Canadian CANNAINVESTOR Magazine August / September 2017 - Page 179

Marijuana: What

is the best way to

take advantage of

the opportunity?

Marijuana offers incredible investment possibilities: you can’t do an Internet search for marijuana without finding an article that highlights this once-in-a-lifetime opportunity. Many argue that investors are on the cusp of something big – very big. If you’ve been hearing this, you’re probably wondering how you might take advantage. I’m hoping this article will shine some light on your investment options.

With so many options available to an investor, it’s hard to know which way to turn. We all have stories of friends, family and acquaintances who have already made fortunes purchasing marijuana stocks. Which stock is next to take off, and is it right for you?

The first option is the Horizons Medical Marijuana Life Sciences ETF. “HMMJ”. The ETF seeks to replicate as much as possible the performance of the North American Medical Marijuana Index net of expenses. This index is in Canadian Dollars and is not hedged. Investors need to be aware that fluctuations in currency, particularly the Canadian dollar versus the US dollar, will have a positive or negative effect on the index returns. Management fees are .75% plus applicable taxes. HMMJ will only invest in companies that are involved in the legal marijuana industry, which at present means only medical marijuana. Securities may be listed on the TSX, NYSE, Nasdaq or the North American junior exchanges. This index is market-cap weighted and rebalanced quarterly, generally having securities with a market capitalization of greater than CAD 75 million. No issuer will represent more than 10% of the index on the rebalance date. This ETF was launched on April 5, 2017.

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By Jason A. DeJean, CFP, PFP, EPC, CPCA