Cannabis ETF

Reasons to Consider POTX

High Growth Potential

The global cannabis market is expected to increase more than 25% from 2022 to 2023, reaching $21bn. Forecasts suggest the market could surpass $100bn by 2030.1

Secular Tailwinds

Efforts to legalize cannabis are making progress in many countries, including the US. More than two-thirds of Americans live in a state where a form of legal cannabis is available.2

Efficient Access

An evolving regulatory environment can make navigating the cannabis theme challenging. POTX delivers a basket of publicly-listed companies involved in multiple aspects of this emerging industry in a single trade.

1Grand View Research, Apr 2022
2Gallup, Nov 2020

Key Information As of 10/02/23

Inception Date 09/17/19
Total Expense Ratio 0.51%
Net Assets $33.77 million
NAV $6.41
Fact Sheet View the document

ETF Summary

The Global X Cannabis ETF (POTX) seeks to invest in companies across the cannabis industry. This includes companies involved in the legal production, growth and distribution of cannabis and industrial hemp, as well as those involved in providing financial services to the cannabis industry, pharmaceutical applications of cannabis, cannabidiol (i.e., CBD), or other related uses including but not limited to extracts, derivatives or synthetic versions.

ETF Objective

The Global X Cannabis ETF (POTX) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Cannabis Index.

Trading Details As of 10/02/23

Ticker POTX
Bloomberg Index Ticker POTX
CUSIP 37954Y145
ISIN US37954Y1459
Primary Exchange Nasdaq
Shares Outstanding 5,268,357
Number of Holdings 15
30-Day Median Bid-Ask Spread 1.20%

Distributions As of 10/02/23

30-Day SEC Yield 1.63%
Distribution Frequency Semi-Annually

ETF Prices As of 10/02/23

NAV $6.41 Daily Change -$0.27 -4.04%
Market Price $6.43 Daily Change -$0.22 -3.31%

Performance History

As of recent month & quarter-end (09/30/23)
As of recent month & quarter-end (09/30/23)
Fund NAV Market Price Index
1 Year -49.11% -49.59% -50.91%
3 Years -44.51% -44.80% -46.15%
Since Inception -51.59% -51.95% -53.76%
1 Year -49.11% -49.59% -50.91%
3 Years -44.51% -44.80% -46.15%
Since Inception -51.59% -51.95% -53.76%
Year-to-Date -37.87% -38.35% -39.73%
1 Month -9.73% -10.86% -9.80%
3 Months 6.20% 4.23% 5.39%
Since Inception -94.66% -94.82% -95.56%
Year-to-Date -37.87% -38.35% -39.73%
1 Month -9.73% -10.86% -9.80%
3 Months 6.20% 4.23% 5.39%
Since Inception -94.66% -94.82% -95.56%

Performance is shown on a total return basis (i.e., with gross income reinvested, where applicable). Cumulative return is the aggregate amount that an investment has gained or lost over time. Annualized return is the average return gained or lost by an investment each year over a given time period.

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. High short-term performance, when observed, is unusual and investors should not expect such performance to be repeated.

Top Holdings As of 10/02/23

Net Assets (%) Ticker Name SEDOL Market Price ($) Shares Held Market Value ($)
19.48 SNDL SNDL INC BLFJY06 1.75 3,759,410 6,578,967.50
16.31 IIPR INNOVATIVE INDUS BD0NN55 74.28 74,144 5,507,416.32
16.10 TLRY TILRAY BRANDS INC BDD1B29 2.27 2,395,216 5,437,139.75
7.81 WEED CN CANOPY GROWTH CORP BYTN3W0 0.75 3,535,531 2,638,938.66
5.56 MAPS WM TECHNOLOGY INC BNM4710 1.34 1,402,360 1,879,162.40
5.07 CRON CN CRONOS GROUP INC BF01YS3 1.98 866,167 1,711,354.07
4.79 ACB AURORA CANNABIS INC BLB8BB7 0.56 2,888,202 1,617,393.12
4.16 OGI CN ORGANIGRAM HOLDINGS INC BRBP325 1.26 1,116,962 1,405,857.55
4.02 INCR INTERCURE LTD BJ11KM6 1.56 869,897 1,357,039.32
3.92 AFCG AFC GAMMA INC BMPRJ46 11.22 117,878 1,322,591.16
3.16 IHL AU INCANNEX HEALTHCARE LTD BYMPWQ0 0.04 24,306,618 1,068,599.76
2.82 BCAN BYND CANNASOFT E BP82596 0.98 971,777 952,341.46
2.51 BGXX BRIGHT GREEN CORP BPX2X64 0.37 2,294,794 847,467.42
1.92 FLGC FLORA GROWTH CORP BQKRF52 1.09 594,588 648,100.70
1.62 MYMD MYMD PHARMACEUTICALS INC BMHVC92 0.59 934,512 546,689.52
0.68 OTHER PAYABLE & RECEIVABLES 1.00 230,275 230,274.57
0.07 CASH 1.00 22,120 22,120.44
Holdings are subject to change. "Cash" denotes U.S. dollars.

