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Horizons ETFs to launch first marijuana ETF


Horizons ETFs Management has filed its final prospectus to launch the Horizons Medical Marijuana Life Sciences ETF (HMMJ).

Units of the exchange traded fund (ETF) have been conditionally approved for listing by the Toronto Stock Exchange (TSX) and are slated to begin trading on 5 April 2017, under the ticker symbol HMMJ.
HMMJ will be the first ETF that offers direct exposure to North American-listed stocks that are involved with medical marijuana bioengineering and production.
HMMJ is a passively managed ETF which seeks to replicate, to the extent possible, the performance of the North American Medical Marijuana Index (the Index), net of expenses. The index is designed to provide exposure to the performance of a basket of North American publicly traded companies with significant business activities in the marijuana 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."
The North American Medical Marijuana Index is designed to be a liquid and investable index of equity securities of publicly listed life sciences companies, and other firms, with business activities in the marijuana industry. The index selects from a current universe of publicly-listed North American companies that have operations that may include one or more of biopharmaceuticals, medical manufacturing, distribution, bioproducts and other ancillary businesses to the marijuana industry.
Only stocks that meet minimum asset and liquidity thresholds are eligible for inclusion in the index.
Stocks in the index are rebalanced quarterly on a market-capitalisation basis, and capped so that no single stock can exceed 10 per cent of the weight of the index when rebalanced.
"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 maximise 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."

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