Pot ETF hits market amid growing legalization push
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Roundhill Investments has launched a new ETF on the CBOE BZX Exchange to provide investors with exposure to 24 companies in the cannabis sector, including U.S. multi-state operators.
CALIFORNIA CANNABIS MEGA-FACTORY EYES FEDERAL LEGALIZATION OF WEED
The Roundhill Cannabis ETF (WEED) invests in cannabis producers and distributors, cannabis-related technology companies and additional cannabis-related ancillary businesses.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| WEED | LISTED FUND TRUST ROUNDHILL CANNABIS ETF NEW | 39.67 | -1.02 | -2.51% |
The fund's top holdings by weight include Curaleaf Holdings, Trulieve Cannabis, Verano Holdings Corp., TerrAscend Corp., Cresco Labs Inc., Columbia Care Inc., Tilray Brands, Innovative Industrial Properties Inc. and Canopy Growth Corp.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| CURLF | CURALEAF HOLDINGS | 5.07 | -0.14 | -2.69% |
| GTBIF | GREEN THUMB INDUSTRIES | 12.93 | -0.18 | -1.37% |
| TCNNF | TRULIEVE CANNABIS | 11.42 | -0.38 | -3.22% |
| VRNOF | VERANO HOLDINGS CORP. | 5.35 | -0.05 | -0.93% |
| TRSSF | n.a. | n.a. | n.a. | n.a. |
| CRLBF | CRESCO LABS | 2.1 | -0.09 | -4.11% |
| CCHWF | n.a. | n.a. | n.a. | n.a. |
| TLRY | TILRAY BRANDS INC. | 1.73 | +0.01 | +0.58% |
| IIPR | INNOVATIVE INDUSTRIAL PROPERTIES INC. | 93.91 | +0.32 | +0.34% |
| CGC | CANOPY GROWTH CORP. | 7.83 | +1.34 | +20.65% |
"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," Roundhill CEO Will Hershey said in a statement. "We wanted to provide investors with a comprehensive vehicle to invest in the space, and at a net expense ratio of only 0.59%, we believe that WEED has the potential to become the benchmark for the entire sector."
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The Roundhill Cannabis ETF's launch coincides with 4/20, commonly known as the unofficial annual cannabis holiday. Cannabis is legal in 37 U.S. states and Washington D.C., with positive regulatory momentum expected to continue in coming years.
In this Aug. 15, 2019, file photo, marijuana grows at an indoor cannabis farm in Gardena, Calif. (AP Photo/Richard Vogel, File / AP Newsroom)
The BDSA forecasts that the global cannabis market will grow to $61 billion by 2026, more than double the $29 billion in sales for 2021, with the majority of growth expected to come from the U.S. and Canada as consumer access improves in legalized areas. BSDA estimates legal U.S. cannabis sales will reach $46 billion by 2026, with California, New York, New Jersey, Florida and Michigan being the top contributing states.
For 2022, global cannabis sales are expected to reach just over $35 billion, including more than $28 billion in legal cannabis sales from the United States.