MJ Profile
The ETFMG Alternative Harvest ETF is an exchange-traded fund that seeks to provide investors with exposure to the global cannabis, pharmaceutical, and tobacco industries. The fund tracks an index that measures the performance of exchange-listed common stocks of companies involved in the cannabis sector, including those that cultivate, produce, and distribute cannabis for medical or recreational use. Additionally, the index includes pharmaceutical companies that are engaged in the development of cannabinoid-based drugs, as well as firms that trade or produce tobacco products and related components. This broad sector focus positions the ETF to capture growth in industries undergoing significant regulatory and consumer-driven change.
The ETFMG Alternative Harvest ETF invests at least 80% of its total assets in the component securities of its underlying index, ensuring that it closely mirrors the index’s composition. This includes not only direct investments in the stocks of companies within the index but also American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs) based on those companies. This approach allows the fund to achieve a diversified global portfolio, giving investors exposure to both established markets and emerging opportunities within the cannabis and tobacco industries. The ETF’s international scope reflects the growing acceptance and legalization of cannabis across various jurisdictions, as well as the ongoing demand for tobacco and cannabinoid-based pharmaceuticals.
As a non-diversified fund, the ETFMG Alternative Harvest ETF concentrates its investments in a smaller number of issuers compared to diversified funds. This focused approach allows the ETF to take meaningful positions in key players within the cannabis, pharmaceutical, and tobacco sectors, which could potentially enhance returns if these industries continue to grow. However, this concentration also introduces higher risk, as the fund’s performance is more susceptible to the volatility and regulatory changes affecting its core sectors. Investors should be aware of the potential for significant fluctuations in the fund’s value due to the evolving legal landscape surrounding cannabis and the challenges facing the global tobacco industry.
Managed by ETF Managers Group, the ETFMG Alternative Harvest ETF is one of the first and largest funds to offer targeted exposure to the cannabis industry, alongside related pharmaceutical and tobacco companies. The fund is designed for investors seeking to capitalize on the rapid expansion of the global cannabis market and the potential for innovation in cannabinoid-based treatments. By investing in this ETF, investors gain access to a diversified portfolio that spans multiple industries poised for growth, while also benefiting from the expertise of a management team with deep knowledge of these dynamic sectors.
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