First Trust Portfolios filed an S-6 on May 30th with the Securities and Exchange Commission for a Medical Cannabis Portfolio Series - FT 6766 that is seeking above-average capital appreciation. The prospectus for the Unit Investment Trust has only been filed and not yet approved by the SEC.
According to the filing, the stocks included in the trust will be selected from the Indxx Cannabis Index, which has yet to be created. The index is described a "basket of publicly listed companies with significant business activities in the marijuana industry." The filing also states that the team of analysts will "thoroughly evaluate each company for inclusion in the portfolio based on each company's association with the medical aspects of cannabis as well as their analysis of other screens for liquidity constraints. The portfolio provides exposure to a diversified group of companies within the medical marijuana industry, thereby reducing single security risk."
Illinois-based First Trust is just the latest mainstream investment firm to target the cannabis industry. Canadian-based Horizons ETF Management just recently launched its Medical Marijuana Life Sciences ETF that began trading in April on the Toronto Exchange under the symbol HMMJ. It also trades in the OTC Market with the ticker HMLSF. Like the First Trust product, Horizons priced its ETF at C$10.00, but it is now trading at C$9.26. No matter, the fund is a winner and has raised C$112 million in assets as of May 30.
Read more at Forbes
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