Cambria Cannabis ETF (TOKE)

Overview

The fund operates as an actively managed exchange-traded fund (ETF) with a primary focus on investing in the cannabis sector. By targeting Cannabis Companies, the fund aims to provide its investors with exposure to the growing cannabis industry, seeking to capitalize on the opportunities presented by companies involved in the cultivation, production, marketing, and sale of cannabis and its derivatives. Its investment strategy revolves around direct investments in cannabis companies as well as employing total return swaps, a financial instrument used to gain exposure to investment returns of cannabis companies without direct ownership of the underlying assets. This dual approach allows the fund to navigate the complex regulatory and market environments of the cannabis industry while aiming for total returns.

Products and Services

• Cannabis Company Investments
  

  The fund primarily invests in companies engaged in the cannabis industry. These investments can include stocks of companies that cultivate, process, distribute, or sell cannabis and its by-products. This forms the core of the fund’s portfolio, thereby offering investors direct exposure to the cannabis sector’s growth potential. By selecting companies across different sub-sectors of the cannabis industry, the fund aims to diversify its investments and mitigate sector-specific risks.

• Total Return Swaps on Cannabis Companies
  

  In addition to direct investments, the fund employs total return swaps as a means to achieve its investment objective. Total return swaps are derivative contracts through which the fund receives the total return of a specified cannabis company or index in exchange for a fixed or floating payment. This allows the fund to gain exposure to the returns of cannabis companies or indices without owning the underlying assets, offering a flexible and efficient investment tool to capitalize on the cannabis sector's potential upside while managing exposure to its inherent risks.