Global X Cannabis ETF
Name
As of 02/23/2024Price
Aum/Mkt Cap
YIELD
Annualized forward dividend yield. Multiplies the most recent dividend payout amount by its frequency and divides by the previous close price.
Exp Ratio
Expense ratio is the fund’s total annual operating expenses, including management fees, distribution fees, and other expenses, expressed as a percentage of average net assets.
Watchlist
Vitals
YTD Return
-11.6%
1 yr return
-48.6%
3 Yr Avg Return
-61.2%
5 Yr Avg Return
N/A
Net Assets
$35.2 M
Holdings in Top 10
83.5%
52 WEEK LOW AND HIGH
$5.2
$5.11
$10.76
Expenses
OPERATING FEES
Expense Ratio 0.51%
SALES FEES
Front Load N/A
Deferred Load N/A
TRADING FEES
Turnover N/A
Redemption Fee N/A
Min Investment
Standard (Taxable)
N/A
IRA
N/A
Fund Classification
Fund Type
Exchange Traded Fund
Name
As of 02/23/2024Price
Aum/Mkt Cap
YIELD
Annualized forward dividend yield. Multiplies the most recent dividend payout amount by its frequency and divides by the previous close price.
Exp Ratio
Expense ratio is the fund’s total annual operating expenses, including management fees, distribution fees, and other expenses, expressed as a percentage of average net assets.
Watchlist
POTX - Profile
Distributions
- YTD Total Return -11.6%
- 3 Yr Annualized Total Return -61.2%
- 5 Yr Annualized Total Return N/A
- Capital Gain Distribution Frequency Annually
- Net Income Ratio 1.76%
- Dividend Yield 6.4%
- Dividend Distribution Frequency SemiAnnual
Fund Details
-
Legal NameGlobal X Cannabis ETF
-
Fund Family NameGlobal X Funds
-
Inception DateSep 17, 2019
-
Shares Outstanding17801784
-
Share ClassN/A
-
CurrencyUSD
-
Domiciled CountryUS
-
ManagerNam To
Fund Description
The Fund invests at least 80% of its total assets in the securities of the Cannabis Index ("Underlying Index") and in American Depositary Receipts ("ADRs") and Global Depositary Receipts ("GDRs") based on the securities in the Underlying Index. The Fund will also invest, under normal circumstances, at least 80% of its net assets, plus borrowings for investment purposes (if any), in Cannabis Companies (as defined below), and in ADRs and GDRs based on such securities. The Fund's 80% investment policies are non-fundamental and requires 60 days prior written notice to shareholders before they can be changed. The Fund may lend securities representing up to one-third of the value of the Fund’s total assets (including the value of the collateral received).
The Underlying Index is designed to provide exposure to exchange-listed companies that are active in the cannabis industry (collectively, "Cannabis Companies"), as defined by Solactive AG, the provider of the Underlying Index ("Index Provider"). In order to be eligible for inclusion in the Underlying Index, a company is considered by the Index Provider to be a Cannabis Company if it derives at least 50% of its revenue, operating income, or assets from the cannabis industry. The cannabis industry is composed of the following areas: (i) the legal production, growth and distribution of marijuana, as well as extracts, derivative products or synthetic versions thereof; (ii) the legal production, growth and distribution of hemp, as well as extracts, derivative products or synthetic versions thereof; (iii) financial services (insurance offerings, property leasing, financing, capital markets activity and investments) provided to companies involved in the production, growth and distribution of cannabis; (iv) pharmaceutical applications of cannabis; (v) cannabidiol (better known as CBD) and cannabis oil products, edibles, topicals,
drinks and other products; (vi) products that may be used to consume cannabis; and (vii) the provision of software and/or online marketplaces or platforms primarily for the cannabis sector. "Hemp" refers to cannabis plants with a delta-9 tetrahydrocannabinol ("THC") concentration of not more than 0.3 percent on a dry weight basis, as well as derivatives thereof, whereas "marijuana" refers to all other cannabis plants and derivatives thereof. In addition, companies that the Index Provider expects to derive at least 50% of future revenue, operating income or assets from the cannabis industry based on its review of their primary business operations, capital investments and/or operating expenses, as well as other public statements, are eligible for inclusion in the Underlying Index ("Pre-Revenue Companies"). Pre-Revenue Companies are subject to an aggregate weight cap of 15% at each quarterly rebalance. Additionally, Pre-Revenue Companies do not count towards satisfaction of the Fund's policy to invest, under normal circumstances, at least 80% of its net assets, plus borrowings for investment purposes (if any), in Cannabis Companies, and in ADRs and GDRs based on such securities.
