American investors likely prefer Canadian cannabis stocks such as Tilray Inc. (NASDAQ:TLRY), Canopy Growth Corporation (NYSE:CGC) and Cronos Group Inc. (NASDAQ:CRON), which trade either on the NASDAQ or NYSE
SmallCapPower | September 17, 2018: If recent inflows into a U.S.-listed ETF that tracks Canadian marijuana stocks is any indication, Canada’s pot-stock rally could accelerate further. According to Bloomberg, the ETFMG Alternative Harvest ETF, with the ticker MJ, has taken in about $22 million in August, putting it on track for the largest monthly inflow since February. And, MJ has attracted $56 million in new net investment money in a recent two-week period, bringing the ETF’s assets under management to just less than $500 million, with much of that money being invested into Canadian cannabis stocks.
ETFMG Alternative Harvest ETF’s Canada-listed holdings include Cronos Group Inc. (TSX:CRON) (NASDAQ:CRON) (11.4% of the total holdings); Canopy Growth Corporation (TSX:WEED) (NYSE:CGC) (11.2%); Aurora Cannabis Inc. (TSX:ACB) (OTCQB:ACBFF) (7%); CannTrust Holdings Inc. (TSX:TRST) (5%); HEXO Corp. (TSX:HEXO) (4.7%); Emerald Health Therapeutics, Inc. (TSXV:EMH) (4.3%); The Green Organic Dutchman Holdings Ltd. (TSX:TGOD) (4.1%); Organigram Holdings Inc. (TSXV:OGI) (3.8%); Auxly Cannabis Group Inc. (TSXV:XLY) (3.8%); Newstrike Brands Ltd. (TSXV:HIP) (1.9%); and TerrAscend Corp. (CSE:TER) (1.7%).
Should this ETF inflow continue, the share prices of these Canadian marijuana stocks are poised to go even higher. American investors likely favor those Canadian cannabis companies listed on major U.S. stock exchanges, which should disproportionally benefit Tilray, Inc. (NASDAQ:TLRY), Canopy Growth Corporation (NYSE:CGC), and Cronos Group Inc. (NASDAQ:CRON). Investors might also want to keep an eye on Namaste Technologies Inc. (TSXV:N), as the Company is actively seeking a NASDAQ listing.
Meanwhile, back in Canada, Horizons announced recently that The Horizons Marijuana Life Sciences Index ETF (TSX:HMMJ) has reached $1 billion in assets under management. The fund has generated a 78.5% annualized return since inception and is up more than 162% for the 12-month period ended August 31, the financial services company said.
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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