A new type of mutual fund has emerged that promises to boost returns on cannabis investment vehicles.
Read moreRead moreThe investment adviser, investment analyst and investment in cannabis investor David Shoup, is betting on a new type to help investors get the most out of their investment dollars.
Shoup is a cannabis investment expert who has previously advised clients on cannabis stocks and is a former portfolio manager at one of the biggest cannabis funds in the world.
The Vanguard ETF is currently available for sale at over $1,200 per share, and Shoup says it is a great fit for investors looking for low-cost, diversified cannabis investment strategies.
“It’s a very diversified ETF.
It’s a lot more diversified than ETFs that are typically held by institutional investors, like the S&P 500,” Shoup said.
“It’s also a lot smaller than most ETFs.”
Shoup said the fund also comes with an incredible selection of ETFs, including ETFs managed by major cannabis investment companies.
“They’ve got a number of ETF companies that are managed by these top-tier companies, and the biggest of them is ArcView, and it’s one of their largest companies,” he said.
“And then there’s also ETFs from the major cannabis companies.
So, they have ETFs for a variety of different sectors of cannabis.”
The Vanguard Cannabis ETF has about 40 ETFs on its balance sheet, which include ETFs based on the cannabis industry.
Shoup estimates that at least 10% of the total assets of the fund are managed from within the United States.
“The only downside to it is that it has a very limited selection,” Shoop said.
For the most part, Shoup sees the ETF as a great tool for anyone who wants to get into the cannabis space and is looking for a safe investment.
“For anyone who’s a new investor, it’s really simple, and if you’re a beginner investor or a new to ETFs or a novice investor, that’s really a great investment for them,” Shup said.
Shoop said that while it might seem like an expensive investment, he has not seen any issues with the fund’s performance.
“We’ve had a few investors who have taken advantage of this fund, and they’ve had great returns,” he explained.
“We’ve also had people that have taken a gamble, and we’ve also seen some people that are still in a state of limbo or uncertainty.”
Shoop also has one caveat: investors should keep in mind that the fund will be available only through a direct purchase order, so it’s unlikely that people will be able to use it as a one-time buy.