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) announced it reached the milestone in assets under management in 16 months.
According to 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 built to replicate the performance of publicly listed life sciences companies in North America with major dealings in the cannabis market.
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.
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,
It was also announced in August that Bank of America Merrill Lynch was financing New York-based Constellation Brands’ investment of CA$5 billion ($3.8 billion) in Ontario-based Canopy Growth.
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