Alternative Harvest ETF (NYSEARCA:MJ): Is this the Fund to Own During the COVID 19 Pandemic?

July 27, 2020

Jason Wilson is ETF Managers Group, LLC’s Cannabis Banking and Research Expert and Partner of ETFMG Alternative Harvest ETF (NYSEARCA:MJ).

Jason Wilson has held leadership and senior positions at several leading financial institutions. Most recently, Mr. Wilson was Senior Vice President at INFOR Financial Inc. INFOR is a leading boutique investment bank based in Toronto, Canada, that has worked in connection with a number of companies in the legal cannabis industry, including acting as adviser to Canopy Growth Corporation in connection with entering into its strategic relationship with Constellation Brands.

In this 3,736 word interview, exclusively in the Wall Street Transcript, Mr. Wilson explains and details the components of his marijuana based ETF:

“…The ETFMG Alternative Harvest ETF trades under the ticker MJ on the New York Stock Exchange and has been focused primarily on the cannabis industry since December of 2017.

As you mentioned, it is an index fund, which means it tracks an index of companies that are engaged in the cannabis industry. Currently, there are 35 companies in the index, and these are the holdings of MJ.

As of today, there are approximately $600 million in assets in the ETF. We have a daily trading volume of over 850,000 shares, which means approximately, at current price, around $12 million a day of volume. It has a 12-month trailing yield right now, at just over 6%.

The fund is a very interesting way to gain exposure to the cannabis industry and to wait for the inevitable growth or tailwinds behind the industry and actually receive a decent yield while we wait for further opportunities to unfold.”

The fund is geared towards investors looking to find an easy way to participate in this sector:

“When you look at the universe of companies that would be eligible for inclusion, we break them down as to whether or not they’re primarily engaged in the industry or have ancillary exposure, so that’s our initial driver. Any company that is primarily engaged, where they’re all in on the cannabis industry, are automatically eligible for a higher weight.

Companies that are good examples are Canopy Growth (NYSE:CGC), Aphria (NASDAQ:APHA), Aurora (NYSE:ACB), Tilray (NASDAQ:TLRY) and GW Pharma, as all of their revenues are related to the growing of cannabis or the manufacturing and sale of cannabis-related products. They are eligible for the highest weightings.

Ancillary companies, no matter how big they are, tend to have a lower weighting than those primary companies.”

Get the full detail by reading the entire 3,736 word interview, only in the Wall Street Transcript.