Horizons ETFs (Canada) has announced it is making changes to the investment objective of the Horizons Medical Marijuana Life Sciences ETF to reflect the proposed change in federal law to legalize recreational use of marijuana in Canada.

The Horizons Marijuana Life Sciences ETF provides exposure to a basket of North American companies with significant business activities in the marijuana industry.

Pending regulatory approval, the new strategy would see the fund own a slightly broader and more diversified portfolio of marijuana-focused companies beyond those focused solely in the medical marijuana industry.

Reflecting the alterations to the fund’s objective, the ETF has been renamed the Horizons Marijuana Life Sciences ETF but the fund will retain its original ticker HMMJ. HMMJ is the first ETF in the world that offers direct exposure to North American-listed companies with significant business activities in the marijuana industry.

Underlying the ETF is the North American Medical Marijuana Index which provides exposure to the performance of a basket of North American publicly listed life sciences companies, and other companies with significant business activities in the marijuana industry. Eligible companies have business activities that include biopharmaceuticals, medical manufacturing, distribution, bio-products, and other businesses ancillary to the marijuana industry.

In addition, HMMJ’s investment strategy will, subject to regulatory approval, be modified to permit the HMMJ to invest in marijuana companies which derive some portion of their revenue from the medical and/or recreational cannabis industry in certain US states where cannabis use has been legalised by state law, notwithstanding that the use, possession, sale, cultivation and transportation of cannabis remains illegal under US federal law.

“The North American marijuana industry continues to evolve rapidly from a regulatory and issuer perspective. We want to ensure that HMMJ has the flexibility to own a diversified portfolio of marijuana industry stocks so it can meet its investment objectives” said Steve Hawkins, president and co-CEO of Horizons ETFs. “We have also changed the name of HMMJ to reflect that the ETF will become more than just a medical marijuana ETF, as it will have the potential to invest in a range of recreational cannabis-focused opportunities as applicable laws evolve in both Canada and the United States”.

HMMJ has a management fee of 0.75%.

While the ETF currently trades in Canadian dollars, Horizons ETFs has announced the imminent listing of a US dollar-denominated share class for the fund which will begin trading around 19 June 2017 under the ticker HMMJ.U.