The U.S. Marijuana Index tracks the leading cannabis and hemp stocks in the United States and provides information that investors need. Owned and managed by ManifestSeven, the index is meant only for informational purposes and does not endorse any of the companies it lists.
Marijuana stocks react to political moves associated with cannabis. Investors should expect volatility in the sector.
That said, the U.S. Marijuana Index was up 13.4% year-over-year as of Nov. 11, 2020. This isn't bad, considering the S&P 500 was up slightly higher—15.5% during the same period. Although the market saw significant volatility in marijuana policy during the course of the year due to a hard-line policy stance taken by former President Donald Trump's administration, marijuana investors are optimistic about the future.
Graph Credit: marijuanaindex.com
With 35 states and the District of Columbia, along with Uruguay and Canada legalizing some form of marijuana, the opportunities for business are increasing. And more business opportunities provide an impetus for investors.
- The U.S. Marijuana Index tracks cannabis and hemp stocks for investors.
- The marijuana index is equally weighted among 29 companies—each with at least 50% of its operations in the marijuana business.
- Companies require a minimum weighted average market capitalization of $150 million and a daily trading volume of $1 million.
- The index is rebalanced each quarter.
Stocks on the Marijuana Index
The U.S. Marijuana Index is equally weighted among 29 companies that have at least 50% of their operations in the marijuana business. As of November 2020, the minimum trading requirements for companies who want to be listed on the index were increased. Companies require a minimum weighted average market capitalization of $150 million and a daily trading volume of $1 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). This company commands a market cap of close to $3.75 billion and trades on the Nasdaq via an American depository receipt (ADR). Another company, Innovative Industrial Properties (IIPR), is listed on the New York Stock Exchange (NYSE).
These are the stocks that make up the U.S. marijuana index as of November 2020.
|Company||Ticker Symbol||Market Cap (in millions)|
|Green Thumb Industries||GTBIF||$4,349.56|
|Innovative Industrial Properties||IIPR||$3,426.39|
|Trulieve Cannabis Corporation||TCNNF||$1,544.74|
|Harvest Health & Recreation||HRVSF||$667.86|
|Planet 13 Holdings||PLNHF||$544.39|
|Charlottes Web Holdings||CWBHF||$384.81|
|Acreage Holdings||ACRG.A.U (CNX)||$353.85|
|Liberty Health Sciences||LHSIF||$128.05|
|Vireo Health International||VREOF||$105.53|
|iAnthus Capital Holdings||ITHUF||$18.63|
|Green Growth Brands||GGBXF||$ 5.54|
Source: The Marijuana Index, 2020
Marijuana stocks tend to respond and react to any political moves associated with cannabis—particularly those in the United States. That's because the drug is still considered a controlled substance at the federal level, making it illegal on a national basis. So if politicians criticize the industry, investors may see these stocks plummet. But attitudes are changing as more people begin to warm up to the idea of legalizing marijuana. The cannabis industry is, therefore, an evolving one, so investors should expect volatility if they invest in this sector.