Horizons ETFs Rebalances Canadian And U.S. Cannabis ETFs; Here’s How Both ETFs Performed In 2020

Following Horizons’ Quarterly Rebalance, Here’s What the Top 10 Holdings of Their HMMJ and HMUS Cannabis ETFs Look Like Now

On December 29, 2020, Horizons ETFs Management (Canada) announced it completed a quarterly rebalance of the holdings of its two Cannabis ETFs: Horizons Marijuana Life Sciences Index ETF (HMMJ) and the Horizons U.S. Marijuana Index ETF (HMUS).

Horizons Marijuana Life Sciences Index ETF (HMMJ)

Horizons’ HMMJ cannabis ETF is the world’s first ETF offering direct exposure to North American-listed securities that have significant business activities in the marijuana industry. HMMJ seeks to replicate the performance of the North American Marijuana Index. The North American Marijuana Index is designed to provide exposure to the performance of a basket of North American publicly listed life sciences companies with significant business activities in the marijuana industry.

The North American Marijuana Index selects from a current universe of companies with operations that may include one or more offerings of biopharmaceuticals, medical manufacturing, distribution, bio-products, and other ancillary businesses related to the marijuana industry. Cannabis stocks in HMMJ’s index normally have a market cap of over CDN $75 million.

The HMMJ ETF is rebalanced each calendar quarter, and this quarter, HMMJ has added the following cannabis stocks to its portfolio:

“The Canadian cannabis industry ‘comeback’ in Q4 2020 has been one of the silver linings of a challenging year. Following consecutive quarters of muted performance, this Canadian sector has been galvanized by the renewed opportunity for federal marijuana liberalization in the United States.

Canada’s established marijuana licensed producers – particularly those that can enter the U.S. market upon federal legalization – are also well-positioned to appreciate from the industry’s growth, south of the border,” commented Steve Hawkins, Horizons ETFs President and CEO.

HMMJ Top Ten Holdings:

* As of December 25, 2020 | % = Portfolio Weight.

  1. Canopy Growth (CGC) | 16.11%.
  2. Innovative Industrial Properties (IIPR) | 13.21%.
  3. Aphria (APHA) | 13.02%.
  4. Cronos Group (CRON) | 11.65%.
  5. GW Pharma (GWPH) | 10.3%.
  6. Scotts Miracle-Gro (SMG) | 9.41%.
  7. Tilray (TLRY) | 4.47%.
  8. Village Farms (VFF)| 4.23%.
  9. Charlottes Web (CWEB) | 3.62%.
  10. Aurora Cannabis (ACB) | 2.62%.

HMMJ Performance:

* As of November 30, 2020.

  • One-Month: +51.51%.
  • Three-Month: +37.71%.
  • Six-Month: +25.49%.
  • YTD: +12.96%.
  • One-Year: +10.76%.
  • Three-Year: -7.19%.
  • Since Inception: +4.33%.

Source: Barchart

Horizons U.S. Marijuana Index ETF (HMUS)

HMUS is the world’s first U.S.-focused marijuana index ETF. HMUS seeks to replicate the performance of the U.S. Marijuana Companies Index. The U.S. Marijuana Companies Index is designed to provide exposure to the performance of a basket of publicly listed companies with significant business activities in, or significant exposure to, the marijuana or hemp industries in the United States.

Constituents of this index are selected from Canadian and U.S. exchanges. While some securities may be listed on major North American exchanges, most of the securities currently trade on North American exchanges that include but are not limited to, the Canadian Securities Exchange (CSE) and the Aequitas NEO Exchange (NEO).

The HMUS ETF is rebalanced each calendar quarter, and this quarter, HMUS has added the following U.S. cannabis stocks to its portfolio:

“As the world’s first and only exclusively U.S.-focused marijuana index ETF, HMUS has been the key benchmark to track and get exposure to the growth of the budding U.S. cannabis opportunity. Now, that opportunity has received a tremendous boon with the election of Joe Biden and Kamala Harris, who have highlighted that federal marijuana reform will be a part of their administration’s objectives.

"I am optimistic about what 2021 holds for the U.S. marijuana industry, as more states will likely see an opportunity to pursue state-level legalization, such as recent legalization measures passed by key populous states such as Arizona and New Jersey. U.S. multi-state operators can work to expand and enhance their operations in what will likely be a more permissive environment and even more significant revenue opportunities,” stated Steve Hawkins.

HMUS Top Ten Holdings:

* As of December 25, 2020 | % = Portfolio Weight.

  1. Columbia Care (CCHWF) | 11.38%.
  2. Green Thumb (GTBIF) | 9.74% | 9.33%.
  3. Curaleaf (CURLF) | 9.27%.
  4. Trulieve (TCNNF) | 9.14%.
  5. TerrAscend (TRSSF) | 7.4%.
  6. Charlottes Web (CWBHF) | 5.6%.
  7. Tuscan Holdings (THCB) | 5.52%.
  8. Jushi Holdings (JUSHF) | 5%.
  9. Planet 13 (PLNHF) | 4.76%.

HMUS Performance:

  • One-Month: +32.62%.
  • Three-Month: +34.66%.
  • Six-Month: +61.62%.
  • YTD: +32.54%.
  • One-Year: +35.74%.
  • Since Inception: -26.64%.

Source: Barchart

I have NOT been compensated for this article and hold NO positions in any of the companies mentioned.

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Lorimer Wilson 1 year ago Contributor's comment

Readers of your excellent article would find my latest article on the marijuana ETF segment entitled "Marijuana" ETFs: The Great Pretenders, very enlightening. Check it out.