Evolve U.S. Marijuana ETF Will Begin Trading on the NEO Exchange on April 17, 2019
TORONTO, April 16, 2019 /CNW/ - Evolve Funds Group Inc. ("Evolve") is pleased to announce that it has filed its final prospectus to launch the Evolve U.S. Marijuana ETF ("USMJ"). USMJ will be the world's first ETF focused on the U.S. marijuana industry. Units of ticker symbol USMJ have been approved for listing on the NEO Exchange ("NEO") and will begin trading on April 17, 2019.
USMJ is designed to provide investors with long-term capital appreciation by actively investing in a diversified mix of equity securities of public issuers that are involved in the U.S. marijuana industry where state and local laws regulate and permit such activities. Evolve will act as portfolio manager for USMJ, providing investors with breadth and depth of expertise in the cannabis space, as exemplified through the performance of the Evolve Marijuana Fund ("SEED"), seen in the chart below.
"The cannabis opportunity in the U.S. is similar to that of Canada a couple of years ago, but in many respects has the potential to be exponentially larger," said Raj Lala, President and CEO at Evolve. "In the U.S., 10 states have legalized recreational use and 33 states have legalized medical use. Given the population in the U.S. compared to Canada, there are some U.S. cannabis companies generating more revenue than Canadian producers, albeit with much smaller market caps."
A passive index provides investors with broad exposure to the market, however, active management is essential in the burgeoning cannabis space given the ongoing regulatory environment and the significant volatility of the cannabis sector.
USMJ may invest in equity securities of companies listed domestically and globally, and other companies, with business activities in the U.S. recreational and/or medical marijuana industry. Evolve will employ an investment process that combines quantitative techniques, fundamental analysis and risk management to the portfolio. USMJ will be denominated in Canadian dollars. USMJ will incorporate a dynamic foreign-exchange strategy to hedge back to the Canadian dollar, at the discretion of Evolve.
SEED is Canada's top performing TSX-listed equity ETF over the past one year, ending March 29, 2019. SEED is Canada's top performer out of 508 equity ETFs listed on the TSX.1 Evolve's portfolio management team has generated a return of 58.43% over this period, and more than doubled the performance of the North American Marijuana Index since inception of SEED.
Annual Total Returns2 (as at March 29, 2019)
Evolve ETF & Index
Evolve Marijuana Fund
North American Marijuana Index
Source: Bloomberg. Performance since inception of SEED on February 12, 2018
"We believe there are significant near-term catalysts that will cause the U.S. market to expand rapidly," said Elliot Johnson, Chief Investment Officer at Evolve ETFs and Portfolio Manager for SEED and USMJ. "There are several laws currently making their way through Congress that would expand legalization of recreational cannabis and give those companies better access to banking and capital. The U.S. will be positioned to become the largest cannabis market globally."
About Evolve Funds Group Inc. With assets under management of over $450 million, Evolve is Canada's fastest growing ETF provider since launching its first suite of ETFs on September 20, 2017. As a leader in thematic ETFs, Evolve specializes in bringing innovative ETFs to Canadian investors. Evolve's suite of ETFs provide investors with access to: (i) long term investment themes; (ii) index-based income strategies; and (iii) some of the world's leading investment managers. Established by a team of industry veterans with a proven track record of success, we create investment products that make a difference. For more information, please visit www.evolveetfs.com.
1 As ranked by the Bloomberg Canadian TSX-listed equity category, as at March 29, 2019.
2 The rates of return shown in the table are used only to illustrate the effect of the compound growth rate and are not intended to reflect future values of the ETF or returns on investment in the ETF. Total return performance calculations reflect performance from March 30, 2018 to March 29, 2019 on a trailing basis and are subject to change daily.
Commissions, management fees, expenses and applicable sales taxes all may be associated with an investment in the exchange traded funds managed by Evolve Funds Group Inc. (the "ETFs"). The indicated rates of return are the historical annual compounded total returns including changes in per unit value and reinvestment of all dividends or distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. ETFs are not guaranteed, their values change frequently and past performance may not be repeated. The prospectus contains important detailed information about the ETFs. Please read the prospectus before investing.
Certain statements contained in this news release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to a future outlook and anticipated distributions, events or results and may include statements regarding future financial performance. In some cases, forward-looking information can be identified by terms such as "may", "will", "should", "expect", "anticipate", "believe", "intend" or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information. Evolveundertakes no obligation to update publicly or otherwise revise any forward-looking statement whether as a result of new information, future events or other such factors which affect this information, except as required by law.
About Evolve ETFs Evolve specializes in bringing innovative ETFs to Canadian investors. Evolve's suite of ETFs provide investors with access to: (i) long term investment themes; (ii) index-based income strategies; and (iii) some of the world's leading investment managers....