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Marijuana ETF reaches CAD1bn in assets

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The Horizons Marijuana Life Sciences Index ETF (HMMJ) has reached CAD1 billion in assets under management (AUM).

HMMJ is the first and largest ETF in the world to offer direct exposure to an investable index of North American-listed companies with business activities in the marijuana industry. The ETF reached its CAD1 billion milestone in a relatively short amount of time – 16 months.  
 
“When we launched HMMJ in April of 2017, we knew there would be significant interest in a Marijuana companies ETF – given the tremendous potential of the sector,” says Steve Hawkins, President and CEO of Horizons ETFs. “HMMJ’s growth has far exceeded our expectations as investors have strongly supported the sector in anticipation of Canada’s upcoming recreational marijuana legalisation.”
 
HMMJ is an index (or passively managed) ETF, which seeks to replicate, to the extent possible, the performance of the North American Marijuana Index (the Index), net of expenses. The 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 Index selects from a current universe of companies that have operations that may include one or more of biopharmaceuticals, medical manufacturing, distribution, bio-products and other ancillary businesses related to the Marijuana industry.
 
“One of the key drivers of HMMJ’s rapid asset growth speaks to the investor demand and desire for a diversified portfolio of Cannabis companies versus buying individual stocks,” says Hawkins. “While there are clearly leaders in the Marijuana equity sector, nobody knows for sure which companies will truly be successful over the long term or even be swallowed-up. HMMJ’s one-ticket, diversified investment solution has become very popular with investors looking to get broader exposure to the sector while mitigating single-stock risk without being subject to any active management bias.”
 
Since its inception, HMMJ has returned 78.5 per cent on an annualised basis and is up more than 162 per cent for the 12-month period ending 31 August 2018.

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