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A New Marijuana Stock Index

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.
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 (CVE: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

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© 2018 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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