Exchange-Traded Funds have performed exceedingly well as extreme levels of volatility and uncertainty forced investors to pursue diversified exposure in the market. Building up with the ETF frenzy, a new Cannabis ETF has hit the market as the need to provide investors with diversified exposure to the burgeoning segment continues to heat up.
Pure U.S Cannabis ETF
Pure U.S Cannabis ETF is the latest addition in the trillion-dollar ETF landscape that seeks to provide investors with exposure to U.S cannabis firms. A brainchild of Maryland-based management firm AdvisorShares Investments LLC, the ETF will also offer exposure to plant-touching multi-state operators.
The cannabis ETF consists of 24 marijuana companies, directly involved in the legal production and distribution of cannabis. For listing in the ETF, a company must derive 50% of its net revenue from marijuana and hemp business in the U.S.
Some of the popular names in the ETF include Curaleaf, Green Thumb Industries, and TrueLife, accounting for about 25% of the ETF’s total value. Investors also stand to gain exposure to Terrascend Ayr Strategies and Cresco labs.
In addition to tracking some of the biggest U.S cannabis companies’ performance, Pure U.S Cannabis ETF also owns shares of Innovative Industrial Properties. Likewise, the ETF will allow investors to gain exposure to a real estate investment trust that boasts of 62 properties across 16 states.
U.S Cannabis ETFs
However, it won’t be the first fund by AdvisorShares with exposure to the cannabis sector. Mid last year, the investment fund unveiled YOLO and ACT publicly traded funds that provide investors with exposure to the U.S and international cannabis companies, Some of the fund’s biggest listings include Aphria, Aurora, Canopy Growth, among others.
Pure U.S Cannabis ETF is poised to compete for investors dollars with other similar ETF listed in the U.S market. Innovations Shares THCX listed in the NYSE and the Global X Cannabis ETF on the NASDAQ are other popular cannabis ETFs.
The addition of Pure U.S cannabis is a great addition to the burgeoning cannabis sector that continues to offer tremendous investment opportunities. The ETF provides retail and institutional investors an opportunity to bet on future winner in the North American cannabis market.
Europe ETF Opportunities
Separately, Europe continues to offer exciting investment opportunities as a plethora of economic releases affirm a bounce back from the COVID-19 shocks. China’s export to the trading block rose the most in more than one and a half years in August a sign of growing trading activities. Industrial production in the Eurozone is also on a roll affirming economic recovery.
The EURO currency has also continued to strengthen across the board, breaking above the $1.20 level against the dollar. Improving economic activities supported by Coronavirus vaccine hopes has seen Europe ETFs rally.
iShares MSCI Germany Small-Cap ETF stands to be one of the biggest gainers as a stronger currency, and better economic activities continue to support small companies that have lesser dependence on exports. Other European ETF to watch out include First Trust Germany AlphaDEX ETF, iShares MSCI United Kingdom Small-Cap ETF, and SPDR EURO STOXX Small Cap ETF.