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ETF Insight

Evolve launches a marijuana ETF, and Horizons adds its second

Canadian stocks dominate in both portfolios, with some Australian exposure.

Rudy Luukko 12 February, 2018 | 10:00PM
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The number of Canadian-listed exchange-traded funds specializing in the marijuana industry is doubling to four this week, with two contrasting strategies being rolled out by competing firms.

Evolve Marijuana (Symbol: SEED), which has a global mandate but starts out investing almost exclusively in Canada, opened for trading today on the Toronto Stock Exchange. It will be managed internally by Toronto-based Evolve Funds Group Inc., whose chief investment officer Kirk Cooper specializes in quantitative investing.

In selecting a portfolio of 25 stocks, Cooper employs quantitative techniques such as ranking stocks according to their short-term price momentum. This is combined with fundamental analysis, as well as risk constraints including ensuring that stocks have sufficient trading liquidity. Up to 10% of the portfolio can be invested in equity securities of unlisted issuers.

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About Author

Rudy Luukko

Rudy Luukko  Rudy Luukko is a freelance writer who contributes to Morningstar.ca on topics involving fund industry trends and regulatory issues. He retired in May 2018 from his position as editor, investment and personal finance, at Morningstar Canada, where he had worked since 2004. He has also worked as an editor and writer for various general, specialty and institutional media, and he has co-authored courses for the Canadian Securities Institute. Follow Rudy on Twitter: @RudyLuukko.

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