Horizons ETFs Completes Rebalance of World’s First Psychedelics ETF
March 26th, 2021
Horizons ETFs Management (Canada) Inc. (“Horizons ETFs“) has completed its first quarterly rebalance of the holdings of the Horizons Psychedelic Stock Index ETF (PSYK: NEO).
PSYK is the world’s first ETF offering direct exposure to North American publicly listed securities that have significant business activities in, or significant exposure to, the psychedelics industry. This quarter, four securities were added and one security was removed from PSYK’s portfolio and the North American Psychedelics Index (the “Index“) as follows:
- Algernon Pharmaceuticals Inc. (CSE: AGN)
- BetterLife Pharma Inc. (CSE: BETR)
- Core One Labs Inc. (CSE: COOL)
- Lobe Sciences Ltd. (CSE: LOBE)
- Nova Mentis Life Science Corp. (CSE: NOVA)
“Since launching PSYK as the world’s first psychedelics-focused ETF in January of this year, we have seen considerable investor interest in the ETF,” said Steve Hawkins, President and CEO of Horizons ETFs. “While the industry is still in its infancy, we believe this sector provides a considerable growth opportunity, particularly as more therapeutic uses for psychedelics are approved by health regulators and usage grows. The new additions to PSYK’s index this quarter reinforces our view that we will see continued growth of new entrants in the sector over the next year.”
PSYK is an index (or passively managed) ETF, which seeks to replicate, to the extent possible and net of expenses, the performance of the Index. The Index is a proprietary index owned and operated by Horizons ETFs, and Solactive AG is the independent calculation agent for the Index. The Index, which rebalances each calendar quarter, has been designed to provide a measure of the performance of North American publicly listed life sciences companies focused on psychedelic medicines, and other companies with business activities in the psychedelics industry.
The holdings of PSYK and its current portfolio weights are regularly updated and available at https://www.HorizonsETFs.com/PSYK. PSYK may not hold all of the constituent names in the Index. Horizons ETFs, through the use of a stratified sampling strategy, may invest in securities that closely match the investment characteristics of the Index, provided they are consistent with PSYK’s investment objectives and strategies.
About Horizons ETFs Management (Canada) Inc. (www.HorizonsETFs.com)
Horizons ETFs Management (Canada) Inc. is an innovative financial services company and offers one of the largest suites of exchange traded funds in Canada. The Horizons ETFs product family includes a broadly diversified range of solutions for investors of all experience levels to meet their investment objectives in a variety of market conditions. Horizons ETFs has over $17.5 billion of assets under management and 88 ETFs listed on major Canadian stock exchanges.
Commissions, management fees and expenses all may be associated with an investment in exchange traded products (the “Horizons Exchange Traded Products”) managed by Horizons ETFs Management (Canada) Inc. The Horizons Exchange Traded Products are not guaranteed, their values change frequently and past performance may not be repeated. The prospectus contains important detailed information about the Horizons Exchange Traded Products. Please read the relevant prospectus before investing.
There are risks associated with this product. PSYK is expected to invest in, and indirectly derive revenues from, companies in the psychedelics industry engaged in legal activities involving psychedelic drugs and substances. While the medical and adult use of certain psychedelic drugs and substances are generally prohibited under U.S. federal law, despite this prohibition, a limited number of states have either sought to decriminalize or authorize the medical use of certain psychedelic drugs and substances in limited circumstances. Clinical trials involving psychedelic drugs and substances are, however, permitted, provided they comply with both state and federal laws applicable to such trials. Psychedelic drugs and substances in Canada are primarily regulated under the Controlled Drugs and Substances Act (the “CDSA”), the Food and Drug Act and the regulations promulgated thereunder. The medical use of certain psychedelic drugs and substances remain illegal under Canadian federal law unless discretionary exemptions are granted under the CDSA, while a limited number of other drugs and substances may be prescribed by a health care practitioner to patients under their care. Adult recreational use of psychedelic drugs and substances remains generally prohibited under the CDSA. Commercial activities involving psychedelic drugs and substances are permitted in Canada by parties who hold the required federal regulatory approvals and licences; however, distribution and sales opportunities for psychedelic drugs and substances are heavily restricted at this time. PSYK will passively invest in companies engaged in legal activities involving psychedelic drugs and substances in Canada and the U.S. where applicable laws permit such activities. PSYK will not be directly engaged in the manufacture, importation, possession, use, sale or distribution of psychedelic drugs or substances in either Canada or the U.S.
The ETF, through the ownership of life science companies in the psychedelic industry, may also have some exposure to the legal marijuana market in Canada, and the hemp industry and/or marijuana industry in certain U.S. states that have legalized marijuana for therapeutic or adult-use, which is currently illegal under U.S. federal law. However, the ETF will not be directly engaged in the manufacture, importation, possession, use, sale or distribution of hemp or marijuana in either Canada or the U.S. Please read the full risk disclosure in the prospectus before investing.
Certain statements herein may constitute a forward-looking statement, including those identified by the expression “expect” and similar expressions (including grammatical variations thereof). The forward-looking statements are not historical facts but reflect the author’s current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. These and other factors should be considered carefully and readers should not place undue reliance on such forward looking statements. These forward-looking statements are made as of the date hereof and the authors do not undertake to update any forward-looking statement that is contained herein, whether as a result of new information, future events or otherwise, unless required by applicable law.
Neither Horizons ETFs nor Solactive AG shall have any liability, contingent or otherwise, to any person or entity for the quality, accuracy, timeliness and/or completeness of the Index, the data of the Index, or for delays, omissions or interruptions in the delivery of the Index or data related thereto. Neither Horizons ETFs nor Solactive AG makes any warranty, express or implied, as the results to be obtained by any person or entity in connection with any use of the Index, including but not limited to the trading of or investments in PSYK or related to the Index, any data related thereto or any components thereof. Neither Horizons ETFs nor Solactive AG makes any express or implied warranties, and hereby expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to the Index or any data related thereto. Without limiting any of the foregoing, in no event shall Horizons ETFs or Solactive AG have any liability for any special, punitive, indirect, or consequential damages (including lost profits), in connection with any use by any person of the Index, PSYK or any products related thereto, even if notified of the possibility of such damages. Neither Horizons ETFs nor Solactive AG is an advisor as to legal, taxation, accounting, regulatory or financial matters in any jurisdiction, and is not providing any advice as to any such matter.
SOURCE Horizons ETFs Management (Canada) Inc.
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