The Cannabis ETF: The NYSE Gets a New Marijuana ETF

Cambria Cannabis ETF

The New York Stock Exchange is introducing a new cannabis-focused ETF called The Cannabis ETF (NYSE:THCX).

Much to investors’ delight, The Cannabis ETF will focus on companies active in the CBD, hemp, and legal marijuana industries.

According to Forbes, the new fund is the product of Innovation Shares—an ETF sponsor company—and will trade on the NYSE Arca. Further, the publication states that “rebalancing will take place on a monthly basis, unlike many other ETFs, which rebalance quarterly.”

The Cannabis ETF

Innovation Shares’ new fund is “passively managed.” This means its securities are not chosen by a portfolio manager but are rather matched to an index. In this case, the securities listed will mirror the 36 already listed on the company’s Innovation Labs Cannabis Index.

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Expected stocks within the ETF at launch include global cannabis brands such as Canopy Growth (TSX:WEED) (NYSE:CGC)Aurora Cannabis (TSX:ACB) (NYSE:ACB), and Tilray (NASDAQ:TLRY).

The Cannabis ETF is also the first passively managed “pure-play” cannabis ETF to trade on the NYSE. This means the stocks within will all be cannabis-focused, and it won’t include adjacent industries such as tobacco or alcohol stocks.

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In an exclusive email to Forbes, Innovation Shares’ Managing Director, Matt Markiewicz, said the following:

“Rebalancing on a monthly basis not only allows the fund to take advantage of a constantly evolving cannabis capital markets environment but should help smooth out some of the longer term volatility that is often associated with a burgeoning industry. This is a chance for serious investors who recognize the potential of a generational investment opportunity but have wavered on buying specific stocks.”

The Takeaway

The Cannabis ETF isn’t exactly the first marijuana ETF on the market; however, its inclusion should help to boost the sector’s legitimacy, especially considering this one is focused purely on cannabis stocks. Will the new security help boost the companies within it? Who knows.

The Cannabis ETF will trade under the ticker symbol THCX.

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