All about the LCG Cannabis index

Do you want a diversified way to trade the booming Cannabis industry, without having to pick individual shares?

LCG is offering one of the most innovative ways to trade the Cannabis industry through its pioneering Cannabis index. This index automatically adjusts to include the top 20 companies in the Marijuana business.

“The goal of the index is to position traders to capture the huge growth opportunity of Cannabis, while staying diversified to reduced individual-company risk.” LCG’s Jasper Lawler.


Here we answer 3 important FAQs about the index, including a description of the shares included within it.

1. How are the shares selected for the index? 

The LCG Cannabis Index is designed to measure the market performance of companies with more than 50% revenue exposure to the cannabis industry and traded at global, liquid stock exchanges.

a) The LCG index is geared towards pure-Cannabis companies. To elaborate, some traditional companies, particularly in the food & beverage sector have begun to produce cannabis products to capitalise on this fast-growing new market. For instance, Pepsi is introducing hemp-infused drinks. For these companies, Cannabis is still a very small part of their revenue stream so they would not be included in this index.

b) The LCG index will only capture the Cannabis industry’s biggest companies. It’s worth understanding that there are hundreds of Cannabis penny stocks, which while offering big potential growth are also extremely risky because of the high risk that that these smaller companies fail. Penny stocks typically trade OTC and can be very illiquid, making it harder to close a trade near the current market price. LCG strives to offer only the most liquid assets for fast, efficient and low-cost trading.

2. How is the index constructed?

The index is calculated and disseminated on a gross total return basis with USD as its base currency. The largest 20 stocks from the resulting universe are selected. The weighting is done on the basis of market capitalization, capping the largest positions to 15% to reduce issuer concentration.

3. Which shares are in the index?

The following table shows the shares included in the index (updated 4/9/2019).

Constituents

Symbol

Canopy Growth Corporation

WEED

Aurora Cannabis Inc.

ACB

Tilray, Inc.

TLRY

GW Pharmaceuticals PLC Sponsored ADR

GWPH

Cronos Group Inc

CRON

Aphria Inc

APHA

HEXO Corp.

HEXO

Green Organic Dutchman Holdings Ltd.

TGOD

CannTrust Holdings, Inc.

TRST

Innovative Industrial Properties Inc

IIPR

OrganiGram Holdings Inc

OGI

Corbus Pharmaceuticals Holdings Inc

CRBP

Auxly Cannabis Group Inc.

XLY

Emerald Health Therapeutics, Inc.

EMH

Aleafia Health, Inc.

ALEF

Zynerba Pharmaceuticals Inc

ZYNE

Medipharm Labs Corp

LABS

PharmaCielo Ltd.

PCLO

Zenabis Global Inc.

ZENA

Khiron Life Sciences Corp

KHRN

 

Learn more about the component shares of the index below…

 

Canopy Growth (WEED)

Canopy Growth Corp. is the world's largest publicly-traded Cannabis company, with the catchy ticker WEED. Tweed, a brand of marijuana promoted by rapper Snoop Dogg, is one of the most popular. 

Aurora Cannabis (ACB)

Aurora supply dried cannabis, cannabis oil, and softgels as part of their focus on medical cannabis. Aurora owns several subsidiaries, including Anandia Laboratories, CanniMed, and CanvasRx. 

Tilray (TRLY)

Tilray specialises the global supply of GMP-certified medical cannabis. It is also involved in the  further the study of cannabinoids through  partnerships with hospitals and universities. 

GW Pharmaceuticals (GWPH)

GW Pharmaceuticals was founded in 1998 and produced the world’s first cannabinoid-based medication Sativex, as well as Epidiolex an FDA-approved CBD medication.

Cronos Group (CRON)

Altria, the maker of Marlboro cigarettes has a financial stake in Cronos, which owns well known Cannabis brands Peace Naturals and Original BC.

Aphria Inc (APHA)

Aphria grows and produce a range of medical Cannabis products from oils to capsules to oral solutions to cannabinoid vaporizers.

HEXO Corp (HEXO)

HEXO owns the Hydropothecary medical brand but its main business is the production and sale of smoke-free traditional cannabis products, which include pre-rolled joints.

Green Organic Dutchman (TGOD)

The ‘Green’ in the Green Organic Dutchman name is a nod to the entirely organic cannabis production process which is free from synthetic pesticides or fertilisers. 

CannTrust Holdings (TRST)

CannTrust is production company with one facility near Niagara Falls, which cultivates cannabis, processes extracts and arranges distribution of capsules, oils and dried flower.

Innovative Industrial Properties (IIPR)

Innovative is a trust company for Cannabis-related real estate investment, which is listed on the New York Stock Exchange.

OrganiGram Holdings (OGI)

Supplies pharmaceutical-grade medical cannabis products in Canada with both CBD and THC-focused ranges for different patient requirements.

Corbus Pharmaceuticals Holdings (CRBP)

Corbus is a biotech company trialling novel therapeutic treatments using the endocannabinoid system and the agitation of CB2 receptors aimed at inflammatory and fibrotic conditions.

Auxly Cannabis Group (XLY)

Auxly is a production as well as solutions business which has partnerships across the cannabis sector including the Kolab Project and Robinsons Cannabis.  

Emerald Health Therapeutics (EMH)

Emerald serves the Canadian market with Dried cannabis, pre-rolled marijuana, and cannabis oil ranges with a separate unit dedicated to scientific R&D.

Aleafia Health (ALEF)

Aleafia is a chain of medical cannabis dispensaries which also operate their own marijuana cultivation facilities.

Zynerba Pharmaceuticals (ZYNE)

Zynerba is a biotech company, which develops transdermal canninoid therepies for the treatment of rare diseases including fragile X syndrome, epilepsy and tourettes.

Medipharm Labs (LABS)

Medipharm is a Cannabis company with laboratories in Australia as well as Canada that produce cannabis oil that meets cGMP and ISO standards.

PharmaCielo (PCLO)

PharmaCielio, as the name would suggest is a pharmaceutical company that focuses on supplying all-natural medicinal-grade cannabis oil extracts and related products.

Zenabis Global (ZENA)
Zenabis is primarily involved in cultivation and sale of marijuana with brands including Zenabis and Namaste, but is also engaged in consumer education and cannabis activism.

Khiron Life Sciences (KHRN)

Khiron Life Sciences uses several subsidiaries to develop and commercialise medical-grade cannabis with services in parts of Latin America, as well as Canada.