MJUS Profile
ETFMG U.S. Alternative Harvest ETF is designed to invest in companies primarily involved in the cannabis industry. Under normal market conditions, the fund commits at least 80% of its net assets, including any borrowings, to securities of companies that derive at least 50% of their net revenue from the cannabis business in the United States. This investment strategy targets firms operating across various sectors of the cannabis industry, including cultivation, production, distribution, and ancillary services, providing investors with targeted exposure to this emerging market.
In addition to direct investments in cannabis-related securities, the fund may also invest in derivatives that have economic characteristics similar to these securities. This approach enhances the fund's ability to gain exposure to the cannabis sector and manage investment risk. By focusing on derivatives, the fund can potentially amplify returns or hedge against adverse movements in the market, depending on its investment strategy.
The fund places a significant emphasis on the pharmaceuticals, biotechnology, and life sciences industry group, concentrating at least 25% of its investments within this sector. This concentration reflects a strategic focus on companies that are engaged in developing cannabis-based pharmaceuticals and medical products, as well as innovations in biotechnology related to cannabis. This sector focus aims to capitalize on the potential growth and commercialization of medical cannabis and related therapeutic applications.
ETFMG U.S. Alternative Harvest ETF operates as a non-diversified fund, meaning it may concentrate its investments in a limited number of securities or sectors, increasing both potential returns and risks. The funds strategy is tailored for investors seeking targeted exposure to the cannabis industry, particularly those interested in the intersection of cannabis and life sciences. By leveraging its sector focus and derivative investments, the fund aims to provide investors with a specialized avenue to participate in the growth and evolution of the cannabis market in the United States.
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