To be a part of the eligible universe of the Underlying Index, a Cannabis Company must be listed on a regulated stock exchange that requires issuers to maintain compliance with all laws, rules and regulations applicable to their business. As such, the Underlying Index is designed to invest in Cannabis Companies that represent that they operate cannabis-related business activities, or supply products and perform services for companies that grow, produce, distribute, or sell cannabis or products derived from cannabis, in a manner that is legal under all laws, rules and regulations applicable to the company's business. A company must also meet certain minimum market capitalization and liquidity criteria, as defined by the Index Provider. As of January 31, 2023, companies must have a minimum market capitalization of $100 million and a minimum average daily turnover for the last three and/or six months greater than or equal to $2 million in order to be eligible for inclusion in the Underlying Index as of the selection date. Companies in the Underlying Index must retain a minimum market capitalization of $80 million and average daily turnover for the last three and/or six months greater than or equal to $1.4 million as of the selection date in order to be eligible to remain in the Underlying Index. The aforementioned criteria may be reduced , as per the Underlying Index methodology, in the event that fewer than 25 companies meet these criteria. The market capitalization minimum requirement can be reduced to $50 million for new index constituents and $35 million for companies that are already index constituents. Similarly, the average daily turnover minimum requirement can be reduced to $500,000 for new index constituents and $200,000 for companies that are already index constituents. If there are still an insufficient number of companies that meet these reduced criteria to fulfill the weighting scheme requirements, the market capitalization and average daily turnover criteria can be reduced stepwise by 10% for companies that are index constituents until the index retains a sufficient number of securities. As of January 31, 2023, companies listed in the following countries were eligible for inclusion in the Underlying Index: Australia, Canada, United Kingdom, and the United States.
The Underlying Index is weighted according to modified effective market capitalization, using a scheme that accounts for liquidity in determining final weights and is reconstituted and re-weighted quarterly. Additionally, on an intra-quarter basis, if the Index Provider determines that a constituent of the Underlying Index does not meet the index requirements with respect to compliance with laws, rules and regulations, the Index Provider may remove such constituent outside of the regular rebalance schedule. Modified effective market capitalization weighting seeks to weight constituents based on market capitalization but accounting for liquidity in determining final weights, and subject to caps on the weights of the individual securities. Generally speaking, this approach will limit the amount of concentration in the largest market capitalization companies and thereby increase exposure to other companies. The Underlying Index may include large-, mid- or small-capitalization companies, and components primarily include mid-capitalization and small-capitalization companies. As of January 31, 2023, the Underlying Index had 17 constituents. The Fund's investment objective and Underlying Index may be changed without shareholder approval.
The Underlying Index is sponsored by the Index Provider, which is an organization that is independent of, and unaffiliated with, the Fund and Global X Management Company LLC, the investment adviser for the Fund ("Adviser"). The Index Provider determines the relative weightings of the securities in the Underlying Index and publishes information regarding the market value of the Underlying Index.
The Adviser uses a "passive" or indexing approach to try to achieve the Fund's investment objective. Unlike many investment companies, the Fund does not try to outperform the Underlying Index and does not seek temporary defensive positions when markets decline or appear overvalued. Additionally, the Fund will not invest in companies that, in the opinion of the Adviser, fail to meet any the criteria outlined below (collectively, the "Eligibility Criteria"):
•Each company must have securities listed on an exchange that requires compliance with all laws, rules and regulations applicable to their business, which includes U.S. federal laws if the company performs activities in the U.S. or is otherwise subject to U.S. jurisdiction.
•Each company may only supply products and/or perform services related to the cannabis industry in a manner that is legal under applicable national and local laws, including U.S. federal, state, and local laws.
