Europe’s first medical cannabis ETF reaches first anniversary with strong growth, as medical cannabis sector set to grow as major tailwinds fuel reform | CBDX
- Our Medical Cannabis ETF celebrates first year anniversary listing on Deutsche
Boerse and LSE
- Strong investor appetite sees
AUM grow to over $25m
- Democratic House, Senate and
Presidency greatly improves the odds of cannabis reform in the US
- Any reforms will provide
regulatory precedence for many countries around the world
- Growing focus from regulators
in the US on the potential positive impact of cannabis legalization on job
creation, social inequality, and most importantly tax revenues
- In the UK, there is likely to
be multiple cannabis operators listing on the London Stock Exchange within the
first half of this year
- The UK’s Project 2021, an
initiative that aims to create the largest body of evidence for the
effectiveness and tolerability of medical cannabis, should be completed by the
end of this year, providing a huge boost for the industry
January 20th 2021, London
Investors are
pricing in an improved outlook for the cannabis sector under a Democratic House
and Presidency, and that this momentum has continued through January, with a
surprise Senate takeover by the Democrats, which greatly improves the odds of
cannabis reform in the US says a spokesperson for the Medical Cannabis and Wellness UCITS ETF (CBDX) .
The European
listed Medical Cannabis and Wellness UCITS ETF (CBDX),
which was the first Medical Cannabis ETF to launch in Europe, has just completed its
first year anniversary listing on Deutsche Boerse and London Stock Exchange in
January. It is also listed on the SIX Swiss Exchange. The Medical Cannabis and Wellness UCITS ETF,
tracks the Medical Cannabis and Wellness
Equity Index which has delivered a return of 39.47% over the past three months
and 40.41% over the last 12 months[1]. Past performance is no guarantee of future
performance. It has grown strongly reflecting investor demand to $28million of
assets under management[2].
When you trade ETFs your capital is at risk.
A
spokesperson for the CBDX Medical Cannabis ETF says US regulators are increasingly focusing on the potential
positive impact of cannabis legislation on job creation, social inequality and
tax revenues, and any reforms will provide regulatory precedence for many other
countries. Many US lawmakers, at both the
Federal and State levels, are moving to relax laws around commercial cannabis
usage which is helping the market to grow exponentially.
In addition
to this, it says a UK initiative called Project 2021, which aims to develop the
biggest database in the world on the effectiveness and tolerability of medical
cannabis on patients, should be completed by the end of this year, and it
expects this to be a huge boost for the industry. We see pilot projects started
in France, Netherlands, and Ukraine also.
Nawan
Butt, Portfolio Manager of The Medical Cannabis and Wellness UCITS ETF,said: “We see significant tail winds carrying the cannabis industry
through 2021. Momentum in the US is at full swing for legislative reform both
at federal and state levels.
“In the
UK, incumbents are racing to be the first to list on the LSE, and international
supply chains are gaining strength to supply the growing European market.”
Nawan Butt
said: “The US cannabis trade is now running full steam ahead. With a ‘blue
wave’ there is significant upside for the cannabidiol (CBD) wellness and
ancillary services industries in the US, which are sharing the growth rates of
the underlying cannabis industry. There is significant momentum not only at the
federal level with multiple cannabis bills expected to be tabled soon but also
at the state level as pandemic hit government coffers look towards taxation
revenues for some relief. States such as New York, Virginia, and even Texas are
debating now the advantages of cannabis legalization and its impact on job
creation, social inequality, and most importantly tax revenues.
“In the
UK, within the first half of this year we expect to see multiple cannabis
operators list on the London Stock Exchange.
“Cannabis
patient count in the UK is also rising at a consistent pace, and the country’s Project 2021 - an initiative that aims to create the
largest body of evidence for the effectiveness and tolerability of medical cannabis by the end of this year - should
hopefully make both physicians and patients more comfortable with cannabis as a
mainstream rather than fringe treatment.”
Hector
McNeil co-CEO at HANetf said “CBDX was a market
first for Europe. It also is a flagship ETF in HANetf’s burgeoning, innovative
and broad range of thematic ETFs offering exposure to similar mega trends as
medical cannabis. CBDX has had superb performance with just under 40%
performance over the last 3 months and clearly great tailwinds to see that
momentum going forward.”
“Before
the CBDX medical
cannabis ETF launched last year, European investors bought cannabis
stock traded mainly in the North American markets. CBDX fixes a big problem for
investors and their brokers as it can be hard for them to assess if that
company is generating revenues in cannabis activities that may not be legal in
Europe but are permitted in the US & Canada. CBDX screening provides
comprehensive due diligence at the company level to only allow legal companies
under the various European jurisdictions. It also provides diversified exposure
to the space in a single trade available across European exchanges and is
tradable in GBP, USD, EUR & CHF.”
Learn more about The Medical Cannabis and Wellness UCITS ETF here.