First Trust Portfolios, an Illinois-based fund manager that oversees more than $100 billion, has filed paperwork to establish an investment vehicle containing medical marijuana stocks.
The move underscores how mainstream investment firms increasingly are targeting the cannabis industry.
Forbes reported the MMJ stocks in the trust will be selected from a cannabis index comprised of publicly listed companies that hasn’t yet been created. The trust’s prospectus still needs SEC approval.
According to Forbes, First Trust manages $105 billion through unit investment trusts and exchange-traded funds, among other funds and accounts.
The Bank of New York Mellon is the trustee, and the trust terminates on June 28, 2019. There will be a minimum purchase amount of $1,000 and each unit will cost $10.
In a related development, a marijuana exchange-traded fund, Horizons Medical Marijuana Life Sciences ETF, began listing on the Toronto Stock Exchange in April under the ticker symbol HMMJ. Canadian-based Horizons ETF Management launched the fund.