Roundhill Launches Cannabis ETF (CBOE: WEED)
PR Newswire
NEW YORK
,
April 20, 2022
/PRNewswire/ —
Roundhill Investments
, an ETF sponsor focused on innovative thematic funds, today launched the Roundhill Cannabis ETF
(“WEED ETF”)
on the Cboe BZX Exchange. The
WEED ETF
seeks to provide investors with exposure to the cannabis sector, including U.S. multi-state operators (“MSOs”).
According to
BDSA
, the global cannabis market is expected to grow to
$61 billion
by 2026, more than double
$29 billion
in sales for 2021. The majority of this growth is expected to come from the U.S. and Canadian markets, as consumer access improves amongst legalized states. Positive regulatory momentum continues abroad as well, including
Mexico
, and European markets such as the U.K. and
Germany
.
“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. 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. WEED allows for U.S. retail and institutional investors to gain exposure to U.S. operators, potentially in advance of positive legislation,” said Roundhill CEO
Will Hershey
.
WEED ETF holdings (as of 4/20/2022) include MSOs, like
Curaleaf
Holdings
(12.1% weight),
Trulieve Cannabis
(8.5% weight)
and
Green Thumb Industries
(10.1% weight)
, ancillary cannabis businesses, like
WM Technology
(3.0% weight)
, and Canadian cannabis companies, like
Tilray
(4.7% weight)
.
For more information on WEED ETF and a full list of holdings please visit:
https://www.roundhillinvestments.com/etf/weed/
.
*The Advisor has agreed to waive 0.16% of its management fee for the Fund until at least
April 30, 2023
.
About Roundhill Investments:
Roundhill Investments is a U.S.-based investment adviser focused on developing innovative exchange-traded products. The firm’s product lineup currently accounts for more than
$1 billion
in assets under management. To learn more about the company, please visit
roundhillinvestments.com
.
Investors should consider the investment objectives, risk, charges, and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the WEED ETF please call 1-855-561-5728 or visit the website
https://www.roundhillinvestments.com/etf/weed/
. Read the prospectus and summary prospectus carefully before investing.
Companies involved in the cannabis industry face intense competition, may have limited access to the services of banks, may have substantial burdens on company resources due to litigation, complaints or enforcement actions, and are heavily dependent on receiving necessary permits and authorizations to engage in medical cannabis research or to otherwise cultivate, possess or distribute cannabis. Since the cultivation, possession, and distribution of cannabis can be illegal under
United States
federal law under certain circumstances, federally regulated banking institutions may be unwilling to make financial services available to growers and sellers of cannabis.
Cannabis-related companies are subject to various laws and regulations that may differ at the state/local and federal level. Laws and regulations related to the possession, use (medical or recreational), sale, transport and cultivation of marijuana vary throughout the world, and the Fund will only invest in non-U.S. Cannabis Companies if such companies are operating legally in the relevant jurisdiction. These laws and regulations may (i) significantly affect a cannabis-related company’s ability to secure financing, (ii) impact the market for marijuana industry sales and services, and (iii) set limitations on marijuana use, production, transportation, and storage.
In addition, cannabis-related companies are subject to the risks associated with the greater agricultural industry, including changes to or trends that affect commodity prices, labor costs, weather conditions, and laws and regulations related to environmental protection, health and safety. Cannabis-related companies may also be subject to risks associated with the biotechnology and pharmaceutical industries. These risks include increased government regulation, the use and enforcement of intellectual property rights and patents, technological change and obsolescence, product liability lawsuits, and the risk that research and development may not necessarily lead to commercially successful products.
As an ETF, the fund may trade at a premium or discount to NAV. Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Due to the costs of buying or selling Shares, including brokerage commissions imposed by brokers and bid/ask spreads, frequent trading of Shares may significantly reduce investment results and an investment in Shares may not be advisable for investors who anticipate regularly making small investments. The Fund is a recently organized investment company with no operating history. Please see the prospectus for details of these and other risks.
Roundhill Financial Inc. serves as the investment advisor. The Funds are distributed by Foreside Fund Services, LLC which is not affiliated with Roundhill Financial Inc., U.S. Bank, or any of the companies or individuals referenced herein.
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SOURCE Roundhill Investments