WEED ETF now provides concentrated exposure
to Tier 1 multi-state operators
WEED ETF to charge 0.39% expense ratio,
lowest of all cannabis ETFs
NEW
YORK, Oct. 12, 2022 /PRNewswire/ -- Roundhill
Investments, an ETF sponsor focused on innovative thematic funds,
has re-focused the exposure of its Roundhill Cannabis
ETF (CBOE BZX: WEED) to exclusively target the largest
and most-liquid U.S. multi-state operators ("MSOs"). In addition,
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 lowest-cost cannabis ETF
globally.
Due to current macroeconomic conditions, including high interest
rates and persistent inflation, Roundhill believes that the
cannabis companies with the lowest costs of capital and strongest
relative balance sheets are best positioned to survive a downturn
and increase market share. Tier 1 MSOs, defined as U.S. cannabis
companies generating in excess of $500
million in annual revenues, most closely align with this
view.
As of October 11, 2022, the
WEED ETF maintained concentrated economic exposure to six MSOs:
Curaleaf Holdings (34.5%
weight), Green Thumb Industries (20.3%
weight), Trulieve Cannabis (17.2% weight),
Verano Holdings (14.4% weight), Cresco
Labs (8.7% weight), and Columbia Care
(4.2% weight).
*The gross expense ratio 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 WEED ETF please visit:
www.roundhillinvestments.com/etf/weed/.
About Roundhill
Investments:
Roundhill Investments is a U.S.-based investment adviser focused
on developing innovative exchange-traded products. The firm's
product lineup currently accounts for more than $1 billion in assets under management. To learn
more about the company, please visit roundhillinvestments.com.
Investors should consider the investment objectives, risk,
charges, and expenses carefully before investing. For a prospectus
or summary prospectus with this and other information about the
WEED ETF please call 1-855-561-5728 or visit the website
https://www.roundhillinvestments.com/etf/weed/. Read the prospectus
and summary prospectus carefully before investing.
Investing involves risk, including possible loss of principal.
Because the Fund is "non-diversified," it may invest a greater
percentage of its assets in the securities of a single issuer or a
lesser number of issuers than if it was a diversified fund. As a
result, the Fund may be more exposed to the risks associated with
and developments affecting an individual issuer or a lesser number
of issuers than a fund that invests more widely. This may increase
the Fund's volatility and cause the performance of a relatively
small number of issuers to have a greater impact on the Fund's
performance.
Companies involved in the cannabis industry face intense
competition, may have limited access to the services of banks, may
have substantial burdens on company resources due to litigation,
complaints or enforcement actions, and are heavily dependent on
receiving necessary permits and authorizations to engage in medical
cannabis research or to otherwise cultivate, possess or distribute
cannabis. Since the cultivation, possession, and distribution of
cannabis can be illegal under United
States federal law under certain circumstances, federally
regulated banking institutions may be unwilling to make financial
services available to growers and sellers of cannabis.
Cannabis-related companies are subject to various laws and
regulations that may differ at the state/local and federal level.
Laws and regulations related to the possession, use (medical or
recreational), sale, transport and cultivation of marijuana vary
throughout the world, and the Fund will only invest in non-U.S.
Cannabis Companies if such companies are operating legally in the
relevant jurisdiction. These laws and regulations may (i)
significantly affect a cannabis-related company's ability to secure
financing, (ii) impact the market for marijuana industry sales and
services, and (iii) set limitations on marijuana use, production,
transportation, and storage.
In addition, cannabis-related companies are subject to the risks
associated with the greater agricultural industry, including
changes to or trends that affect commodity prices, labor costs,
weather conditions, and laws and regulations related to
environmental protection, health and safety. Cannabis-related
companies may also be subject to risks associated with the
biotechnology 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 lawsuits, and the risk that
research and development may not necessarily lead to commercially
successful products.
As an ETF, the fund may trade at a premium or discount to NAV.
Shares of any ETF are bought and sold at market price (not NAV) and
are not individually redeemed from 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 advisable for investors who anticipate regularly making
small investments. The Fund is a recently organized investment
company with no operating history. Please see the prospectus for
details of these and other risks.
Roundhill Financial Inc. serves as the investment advisor. The
Funds are distributed by Foreside Fund Services, LLC which is not
affiliated with Roundhill Financial Inc., U.S. Bank, or any of the
companies or individuals referenced herein.
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SOURCE Roundhill Investments