Horizons Marijuana Life Sciences Index ETF (TSX: HMMJ) (OTC: HMLSF) has been hit hard over the past two weeks, declining 8.4% since July 26th despite what has been a stable market for the cannabis sector as measured by my proprietary Cannabis Stock Index, which is roughly unchanged. The ETF, which has over C$120mm in assets, is trading more than 12% below the $10.00 IPO price from April.

When the pioneer fund debuted, we pointed to our disappointment with the composition of the ETF (and its index), as it doesn’t really represent the industry. From a high level, it is heavily weighted towards Canadian LPs, but it includes an almost equally large exposure to cannabis or cannabis-related biotech companies, including Arena Pharmaceuticals(NASDAQ: ARNA), which we believe is totally inappropriate, and GW Pharma (NASDAQ: GWPH), Insys Therapeutics (NASDAQ: INSY) and Zynerba (NASDAQ: ZYNE), all of which are under pressure.