by winston » Wed Jun 05, 2019 10:12 am
ETFMG Alternative Harvest ETF (MJ)
ETFMG Alternative Harvest ETF is a passively-managed ETF with market cap of approximately USD 1.01 billion and expense ratio of 0.75%.
MJ is the first US-listed ETF to offer exposure to legal cultivation, production, marketing or distribution of cannabis products, for either medical or nonmedical purposes.
In October of 2018, Canada legalized cannabis for adult recreational use. In addition to Canada, about 10 U.S. state s have legalized cannabis for recreational use while almost half the states approved cannabis for medicinal but not recreational uses.
According to the BDS Analytics, global spending on global cannabis products may surge 40% in 2019 with estimated 18.1 billion.
Estimated global sales should reach $32 billion by 2022 from $12.9 billion in 2018, which is a 25.5% compound annual growth rate.
Due to the loosened rules and regulations, the US will become the major driving force for the growth of legal cannabis industry, followed by Canada.
Increasing adoption of legalized cannabis in various products particularly medical and recreational use would further expand the cannabis industry.
Therefore, investors can access the growth opportunity through MJ ETF. Suggested to buy at $32.49, target price $38.35, cut loss if drop below $30.68.
Source: Phillips
It's all about "how much you made when you were right" & "how little you lost when you were wrong"