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An employee with medicinal marijuana plants in the flowering room at Tweed INC. in Smith Falls, Ontario, on December 5, 2016.
That doesn’t mean American investors will necessarily be turned away from getting on board with the investment opportunity. Americans can buy ETFs on the Toronto Stock Exchange, as long as their brokerage platform allows it.
Most brokerages will first require the American or any other foreign buyer to first purchase Canadian Dollars to use to execute the trade.
Vanguard, a low-cost online brokerage firm, said that for American investors to get on board, “the ETF has to have a US Pink Sheet equivalent registered in the US and be traded in the Over-the-Counter (OTC) Market.”
“We do not hold securities in foreign currencies; therefore, we need the US-registered security in order to settle the trade in USD,” a representative told NBC News.
However, TD Ameritrade “does not offer trading on non-US exchanges for exchange traded products,” so you should check with your broker first before getting too excited about this hot new investment.
The ETF’s annual management fee is 0.70% of its value and since it’s new, its operating expenses and trading costs are not yet available.
