CANNAINVESTOR Magazine U.S. Publicly Traded July / August 2019 | Page 153

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ETF actually stands for “Exchange Traded Fund”. Essentially an ETF is a basket of securities such as stocks that tend to track a particular index. Perhaps the most common know WTF you have heard of is the SPY, which corresponds to the S&P 500 Index. In our case, we are referring to two different ETFs that track the North American MOC Marijuana Index. Don’t let the fancy name of an ETF confuse you. It’s rather simple. In our case, It’s basically a basket of stocks that trade all under one symbol. You can buy and sell this as simple as buying and selling the stock of Canopy Growth or Tilray for example. In fact, if you like this particular fund this simplifies the process for you as you would only need to buy and sell one fund as opposed to managing each individual stock that makes up the fund and in turn saving you time and commission fees.