Horizons ETFs to close cannabis, psychedelic funds in March

Starting March 18, the company will largely restrict new investments in these funds.

Horizons ETFs Management (Canada) Inc. plans to close two of its niche market funds: the Horizons US Marijuana Index ETF and the Horizons Psychedelic Stock Index ETF.

The decision, which will be effective March 28, is part of a broader move by the company to restructure its fund offerings.

The two funds are among nine exchange-traded funds Horizons is terminating. The Horizons US Marijuana Index ETF and the Horizons Psychedelic Stock Index ETF were designed to provide investors with exposure to these emerging markets, but headwinds have continued to drag the industry at large over the past few years.

The announcement may have arrived a bit prematurely, however, considering stocks are trending up ahead of the potential federal rescheduling of cannabis and MDMA this summer.

Starting March 18, the company will largely restrict new investments in these funds. The ETFs will be delisted from the Toronto Stock Exchange and Cboe Canada by March 22, a significant step towards their official closure.

According to the firm, shareholders who still own shares in these ETFs at the time of closure will receive their portion of the net proceeds from the liquidation of the funds’ assets, after accounting for all liabilities and expenses associated with the dissolution.

The closure of the Horizons US Marijuana Index ETF and the Horizons Psychedelic Stock Index ETF reflects Horizons ETFs Management’s creeping shift in its portfolio strategy. Horizons, which is part of the Mirae Asset Financial Group and has more than $30 billion in managed assets, had already been realigning its fund offerings to adapt to changing market conditions and investor preferences.

Adam Jackson

Adam Jackson writes about the cannabis industry for the Green Market Report. He previously covered the Missouri Statehouse for the Columbia Missourian and has written for the Missouri Independent. He most recently covered retail, restaurants and other consumer companies for Bloomberg Business News. You can find him on Twitter at @adam_sjackson and email him at adam.jackson@crain.com.


Leave a Reply

Your email address will not be published. Required fields are marked *

Get the latest cannabis news delivered right to your inbox

The Morning Rise

Unpack the industry with the daily cannabis newsletter for business leaders.

 Sign up


About Us

The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


READ MORE



Recent Tweets

Get the latest cannabis news delivered right to your inbox

The Morning Rise

Unpack the industry with the daily cannabis newsletter for business leaders.