Global X Cannabis
ALTAR
Score™
-26.1% info Recommen-
dation
AVOID
2019E    2020E
P/E
ratio
-17.0x P/Sales
ratio
2.3x
P/BV
ratio
2.5x Div.
yield
0.0%


  • Description
  • Performance
  • Comps
  • premium Fundamentals
  • premium Valuation
  • premium Rating
The Global X Cannabis ETF (POTX) seeks to invest in companies across the cannabis industry. This includes companies involved in the legal production, growth and distribution of cannabis and industrial hemp, as well as those involved in providing financial services to the cannabis industry, pharmaceutical applications of cannabis, CBD, or other related uses.

FUND BASICS
Category Global Equities
Fund Sponsor Global X
Website www.globalxfunds.com
Inception date Sep 18, 2019
Assets (mns) $5
Currency USD
Expense ratio 50 bp
Distributions Quarterly

FUND STRUCTURE
Regulation Open-Ended Fund
Custodian
Weighting Market Cap
Index replication
Uses derivatives No
Options available No

SECTOR BREAKDOWN

 


CONSTITUENT BREAKDOWN
No. of constituents 25
Wgt avg mkt cap (mns) $217
Large cap (>$10bn) 0.0%
Mid cap ($2-10bn) 25.4%
Small cap (<$2bn) 74.6%
Developed mkts 100.0%
Emerging mkts 0.0%

TOP TEN HOLDINGS
CANOPY GROWTH CORPORATION 1.5 %
APHRIA INC 1.4 %
GW PHARMACEUTICALS PLC SPONSORED A 1.4 %
CRONOS GROUP INC 1.2 %
HEXO CORPORATION 1.0 %
CORBUS PHARMACEUTICALS HOLDINGS IN 0.9 %
AURORA CANNABIS INC. 0.8 %
MEDIPHARM LABS CORP. 0.8 %
TILRAY, INC. 0.7 %
ORGANIGRAM HOLDINGS INC 0.7 %
Total 10.3 %

TOP COUNTRY EXPOSURE
CANADA 10.8 %
BRITAIN 1.4 %
UNITED STATES 1.1 %








HISTORICAL PERFORMANCE info

  Custom date range Compare to  
  thru


Standardized Annual Returns (thru November 30)
Year-to-date 1 year 5 years 10 years Since Incep.
-26.6% -- -- -- -26.6%

Market Correlations
versus... Beta R-squared
S&P500 -- --
MSCI EAFE -- --
MSCI Emg. Mkts. -- --

Technical Indicators
Recent close $14.83
30d moving avg. $16.68
Annualized volatility 0.0%
Short interest (ETF) 11.8%
Relative strength (RSI) 36

Liquidity measures
Avg. volume (thou.) 23
Turnover 6.6%
Bid/Ask (% of price) 0.88%
ADV underlying (mns) $270

Distributions


FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the Global X Cannabis ETF based on the alternatives' overlap in portfolio holdings with POTX. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker: POTX Expense: 50 bp ALTAR Score™: -26.1%


ALTERNATIVE ETFs BASED ON OVERLAP WITH POTX
Ticker Fund
Name
Overlap1
vs POTX
(%)
Expense
ratio
(bp)
Savings
vs POTX
(bp)
ALTAR
Score™
(%)
ALTAR
vs POTX
(%)
THCX Cannabis 12.8 70 -20 -5.6 +20.5
MJ ETFMG Alternative Harvest 11.9 75 -25 -3.3 +22.8
CNBS Amplify Seymour Cannabis 11.8 75 -25 -8.2 +18.0
TOKE Cambria Cannabis 11.3 42 8 0.8 +26.9
YOLO AdvisorShares Pure Cannabis 11.1 74 -24 -18.0 +8.1
PPH VanEck Vectors Pharmaceuticals 1.1 36 14 9.4 +35.5
AIIQ AI Powered International Equity 0.8 79 -29 4.6 +30.7
BBC Virtus LifeSci Biotech Clinical Trials 0.6 79 -29 -11.1 +15.0
IBB iShares NASDAQ Biotechnology 0.4 47 3 0.4 +26.5
SBIO ALPS Medical Breakthroughs 0.3 50 0 -5.2 +20.9
QCAN SPDR MSCI Canada Quality Mix 0.3 14 36 7.2 +33.3
BBCA JPMorgan BetaBuilders Canada 0.3 19 31 7.2 +33.3
EWC iShares MSCI Canada 0.3 47 3 7.1 +33.2
ORG Organics 0.3 35 15 4.5 +30.6
FLCA Franklin FTSE Canada 0.2 9 41 7.6 +33.7
ISZE iShares MSCI Int'l Developed Size Factor 0.2 30 20 6.6 +32.7
IPO Renaissance IPO 0.2 60 -10 -1.0 +25.1
SCHC Schwab Intl Small-Cap Equity 0.2 12 38 6.3 +32.4
VFMO Vanguard U.S. Momentum Factor 0.1 13 37 3.1 +29.2
GWX SPDR International SmallCap 0.1 40 10 4.6 +30.7

1Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

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RESULTS & ESTIMATES

  2014 2015 2016 2017 2018 2019E 2020E
Sales per share ** ** ** ** ** ** **
Earnings per share ** ** ** ** ** ** **
Dividends per share info ** ** ** ** ** ** **
Book value per share ** ** ** ** ** ** **

 

Sales per share growth   **% **% **% **% **% **%
EPS growth   **% **% **% **% **% **%

Sales per share growth   **% **% **% **% **% **%
EPS growth   **% **% **% **% **% **%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est. **%   Debt-to-equity **x
Asset turnover **%   Assets-to-equity **x

Return on equity

Revision activity*
*Six months ago = 100

Net margins

Compound annual growth rates

Content on this tab for subscribers only

VALUATION METRICS
  2018 2019E 2020E
Price-to-sales ** ** **
Price-to-earnings ** ** **
Price-to-cash flow ** ** **
Price-to-growth ** ** **
Price-to-book value ** ** **
Yield ** ** **

Historical valuation trends

Forward
multiple:
Global X Cannabis
Relative
to:
S&P500 MSCI EAFE MSCI Emg. Mkts. Other ETF:

AVOID

Not worthwhile for most investors. A rating of AVOID is assigned to ETFs with ALTAR Scores in the lowest quintile (the bottom 20%) of their category. Often, funds in this category consist of stocks with little if any history or expectation of profitability, and as a result our fundamentally-driven analysis may not be relevant.

ALTAR Score™


Calculation of ALTAR Score™
Avg. Return on Equity -69.3 %
Divided by: Fwd. P/BV 2.7 x
Less: Expense ratio 50 bp
Equals: ALTAR Score -26.1 %
info More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS
COMPOSITE
RATING
1.40 CATEGORY
AVERAGE
1.55
 
The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale:

BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3.

Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.
 

 

See RATING tab for calculation of ALTAR Score™
Risk & reward. Uses std. dev. as proxy for risk, ALTAR Score™ for return forecast.
Dividends paid by constituents to the fund. May differ from actual distributions to shareholders due to constituent changes, timing issues or other factors.
Monthly returns based on changes in price plus dividends. May differ from daily returns reported by funds. See below for standardized returns.