Pass on this ETF

Article Excerpt

HORIZONS EMERGING MARIJUANA GROWERS ETF $8.05 (Aequitas NEO Exchange symbol HMJR; TSINetwork ETF Rating: Aggressive; Market cap: $12.1 million) invests in small, publicly listed companies involved in the production and distribution of cannabis. The emphasis is on early stage, small-cap companies with growth potential. This ETF trades on the Toronto-based Aequitas NEO Exchange. It is recognized by the Ontario Securities Commission and backed by major financial firms such as Barclays and Royal Bank. The ETF holds 26 companies with an average market capitalization of just $131 million.Top holdings include Terrascend (Canada, 11.7%), Cann Group (Australia, 8.7%), MPX Bioceutical (Canada, 8.5%), Auscann Group (Australia, 7.9%), Hydropothecary (Canada, 6.5%) and WeedMD (Canada, 5.8%). The top six holdings make up a big 50% of assets. This fund started up February 13, 2018, and has so far failed to attract significant investor interest. The result in an asset size of $12.1 million, with limited liquidity for investors. The legal cannabis market is developing quickly, but there are significant industry and…