The Cannabis ETF Currently Holds Positions in 35 North American Cannabis Stocks
It was announced earlier this week that the New York Stock Exchange (NYSE) listed a brand new cannabis ETF simply called ‘The Cannabis ETF’. The new pure-play cannabis ETF trades on the NYSE Arca under the ticker ‘THCX’. The new passively managed ETF includes a mix of marijuana stocks from the United States and Canada in its portfolio.
The Cannabis ETF (NYSE: THCX) was created and launched by Innovation Shares, a sponsor of unique thematic exchange-traded funds, and is the first cannabis-focused ETF to trade on the NYSE without exposure to alcohol and tobacco companies. Unlike the other cannabis ETFs, THCX will rebalance its portfolio on a monthly basis instead of the typical quarterly rebalance.
“Rebalancing on a monthly basis not only allows the fund to take advantage of a constantly evolving cannabis capital markets environment but should help smooth out some of the longer term volatility that is often associated with a burgeoning industry. This is a chance for serious investors who recognize the potential of a generational investment opportunity but have wavered on buying specific stocks,” said Matt Markiewicz, Managing Director, Innovation Shares in an email to Forbes.
“As a pure-play cannabis ETF, THCX focuses on companies in the legal marijuana, CBD and hemp industries – the portfolio does not rely on alcohol or tobacco stocks to provide exposure to this burgeoning global growth story,” added Matt Markiewicz. “Investors entering the cannabis space have demanded a diversified, liquid and cost-efficient vehicle to invest in the ‘green rush’ and we are ready to deliver on that ask.”
The THCX ETF is available at a 70 bps management fee which is cheaper than the other 2 U.S. listed cannabis ETFs. The ETFMG Alternative Harvest ETF (NYSE: MJ) has a 0.75% management fee, and The AdvisorShares Pure Cannabis ETF (NYSE: YOLO) has a net expense ratio of 0.74%.
The Cannabis ETF currently holds 35 cannabis stocks in its portfolio which Innovation Shares expect to see benefit from the rise of the global cannabis market which is expected to reach $630 billion by 2040.
“With several regulatory catalysts on the horizon in the U.S. and abroad, the current cannabis environment presents an exciting opportunity for investors. One area which has witnessed explosive growth since the signing of last year’s U.S. Farm Bill is the hemp-derived CBD industry. Several of the companies in the portfolio are actively participating in this CBD boom by cultivating hemp, providing extraction services or by using CBD for applications in the pharmaceutical, health, and consumer wellness markets,” stated Matt Markiewicz.
- Canopy Growth (TSX: WEED) (NYSE: CGC)
- Aurora Cannabis (TSX: ACB) (NYSE: ACB)
- Cronos Group (TSX: CRON) NASDAQ: CRON)
- Tilray (NASDAQ: TLRY)
- HEXO (TSX: HEXO) (NYSE-A: HEXO)
- Aphria (TSX: APHA) (NYSE: APHA)
- Aleafia Health (TSX: ALEF) (OTCQX: ALEAF)
- Organigram (TSXV: OGI) (NASDAQ: OGI)
- The Green Organic Dutchman (TSX: TGOD) (OTCQX: TGODF)
- CannTrust (TSX: TRST) (NYSE: CTST)
- Supreme Cannabis (TSX: FIRE) (OTCQX: SPRWF)
- MediPharm Labs (TSXV: LABS) (OTCQX: MEDIF)
- WeedMD (TSXV: WMD) (OTCQX: WDDMF)
- Emerald Health (TSXV: EMH) (OTCQX: EMHTF)
- Charlotte’s Web (CSE: CWEB) (OTCQX: CWBHF)
- Village Farms (TSX: VFF) (NASDAQ: VFF)
- GW Pharmaceuticals (NASDAQ: GWPH)
- Innovative Industrial Properties (NYSE: IIPR)
- Scotts Miracle-Gro (NYSE: SMG)
- Cara Therapeutics (NASDAQ: CARA)
- Zenabis Global (TSX: ZENA) (OTCPK: ZBISF)
- Neptune Wellness (TSX: NEPT) (NASDAQ: NEPT)
- Canopy Rivers (TSXV: RIV) (OTCPK: CNPOF)
- VIVO Cannabis (TSXV: VIVO) (OTCQX: VVCIF)
- Auxly Cannabis (TSXV: XLY) (OTCQX: CBWTF)
- Arena Pharmaceuticals (NASDAQ: ARNA)
- Flowr Corp (TSXV: FLWR) (OTCPK: FLWPF)
- Khiron Life Sciences (TSXV: KHRN) (OTCQB: KHRNF)
- New Age Beverages (NASDAQ: NBEV)
- Radient Technologies (TSXV: RTI) (OTCQX: RDDTF)
- Corbus Pharmaceuticals (NASDAQ: CRBP)
- Cree Inc. (NASDAQ: CREE)
- Greenlane Holdings (NASDAQ: GNLN)
- Pharmacielo Ltd (TSXV: PCLO) (OTCPK: PHCEF)
- Parkland Fuel (TSX: PKI) (OTCPK: PKIUF)
Investors looking for additional information on Innovation Shares are encouraged to visit the company’s website here.
About Innovation Shares LLC:
Innovation Shares builds cutting-edge portfolios around growing and disruptive thematic investment trends. The true innovation behind its strategy is the AI-powered natural language processing algorithm used to help identify sentiment around themes and relevant stocks.
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