(Bloomberg Businessweek) -- In the past year, cannabis stocks outperformed gold, Bitcoin, and the broader market. As investors buy into the frenzy, the biggest pot companies are seeing their valuations soar. And the largest among them, as tracked by Bloomberg Intelligence’s Global Cannabis Competitive Peers Index, have price-to-sales ratios in the triple digits. Canopy Growth, which is valued at $11.4 billion, currently trades at a price-to-sales ratio of 132, and Aurora Cannabis, valued at $9.2 billion, trades at 106. GW Pharmaceuticals is at 231. For comparison, Apple and Amazon.com have p-s ratios of about 4.
The top three cannabis companies account for almost 30 percent of the market cap of the top 100 companies in the BI cannabis index.
As investor interest in cannabis has grown, the exchange-traded fund industry has responded with new products, including at least three so far this year.
Marijuana-focused ETFs
ETFMG Alternative Harvest (MJ) Inception: 12/3/15Return since inception*: 83.1%Management fee: 0.75%Tracks the performance of the Prime Alternative Harvest Index; includes U.S. exposureHorizons Marijuana Life Sciences Index (HMMJ)Inception: 4/5/17Return since inception: 157%Management fee: 0.75%Tracks the North American Medical Marijuana Index; larger market capsPurpose Marijuana Opportunities Fund (MJJ)Inception: 2/1/18Return since inception: 58.4%Management fee: 0.75%Actively managed fund investing primarily in Canadian companiesEvolve Marijuana (SEED)Inception: 2/12/18Return since inception: 21.8%Management fee: 0.75%Actively managed fund investing in both medical and recreational marijuanaHorizons Emerging Marijuana Growers Index (HMJR)Inception: 2/14/18Return since inception: -9.6%Management fee: 0.85%Focused on micro and small caps
To contact the authors of this story: Mark Glassman in New York at mglassman7@bloomberg.netSilvia Killingsworth in New York at skillingswo2@bloomberg.net
To contact the editor responsible for this story: James Ellis at jellis27@bloomberg.net
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