Horizons ETFs is preparing to launch a new product that will allow investors to easily get a diverse investment in one of Canada’s most exciting new sectors – marijuana.
The Horizons Medical Marijuana Life Sciences ETF will begin trading on April 5 on the Toronto Stock Exchange under the ticker symbol HMMJ. It will include 11 Canadian companies as well as four from the United States. The ETF won’t just feature marijuana growers. It will also include fertilizer and life sciences companies.
It will attempt to track the Solactive North American Medical Marijuana Index, and it will have a 0.75% management fee.
Horizons ETFs President and co-CEO Steve Hawkins told Business News Network the new ETF will be aimed at retail investors.
“We don’t believe this is an institutional-based product. This is very topical. This is a high-discussion industry and there are a lot of individual investors out there that really want to see the growth in the industry. They may be users, they may not be users.”
The ETF will include growers such as Canopy Growth Corp (TSX:WEED) and CanniMed Therapeutics (TSX:CMED). It will also include companies like Scott’s Miracle-Gro (NYSE:SMG) and Zynerba Pharmaceuticals Inc. (NASDAQ:ZYNE).
Earlier this week, reports emerged that Canada’s ruling Liberal Party is set to table a bill that will finally make recreational pot legal in Canada, starting on July 1, 2018. It will then be up to the provinces to determine how it will be sold, minimum prices, and so on.
One report says the legalized marijuana market in Canada could be worth $22.6 billion annually, which includes recreational users, medical patients, and marijuana tourism.
