ETF pioneer Som Seif shuns Canadian stocks in launching new pot fund

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ETF pioneer Som Seif shuns Canadian stocks in launching new pot fund GlobeInvestor

The fund will allow Europeans to invest in the cannabis industry through their local stock exchanges, rather than buying shares on North American counterparts. However, the fund doesn’t own many of Canada’s largest pot companies.Industry pioneers Canopy Growth Corp., Aurora Cannabis Inc. and Aphria Inc. are absent. So are companies that more recently became some of Canada’s most valuable – Curaleaf Holdings Inc., Cronos Group Inc. and Green Thumb Industries Inc.

Some European countries have legalized medical marijuana. Marijuana Business Daily estimates that total sales of medical cannabis flower within the European Union amounted to roughly €74.4-million , with nearly all coming from Germany and Italy. It’s launching with 13 stocks. The most valuable are Scotts Miracle-Gro Co., an American fertilizer company that many consider a cannabis company because of its sales to the sector, and GW Pharmaceuticals PLC, a U.S.-listed company that sells cannabinoid medicines. Purpose estimates roughly 20 per cent of the fund is invested in the Canadian companies, compared with 80 per cent in U.S. names.The only Canadian companies included are PharmaCielo Ltd., Namaste Technologies Inc.

 

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