New cannabis ETF lets investors hedge on inverse growth

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Horizon launches a new take on cannabis investments

Horizons ETFs Management has introduced two new products designed to give potential cannabis investors more options. The two products are expected to begin trading this Friday on the Toronto Stock Exchange and offer unique investment vehicles that will appeal to a certain type of trader.

The first product is the BetaPro Marijuana Companies2x Daily Bull ETF (exchange-traded fund). It will be offered under the ticker symbol HMJU and “seeks daily investment results, before fees, expenses, distributions, brokerage commissions and other transaction costs that endeavor to correspond to two times (200%) the daily performance of the North American MOC Marijuana Index (NTR).”

The second product is the BetaPro Marijuana Companies Inverse ETF, ticker symbol HMJI. According to Harvest, “HMJI seeks daily investment results, before fees, expenses, distributions, brokerage commissions and other transaction costs, that endeavor to correspond to one times (100%) the inverse (opposite) of the daily performance of the North America MOC Marijuana Index (TR).”

Both products are designed to offer daily results by using leverage and short exposure beyond what is typically prescribed for conventional mutual funds. As such, they are riskier than other funds, but are more suitable for investors that have a considerable amount of experience. Horizons will collect a management fee of 1.45% for each fund, as well as all applicable sales taxes.

Harvest has already made a name for itself as the leader of marijuana ETFs. It was the first provider of the products when it introduced the Horizons Marijuana Life Sciences Index ETF and now has a total of five different ETF products available to investors.