CNBS is an ETF investing in the fast-developing global cannabis industry. The Fund is managed by Tim Seymour, a recognized voice and experienced investor in the cannabis space.
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Audio Commentary by Tim Seymour (6/27/22)
Tim covers a full slate of topics in 3 key areas:
- Markets (companies, earnings, M&A activity, performance)
- Macro (state and federal legislative landscape)
- Portfolio dynamics (CNBS)
For current standardized performance, holdings, and expenses, please visit https://amplifyetfs.com/cnbs.
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than performance data quoted. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than original cost. Returns less than one year are not annualized.
The CNBS performance quotes in the audio update are market price as of 6/20/2022.
Click HERE for the prospectus. Read the prospectus carefully before investing.
Why Invest in Cannabis-Related Companies
Source: BDS Analytics, Arcview Market Research
Worldwide consumer spending on legal cannabis was $21.3 billion in 2020, with a forecasted compound annual growth rate (CAGR) of 17% through 2026. (BDS Analytics)
Growing Trend of Legalization
68% of Americans think cannabis should be legal (according to a Gallup poll - as of Nov 2020). Increased political momentum and public pressure to legalize its use for medical and recreational purposes, have led to new and innovative applications in product-related and service areas, driving global technological and scientific breakthroughs.
There are over 100 naturally occurring compounds - found in the cannabis plant known as cannabinoids. Cannabis is being researched to treat nausea for cancer patients, and treating seizures. Cannabis is also being used as a treatment for, inflammation, anxiety, sleep disorders, pain management, and PTSD.
Glossary of Terms
M&A: mergers & acquisitions
Beta: Measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole.
LPs: limited partners
SG&A: selling, general and administrative expenses
EV: enterprise value
EBITDA: earnings before interest, taxes, depreciation, and amortization
HSR: Hart-Scott-Rodino Antitrust Improvements Act of 1976
DOJ: Department of Justice
CDU: Germany's Christian Democratic Union party (political party)
SPAC: Special Purpose Acquisition Company
MSOs: Multi-State Operators
Long: Having a position in a security by way of investing
Short Selling: Investment or trading strategy that speculates on the decline in a stock or other securities price
FinCEN: Financial Crimes Enforcement Network, a bureau of the U.S. Dept. of the Treasury
BPs: A basis point (BP) is a unit that is equal to 1/100th of 1%
CSA: Controlled Substance Act
CPG: Consumer packaged goods
CRM: Customer relationship management
ERP: Enterprise resource planning
CAGR: Compound annual growth rate
Click here for CNBS holdings.
Past performance does not guarantee future results. The performance of individual companies in the cannabis sector is provided for informational purposes only and does not represent the Fund.
The outbreak of COVID-19 has negatively affected the worldwide economy, individual countries, individual companies, and the market in general. The future impact of COVID-19 is currently unknown, and it may exacerbate other risks that apply to the Fund. There is no guarantee that any projection, forecast or opinion will be realized. The views expressed may change at any time after the date of this publication.
Carefully consider the Fund’s investment objectives, risk factors, charges, and expenses before investing. This and additional information can be found in Amplify Funds statutory and summary prospectus, which may be obtained above or by calling 855-267-3837, or by visiting AmplifyETFs.com. Read the prospectus carefully before investing.
Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV, and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.
The Fund is subject to management risk because it is actively managed. Companies involved in the cannabis industry face competition, may have limited access to the services of banks, may have substantial burdens on company resources due to litigation, complaints or enforcement actions, and are heavily dependent on receiving necessary permits and authorizations to engage in medical cannabis research or to otherwise cultivate, possess or distribute cannabis. The possession and use of cannabis, even for medical purposes, is illegal under federal and certain states’ laws, which may negatively impact the value of the Fund’s investments. Securities issued by non-U.S. companies present risks beyond those of securities of U.S. issuers.
Many of the companies in which the Fund will invest are engaged in other lines of business unrelated to cannabis and these lines of business could adversely affect their operating results. Cannabis is a Schedule I controlled substance under the Controlled Substances Act (“CSA”), meaning that it has a high potential for abuse, has no currently “accepted medical use” in the U.S., lacks accepted safety for use under medical supervision, and may not be prescribed, marketed or sold in the U.S. Small and/or mid-capitalization companies may be more vulnerable to adverse general market or economic developments, and their securities may be less liquid and may experience greater price volatility than larger, more established companies as a result of several factors, including limited trading volumes, products or financial resources, management inexperience and less publicly available information. The Fund is non-diversified, which can cause greater share price fluctuation.
Amplify Investments LLC is the Investment Adviser to the Fund, and Penserra Capital Management, LLC serves as the Investment Sub-Adviser.
Amplify ETFs are distributed by Foreside Fund Services, LLC.