POTX


Cannabis ETF

Fund 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.

Fund 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.

Why POTX?

High Growth Potential

Globally, legal cannabis sales increased 48% from 2019 to 2020, exceeding $21bn. Forecasts suggest the market could surpass $55bn in 2026.1

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.

1BDSA, Mar 2021
2Gallup, Nov 2020

Fund Details As of 09/15/21

Key Facts

Ticker POTX
Inception Date 09/17/19
CUSIP 37954Y426
ISIN US37954Y4263
Bloomberg Index Ticker POTX
Primary Exchange Nasdaq
Number of Holdings 23

Stats & Fees

Net Assets $131,683,496
Net Asset Value (NAV) $9.33
Shares Outstanding 14,110,000
Total Expense Ratio 0.51%

Distributions

30-Day SEC Yield -0.39%
Distribution Frequency Semi-Annually

Fund Prices As of 09/15/21

NAV $9.33 Daily Change $0.15 1.63%
Market Price $9.26 Daily Change -$0.03 -0.32%
30-Day Median Bid-Ask Spread 0.79%

Performance History

As of recent
(06/30/21)
As of recent
(06/30/21)
Fund NAV Market Price Index
1 Year 37.94% 38.12% 33.57%
Since Inception -24.51% -25.35% -29.02%
1 Year 11.67% 11.51% 8.75%
Since Inception -32.77% -33.51% -36.67%
Year-to-Date 40.13% 40.17% 39.41%
1 Month -9.75% -9.13% -9.94%
3 Months -13.27% -13.54% -13.65%
Since Inception -39.47% -40.68% -45.79%
Year-to-Date 6.63% 6.50% 5.24%
1 Month -9.38% -8.56% -9.93%
3 Months -31.33% -30.95% -32.01%
Since Inception -53.94% -54.93% -59.08%

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 of the Fund, when observed, is unusual and investors should not expect such performance to be repeated.

Fund Characteristics As of 09/15/21

Return on Equity -37.90%
Weighted Avg. Market Cap 1,852 M
2020 2021
Price-to-earnings -1.70 -6.45
Price-to-book value 2.07 2.98

Source: AltaVista Research, LLC

Fund Risk Stats As of 09/15/21

Versus Beta
S&P 500 1.51
MSCI EAFE 1.80
MSCI Emg. Mkts 1.22
Standard Deviation 69.60%

Source: AltaVista Research, LLC

Sector Breakdown As of 08/31/21

% of Net Assets
Consumer Staples 73.0
Health Care 20.2
Financials 5.6
Consumer Discretionary 1.2

Source: AltaVista Research, LLC

Country Breakdown As of 08/31/21

% of Net Assets
Canada 84.6
United States 13.9
Australia 1.5

Source: AltaVista Research, LLC

Top Holdings As of 09/15/21

Net Assets (%) Ticker Name SEDOL Market Price ($) Shares Held Market Value ($)
9.11 ACB AURORA CANNABIS INC BLB8BB7 6.68 1,796,675 12,001,789.00
8.90 OGI CN ORGANIGRAM HOLDINGS INC BQ963P6 2.42 4,844,556 11,720,236.68
8.47 SNDL SUNDIAL GROWERS INC BJV2RL7 0.73 15,287,971 11,157,161.24
7.89 TLRY TILRAY INC-CLASS 2 COMMON BDD1B29 12.03 863,166 10,383,886.98
7.67 CRON CN CRONOS GROUP INC BF01YS3 5.91 1,709,211 10,094,324.36
7.47 WEED CN CANOPY GROWTH CORP BYTN3W0 14.77 666,165 9,838,290.86
5.03 MYMD MYMD PHARMACEUTICALS INC BMHVC92 6.79 975,972 6,626,849.88
4.94 VLNS CN VALENS CO INC/THE BKMPJ38 1.98 3,276,838 6,502,639.35
4.73 AFCG AFC GAMMA INC BMPRJ46 21.64 287,554 6,222,668.56
4.05 FLGC FLORA GROWTH CORP BLFBP98 6.00 887,878 5,327,268.00
3.53 CWEB CN CHARLOTTES WEB H BGHY2B1 2.11 2,204,526 4,653,582.97
3.52 ZYNE ZYNERBA PHARMACE BZ03R68 4.35 1,066,776 4,640,475.60
3.33 XLY CN AUXLY CANNABIS GROUP INC BDGMQB3 0.20 21,723,377 4,379,539.97
3.08 CRDL CN CARDIOL THERAP-A BHZT969 3.91 1,038,542 4,056,131.15
3.00 FAF CN FIRE & FLOWER HO BJJG8Y1 0.72 5,494,956 3,953,362.03
2.84 HEXO CN HEXO CORP BMDCRL6 2.10 1,784,722 3,739,189.07
2.83 CRBP CORBUS PHARMACEU BRYGB65 1.13 3,291,690 3,719,609.70
1.79 AH CN ALEAFIA HEALTH INC BDRXWQ2 0.28 8,495,002 2,350,674.55
1.76 CPH AU CRESO PHARMA LTD BDGMXK1 0.09 26,355,421 2,317,112.86
1.64 TBP CN TETRA BIO-PHARMA INC BDCBXM4 0.21 10,332,109 2,164,690.58
1.50 AVNT CN AVANT BRANDS INC BL6JPP7 0.44 4,461,407 1,975,244.43
1.33 YCBD CBDMD INC BJHG360 2.02 868,591 1,754,553.82
1.22 LABS CN MEDIPHARM LABS CORP BG87WT7 0.25 6,350,481 1,606,636.30
0.38 CASH 1.00 497,578 497,578.40
Holdings are subject to change.


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.