An index of marijuana exchange-traded funds (ETF) has been updated to better represent the current market. Horizons ETFs has rebalanced its Horizons Marijuana Life Sciences Index ETF, a move made every quarter as the market changes. The ETF is the first that offers direct exposure to North America-listed securities in the marijuana bioengineering and production industries and several new companies have become eligible for inclusion in the funds underlying index, the North American Marijuana Index (NAMI). Among these is Charlotte’s Web Hemp (CNQ: CWEB).
According to an announcement from Horizons, the portfolio has increased to cover Charlotte’s Web, as well as 48North Cannabis Corp, AgraFlora Organics International Inc, Cannara Biotech, Flowr Corp, Heritage Cannabis Holdings Corp, ICC International Cannabis Corp, PharmaCielo, Westleaf Inc, and Zenabis Global.
The ETF is an index that is designed to replicate, as closely as possible, the performance of the NAMI. It allows exposure to a basket of publicly listed life science companies based in North America that are involved in the marijuana industry and the participants are selected from a field that includes biopharmaceuticals, medical manufacturing, bio-products, distribution and other ancillary businesses involved in marijuana.
According to Horizons President and CEO Steve Hawkins, “HMMJ is the best-performing equity ETF in Canada, with a year-to-date return of 58.95 percent, as at last Friday’s close. As the number of listings and the market-capitalization of cannabis stocks continues to grow so dramatically, so too have the number of eligible issuers to be included in HMMJ. This is why the ETF has added 10 new names to its portfolio, bringing the total number of investee companies in HMMJ to 59.”
The inclusion of Charlotte’s Web was one of the major changes. The company is one of the biggest producers of legal CBD products in the U.S. and is traded on the Canadian Securities Exchange and the OTCMKTS over-the-counter exchange. On the OTCMKTS exchange, the company has seen its stock increase by 40% since the beginning of the year.