Tuesday , 22 October 2019


Cannabis Central: This Actively Managed ETF Consists Of 23 “Pot” Stocks

Purpose Marijuana Opportunities Fund ETF (NEO:MJJ) is Canada’s first actively managed cannabis fund, designed to help investors grow their portfolios by tapping into the burgeoning global cannabis industry.

The MJJ Objective

While the Fund primarily invests in equity securities, it also owns 7 other types of securities of publicly listed companies, including, but not limited to, ADRs, preferred shares, convertible securities, debt securities, subscription receipts, options and warrants giving this actively managed cannabis ETF the ability to navigate the many nuances that are part of the burgeoning industry, including volatility and industry consolidation.

Top 23 Holdings & ETF % Weight (as of May 31st/19)

  1. OrganiGram Holdings Inc. (TSXV:OGI, NASDAQ:OGI); 9.32%; Mkt. Cap: $1.4B; 52-wk H/L Price Spread: 2.7x; Beta: 9.7; www.organigram.ca
  2. HEXO Corp. (TSX:HEXO; NYSE:HEXO) 7.31%; Mkt. Cap: $1.6B; 52-wk H/L Price Spread: 2.8x; Beta: 4.0; www.hexo.com
  3. Aurora Cannabis Inc. (TSX:ACB: NYSE:ACB) 6.04%; Mkt Cap: $9.0B; 52-wk H/L Price Spread: 3.1x; Beta: 1.6; www.auroramj.com
  4. Canopy Rivers Inc. (TSXV:RIV) 5.07%; Mkt. Cap: $167.8M; 52-wk H/L Price Spread: 4.9x; Beta: 4.6; www.canopyrivers.com
  5. Origin House (CSE:OH, OTCQX:ORHOF); 4.57%; Mkt. Cap: $566.8; 52-wk H/L Price Spread: 3.1x; Beta: 2.2;  www.originhouse.com
  6. Harvest Health & Recreation Inc. (CSE:HARV, OTCQX:HRVSF); 4.16%; Mkt. Cap: $2.28B; 52-wk H/L Price Spread: 3.2x; Beta: 2.0; www.harvestinc.com
  7. Green Thumb Industries Inc. (CSE:GTII, OTCQX:GTBIF); 3.85%; Mkt. Cap: $2.1B; 52-wk H/L Price Spread: 3.9x; Beta: 3.1; www.gtigrows.com
  8. Curaleaf Holdings Inc. (CSE:CURA, OTCQX:CURLF); 3.63%; Mkt. Cap: $4.1B; 52-wk H/L Price Spread: 3.1x; Beta: -139; curaleaf.com
  9. Charlotte’s Web Holdings Inc. (TSX:CWEB, OTCQX:CWBHF); 3.39%; Mkt. Cap: $871.4M; 52-wk H/L Price Spread: 3.7x; Beta: 2.9; www.charlottesweb.com
  10. MediPharm Labs Corp. (TSXV:LABS) 3.22%; Mkt. Cap: $657.1M; 52-wk H/L Price Spread: 8.1x; Beta: -0.7; www.medipharmlabs.com
  11. Green Growth Brands Inc. (CSE:GGB, OTCQB:GGBXF); 3.14%; Mkt. Cap: $6.4B; 52-wk H/L Price Spread: 1.4x; Beta: 1.8; www.greengrowthbrands.com
  12. Valens GroWorks Corp. (CSE:VGW, OTCQB:VGWCF); 3.06%; Mkt. Cap: $514.8M; 52-wk H/L Price Spread: 5.0x; Beta: 5.8; www.valensgroworks.ca
  13. iAnthus Capital Holdings Inc. (CSE:IAN, OTCQX:ITHUF); 2.43%; Mkt. Cap: $526.7M; 52-wk H/L Price Spread: 2.6x; Beta: 1.1;  www.ianthuscapital.com
  14. Canopy Growth Corp. (TSX:WEED; NYSE:CGC); 1.99%; Mkt. Cap: $16.0B; 52-wk H/L Price Spread: 2.4x; Beta: 4.1; www.canopygrowth.com
  15. Abacus Health Products Inc. (CSE:ABCS) 1.92%; Mkt. Cap: $56.2M; 52-wk H/L Price Spread: 2.3x; Beta: -0.01; www.abacushp.com
  16. Trulieve Cannabis Corp. (CSE:TRUL, OTC Pink:TCNNF); 1.89%; Mkt. Cap: $1.5B; 52-wk H/L Price Spread: 2.6x; Beta: 3.3; www.trulieve.com
  17. Village Farms International Inc. (TSX:VFF)1.88%; Mkt. Cap: $654.0M; 52-wk H/L Price Spread: 6.1x; Beta: 3.8; www.villagefarms.com
  18. WeedMD Inc. (TSXV:WMD, OTCQX:WDDMF); 1.85%; Mkt. Cap: $172.9M; 52-wk H/L Price Spread: 2.5x; Beta: 3.1; www.weedmd.com
  19. SLANG Worldwide Inc. (CSE:SLNG); 1.81%; Mkt. Cap: $1.5B; 52-wki H/L Price Spread: 2.6x; Beta: 3.3; www.slangworldwide.com
  20. Khiron Life Sciences Corp. (TSXV:KHRN, OTCQB:KHRNF); 1.72%; Mkt. Cap: $241.9M; 52-wk H/L Price Spread: 5.0x; Beta: 4.5; www.khiron.ca
  21. CannTrust Holdings Inc. (TSX: TRST) 1.44%; Mkt. Cap: $151.1M; 52-wk H/L Price Spread: 4.9x; Beta: 4.5; www.canntrust.ca
  22. Cansortium Inc. (CSE:TIUM.U) 1.21%; Mkt. Cap: US$231.9M; 52-wk H/L Price Spread: 1.9x; Beta: N/A; cansortium.com
  23. Tilray Inc. (NASDAQ:TLRY) 1.21%; Mkt. Cap: $4.2B; 52-wk H/L Price Spread: 13.9x; Beta: 4.2; www.tilray.com

The Total Weight of the 23 constituents above is 76.11%.

Stock Exchanges:

  • 10 of the constituents are listed on the CSE,
  • 6 on the TSX,
  • 6 on the TSXV,
  • 1 on NASDAQ
  • and 2 listings are duplicated on the NYSE.

Sectors:

  • Cultivation: 49.55%
  • Integrated: 17.7%
  • Investing & Finance: 9.35%
  • Medical: 7.06%
  • Extraction: 3.51%
  • Cash: 12.09%
Allocation by Asset Class:
  • Canada: 63.94%
  • United States: 17.86%
  • International: 1.54%
  • Cash: 12.83%
  • Other: 16.65%

Assets Under Management: $35.2M

60-month Beta: 2.49

The index beta of 2.49 beta is considerably lower than the 4.2 and 3.3 betas, respectively, for the group of individual stocks I highlighted in my 2 previous articles entitled

YTD Performance: +24.9% (See chart here)

When my series of articles covering the marijuana “pot’ stock market is complete I will be providing weekly updates on the all the ETFs in the sector plus two other baskets of cannabis stocks that will be of interest to potential or current investors. Stay tuned.