"Legal under applicable national and local laws" refers to being permitted under the applicable (i) controlled substance or (ii) food, drug, and cosmetics, or equivalent laws and regulations under whose jurisdiction the company is subject that govern the cultivation, production or distribution, for medical or non-medical purposes, of cannabis in a particular country. The Adviser reviews publicly available information related to Underlying Index constituents for violations of Eligibility Criteria in connection with each quarterly and intra-quarter reconstitution of the Underlying Index. If, after acquiring a company's securities, the company, in the Adviser's opinion, no longer meets the Eligibility Criteria, or if the Index Provider removes the company from the Underlying Index for failure to comply with laws, rules and regulations applicable to their business, the Fund will promptly sell that position, potentially at a time when it is disadvantageous to do so. As of the date of this Prospectus, Cannabis Companies that grow or distribute marijuana inside the U.S. fail to meet Eligibility Criteria.
The Fund generally uses a representative sampling strategy with respect to the Underlying Index. "Representative sampling" is an indexing strategy that involves investing in a representative sample of securities that collectively has an investment profile similar to the Underlying Index in terms of key risk factors, performance attributes and other characteristics. These include country weightings, market capitalization and other financial characteristics of securities. The Fund may or may not hold all of the securities in the Underlying Index, in particular if the Adviser determines that one or more of the securities in the Underlying Index may fail to meet the Eligibility Criteria.
The Adviser expects that, over time, the correlation between the Fund's performance and that of the Underlying Index, before fees and expenses, will exceed 95%. A correlation percentage of 100% would indicate perfect correlation. If the Fund uses a replication strategy, it can be expected to have greater correlation to the Underlying Index than if it uses a representative sampling strategy.
The Fund concentrates its investments (i.e., holds 25% or more of its total assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated. As of January 31, 2023, the Underlying Index was concentrated in the pharmaceuticals industry and had significant exposure to the health care sector.
POTX - Performance
Return Ranking - Trailing
| Period | POTX Return | Category Return Low | Category Return High | Rank in Category (%) |
|---|---|---|---|---|
| YTD | -11.6% | -24.0% | 37.2% | 77.42% |
| 1 Yr | -48.6% | -48.6% | 51.7% | 100.00% |
| 3 Yr | -61.2%* | -61.2% | 17.2% | 100.00% |
| 5 Yr | N/A* | -8.1% | 19.9% | 76.47% |
| 10 Yr | N/A* | -2.3% | 12.0% | 72.41% |
* Annualized
Return Ranking - Calendar
| Period | POTX Return | Category Return Low | Category Return High | Rank in Category (%) |
|---|---|---|---|---|
| 2023 | -47.5% | -47.5% | 38.7% | 100.00% |
| 2022 | -68.1% | -72.7% | 8.2% | 90.32% |
| 2021 | -41.2% | -41.2% | 27.4% | 100.00% |
| 2020 | -34.0% | -34.0% | 233.6% | 100.00% |
| 2019 | N/A | -2.0% | 66.0% | N/A |
Total Return Ranking - Trailing
| Period | POTX Return | Category Return Low | Category Return High | Rank in Category (%) |
|---|---|---|---|---|
