After dipping at the start of last week the ‘Horizons Marijuana Life Sciences Index ETF’ (HMMJ) has rebounded once again, following news that the index completed its latest quarterly rebalancing.

While there were 11 new pot stocks added to the HMMJ’s portfolio this quarter — including GrowGeneration Corp (NASDAQ:GRWG) and WeedMD (CVE:WMD) among others — the majority currently operate within the Canadian market, which was attributed to the sector’s “powerful resurgence” during the latter half of 2020.

According to the President and CEO of Horizons, Steve Hawkins, the company has continued to “see strong sales momentum across the provinces and an increasingly competitive marketplace, as highlighted by the amount of new additions to HMMJ – all positive signs for the sector’s ongoing health.”

However, the index also remains bullish on the American cannabis industry, as a number of regulatory reforms are expected to make their way to Congress during 2021, which may supercharge the US market.

The most notable of these is the Secure And Fair Enforcement (SAFE) Banking Act, which will grant long-overdue legal protection to financial institutions — such as insurance providers and major banks — that provide services to US cannabis companies.

“With key cannabis reform bills slated for introduction and voting in the coming months, 2021 might prove to be the year that defines marijuana legalization in the United States,” Horizons President and CEO Steve Hawkins said.

“Following the recent passage of marijuana legalisation in Mexico, the United States is now flanked on both its borders by countries with legal marijuana regimes. Not only could that create greater social and economic pressure for federal reform, but it offers the multi-state operators additional markets for potential expansion once the opportunity is available.”

Conversely, the six-month performance of the Australian Cannabis Index experienced its fourth consecutive week in decline, while Australia’s All Ordinaries and the S&P 500 continued to perform well, with the latter recording its fourth straight quarterly gain.

asx cannabis
Australian Cannabis Index – source The Green Fund


The Green Fund’s Australian Cannabis Index allows investors to benchmark top players in the Aussie cannabis space against the S&P500, the AORD, and HMMJ, giving them an overview of the health of the industry Down Under.