Horizons Marijuana Life Sciences Index ETF Is The Best Bet For The Passive Marijuana Investor

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Includes: ACB, APHA, BLOZF, BTHCF, CGC, CMMDF, CNTTF, CRON, EMHTF, EMMBF, GWPRF, HRVOF, HYYDF, ICCLF, IIPR, IMLFF, INSY, IVITF, MEDFF, MRRCF, NWKRF, OGRMF, RDDTF, SMG, SPRWF, VRNDF, VVCIF, WDDMF, XXII, ZYNE
by: Anthony Cataldo
Summary

It is always difficult to “pull the trigger” and buy a stock or any other financial instrument after a “gap up,” but put this ETF on your “watch list”.

My recommendation is that you “nibble in” and “buy the sector” with a focus on “Canadian” marijuana stocks.

I want to focus on the component stocks from the most recent “gap up” that immediately preceded 2017 calendar year-end.

I trichotomized the N=28 holdings into [1] those representing more than 10%, [2] between 1% and 10%, and [3] less than 1% of the entire index.

Raw data is contained in the APPENDIX, where the N=28 contained in the ETF had n=26 winners (93%) and only n=2 losers.

Note: This article contains both Canadian- and U.S.-traded ticker symbols. Caution should be exercised with these gray-market derivatives.

The Horizons Marijuana Life Sciences Index ETF (OTC:HMLSF) has performed well, and there is no reason to expect otherwise as 2018 progresses.

I like the Canadian exposure:

Canadian tickers are listed below:

I would prefer to watch a bit, and “nibble in,” as the “gap up” might represent a bit of an “over-reaction” to early January 2018 legalization in California, one of the largest population states in the US:

US tickers for the Horizons Marijuana Life Sciences Index ETF are listed below:

Name

U.S. Ticker

Percentage of Fund

1

Canopy Growth Corp.

(TWMJF)

12.14%

2

Aphria Inc.

(APHQF)

11.66%

3

Aurora Cannabis Inc.

(ACBFF)

11.37%

4

The Scotts Miracle-Gro Co.

(SMG)

9.63%

5

GW Pharmaceuticals PLC

(OTCPK:GWPRF)

9.46%

6

Medreleaf Corp.

(OTCPK:MEDFF)

8.74%

7

Canntrust Holdings Inc.

(OTC:CNTTF)

4.17%

8

Cronos Group Inc.

(PRMCF)

4.06%

9

Insys Therapeutics Inc.

(INSY)

3.00%

10

Cannimed Therapeutics Inc.

(OTC:CMMDF)

2.88%

11

Supreme Pharmaceuticals Inc NEW

(OTCQX:SPRWF)

2.45%

12

Emerald Health Therapeutics

(OTCQX:EMHTF)

2.15%

13

Organigram Holdings Inc.

(OTCQX:OGRMF)

2.14%

14

22nd Century Group Inc.

(XXII)

2.08%

15

Radient Technologies Inc.

(OTC:RDDTF)

1.91%

16

Hydropothecary Corp. NEW

(OTCPK:HYYDF)

1.73%

17

Zynerba Pharmaceuticals Inc.

(ZYNE)

1.32%

18

Newstrike Resources Ltd.

(OTCPK:NWKRF)

1.29%

19

Delta 9 Cannabis Inc.

(OTCQX:VRNDF)

1.13%

20

Maricann Group Inc.

(OTCQB:MRRCF)

0.95%

21

WeedMD Inc.

(OTCPK:WDDMF)

0.93%

22

ABcann Global Corp.

(ABCCF)

0.89%

23

Emblem Corp.

(OTCQX:EMMBF)

0.86%

24

ICC Intl Cannabis Corp.

(OTC:ICCLF)

0.69%

25

Invictus MD Strategies Corp.

(OTCQX:IVITF)

0.65%

26

Harvest One Cannabis Inc.

(OTCPK:HRVOF)

0.54%

27

Innovative Industrial Properties

(IIPR)

0.53%

28

InMed Pharmaceuticals

(OTCQX:IMLFF)

0.53%

Total

99.88%

Trichotomy of Holdings in the Horizons Marijuana Life Sciences Index ETF

It is too "noisy" to put all N=28 holdings in a single graphic, so I trichotomized the population, based on percentage of holdings in the overall ETF, establishing November 29, 2017 as a based period for the development of the below.

