Amplify Seymour Cannabis ETF

CNBS

Market cap $119M

It may not be the end of the quarter yet, but we have made it through summer, and that seems like a good checkpoint to evaluate the top ETF investment themes YTD. Let's take a moment to look in this year's thematic ETF rearview mirror.

ETFs tied to Cannabis, Asia, China, materials and bitcoin miners led August's gains in Wall Street. ETFs like WEED, KSTR, CNXT, GBUG and WGMI won in August.

Cannabis ETF spent the first half of the year in the performance doldrums. But they have rallied of late on news that the Trump administration is open to reclassifying marijuana as a less dangerous drug.

Amplify's CNBS ETF has shifted focus to American cannabis and hemp, making it a better option than MSOS due to its more diversified structure. CNBS's portfolio is less concentrated in a few stocks compared to MSOS, reducing risk and offering better potential for long-term performance. Risks include 280E taxation remaining, CNBS's smaller size, and limited liquidity, but Tim Seymour's active management is a positive factor.

Cannabis stocks tend to move on speculation around potential federal reforms around pot.

CHICAGO, Jan. 28, 2025 (GLOBE NEWSWIRE) -- Amplify ETFs announces the realignment of its cannabis ETFs to provide investors with dynamic exposure to the cannabis industry. On January 28, 2025, the Amplify Seymour Cannabis ETF (CNBS) will change its investment policy to invest in securities of U.S. companies engaged in cannabis and hemp-related activities.

This year has been a big year for active ETFs! According to Morningstar, even though actively managed ETFs still only represent 7% of ETF assets, they accounted for 25% of the flows in the first half of this year, growing to a record $889 billion from their start of the year, $714 billion.

How to best invest in the cannabis sector with Pablo Zuanic, Tim Seymour and Julian Lin. Compelling metrics for evaluating cannabis stocks include EV/EBITDA, EV/sales, and total addressable market.

Wall Street was upbeat last week. The Fed's plan to slower the balance sheet tightening process and the release of downbeat jobs data dragged down bond yields.

The Canadian cannabis industry is in a shakeout phase, with poorly run businesses struggling and the industry maturing.