ETF’s (exchange-traded funds) are a type of bundled investment (ie: group of stocks). ETF’s trade like stocks on stock market exchanges (ie: NYSE). ETF’s are cheaper to invest in than mutual funds. 

Currently, there has been much excitement over exotic, niche, hyper-targeted ETF’s like the fairly new 3 marijuana ETF’s

The hottest of these right now is the ETFMG Alternative Harvest, which is a passively managed collection of marijuana industry stocks, which pays dividends. 

Each of the ETF’s chosen marijuana stocks must have a minimum market cap of $200 million dollars

The ETF’s largest holdings are concentrated in Canadian-based marijuana or marijuana-related companies, which make up 41% of the portfolio by market value.

The United States and United Kingdom round out its three largest country exposures, making up 34% and 9% of the portfolio, respectively.

ETFMG Alternative Harvest’s top 10 stocks  as of 11/01/2018:

Name % Total Net Assets Ticker Shares Held Market Value USD
CANOPY GROWTH CORP 9.13 WEED CN 1576433 $57995664.04
AURORA CANNABIS INC COM 8.76 ACB CN 8197285 $55668957.93
TILRAY INC COM CL 2 8.11 TLRY 543656 $51533152.24
CRONOS GROUP INC COM 7.96 CRON 6811140 $50538658.80
GW PHARMACEUTICALS PLC ADS 6.61 GWPH 305395 $41988758.55
CANNTRUST HOLDINGS INC 4.51 TRST CN 4096237 $28658288.07
HYDROPOTHECARY CORP NEW COM 4.05 HEXO CN 5747391 $25758958.17
ORGANIGRAM HOLDINGS INC 3.34 OGI CN 4984435 $21241458.66


Most importantly, ETFMG Alternative Harvest has a low-expense ratio, which is currently 0.75%.

That means you only pay $7.50 in annual fees per every $1,000 you invest

So you could invest $10,000 into it and only pay $75.00 in annual fees, which is crazy low and beneficial for the investor. 

If you have a decent chunk of money you’d like to invest (ie: old 401K), an ETF could be a smart choice.

Marijuana is an emerging market. As such, investing in the marijuana industry is high-risk, high-reward. Vast fortunes can be made quickly. And also lost quickly, so beware. 

Marijuana ETF’s tend to invest in the pharmaceutical and biotech companies doing cutting-edge research into medical applications. They also tend to supplement their marijuana exposure with the variety of companies allied to the marijuana industry in some way. 

The legality of marijuana in the United States is in a quickly-fluctuating jurisdictionally grey area right now. Although still illegal at the federal level, marijuana is being legalized for recreational use by various states. 

It’s every investors dream to catch the rising tide of a hot, new emerging market. Find out what decision is best for you. 

ETFMG Alternative Harvest

ETF Trends


Leave a Reply