Investing in cannabis: The world’s first pot-focused exchange-traded fund
- THE launch of the world’s first cannabis-focused exchange-traded fund (ETF), on the Toronto Stock Exchange on April 5th, is welcome news to aficionados of marijuana.
- As with any ETF, the fund spares would-be investors the need to pick out their own favourite stocks, or indeed weed out dodgy ones, as it will simply replicate and track an index, in this case the North American Medical Marijuana Index.
- In America, despite state-level legalisation, marijuana is still illegal under federal law, making it nigh-impossible for pot firms to even access the banking system, let alone seek a proper public listing.
- Eleven of its 16 companies are based there, and all but three are licensed suppliers of medical marijuana in Canada, though a few also have American operations.
- This means that companies in the sector are currently “trading like speculative tech stocks”, says Khurram Malik of Jacob Capital Management, based on sometimes rosy projections of future recreational sales.
THE launch of the world’s first cannabis-focused exchange-traded fund (ETF), on the Toronto Stock Exchange on April 5th, is welcome news to aficionados of marijuana.
@TheEconomist: The fund’s home in Canada is no accident. Medical marijuana has been legal there since 2001
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