Pass on these ETFs: Horizons Betapro Marijuana 2X Daily Bull ETF and Betapro Marijuana Companies Inverse ETF

Article Excerpt

The HORIZONS BETAPRO MARIJUANA 2X DAILY BULL ETF $2.85 (Toronto symbol HMJU) is certain to get your attention. It promises to deliver 200% of the daily return of the North American Marijuana Index. The ETF launched in May 2019 and has attracted $7 million in assets despite its whopping 1.45% MER. Marijuana stocks have performed poorly over the past 6 months, and this fund has collapsed from its initial offer price of $20 a unit to the current $2.85. That’s a loss of 86%. Horizons also launched another ETF promising you a 200% return on the movement of the North American Marijuana Index. This fund, however, is betting against the index’s gains, so if that benchmark goes down by, say, 5%, the BETAPRO MARIJUANA COMPANIES INVERSE ETF $38 (Toronto symbol HMJI) should gain 5%. This fund has attracted $16.8 million and also charges a 1.45% MER. Both these ETFs aim to attract speculators betting on how marijuana stocks perform on any particular day. But each adds an extra layer…

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