By Dana Sanchez
Debuting two days before the national day of cannabis culture — April 20 or 4/20 — a new exchange-traded fund that focuses on marijuana stocks plans to undercut its competition.
This is the market’s second marijuana ETF. It launched on the NYSE Arca electronic securities exchange. But it’s the first U.S. ETF to include cannabis in its name.
Trading under the ticker YOLO — You Only Live Once — the AdvisorShares Pure Cannabis ETF is charging $7.40 for every $1,000 invested, according to regulatory documents, Bloomberg reported. That’s 1 basis point — a hundredth of a percent — less than MJ, the ETFMG Alternative Harvest ETF. MJ has $1.18 billion in assets under management.
The 1 basis-point thing is a bit absurd, said Eric Balchunas, an ETF analyst at Bloomberg Intelligence. It’s more “symbolic of the era we are in right now where expense ratio is one of the first things an adviser looks at. This ETF has at least a fighting chance to find an audience.”
YOLO will track an actively managed portfolio of U.S. and Canadian cannabis companies with industries ranging from consumer products and real estate to health Click here to read entire article