The ETFMG Alternative Harvest ETF (MJ:NYSE ARCA) is an exchange-traded fund with large holdings in the high-growth cannabis industry. An ETF is like a large “basket” of various stocks or bonds in various industries and sectors. ETFs can be found for all markets alike, but the cannabis market is what interest us the most because of its explosive growth recently in the U.S and its recent legalization in Canada.
Across the globe, cannabis is slowly coming out of the shadows and into the spotlight for use in medicine and even raw material. We have seen insane numbers come out of states adopting recreational marijuana such as Colorado which has jumped from $683 Million in sales in 2014 to over $1.5 Billion sales by 2017. Just this month, Canada’s government passed the legalization of recreational marijuana Nation-wide!
With Canada’s recreational law passing, already established companies in the game with huge distribution deals can start rolling out the product. This is where MJ:NYSE ARCA comes into play… This is one of the first marijuana based ETFs that has its focus on the Canadian market. Currently, the largest holdings for MJ:NYSE ARCA are TGOD, ACB, CGC, and CRON. These companies are top players in the game and already have capacity to blow the market out of the water once recreational sales start.
Right now we see a lot of these stocks accumulating sideways, with volume rising steadily. These players have already seen huge movement such as CRON:NASDAQ, which grew over 900% in just a few months. It smells like a lot of these tickers are teeing up to pop again upon the roll-out of recreational marijuana in Canada. These companies already have huge distribution deals such as CRON:NASDAQ recent distribution agreement with a Polish pharmaceutical wholesaler, Delfarma. Delfarm is huge as they “distribute directly to over 5,000 pharmacies and more than 200 hospitals” which effectively reaches “40% of the Polish domestic market.”