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MicroSectors launches first leveraged ETNs in the North American marijuana sector

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REX Shares’ president Scott Acheychek has announced the launch of the first leveraged ETNs offering exposure to the cannabis industry in North America.

MJO offers two times leveraged exposure to the MSMJ index while the MJJ is an unleveraged version based on the same index. Acheycheck, whose BMO & REX Shares’ MicroSectors range won Best Alternative ETF Provider in the 2019 US ETF awards, says: “This is very much an emerging industry that has been regulatory news and headline driven and heavily traded in the single stock space – but there has been a gap in sector trading vehicles for cannabis.”

 
The Index selects US and Canadian constituents from five key sub-themes: Cultivator, Pharmaceuticals, Testing & Analytics, Industrial Hemp, and Ancillary. Companies are screened as either pure-play or quasi-play depending on the percentage of revenue that is derived from Cannabis. The Index provides a quarterly IPO review for new issuances and a quarterly review for stocks facing potential regulatory bars to engaging in the cannabis industry.
 
Acheychek says: “We are the first in the market with a leveraged product that provides tactical exposure to the industry which is more than just cultivators, who are highly volatile. We can take a step back and look at the entire eco-system of everything that is going on in the industry.”
 
The cannabis industry in North America has proved to be a popular target for investors over recent years.
 
 “The space is very much a popular one with traders and investors. Some of the underlying stocks have been some of the highly traded and popular single stocks in North America bringing them one package with it all in will fill a need,” Acheychek says.

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