As cannabis continues to go mainstream, and an ever-increasing number of companies make it to major stock exchanges, market participants feel a growing need for sophisticated financial instruments to track the industry’s overall performance. Among these instruments are indices and ETFs.
U.S. traded ETFs include the Horizons Marijuana Life Sciences Index ETF HMLSF, which replicates the North American Medical Marijuana Index, and the ETFMG Alternative Harvest ETF MJX, which replicates the Prime Alternative Harvest Index.
Beyond these two, a few other indices have been tracking the performance of marijuana stocks. Among them, the New Cannabis Ventures’ Cannabis Stock Index, which comprises 75 companies; there's also the not-closely-followed MJ Index, and the discontinued Viridian Cannabis Stock Index.
See Also: How to Invest In Marijuana Stocks
The Green Market Report Index
On Wednesday, Benzinga learned about a new cannabis stock index set to debut -- the Green Market Report Index. The index includes 30 public companies selected due to their market cap, revenues, and operational standards. “These companies must be predominantly focused on the cannabis industry and the list is reviewed on a quarterly basis,” the site explains.
“At Green Market Report, we have selected what we believe are the strongest names in the cannabis industry, focusing on pure cannabis companies,” Green Market Report CEO Debra Borchardt told Benzinga. This is why the firm excluded companies like Scotts Miracle-Gro Co SMG, which derives only 11 percent of its sales from its hydroponics business.
The index includes companies operating in the pharmaceutical, grow, ancillary and real estate sub-sectors.
"Public companies are becoming the norm in the cannabis market," Green Market Report co-founder Cynthia Salarizadeh said. "The companies that the Green Market Report have curated for the index are the ones that we feel are the most dominant in the cannabis industry. Not only did we review the market capitalization, but we also took a hard look at revenues and liabilities to assemble an index of the strongest possible names to follow as an indicator for the overall market."
Benzinga also spoke with Matt Karnes, founder and managing partner at GreenWave Advisors.
“As the interest level for cannabis investing intensifies, an index that more narrowly defines the playing field is welcomed,” Karnes said. “With numerous public cannabis companies coming and going, the selection criteria for inclusion in this index should provide a more meaningful assessment of the cannabis industry's relative performance.”
Related Link: Why GW Pharma's Epidiolex Results Could Shape The Future Of Cannabis-Based Therapeutics
The Components
The 30 companies in the index are:
- CANOPY GROWTH CORP TWMJF
- AURORA CANNABIS IN ACBFF
- MEDRELEAF CORP MEDFF
- GW Pharmaceuticals PLC- ADR GWPH
- APHRIA INC APHQF
- CRONOS GROUP INC PRMCF
- EMERALD HEALTH THE EMHTF
- CANNTRUST HOLDINGS CNTTF
- NAMASTE TECHNOLOGI NXTTF
- Supreme Cannabis Company Inc FIRE
- HYDROPOTHECARY COR HYYDF
- Corbus Pharmaceuticals Holdings Inc CRBP
- ORGANIGRAM HLDGS I OGRMF
- 22nd Century Group Inc XXII
- Axim Biotechnologies Inc AXIM
- Kush Bottles Inc KSHB
- MARICANN GROUP INC MRRCF
- Terra Tech Corp TRTC
- ISODIOL INTERNATIO ISOLF
- WEEDMD INC WDDMF
- CANNAROYALTY CORP CNNRF
- MPX BIOCEUTICAL CO MPXEF
- CANNABIS WHEATON I CBWTF
- INVICTUS MD STRATE IVITF
- Worlds Online Inc. MRMD
- GrowGeneration Corp GRWG
- Innovative Industrial Properties Inc IIPR
- AeroGrow International, Inc. AERO
- EMBLEM CORP EMMBF
- CV Sciences Inc CVSI
Image Credit: Javier Hasse
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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