As world governments begin to soften their stance on cannabis, investors may have the opportunity to get in at the early stages of a blazing new industry that could touch upon many consumer and healthcare segments.
In the upcoming webcast, The Low-Cost Way to Invest in Cannabis, Meb Faber, Co-Founder and CIO, Cambria Investment Management, will delve into the nascent cannabis sector and outline a targeted investment approach to help financial advisors hone in on the top companies in the rising cannabis industry.
Specifically, the recently launched Cambria Cannabis ETF (TOKE), an actively managed ETF strategy backed by the Cambria management team, can target new opportunities and potentially some undervalued names in the cannabis space. Additionally, TOKE is the least expensive cannabis ETF available, with an annual fee of just 0.42%, or $42 on a $10,000 investment.
The Cambria Cannabis ETF targets approximately 20 to 50 of the top companies with exposure to the broad cannabis industry based on Cambria’s determination as to their level of exposure to the industry. The ETF will typically invest in companies across a broad market capitalization spectrum of micro-, small-, and mid-capitalization stocks.
The underlying selection methodology will pick out equity securities that provide broad exposure to the cannabis industry, including companies that engage in or support the legal production, cultivation, and/or sale of cannabis, including marijuana and hemp, such as certain agrobusiness, biotechnology, life sciences, pharmaceutical, retail, finance and real estate companies; perform lawful research as to the medical and pharmaceutical applications of marijuana and cannabis extracts, including cannabinoids; or produce and develop devices, goods, and equipment related to the cannabis industry, including hemp and its legal derivatives.
The industry is also open to expand to other market segments. Cambria Investment Management expects that the industry will grow and crossover with other established industries such as tobacco, food, alcohol, medicine, tourism, and personal care. The definition of Cannabis Company will evolve as new business lines and products develop.
Financial advisors who are interested in learning more about the cannabis industry can register for the Wednesday, October 16 webcast here.