The first cannabis exchange-traded fund has reached a milestone that has as much to do with surging pot stocks as it does with investor inflows.
The Horizons Marijuana Life Sciences Index ETF’s total assets have grown to more than $1 billion (Canadian) as shares rallied 124 per cent since its April 2017 debut on the Toronto Stock Exchange. It’s the first cannabis-focused fund to break the billion-dollar mark. Known by its ticker HMMJ, the ETF has benefited from burgeoning investor demand for pot stocks.
“HMMJ’s growth has far exceeded our expectations as investors have strongly supported the sector in anticipation of Canada’s upcoming recreational marijuana legalization,” Horizons chief executive officer Steve Hawkins said in a statement. Canada will legalize recreational use on Oct. 17.
Credit: www.thestar.com