1-A graphic of the top 3 holdings at more than 10% of the total ETF over the past 30 days follows:

2-A graphic of holdings representing between 1% and 10% of the total ETF over the past 30 days follows:

3-A graphic of the holdings representing less than 1% of the total ETF over the past 30 days follows:

The Losers

There were only n=2 losers of the N=28 holdings over the 30-day period: [1] Zynerba Pharmaceuticals Inc. and [2] Delta 9 Cannabis Inc., as follows:

17

Zynerba Pharmaceuticals Inc.

ZYNE

1.32%

19

Delta 9 Cannabis Inc.

VRNDF

1.13%

These results are superior, and I am inclined to simply buy and hold this ETF rather than attempt to pick n=26 winner out of a population of N=28 or attempt to achieve a 93% winner rate on my own. Let those running the index do the work so that I might sit back and enjoy the profits.

Summary

I receive many comments asking about specific marijuana and cannabis stocks, where I do not believe that I can outperform the Horizons Marijuana Life Sciences Index ETF, so I recommend this passive investment approach for these stocks. This does not mean that I do not recommend the purchase of stocks not contained in the ETF, because I do.

For example, those following my work know that I held Cannabix Technologies (OTCPK:BLOZF) for quite a bit of time, may trade it again, and am now holding its sister company, Breathtec Biomedical (OTCQB:BTHCF).

For me, it is just too early to “pick the winner” and I want exposure to the entire marijuana and cannabis sector or segment of the economy. Of course, selecting the “best” of the sector is a long-proven methodology of maximizing returns, but they are likely to be contained in the ETF, and I will wait a bit longer before I attempt to identify the Amazon.com of the marijuana or cannabis sector.

