① Roundhill Cannabis etf will reduce the expense ratio from 0.40% to zero for at least one year; ② The CEO of the company said that Roundhill is providing fee waivers for etfs, making it easier for investors to invest in this field.
According to Caixin, Roundhill Investments, an asset management company, has taken action as US regulators are about to relax their control over cannabis.
According to a document submitted by Roundhill to the Securities and Exchange Commission (SEC) last week, the actively managed ETF - Roundhill Cannabis ETF (marijuana ETF, stock code: WEED) will reduce its fee rate from 0.40% to zero for at least one year from Monday.
Media analysis suggests that this measure means that Roundhill will exempt up to $5.6 million in management fees for ETF investors. Company CEO Dave Mazza said, "Marijuana may soon be classified as a Schedule III controlled substance, which could be a catalyst for the industry."
Mazza added that Roundhill is providing fee reductions to ETFs, making it easier for investors to invest in this area.
Roundhill, which focuses on providing innovative ETFs, launched the Magnificant Seven ETF (MAGS) last year, tracking seven stocks, including Nvidia, Google-A, Apple, Tesla, Amazon, Microsoft, and Meta, which was named the Best New ETF of the Year by ETF.com.
It is worth mentioning that the GLP-1 & Weight Loss ETF, which was previously introduced by Caixin, also came from Roundhill, with Lilly and Novo Nordisk as the top two holdings, as well as Zealand Pharma, Amgen, and other targets in the Japanese and Hong Kong markets.
As of June 30th, Roundhill's marijuana ETF tracked five companies headquartered in the United States, including Curaleaf, Green Thumb Industries, Trulieve Cannabis, Verano Holdings, and Cresco Labs.
Curaleaf and Green Thumb have a weight of over 30% in the ETF, while Trulieve is close to 20%. Since the beginning of this year, the ETF has risen by 7.69%, and at its peak, it rose by over 64%. According to media tracking data, many marijuana-related ETFs have received inflows of funds this year.
The marijuana market mainly benefits from the adjustment of US control levels. In May of this year, the US Department of Justice launched a public opinion solicitation process aimed at moving marijuana from the most severe Schedule I of the Federal Controlled Substances Act to Schedule III.
According to the definition of the Federal Controlled Substances Act, the current Schedule I for marijuana refers to substances that have no accepted medical use, a high potential for abuse, and a lack of safety assurances; while Schedule III substances have accepted medical uses, and their use may cause moderate/low physical dependence or high psychological dependence.
Some analysts point out that Biden's push for decriminalizing marijuana on the eve of the election is to attract the support of young voters.