The Horizons ETFs Group has filed preliminary documents in preparation of launching three new ETFs in Canada that will target leveraging the cannabis sector, according to The Globe and Mail. Leveraged ETFs “aim to deliver two or three times the return on their stated index, and carry a higher risk rating than typical ETFs.”

Steve Hawkins, President and Co-CEO at Horizons ETFs, said that “Given the underlying volatility of this sector, we believe there is demand from Canadian investors to take on more risk using leveraged ETFs to attempt to generate potentially higher short-term returns very much like they have done with gold mining stocks.”

The three funds are planning to launch on the Toronto Stock Exchange (TSX) and include the following: BetaPro Canadian Marijuana Companies 2x Daily Bull ETF (HMJU), BetaPro Canadian Marijuana Companies -2x Daily Bear ETF (HMJD), and BetaPro Canadian Marijuana Companies Inverse ETF (HMJI).

BetaPro Canadian Marijuana Companies 2x Daily Bull ETF (HMJU): This proposed fund aims for daily investment results, before fees, expenses, distributions, brokerage commissions and other transaction costs, that seek to correspond to two times (200%) the daily performance of the Solactive Canadian Marijuana Companies Index.