Marijuana ETF begins trading on US exchange

Marijuana investors have a new fund to watch as the new year approaches.

ETFMG Alternative Harvest ETF – a cannabis-focused exchange-traded fund – made its debut on NYSE Arca this week with 31 holdings.

NYSE Arca investors trade both stocks and options. An ETF owns and tracks certain assets and, unlike a mutual fund, can be traded like a regular stock.

ETFMG Alternative Harvest ETF – whose ticker symbol is MJX – was created by New Jersey-based ETF Managers Group, which filed plans with the U.S. Securities and Exchange Commission in February.

The fund’s underlying index is the Prime Alternative Harvest Index, which follows companies that might benefit from the growing mainstream acceptance of marijuana.

The Alternative Harvest ETF is believed to be one of the first of its kind aimed at U.S. investors.

A Canadian marijuana-centric ETF, Horizons Medical Marijuana Life Sciences, began trading on the Toronto Stock Exchange in April.

Alternative Harvest ETF’s holdings are largely focused on the consumer staples and health-care sector in the marijuana industry.

Its main holdings are Canadian cannabis companies, including Cronos Group (MJN), a medical marijuana supplier; CannTrust Holdings (TRST), which also deals in the MMJ sector, and Canopy Growth Corp. (WEED), a marijuana production and distribution company.

Another of the fund’s significant holdings is GW Pharmaceuticals of Cambridge, United Kingdom.

5 comments on “Marijuana ETF begins trading on US exchange
  1. Sharon Johnson on

    How and when can we as American citizens invest in US Marijuana stocks? Do we have to be a citizen of the state we invest in? Please give us a detailed step by step process for investing in US Marijuana Stocks, as well as, which Marijuana Stocks are the best top US Marijuana stocks to invest in.

    I have also heard that American investors cannot invest in American Marijuana Stocks because it is illegal on the Federal level. Is this true?

    Any help would be most appreciated! Thanks!

    Reply
  2. Manny Johnson on

    Happy New Year to ALL! I have been involved in this industry since 2011 and have financial interests in several cannabis-related companies in several states. If you are a “trader,” you know to invest only what you can afford to lose and never invest more than what would keep you overly anxious. Emotions make terrible partners in investments. Look at the financial statements of the companies you are interested in and look for the late filings, insider selling, unmet financial projections, any flag that shows you they are less than honest. Also, it is very important to keep this next fact at the forefront of your decision-making; Any company that touches the cannabis in any way pays a U.S. Federal incomes tax called “IRC 280E. This is one average 77% of Gross Profit and severely limits the number of deductions a company can take. Most of the financial proposals I read and tax filings do not mention an appropriation for this HUGE tax. How do you make a profit at 77% taxes besides the state taxes? You really don’t. Suggestion. Look for companies that supply goods and services to the Cannabis Industry but do not touch the cannabis. These companies will be the real winners. Best of luck in the New Year. I believe but do not know when this excessive tax will be reduced but it is not in the federal governments best interest as they love the taxes. But, it does create a serious stimulus to the illegible markets!!

    Reply
    • Keepepeo Links on

      It is easy to be tempted with the hype. What you say is very important. As a newbie I appreciate this knowledge. Would you be kind to share some of the companies that you observe that supply goods and services to the industry but do not touch the Cannabis.

      Reply
  3. hartley mead on

    ETFMG Alternative Harvest ETF still list their top 10 holds as Latin American properties.
    Would have hoped to more cannabis firms.

    Reply

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