Elemental Advisors Inc. has launched its first ETF, composed of companies involved in research, development, production or use of psychedelics to address medical conditions.
The PSYK ETF (NYSE:PSYK) tracks the Enhanced Consciousness Index.
With a small start, the ETF now holds $212,865 in net assets, including shares on psychedelics companies and others in biotech. Of the fund’s top ten holdings by percentage of net asset values, only four are pure-play psychedelics companies: Compass (NASDAQ:CMPS), MindMed (NASDAQ:MNMD), Atai Life Sciences (NASDAQ:ATAI) and GH Research (NASDAQ:GHRS).
The rest of the companies in the top ten are big-name biotech companies including Jazz Pharmaceuticals (NASDAQ:JAZZ), Bioheaven Pharmaceutical (NASDAQ:BHVN), as wells as non-psychedelic medium-cap biotechs like Sage Therapeutics (NASDAQ:SAGE) and Intra-Cellular Therapies (NASDAQ:ITCI).
The Index will be principally composed of companies that have, or are expected to have, a significant part of their business involved in psychedelic-based pharmaceuticals and therapeutics, according to a press release.
“Mental health issues, such as depression, PTSD and substance abuse, continue to be big societal problems, which have likely grown due to COVID-19 and the subsequent lockdown environment. While current treatments for these conditions can often be inadequate, there’s been some recent groundbreaking research that has shown psychedelic compounds to be a safe and effective treatment for people suffering from these illnesses,” said Tim Collins, a founder and president of Elemental Advisors.
“For these reasons, coupled with the growing societal and regulatory acceptance of psychedelics, we believe that the psychedelic drug market is on the cusp of realizing its true potential and that the PSYK ETF can be an attractive option for savvy investors who are looking to gain access to this burgeoning segment on the ground floor,” Collins concluded.
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