REX Shares (REX) has added to its MicroSectors lineup with the launch of MJO, the first leveraged exchange-traded product in the US linked to the cannabis industry. MJO, an Exchange-Traded Note (ETN), is linked to MSMJ, the Indxx MicroSectors North American Cannabis Index, and will seek to provide 2x leveraged exposure to the Index.In addition, REX announced the launch of MJJ, a 1x version of the Exchange Traded Notes linked to the Index. The MicroSectors Cannabis 2x Leveraged ETN (symbol: MJO) and MicroSectors Cannabis Index ETN (symbol: MJJ) started trading today on NYSE Arca. The ETNs are senior, unsecured obligations issued by the Bank of Montreal.The Index provides a quarterly IPO review for new issuances and a quarterly review for stocks facing potential regulatory bars to engaging in the cannabis industry. The Index selects U.S. and Canadian constituents from five key sub-themes: Cultivator, Pharmaceuticals, Testing & Analytics, Industrial Hemp, and Ancillary. Companies are screened as either pure play or quasi play depending on the percentage of revenue that is derived from Cannabis.REX sees large demand for ETNs in this sector. “We created the MicroSectors lineup to innovate the ETP landscape and launch ‘first of’ products like this first 2x Cannabis ETN in the United States,” says Scott Acheychek, President of REX. “BMO has been a great partner and we enjoyed working with Indxx for the first time on this index. We are all thrilled to launch these ETNs. They represent a tremendous step forward for cannabis stock investing and trading, and we believe they are providing many US investors with the targeted North American cannabis industry exposure they’re looking for.” As the first leveraged exchange-traded cannabis product available in the US, MJO opens up new trading possibilities for sophisticated investors. “We’re particularly excited about providing US tactical investors with daily 2x leveraged exposure to the cannabis industry,” Acheychek says. “We think it will serve as a valuable additional tool in investors’ trading toolkits.”
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