First Psychedelics ETF Debuts On NEO Exchange

The Horizons Psychedelic Stock Index ETF is now listed on Toronto’s NEO exchange under the symbol ‘PSYK.’

PSYK is the first exchange traded fund providing exposure to the burgeoning industry of medicinal psychedelics.

The ETF is managed by Horizons ETFs Management, a Canadian ETF firm that’s part of the portfolio of Mirae Assets. In 2017, Horizons released the Marijuana Life Sciences Index ETF HMMJ, cannabis’ longest running ETF.

"PSYK will give investors exposure to the leading public companies undertaking this important research and development of treatments for the more than 700 million people globally that, according to the World Health Organization, suffer from some sort of mental illness, addiction or eating disorder," Horizons ETFs CEO Steve Hawkins said.

Companies Included in the Horizons Psychedelic Stock Index ETF

PSYK is a passive ETF, meaning that it’s not actively managed. The ETF follows the North American Psychedelics Index, an index owned and operated by Horizons and Solactive AG, which aims to replicate the performance of North American publicly-listed life sciences companies that are involved in the psychedelics industry.

As of its launch date, the index tracks the following companies:

• AbbVie Inc. ABBV
• Compass Pathways CMPS
• Cybin Corp. CYBN
• Entheon Biomedical Corp. ENBI ENTBF 
• Field Trip Health FTRP FTRPF
• Greenbrook TMS Inc. GTMS 
• Havn Life Sciences HAVN HAVLF
• Johnson & Johnson JNJ
• Mind Cure Health MCUR
• MindMed MMED MMDF
• Mydecine Innovations Group MYCO MYCOF 
• Nova Mentis NOVA LIBFF 
• Numinus Wellness NUMI
• Psyched Wellness Ltd. PSYC PSYCF
• Red Light Holland TRIP TRUFF 
• Revive Therapeutics RVV RVVTF
• Seelos Therapeutics SEEL

Horizons’ criteria for choosing members of the index requires companies to be listed on a stock exchange in Canada or in the U.S. and be engaged in research, production or distribution of psychedelic compounds and medicines. Companies must have a minimum market cap of CA$25 million ($19.6 million) to qualify, and remain above the CA$20 million mark.

This means that PSYK is not a pure-play ETF. While most of the companies included in the index are biotech and life science businesses specialized in psychedelics, the ETF also includes some major pharmaceutical companies like Johnson & Johnson and AbbVie, which own ketamine (or analog) products in their portfolios.

Greenbrook TMS also stands out among the bunch. The company is the country’s largest provider of Transcranial Magnetic Stimulation, a noninvasive alternative method for treating mental health disorders.

What Does This Mean For Psychedelics Companies?

MindMed Co-CEO and founder JR Rahn told Benzinga that it was inevitable that financial institutions would seek to offer further exposure to this transformative new asset class.

“Based on current investor sentiment, this will likely be the first of many further capital inflows into the psychedelic medicine market from institutional investors this year,” he added.

Havn Life CEO Tim Moore said that their inclusion will allow his company to become available to a wider audience in the investment community.

On a similar note, Entheon CEO Timothy Ko added that his team is hopeful that the inclusion in the fund will result in greater awareness and access for investors.

“This solidifies our position amongst peers and gives investors a great opportunity to support our industry as a whole," Mind Cure CEO Kelsey Ramsden said.

Benzinga Photo.