ETF Research Center

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
Total	10.3 %
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 %

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	**	**	**	**	**	**	**
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

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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	%

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.