Innovation Shares in a recent filing outlined plans to launch an ETF that will cover the legal marijuana industry and likely compete with the $631 million ETFMG Alternative Harvest ETF (MJ). The firm, which is focused on cutting-edge technology, likely saw an opportunity with the resignation of anti-marijuana crusader Jeff Sessions from his role as Attorney General and opted to file for the Innovation Shares Cannabis ETF.
The fund will track an index from Innovation Labs that focuses on the stocks and American depositary receipts of mainly U.S. and Canada companies involved in the legal marijuana industry or with other similar products, such as hemp or cannabidiol, for use for pharmaceutical or consumer wellness purposes.
Eligible companies must have market capitalizations of at least $100 million and meet liquidity requirements. Selected companies are weighted by market capitalization subject to a 7% cap, with reconstitutions occurring monthly, according to the prospectus.
The filing did not include a ticker, expense ratio or listing exchange.
Contact Heather Bell at [email protected]