The Swissquote Cannabis Portfolio, a certificate traded on the Swiss stock exchange (SIX), has generated a one-month return of 12.9 percent. Since its inception on April 10, the exchange-traded product is up nearly 26 percent, making it one of the best-performing SIX-listed certificates during this timeframe.
Swissquote’s offering removes one of the barriers to the introduction of a Cannabis ETP to retail investors as the new vehicle allows them to buy into the market without having to become experts on the subject.
The diversified portfolio is designed to provide exposure to the performance of a basket of North American publicly listed companies with significant business activities in the marijuana industry. The portfolio selects from a current universe of companies that have operations that include one or more of biopharmaceuticals, medical manufacturing, distribution, bioproducts and other ancillary businesses related to the marijuana industry.
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“Ranging from early-stage production and distribution to final consumption for personal and medical use (i.e. medicines, pain relief, cancer treatment, etc.), our cannabis certificate provides full coverage of the marijuana industry, allowing for the highest expected returns.,” says Switzerland’s provider of online trading services.
This new instrument is designed for investors who recognize the potential of flourishing cannabis industry but rather than taking the risk of investing in a single stock; they look for a structured product that is easy to trade and actively managed.
As Canada moves to legalize recreational pot, the value of the nascent market continues to grow rapidly. By 2030, it is anticipated that the North American marijuana market will grow to a value of $75 billion.