As the outcome of the Presidential Election remains uncertain, one key fight has already been won at the polls. Voters in Illinois pushed through an initiative to legalize recreational cannabis use at the state level. Voters in South Dakota, Arizona, New Jersey, and Montana also approved legalization on their ballots. This could lead to a significant upside for cannabis producers, making the ETFMG Alternative Harvest ETF (NYSE: MJ) a pick to consider this week.
This ETF is comprised of recreational and pharmaceutical cannabis stock holdings, including Canopy Growth Corp. Cronos Group Inc., GW Pharmaceuticals PLC, and Aurora Cannabis Inc. It is a carefully managed fund with a high turnover rate that aims to maximize returns. The yield is high at 7.79%, which could make this an important income component for any alternative portfolio.
The fund peaked at $19.72 in the last 52-weeks. Positive news surrounding legalization could help it to grow in the coming months.
The majority of America’s states will now allow cannabis use in some form, so the upside for individual component stocks in this fund could be significant. Any investor interested in the legal cannabis market but uncertain about individual stocks will find this bargain exchange-traded fund to be compelling. A low net expense ratio keeps it affordable for alternative investors.
- Net Expense Ratio: 75%
- Turnover Percentage: 71%
- Dividend Yield: 79%
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.