Fund launched under unique partnership represents first-of-its-kind opportunity for investors across the pond
The cannabis space may be limping away from a painful 2019, but that isn’t stopping Purpose Investments from taking its pot-investment experience to Europe as it launches a first-of-its-kind ETF product.
The Medical Cannabis and Wellness UCITS ETF, set to be listed next week on Deutsche Boerse with the ticker symbol CBSX, has been announced as the first and only European USITS ETF to offer targeted exposure to the rapidly expanding medical cannabis industry.
Launched in partnership with HANetf, a UK-based white-label ETF platform provider, CBSX is also Purpose’s first UCITS ETF. The fund is domiciled in Ireland, and has been passported for sale into the UK and Italy, according to a statement.
“The medical cannabis industry was pioneered in Canada, and we’re thrilled with the opportunity to partner with HANetf to take what we have learned from our Purpose Marijuana Opportunities Fund (MJJ) to Europe,” said Purpose CEO Som Seif. “We believe that the cannabis sector is still in the infancy stages of a multi-year growth phase and that there is ample opportunity for innovation and new discoveries.”
Tracking the Medical Cannabis and Wellness Equity Index provided by Solactive, CBSX consists of publicly listed companies conducting legal business activities in the medical cannabis, hemp, and CBD industry. The fund is fully physically replicated, with constituents diversified across nine thematic sub-sectors:
- Producers and suppliers of medical cannabis;
- CBD focused biotech companies;
- Hydroponics and equipment suppliers;
- Producers of medical cannabis consumer products;
- Companies leasing property to medical cannabis growers;
- Software solutions for medical cannabis producers;
- Companies with an investment focus on medical cannabis;
- Hemp and CBD consumer goods suppliers; and
- Service providers, including equipment, manufacturing and processing
The ETF selects constituents based on an in-depth legal due diligence process from a universe of equities listed on major stock exchanges such as the NYSE, Nasdaq and TSX.
“Up until now, European investors have experienced restricted access to the cannabis market,” said HANetf co-founder and co-CEO Hector McNeil. “With the launch of this truly innovative ETF, there is now a product for investors who want exposure to the cannabis industry through a pre-screened basket of Cannabis securities and in a regulated UCITS ETF.”
CBSX is offered to European investors with a TER of 80 bps.
