As August winds down and the frenzy of the markets turn into a causal ease into Labor Day Weekend, one exchange-traded fund is poised to be the top performer once the smoke clears–the ETFMG Alternative Harvest ETF (NYSEArca: MJ). The cannabis-related ETF ended today’s market session down 4.13%, but not before it gained as much as 36.5% since the middle of the month.
The first U.S.-listed ETF to target the cannabis and marijuana industry has spiked well above its 50-day moving average after being down roughly 17% year-to-date, according to Yahoo! Finance performance numbers.
MJ seeks to provide investment results correspond generally to the total return performance of the Prime Alternative Harvest Index, which s concentrated in the pharmaceuticals and tobacco industries. It was these securities comprising the underlying index that MJ can thank for the serendipitous rise this month.
Specifically, Constellation Brands, an international producer and beer marketer, invested $5 billion in Canopy Growth Corp. Canopy Growth, a Canadian medical marijuana company, hopes to parlay this capital infusion, along with a high-level management team and a high-tech distribution center, into becoming a global powerhouse in its respective market.