| YTD | -11.6% | -24.0% | 37.2% | 77.42% |
| 1 Yr | -48.6% | -48.6% | 51.7% | 100.00% |
| 3 Yr | -61.2%* | -61.2% | 17.2% | 100.00% |
| 5 Yr | N/A* | -8.1% | 19.9% | N/A |
| 10 Yr | N/A* | -2.3% | 12.0% | N/A |
* Annualized
Total Return Ranking - Calendar
| Period | POTX Return | Category Return Low | Category Return High | Rank in Category (%) |
|---|---|---|---|---|
| 2023 | -44.4% | -44.4% | 39.0% | 100.00% |
| 2022 | -67.3% | -72.7% | 8.2% | 90.32% |
| 2021 | -39.3% | -39.3% | 28.3% | 100.00% |
| 2020 | -30.6% | -30.6% | 233.9% | 100.00% |
| 2019 | N/A | 0.4% | 66.5% | N/A |
POTX - Holdings
Concentration Analysis
| POTX | Category Low | Category High | POTX % Rank | |
|---|---|---|---|---|
| Net Assets | 35.2 M | 3.44 M | 31.2 B | 83.33% |
| Number of Holdings | 20 | 20 | 389 | 100.00% |
| Net Assets in Top 10 | 23.4 M | 2.15 M | 5.86 B | 83.33% |
| Weighting of Top 10 | 83.51% | 17.1% | 91.3% | 8.33% |
Top 10 Holdings
- INNOVATIVE INDUSTRIAL PROPER REIT 17.47%
- TILRAY BRANDS INC COMMON STOCK 16.25%
- SNDL INC COMMON STOCK 15.42%
- ORGANIGRAM HOLDINGS INC COMMON STOCK 5.49%
- BYND CANNASOFT ENTERPRISES COMMON STOCK 5.24%
- INTERCURE LTD COMMON STOCK 5.13%
- CRONOS GROUP INC COMMON STOCK 5.05%
- AFC GAMMA INC REIT 4.69%
- AURORA CANNABIS INC COMMON STOCK 4.42%
- CANOPY GROWTH CORP COMMON STOCK 4.34%
Asset Allocation
| Weighting | Return Low | Return High | POTX % Rank | |
|---|---|---|---|---|
| Stocks | 98.35% | 0.00% | 99.96% | 50.00% |
| Other | 9.88% | -12.22% | 91.95% | 13.89% |
| Preferred Stocks | 0.00% | 0.00% | 41.72% | 94.44% |
| Convertible Bonds | 0.00% | 0.00% | 3.05% | 91.43% |
| Cash | 0.00% | 0.00% | 93.41% | 100.00% |
| Bonds | 0.00% | 0.00% | 94.79% | 91.67% |
Stock Sector Breakdown
| Weighting | Return Low | Return High | POTX % Rank | |
|---|---|---|---|---|
| Healthcare | 90.29% | 0.00% | 90.29% | 3.70% |
| Real Estate | 9.49% | 0.00% | 16.54% | 7.41% |
| Industrials | 0.22% | 0.00% | 90.47% | 92.59% |
| Utilities | 0.00% | 0.00% | 85.14% | 88.89% |
| Technology | 0.00% | 0.00% | 72.56% | 100.00% |
| Financial Services | 0.00% | 0.00% | 95.51% | 88.89% |
| Energy | 0.00% | 0.00% | 32.10% | 88.89% |
| Communication Services | 0.00% | 0.00% | 16.38% | 92.59% |
| Consumer Defense | 0.00% | 0.00% | 50.44% | 96.30% |
| Consumer Cyclical | 0.00% | 0.00% | 34.19% | 100.00% |
| Basic Materials | 0.00% | 0.00% | 17.92% | 100.00% |
Stock Geographic Breakdown
| Weighting | Return Low | Return High | POTX % Rank | |
|---|---|---|---|---|
| US | 82.68% | 0.00% | 99.90% | 16.67% |
| Non US | 15.67% | 0.00% | 83.45% | 52.78% |
POTX - Expenses
Operational Fees
| POTX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
|---|---|---|---|---|
| Expense Ratio | 0.51% | 0.41% | 5.61% | 91.67% |
| Management Fee | 0.50% | 0.25% | 1.90% | 41.67% |
| 12b-1 Fee | N/A | 0.00% | 1.00% | N/A |
| Administrative Fee | N/A | 0.03% | 0.19% | N/A |
Sales Fees
| POTX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
|---|---|---|---|---|
| Front Load | N/A | 4.25% | 5.75% | N/A |
| Deferred Load | N/A | 1.00% | 1.00% | N/A |
Trading Fees
| POTX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
|---|---|---|---|---|
| Max Redemption Fee | N/A | 2.00% | 2.00% | N/A |
Related Fees
Turnover provides investors a proxy for the trading fees incurred by mutual fund managers who frequently adjust position allocations. Higher turnover means higher trading fees.
