Cannabis companies have an eventful four years ahead of them.
Pot stocks have been hot following Election Day, with big names in the space including Canopy Growth, Aurora Cannabis, Cronos Group and Tilray all lighting up on the prospects of a Joe Biden presidency.
Exchange-traded funds tracking the space have also soared over that time frame, with one of the biggest gainers being the Amplify Seymour Cannabis ETF (CNBS), up nearly 23%.
Tim Seymour, founder and chief investment officer of Seymour Asset Management and the portfolio manager of CNBS, said the election bolstered the space in more ways than one.
“The dynamics in the cannabis sector are really extraordinary,” he told CNBC’s “ETF Edge” on Monday. “We saw five new states vote through either adult or medical markets. The top-line growth story is 30-40%. … This is CPG, this is very sophisticated and the country’s in favor.”
For Seymour and CNBS, the key is “finding the right exposure,” he said. The ETF’s top five holdings are GrowGeneration at roughly 12%, Canopy Growth at 11%, GW Pharmaceuticals at 11%, Village Farms at 11% and Aphria at just under 10%.
“We’re the only derivative-free cannabis ETF that’s up year to date,” with a nearly 15.5% gain as of Friday’s close, Seymour said.
The ETFMG Alternative Harvest ETF (MJ), the largest pot ETF by assets under management, is down over 22% for 2020.
“This is all about active management. This is all about being