Canadian asset manager Purpose Investments has launched a Ucits medical exchange-traded fund (ETF) in what has been called a first for the European market.
Available via the UK-based ETF infrastructure provider HANetf, the fund offers investors targeted exposure to the medical cannabis industry.
The industry – which develops products for the treatment of conditions such as cancer, epilepsy, and chronic pain – has huge growth potential, according to HANetf co-founder Hector McNeil.
As of 2018, the global medical cannabis market size was $13.4 billion (€11.96 billion). The industry’s market value is expected to reach $148 billion by 2026, HANetf said.
McNeil said: “Until now, European investors have experienced restricted access to the cannabis market.”
The Medical Cannabis and Wellness Ucits ETF (CBSX), which goes live on Deutsche Boerse on January 13, is domiciled in Ireland and has been passported for sale in the UK and Italy.
Som Seif, chief executive of Purpose Investments, said: “We believe that the cannabis sector is still in the infancy stages of a multi-year growth phase and that there is ample opportunity for innovation and new discoveries.”
Purpose Investments managed 8 billion Canadian dollars (€5.5 billion) of assets.
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