Vanguard Developed Markets Index Fund Form N-Q SEC Filing Reveals Investments in 3 Canadian Cannabis Companies
The world’s largest mutual fund company revealed in an SEC filing that it has invested into the three largest Canadian cannabis producers. Vanguard’s $110 billion Developed Market Index Fund, which has multiple classes that include 4 mutual funds and an ETF, filed a Form N-Q for the period ending March 31, 2018 this week that shows ownership in Aphria (TSX: APH) (OTC: APHQF), Aurora Cannabis (TSX: ACB) (OTC: ACBFF) and Canopy Growth (TSX: WEED) (NYSE: CGC):
- Aphria – 759,384 shares
- Aurora Cannabis – 2,450,644 shares
- Canopy Growth – 879, 776 shares
Based on the current prices in U.S. dollars, the investments represent approximately $47 million. While this is a small part of the fund’s total value, the stakes represent about 0.4% of the overall market capitalization of the three companies. The fund, which is passively managed, “provides a convenient way to match the performance of a diversified group of stocks of large-, mid-, and small-cap companies located in Canada and the major markets of Europe and the Pacific region,” according to its operator.
As the global legal cannabis industry matures, index funds and mutual funds are likely to play an increasingly larger role as owners of the stocks. Aurora Cannabis was added to the S&P/TSX Composite Index in March, joining Aphria and Canopy Growth. There are several cannabis-focused funds trading as well.