Although cannabis ETFs like ours have been around for several years now, there still appears to be some confusion as it relates to their impact on the underlying stocks, in particular U.S. plant touching names that are held on swap. Here’s my best attempt to explain:
In a “normal” ETF (i.e. a non swap-based product), creations work as follows:
If you are buying 100 shares of ETF XYZ, there are broadly two types of sellers.
The first is a “natural” seller, a market participant th...