Another cannabis-themed ETF is hitting the public markets and its launch coincides with a day that fans of cannabis know all too well.
What Happened: Thematic fund company Roundhill Investments announced today, April 20 or 4/20 to those who celebrate, the launch of the Roundhill Cannabis ETF WEED (which is also the day of Benzinga’s Cannabis Capital Conference). The ETF is seeking to provide exposure to the cannabis sector, including multi-state operators in legalized U.S. states.
“While publicly-listed cannabis companies have recently underperformed, we believe that the cannabis market may be entering an inflection point in terms of both profitability and regulatory momentum,” said Roundhill Investments CEO Will Hershey. “We wanted to provide investors with a comprehensive vehicle to invest in the space.”
The global cannabis market is expected to grow from $29 billion in 2021 to $61 billion in 2026, according to BDSA. Growth is expected to come from the U.S. and Canada as more states and territories legalize cannabis.
Cannabis is legal for recreational or medical use in 37 states. Eighteen states have legalized recreational use of cannabis. Several large markets are expected to be legal in 2022 and 2023. Federal legalization remains a hot topic among Congress and the recent passing of the MORE Act by the House of Representatives to federally decriminalize cannabis is seen as an important step.
“WEED allows for U.S. retail and institutional investors to gain exposure to U.S. operators; potentially in advance of positive legislation.”
Related Link: New Metaverse ETF Launches From Roundhill Investments: What Investors Should Know
Holdings of WEED ETF: The ETF will invest in multi-state operators, ancillary cannabis companies and international cannabis companies.
The top 10 holdings in the ETF, which could change as the fund is launched, are:
- Curaleaf Holdings CURLF
- Green Thumb Industries GTBIF
- Trulieve Cannabis Corp TCNNF
- Verano Holdings Corp VRNOF
- TerrAscend Corp TRSSF
- Cresco Labs CRLBF
- Columbia Care CCHWF
- Tilray Brands TLRY
- Innovative Industrial Properties IIPR
- Canopy Growth Corp CGC
Other holdings in the fund include AYR Wellness AYRWF, Jushi Holdings JUSHF, Planet 13 Holdings PLNHF, Aurora Cannabis ACB, AFC Gamma AFCG, Akanda Corp AKAN, Cronos Group CRON, Leafly Holdings LFLY, WM Technologies MAPS, Organigram Holdings OGI, Sundial Growers SNDL, Turning Point Brands TPB, Village Farms International VFF and 22nd Century Group XXII.
About Roundhill: Known for being a leader and first to market for several thematic ETFs, Roundhill now has over $1 billion in assets under management. The company is best known for its Roundhill Sports Betting & iGaming ETF BETZ and Roundhill Ball Metaverse ETF METV, which were the first ETFs for their respective themes.
George is Digismak’s reported cum editor with 13 years of experience in Journalism