The marijuana sector is hot. Marijuana shares fly like sweet cakes over the counter. Investors in the young sector, however, have few opportunities in the area of ETFs. But that will soon change. There are 2 new marijuana ETFs coming up.
These 2 new marijuana ETFs will give investors in the sector even more possibilities. The shares are also likely to attract because the money from these ETFs flows directly to the marijuana shares to be included in the ETF.
Evolve The Marijuana ETF (SEED.TO)
The Evolve Marijuana ETF will invest in marijuana plants from Canada and the rest of the world. Companies that are active in recreational and medical marijuana are eligible.
Initially, the publisher will focus on Canadian marijuana stocks, but this will expand further as legalization in the world increases. Evolve also has the option to invest up to 10% of the ETF's capital in private companies.
Companies that potentially benefit the most from this new ETF are Canopy, Aurora, Aphria, MedReleaf and Cronos Group.
Mind you, Evolve has no experience with spending a marijuana ETF. It is therefore difficult to predict how well their strategy will work.
Horizons Junior Marijuana Growers Index ETF (HMJR)
Horizons ETF already has the better-known HMMJ marijuana ETF but is now launching a new ETF that focuses more on smallcap marijuana stocks. The ETF focuses on small marijuana companies that are engaged in the cultivation, production and distribution of marijuana.
In contrast to HMMJ, no biotech companies and no subsidiaries are included here. Companies can also be included that are active in the United States.
Companies that can benefit the most from this ETF include CannaRoyalty, MPX Bioceutical, Marapharm Ventures and Friday Night.
Source: Seeking Alpha