Appendix

TWMJF

APHQF

ACBFF

SMG

GWPRF

MEDFF

CNTTF

PRMCF

INSY

CMMDF

SPRWF

EMHTF

OGRMF

XXII

RDDTF

HYYDF

ZYNE

NWKRF

VRNDF

MRRCF

WDDMF

ABCCF

EMMBF

ICCLF

IVITF

HRVOF

IIPR

IMLFF

11/29/17

$13.6298

$8.2100

$5.2500

$98.3800

$10.1200

$12.1500

$5.2450

$3.1319

$5.2900

$14.3000

$1.3200

$1.9448

$2.5629

$2.2600

$1.0648

$1.8696

$13.7600

$0.3900

$2.2589

$1.5700

$1.6070

$1.1477

$1.2600

$0.7667

$1.0989

$0.7051

$18.4100

$0.5240

11/30/17

$14.2790

$8.7724

$6.0000

$98.9000

$9.1600

$12.5210

$5.2475

$3.3063

$5.3000

$15.1747

$1.4600

$2.3000

$2.6200

$2.3300

$1.2986

$1.9155

$13.7700

$0.3900

$2.3164

$1.7720

$1.6800

$1.1200

$1.2700

$0.7465

$1.1010

$0.6999

$18.1500

$0.5250

12/1/17

$14.2010

$8.9500

$5.9200

$99.2500

$10.2500

$12.5841

$5.6428

$3.3092

$5.2500

$14.9753

$1.5100

$2.2954

$2.6300

$2.3600

$1.3437

$1.9686

$14.5800

$0.4139

$2.3927

$1.8200

$1.8380

$1.1000

$1.3400

$0.7490

$1.1739

$0.7390

$18.9000

$0.5400

12/4/17

$14.3800

$9.1700

$5.8500

$100.6700

$9.8500

$12.4984

$5.6010

$3.2492

$5.2100

$15.0997

$1.5000

$2.5868

$2.6100

$2.3100

$1.4926

$2.1143

$13.3700

$0.4204

$2.4551

$1.6823

$1.8140

$1.0709

$1.3200

$0.7690

$1.1609

$0.7770

$19.1600

$0.5893

12/5/17

$14.7900

$10.6600

$5.8200

$101.2900

$9.2500

$12.1925

$5.9507

$3.2853

$5.3700

$15.8099

$1.5385

$2.8802

$2.7000

$2.3800

$1.4520

$2.5407

$13.0100

$0.4200

$2.4850

$1.6750

$1.7603

$1.1452

$1.3299

$0.7686

$1.1800

$0.7930

$19.2800

$0.6300

12/6/17

$14.3790

$10.4100

$5.4700

$100.4200

$9.9900

$11.9451

$5.7716

$3.3200

$5.2400

$15.2638

$1.4898

$3.1400

$3.0000

$2.3400

$1.3325

$2.3793

$11.5600

$0.4174

$2.3250

$1.7000

$1.7300

$1.1300

$1.3023

$0.7150

$1.2200

$0.7840

$19.3600

$0.6283

12/7/17

$14.2400

$10.1306

$5.2000

$101.4100

$9.9001

$12.0960

$5.7196

$3.4100

$5.8600

$15.5401

$1.4500

$3.0249

$2.7900

$2.4100

$1.3650

$2.4600

$11.7800

$0.4121

$2.1498

$1.6803

$1.7240

$1.0700

$1.2952

$0.6973

$1.2754

$0.7881

$19.9300

$0.6252

12/8/17

$15.1200

$10.4865

$5.5180

$101.4800

$10.4400

$12.1800

$5.9570

$3.4885

$6.0900

$15.4976

$1.4700

$3.0999

$2.9490

$2.6500

$1.4032

$2.4842

$11.9000

$0.4098

$2.4138

$1.6600

$1.8228

$1.1199

$1.2890

$0.7174

$1.2409

$0.8591

$19.8800

$0.7192

12/11/17

$15.4990

$10.9290

$5.6900

$102.6600

$9.9700

$12.5003

$6.1137

$3.6000

$5.8100

$15.4478

$1.5100

$3.2328

$3.1800

$2.8200

$1.4238

$2.7037

$11.4000

$0.4309

$2.4187

$1.6800

$1.8778

$1.1100

$1.3500

$0.7400

$1.2200

$1.0000

$20.8000

$0.7975

12/12/17

$15.5500

$11.7690

$5.6277

$102.7000

$10.4400

$12.4678

$6.5663

$3.9200

$5.8200

$15.5649

$1.5300

$3.9100

$3.2100

$2.6300

$1.4000

$3.1970

$11.1700

$0.4474

$2.4055

$1.8131

$1.8286

$1.2714

$1.4419

$0.7264

$1.1800

$1.0000

$19.8800

$0.7542

12/13/17

$14.9500

$11.0500

$5.4690

$102.4600

$10.4000

$12.2900

$6.6400

$3.8566

$6.2800

$15.3555

$1.4940

$3.7089

$3.0800

$2.5500

$1.3139

$3.1776

$11.7200

$0.4740

$2.3554

$1.6900

$1.8370

$1.2000

$1.3900

$0.7273

$1.1300

$0.9477

$20.3200

$0.7565

12/14/17

$15.3500

$11.1369

$5.5800

$102.0700

$10.2500

$12.5500

$6.6405

$3.7196

$6.0300

$15.2319

$1.5190

$3.8827

$3.0700

$2.6100

$1.3530

$3.0626

$11.4200

$0.4837

$2.3405

$1.7300

$1.9160

$1.2200

$1.3842

$0.7204

$1.1400

$0.9667

