NEW JERSEY: ETF Managers Group (ETFMG) announced 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 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.