A Tiny Pot Fund With 250% Return Wants Some of the ETF Billions
- Cannabis Growth is third mutual fund to pursue a conversion
- Fund has attracted only $7 million since its 2019 inception
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The meteoric surge of pot ETFs is prompting one mutual fund to join the list of those seeking to tap into the abundance of cash flowing into the $6 trillion exchange-traded fund industry.
Hopes for cannabis legalization in the U.S. have fueled bets on massive profit growth and propelled ETFs tracking the sector to the top of the leaderboard this year. That’s encouraged Foothill Capital Management’s Cannabis Growth Fund (ticker CANNX) to file plans to convert into an ETF. The product has only garnered $7.4 million in assets since its 2019 start -- despite a surge of almost 250% in the past year. That compares with the $1.9 billion for the ETFMG Alternative Harvest ETF (ticker MJ), the largest pot ETF.