E A Deep Dive Into The October Performance Of Marijuana Stocks, ETFs, Warrants & Rights

TM editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence. 

There are 8 categories within the overall cannabis market that are well worth your attention as the stock performance of each category has varied considerably ranging from +1.8% to -32.6% in October versus an overall marijuana market decline of 12.8%. That is a dramatic spread and one worth understanding as you position yourself in this burgeoning market sector.

The 8 baskets of marijuana stocks/ETFs consist of:

1. The Marijuana & Marijuana-related ETFs Category

This category consists of 15 ETFs of which 2 are US-centric (HMUS; USMJ), 2 are leveraged plays (HMJU; HMJI), 2 are marijuana/marijuana-related plays (ACT; MJ) and the remaining 9 are more broadly based and 6 of the 15 are passively managed and 9 are actively managed.

7 ETFs have been added over the course of 2019 making historical performance comparatives for all periods impossible except for the July/August/September periods but some interesting results are noted:

  • the total basket of ETFs, in total (excluding the leveraged ETFs), declined 8.2% in October following on the heels of  -20.9% in September and -11.8% in August.
  • the passively managed pure-play ETFs (HMUS, HMJR, HMMJ, THCX, and POTXdeclined 11.2% in October, -14.7% in September and -12.5% in August.
  • the actively managed pure-play ETFs (MJJ, YOLO, CNBS, TOKE, SEED & USMJ) declined 9.2% in October, -14.6% in September -12.4% decline in August.
  • the very diversified ETFs (ACT & MJ which contain a large number of tobacco, alcohol, packaged goods consumer and pharmaceutical companies) declined 3.2% in October, -10.0% in September and -9.3% in August.
  • the 2x daily bull ETF declined 26.3% in October, -29.5% in September and -30.5% in August.
  • the inverse ETF increased 9.4%in October, +12.0% in September and +12.2% in August.
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