Evolve Funds Group, a Toronto-based fund manager with assets of 430 million Canadian dollars ($322.5 million), plans to launch an exchange-traded fund (ETF) focused on U.S. cannabis stocks.
The U.S. Marijuana ETF would follow on the heels of the company’s Evolve Marijuana Fund (SEED), which, according to Bloomberg data, is Canada’s top equity ETF performer on the Toronto Stock Exchange for the 12 months ended Feb. 28, 2019.
“The U.S. marijuana market is poised to become the largest in the world as recreational and medical cannabis becomes legal at state levels,” said Elliot Johnson, chief investment officer at Evolve ETFs and portfolio manager for SEED.
“The U.S. growth opportunity in cannabis is similar to the ground floor in Canada over a year ago.”
An ETF owns and tracks certain assets and, unlike a mutual fund, can be traded like a regular stock.