Why This Big ETF Is Not the Way to Ride the Cannabis Stock Rally

  • Launched in late 2017, ETFMG Alternative Harvest ETF (NYSE ARCA: MJ) seems to offer investors a lot: good liquidity and exposure to 36 stocks, with an annual management fee of 0.75%, which is more than offset by its security lending income.
  • , we don’t include any of these currently in our model portfolios, as we find much better value in other parts of the market, including smaller LPs, who have controlled their costs much better and have executed with sharper focus, as well as retailers in Canada.
  • We note that the ETF continues to hold several securities that have no real exposure to the cannabis sector, like Corbus Pharma, Arena Pharma and Swedish Match among the top holdings, as well as British American Tobacco, Imperial Brands, Japan Tobacco, Philip Morris, Schweitzer-Mauduit, Turning Point Brands, Universal Crop, Vector Group and Zynerba.
  • Gain immediate access to real-time and in-depth information and market intelligence about the publicly traded cannabis sector, including daily videos, weekly chats, model portfolios, a community forum and much more.
  • In addition to the comprehensive Global Cannabis Stock Index, we offer a family of indices to track Canadian licensed producers as well as the American Cannabis Operator Index.

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