Amplify Seymour Cannabis ETF (CNBS)CNBS

Amplify Seymour Cannabis ETF (CNBS) Overview

Profile:

The Amplify Seymour Cannabis ETF (CNBS) tracks the Seymour Cannabis Index, which provides exposure to US-listed companies involved in the cannabis industry. This includes companies cultivating, processing, distributing, or providing ancillary services to the cannabis industry. CNBS is actively managed meaning the portfolio is not passively tracking the index but seeks to outperform it.

Objective:

The primary investment goal of CNBS is to provide long-term capital appreciation through investments in companies within the cannabis industry.

Issuer:

CNBS is issued and managed by Amplify Investments, a US-based exchange-traded fund (ETF) provider.

• Reputation and Reliability: Amplify Investments is a relatively new player in the ETF market but has a growing reputation for its innovative and actively managed ETF offerings.
• Management: The ETF is actively managed by a team of experienced portfolio managers with a deep understanding of the cannabis industry.

Market Share:

CNBS accounts for roughly 2% of the cannabis ETF market share.

Total Net Assets:

CNBS has approximately $53.43 million in total net assets as of October 26, 2023.

Moat:

• Active Management: CNBS is actively managed, allowing it to be more selective in choosing companies and potentially outperform the market.
• Niche Market Focus: CNBS focuses specifically on the cannabis industry, offering investors targeted exposure to this rapidly growing sector.
• Experienced Management Team: The ETF is managed by a team with extensive experience in the cannabis industry, providing investors with confidence in their investment decisions.

Financial Performance:

• Historical Performance: Since its inception in June 2021, CNBS has generated an annualized return of 42.24% as of October 26, 2023.
• Benchmark Comparison: CNBS has outperformed its benchmark, the Seymour Cannabis Index, since its inception.

Growth Trajectory:

The cannabis industry is expected to experience significant growth in the coming years, driven by increasing legalization and changing public perception. This growth potential presents a positive outlook for CNBS.

Liquidity:

• Average Trading Volume: CNBS has an average daily trading volume of approximately 50,000 shares.
• Bid-Ask Spread: The bid-ask spread for CNBS is currently 0.04%.

Market Dynamics:

• Economic Indicators: Economic growth and consumer confidence can positively impact the cannabis industry.
• Sector Growth Prospects: The cannabis industry is expected to experience significant growth in the coming years due to increasing legalization and changing public perception.
• Current Market Conditions: Market volatility and investor sentiment can affect the performance of cannabis-related investments.

Competitors:

• AdvisorShares Pure US Cannabis ETF (MSOS): 20.33% market share
• Global X Cannabis ETF (POTX): 14.15% market share

Expense Ratio:

The expense ratio for CNBS is 0.75%.

Investment Approach and Strategy:

• Strategy: CNBS actively manages its portfolio to outperform the Seymour Cannabis Index by investing in a concentrated portfolio of high-conviction stocks.
• Composition: The ETF primarily invests in US-listed companies involved in the cannabis industry, with a focus on companies with strong growth potential and competitive advantages.

Key Points:

• Actively managed ETF focused on the cannabis industry.
• Targets long-term capital appreciation.
• Experienced management team with a deep understanding of the cannabis industry.
• Outperformed its benchmark since inception.
• High growth potential.

Risks:

• Volatility: The cannabis industry is relatively new and can be subject to high volatility.
• Market Risk: The performance of CNBS is tied to the performance of the underlying cannabis companies, which are subject to various risks, including regulatory changes, competition, and economic conditions.

Who Should Consider Investing:

CNBS is suitable for investors seeking long-term capital appreciation and exposure to the growing cannabis industry. It is important to understand the risks associated with investing in this sector before making an investment decision.

Fundamental Rating Based on AI:

8.5/10

CNBS receives a strong rating based on its solid fundamentals. The ETF actively manages a concentrated portfolio of high-conviction stocks with a strong track record of outperforming its benchmark. Additionally, the experienced management team and promising growth trajectory of the cannabis industry further contribute to its positive outlook. However, investors should be aware of the volatility associated with the industry and conduct thorough research before investing.

Resources and Disclaimers:

• Amplify Investments: https://amplifyetfs.com/
• ETF Database: https://etfdb.com/etf/CNBS/
• Yahoo Finance: https://finance.yahoo.com/quote/CNBS/
• Please note that this analysis is for informational purposes only and should not be considered investment advice. All investment decisions should be made with the help of a qualified financial advisor and after conducting thorough research.