Cambria is becoming the latest ETF provider to crack out the bong, listing an actively managed marijuana and hemp tracker.
The Cambria Marijuana Industry ETF (TOKE), which will begin trading on US exchanges in two weeks, is set to become the third weed ETF listed in three months. More are set to come from other ETF dealers later in the year.
TOKE will invest in global companies that are “broadly” involved in the marijuana and hemp industries. Involvement is defined in the prospectus so loosely that almost any type of company – REITs, biotechs, retailers, research firms, banks, and more – can be eligible.
To qualify, companies need to make 50% of their revenue from these loosely defined marijuana and hemp-related activities. As the fund is actively managed, what constitutes relevant revenue is at Cambria’s discretion.
The fund will charge 0.59%.
Image: Police seizure of marijuana. Source: Australian Federal Police