Horizons ETFs Confirms US Pot ETF Launch and Holdings

On Monday (April 15), Horizons ETFs Management (Canada) confirmed the launch date and holdings for its US-centric marijuana exchange-traded fund (ETF).

The Horizons US Marijuana Index ETF will start trading on Thursday (April 18) under the ticker symbol HMUS on the NEO Exchange.

This new fund is designed to offer investors exposure to the budding US cannabis and hemp markets.

More specifically, shareholders of the fund will gain access to a public index overseeing multi-state operators (MSOs), one of the latest investing trends in the marijuana market.

Steve Hawkins, president and CEO of Horizons ETFs, said his firm expects that the interest of marijuana investors for the US market will continue to rise.

“As the US continues to further liberalize its marijuana regulations, we anticipate that more investors will be looking to invest in companies with significant business operations in the US market, and HMUS will provide a diversified and liquid way to gain that exposure in one ETF,” he said in the press release.

According to Horizons ETFs, in order to be added to the index, a company will need a market capitalization greater than C$75 million.

The new fund from Horizons ETFs will carry apply a 0.85 percent management fee for investors.

The NEO Exchange, an emerging exchange in Canada, does not limit listings from operating in the US marijuana space, unlike exchanges operated by TMX Group (TSX:X).

This represents the second NEO Exchange index for Horizons ETFs. In February 2018, the firm launched its first ETF, the Horizons Emerging Marijuana Growers Index ETF (NEO:HMJR), which offers exposure to smaller cap marijuana growers.

While HMUS will trade on a Canadian exchange, a version trading under the ticker symbol HMUS.U will be made available at a US dollar rate.

Some of the initial holdings confirmed for HMUS have already been added to existing ETFs from the firm.

As part of its most recent quarterly rebalance for the Horizons Marijuana Life Sciences Index ETF (TSX:HMMJ), hemp-derived cannabidiol producer Charlotte’s Web Holdings (CSE:CWEB,OTCQX:CWBHF) was added to the index.

Charlotte’s Web, which produces a variety of novelty legal CBD products, currently holds a 10.96 percent weight in HMUS, according to Horizons ETFs.

Additionally, some of the top holdings for HMJR are additions to the new HMUS fund.

At the time, Hawkins hinted that Horizons ETFs wanted to pursue more hemp-derived CBD opportunities in the public market.

This sector of the entire marijuana space has seen a boost in investment thanks to the legalization of hemp and its derivatives in the US in December 2018.

While this will be the first fund from Horizons ETFs to exclusively focus on the US market, fellow ETF operator Evolve Funds Group is also set to launch its own US-specific ETF.

The two funds will both list on the NEO Exchange, but the Evolve fund, dubbed the Evolve US Marijuana ETF (USMJ), will be actively managed by Elliot Johnson, chief investment officer with Evolve ETFs.

Here is a list of all the holdings in the new Horizons ETFs fund:

• Curaleaf Holdings (CSE:CURA,OTCQX:CURLF)
• Cresco Labs (CSE:CL,OTCQX:CRLBF)
• Charlotte’s Web
• MedMen Enterprises (CSE:MMEN,OTCQX:MMNFF)
• Green Thumb Industries (CSE:GTII,OTCQX:GTBIF)
• Acreage Holdings (CSE:ACRG.U,OTCQX:ACRGF)
• iAnthus Capital Holdings (CSE:IAN,OTCQX:ITHUF)
• Green Growth Brands (CSE:GGB,OTCQB:GGBXF)
• TerrAscend (CSE:TER,OTCQX:TRSSF)
• CannaRoyalty operating as Origin House (CSE:OH,OTCQX:ORHOF)
• Harvest Health & Recreation (CSE:HARV,OTCQX:HRVSF)
• Flower One Holdings (CSE:FONE,OTCQB:FLOOF)
• Slang Worldwide (CSE:SLNG)
• Cannabis One Holdings (CSE:CBIS)
• Liberty Health Sciences (CSE:LHS,OTCQX:LHSIF)
• Valens GroWorks (CSE:VGW,OTCQB:VGWCF)
• Cannabis Strategies Acquisition (NEO:CSA)
• Planet 13 Holdings (CSE:PLTH,OTCQB:PLNHF)
• Trulieve Cannabis (CSE:TRUL,OTC Pink:TCNNF)
• Sunniva (CSE:SNN,OTCQB:SNNVF)

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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: Acreage Holdings, Green Growth Brands, Flower One Holdings and Valens GroWorks are clients of the Investing News Network. This article is not paid-for content.