Q) Institutional investors may look at an ETF rather than any of the underlining holdings. How is that an advantage to the typical investor?
A) The more investor interest in the space, the more it benefits current investors. Currently, there has not been a lot of institutional interest in the marijuana space. That’s an absolutely massive pool of capital that remains on the sidelines. If institutions start buying HMMJ, or even the underlying stocks in a meaningful way, that would be a signal that there is wide-scale acceptance of the asset class and would probably signal another big leg-up in buying and therefore potential stock performance in the space and price performance of the ETF.
Q) When recreational marijuana is legal, will HMMJ expand into that market or will a new ETF be created?
A) The existing methodology of the index allows it to add recreational marijuana-focused companies assuming they are operating in jurisdictions where recreational marijuana use is legal.
Q) Other than represented through product lines of some of your holdings, is there any intent to invest in the hemp Industry outright?
A) HMMJ is an ETF focused on the medical marijuana and life-sciences industry and not specifically hemp-only based companies.
Q) Aurora Cannabis Inc. has moved to your top weighted holding. Why is that?
A) It’s INSYS now and the leadership of holdings is related to their stock price performance intra-quarter. If the stocks increase in value relative to the other holdings, they will see their corresponding weight increase in the portfolio.
Horizons Medical Marijuana Life Sciences ETF
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