Starting March 18, the company will largely restrict new investments in these funds.
The decision, which will be effective March 28, is part of a broader move by the company to restructure its fund offerings.
The two funds are among nine exchange-traded funds Horizons is terminating. The Horizons US Marijuana Index ETF and the Horizons Psychedelic Stock Index ETF were designed to provide investors with exposure to these emerging markets, but headwinds have continued to drag the industry at large over the past few years.
Starting March 18, the company will largely restrict new investments in these funds. The ETFs will be delisted from the Toronto Stock Exchange and Cboe Canada by March 22, a significant step towards their official closure.
According to the firm, shareholders who still own shares in these ETFs at the time of closure will receive their portion of the net proceeds from the liquidation of the funds’ assets, after accounting for all liabilities and expenses associated with the dissolution.
The closure of the Horizons US Marijuana Index ETF and the Horizons Psychedelic Stock Index ETF reflects Horizons ETFs Management’s creeping shift in its portfolio strategy. Horizons, which is part of the Mirae Asset Financial Group and has more than $30 billion in managed assets, had already been realigning its fund offerings to adapt to changing market conditions and investor preferences.
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