The ETFMG Alternative Harvest ETF (NYSEArca: MJ), the first and currently still the only dedicated cannabis exchange traded fund listed in the U.S., recently topped $1 billion in assets under management.
To be precise, MJ had $1.01 billion in assets under management as of Monday, Feb. 4th, according to issuer data.
As the rules and regulations around marijuana begin to loosen, with improving sentiment on the recreational usage on the once highly guarded drug, more businesses are starting to dabble and expand the cannabis industry, and investors can also access the growth opportunity through related exchange traded fund strategies.
Entering Tuesday, MJ was up 49.44% year-to-date, easily making it one of 2019 best-performing non-leveraged ETFs.
What’s Fueling Cannabis Growth
The ETFMG Alternative Harvest ETF includes a hefty tilt toward Canadian companies, along with a smaller position in U.S. companies. Canada, which recently legalized marijuana for recreational purposes, has several dedicated cannabis ETFs trading there.
In the U.S., MJ is getting a lift from speculation that more states will legalize marijuana for either recreational or medicinal use and that Congress and the White House could soften their stances on the drug being illegal at the federal level. California, Colorado, Nevada and Washington are among the states with thriving legal cannabis industries.
Some anecdotes suggest millennial investors are enthralled with cannabis stocks.