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HANetf Medical Cannabis & Wellness ETF Adds Company Backed By Wahlberg And P.Diddy In Re-Balance

Date 10/03/2020

  • Four new securities added to CBDX, reflecting rapid growth in the medical cannabis sector
  • The Alkaline Water Company, backed with investment from Hollywood's Mark Wahlberg and P.Diddy added
  • Launched in February 2020, CBDX is Europe's first medical cannabis-themed UCITS ETF
  • Follows rules-based process to identify and screen companies involved in the medical cannabis, hemp and CBD sectors
 
The Medical Cannabis and Wellness UCITS ETF (CBDX) underwent its quarterly re-balance on 28th February, resulting in the addition of four new constituents.

CBDX is the first UCITS ETF to provide exposure to the rapidly growing medical cannabis, CBD and hemp industries and was launched in January 2020 via HANetf’s unique white label UCITS ETF platform with Purpose Investments as sponsor.

CBDX tracks the rules-based Medical Cannabis and Wellness Equity Index from Solactive, that consists of publicly listed companies conducting legal business activities across nine thematic sub-sectors in the medical cannabis, hemp and CBD industries. The index methodology embeds a rigorous multi-tiered screening process to ensure that companies involved in the adult-use cannabis market are identified and removed.

The four new constituents enter the index with a combined weight of 13.6%:

Akerna Corp (NASDAQ: KERN) – Vertical: Ancillary Services - A software provider offering compliance and ERP technology to the medical cannabis and CBD industry. Akerna consolidates cannabis technology companies to connect data points in the global cannabis supply chain. Creates transparent and accountable consumer packaged goods supply chain with global scale.

The Alkaline Water Company (TSX: WTER) Vertical: CBD and Wellness – Backed with investment from Hollywood’s Mark Wahlberg and P.Diddy, The Alkaline Water Co is one of the fastest-growing enhanced water brands, the company produces fruit flavoured waters infused with CBD as well as topical and ingestible CBD products. Currently the 10th largest enhanced water brand in the United States, the company has a national distribution network and is working on leveraging this network to launch their CBD infused brands.

Tetra Bio-Pharma (CVE: TBP) - Vertical: Medical Cannabis -  A medical development company focussing on Cannabinoid-derived treatments to help address issues of chronic pain and ophthalmology, two of the largest addressable market segments in medical cannabis.

 Grow Generation Corporation (NASDAQ: GRWG) - Vertical: Ancillary Services- The largest hydroponics equipment supplier in the US, with over 25 sales/service centers in over 9 different states throughout the country. They offer a full suite of hydroponics products for new builds and ongoing grows alike.  

There were no deletions from the index during this rebalance.

Greg Taylor, CIO and Portfolio Manager at Purpose Investments, said:

 “The medicinal cannabis industry is getting larger and moving into a more mature phase of its development. This is being reflected in the addition of companies to the index that represent a more sophisticated and diverse market for cannabis products. As the use of medical cannabis becomes more widespread in the United States and elsewhere, we expect to see this trend continue in the months and years to come.”

Ignatius Faissal, Director of Product Management at HANetf said:

“The diversity of the medical cannabis industry is highlighted by the results of this rebalance, which has seen the inclusion of companies ranging from technology suppliers to water brands. Our ongoing monitoring, coupled with regular reviews ensure all constituents comply with the index rules and that we are capturing the full eligible opportunity set for investors.”


 
CBDX Product Information

 


Resources:

CBDX Fund Page

CBDX White Paper
 

About HANetf:


HANetf is an independent ETF specialist working with third-party asset managers to bring differentiated, modern and innovative ETF exposures to European investors.

Founded by two of Europe’s leading ETF entrepreneurs, Hector McNeil and Nik Bienkowski, HANetf provides a complete operational, regulatory, distribution and marketing solution for asset managers who want to successfully launch and manage UCITS ETFs.

www.hanetf.com

HANetf’s range of thematic ETPs:
 
Find out more about our ETPs on
https://www.hanetf.com/product-list
Ticker CCY
HAN-GINS Cloud Technology UCITS ETF SKYY
SKYP
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GBP
EMQQ Emerging Markets Internet & Ecommerce UCITS ETF EMQQ
EMQP
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The Medical Cannabis and Wellness UCITS ETF CBDX
CBDP
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HAN-GINS Innovative Technology UCITS ETF ITEK
ITEP
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HAN-GINS Indxx Healthcare Innovation UCITS ETF WELL
WELP
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KMEFIC FTSE Kuwait Equity UCITS ETF KUW8
KUWP
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The Royal Mint Physical Gold Securities ETC RMAU
RMAP
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About Purpose Investments

 
Purpose Investments is an asset management company with over $8 billion (CAD) in assets under management as of December 2019.

Purpose Investments has an unrelenting focus on client-centric innovation, and offers a range of managed and quantitative investment products.

Purpose Investments is led by well-known entrepreneur Som Seif and is a division of Purpose Financial, an independent technology-driven financial services company.
 
www.purposeinvest.com