One of the greatest options for people looking to invest in the global cannabis market is the AdvisorShares Pure Cannabis ETF (YOLO). YOLO is unlike most cannabis ETFs, which purport to have worldwide exposure yet lack exposure in the United States. YOLO’s Canadian exposure management is unique, and it does not appear to place as much attention on market cap as its counterparts. When considering that the biggest opportunity is in the United States, I debate whether YOLO is the best option overall.
Who manages the YOLO ETF?
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.
What exactly is the 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 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. For indexed equity ETFs, the JETS management fee is a little high, but it’s similar to other specialized products.
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.
Where can I get Yolo?
Pancakeswap is where most new unlisted tokens are usually sold. To purchase YOLO BSC, go to Pancakeswap and copy the YOLO BSC contact address and paste it into the conversion box. On Pancakeswap, you may buy this cryptocurrency with other currencies like BTC or ETH. 0xdd110ce8cc33591e4a2ee75498bb599ffda60cd9 is the contract address of YOLO BSC. Stay tuned for more bitcoin news.
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.