U.S. Marijuana Index, compiled by Marijuana International Corporation, has delivered 33% returns over the past one year, as of January 3, 2018. This despite a lot of volatility in marijuana policy during the course of the year on account of hard line policy stance taken by the new U.S. government. Even though it has been fueled by the Trump rally, the S&P 500 has over the past year generated only 19.83% returns. (See also: ETF Focused On Marijuana Industry Launched.)

Graph Credit: marijuanaindex.com

In anticipation of the vote on legalization of marijuana in many states on November 9, the index hit a 52 week high on Oct 31, 2016 reaching the highs of 110.64 points. It is currently trading close to 105 point level. With more states voting to legalize some form of marijuana, the opportunities for business have increased and that makes for a good reason to invest in companies that work in this space. (See also: The Economic Benefits of Legalizing Weed.)

The marijuana index has a market cap of more than $6 billion and is equally weighted among 15 companies that have at least 50% of their operations focussed on the marijuana business. Other requirements prescribed by MJIC include a minimum market cap of $30 million, daily trading volume of $400,000 and a minimum price of $0.10. The index is rebalanced quarterly.

Most stocks on the index are listed in the over the counter or OTC markets which perhaps adds to the risk accompanied by investing in them. However, there are others as well. One of the largest companies on the index is U.K. based firm GM Pharmaceuticals (GWPH) that commands a market cap of close to $3.4 billion but trades on the NASDAQ via an American Depository Receipt (ADR). Another one, Innovative Industrial Properties (IIPR) is listed on the NYSE.

These are the stocks that make up the U.S. marijuana index:

Company Ticker Market Cap (In Millions)
GW Pharmaceuticals Plc   GWPH $3,460
Axim Biotechnologies Inc   AXIM $539.64
Terra Tech Corp   TRTC $413.18
MPX Bioceutical Corporation   MPX:CNX $388.58
Cannabics Pharmaceuticals Inc   CNBX $310.27
Kush Bottles Inc   KSHB $266.99
CannaRoyalty Corp   CRZ:CNX $240.68
Golden Leaf Holdings Ltd   GLH:CNX $202.72
MCIG Inc   MCIG $156.89
MariMed Inc   MRMD $135.35
Innovative Industrial Properties Inc.   IIPR $123.29
Solis Tek Inc   SLTK $93.00
GrowGeneration Corp   GRWG $71.51
CV Sciences Inc.   CVSI $59.56
Surna Inc   SRNA $55.45

 

 

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