World’s First Marijuana ETF Reaches $1 Billion in Assets
Horizons Marijuana Life Sciences Index ETF hits key industry milestone in asset growth
TORONTO, Sept. 7, 2018 /CNW/ – Horizons ETFs Management (Canada) Inc. (“Horizons ETFs”) is pleased to announce that the Horizons Marijuana Life Sciences Index ETF (“HMMJ”) has reached CAD $1 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 $1 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.
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 legalization.
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,” said Mr. 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.”
HMMJ has also generated very strong returns. Since its inception, the ETF has returned 78.5% on an annualized basis and is up more than 162% for the 12-month period ending August 31, 2018.
Annualized Performance*
* As at August 31, 2018. The indicated rates of return are the historical annual compounded total returns including changes in per unit value and reinvestment of all dividends or distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder that would have reduced returns. The rates of return shown in the table are not intended to reflect future values of the Horizons Exchange Traded Products or returns on investment in the Horizons Exchange Traded Products.
** Performance since inception on April 4, 2017, as at August 31, 2018.
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 more than $11 billion of assets under management and 83 ETFs listed on major Canadian stock exchanges. Horizons ETFs Management (Canada) Inc. is a member of the Mirae Asset Global Investments Group.
