Marijuana-focused exchange-traded fund reaches CA$1 billion in assets

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A cannabis-focused exchange-traded fund has reached 1 billion Canadian dollars ($760 million) in assets, partly stemming from recent major investments from key players in the nation’s cannabis space ahead of the country’s recreational legalization.

Horizons Marijuana Life Sciences ETF (HMMJ), which trades on the Toronto Stock Exchange, reached the milestone in assets under management in 16 months, Horizons ETFs Management said in a news release.

The ETF is an index – or passively managed fund – that attempts to mirror the activity of the North American Marijuana Index.

It’s designed to replicate the performance of publicly listed life sciences companies in North America with major dealings in the cannabis market.

The fund’s top holdings are mainly Canadian cannabis companies, although it also has large stakes in U.S.-based Scotts Miracle-Gro and the British company GW Pharmaceuticals.

The ETF selects from businesses with operations that include:

  • Biopharmaceuticals
  • Medical manufacturing
  • Distribution
  • Bioproducts
  • Other ancillary cannabis-related businesses

Since it was created, the ETF has yielded 78.5% returns on a yearly basis and is up more than 162% for the 12-month period that ended Aug. 31 this year, according to Horizons ETFs.

This comes after news that another marijuana ETF, ETFMG Alternative Harvest, brought in $22 million in August. ETFMG Alternative Harvest trades on the NYSE Arca under the ticker symbol MJ.