$22.6000

$0.7790

12/15/17

$15.0577

$11.0400

$5.4785

$102.5800

$10.7700

$12.4747

$6.3025

$3.7500

$6.2000

$15.0810

$1.4399

$3.7984

$2.9300

$2.6500

$1.3383

$2.9553

$11.4700

$0.4790

$2.3370

$1.6400

$1.7970

$1.2062

$1.3200

$0.7356

$1.1200

$0.9208

$24.8000

$0.7548

12/18/17

$16.0294

$11.2030

$5.4600

$102.8400

$10.7500

$12.4000

$6.4530

$4.0073

$6.6900

$15.2365

$1.4797

$3.7700

$2.8600

$2.6000

$1.3206

$2.9897

$11.9800

$0.4610

$2.2644

$1.6110

$1.7961

$1.1900

$1.4277

$0.7248

$1.1100

$0.9429

$24.7600

$0.7101

12/19/17

$17.0000

$11.5300

$5.5150

$102.9800

$10.9000

$12.3800

$6.5100

$4.1520

$6.9900

$15.3000

$1.4490

$3.6990

$2.9890

$2.4500

$1.2850

$3.0837

$11.7800

$0.4178

$2.2177

$1.6300

$1.7442

$1.1700

$1.4112

$0.6890

$1.1390

$0.9187

$23.4700

$0.6400

12/20/17

$16.4600

$11.2949

$5.4700

$102.8500

$10.5800

$12.4900

$6.4361

$4.0800

$7.2000

$15.5960

$1.4000

$3.4900

$2.8900

$2.5600

$1.1819

$2.9974

$11.9500

$0.4104

$2.1534

$1.5673

$1.6601

$1.1190

$1.3900

$0.6898

$1.1300

$0.8630

$24.9000

$0.7066

12/21/17

$17.1908

$11.7230

$5.5000

$102.4300

$11.6500

$12.7000

$6.5420

$4.3000

$7.0300

$15.4375

$1.3995

$3.3390

$2.8773

$2.5900

$1.1810

$3.0462

$11.9600

$0.3955

$2.1001

$1.5562

$1.7392

$1.1600

$1.3900

$0.7636

$1.1079

$0.9008

$24.1400

$0.7250

12/22/17

$18.1400

$13.2300

$5.6700

$102.5500

$11.0950

$12.8500

$6.4770

$5.2300

$7.1200

$15.4042

$1.4700

$3.8400

$2.9100

$2.5600

$1.2840

$2.9812

$12.0600

$0.4000

$2.2000

$1.6900

$1.6930

$1.2000

$1.4100

$0.7802

$1.1490

$0.9313

$24.6700

$0.7480

12/26/17

$19.5500

$13.2300

$6.1600

$102.9700

$11.9900

$13.8000

$6.4770

$5.2300

$8.2000

$15.4042

$1.4700

$4.3000

$3.1700

$2.5800

$1.2840

$2.9812

$12.6500

$0.4000

$2.2000

$1.7900

$1.6930

$1.3300

$1.5400

$0.7802

$1.2200

$0.9313

$26.0600

$0.8200

12/27/17

$21.9907

$13.3500

$6.3700

$103.0700

$11.7500

$13.5161

$7.1680

$5.5381

$7.7700

$16.4946

$1.5289

$3.9899

$3.1600

$2.7700

$1.4299

$3.2046

$12.6500

$0.4558

$2.1779

$1.7900

$1.8710

$1.2449

$1.6200

$0.7990

$1.2300

$1.0096

$28.0000

$0.8199

12/28/17

$24.2000

$14.3290

$7.1700

$104.9600

$12.2300

$16.0700

$7.4866

$7.0000

$8.6200

$18.2964

$1.6180

$3.9960

$3.2300

$2.9100

$1.4300

$3.2821

$13.1400

$0.4820

$2.2870

$1.8880

$1.9400

$1.2592

$1.7990

$0.8213

$1.2231

$1.0304

$28.6400

$0.9330

12/29/17

$23.6800

$14.7500

$7.6300

$106.9900

$11.1600

$16.8993

$7.2960

$7.7487

$9.6200

$17.9000

$1.8254

$4.2900

$3.2359

$2.8000

$1.3884

$3.2601

$12.5200

$0.4560

$2.1857

$2.0700

$1.9799

$1.2200

$1.8231

$0.8250

$1.2800

$1.0114

$32.2800

$1.0600

TWMJF

APHQF

ACBFF

SMG

GWPRF

MEDFF

CNTTF

PRMCF

INSY

CMMDF

SPRWF

EMHTF

OGRMF

XXII

RDDTF

HYYDF

ZYNE

NWKRF

VRNDF

MRRCF

WDDMF

ABCCF

EMMBF

ICCLF

IVITF

HRVOF

IIPR

IMLFF

11/29/17

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

11/30/17

105%

107%

114%

101%

91%

103%

100%

106%

100%

106%

111%

118%

102%

103%

122%

102%

100%

100%

103%

113%

105%

98%

101%

97%

100%

99%

99%

100%

12/1/17

104%

109%

113%

101%

101%

104%

108%

106%

99%

105%

114%

118%

103%

104%

126%

105%

106%

106%

106%

116%

114%

96%

106%

98%

107%

105%

103%

103%

12/4/17

106%

112%

111%

102%

97%

103%

107%

104%

98%

106%

114%

133%

102%

