“Horizons ETFs is the only provider of leveraged ETFs in Canada, with 25 leveraged funds on its shelf. The three new funds will be in line with the existing BetaPro fund lineup, and have a management fee of 1.15 per cent. The funds will include: BetaPro Canadian Marijuana Companies 2x Daily Bull ETF (HMJU), BetaPro Canadian Marijuana Companies -2x Daily Bear ETF (HMJD) and BetaPro Canadian Marijuana Companies Inverse ETF (HMJI),” according to the Globe and Mail.
Related: A Powerful Catalyst Grows the Marijuana ETF
While there is an appetite for more marijuana ETFs in the U.S., there are regulatory issues that make it difficult for more of these products to come to market. Some states have legalized weed, but it remains illegal at the federal level, presenting hurdles for ETF issuers and custody banks.
“The assets of an ETF in the U.S. have to be custodied in a U.S. bank,” according to Green Market Report. “It can’t be offshore or in Canada. The custodial bank actually holds the securities of the ETF. This is why the main cannabis ETF’s are in Canada with the Horizons company.”
For more information on new fund products, visit our new ETFs category.