A new market high: First ETF to target marijuana stocks

As the Trump administration considers renegotiating the historic trade agreement with its North American neighbors, Canada is pushing ahead with a trade that places it well ahead of the United States: a first-of-its-kind exchange-traded fund that invests in medical marijuana stocks. Whether the pioneering effort is good for investors is open to debate.

For investors who believe that the marijuana market will be a booming sector, the Horizons Medical Marijuana Life Sciences ETF (HMMJ), which starts selling on the Toronto Stock Exchange on Wednesday, offers a way to invest without taking on individual company risk. However, the ETF only holds a total of 14 stocks, and while billed as a global fund, 10 holdings are Canadian-based. The medical marijuana industry is more developed in Canada than in other nations, and cannabis could soon become legal for all Canadian adults.

Read More: CNBC