Alternative Harvest (Ticker: MJ)
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This is a must own type of ETF to gain momentum in all of the money being made in the cannabis industry. Learn more about alternative Harvest ETF here https://etfmg.com/about-us/
New York Stock Exchange, the Alternative Harvest ETF (NYSEARCA:MJ) began trading on Dec. 26, 2017.
The fund tracks the Prime Alternative Harvest Index and has more than $1 billion in assets under management. However, MJ isn’t a pure cannabis play because it also holds some tobacco stocks.
All told the fund currently holds nearly 40 names and is rebalanced quarterly. Its top five holdings include GW Pharmaceuticals, Cronos Group, Tilray, Aurora Cannabis and Canopy Growth.
Some 49% of MJ’s stocks are based in Canada, with 32% in the United States, 12% in the United Kingdom and the rest from Sweden, Italy and Japan. Small- to mid-cap companies make up 68% of the ETF, while large-caps (more than $12 billion in assets under management) account for 17% and micro-caps (stocks worth less than $600 million) cover 12%.
The Cannabis ETF (Ticker YOLO)
A few things about this particular fund set it apart from its 3-year-old counterpart, the ETFMG Alternative Harvest ETF, ticker MJ. First, it’s actively managed, which means that it aims to outperform the broader cannabis space with the help of a professional money manager. Second, it’s bank-backed, which lends credibility.
on the New York Stock Exchange under the ticker symbol THCX.
THCX will track the Innovation Labs Cannabis Index and will be rebalanced and reconstituted monthly. The fund will initially hold some 35 cannabis stocks, each with a minimum $100 million market cap. The top five holdings at launch will include Tilray (TLRY) , Cronos Group (CRON) , Canopy Growth (CGC) , GW Pharmaceuticals (GWPH) and Aurora Cannabis (ACB) .
CNBC’s Jon Najarian is an adviser to the fund, while Cowen will serve as the custodial firm behind it.
The AdvisorShares Pure Cannabis ETF
This actively managed ETF invests in cannabis-related plays that get at least 50% of their net revenue from marijuana or hemp. It doesn’t track any underlying index, but focuses on mid- and small-cap companies (<$600 million market capitalization).
How the AdvisorShares Vice ETF Works
- Diversification stands among the most important attributes of an investment portfolio. While finding true negative or non-correlation among investments remains challenging, building a diversified portfolio during a normal market environment can allow an easier path. Recessions represent a natural and cyclical part of markets. Consumer spending slows significantly during recessionary environments: no new cars, less retail purchases and generally less of everything. However, even in the toughest economic environments, people still historically spend on their leisure, habits and vices. Alcohol and tobacco have been often viewed as potentially recession-resistant areas simply because individuals take pleasure in such related activities during both good times and bad times.
The investment thesis of the AdvisorShares Vice ETF (Ticker: ACT) believes that investing in select alcohol and tobacco companies will provide continued growth and long-term performance across all types of market environments. With evolving societal and regulatory landscapes, the upside potential of cannabis as a new investment avenue has emerged to complement the historically resilient characteristics of alcohol and tobacco. While cannabis represents a new investment frontier, proper caution and due diligence must be exercised surrounding its regulations and risks. ACT only invests in cannabis-related companies conducting federally legal business per the United States government.
At least 25% of the fund’s investments go to cannabis companies in the pharmaceutical, biotech and life-science spaces. The company says YOLO “is designed to fully invest for pure cannabis exposure under the guidance of a deeply experienced portfolio-management team navigating the emerging cannabis marketplace.”
There were some 30 stocks in the ETF as of last check. Some 77% of the firms are based in Canada, with about 22% in the United States. YOLO’s top-five holdings as of June 27 were Innovative Industrial Properties (IIPR) , Aphria (APHA) , OrganiGram Holdings (OGI) , CannTrust (CTST) and Hexo (HEXO) .
The AdvisorShares Vice ETF
AdvisorShares also runs the actively managed AdvisorShares Vice ETF (ACT) , which has $13 million in assets under management that it invests in not just cannabis stocks, but also in tobacco and alcohol companies.
In fact, only 26% of this ETF is in cannabis stocks. Another 25% is in alcohol plays, while 13% is in tobacco stocks. ACT also invests in alcohol and tobacco firms that have some cannabis exposure. The fund launched in 2017.
Evolve Actively Managed Marijuana ETF Ticker: SEED
The Evolve Actively Managed Marijuana ETF uses the symbol SEED on the Toronto Stock Exchange.
The investment objective of SEED is to seek to provide holders of Units with long-term capitalappreciation by actively investing in a diversified mix of equity securities of issuers that are involved in the marijuana industry.
Parent company The Evolve Funds Group describes SEED as offering a “diversified mix of equity securities of issuers involved in the marijuana industry.” The ETF currently owns stocks of some 30 companies, including top five holdings Aurora Cannabis, Canopy Growth, OrganiGram Holdings, Hexo and Charlotte’s Web Holdings (CWBHF) .
SEED listed in 2018 and is priced in Canadian dollars. Some 80% of the companies held are Canadian, while 16% are U.S. based, 2% are in Britain and the remaining 2% are headquartered in other countries.