WEED ETF CONCENTRATES EXPOSURE IN LARGEST MULTI-STATE TRADERS AND REDUCES EXPENSE RATIO
WEED ETF now offers concentrated exposure to Tier 1 multi-state traders
The WEED ETF will charge an expense ratio of 0.39%, the lowest of any cannabis ETF
NEW YORK, October 12, 2022 /PRNewswire/ — Roundhill Investments, an ETF sponsor focused on innovative thematic funds, has 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 lower the WEED ETF’s net expense ratio to 0.39% until at least April 30, 2023*. Based on the fee waiver, WEED is now the cheapest cannabis ETF in the world.
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 US cannabis companies generating more than $500 million in annual income correspond most to this point of view.
From October 11, 2022ETF WEED maintained concentrated economic exposure to six MSOs: curafeuille Assets (34.5% weight), Green Thumb Industries (20.3% by weight), Trulieve Cannabis (17.2% by weight), Verano Holdings (14.4% by weight), Cresco Laboratories (8.7% weight), and Care British Columbia (4.2% weight).
*The gross expense rate is 0.75%. The Advisor has agreed to waive 0.36% of its management fee for the Fund until at least April 30, 2023.
For more information on the WEED ETF, please visit: www.roundhillinvestments.com/etf/weed/.
About Roundhill Investments:
Roundhill Investments is a US-based investment advisor focused on developing innovative exchange-traded products. The company’s product range currently represents more than $1 billion in assets under management. To learn more about the company, please visit roundhillinvestments.com.
Investors should carefully consider the investment objectives, risks, charges and expenses before investing. To obtain a prospectus or short form prospectus containing this and other information about the WEED ETF, please call 1-855-561-5728 or visit https://www.roundhillinvestments.com/etf/weed/. Read the prospectus and simplified prospectus carefully before investing.
Investing involves risk, including possible loss of principal. Since the Fund is “non-diversified”, it may invest a greater percentage of its assets in the securities of a single issuer or fewer issuers than if it were a diversified fund . Consequently, the Fund may be more exposed to associated risks and to developments affecting an individual issuer or a smaller number of issuers than a fund which invests more broadly. This may increase the volatility of the Fund and cause the performance of a relatively small number of issuers to have a greater impact on the performance of the Fund.
Businesses involved in the cannabis industry face intense competition, may have limited access to bank services, may have significant strains on company resources due to litigation, complaints or regulatory actions. execution, and are highly dependent on obtaining the necessary permits and authorizations to engage in medical activities. cannabis research or to cultivate, possess or otherwise distribute cannabis. Since the cultivation, possession and distribution of cannabis may be illegal under United States federal law, in certain circumstances, federally regulated banking institutions may be reluctant to make financial services available to cannabis producers and sellers.
Cannabis-related businesses are subject to various laws and regulations that may differ at the state/local and federal level. Laws and regulations relating to the possession, use (medical or recreational), sale, transportation and cultivation of marijuana vary around the world, and the Fund will only invest in non-US cannabis companies if these companies operate legally in the relevant jurisdiction. These laws and regulations can (i) significantly affect a cannabis-related business’s ability to obtain financing, (ii) impact the market for the sales and services of the marijuana industry, and (iii ) set limits on the use, production, transportation and storage of marijuana.
Additionally, cannabis-related businesses are subject to risks associated with the agricultural industry as a whole, including changes or trends that affect commodity prices, labor costs, weather and laws and regulations related to environmental protection, health and safety. Cannabis businesses may also be exposed to the risks associated with the biotech and pharmaceutical industries. These risks include increased government regulation, the use and enforcement of intellectual property rights and patents, technological change and obsolescence, product liability claims, and the risk that research and development may not not necessarily lead to commercially successful products.
As an ETF, the fund may trade at a premium or discount to the net asset value. Shares of any ETF are bought and sold at market price (not net asset value) and are not individually redeemed by the Fund. Due to the costs of buying or selling Shares, including brokerage commissions imposed by brokers and bid/ask spreads, frequent trading of Shares may significantly reduce investment results and an investment in Shares may not be recommended for investors who plan to make small investments on a regular basis. The Fund is a recently incorporated investment company with no operating history. Please see the prospectus for more details on these and other risks.
Roundhill Financial Inc. acts as investment advisor. Funds are distributed by Foreside Fund Services, LLC which is not affiliated with Roundhill Financial Inc., US Bank, or any of the companies or persons referenced herein.