Saturday , 23 October 2021

Which Psychedelic Stock ETF Is Right for You?

AdvisorShares Psychedelics ETF (Ticker: PSIL) began trading on the NYSE Acra exchange on Thursday, September 16th as the first U.S.-listed actively managed ETF to deliver dedicated investment exposure to psychedelics and joins 2 other ETFs and 2 other tracking indices in that sector. All 5 are compared below to help you decide which ETF to invest in or which ETF or Index to follow for the latest activity in the fledgling sector. 

An original article by Lorimer Wilson, Managing Editor of munKNEE.com

1. The Advisor Shares Psychedelics ETF (PSIL)

The ETF:

  • consists of 14 constituents of which 11 (79%) are clinical stage companies, namely:  Cybin (CLXPF); Numinus (LKYSF); Seelos (SEEL); Field Trip (FTRPF); Mind Medicine (MNMD); Compass Pathways (CMPS); ATAI (ATAI); Small Pharma (DMTTF); Wesana (WSNAF); Core One (CLABF) and PsyBio (PSYBF). One company operates psychedelic therapy clinics, 1 does its research in functional (edible) mushrooms that are non-hallucinogenic and 1 constituent is included based on its intentions to enter the psychedelic research field.
  • trades on the NYSE Acra under the symbol PSIL with a CUSIP number 00768Y362 (Go here for more information on CUSIP),
  • has an expense ratio of 0.68%,
  • is actively managed and
  • has a market capitalization of $247M.

2. The Defiance Next Gen Altered Experience ETF (PSY)

The ETF:

  • consists of only 6 (30%) constituents doing research in that area, namely, Cybin (CLXPF); Numinus (LKYSF); Red Light (TRUFF); Seelos (SEEL); Field Trip (FTRPF) and Mind Medicine (MNMD), and the other 14 (70%) are concentrated on doing research using THC and/or CBD cannabis or ketamine. As such, while PSY constituents are involved in the medical psychedelics, medical cannabis, or ketamine industries in some way it is NOT a true psychedelic stocks ETF.
  • is listed on the NYSE Acra under the symbol PSY
  • has a CUSIP #26922B808 (Go here for more information on CUSIP),
  • has an expense ratio of 0.75%,
  • is passively managed and
  • has a market capitalization of $9.3B.

3. The Horizons Psychedelic Stock Index ETF (HPSYK)

The ETF:

  • consists of just 10 constituents of which 7 (70%) are clinical stage companies, namely:  Cybin (CLXPF); Numinus (LKYSF); Red Light (TRUFF); Seelos (SEEL); Field Trip (FTRPF), Mind Medicine (MNMD) and Compass Pathways (CMPS). One company operates psychedelic therapy clinics and 2 constituents are included based on their intentions to enter the psychedelic research field,
  • trades on the OTC exchange under the symbol HPSYF with a CUSIP number 44056U104 (Go here for more information on CUSIP),
  • has an expense ratio of 0.85%,
  • is passively managed and
  • has a market capitalization of $4.8M.

4. The Psychedelic Invest Index

The index:

  • consists of the 34 public psychedelic companies that have a portion of their business focused on psychedelics and which reflect their success (or lack of success) within the psychedelic industry. Some of the constituents trade on both American and Canadian exchanges and this duplication of companies accounts for the 59 constituents in the index and
  • is passively managed.
  • The Index does not trade but its daily performance can be followed here.

5. The munKNEE Pure-Play Psychedelic Compounds-Based Drug Stocks Index

The index:

  • consists of those psychedelic stocks that have market capitalizations in excess of $50M but less than $500M and only 8 of the 39 companies meet that criteria. Given the aforementioned, ATAI, Compass Pathways, Mind Medicine, and GH Resources are not included in the index given their very large market caps and high share prices which would have dominated the index’s performance.
  • consists of 8 companies that research the treatment of a variety of mental illnesses based on the use of 10 different psychedelic substances (read 10 Psychedelic Substances And The 36 Companies Researching Them), namely: Cybin (CLXPF); Field Trip (FTRPF); Seelos (SEEL); Mydecine (MYCOF); Small Pharma (DMTTF); Numinus (LKYSF); Red Light (CSE:TRIP; OTC:TRUFF) and Awakn Life (AWKNF).
  • is passively managed and
  • has a market capitalization of $1,192M
  • The Index does not trade but its performance can be tracked in the weekly articles I write on this sector for TalkMarkets.com (see here).

 

 

 

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