The Evolve Marijuana ETF (SEED) is the top performer out of 504 equity ETFs listed on the Toronto Stock Exchange (TSX) for the 12-month period ended 28 February 2019.
SEED returned 48.48 per cent over this period, more than doubling the performance of the North American Marijuana Index during the same period.
The Evolve Marijuana ETF is actively managed by Evolve ETFs and is designed to provide Canadian investors with long-term capital appreciation by investing in a diversified mix of equity securities of issuers that are involved in the marijuana industry.
“The regulatory landscape in marijuana is developing rapidly as the rules around retail distribution take shape this year,” says Elliot Johnson, Chief Investment Officer at Evolve ETFs and Portfolio Manager for SEED. “Valuations are realigning with fundamentals as investors become more interested in actual operating businesses with real customers, brands and access to markets. We believe active management is essential in constructing a portfolio that holds businesses projected to become the dominant players as the market matures. Our portfolio construction and risk management processes make us well positioned to take advantage of the changes we expect in the coming year.”
While there is a general expectation that other countries will follow Canada in legalising marijuana, it remains illegal today in most of the world including the United States. SEED only invests in businesses that operate in jurisdictions where marijuana is legal and as a result, is the only actively managed cannabis ETF to qualify for a TSX listing.
“The past year has been a very productive one for Evolve with our Cyber Security ETF being Canada’s top performing equity ETF in 2018 followed by the strong performance of our Marijuana ETF,” says Raj Lala, President and CEO at Evolve. “Our ETF lineup encompasses long term themes or sectors with strong investment theses. CYBR and SEED are excellent examples, as they both achieved performance to place them in the top 5 over the past year. In terms of investing in the cannabis sector, we feel that investors will benefit from active management in a diversified portfolio.”