Elemental Advisors Inc has launched PSYK ETF (NYSE: PSYK), a thematic ETF that tracks the performance of the Enhanced Consciousness Index, principally comprised of companies involved in the research, development, production and/or use of psychedelics to address medical conditions in legal pharmacological applications under the applicable jurisdiction’s laws.
The firm writes that as one of the first US listed psychedelic ETFs, PSYK provides investors with exposure to companies involved in the rapidly developing and potentially disruptive medicinal psychedelic drug market, which is forecast to reach USD10.75 billion by 2027 according to a report from Research and Markets.
“Mental health issues, such as depression, PTSD and substance abuse, continue to be big societal problems, which have likely grown due to COVID-19 and the subsequent lockdown environment. While current treatments for these conditions can often be inadequate, there’s been some recent groundbreaking research that has shown psychedelic compounds to be a safe and effective treatment for people suffering from these illnesses,” says Tim Collins, a founder and President of Elemental Advisors. “For these reasons, coupled with the growing societal and regulatory acceptance of psychedelics, we believe that the psychedelic drug market is on the cusp of realizing its true potential and that the PSYK ETF can be an attractive option for savvy investors who are looking to gain access to this burgeoning segment on the ground floor.”
The Index will be principally comprised of companies that have, or are expected to have, a significant part of their business involved in the research, development, production and/or use of psychedelic-based pharmaceuticals and therapeutics. If fewer than 25 psychedelic companies qualify for inclusion in the Index, the Index will also include neurology biopharmaceutical companies, subject to a maximum of 35 total companies in the Index. Only stocks of developed market countries or ADRs of emerging markets countries that meet minimum capitalization and liquidity criteria are considered for inclusion in the Index.