In Canada, everyone can now invest in the production of marijuana

Canada has created the world's first investment fund that will invest private investors' money in the securities of medical marijuana producers. Experts consider this fact to be part of a global trend towards the creation of new funds investing in rare underlying assets (classic industries are already completely “occupied” by the largest providers of investment funds).

In early April of this year, the first trading session of the newly created investment exchange fund Horizons Medical Marijuana Life Sciences ETF took place on the Toronto Stock Exchange. The fund's stock portfolio includes securities of 14 issuers from Canada itself, as well as from the United States. Most of them are producers of hemp, which is grown for the manufacture of medicines.

In the very first days of trading, the value of Horizons ETF securities jumped by 1.45% to $10.48.

According to Anatoly Radchenko, Managing Partner of United Traders, the emergence of demand for the shares of medical marijuana producers was more than expected, since this is a fairly large industry, which, moreover, is actively developing. Over the past three years, there have been dramatic changes in regulatory policy for cannabis products in North America. In several US states, marijuana is partially or completely legalized, while in Canada, at the highest state level, there is the most active preparation for the full legalization of recreational cannabis use, and its medical use has been within the law for quite some time.

Cannabis sales in the US and Canada increased by as much as a third to $6.7 billion last year, according to a study by the ArcView Group. According to analysts' forecasts, by 2021 the volume of this market will exceed 20 billion US dollars. Already, the North American Marijuana index includes securities of 32 issuers.

Against the backdrop of very optimistic growth forecasts for the industry, prominent experts still note its high risk. So, Steve Hawkins, President of Horizons ETF, in an interview said that despite the active development of the industry, investments in it remain risky, since the businesses of manufacturers of cannabis products directly and very much depend on the "mood" of legislators. At any moment, if the authorities decide that the legalization of "weed" gives negative results, subsequent decisions can "multiply by zero" all the previous positive dynamics.

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