The Amplify Seymour Cannabis ETF currently tracks 25 holdings, all of which are federally legal in the countries they operate in.
The actively managed cannabis-focused exchange-traded fund (ETF) aims to expose investors to the “fast-developing global cannabis industry,” according to a press release.
Tim Seymour, CIO of Seymour Asset Management and CNBC’s Fast Money co-host, will be the ETF’s portfolio manager and will base decisions on factors including: public regulatory findings, third party research and his own evaluations of company financials.
“The global legal cannabis industry is still very much in its infancy and presents an attractive growth opportunity for investors looking to capitalize on this emerging frontier,” said Seymour.
The Amplify Seymour Cannabis ETF currently has 25 holdings, all of which are federally legal in the countries in which they operate and fall within three categories: cannabis and hemp cultivation, agricultural technology and ancillary companies in the cannabis industry.
Eighty percent of the companies on the new ETF make 50 percent or more of their revenue from the cannabis and hemp markets.
Christian Magoon, CEO and founder of Amplify ETFs, said that the cannabis industry is experiencing “a new wave of potential use cases across multiple industries, and investors are eager to gain access to this emerging sector.”
In an interview with CNN, Seymour commented, “An active approach is the only way to invest in a sector like this that’s changing by the day. If you are investing in cannabis a year ago, your focus would be on different companies than now.”
Similar to other ETFs in the cannabis space, the Amplify Seymour Cannabis ETF has zeroed in on some of the industry’s largest names. Here’s a list of the top five holdings by weightage:
- Aurora Cannabis (NYSE:ACB,TSX:ACB) — 8.36 percent
- GW Pharmaceuticals (NASDAQ:GWPH) — 7.77 percent
- Canopy Growth (NYSE:CGC,TSX:WEED) — 7.75 percent
- OrganiGram Holdings (TSXV:OGI,OTCQX:OGRMF) — 7.12 percent
- HEXO (TSX:HEXO,NYSE:HEXO) — 5.92 percent
Other additions to the space include the Evolve US Marijuana ETF (NEO:USMJ) from Evolve Funds Group and the Horizons US Marijuana Index ETF (NEO:HMUS) from Horizons ETFs Management, both of which launched on the NEO Exchange earlier this year.
Net assets for the Amplify Seymour Cannabis ETF currently sit at US$2.47 million, which is smaller than its counterparts. The Evolve US Marijuana ETF has US$3.95 million in assets under management and the Horizons US Marijuana Index ETF has US$15.85 million in assets.
Other US-based cannabis ETFs include the US$58.12 million AdvisorShares Pure Cannabis ETF (ARCA:YOLO) as well as the largest of the bunch at US$1.15 billion in assets, the ETFMG Alternative Harvest ETF (ARCA:MJ).
On Tuesday, Amplify Seymour Cannabis opened at US$24.65.
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Securities Disclosure: I, Danielle Edwards, hold no direct investment interest in any company mentioned in this article.