TM Editors Note: This article discusses one or more penny stocks and/or microcaps. Such stocks are readily manipulated; do your own careful due diligence.

The munKNEE (Pure-Play) Psychedelic Drug Stocks Index is finally getting some tradable competition, namely, the Horizons' Psychedelic ETF & North American Psychedelic Index. Here are the details and how it differs from munKNEE's index.

Given the Index’s requirements (see below), the following companies are included in the current North American Psychedelics Index. 

1. Cybin (CYBN)
2. Havn Life Sciences (HAVN)
3. Mind Cure Health (MCUR)
4. Mydecine Innovations (MYCO)
5. Nova Mentis (NOVA)
6. Numinus Wellness (NUMI)
7. Psyched Wellness (PSYC)
8. Red Light Holland (TRIP)
9. Revive Therapeutics (RVV)
10. Seelos Therapeutics (SEEL)
11. COMPASS Pathways (CMPS)
12. Field Trip Health (FTRP)
13. MindMed (MMED)
14. Entheon Biomedical (ENBI)
15. Johnson & Johnson (JNJ) 
16. AbbVie Inc. (ABBV)
17. Greenbrook TMS Inc. (GTMS)

The first 11 companies in the list above are included in the munKNEE (Pure-Play) Psychedelic Drug Stocks Index...

• plus Champignon Brands (SHRMF), Jaguar Health (JAGX), Mindset Pharma (MSET), PharmaTher (PHRRF), and Silo Pharma (SILO);
• less Entheon due to its extremely small market capitalization ($4M);
• less Compass, Mind Cure, and Field Trip as their high market capitalizations and high share prices would have too great a weighting compared to the others in the munKNEE index;
• less Johnson & Johnson, AbbVie, and Greenbrook TMS as psychedelic compounds are not their major focus of research and development (i.e. they are not pure psychedelic drug companies) and their inclusion in the munKNEE index would give a false reading as to the true health of the psychedelic drug stock market. 

For inclusion in the North American Psychedelics Index companies must meet the following requirements:

• a minimum float market cap of C$25M
• a minimum 3-month average daily traded value of at least C$125,000
• a minimum share price of C$0.10

In comparison, the munKNEE (Pure-Play) Psychedelic Drug Stocks Index constituents must be actively and consistently trading, have a minimum market cap of US$20M, and a minimum share price of US$0.25.

The Index components will be:

• weighted subject to a cap of 10% for any single security;
• pharmaceutical companies with a total market cap of $5b or greater and  whose activity in psychedelics represents <25% of their total revenue, will be capped at a weight of 5% 
• and, on aggregate, the big pharma companies in the Index will be capped at a weight of 20% to prevent the Index from becoming dominated by big pharma players, and by the largest market cap psychedelics companies as mentioned above.
• In addition, the value of the Index will be reported in Canadian dollars compared to the munKNEE Psychedelic Drug Stocks Index where all but 2 of its constituents are followed in U.S. dollars.

In comparison, the constituents in the munKNEE (Pure-Play) Psychedelic Drug Stocks Index are equally weighted.

The ETF is expected to begin trading on January 26th and will trade on the NEO Exchange under ticker PSYK (in Canadian dollars) but Horizons is also considering listing on a U.S. exchange under the ticker symbol PSYK.U which, naturally, would be dominated in USD.

Going forward, the frequent exclusive-to-TalkMarkets articles (see here) on the news and stock price performance of the constituents in the munKNEE (Pure-Play) Psychedelic Drug Stocks Index will include reference to the performance of Horizons' Psychedelic ETF & North American Psychedelic Index.