SUMMIT, N.J.–(BUSINESS WIRE)–ETFMG®, leading thematic ETF issuer behind the first U.S. and world’s largest cannabis ETF, MJ®, the ETFMG Alternative Harvest ETF (NYSE Arca: MJ), reported the Fund’s 1,000th creation unit sold on October 12, 2020.
Topics being debated during the presidential election, such as the legalization of cannabis in several states, have led to increased investor demand evidenced by the increased daily trading volume. Shortly after the Vice-Presidential debate, MJ® saw trading volume increase three times1 its normal activity, 750,000 to nearly 2.4 million. MJ® currently has 50 million shares outstanding. Since the beginning of Q4 2020, the Fund is up 10.66%.
Across 2020, investors in MJ® received a cumulative $24,620,000 in quarterly dividend payouts. Q3 2020’s dividend projected an annualized yield of 6.42%,2 or 5.67% after deducting the Fund’s 0.75% expense ratio.
“MJ® hitting this milestone is in direct step with the continued and multi-faceted growth that the global cannabis industry has been experiencing,” said ETFMG Cannabis Research and Banking Expert, Jason Wilson. “With catalysts pushing the cannabis industry towards legalization, not only in the U.S. but globally, investors have become increasingly aware of the industry’s long-term growth potential, its growing importance in a post-COVID economy, and that MJ®’s global and multi-vertical investment strategy offers a differentiated approach to benefitting from the opportunities that lay ahead of us.”
“Since the launch of MJ®, we have seen the global cannabis industry evolve at a rapid pace, and it has now taken a positive turn on the back of another potential breakthrough legalization and decriminalization story,” said ETFMG CEO and Founder, Sam Masucci. “MJ® is an ETFMG first-to-market product, the leader by assets in this high growth industry, and the proxy for U.S. investors looking to invest in the global cannabis legalization movement.”
ETFMG focuses on effectively educating the investing public on the global cannabis ecosystem. Join ETFMG on Oct. 21 at 1pm EST/10am PST for “Cannabis Industry Outlook” featuring our cannabis industry expert, Jason Wilson. CFP credit available. Register today!
Performance (as of 9/30/20)
Fund Inception: 12/2/2015* Expense Ratio: 0.75%
Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.
Current performance of the Funds may be lower or higher than the performance quoted. Performance data current to the most recent month end is available on www.etfmg.com.
1 The cannabis industry is subject to considerable volatility and market activity and trading volume may fluctuate significantly in response to domestic and/or global economic and political factors.
2 This is the annual yield an investor would receive if the distribution and fund price (as of 6/15/20) remained the same for the year.
ETFMG is a provider of exchange-traded funds (ETFs), founded in 2014 with a vision of developing innovative thematic ETFs that provide investors unique exposure to new markets. Today, the ETFMG fund line up provides access to a diverse collection of global themes and is comprised of 75% first to market products. We turn portfolio management strategies into successful ETFs by partnering with market segment experts to bring long-term growth opportunities to investors. ETFMG funds are proof as to the power of the ETF wrapper and that thematic products can have a place in investors’ portfolios. To learn more about ETFMG and our portfolio of exchange traded funds please visit www.etfmg.com or follow us on LinkedIn, Twitter @ETFMG, Facebook and YouTube.
MJ is the largest cannabis ETF in the world and the first U.S. listed ETF to target the global cannabis industry directly. The Fund provides investors exposure to this constantly evolving sector which continues to see medicinal advancements, regulatory changes and M&A activity, highlighting the long-term.
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 is available on www.etfmg.com or may be obtained by calling 1-844-383- 6477. Read the prospectus carefully before investing. “The cannabis industry is subject to considerable volatility and the value of the companies in the sector may fluctuate significantly. The effects of the current pandemic on the economy remain unknown and investment markets may continue to be subject to significant volatility.”
*On December 26, 2017, the Fund’s investment objective and principal investment strategy were substantially revised; therefore, the performance and average annual total returns shown for periods prior to December 26, 2017 is likely to have differed had the Fund’s current investment strategy been in effect during those periods. The Fund’s prior investment objective sought to provide investment results that corresponded to the performance of the Solactive Latin America Real Estate Index, which tracked equities with primary listings in the Latin America region that derived most of their income from real estate and real estate services.
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. 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 legalizes 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 is distributed by ETFMG Financial LLC.