horizons
ETFs has approximately $10 billion of
assets under management and 91 ETFs listed on major Canadian stock
exchanges.
Commissions, management fees and expenses all may be
associated with an investment in exchange traded products (the
"Horizons Exchange Traded Products") managed by Horizons ETFs
Management (Canada) Inc. The
Horizons Exchange Traded Products are not guaranteed, their values
change frequently and past performance may not be repeated. The
prospectus contains important detailed information about the
Horizons Exchange Traded Products. Please read the relevant
prospectus before investing.
There are risks associated with this product. HMUS is
expected to invest in the Marijuana industry in certain U.S. states
that have legalized marijuana for therapeutic or adult-use, which
is currently illegal under U.S. federal law. HMUS will passively
invest in companies involved in the marijuana industry in the U.S.
where local state law regulates and permits such activities, as
well as in companies involved in the Canadian legal Marijuana
industry. HMUS will not be directly engaged in the manufacture,
importation, possession, use, sale or distribution of marijuana in
either Canada or the
U.S. Please read the full risk disclosure in the
prospectus before investing.
SOURCE Horizons ETFs Management (Canada) Inc.