Canadian CANNAINVESTOR Magazine October 2018 | Page 211

With the cannabis investment sector going through the roof in recent months as we approach October 17th, there has been great amounts of money pouring in, and shares of a significant number of companies doubling and more. I know I have mini heart-attacks from one day to the next, riding highs and dreading the lows. My risk tolerance has increased because of it, maybe because Iā€™m getting used to the volatility. What would attract an investor to the ETF that Evolve offers in this sector?

Using an actively managed ETF is a great way to take the emotions out of investing in a volatile sector because you are hiring professionals to make those decisions for you. Our ETF differentiates itself by offering the following:

1.Active management ā€“ diversification and the ability to avoid single stock market risk

2.Global mandate ā€“ opportunity to invest in countries outside of North America

3.Privates ā€“ the manager has the capability of investing up to 10% of the portfolio in unlisted issuers

At Evolve we use a momentum model to take advantage of volatility and also tend to favour the larger names which we think will perform better in the long run as the market matures.

How has SEED performed compared with the overall cannabis market recently?

Cannabis stocks have been on an upswing over the past month as investors anticipate the October 17th legalization date for the recreational marijuana in Canada. SEED is the best performing Canadian ETF through this period due to our momentum model and focus on the market leaders.

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