On what has become a historic day for marijuana smokers, April 20, or 4/20, a leading ETF company is making a major announcement.
Amplify ETFs recently announced that the Amplify Seymour Cannabis ETF (NYSE: CNBS) now has the ability to access Multi-State Operators (MSOs) via swaps. The ETF recently finished the necessary legal and operational work required to add portfolio exposure to this group of companies.
Swaps are a type of derivative contract where where two parties exchange the cash flows or liabilities from two disparate financial instruments. Swaps can occur in a variety of forms and typically principal does not transfer between the parties.
Amplify’s announcement arrives amid supportive news that the House approved a bill that would offer cannabis businesses access to the U.S. banking system, something that still may be a challenge to push through in the Senate.
“We are excited to now have access to the full plant-touching U.S. cannabis investable universe in the CNBS portfolio at a time when we believe the U.S. market is poised for significant growth,” said Tim Seymour, Portfolio Manager for CNBS.
“We are pleased to expand the universe of cannabis market exposure within CNBS,” said Amplify CEO Christian Magoon. “The increase in portfolio flexibility for Tim going forward should further equip CNBS to continue to be the premier way for investors to obtain diversified and professionally-managed exposure to the growing cannabis sector.”
CNBS Fund Manager Tim Seymour has been a fixture in the financial and cannabis industries, appearing regularly as a commentator on CNBC, and serving as founder and Chief Investment Officer of Seymour Asset Management (SAM).
The Amplify Seymour Cannabis ETF contains a number of well-known names in the cannabis industry, including Canopy Growth, Aphria, Silver Spike, and HydroFarm Holdings. The ETF has a 0.75% expense ratio.
CNBS invests at least 80% of its net assets (including investment borrowings) in the securities of companies that derive 50% or more of their revenue from the cannabis and hemp ecosystem. As mentioned, it is an actively managed ETF that seeks to provide investment exposure to global companies principally engaged in the emerging cannabis and hemp ecosystem across one of three classifications.
Amplify has a suite of funds that includes specialized ETFs offering targeted exposure to sectors as varied as online retailers, digital lending, blockchain, and cannabis exposure.
Investors can learn more here.
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