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.

(Featured image by PeterDargatz via Pixabay)

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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.