Cambria Cannabis ETF Debuted This Week: Will You Be Investing?

Cambria Cannabis ETF

On Monday, the Cambria Cannabis ETF (NYSE:TOKE) made its debut as a publicly-traded security. This ETF is actively managed and concentrates exclusively on marijuana stocks.

At the end of its first day of trading, TOKE stock was valued at $24.70 per share.

Cambria Cannabis ETF

The ETF is managed by Cambria Investment Management, a privately held, Los Angeles-based financial services company with more than $1 billion in assets under management. The company also manages a suite of equity and bond ETFs.

With under $2.5 million in net assets spread among 31 holdings, the Cambria Cannabis ETF is relatively small. Within its portfolio are some of cannabis's top stocks, including Aurora Cannabis (NYSE:ACB), GW Pharmaceuticals (NASDAQ:GWPH), CannTrust Holdings (NYSE:CTST), and Canopy Growth (NYSE:CGC).

Aurora holds the biggest weight, accounting for 6.6% of the ETF's net assets.

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Management claim that the new Cambria Cannabis ETF has the lowest costs of all the marijuana-focused ETFs out there. In a press release, it stated that "its gross expense ratio is 0.59%, and its net expense ratio is 0.42%."

Further, the fund aims to have a minimum of 80% of its net assets invested in cannabis companies. It has set out a definition for these companies as having at least 50% of their revenue from the sale of cannabis and/or related products.

A Difficult Time for Cannabis Stocks Everywhere

The Cambria Cannabis ETF comes to market at a difficult time for cannabis stocks everywhere. The entire marijuana index has fallen roughly 30% since the end of April. The sector is in the throes of multiple controversies relative to regulatory issues, CEO issues, and influential downgrades.

But this is not the only ETF to start trading publicly in recent days. The Cannabis ETF began listing on the NYSE on July 9. It, too, is a pure-play cannabis-focused ETF.

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