The Redwood Marijuana Opportunities Fund is one of the first Exchange Trade Funds (ETF) in the cannabis and industrial hemp industries. The company started trading yesterday in Toronto, Canada under the ticker MJJ. Investors will be able to buy, sell, and short cannabis stocks which in the end aims to create long term capital growth in the cannabis industry.
“Let’s not kid ourselves here: this is a high-risk, high-reward space,” added Mark Noble, Horizons’ senior vice-president of sales strategy. “Your primary way to get protection is through diversification.”
What is an ETF
ETF’s trade exactly like a common stock on any stock exchange, but it contains more liquidity. It is essentially a marketable security that tracks a commodity, bond, index, or a collection of assets like an index fund.