Horizons Marijuana Life Sciences Index ETF (“HMMJ” or “ETF”) attempts to replicate the performance of the North American Marijuana Index (the “Index”), net of fees, to the greatest degree feasible.
Is the HMMJ ETF a wise investment?
ETFs are a terrific method to diversify your risk by allowing you to invest in a basket of stocks. The HMMJ is one of the most popular marijuana ETFs, and it is currently trading at $6.43, down 75% from its all-time high.
The cannabis industry’s general decline has resulted in an extended bear market, which has fallen heavily on HMMJ as well. Innovative Industrial Properties (NYSE:IIPR), Canopy Growth, GW Pharmaceuticals, Aphria, and Cronos Group are the top five holdings of HMMJ as of October 2, 2020, accounting for 63 percent of the fund.
We can see that the ETF contains a decent mix of typical licensed producers, as well as ancillary pot companies and medical marijuana players, giving you exposure to a variety of marijuana-related verticals.
IIPR is a marijuana-focused real estate investment trust with a market cap of US$130 and a year-to-date gain of 75%. While cannabis companies struggle to stay profitable, IIPR provides a consistent stream of cash flow, resulting in a 3.6 percent projected dividend yield.
The company’s dividend yield has climbed by 368 percent in the last three years, and its concentration on acquisitions will help fund future dividend hikes as well. Large medical marijuana companies like Trulieve Cannabis and Cresco Labs are among IIPR’s clients.
Sales have climbed from US$6.42 million in 2017 to US$45 million this year. Sales are expected to climb by 147 percent to $110 million in 2020, and by 76.3 percent to $194 million in 2021, according to analysts following the company.
We can see why the HMMF ETF’s largest holding is an ancillary marijuana company.
Is it wise to invest in HMMJ?
Horizon’s Medical Marijuana’s Stockchase rating is established using stock gurus’ signals. A high score indicates that experts like to buy the stock, whereas a low score indicates that experts prefer to sell the stock.
Is HMMJ under active management?
HMMJ is an index (or passively managed) ETF that tries to replicate the performance of the North American Marijuana Index, net of fees, to the greatest extent practicable. This quarterly rebalanced index was created to provide exposure to the performance of a basket of publicly traded North American life sciences companies with significant marijuana-related business operations. The North American Marijuana Index selects from a current universe of companies with operations that may comprise one or more offerings of biopharmaceuticals, medical manufacturing, distribution, bio-products, and other marijuana-related ancillary businesses.
“All eyes were on the Canadian cannabis industry’s upward momentum into 2021 after its powerful recovery in late 2020,” stated one analyst.
How do you tell the difference between HMMJ and HMMJ U?
The ticker symbol “HMMJ” will be used to trade HMMJ units denominated in US dollars. Both the HMMJ and the HMMJ are legal in the United States. The same exchange traded fund is referred to by U tickers. The currency in which they trade is the only distinction between the two listings.
What company owns BetaPro?
Horizons ETFs was formerly known as BetaPro Management Inc., a subsidiary of Jovian Capital Corp, and traded direct-commodities related ETFs, leveraged ETFs, and inverse ETFs. It was founded in 2005. Horizons BetaPro began selling two funds that tracked the S&P and Toronto Stock Exchange (TSX) in January 2006: the S&P/TSX 60 Bull Plus Fund and the S&P/TSX 60 Bear Plus Fund. BetaPro Management and its subsidiary AlphaPro Management were sold to Mirae Asset Global Investments, based in Seoul, South Korea, in 2011.
Horizons ETFs introduced the Horizons Marijuana Life Sciences Index ETF (HMMJ) in 2017, the first marijuana-related exchange-traded fund in North America. On April 5, 2017, HMMJ was listed on the Toronto Stock Exchange. HMMJ’s assets have grown to CAD$1 billion by September 2018. HMMJ returned a 60% gain in 2018, despite big losses at the end of September and the last two weeks of October. During the 2017–18 NBA season, Horizons ETFs was also a sponsor of the Toronto Raptors. In August 2017, Scotiabank bought the naming rights to the Toronto Maple Leafs and Raptors’ home arena and exercised a veto on competing organizations, effectively ending Horizons’ sponsorship of the Raptors before the 2018–19 NBA season.
Horizons launched the Horizons Junior Marijuana Growers Index ETF (HMJR) on the NEO Exchange on February 14, 2018. Smaller marijuana enterprises involved in cultivation, processing, and distribution are subject to HMJR. It also started trading the Horizons Blockchain Technology & Hardware Index ETF on June 21, 2018. Horizons was also among the cannabis sector companies who gathered to ring the Toronto Stock Exchange’s opening bell on October 17, 2018, the day Canada legalized recreational marijuana usage. The business launched the Horizons Active A.I. Global Equity ETF in November 2018, which uses artificial intelligence to make investment decisions.
Horizons ETFs launched the Horizons US Marijuana Index ETF in April 2019, which is an index ETF focused on the cannabis market in the United States. The next month saw the launch of BetaPro Marijuana Companies 2x Daily Bull ETF and BetaPro Marijuana Companies Inverse ETF, the first leveraged and inverse cannabis ETFs, respectively.
Horizon ETFs are owned by who?
Horizons ETFs offers a broad selection of solutions for investors of all levels of experience to achieve their investing objectives in a variety of market scenarios. The Mirae Asset Global Investments Group owns Horizons ETFs.
What exactly is BetaPro?
BetaPro ETFs employ a corporate class structure to provide market-savvy investors with daily leveraged, inverted, and inverse leveraged exposure to a variety of indices or commodities.
Is there a gold ETF from BMO?
The BMO Equal Weight Global Gold Index ETF (ZGD) aims to mirror, as closely as possible, the Solactive Equal Weight Global Gold Index’s performance, net of fees. The Index Constituent Securities are invested in and held by the Fund in the same proportion as they are reflected in the Index.
What is the difference between an index fund and an exchange-traded fund (ETF)?
The most significant distinction between ETFs and index funds is that ETFs can be exchanged like stocks throughout the day, but index funds can only be bought and sold at the conclusion of the trading day.