ETF Switches From Latin America To Marijuana

ETF Managers Group LLC  announced that MJX, the ETFMG Alternative Harvest ETF is live and available for trading on the NYSE Arca. This fund claims to be one of the first of its kind available to U.S. investors, the other marijuana ETF is the Horizons Marijuana Life Sciences and it is traded on the Toronto Exchange under the ticker HMMJ.

The ETF’s investment objective changed on December 26, 2017. Prior to December 26, 2017, the ETF was based upon the total return of an entirely different index, the Solactive Latin America Real Estate Index (previously the Tierra XP Latin America Real Estate ETF, ticker symbol: LARE).

Sam Masucci, Founder & CEO of ETF Managers Group said, “As an ETF issuer we are excited about opportunities for innovation, the chance to give investors exposure to new markets and doing our part to impact the continued evolution of the ETF industry by meeting the appetite of investor interest.”

MJX is designed to replicate the Prime Alternative Harvest Index, which tracks companies likely to benefit from the increasing global acceptance of various uses of the cannabis plant. The ETF has 31 holdings, has $5.7 million in assets and is rebalanced quarterly. As of September 30, the fund has returned a 20.23% increase in the NAV and an 18.15% increase in market value, yet these performance figures are based on the returns of the Latin America Real Estate Index, not the new marijuana holdings.

The top ten holdings are as follows:

CRONOS GROUP INC 6.22% MJN CN
CANOPY GROWTH CORP 5.89% WEED CN
GW PHARMACEUTICALS PLC 5.38% GWPH
MEDRELEAF CORP 5.22% LEAF CN
AURORA CANNABIS INC COM 5.03% ACB CN
CANNTRUST HOLDINGS INC 4.16% TRST CN
CANNIMED THERAPEUTICS INC 3.56% CMED CN
INSYS THERAPEUTICS INC NEW 3.31% INSY
HUABAO INTL HLDG 3.13% 336 HK
EMERALD HEALTH THERAPEUTICS IN COM 3.13% EMH CN

As of December 18, 2017, the Index had 30 constituents, 17 of which were foreign companies, and the three largest stocks and their weightings in the Index were Cronos Group, CannTrust Holdings, and Canopy Growth. Timothy J. Collins and Travis E. Trampe, each a Portfolio Manager of the Adviser, have been the Fund’s portfolio managers since 2017

Debra Borchardt

Debra Borchardt is the CEO, Co-Founder, and Editor-In-Chief of GMR. She has covered the cannabis industry for several years at Forbes, Seeking Alpha and TheStreet. Prior to becoming a financial journalist, Debra was a Vice President at Bear Stearns where she held a Series 7 and Registered Investment Advisor license. Debra has a Masters degree in Business Journalism from New York University.


6 comments

  • Randal Wall

    December 26, 2017 at 4:55 pm

    Currently invested in a number of marijuana industry stocks.
    Would appreciate any guidance you could offer.

    Reply

    • Robert Houston

      December 28, 2017 at 8:20 am

      Name some California stocks that I can research on TD trade

      Reply

      • Debra Borchardt

        January 3, 2018 at 9:35 am

        Maybe Friday Night Inc TGIFF? They just expanded into CA

        Reply

  • Randal Wall

    December 26, 2017 at 4:57 pm

    Currently invested in a number of marijuana industry stocks.
    Would appreciate any advice you would be willing to share.

    Reply

  • jim

    December 26, 2017 at 9:47 pm

    A more in depth research required here Debra. I followed this stock from south america. Tuesday morning the holdings were still not readily available and the ones posted here represent about a third of the %. I think they still have a bunch of real estate in South America…… no?
    I didn’t buy into this, the cost basis is vague ……….
    I expect this to drop and I am not way overly impressed with the holdings published.

    Reply

    • Debra Borchardt

      December 27, 2017 at 8:59 am

      Jim, There is a button under the top ten holdings where you can download the entire portfolio. It’s an odd mix of names including several tobacco companies. I agree with you. I think it is like these companies calling themselves bitcoin all of the sudden. Look at us, we’re a marijuana ETF, when it’s mostly tobacco stocks.

      Reply

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