uploads/2018/02/Top-Holdings-2018-02-18-1.jpg

A Look at 2 New Marijuana ETFs that Debuted Last Week

By

Updated

Two new ETFs

While marijuana stocks (MJX) ended in the negative territory week-over-week last week, two new marijuana sector-specific ETFs debuted. The Evolve Marijuana ETF (SEED) began trading on February 12, and the Emerging Marijuana Growers Index ETF (HMJR) began trading on February 14. Both these ETFs are rated as “high risk” based on volatility by the issuers, which means that the two marijuana ETFs could see high price swings.

Article continues below advertisement

SEED ETF

On February 12, the Evolve Marijuana ETF began trading at 20.48 Canadian dollars but closed almost 4% lower through the day at 19.99 Canadian dollars. This ETF invests in a diversified portfolio of domestic and international marijuana companies and has an MER (management expense ratio) of 1% broken down by 0.75% as the management fee and 0.25% as the fixed administration fee.

As of February 16, this ETF had 26 holdings. The top ten are listed in the chart above by weight. MedReleaf (MEDFF), Canopy Growth (WEED), Cronos Group (PRMCF), Aurora Cannabis (ACBFF), and Aphria (APHQF) alone made up for about 50% of the ETF’s total holdings.

The SEED ETF had 91.6% exposure to the Canadian market and about 7.5% exposure to the Australian market. The Healthcare sector tops the ETF’s concentration by 58.9% weight followed by the Consumer Discretionary sector at 33.8%. The financial sector and the Consumer Staples sector have 4.2% and 2.2% exposure, respectively.

HMJR ETF

On February 14, the Emerging Marijuana Growers Index ETF began trading at 10.43 Canadian dollars but closed 1.7% lower at 10.25 Canadian dollars. This ETF primarily focuses on marijuana growers that are in their early stages or have a small capitalization. The ETF has a 0.85% management fee and a redemption fee of 0.25%.

As of February 14, this ETF also had 26 holdings. The top five holdings make up for one-third of the ETF’s portfolio. The ETF had about 77.6% exposure to the Canadian market and about 22.4% exposure to the Australian market.

Advertisement

More From Market Realist