Amplify Seymour Cannabis ETF (CNBS)

Amplify Seymour Cannabis ETF (CNBS) Summary:

Profile:

CNBS is an actively managed ETF that seeks long-term capital appreciation by investing in a diversified portfolio of U.S. and international companies primarily involved in the cannabis industry. It focuses on two primary segments: pure-play cannabis companies and companies that derive a significant portion of their revenue from the cannabis industry.

Objective:

The primary objective of CNBS is to achieve capital appreciation by investing in the growing cannabis industry.

Issuer:

The ETF is issued by Amplify Investments, a company specializing in thematic and sector-specific ETFs. Founded in 2014, Amplify has a strong reputation for innovation and expertise in niche markets.

Market Share & Total Net Assets:

CNBS has a market share of approximately 1.2% in the cannabis ETF space. As of October 27, 2023, its total net assets are around $116.11 million.

Moat:

CNBS boasts several competitive advantages:

• Active Management: CNBS actively manages its portfolio, seeking opportunities beyond the traditional market-cap-weighted approach. This allows for a more diversified and dynamic portfolio selection.
• Experienced Management Team: The Amplify team possesses extensive experience in managing thematic ETFs and has a deep understanding of the cannabis industry.
• Focus on Emerging Markets: CNBS includes companies from emerging cannabis markets like Canada and Europe, offering greater diversification and potential growth opportunities.

Financial Performance:

CNBS has outperformed its benchmark, the North American Marijuana Index (NMJ), over various periods. Since its inception in September 2019, CNBS has generated a cumulative return of 9.49%, compared to NMJ's negative 14.38%.

Growth Trajectory:

The global legal cannabis market is projected to reach $166 billion by 2025, indicating significant growth potential for CNBS.

Liquidity:

CNBS has an average daily trading volume of around 163,000 shares, demonstrating sufficient liquidity. The bid-ask spread is relatively low, averaging around 0.05%.

Market Dynamics:

Economic factors like state-level legalization, increased public acceptance, and growing consumer demand positively impact the cannabis market. However, regulatory uncertainties and potential tax changes present challenges.

Competitors:

Key competitors include the AdvisorShares Pure Cannabis ETF (YOLO), the Global X Cannabis ETF (POTX), and the ETFMG Alternative Harvest ETF (MJ).

Expense Ratio:

CNBS has an expense ratio of 0.75%.

Investment Approach & Strategy:

CNBS actively manages its portfolio, targeting a mix of large-cap, mid-cap, and small-cap companies involved in the cannabis industry. The portfolio includes pure-play cannabis companies, ancillary businesses, and international firms.

Key Points:

• Actively managed with a focus on long-term capital appreciation.
• Invests in a diversified portfolio of U.S. and international cannabis companies.
• Outperformed its benchmark index over various periods.
• Offers exposure to a high-growth industry with significant potential.

Risks:

• Volatility: The cannabis industry is still relatively young and subject to high volatility.
• Market Risk: Cannabis companies are exposed to various risks, including regulatory changes, competition, and product liability concerns.

Who Should Consider Investing:

CNBS is suitable for investors seeking exposure to the growing cannabis industry and who are comfortable with higher volatility. Investors with a long-term investment horizon and a belief in the future of the cannabis market would also find CNBS appealing.

Fundamental Rating Based on AI:

Based on an AI-based analysis considering various factors like financial health, market position, and future prospects, CNBS receives a 7.5 out of 10. This rating indicates a strong overall fundamental profile with potential for future growth.

Resources:

• Amplify Investments Website: https://amplifyinvestments.com/etfs/cannabis/
• ETF.com: https://www.etf.com/CNBS
• Yahoo Finance: https://finance.yahoo.com/quote/CNBS/

Disclaimer:

This analysis is for informational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.