Canadian ETF provider Purpose Investments has teamed-up with white label ETF provider HANetf to launch Europe’s first cannabis ETF.
The Medical Cannabis and Wellness UCITS ETF (CBSX) will list on the Deutsche Boerse on 13 January with a total expense ratio (TER) of 0.80%.
CBSX offers investors exposure to the medicinal cannabis and cannabidiol (CBD) products that are used to treat conditions such as cancer, epilepsy and chronic pain.
Physically replicated, CBSX tracks the Medical Cannabis and Wellness Equity index provided by Solactive, which consists of companies with legal business activities in medical cannabis, hemp and the CBD industry.
There are nine thematic subsectors: 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.
In Europe, there are 28 countries with some form of medical cannabis legislation with the UK being the largest producer and exporter of medical grade cannabis in the world.
Som Seif, CEO of Purpose Investments, commented: “We believe 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.”
Hector McNeil, co-founder and co-CEO at HANetf, added: “Up until now, European investors have experienced restricted access to the cannabis market.
“With the launch of this 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.
“Due to the operational and legal due diligence that has gone into developing this ETF, investors can readily access an investment vehicle which can significantly reduce their legal risk versus investing directly in single cannabis securities.”
CBSX is domiciled in Ireland and will be passported for sale into the UK and Italy.