Many investors are likely to have purchased MJ as their primary cannabis holding due of its long history. True, MJ’s securities lending program has assisted in defraying costs. However, because of the fund’s lack of exposure to actual US cannabis businesses and its problematic tobacco stock allocation, it’s difficult to recommend it as a cannabis investment. Investing directly in the equities of US cannabis companies will likely be more rewarding (and profitable) for investors.
Is the MJ ETF a wise investment?
MJ may have historical significance as the first cannabis ETF, but that does not make it a successful investment. To begin with, I am skeptical of the large allocation to cigarette stocks. But, more crucially, I’m not sure MJ will be able to fully realize the cannabis industry’s development potential.
Here’s the problem. Almost all of the real cannabis operator stocks it owns are based in Canada. Tilray (TLRY), Canopy Growth (CGC), and Cronos (CRON) are all creating profit margins that are significantly lower than those of US companies like Trulieve (OTCQX:TCNNF) or Green Thumb Industries (OTCQX:GTBIF):
In what does the MJ ETF invest?
The first cannabis-focused ETF to trade in the United States is MJ. The fund invests in a global index of equities involved in the legal cultivation, manufacture, marketing, or distribution of cannabis products for medical or nonmedical purposes.
Is the MJ ETF managed actively?
Alternative Harvest ETF (ETFMG) (MJ) This ETF is highly liquid and traded on the NYSE. Tobacco stocks make up about 20% of MJ’s portfolio, which is managed passively.
What is the alternate harvest of marijuana?
The Prime Alternative Harvest Index, which is tracked by MJ, is aimed to assess the success of enterprises in the cannabis ecosystem that profit from global medicinal and recreational cannabis legalization activities.
- The first and largest ETF in the United States to focus on the worldwide cannabis market.
- Cannabis and THC-based medicines and treatments have a wide range of other applications, from epilepsy treatment to cancer treatment to non-opioid pain management.
- By 2025, the worldwide cannabis industry is predicted to increase at a rate of 23.9 percent, reaching $66.3 billion.
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How leveraged is the MJ ETF?
)— ETF Managers Group LLC (ETFMG), a leading thematic ETF issuer, today announced that the ETFMG 2x Daily Inverse Alternative Harvest ETF (NYSE Arca: MJIN) would begin trading on the New York Stock Exchange. MJIN is designed to achieve daily leveraged investment results that are two times the inverse (-2x) (or opposite) of the Prime Alternative Harvest Index, before fees and expenses, giving investors direct access to the global cannabis ecosystem and benefiting directly from widespread medicinal and recreational legalization initiatives.
What exactly is the THCX dividend?
NEW YORK, New York, December 27, 2019 — The Cannabis ETF (THCX), the first passively managed pure-play ETF for cannabis investment, has declared a $0.4176 per share dividend. The dividend will be paid on January 2, 2020, to stockholders who were on the books on December 31, 2019, at the close of business.
THCX, which is now traded on the NYSE Arca, follows the Innovation Labs Cannabis Index, a rules-based portfolio that rebalances regularly. The index is made up of 33 equities that are projected to gain from the global cannabis market’s growth, which is expected to reach $630 billion by 20401.
Innovation Shares creates cutting-edge portfolios based on hot and controversial investment themes. The AI-powered natural language processing system used to analyze sentiment around topics and relevant equities is the underlying innovation behind its strategy.
