The U.S. Marijuana Index tracks the leading cannabis and hemp stocks in the United States and provides information that investors need. The Marijuana Index is owned and managed by ManifestSeven (MJIC, Inc.) The Index is for informational purposes and, it is not designed to be an endorser of the companies it lists.
That said, the U.S. Marijuana Index delivered 158% returns from November 2017 to October 2018. Although the market saw significant volatility in marijuana policy during the course of the year due to a hard-line policy stance taken by the new U.S. administration under President Donald Trump, more recent developments have been encouraging to marijuana investors. Over the same period, although fueled by the Trump rally, the S&P 500 has generated only 9.78% returns.
Graph Credit: marijuanaindex.com
With 30 states and the countries Uruguay and Canada voting to legalize some form of marijuana, the opportunities for business have increased. More business opportunity provides an impetus for investors.
Stocks on the Marijuana Index
The marijuana index is equally weighted among 25 companies that have at least 50% of their operations in the marijuana business. In 2019, the Index increased the minimum trading requirements for companies who want to join the Index. Companies now require a minimum weighted average market capitalization of $100 million and daily trading volume of $2 million. This requirement is rebalanced each quarter.
Most stocks on the index are listed in over the counter (OTC) markets, which perhaps adds to the investment risk. However, one of the largest companies on the index is the U.K.-based firm GM Pharmaceuticals (GWPH) that commands a market cap of close to $5.25 billion but trades on the NASDAQ via an American Depository Receipt (ADR). Another company, Innovative Industrial Properties (IIPR), is listed on the NYSE.
These are the stocks that make up the U.S. marijuana index as of May 2019.
|Company||Ticker Symbol||Market Cap (in millions)|
|GW Pharmaceuticals Plc||GWPH||$5,246.97|
|Curaleaf Holdings Inc||CURA:CNX||$4,937.82|
|Green Thumb Industries Inc||GTII:CNX||$1,444.79|
|Green Growth Brands Inc||GGB:CNX||$952.26|
|Acreage Holdings Inc||ACRG.U:CNX||$907.05|
|iAnthus Capital Holdings Inc||IAN:CNX||$885.57|
|Innovative Industrial Properties Inc||IIPR||$844.01|
|Harvest Health & Recreation Inc||HARV:CNX||$750.15|
|Flower One Holdings Inc||FONE:CNX||$547.55|
|CV Sciences Inc||CVSI||$492.93|
|Medmen Enterprises Inc||MMEN:CNX||$463.29|
|Kushco Holdings Inc||KSHB||$433.93|
|Charlottes Web Holdings Inc||CWEB:CNX||$393.04|
|Cresco Labs Inc||CL:CNX||$362.23|
|Liberty Health Sciences Inc||LHS:CNX||$259.90|
|Trulieve Cannabis Corp||TRUL:CNX||$239.08|
|TILT Holdings Inc||TILT:CNX||$237.89|
|Planet 13 Holdings Inc||PLTH:CNX||$235.60|
|Mjardin Group Inc||MJAR:CNX||$136.05|
|Terra Tech Corp||TRTC||$77.10|
|Grow Generation Corp||GRWG||$74.71|
|Golden Leave Holdings Ltd||GLH:CNX||$70.70|
|DionyMed Brands Inc||DYME:CNX||$52.47|
Source: The Marijuana Index, 2019
Marijuana stocks, particularly in the United States, react to political moves associated with cannabis. For example, if politicians criticize the industry, the stocks can plummet. The cannabis industry is an evolving one, so investors should expect volatility if they invest in this sector.