SUMMIT, N.J.–(BUSINESS WIRE)–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%
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
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