Cannabis
ALTAR
Score™
-5.5% info Recommen-
dation
AVOID
2020E    2021E
P/E
ratio
-37.4x P/Sales
ratio
0.2x
P/BV
ratio
2.6x Div.
yield
0.2%


  • Description
  • Performance
  • Comps
  • premium Fundamentals
  • premium Valuation
  • premium Rating
The Cannabis ETF tracks a market cap-selected and weighted index of North American cannabis companies.

FUND BASICS
Category Global Equities
Fund Sponsor OBP Capital LLC
Website thcxetf.com
Inception date Jul 09, 2019
Assets (mns) $23
Currency USD
Expense ratio 70 bp
Distributions Monthly

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

SECTOR BREAKDOWN

 


CONSTITUENT BREAKDOWN
No. of constituents 33
Wgt avg mkt cap (mns) $2,238
Large cap (>$10bn) 3.5%
Mid cap ($2-10bn) 30.0%
Small cap (<$2bn) 66.5%
Developed mkts 100.0%
Emerging mkts 0.0%

TOP TEN HOLDINGS
GW PHARMACEUTICALS PLC SPONSORED A 9.4 %
CANOPY GROWTH CORPORATION 8.7 %
SCOTTS MIRACLE-GRO CO-CL A 7.5 %
CRONOS GROUP INC 7.4 %
TILRAY, INC. 7.4 %
APHRIA INC 6.0 %
AURORA CANNABIS INC. 5.4 %
CHARLOTTE'S WEB HOLDINGS, INC. 5.1 %
ARENA PHARMACEUTICALS, INC. 4.0 %
PERKINELMER INC 3.7 %
Total 64.7 %

TOP COUNTRY EXPOSURE
CANADA 66.8 %
UNITED STATES 22.6 %
BRITAIN 9.4 %








HISTORICAL PERFORMANCE info

  Custom date range Compare to  
  thru


Standardized Annual Returns (thru January 01)
Year-to-date 1 year 5 years 10 years Since Incep.
-- -- -- -- 0.0%

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

Technical Indicators
Recent close $11.88
30d moving avg. $12.44
Annualized volatility 0.0%
Short interest (ETF) 8.1%
Relative strength (RSI) 47

Liquidity measures
Avg. volume (thou.) 52
Turnover 2.7%
Bid/Ask (% of price) 0.69%
ADV underlying (mns) $437

Distributions


FINDING ALTERNATIVE FUNDS

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

Benchmark ticker: THCX Expense: 70 bp ALTAR Score™: -5.5%


ALTERNATIVE ETFs BASED ON OVERLAP WITH THCX
Ticker Fund
Name
Overlap1
vs THCX
(%)
Expense
ratio
(bp)
Savings
vs THCX
(bp)
ALTAR
Score™
(%)
ALTAR
vs THCX
(%)
CNBS Amplify Seymour Cannabis 64.7 75 -5 -6.5 -1.0
MJ ETFMG Alternative Harvest 62.8 75 -5 -3.4 +2.0
TOKE Cambria Cannabis 54.2 42 28 -2.7 +2.8
YOLO AdvisorShares Pure Cannabis 43.9 74 -4 -11.4 -5.9
POTX Global X Cannabis 7.2 50 20 -15.1 -9.6
ACT AdvisorShares Vice 7.1 99 -29 6.6 +12.1
SOIL Global X Fertilizers/Potash 5.6 69 1 5.0 +10.5
SLIM Obesity 3.4 35 35 1.8 +7.3
BBC Virtus LifeSci Biotech Clinical Trials 3.3 79 -9 -6.8 -1.3
FXZ First Trust Materials Alphadex 3.2 64 6 7.9 +13.4
SBIO ALPS Medical Breakthroughs 2.4 50 20 -4.0 +1.5
XSD SPDR S&P Semiconductors 2.0 35 35 4.3 +9.7
PZD Invesco Cleantech 2.0 68 2 4.2 +9.7
GEX VanEck Vectors Global Alternative Energy 2.0 63 7 3.4 +8.9
QCLN First Trust NASDAQ Clean Edge Green Energy 2.0 60 10 1.3 +6.7
ACES ALPS Clean Energy 2.0 65 5 0.7 +6.2
PBW Invesco WilderHill Clean Energy 2.0 70 0 -0.7 +4.8
XMMO Invesco S&P MidCap Momentum 2.0 39 31 3.6 +9.1
VALX Validea Market Legends 1.8 79 -9 9.9 +15.4
NUMG NuShares ESG Mid-Cap Growth 1.7 40 30 3.6 +9.1

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

  2015 2016 2017 2018 2019 2020E 2021E
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
  2019 2020E 2021E
Price-to-sales ** ** **
Price-to-earnings ** ** **
Price-to-cash flow ** ** **
Price-to-growth ** ** **
Price-to-book value ** ** **
Yield ** ** **

Historical valuation trends

Forward
multiple:
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 -12.1 %
Divided by: Fwd. P/BV 2.5 x
Less: Expense ratio 70 bp
Equals: ALTAR Score -5.5 %
info More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS
COMPOSITE
RATING
1.43 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.