Cannabis ETFs post steep declines in line with marijuana stocks, but longer-term prospects appear bright
Posted On March 2, 2020
- Cannabis-focused exchange-traded funds have emerged over the past few years in the United States, Canada and now Europe, but their recent sharp declines have mirrored tumbling marijuana stocks and made it tougher for some ETF operators to attract investors.
- The pressure of such a decline has seen some funds such as the Evolve Marijuana Fund on the Toronto Stock Exchange and a related U.S.-focused cannabis fund on the Toronto-based NEO exchange fall by the wayside and close.
- Tim Seymour, who is the owner and manager of Amplify Seymour Cannabis ETF , launched his New York Stock Exchange fund, which controls about $7.5 million in assets, in July 2019.
- It’s no real surprise that sector-specific ETFs will reflect the unpredictable evolution of a young industry, said Jason Williams, research and banking consultant for the largest ETF in the space, New Jersey-based ETFMJ Alternative Harvest, which trades on the New York Stock Exchange as HARVEST .
- ETF cannabis investors will need to show similar patience, and there are signs they are doing so.
Read full article: mjbizdaily.com