One of the events that marked the close of 2020 in the cannabis sector was the announcement of the quarterly rebalancing of the two main exchange-traded funds (ETFs) that offer exposure to a cross section of companies in the industry.
The exercise added six stocks—three new stocks to each of the ETFs. These equities could be worth putting on your watch list.
The two ETFs are managed by the Canadian-based firm Horizons ETFs. One fund, the Horizons US Marijuana Index ETF (NLB:HMUS), concentrates on American players, while the other, Horizons Medical Marijuana Life Sciences (TSX:HMMJ), focuses primarily on Canadian companies in the cannabis space.
New Additions To HMUS
HMUS is the world’s first US-focused marijuana index ETF. It aims to replicate the performance of the US Marijuana Companies Index, which includes many prominent names in the cannabis as well as the hemp industries. Some trade in both Canada and the US.
HMUS Daily
The three new additions to the ETF are:
- Slang Worldwide (OTC:SLGWF) (CSE:SLNG), a relatively small Canadian-based company that distributes several brands across the United States. It has a market cap of just under $90 million. Its stock value is almost exactly the same as it was this time last year, but it could find some upward momentum this year.
- SOL Global (OTC:SOLCF) (CSE:SOL), a US investment company that focuses on cannabis cultivation, distribution and research and development in several states, as well as cannabis and hemp markets in Europe. It also has a research partnership with the University of Miami. Its has a market cap of just under $120 million, and its stock has more than doubled in the last year, closing Monday at $2.16.
- C21 Investments (OTC:CXXIF) (CSE:CXXI), a Vancouver-based, vertically integrated cannabis grower that is also actively distributing marijuana and hemp products in the US and a variety of other countries around the globe. It has a market cap of just under $165 million. Its stock gained in the last months of 2020, closing Monday at $1.52.
New Additions to HMMJ
Horizon’s HMMJ cannabis ETF was the world’s first ETF in the cannabis space. It aims to replicate the performance of the North American Marijuana Index. All of its members have a market cap of more than C$75 million (US$59 million).
HMMJ Daily
The three new additions to the ETF are:
- Sundial Growers (NASDAQ:SNDL), a Calgary-based grower founded in 2006. It is traded on the NASDAQ, and focuses on craft-scale cultivation. It has a market cap of about $361 million. Its stock performed well in the latter half of 2020, closing yesterday at 55 cents a share.
- Supreme Cannabis Company (OTC:SPRWF) (TSX:FIRE), although a relatively small Toronto-based firm, has emerged as a prominent producer of recreational, wholesale and medical cannabis products. It has a market cap of about $67 million and its shares closed yesterday at just over 13 cents.
- Pharmacielo (OTC:PCLOF) (TSXV:PCLO), headquartered in Toronto, the company specializes in medicinal grade cannabis oil extracts. It has a market cap of $228 million. Its stock closed Monday at $1.61.