ETFMG Launches 2X Inverse Cannabis ETF

Twice the (downside) potency?

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Reviewed by: Dan Mika
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Edited by: Dan Mika

ETFMG is following up its July launch of the ETFMG 2x Daily Alternative Harvest ETF (MJXL) with an inverse ETF betting against cannabis stocks.

The ETFMG 2x Daily Inverse Alternative Harvest ETF (MJIN) debuted on the NYSE Arca on Wednesday with an expense ratio of 0.95%. It seeks to provide returns twice the inverse of the Prime Alternative Harvest Index, which is the same index underlying MJXL, and tracks companies deriving at least half of their revenues from cannabis-related activity and agriculture.

MJXL has been rather quiet since its launch, attracting just under $600,000 in assets under management. However, an inverse version may be more attractive considering the underlying index has posted negative returns of 26.88% in the past three months.

The new inverse ETF is the fourth in ETFMG’s stable of cannabis-focused funds. The issuer was first to offer a cannabis-focused fund in the U.S. when it retrofitted the Tierra XP Latin American Real Estate ETF (LARE) into the ETFMG Alternative Harvest ETF (MJ) in early 2018.

It also operates the ETFMG U.S. Alternative Harvest ETF (MJUS), which is the U.S. holdings-only version of MJ.

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Dan Mika is a reporter for etf.com. He has previously covered business for the Ames Tribune and Cedar Rapids Gazette in Iowa, and BizWest Media in Fort Collins, Colorado. Dan holds a bachelor's degree in journalism from Truman State University.