Performance of this ETF hasn’t been the best so far, with a -6% return. But small-caps do have acquisition potential as well, which could prompt a run as we head into legalization.
As their Product Sheet suggests, some of the key features of HMJR are:
●Strong Growth Potential: Gain exposure to the rapidly growing Marijuana industry. The entire legal Marijuana market is expected to reach USD $24.5 billion in sales by 20213
●Small-Cap Focus: Emphasis is on early stage, small-cap companies with significant upside growth potential
●International Exposure: HMJR will have exposure to internationally listed stocks
MJ – ETFMG Alternative Harvest ETF
This fund started back at the end of 2015 and is the first and only US ETF to target the cannabis industry. Since inception, it’s provided an annualized return of about 15%. Similar to HMMJ, its top 10 holding feature many of large-cap companies in this sector.
One of the main differences between MJ and HMMJ is the presence of tobacco giants, such as Phillip Morris, and Imperial Brands, and pharma-based companies such as Cara Therapeutics and Arena Pharmaceuticals. Perhaps foreseeing the future here with the likes of Constellation Brands entering the market with its massive investment in Canopy Growth Corporation (TSE:WEED; NYSE:CGC; FRA:11L1), and Diageo PLC buzzing around the cannabis sector lately. Whether more deals are on the horizon is up in the air, but all signals are pointing to this happening. And picking each
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