Investment adviser launches the first ETF dedicated to professional sports teams and leagues

Knicks Fans
Knicks fans return to the Garden as the first-ever sports ETF goes live.

Roundhill Investments and Huddle Up newsletter founder Joe Pompliano launched the first-ever exchange-traded fund dedicated to professional sports teams and leagues on Wednesday.

The ETF consists of 36 sports-related holdings including sports teams, leagues, media companies, and even sports-related SPACs. The fund will trade under the ticker “MVP” on the New York Stock Exchange.

As of March 17, the MVP ETF consisted of 53.9% pro sports teams, 17.4% apparel companies, 14.1% pro sports leagues, 8.3% SPACs, and 6.2% media firms and others.

Sports teams in the ETF include the New York Knicks, New York Rangers, Atlanta Braves, Manchester United, Juventus, Borussia Dortmund, and AS Roma.

Professional sports league holdings include Formula One and WWE. Companies within the sports media and sports apparel sectors in the ETF include Nike, Puma, Adidas, and MSG Networks.

MVP’s largest holding is Madison Square Garden Sports Corp. at 9.39% of the total ETF value.

After the launch of MVP, Roundhill Investments will have five ETFs with combined assets under management of over $650 million. Roundhill also started ETFs like the BITKRAFT Esports & Digital Entertainment ETF and the Sports Betting & iGaming ETF.

In a substack letter to investors, MVP partner Joe Pompliano lauded the ETF’s promise given the professional sports industry, the consistent appreciation of sports teams and leagues, increased media rights, and an expanding sports betting market.

“Professional sports leagues and teams have a history of being premium, scarce assets with a strong history of value appreciation. With MVP, we have created a unique and efficient vehicle for you to adequately invest and diversify into the sector,” Pompliano wrote.

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The first US cannabis ETF surpassed $1 billion in AUM in its first 6 months of trading

Cannabis marijuana pruned
Cannabis plants are pruned at a grow facility in Oregon

The AdvisorShares Pure US Cannabis ETF has surpassed $1 billion in assets under management, according to a company statement released Tuesday.

The ETF, which trades under the ticker MSOS, launched on September 2, 2020 and has grown from $2.5 million in assets to now $1 billion in just six months. The fund has returned 110% since its inception and 37% in 2021 alone.

The AdvisorShares ETF was the first US exchange traded fund to focus solely on American cannabis companies and multi-state operations (MSOs), or companies directly involved in the legal production and distribution of cannabis. 

The fund’s inflows are a sign of growing investor interest in the cannabis space amid speculation that the Biden administration will keep its campaign promises and decriminalize marijuana. Some Democrats in Congress have pushed even further, advocating for the full legalization of cannabis in the US. 

“There’s a lot of excitement surrounding the cannabis investment space right now and for a variety of reasons,” said Dan Ahrens, AdvisorShares’ chief operating officer and portfolio manager of MSOS. “We firmly believe that the U.S. cannabis market provides a compelling long-term investment opportunity that clearly differentiates itself from other areas of the globe.” 

Other cannabis ETFs have also  performed well in 2021. Even after shedding gains from earlier this month, the ETFMG Alternative Harvest ETF is up 63% year-to-date, while the Amplify Seymour Cannabis ETF is up 81% year-to-date.

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