Marijuana ETFs are on this week’s worst ETFs list

Marijuana ETFs fall despite positive results from U.S Cannabis growers.

Marijuana ETFs weren’t that “high” last week as 7 Cannabis ETFs were in red territory.

Rize Medical Cannabis and Life Sciences ETF (BLUM) was the biggest loser in Europe with -10.9% of negative returns. The ETF was dragged down by its top 3 holdings (combined 46% exposure), Scotts Miracle-Gro (SMG), GrowGeneration Corp (GRWG) and Amyris Inc (AMRS) that respectively fell by -3.9%, -27.8% and -13.8% over the week.

GrowGeneration Corp huge decline came after the specialty hydroponic and organic garden retailer reported its second-quarter results. The company, despite beating prior year period results and current Wall street estimates, failed to show strong growth in its full year outlook. The concerns of a slowdown were enough to trigger a pullback in a share trading at 88 times its forward earnings.

In America, the Purpose Marijuana Opportunities Fund shed -5.5% of its share price as its top 3 holdings Ayr Wellness Inc (AYRWF), Columbia Care Inc (CCHWF) and Cresco Labs Inc (CRLBF) dropped by -4.0%, -8.2% and -7.6% respectively.

Cresco Labs reported great Q2 earnings results with net income $2.7 million, well ahead of analyst estimates of $1.5 million. The share price drop can be explained by the fact that investors were just following the motto “Buy the rumors, sell the news”.

South Korean ETFs falter on economic woes

Korea Composite Stock Price Index or KOSPI, South Korea’s benchmark index fell by -2.7% last week as economic worries rattled investors’ confidence in the world’s 10th largest economy.

Concerns about weaker economic outlook in the country’s biggest trading partner China and fears about the Delta coronavirus variant weighed on markets.

Top tech giants led the fall as funds evacuated the world’s two largest memory chipmakers Samsung Electronics (005930) and SK Hynix Inc. (000660). Investors dumped a net $6.5 billion of these shares, including a record daily outflow last Thursday. The tech duet has shed over $55 billion in market capitalization since August 6.

South Korean Equity ETFs were dragged globally. In Europe, Lyxor MSCI Korea UCITS ETF (KOR) fell by -6.4% last week. The fund tracks the MSCI Korea 20/35 NTR Index – USD, with exposure to large and mid-cap equities.

In America, the world’s largest South Korean equities ETF (AuM $6.0bn), iShares MSCI South Korea ETF (EWY) lost -5.5% in the same period. EWY also invests in large and mid-cap Korean equities with high exposure to Samsung Electronics and SK Hynix, representing 27% of the portfolio.

Honorable mention: Silver ETFs

Silver meltdown continues as the dollar strength picks up. In Europe, the Invesco Physical Silver ETC was down -6.60% last week. The same fate was registered in America for the iShares Silver Trust, losing -6.34% during the same period.

Bottom 10 ETFs of the Week: Korea and Marijuana ETFs

Europe

• Rize Medical Cannabis and Life Sciences UCITS ETF: -10.90%
• Swisscanto Precious Metals - Physical Silver: -7.10%
• WisdomTree Natural Gas: -6.80%
• Invesco Physical Silver ETC: -6.60%
• Xtrackers IE Physical Silver ETC Securities: -6.60%
• iShares Physical Silver ETC: -6.60%
• GPF Physical Silver ETC: -6.60%
• WisdomTree Physical Silver ETC: -6.60%
• Lyxor MSCI Korea UCITS ETF: -6.40%
• HSBC MSCI Korea Capped USCITS ETF: -6.40%

Americas

• United States Natural Gas Fund: -6.74%
• Horizons Psychedelic Stock Index ETF: -6.67%
• iShares Silver Trust: -6.34%
• Purpose Silver Bullion Trust ETF: -6.30%
• Aberdeen Standard Physical Silver Shares ETF: -6.25%
• Horizons NYMEX Natural Gas ETF: -5.76%
• Emerge ARK Genomics & Biotech ETF: -5.58%
• Purpose Marijuana Opportunities Fund ETF: -5.49%
• ARK Genomic Revolution ETF: -5.46%
• iShares MSCI South Korea ETF: -5.45%

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