MJX country weights include Canada 41%, US 34%, UK 9%, Hong Kong 3%, Italy 3%, Denmark 3%, Japan 3% and Sweden 3%. Top component holdings include Cronos Group 8.3%, Aurora Cannabis 7.2%, Medreleaf 6.9%, Canopy Growth 6.5% and Canntrust Holdings 5.0%.
Potential investors should be aware that While MJX’s 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.
Recreational pot is legal in eight states plus Washington D.C. but still remains illegal on the federal level, which has created an uncertain situation that has prevented many pot stocks from listing in the U.S. However, Canada plans to legalize the drug nationally by July, contributing to Canada’s large weight in the ETF’s portfolio.
“California legalizing recreational marijuana use has definitely put the spotlight on the sector,” Steve Hawkins, president and co-CEO of Horizons ETFs Management Canada Inc., which also offers the Canada-listed Horizons Medical Marijuana Life Sciences ETF, told Bloomberg. “It has certainly boosted the long-term prospects of cannabis stocks, as well as HMMJ, and we are optimistic this upward trajectory will continue.”
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