CANNAINVESTOR Magazine July 2017 | Page 242

Horizons Medical Marijuana Life Sciences ETF

Interview between CannaInvestor Magazine and Horizons Medical Marijuana Life Sciences ETF (TSX:HMMJ).

Can U.S. citizens invest in HMMJ?

It’s important to note that none of the ETFs from Horizons that are listed on the Toronto Stock Exchange (TSX) are regulated by, nor registered with, the U.S. Securities and Exchange Commission (SEC) or with any other foreign regulatory body.

Generally, non-residents of Canada, including U.S. residents, may invest in Canadian ETFs through a local U.S. broker that has facilities for directly or indirectly executing orders on the TSX. An investor seeking to invest in a Canadian ETF would need to check with their local broker to determine if they have the ability to buy Canadian-listed ETFs.

What are the fees for HMMJ? Do they differ for U.S. citizens?

No, the fees on the ETF do not differ. The management fee of HMMJ is 0.75% (plus applicable taxes) and, as with most other ETFs, operating fees and trading fees are additional. These fees are built into the daily returns of the ETF and applicable to all unitholders regardless of where they live. It is possible that a U.S. investor might have to pay a different trading commission to their broker to access a Canadian-listed ETF, but they would have to verify that directly with the broker.

Does HMMJ only invest in Canadian companies?

The ETF invests in publicly-listed North American stocks. That includes Canadian and U.S. stocks, as well as any American Depositary Receipts (ADRs), which are foreign stocks publicly-listed in the United States. In each case, stocks selected must be engaging in business operations that that are federally legal in the jurisdictions in which they operate.

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