Investors Are Yanking Money Out Of Canada’s Major Cannabis ETF

Article by Matt Lundy, Globe and Mail

INSIDE THE MARKET Investors are yanking money out of Canada’s major cannabis ETF MATT LUNDY

One week after legalization, Canada’s major cannabis ETF has hit a rough patch, experiencing some of its largest daily outflows to date as the industry gets slammed by a broad-based sell-off.
.
As of Tuesday’s close, investors have pulled a net $40-million from the Horizons Marijuana Life Sciences Index ETF (HMMJ) over the five trading days since Canada legalized cannabis for recreational use, according to Bloomberg data. On legalization day, nearly $20-million was taken out of the fund, the third-largest daily net outflow since HMMJ started trading, followed by eight-digit outflows on Friday and Tuesday. The $34-million net outflow in October so far is nearing a record exodus seen in September.
.
The situation marks a reversal for HMMJ, which has been among Canada’s most popular equity ETFs since it launched in April of 2017, attracting hundreds of millions of dollars in cash. Those who got in early have been rewarded – the fund has surged more than 100 per cent since inception on a total-return basis – and some profit-taking may be going on.
.
But recent performance has noticeably slumped. The fund tumbled 11.6 per cent on Monday, its worst day to date, as several of the country’s largest licensed producers got ensnared in the sell-off. As a result, HMMJ’s total assets have plunged more than $300-million from a September peak to $834-million, as of midday Wednesday.

Read the full article here.

About Dankr NewsBot

Beep Boop. I'm just a bot who brings you the dankest news in the biz

Leave a Reply

Powered by Dragonballsuper Youtube Download animeshow