| POTX Fees (% of AUM) | Category Return Low | Category Return High | Rank in Category (%) | |
|---|---|---|---|---|
| Turnover | N/A | 0.00% | 124.00% | N/A |
POTX - Distributions
Dividend Yield Analysis
| POTX | Category Low | Category High | POTX % Rank | |
|---|---|---|---|---|
| Dividend Yield | 6.42% | 0.00% | 12.81% | 5.56% |
Dividend Distribution Analysis
| POTX | Category Low | Category High | Category Mod | |
|---|---|---|---|---|
| Dividend Distribution Frequency | SemiAnnual | Annual | Quarterly | Annual |
Net Income Ratio Analysis
| POTX | Category Low | Category High | POTX % Rank | |
|---|---|---|---|---|
| Net Income Ratio | 1.76% | -2.66% | 5.19% | 22.22% |
Capital Gain Distribution Analysis
| POTX | Category Low | Category High | Capital Mode | |
|---|---|---|---|---|
| Capital Gain Distribution Frequency | Annually | Annually | Annually | Annually |
Distributions History
| Date | Amount | Type |
|---|---|---|
| Jan 08, 2024 | $0.166 | OrdinaryDividend |
| Jul 10, 2023 | $0.206 | OrdinaryDividend |
| Jan 09, 2023 | $0.072 | OrdinaryDividend |
| Jul 08, 2022 | $0.323 | OrdinaryDividend |
| Jan 07, 2022 | $0.915 | OrdinaryDividend |
| Jul 08, 2021 | $0.097 | OrdinaryDividend |
| Jan 08, 2021 | $0.145 | OrdinaryDividend |
| Jul 08, 2020 | $0.396 | OrdinaryDividend |
| Jan 08, 2020 | $0.215 | OrdinaryDividend |
POTX - Fund Manager Analysis
Managers
Nam To
Start Date
Tenure
Tenure Rank
Sep 17, 2019
2.7
2.7%
Nam To, CFA, joined Global X Management Company LLC in July 2017 as a Portfolio Management Analyst. Mr. To has been a Portfolio Manager of the Fund since March 1, 2018. Previously, Mr. To was a Global Economics Research Analyst at Bunge Limited from 2014 through 2017 and an Advisory and Investment Analyst at Horizon Capital Group from June 2013 through August 2013. Mr. To received his Bachelor of Arts in Philosophy and Economics from Cornell University in 2014.
Wayne Xie
Start Date
Tenure
Tenure Rank
Sep 17, 2019
2.7
2.7%
Wayne Xie joined the Global X Management Company LLC in July 2018 as a Portfolio Management Associate. Previously, Mr. Xie was an Analyst at VanEck Associates on the Equity ETF Investment Management team from 2010 to 2018 and a Portfolio Administrator at VanEck Associates from 2007 to 2010. Mr. Xie received his BS in Business Administration from State University of New York at Buffalo.
Kimberly Chan
Start Date
Tenure
Tenure Rank
Sep 17, 2019
2.7
2.7%
Kimberly Chan is a Portfolio Management Associate. Previously, Ms. Chan was a US Associate Trader at Credit Agricole from 2016 to 2018, and an Investment Analyst at MetLife Investments from 2015 to 2016. Ms. Chan received her Bachelor of Science from New York University in 2015.
Vanessa Yang
Start Date
Tenure
Tenure Rank
Dec 31, 2020
1.41
1.4%
Vanessa Yang, Portfolio Management Associate, joined Global X Management Company LLC in 2016 as a Portfolio Administrator. She was appointed to the portfolio management team in June 2019. Previously, Ms. Yang was a Portfolio Administrator at VanEck Associates from 2011 to 2014. Ms. Yang received her MS in Financial Engineering from Drucker School of Management in 2010 and her BS in Economics from Guangdong University of Foreign Studies in 2008.
Sandy Lu
Start Date
Tenure
Tenure Rank
Apr 01, 2022
0.16
0.2%
Sandy Lu, CFA, Portfolio Manager, joined the Adviser in September 2021. Previously, Mr. Lu worked at PGIM Fixed Income from 2014 to 2021, where he led the portfolio analyst team covering Emerging Markets Debt. He began his career in 2010 as an Investment Analyst at Lincoln Financial Group. Mr. Lu graduated with a B.S. in Economics from the Wharton School of the University of Pennsylvania. He earned his CFA designation in September 2015, and holds the Series 3 license.
William Helm
Start Date
Tenure
Tenure Rank
Apr 01, 2022
0.16
0.2%
William Helm, CFA, Portfolio Manager, joined the Adviser in September 2021. Previously, Mr. Helm spent 14 years at Vanguard where he most recently served as an Equity Portfolio Manager and Trader. Previously, he held roles in Portfolio Review, Corporate Strategy and Corporate Finance. Mr. Helm received his BBA in Economics from Belmont University in 2007 and his MBA from Columbia Business School in 2020.
Tenure Analysis
| Category Low | Category High | Category Average | Category Mode |
|---|---|---|---|
| 0.75 | 23.1 | 8.85 | 1.25 |