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Big Six Marijuana Mutual Funds

Marijuana Stock Review

ETFMG Alternative Harvest ETF (MJ)

With $1.2 billion in assets, Alternative Harvest has focused on the marijuana sector since December 2015, but not too intently; the fund also holds stocks of companies with at least some connection to the cannabis industry—or that might have a connection to the industry in the future, like tobacco companies.

Forty-five percent of the portfolio is in U.S. stocks, with 32% in Canadian and 16% in the U.K.

Top holdings recently included Aurora (ACB), Cronos (CRON), GW Pharmaceuticals (GWPH), Tilray (TLRY) and Canopy Growth (CGC).

Year to date, the fund is up 26.4%.

The management fee is 0.75%

Horizons Marijuana Life Sciences (HMMJ) (HMLSF)

Horizons is a Canadian company with three marijuana ETF offerings, so you can choose the one that fits best. Marijuana Life Sciences was the world’s first marijuana ETF, and with $884 million in assets, it’s now a close second to the leader.

While it is not exactly laser-focused on the industry, it is definitely more focused than Alternative Harvest, and the result can be seen in its performance, up 30.9% year to date. The ETF’s top five holdings are Canopy Growth (CGC), Aurora (ACB), GW Pharmaceuticals (GWPH), Scotts Miracle-Gro (SMG) and Tilray (TLRY).

The management fee is 0.75%

AdvisorShares Pure Cannabis ETF (YOLO)

U.S.-based AdvisorShares Pure Cannabis debuted April 17, so it’s still a baby. But it already has $50 million, spread among 24 holdings. Top five holdings recently were OrganiGram (OGRMF), The Green Organic Dutchman (TGODF), Aphria (APHA), CannTrust (CTST) and Innovative Industrial Properties (IIPR).

It’s simply too early to talk about performance. But the fund’s ticker symbol (short for You Only Live Once) tells you someone in power has a sense of humor.

The management fee is 0.60%.

Purpose Marijuana Opportunities Fund (MJJ) (MRJOF)

Purpose Marijuana Opportunities Fund, based in Canada, has been available since February 2018. With $44 million in assets, Purpose has 57% of its assets in Canadian companies, 27% in the U.S. and 16% in cash.

The top five holdings, interestingly, are all Canadian: Organigram (OGRMF), HEXO (HEXO), Aurora Cannabis (ACB), Canopy Rivers (CNPOF) and Harvest Health and Recreation (HRVSF). U.S. companies appear farther down the list. More importantly, perhaps, a closer look shows a tighter focus on plant-touching companies, and less diversification into the safer companies involved with tobacco or real estate that are fund in other ETFs.

The ETF is up 47.2% year-to-date.

The management fee is 0.75%

Horizons U.S. Marijuana Index ETF (HMUS.NE)

This Canadian-based fund is focused on companies in the U.S., which eventually is likely to account for the lion’s share of the industry.

Top five holdings are Cresco Labs (CRLBF), Charlotte’s Web (CWBHF), Columbia Care (COLXF), Curaleaf (CURLF) and MedMen (MMNFF).

The fund was just launched on April 17, so it’s too early to talk about performance.

Assets are $19 million, and the management fee is 0.85%

Horizons Emerging Marijuana Growers Index ETF (HMJR) (HZEMF)

As its name suggests, Horizons Emerging Marijuana ETF concentrates on the smaller companies in the cannabis sector. But with only $11 million in assets, the fund is small, so it’s not so efficient. It’s been open since February 2018, and it’s up 28.1% year to date, lagging the bigger funds invested in the bigger stocks.

Top five holdings recently were Slang Worldwide (SLGWF), Supreme Cannabis (SPRWF), Flower One (FLOOF), Neptune Wellness Solutions (NEPT) and Emerald Health Therapeutics (EMHTF).

The management fee is 0.85%

SOURCE: CabotWealth