Finance

The first cannabis ETF in Europe is now tradable in Germany

Cannabis funds proved their popularity in the USA. Canada was a pioneer in the medical cannabis industry and Purpose Investments are pleased to be working with HANetf to bring what they have learned from Purpose Marijuana Opportunities Fund to Europe. The cannabis sector is still in the infancy of a multi-year growth phase and there is ample opportunity for innovation and new discoveries.

Purpose Investments and HANetf will launch the first cannabis ETF (exhange-traded fund) in Europe. The Medical Cannabis and Wellness UCITS ETF will also be tradable in Germany from Jan. 13, and thus available through all major online brokers.

The ETF is also approved for distribution in Great Britain, Italy, and Ireland.

You can find more information about the cannabis industry and other important news in the cannabis sector in the Hemp.im app and its companion marijuana news website.

Cannabis ETF enters a big, changing industry

The Medical Cannabis and Wellness UCITS ETF is the first and so far the only ETF that enables targeted participation in the rapidly growing medical cannabis industry. It has experienced massive change and growth in the last two years.

Medical cannabis and CBD products are used to treat diseases such as cancer, epilepsy and chronic pain and are already legal in over 40 countries.

There are now 28 countries in Europe in which some form of medical cannabis legislation exists with the United Kingdom as the world’s largest producer and exporter of medical cannabis and Germany as the largest consumer, with an estimated 100,000 patients.

International support for a cannabis ETF in Europe

The cannabis ETF’s (exchange-traded fund) sees a large, positive reception upon entering the industry. (Source)

In 2018 the worldwide market volume for medical cannabis amounted to $13.4 billion. Experts forecast that the market will reach a value of $148 billion by 2026 and have an annual return on sales of 26.4%.

HANetf’s partner is the Canadian asset manager Purpose Investments, which already launched a cannabis fund in Canada in 2017 with the Purpose Marijuana Opportunities Fund.

“Canada was a pioneer in the medical cannabis industry and we are pleased to be working with HANetf to bring what we have learned from our Purpose Marijuana Opportunities Fund to Europe,” said Som Seif, Managing Director of Purpose Investments.

“We believe that the cannabis sector is still in the infancy of a multi-year growth phase and that there is ample opportunity for innovation and new discoveries. We are very excited to embark on this journey with HANetf in a global investor market,” Seif added.

Combining the cannabis and CBD sector in one ETF

The cannabis ETF tracks the performance of the Medical Cannabis and Wellness Equity Index. It consists of listed companies active in nine thematic sub-sectors of the medical cannabis, hemp and CBD industry:

  • Producers and suppliers of medical cannabis
  • CBD-focused biotech companies
  • Hydroponics and equipment suppliers
  • Manufacturers of medical cannabis products
  • Companies renting real estate to medical cannabis producers
  • Software solutions for medical cannabis producers
  • Companies with an investment focus on medical cannabis
  • Hemp and CBD consumer goods suppliers
  • Service providers from the fields of equipment, production, and processing

The companies undergo a stringent selection process and must be listed on a leading stock exchange such as the NYSE, Nasdaq or TSX. However, there are currently only 13 stocks in the index.

Hector McNeil, Co-Founder and Co-CEO of HANetf commented on the new cannabis ETF issue.

“Until now, European investors have had limited access to the cannabis market. With the launch of this truly innovative cannabis ETF, there is now a product for investors wishing to invest in a diversified basket of cannabis securities through a regulated UCITS ETF in the cannabis industry,” said McNeil.

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(Featured image by PeterDargatz via Pixabay)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Hemp.im, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in extraETF, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Hemp.im assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Hemp.im is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.

Anne Kings

Anne Kings is a reporter for the financial sector, often tackling Wall Street and shareholders' interests. She also covers the intersection of media and technology, and delves into interesting topics on entertainment. Sometimes she also writes about the cannabis industry, in particular CBD and hemp. She is currently based in New York.

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