The second cannabis-backed exchange-traded fund is on tap from AdvisorShares. But this one is just one toke over the line.
As first reported by ETF.com, this is the first cannabis ETF that will be investing in U.S. cannabis companies – the AdvisorShares Pure US Cannabis ETF. The prospective fund, which would trade on the NYSE Arca under the ticker "MJUS," would be the first fund to concentrate entirely on U.S. cannabis companies, which are defined in the prospectus as companies deriving at least 50% of their revenues from marijuana or hemp business within the U.S.
In addition to holding stocks, MJUS would use derivatives to gain exposure to certain otherwise-inaccessible marijuana stocks, similar to the strategy used by its sister fund, the $56 million AdvisorShares Pure Cannabis ETF (YOLO).
According to the filing, MJUS would focus on companies in a wide range of sectors, including agriculture, biotech, pharmaceuticals, real estate, retail and finance.
