New Horizons ETF Focusing on U.S. Cannabis Stocks Launches April 18

Horizons is launching a new ETF for cannabis investors that will focus on U.S.-based cannabis stocks. It will give investors the opportunity to take advantage of the growing marijuana industry in the U.S. which is getting bigger as more states legalize cannabis.

In it, the ETF will contain names like Curaleaf Holdings Inc. (CNSX:CURA), Cresco Labs (CNSX:CL), MedMen Enterprises Inc (CNSX:MMEN) and many others. Like the Horizons Marijuana Life Sciences ETF (TSX:HMMJ), this new index will allow investors to have a balanced mix of marijuana stocks all in one investment without being overexposed to an individual holding.

The U.S-based ETF, however, will be listed on the NEO exchange under the ticker HMUS (Canadian dollar units) and HMUS.U (U.S. dollar units). Due to the illegality of cannabis federally in the U.S., the TSX does not permit the stocks to be listed on its exchange, and so the main Canadian exchange is not an option for Horizons to list this new ETF on.

The index charges a management fee of 0.85%, which is a modest amount for an ETF and shouldn’t be a detractor for investors.

The potential for the ETF and the underlying stocks is significant as legislation continues to change in the U.S. and the industry is much bigger than in Canada. According to Horizons President and CEO Steve Hawkins: “With the launch of HMUS, we expect that it will become the benchmark for exposure to the burgeoning U.S. Cannabis industry. That market is expected, by many leading analysts, to grow to over USD $80 billion in the coming years.”

The ETF is set to begin trading on April 18.