Following the success of the first cannabis-focused exchange-traded fund (ETF), the Horizons Medical Marijuana Life Sciences ETF (TSX: HMMJ) (OTC: HMLSF), which has quickly exceeded C$120mm in assets since its launch in April, Cambria ETF Trust has filed a preliminary prospectus Form N-1A with the SEC to register the Cambria Marijuana Industry ETF. The seven-person firm Cambria Investment Management, based in El Segundo, California, will serve as Investment Adviser, with Mebane Faber and Eric W. Richardson as the portfolio managers. The company currently manages nine ETFs and, in addition to the proposed cannabis ETF, has filed to introduce four others as well.
The preliminary prospectus has few details, but Cambria has secured the NYSE trading symbol “TOKE” for the fund, which has an objective of “capital appreciation from investments in the global equity markets that have exposure to the broad marijuana industry.” The type of companies in which the ETF intends to invest is much less restrictive than the Horizons ETF. Unlike HMMJ and the still pending ETF from ETF Managers announced in February that both included a customized index managed by Soloactive, Cambria, an actively managed ETF, won’t be tracking an index.
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