New PSYK ETF Tracks Psychedelics | ETF Trends

Elemental Advisors Inc. has launched the PSYK ETF (NYSE Arca: PSYK), a thematic ETF focused on the emerging use of psychedelic compounds in treating mental health issues. The ETF begins trading today on the NYSE.

PSYK tracks the performance of the Enhanced Consciousness Index, which is principally comprised of companies involved in the research, development, production, and/or use of psychedelics to address medical conditions in legal pharmacological applications under the applicable jurisdiction’s laws. This is the first ETF issued by Elemental Advisors.

PSYK provides investors with exposure to companies involved in the rapidly developing and potentially disruptive medicinal psychedelic drug market, which is forecast to reach $10.75 billion by 2027, according to a report from Research and Markets.

“Mental health issues, such as depression, PTSD and substance abuse, continue to be big societal problems, which have likely grown due to COVID-19 and the subsequent lockdown environment,” said Tim Collins, a founder and president of Elemental Advisors. “While current treatments for these conditions can often be inadequate, there’s been some recent groundbreaking research that has shown psychedelic compounds to be a safe and effective treatment for people suffering from these illnesses.”

Collins added: “For these reasons, coupled with the growing societal and regulatory acceptance of psychedelics, we believe that the psychedelic drug market is on the cusp of realizing its true potential and that the PSYK ETF can be an attractive option for savvy investors who are looking to gain access to this burgeoning segment on the ground floor.”

The index will be principally comprised of companies that have, or are expected to have, a significant part of their businesses involved in the research, development, production, and/or use of psychedelic-based pharmaceuticals and therapeutics. If fewer than 25 psychedelic companies qualify for inclusion in the index, the index will also include neurology biopharmaceutical companies, subject to a maximum of 35 total companies in the index.

Only stocks of developed market countries or ADRs of emerging markets countries that meet minimum capitalization and liquidity criteria are considered for inclusion in the index.

PSYK has a net expense ratio of 0.75%.

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