The actively managed cannabis-focused exchange-traded fund (ETF) aims to expose investors to the “fast-developing global cannabis industry,” according to a press release.
Tim Seymour, CIO of Seymour Asset Management and CNBC’s Fast Money co-host, will be the ETF’s portfolio manager and will base decisions on factors including: public regulatory findings, third party research and his own evaluations of company financials.
“The global legal cannabis industry is still very much in its infancy and presents an attractive growth opportunity for investors looking to capitalize on this emerging frontier,” said Seymour.
The Amplify Seymour Cannabis ETF currently has 25 holdings, all of which are federally legal in the countries in which they operate and fall within three categories: cannabis and hemp cultivation, agricultural technology and ancillary companies in the cannabis industry.
Eighty percent of the companies on the new ETF make 50 percent or more of their revenue from the cannabis and hemp markets.
Christian Magoon, CEO and founder of Amplify ETFs, said that the cannabis industry is experiencing “a new wave of potential use cases across multiple industries, and investors are eager to gain access to this emerging sector.”
In an interview with CNN, Seymour commented, “An active approach is the only way to invest in a sector like this that’s changing by the day. If you are investing in cannabis a year ago, your focus would be on different companies than now.”
Similar to other ETFs in the cannabis space, the Amplify Seymour Cannabis ETF has zeroed in on some of the industry’s largest names. Here’s a list of the top five holdings by weightage:
- Aurora Cannabis (NYSE:ACB,TSX:ACB) — 8.36 percent
- GW Pharmaceuticals (NASDAQ:GWPH) — 7.77 percent
- Canopy Growth (NYSE:CGC,TSX:WEED) — 7.75 percent
- OrganiGram Holdings (TSXV:OGI,OTCQX:OGRMF) — 7.12 percent
- HEXO (TSX:HEXO,NYSE:HEXO) — 5.92 percent
Other additions to the space include the Evolve US Marijuana ETF (NEO:USMJ) from Evolve Funds Group and the Horizons US Marijuana Index ETF (NEO:HMUS) from Horizons ETFs Management, both of which launched on the NEO Exchange earlier this year.
Net assets for the Amplify Seymour Cannabis ETF currently sit at US$2.47 million, which is smaller than its counterparts. The Evolve US Marijuana ETF has US$3.95 million in assets under management and the Horizons US Marijuana Index ETF has US$15.85 million in assets.
Other US-based cannabis ETFs include the US$58.12 million AdvisorShares Pure Cannabis ETF (ARCA:YOLO) as well as the largest of the bunch at US$1.15 billion in assets, the ETFMG Alternative Harvest ETF (ARCA:MJ).
On Tuesday, Amplify Seymour Cannabis opened at US$24.65.
Don’t forget to follow us @INN_Cannabis for real-time updates!
Securities Disclosure: I, Danielle Edwards, hold no direct investment interest in any company mentioned in this article.
American cannabis sales hit US$17.5 billion in 2020, a research group’s new study shows.
Meanwhile, a Canadian cannabis producer began offering CBD beverages in the US, another move that shows how interested Canadians are in the overall US cannabis market at the moment.
Some pretty important news out of health and wellness; beverage and natural products company BevCanna Enterprises Inc. (CSE:BEV, Q:BVNNF, FSE:7BC) this week. For those of you following the Company with us, stay tuned.
As investors continue to prioritize cannabis opportunities in the US, market watchers expect mergers and acquisitions (M&A) to play a role in the future for Canadian companies.
A consolidation trend has been expected in the Canadian cannabis space for some time now based on the size of the market compared to the number of operations in the country.
BioHarvest Sciences Inc. Unveils the Unique Polyphenolic Content of Its Upcoming Olive-Based Nutraceutical
The product will include polyphenols known to have significant health benefits.
BioHarvest Sciences Inc. (CSE: BHSC) (“BioHarvest” or the “Company”) has reached an important milestone in its development program of additional Nutraceuticals. The olive-based Nutraceutical product scheduled for market availability in the second half of 2022 will contain the following unique matrix of polyphenols: hydroxytyrosol, trosol, and verbascoside. These compounds are the major polyphenols in naturally grown olives and are responsible for the high antioxidant activity of olives and olive oil. Importantly, the BioHarvest olive-based Nutraceutical product will provide all the benefits of olives and olive oil with a low calorie count per serving.
Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco” or the “Company”), one of the largest vertically integrated multistate cannabis operators in the United States, announced today that it will report financial results for the fourth quarter and full year ended December 31 st , 2020 on Thursday March 25 th , 2021 before the market opens.
The Company will host a conference call and webcast to discuss its financial results and provide investors with key business highlights on Thursday March 25 th , 2021 at 8:30am Eastern Time (7:30am Central Time).