The cannabis market is rapidly growing, thanks to increased legalization in the United States and abroad. The bargain picks of 2019 and 2020 have largely broken the $10 barrier, creating excellent returns for alternative investors. There are still opportunities to be had at the low end of the market, especially for investors who are willing to spend a little extra for access to growth.
The Amplify Seymour Cannabis ETF (NYSE ARCA: CNBS) is a compelling pick that is still reasonably priced. It has traded in a range of $6.48 to $18.71 over the previous year and is close to its all-time high today. The fund creates a dividend yield of 0.42%. Although low when considering the average market dividend, the real potential here is in the fund’s ability to grow. This is evident in the return year to date.
Holdings in this ETF include some of the most important and most valuable cannabis producers and distributors, including Canopy Growth Corp., Aphria Inc., GW Pharmaceuticals PLC, and OrganiGram Holdings Inc. The assets are spread across different aspects of the industry, with seed developers, drug and health product manufacturers, and cannabis real estate firms included in the holdings list.
This fund offers wide exposure to cannabis at an affordable price. Perhaps most importantly, it eliminates the need for bargain investors to track individual cannabis picks in a rapidly evolving market.
- Net Expense Ratio: 75%
- Dividend Yield: 42%
- YTD Return: 87%
All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.