Roundhill refocuses exposure to WEED and reduces expense ratio

Roundhill Investmentssponsor of ETF focused on innovative thematic funds, refocused the exposure of its Roundhill Cannabis ETF (CBOE BZX: WEED) to exclusively target the largest and most liquid US Multistate Operators (MSOs). Additionally, Roundhill has agreed to reduce WEED’s net expense ratio to 0.39% until at least April 30, 2023.

Due to current macroeconomic conditions, including high interest rates and persistent inflation, Roundhill believes that cannabis companies with the lowest capital costs and strongest relative balance sheets are best positioned to survive a downturn. and increase their market share. Tier 1 MSOs, defined as U.S. cannabis companies generating more than $500 million in annual revenue, fit this view the most.

As of October 11, WEED maintained concentrated economic exposure to six MSOs: Curaleaf Holdings (with a weighting of 34.5%), Green Thumb Industries (20.3%), Trulieve Cannabis (17.2%), Verano Holdings (14 .4%), Cresco Labs (8.7%) and Columbia Care (4.2%).

Launched on 4/20 (cute), WEED was designed to provide exposure to the cannabis industry.

“While publicly traded cannabis companies have recently underperformed, we believe the cannabis market may be entering an inflection point in terms of profitability and regulatory momentum,” said Will Hershey, CEO of Roundhill. , in a press release announcing the launch of the fund. “We wanted to provide investors with a comprehensive vehicle to invest in the space, and…we believe WEED has the potential to become the benchmark for the entire industry. WEED allows US retail and institutional investors exposure to US operators, potentially before positive legislation is passed.

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Sallie R. Loera