Any online brokerage account can be used to buy YOLO stock. WeBull, Vanguard Brokerage Services, TD Ameritrade, E*TRADE, Robinhood, Fidelity, and Charles Schwab are among of the most popular online brokerages providing access to the US stock market.
Is Yolo a decent exchange-traded fund (ETF)?
In both up and down markets, YOLO has been at or near the top of the cannabis ETF performance rankings. Although the amount of data available on the sector is insufficient to draw clear judgments about future performance, it is plenty to suggest that YOLO may have an advantage. When you take a closer look at YOLO, you’ll notice that it has some qualities that could help you perform better.
- This category contains the widest range of enterprises. This gives YOLO a wide range of possibilities to explore. Another ETF, a private equity investment company, a REIT, a grower, a company that serves commercial and urban cultivators, retail, a venture capital firm, and the expected licensed producers and MSOs are among the top 10 holdings. The full list of top 10 holdings can be found here:
What exactly is Yolo ETF?
The investment aims for long-term capital growth. The fund is an actively managed exchange-traded fund (“ETF”) that seeks to achieve its investment objective by investing at least 80% of its net assets (plus any borrowings for investment purposes) in securities of companies that generate at least 50% of their net revenue from the marijuana and hemp industry, as well as derivatives or other instruments with economic characteristics similar to such securities, under normal circumstances. It isn’t well-balanced.
Is THCX a worthwhile investment?
THCX has a score of 20, which is 60% lower than its historic median score of 50, indicating a higher risk than normal. Around terms of its previous Stock Score values, THCX is now trading in the 10-20 percentile range.
Is there an ETF for global jets?
The U.S. Global Jets ETF (JETS) is a stock exchange-traded fund that tracks an index of firms associated in the airline industry, such as airlines, manufacturers, airports, and terminal services. Airlines such as American, Southwest, United, and Delta are among the top holdings.
Who is the YOLO ETF’s owner?
Although you only have one life, your investment choices in cannabis appear to be limitless.
For example, last week saw the launch of the AdvisorShares Pure Cannabis ETF, an actively managed marijuana-themed exchange-traded fund with approximately $2.5 million in assets under management. The YOLO ETF, which is sponsored by BNY Mellon and holds shares of Canadian growers including as Aurora Cannabis and Canopy Growth, trades under the ticker YOLO.
How much does Yolo ETF cost?
Cannabis companies are growing in a new economy, as opposed to the usual growth stock, which is increasing in an existing market.
With over $300 million in assets under management, YOLO is one of the bigger cannabis ETFs. YOLO is actively managed and has a 0.75 percent expense ratio.
The net expense ratio, on the other hand, is defined as “interest expense, taxes, brokerage commissions, acquired fund fees and expenditures” minus “interest expense, taxes, brokerage commissions, acquired fund fees and expenses.” Why am I bringing this up?
After MSOS, another Advisorshare ETF, YOLO was the second ETF to hold assets in a multi-state operator. The fact that stocks and ETFs trade on major exchanges is generally taken for granted by investors. Because cannabis is an illegal narcotic on the federal level, multi-state operators are unable to list on major exchanges such as the Nasdaq. Individual investors can purchase these stocks in the United States via American depository receipts (“ADRs”), which trade on the pink sheets with limited (but enough) liquidity. Multi-state operators are consequently limited to listing their equities on Canadian exchanges. Because it does not directly own the stocks of multi-state operators, YOLO is permitted to own them while trading on the NYSE. YOLO instead owns “total return swaps,” which offer it complete access to the total returns of multi-state operator stocks while they trade on Canadian marketplaces. The cost of these total return swaps isn’t disclosed by YOLO, but I wouldn’t be shocked if the effective interest rate is about 3%.
YOLO is a hybrid of the US-based AdvisorShares Pure US Cannabis ETF (MSOS), another ETF managed by Ahrens, and other cannabis ETFs, such as the Alternative Harvest ETF (MJ), which are primarily focused on Canadian operators. The majority of YOLO’s holdings are in US stocks, as seen below:
What exactly is the MJ dividend?
On June 18, MJ paid a dividend of 28 cents per share to shareholders of record as on June 16th’s close of business. After deducting MJ’s 0.75 percent expense ratio, the fund plans to reward its shareholders with an annualized yield of 8.17 percent with this latest dividend.
THCX’s annualized yield before expenses and fees, according to back-of-the-envelope estimates, is roughly 6.7 percent.
But, with ETF valuations down by double digits (about 20%) since the beginning of the year, how is it conceivable that they are returning money to their shareholders?
According to Matt Markiewicz, Managing Director of THCX The Cannabis ETF, the money for the dividend (at least in THCX’s instance) comes from securities lending income.
This means that the fund’s positions are being lent out at attractive rates to borrowers. THCX shareholders are entitled to the bulk of the money generated, thus it is returned to them in the form of a dividend.
Take into note that most cannabis stocks have excellent borrowing rates due to their low market capitalization and float. This is due to a higher-than-average demand for equities to borrow either to short or just to trade and a lower-than-average supply of these stocks.
When you add in the fact that many cannabis companies are also significantly shorted, you’ve got a pretty good deal for the lender. In this scenario, ETFs such as THCX can lend shares to an institutional investor for as little as a few days, generating revenue for its own investors.