102%

140%

113%

97%

108%

109%

107%

113%

93%

105%

100%

106%

110%

104%

112%

12/5/17

109%

130%

111%

103%

91%

100%

113%

105%

102%

111%

117%

148%

105%

105%

136%

136%

95%

108%

110%

107%

110%

100%

106%

100%

107%

112%

105%

120%

12/6/17

105%

127%

104%

102%

99%

98%

110%

106%

99%

107%

113%

161%

117%

104%

125%

127%

84%

107%

103%

108%

108%

98%

103%

93%

111%

111%

105%

120%

12/7/17

104%

123%

99%

103%

98%

100%

109%

109%

111%

109%

110%

156%

109%

107%

128%

132%

86%

106%

95%

107%

107%

93%

103%

91%

116%

112%

108%

119%

12/8/17

111%

128%

105%

103%

103%

100%

114%

111%

115%

108%

111%

159%

115%

117%

132%

133%

86%

105%

107%

106%

113%

98%

102%

94%

113%

122%

108%

137%

12/11/17

114%

133%

108%

104%

99%

103%

117%

115%

110%

108%

114%

166%

124%

125%

134%

145%

83%

110%

107%

107%

117%

97%

107%

97%

111%

142%

113%

152%

12/12/17

114%

143%

107%

104%

103%

103%

125%

125%

110%

109%

116%

201%

125%

116%

131%

171%

81%

115%

106%

115%

114%

111%

114%

95%

107%

142%

108%

144%

12/13/17

110%

135%

104%

104%

103%

101%

127%

123%

119%

107%

113%

191%

120%

113%

123%

170%

85%

122%

104%

108%

114%

105%

110%

95%

103%

134%

110%

144%

12/14/17

113%

136%

106%

104%

101%

103%

127%

119%

114%

107%

115%

200%

120%

115%

127%

164%

83%

124%

104%

110%

119%

106%

110%

94%

104%

137%

123%

149%

12/15/17

110%

134%

104%

104%

106%

103%

120%

120%

117%

105%

109%

195%

114%

117%

126%

158%

83%

123%

103%

104%

112%

105%

105%

96%

102%

131%

135%

144%

12/18/17

118%

136%

104%

105%

106%

102%

123%

128%

126%

107%

112%

194%

112%

115%

124%

160%

87%

118%

100%

103%

112%

104%

113%

95%

101%

134%

134%

136%

12/19/17

125%

140%

105%

105%

108%

102%

124%

133%

132%

107%

110%

190%

117%

108%

121%

165%

86%

107%

98%

104%

109%

102%

112%

90%

104%

130%

127%

122%

12/20/17

121%

138%

104%

105%

105%

103%

123%

130%

136%

109%

106%

179%

113%

113%

111%

160%

87%

105%

95%

100%

103%

97%

110%

90%

103%

122%

135%

135%

12/21/17

126%

143%

105%

104%

115%

105%

125%

137%

133%

108%

106%

172%

112%

115%

111%

163%

87%

101%

93%

99%

108%

101%

110%

100%

101%

128%

131%

138%

12/22/17

133%

161%

108%

104%

110%

106%

123%

167%

135%

108%

111%

197%

114%

113%

121%

159%

88%

103%

97%

108%

105%

105%

112%

102%

105%

132%

134%

143%

12/26/17

143%

161%

117%

105%

118%

114%

123%

167%

155%

108%

111%

221%

124%

114%

121%

159%

92%

103%

97%

114%

105%

116%

122%

102%

111%

132%

142%

156%

12/27/17

161%

163%

121%

105%

116%

111%

137%

177%

147%

115%

116%

205%

123%

123%

134%

171%

92%

117%

96%

114%

116%

108%

129%

104%

112%

143%

152%

156%

12/28/17

178%

175%

137%

107%

121%

132%

143%

224%

163%

128%

123%

205%

126%

129%

134%

176%

95%

124%

101%

120%

121%

110%

143%

107%

111%

146%

156%

178%

12/29/17

174%

180%

145%

109%

110%

139%

139%

247%

182%

125%

138%

221%

126%

124%

130%

174%

91%

117%

97%

132%

123%

106%

145%

108%

116%

143%

175%

202%

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Editor's Note: This article covers one or more microcap stocks. Please be aware of the risks associated with these stocks.