ETF pioneer Som Seif shuns Canadian stocks in launching new pot fund

Globe and Mail, Aug. 22, 2019, by Hans Pennink, Associated Press

Canadian exchange-traded fund pioneer Som Seif has jumped across the pond with a pot ETF that’s his first European venture, but most of this country’s best-known cannabis companies aren’t making the leap with him.

Partnering with HANetf, an independent European ETF specialist, Mr. Seif’s Purpose Investments launched the Medical Cannabis and Wellness UCITS ETF this week in Germany on the Deutsche Borse’s Xetra exchange. It will also join exchanges in France, Italy, Britain and Switzerland over the next several weeks.

The fund will allow Europeans to invest in the cannabis industry through their local stock exchanges, rather than buying shares on North American counterparts. However, the fund doesn’t own many of Canada’s largest pot companies. …

The only Canadian companies included are PharmaCielo Ltd., Namaste Technologies Inc. and Khiron Life Sciences Corp.; none is among Canada’s 20 most valuable pot stocks. …

Mr. Seif said in an interview that European investors were already investing in marijuana by buying shares on North American exchanges. “The large part of the trading volume that you see in the sector does come out of Europe – from family offices, retail and institutional investors. We saw an opportunity to give them access to a product that they could participate in locally.”…

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