ETF Managers Group, a New Jersey-based investment company, plans to launch an exchange-traded fund that would track publicly traded cannabis companies.
The ETF Managers Group is proposing the Emerging AgroSphere ETF, which could be a first for the cannabis industry, Reuters reported.
An exchange-traded fund owns and tracks certain assets and, unlike a mutual fund, can be traded like a regular stock.
The Emerging AgroSphere ETF would own stocks in cannabis-related companies that make prescription drugs using marijuana extracts as well as those selling hemp derivatives and other related stocks. The company noted it would buy globally but, for now, wouldn’t invest in recreational cannabis-related stocks, Reuters reported.
The fund would trade on the NYSE Arca, a 20-year-old exchange headquartered in Chicago. ETF Managers Group did not provide a launch date or ticker symbol, according to Reuters.
The ETF Managers Group announced its plan in a filing with the U.S. Securities and Exchange Commission.