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Top 3 ETFs Holding Shares of Cara Therapeutics

October 16, 2017

 

When it comes to NASDAQ-listed companies operating in the marijuana sector, many investors think of the pharmaceutical pioneer, Cara Therapeutics, Inc. (NASDAQ:CARA). With the recent announcement of successful completion of its End-of-Phase 2 Meeting with the U.S. Food and Drug Administration, we figured it would be a great time to fill in readers on the ETFs that offer exposure to the up-and-coming biotech company.  

 

When it comes to ETFs exposed to the cannabis space, many think of the Horizons Marijuana Life Sciences Index ETF (TSX:HMMJ) (OTC:HMLSF). Investors like the ETF given its basket-style approach, ease of access, and low fees relative to mutual funds like the American Growth Fund Series II E (MUTF:AMREX). Unfortunately for investors looking to gain exposure to Cara Therapeutics, the Horizons Marijuana Life Sciences ETF doesn't hold any in its portfolio! 

 

The rise in thematic ETFs have given birth to funds with a wide variety of focuses. For instance, the PureFunds ISE Cyber Security ETF (NYSE:HACK) is focused on the companies preventing and fighting cyber-attacks. If an investor were looking for ETFs with exposure to Cara Therapeutics, there are a few different funds worth a second look.

 

Since these funds all have other holdings in their portfolio besides CARA, it provides investors a bit of diversification which can help dampen volatility and more.

 

Here's 3 ETFs with significant portfolio exposure to Cara Therapeutics:

 

SPDR S&P Biotech ETF (NYSE:XBI)

 

 

As of recent data, the SPDR S&P Biotech ETF has a 0.91% exposure to CARA.

 

The SPDR S&P Biotech ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P Biotechnology Select Industry Index. 

 

With an expense ratio of  0.35%, this fund is less expensive to own than the iShares Microcap ETF (NYSE:IWC), which also holds a position in Cara Therapeutics. 

 

Virtus LifeSci Biotech Clinical Trials ETF (NASDAQ:BBC)

 

 

Cara Therapeutics currently accounts for 0.79% of the Virtus LifeSci Biotech Clinical Trials ETF.

 

Holding more up-and-coming pharmaceutical companies than that of the SPDR S&P Biotech ETF detailed above, you'll also see clinical trial stage companies like Arena Pharmaceuticals Inc. (NASDAQ:ARNA), which has a CB2 agonist drug in its pipeline to interact with the body's endocannabinoid system. 

 

According to the fund's website, "The Fund invests in clinical trials stage biotechnology companies. Clinical Trials stage companies are typically younger, smaller companies which do not have a drug approved, but instead focus on testing their experimental drug candidates in human clinical trials. Successful companies prudently manage their balance sheets through financings and partnerships in order to develop their potential blockbuster drugs."

 

Principal Healthcare Innovators Index ETF (NASDAQ:BTEC)

 

 

As of recent data, Cara Therapeutics accounts for just 0.42% of the Principal Healthcare Innovators Index ETF.

 

While this ETF is similar to the Virtus LifeSci Biotech Clinical Trials ETF in that it holds some of the up-and-coming pharmaceutical and biotechnology companies, its portfolio differs in many ways. 

 

As the name suggests, the fund "seeks to provide investment results that closely correspond, before expenses, to the performance of the Nasdaq Healthcare Innovators Index." The index "is designed to provide exposure to equity securities (including growth and value stock) of small and medium capitalization U.S. healthcare companies."

Conclusion

 

Be sure to subscribe to one or more of our free newsletters so you never miss a cannabis investment update. Also, don't forget to connect with The Daily Marijuana Observer on Facebook, Twitter, StockTwits, and Instagram

 

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Disclaimer: Except for the historical information and data presented herein, matters discussed in articles on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future performance or achievements expressed or implied by such coverage. Smoke Show Ventures, Inc., which owns The Daily Marijuana Observer, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. Smoke Show Ventures, Inc., which owns The Daily Marijuana Observer, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. Before making specific investment decisions, readers should seek their own professional advice and that of their own professional financial adviser. Smoke Show Ventures, Inc. or its affiliates, which owns The Daily Marijuana Observer, may be compensated for its services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.dailymarijuanaobserver.com/legal-disclaimer/.