ETFMG Alternative Harvest ETF (MJ)

[TREND1]

MJ Factset Analytics Insight

MJ is the first pot-focused ETF to trade in the U.S. The fund tracks an index of stocks across the globe that are engaged in the legal cultivation, production, marketing or distribution of cannabis products for either medical or nonmedical purposes. MJ also holds stocks of companies that trade or produce tobacco or tobacco products, or fertilizers, plant foods, pesticides or growing equipment for cannabis or tobacco. In addition, the fund can hold pharmaceutical companies that produce, market or distribute drug products that use cannabinoids. MJ can only hold companies that are engaged in legal activities and possess all necessary permits.

At the time of launch, the fund did not include companies growing or distributing marijuana in the U.S. due to its continuing prohibition at the federal level.

The index provider uses publicly available sources to identify companies that derive more than half their revenue from cannabis-related activities.

MJ includes roughly 30 stocks, reconstituted and rebalanced quarterly.

The expense ratio is on the high side for an index-based equity ETF.