Cannabis ETFs Reach $1B in AUM
The news comes as MJ and the Canada-based Horizons Marijuana Life Sciences Index ETF (HMMJ) both crossed the $1 billion mark in assets this week. This is not the first time HMMJ crossed that milestone, last achieving the feat back in October when Canada legalized marijuana.
As for MJ, like most U.S. equities, it got racked by the volatility in November and especially December as the ETF fell below its 200-day moving average. However, MJ is up about 40 percent to start 2019 and HMMJ is up close to 50 percent.
HMMJ was the first ETF to track the cannabis industry when it first arrived in the marketplace on April 2017.
MJ and its cannabis stock holdings experienced exponential growth in 2018 and could see more of the same in 2019. Neal Gilmer, a research analyst with Haywood Securities, is projecting that the US cannabis market could be worth between US$15.9 and US$21.7 billion by the year 2022.
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