Earlier this month the world’s first exchange-traded fund launched on the Toronto Stock Exchange.
According to the Economist, the fund will track the North American Medical Marijuana Index.
Canada is a logical location for this fund, as the country has long allowed medicinal marijuana and is now moving towards a countrywide legalization of recreational pot. A majority of the companies listed on the exchange currently operate in Canada.
The index also lists companies that do not directly produce pot or cannabis-related products, but directly benefits the industry, like Scotts Miracle-Gro.
The Economist article reported that anticipation about broader legalization in Canada has led to some of the listed companies being traded like “speculative tech stocks.” For instance, shares in Toronto-based cannabis company Aphria, the largest in the index, have increased 89% in the past six months.
The next largest company in the index, Aurora Cannabis or Alberta, has grown 50% in the same period.
