It's kind of fitting that a new ETF focused on the cannabis sector would hit markets on 4/20 this year. The Roundhill Cannabis ETF ("WEED ETF"), launched on April 20 on the Cboe BZX Exchange and includes holdings in cannabis-related companies such as producers, distributors, technology, and ancillary businesses.
Although marijuana use is still illegal on the federal level, about 39 U.S. states plus Washington, D.C., have legalized it for medical use, and 18 states have legalized recreational use of the drug. At the beginning of April, the U.S. House of Representatives passed the MORE Act, which would remove cannabis from the list of federally prohibited substances.
The BDSA, a market research firm that tracks the legal cannabis market, projects that the cannabis industry will surpass $61 billion by 2026.
"While publicly-listed cannabis companies have recently underperformed, we believe that the cannabis market may be entering an inflection point in terms of both profitability and regulatory momentum,” said Roundhill CEO Will Hershey in a statement. “We wanted to provide investors with a comprehensive vehicle to invest in the space.”
Interested in learning more about what companies you’re investing in with the WEED ETF? The WEED ETF has 24 holdings and about $700,000 in assets under management. Here are the top five holdings:
Curaleaf Holdings Inc. (CURLF)
Curaleaf Holdings Inc. is a U.S. company that produces and sells cannabis and also provides professional services such as cultivation, processing, and licensing. It accounts for the largest part of the WEED ETF portfolio at over 13 percent. The ETF holds 14,716 shares of CURLF. Those shares are valued at $5.66 per share as of 12:00 p.m. ET on May 2.
Green Thumb Industries Inc (GTBIF)
Green Thumb Industries Inc. is a Chicago-based company that manufactures, distributes, and sells cannabis products such as flower buds, pre-rolls, vapes, edibles, topicals, and more. It owns and operates 77 retail stores throughout the U.S. GTBIF accounts for 9.86 percent of the WEED ETF, which holds 4,646 shares. Currently, the shares are trading at $13.54.
Verano Holdings Corp. (VRNOF)
Verano Holdings Corp. is another Chicago-based company specializing in the cultivation, processing, and retail licensing of cannabis in 12 states. It owns 95 dispensaries, including the Zen Leaf brand dispensaries. The WEED ETF holds 6,592 shares of VRNOF, which equals 7.83 percent of its portfolio. VRNOF shares are currently trading at $7.94.
Trulieve Cannabis Corp. (TCNNF)
Florida-based Trulieve Cannabis Corp. is focused on medical cannabis. It operates dispensaries in its home state of Florida as well as Arizona, California, Connecticut, Maryland, Massachusetts, Pennsylvania, and West Virginia. TCNNF accounts for 7.76 percent of the WEED ETF with 3,566. The current share price for TCNNF is $14.10.
TerrAscend Corp. (TRSSF)
TerrAscend Corp. is a Canadian company that produces and distributes hemp-derived wellness products and manufactures cannabis-infused edibles. It operates 26 dispensaries in the U.S. and Canada. TRSSF makes up 5.61 percent of the WEED ETF with 7,980 shares. Currently, TRSSF shares are trading at just over $4.66.