The Best Performing Stocks From The World’s First Marijuana ETF

The Horizons Marijuana Life Sciences Index ETF (TSX:) is the world’s first marijuana ETF. An exchange-traded fund (ETF) can be described as a basket of investments that focus on a particular asset. In HMMJ’s case, that asset is marijuana. ETFs are traded daily at market determined prices which are different from the market prices of the assets. They are easier to trade than single investments, have lower fees, and allow an individual or company to invest in multiple securities at once.

Marijuana-related companies are relatively new players in the stock market, but they operate in an industry that has huge potential for growth. The cannabis market size is expected to reach $38.2 billion by 2028, growing at a compound annual growth rate (CAGR) of 16.6% from 2022 to 2028, according to the North America Legal Cannabis Market Report 2022. The report also showed that the CBD segment of this market accounts for the highest revenue share due to the growing adoption of CBD for medical purposes.

The Horizons Marijuana Life Sciences Index ETF seeks to replicate the performance of the North American Marijuana Index, net of expenses, which provides exposure to the performance of a basket of North American life sciences companies publicly traded, doing business in the marijuana industries. Investors can reduce the risks of individual marijuana stocks with exposure to a diverse group of companies within HMMJ.

HMMJ’s investment strategy invests in marijuana businesses that derive revenue from the medical and/or recreational use of cannabis where it has been legalized by state law. In October 2018, recreational marijuana was legalized in Canada, allowing HMMJ to invest in index constituent issuers that serve this market in Canada. HMMJ is rebalanced quarterly, ensuring that the investment mix accurately reflects market industry growth.

  • Creation date: 05/04/2017
  • To exchange: Toronto Stock Exchange
  • Change: BODY
  • Previous Close: $5.18
  • Volume: 46,580
  • Net assets : 227 734 527
  • Consolidated volume of the previous day: 77,976

The Horizons Marijuana Life Sciences Index ETF (HMMJ) offers serious upside potential for investors, but cannot be fairly assessed without noting the stock that significantly outperformed the HMMJ index: InnoCan Pharma Corp (CSE:).

Chart from TradingView as of 11/3/22

Innocan Pharma (INNO) was founded in 2018 and specializes in the production of integrated CBD pharmaceutical products. Much of the company’s notoriety comes from cutting-edge breakthroughs for the future of CBD-charged delivery systems. A B2C sales platform, distribution in seven countries and new technological advancements have resulted in rapid growth for the company.

Innocan Pharma has recently expanded into veterinary medicine, which has opened up opportunities for the organization to commercialize intellectual property, including more than 15 patents. Currently considered undervalued in value per share, the shares of Innocan Pharma and the HMMJ index offer investors a unique opportunity to secure future profits.

  • Market capitalization: 148.66M
  • Previous Close: $0.60
  • EPS (ttm): -0.0211
  • Volume: 20,000
  • Average volume: 33,290
  • High of 52 weeks: 1.65
  • 52 week low: 0.35

As the best performing stock in the HMMJ index, Innocan Pharma has topped the stats of competitor companies with a change of 40.48% over the past year. Innovative Industrial Properties (NYSE:) had the second best performance in the index, with a change of -3.90% over 1 year. For comparison, Tilray Brands (NASDAQ:) (TSX:), another popular stock, saw a change of -76.13%.

As the markets for recreational marijuana and CBD products explode in the coming years, these stocks offer promising opportunities for investors. For those who wish to minimize the risk of investing in a marijuana or CBD business, HMMJ offers investment opportunities across a diverse group of businesses.

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