ETF Managers Group has completely renovated an old ETF and launched the first ETF to track companies that benefit from the increased acceptance of various uses of the cannabis plant.
As of December 26, the ETF Managers Group revamped the Tierra XP Latin America Real Estate ETF (NYSEArca: LARE) and turned it into the ETFMG Alternative Harvest ETF (NYSEArca: MJX), which comes with a 0.75% expense ratio.
The Alternative Harvest ETF will try to reflect the performance of the Prime Alternative Harvest Index, which is comprised of global companies engaged in the legal cultivation of cannabis, or the legal production, marketing or distribution of cannabis products for medical or non-medical purposes; engaged in the lawful creation, marketing or distribution of prescription drugs that utilize cannabinoids as an active ingredient; trade tobacco or produce tobacco products, such as cigarettes, cigars or electronic cigarettes; produce cigarette and cigar components, such as cigarette paper and filters; and engaged in the creation, production and distribution of fertilizers, plant foods, pesticides or growing equipment to be used in the cultivation of cannabis or tobacco, according to a prospectus sheet.
Related: A ‘New’ Marijuana ETF
While the underlying index may cover businesses that are legally engaged in activities related to cannabis, the benchmark does not include those that directly cultivate, produce or distribute marijuana or products derived from marijuana, unless such activities become legal under U.S. federal and state laws.
“As an ETF issuer we are excited about opportunities for innovation, the chance to give investors exposure to new markets and doing our part to impact the continued evolution of the ETF industry by meeting the appetite of investor interest,” Sam Masucci, Founder & CEO of ETF Managers Group, said in a note.
MJX country weights include Canada 41%, US 34%, UK 9%, Hong Kong 3%, Italy 3%, Denmark 3%, Japan 3% and Sweden 3%. Sector weights include health care 50%, consumer staples 31%, materials 9%, stocks 7% and industrials 3%.
Top component holdings include Chronos Group 5.8%, Canopy Growth 5.5%, CannTrust Holdings 5.3%, GW Pharmaceuticals 5.3% and MedReleaf 5.3%.
For more information on new fund products, visit our new ETFs category.