The thematic ETF will track the performance of the Enhanced Consciousness Index – comprised of companies involved in the legal research, development and production of psychedelics to address medical conditions.
Launched in America, Elemental Advisors’ PSYK ETF will provide investors with exposure to companies involved in the field of psychedelic pharmaceuticals and therapeutics.
Current clinical research is pointing to the potential therapeutic benefits of psychedelic medicines for conditions such as depression, anxiety, PTSD and addiction. Since the advent of SSRIs in the 1980s, there has been practically no innovation in treatments for such conditions.
With many people not responding to traditional care, and with mental health conditions on the rise – the therapeutic applications of psychedelic molecules are coming to light at a time when there is a desperate need for new treatments.
Thanks to this promising research, the psychedelics industry in the US, which has been forecast to reach $10.75bn (~£7.92bn) by 2027, is an area that has been pinned to disrupt the traditional mental health care and medical drug market.
Tim Collins, founder and president of Elemental Advisors, commented: “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.
“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 realising 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.”
Elemental has stated that the Enhanced Consciousness Index will be principally comprised of companies that have, or are expected to have, a significant part of their business involved in psychedelic-based pharmaceuticals and therapeutics.
It has highlighted, however, that if fewer than 25 psychedelic companies qualify for inclusion in the Index, it will also include neurology biopharmaceutical companies, subject to a maximum of 35 total companies in the Index.
Only stocks of developed market countries or American Depository Receipts (ADRs) of emerging markets countries that meet minimum capitalisation and liquidity criteria will be considered for inclusion in the Index.
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