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Home 🌿 Cannabis Technology News 🌿 The Market's First Marijuana-Themed ETF Could Start Trading Next Week 🌿The Market's First Marijuana-Themed ETF Could Start Trading Next Week

Fund will track medical marijuana companies.
Roughly two weeks before April 20, investors with a craving for marijuana exposure will have a new instrument with which to get it in their portfolios.
The first exchange-traded fund with a marijuana focus, the Horizons Medical Marijuana Life Sciences ETF, has been conditionally approved for listing by the Toronto Stock Exchange. It is scheduled to debut on April 5 under the ticker symbol HMMJ. According to Horizon ETF Management, it will be the first ETF “that offers direct exposure to North American-listed stocks that are involved with medical marijuana bioengineering and production.”
The marijuana industry has seen surging growth of late. Sales grew 30% in 2016, according to Arcview Market Research, and they are seen tripling in four years.The growth comes as more and more people approve of legalizing marijuana, including for recreational purposes. In 2016, roughly 60% of Americans said they favored the legalization of recreational marijuana, as the industry gained support in invalidating the war on drugs and seven states voted to legalize pot for recreational or medical use.
“The medical marijuana industry is rapidly growing in North America as legislators allow or consider allowing more legal uses of marijuana and marijuana-related products, particularly medical marijuana usage,” Steve Hawkins, president and co-chief executive officer of Horizons ETFs, said in a statement. “Given the recent high returns generated by medical marijuana companies, investors are clearly attracted to the industry.”
Other ETF providers have proposed similar funds. In February, ETF Managers Trust filed paperwork with regulators for the Emerging AgroSphere ETF, which would also focus on medical marijuana companies, as well as ones involved in the production or sale of products derived from hemp. It wasn’t clear when that fund might begin trading, and a representative for ETF Managers said the firm couldn’t comment.
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