The Swissquote Cannabis Portfolio (ISIN CH0372704327), a certificate traded on the Swiss stock exchange (SIX), has delivered a 12.9% growth after one-month. Since inception on April 10, the delta one certificate is up nearly 26%, making it one of the best-performing certificates listed in the Swiss exchange during this period, according to Romain Le Baud, head forex & digital at Swissquote Bank.
The product's diversified portfolio is made up of cannabis industry leading firms - all listed companies that offer investors the potential to generate returns via a broad diversification approach, transparency, low cost, and daily liquidity.
'The diversified portfolio is designed to provide exposure to the performance of a basket of North American publicly listed companies with significant business activities in the marijuana industry,' stated Le Baud in a blog post. 'The portfolio selects from a current universe of companies that have operations that include one or more of biopharmaceuticals, medical manufacturing, distribution, bioproducts and other ancillary businesses related to the marijuana industry.'
Ranging from early-stage production and distribution to final consumption for personal and medical use (i.e. medicines, pain relief, cancer treatment, etc.), Swissquote's cannabis certificate provides full coverage of the marijuana industry, allowing for the highest expected returns, according to Le Baud.
'This new instrument is designed for investors who recognize the potential of flourishing cannabis industry but rather than taking the risk of investing in a single stock; they look for a structured product that is easy to trade and actively managed,' said Le Baud.
A popular investment theme across North America, cannabis has gained some momentum in Europe over the last couple of years. SRP has recorded over 300 structured products in Germany and Austria linked to companies involved in the cannabis industry, of which 262 products are still live.
As Canada moves to legalize recreational pot, the value of the nascent market continues to grow rapidly, according to Le Baud. 'By 2030, it is anticipated that the North American marijuana market will grow to a value of $75 billion,' he said.
German provider Lang und Schwarz has been a pioneer with cannabis-linked products and has marketed over 180 tracker certificates with reference assets such as the LUS Wikifolio-Index Cannabis, Cannabis Wheaton Income, and Marapharm Ventures. However, since the beginning of 2018, Commerzbank has also brought to market 140 turbo and discount certificates in Germany and Austria linked to cannabis companies such as Aurora Cannabis and Canopy.
Related stories:
Swissquote joins the green rush
Lang und Schwarz offer European investors quick highs
US provider seeks to light up portfolios with new marijuana-based tracker