Listing on the NYSE 14 months ago by ETF Managers Group (ETFMG), MJ is the largest cannabis ETF in the world, according to its issuer. MJ is the only US listed ETF which targets the cannabis industry directly.
2018 was a busy year for a lot of federal associations around the globe with the legalisation and approvals reaching an all-time high. Policy changes include Canada becoming the second country and Michigan becoming the 10th US state to legalise cannabis for recreation use. The US now hosts 32 states which have legalised cannabis for medical use.
MJ managed to grow its assets by 9,600 per cent in the its first year of launching. Dividend distribution for Q4 2018 was close to $9m which is equivalent to 1.36 per cent yield per share. The dividend pay-out was greater than the total expenses of owning the ETF, meaning investors were gaining a profit for simply owning the fund.
Sam Masucci, CEO and Founder of ETFMG said "When we launched MJ, I talked about how at ETFMG we look to impact the ETF industry evolution with products that innovate and provide investors exposure to new markets, in fact 75% of our products are first to market. MJ is not only proof of our ability but also as to the power of the ETF wrapper and that thematic products can have a place in the average investor's portfolio while generating significant returns."