Exposure As of 09/30/23

Sector Weight (%)
Health Care 46.6
Consumer Staples 28.1
Real Estate 16.1
Communication Services 5.3
Financials 4.0

Source: new windowAltaVista Research, LLC

Industry Weight (%)
Agricultural Commodities/Milling 81.2
Internet Software/Services 7.0
Finance/Rental/Leasing 5.2
Medical Specialties 4.0
Medical Distributors 2.6

Source: new windowAltaVista Research, LLC

Country Weight (%)
Canada 63.5
United States 29.5
Israel 3.9
Australia 3.1

Source: new windowAltaVista Research, LLC

All Sector, Industry and Geographic breakdowns, where provided, are based on equity positions held by the ETF and exclude cash, currencies, and other holdings.

ETF Characteristics As of 10/02/23

Return on Equity -5.80%
Weighted Avg. Market Cap 1,322 M
2022 2023
Price-to-earnings -0.93 -8.45
Price-to-book value 0.46 0.52

Source: new windowAltaVista Research, LLC

ETF Risk Stats As of 09/30/23

Versus Beta
S&P 500 1.63
NASDAQ-100 1.12
MSCI Emg. Mkts 1.31
Standard Deviation 61.50%

Source: new windowAltaVista Research, LLC

ETF Research

View More Related Research

Investing involves risk, including the possible loss of principal. The investable universe of companies in which POTX may invest may be limited. The Fund invests in securities of companies engaged in Healthcare and Pharmaceutical sectors. These sectors can be affected by government regulations, expiring patents, rapid product obsolescence, and intense industry competition. International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from social, economic or political instability in other nations. POTX is non-diversified.

POTX’s investments are concentrated in the cannabis industry, and the Fund may be susceptible to loss due to adverse occurrences affecting this industry. The cannabis industry is a very young, fast evolving industry with increased exposure to the risks associated with changes in applicable laws (including increased regulation, other rule changes, and related federal and state enforcement activities), as well as market developments, which may cause businesses to contract or close suddenly and negatively impact the value of securities held by the Fund.  Cannabis Companies are subject to various laws and regulations that may differ at the state/local, federal and international level. These laws and regulations may significantly affect a Cannabis Company’s ability to secure financing and traditional banking services, impact the market for cannabis business sales and services, and set limitations on cannabis use, production, transportation, export and storage. The possession, use and importation of marijuana remains illegal under U.S. federal law. Federal law criminalizing the use of marijuana remains enforceable notwithstanding state laws that legalize its use for medicinal and recreational purposes. This conflict creates volatility and risk for all Cannabis Companies, and any stepped-up enforcement of marijuana laws by the federal government could adversely affect the value of the Fund’s investments. Given the uncertain nature of the regulation of the cannabis industry in the United States, the Fund’s investment in certain entities could, under unique circumstances, raise issues under one or more of those laws, and any investigation or prosecution related to those investments could result in expense and losses to the Fund.

Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Beginning September 29, 2020, market price returns are based on the official closing price of an ETF share or, if the official closing price isn’t available, the midpoint between the national best bid and national best offer (“NBBO”) as of the time the ETF calculates current NAV per share. Prior to September 29, 2020, market price returns were based on the midpoint between the Bid and Ask price. Market price returns. NAVs are calculated using prices as of (4:00 PM Eastern Time). The returns shown do not represent the returns you would receive if you traded shares at other times. Indices are unmanaged and do not include the effect of fees, expenses or sales charges. One cannot invest directly in an index.

Since the Fund’s shares did not trade in the secondary market until several days after the Fund’s inception, for the period from inception to the first day of secondary market trading in Shares, the NAV of the Fund is used to calculate market returns.

Carefully consider the Fund’s investment objectives, risks, and charges and expenses before investing. This and other information can be found in the Fund’s summary or full prospectuses. Please read the prospectus carefully before investing.

Global X Management Company LLC serves as an advisor to Global X Funds. The Funds are distributed by SEI Investments Distribution Co. (SIDCO), which is not affiliated with Global X Management Company LLC or Mirae Asset Global Investments. Global X Funds are not sponsored, endorsed, issued, sold or promoted by Solactive AG, nor does Solactive AG make any representations regarding the advisability of investing in the Global X Funds. Neither SIDCO, Global X nor Mirae Asset Global Investments are affiliated with Solactive AG.