The ETFMG Alternative Harvest ETF (NYSE ARCA: MJ) was a popular fund in 2020, and it remains a promising option for the rest of 2021. The legal cannabis market is expanding, and public opinion is shifting. Recent surveys reveal that more than two-thirds of the U.S. population supports the legalization of marijuana at the federal level. Tax revenue in legal states has been skyrocketing, making the financials impossible for the government to ignore. For investors who are confident in the long-term growth of legal cannabis and related products, this pick offers the widest exposure.
The fund is comprised of companies like Aphria, Tilray, Canopy Growth, Cronos Group, Aurora Cannabis, and GW Pharmaceuticals. These companies are all leaders in medical and adult-use cannabis.
The fund pays a dividend of $0.10, which currently produces a yield of 3.11%, putting it above the average dividend stock. It is actively managed with a turnover of 46%, so new investors can have confidence knowing that the holdings are cycled to keep up with developments in the industry. There’s also a relatively low expense ratio, making this an affordable fund to invest in.
With the cannabis market growing, this is one of the best ways to invest without tracking individual and sometimes highly volatile stocks. Recent market pullbacks have increased the affordability of this fund, making now one of the best times in recent months to buy.
Key Data:
- 52 Week Range: $8.81 – $34.58
- Dividend Yield: 11%
- Net Expense Ratio: 75%
All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.