U.S. Markets Welcome First Passively Managed Pure-Play ETF Solution for Investing in Cannabis
NEW YORK, July 9, 2019 /PRNewswire/ -- The Cannabis ETF (THCX), the first passively managed pure-play ETF solution for investing in cannabis, is now available to investors. The Cannabis ETF comes from Innovation Shares, a sponsor of unique thematic exchange traded funds.
"As a pure-play cannabis ETF, THCX focuses on companies in the legal marijuana, CBD and hemp industries – the portfolio does not rely on alcohol or tobacco stocks to provide exposure to this burgeoning global growth story," said Matt Markiewicz, Managing Director, Innovation Shares. "Investors entering the cannabis space have demanded a diversified, liquid and cost-efficient vehicle to invest in the 'green rush' and we are ready to deliver on that ask."
Listed on the NYSE Arca, THCX tracks the Innovation Labs Cannabis Index, a rules-based portfolio which rebalances on a monthly basis. The index currently consists of 35 stocks that are expected to benefit from the rise in value of the global cannabis market which is estimated to reach $630 billion by 20401. THCX's 70 bps management fee makes it the lowest cost US-listed cannabis ETF.2
"With several regulatory catalysts on the horizon in the U.S. and abroad, the current cannabis environment presents an exciting opportunity for investors. One area which has witnessed explosive growth since the signing of last year's U.S. Farm Bill is the hemp-derived CBD industry. Several of the companies in the portfolio are actively participating in this CBD boom by cultivating hemp, providing extraction services or by using CBD for applications in the pharmaceutical, health and consumer wellness markets," added Markiewicz.
About Innovation Shares LLC
Innovation Shares builds cutting-edge portfolios around growing and disruptive thematic investment trends. The true innovation behind its strategy is the AI powered natural language processing algorithm used to help identify sentiment around themes and relevant stocks.
1 Seaport Global Securities report (February 21, 2019)
2 The ETFMG Alternative Harvest ETF has a 0.75% management fee while The AdvisorShares Pure Cannabis ETF has a net expense ratio of 0.74%
Investing involves risk, including possible loss of principal. ETF shares are bought and sold at market price, not net asset value (NAV), and are not individually redeemed from the Fund.
An investment in the Fund is subject to investment risks, including the possible loss of some or the entire principal amount invested. There can be no assurance that the Fund will be successful in meeting its investment objective. While the shares of the Fund are tradable on secondary markets, they may not trade in all market conditions and may trade at significant discounts in periods of market stress. ETFs trade like stocks, are subject to investment risks, fluctuate in market value and may trade at prices above or below the ETFs net asset value. Companies involved in marijuana industry face intense competition, may have limited access to the services of banks, may have substantial burdens on company resources due to litigation, complaints or enforcement actions, and are heavily dependent on receiving necessary permits and authorizations to engage in medical marijuana research or to otherwise cultivate, possess, or distribute marijuana. Since the use of marijuana is illegal under United States federal law, federally regulated banking institutions may be unwilling to make financial services available to growers and sellers of marijuana. More information about these risks can be found in the Fund's prospectus.
An investor should consider the investment objectives, risks, and charges and expenses of the Fund before investing. The prospectus contains this and other information about the Fund. A copy of the prospectus is available at thcxetf.com or by calling Shareholder Services at 800-773-3863. The prospectus should be read carefully before investing. Current and future holdings are subject to change and risk.
The Cannabis ETF is distributed by Capital Investment Group, Inc., Member FINRA/SIPC, 100 E. Six Forks Road, Suite 200, Raleigh, North Carolina 27609. There is no affiliation between OBP Capital, LLC, Merlin Asset Management, LLC, Innovation Shares LLC, including their principals, and Capital Investment Group, Inc.
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