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Horizons ETFs Rebalances Marijuana-Focused Index ETF Suite

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.


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