As governments around the world continue to ease laws on cannabis, this budding industry is creating a big opportunity for early investors.
On the upcoming webcast, Investing in Cannabis: What Advisors Need to Know, Timothy Seymour, Portfolio Manager, Amplify Seymour Cannabis ETF (CNBS); and Christian Magoon, Founder and CEO, Amplify ETFs, will delve into the rising cannabis industry and the importance of experienced active management when investing in this emerging asset class.
ETF investors can gain exposure to the nascent cannabis business through targeted ETF strategies, such as the recently launched Amplify Seymour Cannabis ETF (NYSEArca: CNBS).
The actively managed CNBS utilizes a top down and bottom up analysis performed by early-stage cannabis investor Tim Seymour. The fund’s analysis will be used to determine the holdings and weightings of the diverse portfolio of cannabis stocks held by the ETF. It will not invest in any company that is deemed to be violating any federal or state laws.
The new cannabis ETF has a purity mandate which requires 80% of the ETF’s assets to be invested in companies with 50% or more of their revenue from the hemp and cannabis ecosystem as well. The portfolio includes exposure to cannabis hemp plant through pharma, biotech, cultivation and retail, hemp products, and cannabis-infused products; support through agricultural technology, real estate and commercial services; and ancillary exposure through consumption devices, investing and finance, and technology and media.
Seymour has over 20 years of general investment experience and has been an early stage investor and recognized voice in the cannabis industry. He serves as a board member or in an advisory role for several private cannabis companies and provides regular commentary as a host on CNBC’s show Fast Money.
Investors should look to cannabis-related companies as the industry could experienced rapid growth. Worldwide consumer spending on legal cannabis was $12.2 billion in 2018, or up 28% from $9.5 billion in 2017. Looking ahead, the industry is expected to see spending rise to $17 billion in 2019 as more legalize marijuana.
Financial advisors who are interested in learning more about the cannabis industry can register for the upcoming Thursday, July 25 webcast here.