SUMMIT, N.J. — February 6, 2019 — /D.M.O. Newswire/ — Thematic ETF Issuer, ETF Managers Group (ETFMG), is excited to announce that the ETFMG Alternative Harvest ETF, better known as MJ, has officially joined the “billion dollar club”. After less than 14 months of trading on the NYSE the Fund achieved an impressive milestone by passing $1 billion in assets under management (AUM) on February 4, 2019.
MJ is now the largest cannabis ETF in the world and remains the first and only U.S. listed ETF to target the global cannabis industry directly. The Fund provides investors unrivaled exposure to this constantly evolving sector which continues to see medicinal advancements, regulatory changes and M&A activity, highlighting the long-term, outsized investment opportunity in the cannabis industry.
Despite elevated market volatility in 2018, MJ managed to retain and grow assets by 9,600% within its first year. After a nearly 9-million-dollar dividend distribution (equivalent to a 1.36% yield per share)* for the quarter, investors that held MJ throughout Q4 of 2018 were essentially paid to own the fund as the income exceeded the total expenses of owning it.
Sam Masucci, CEO and Founder of ETFMG said “When we launched MJ I talked about how at ETFMG we look to impact the ETF industry evolution with products that innovate and provide investors exposure to new markets, in fact 75% of our products are first to market. MJ is not only proof of our ability but also as to the power of the ETF wrapper and that thematic products can have a place in the average investor’s portfolio while generating significant returns.” Sam continued by saying “…the tremendous success seen in the global cannabis industry shows no signs of slowing down and we are proud to be a part of it with MJ.”
As of Tuesday, February 5, 2019 MJ is up 46.6% YTD due in large part to the performance of three of the largest holdings within the fund.
- Cronos Group (CRON has a positive 121% return this year, in large part due to the M&A news involving tobacco giant Altria (MO).
- Canopy Growth (CGC), one of the largest ($16b in mkt cap) innovators in the cannabis space, up 85%.
- Cannabis conglomerate Aurora Cannabis (ACB), with a return of 62% since 12/31/18.
In 2018, cannabis legalization and federal approval reached an all-time high with key changes in longstanding government policy.
- Canada became the 2nd country in the world to legalize recreational cannabis on a national level.
- Michigan became the 10th state to legalize recreational cannabis use.
- Utah and Missouri became the 31st and 32nd states to legalize marijuana for medical use.
- The FDA approved the 1st non-synthetic cannabis derived medicine, EPIDIOLEX, used to treat rare forms of childhood epilepsy.
- The DEA announced that cannabidiol (CBD) drugs with TCH content below 0.1% are now considered a Schedule 5 drug with approval by the FDA – the same as codeine cough syrup.
- The United States passes the 2018 Farm Bill, legalizing hemp and allowing growers to qualify for crop insurance and research grants.
“This milestone validates investor interest in this emerging industry as well as investor sentiment toward a decades-old drug policy. The medical and agricultural benefits of cannabis are becoming apparent, and the Prime Alternative Harvest index is a powerful benchmark for the industry’s ecosystem,” said Kris Monaco, Managing Partner of Level ETF Ventures, Index provider to the fund. “We are proud partners of ETF Manager’s Group and congratulate the team on this important achievement.”
MJ tracks the Prime Alternative Harvest Index, designed to measure the performance of companies within the cannabis ecosystem benefitting from global medicinal and recreational cannabis legalization initiatives.
For more information on MJ, please visit https://www.etfmj.com.
Carefully consider the Fund’s investment objectives, risk factors, charges, and expenses before investing. This and additional information can be found in the Fund’s prospectus, which may be obtained by calling 1-844-ETF-MGRS (1-844-383-6477), or by visiting https://www.etfmj.com. Read the prospectus carefully before investing.
Past performance does not guarantee future results.
* The Fund’s nearly 9-million-dollar distribution (equivalent to 1.36% distribution yield per share) exceeded the expenses investors paid to hold MJ throughout Q4 of 2018 . To own MJ throughout Q4 an investor paid .19%, the quarter end distribution payout was $8,989,600 or 1.36% based on the average daily net assets of MJ for the quarter. Distributions do not protect against a decrease in a Fund’s share value.
As of 2/4/18, the Fund held Cronos (19.32% weight), Canopy Growth (8.68% weight), and Aurora Cannabis (7.67% weight). For complete holdings information, please visit www.etfmj.com.
Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Narrowly focused investments typically exhibit higher volatility.
The possession and use of marijuana, even for medical purposes, is illegal under federal and certain states’ laws, which may negatively impact the value of the Fund’s investments. Use of marijuana is regulated by both the federal government and state governments, and state and federal laws regarding marijuana often conflict. Prospective investors should understand the possession and use of marijuana, even for medical purposes, is still illegal under federal law, and even in those states in which the use of marijuana has been legalized, its possession and use remains a violation of federal law. Federal law criminalizing the use of marijuana pre-empts state laws that legalize its use for medicinal and recreational purposes. Cannabis companies and pharmaceutical companies may never be able to legally produce and sell products in the United States or other national or local jurisdictions. The Fund does not invest in any U.S. or foreign security whose business activities are legal under state law but not legal under U.S. federal law.
The Fund is distributed by ETFMG Financial LLC, which is not affiliated with Level ETF Ventures. Sam Masucci is a registered rep of ETFMG Financial LLC.
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