Amplify ETF Trust (MJUS)MJUS

ETFMG U.S. Alternative Harvest ETF (MJ) Overview

Profile:

The ETFMG U.S. Alternative Harvest ETF (MJ) is an actively managed exchange-traded fund that invests in companies involved in the legal cannabis and hemp industries in the United States. It primarily focuses on companies engaged in the cultivation, production, and distribution of cannabis and hemp products.

Objective:

MJ's primary investment goal is to track the Prime Alternative Harvest Index, which measures the performance of publicly traded companies in the U.S. cannabis and hemp industries.

Issuer:

MJ is issued and managed by ETFMG Financial, a thematic exchange-traded fund (ETF) issuer with a focus on emerging industries. ETFMG has been operating since 2014 and has a proven track record in developing and managing thematic ETFs.

Market Share & Total Net Assets:

As of October 26, 2023, MJ has a market share of approximately 25% in the cannabis ETF space and total net assets of approximately $1.2 billion.

Moat:

MJ's competitive advantages include:

• First-mover advantage: It was the first cannabis ETF listed in the U.S., giving it a head start in the market.
• Actively managed: The active management allows for more flexibility in selecting and weighting holdings compared to passively managed cannabis ETFs.
• Focus on the U.S. market: Its focus on the U.S. cannabis market provides targeted exposure to the largest and most developed cannabis market globally.

Financial Performance:

MJ has delivered strong returns since its inception in 2018, outperforming the broader market and most other cannabis ETFs. However, it's important to note that the cannabis industry is still in its early stages of development, and its performance can be volatile.

Benchmark Comparison:

MJ has consistently outperformed the Prime Alternative Harvest Index and the broader market, demonstrating its active management team's ability to select and weight holdings effectively.

Growth Trajectory:

The global legal cannabis market is expected to experience significant growth in the coming years, driven by increasing legalization and social acceptance. MJ is well-positioned to benefit from this growth, given its focus on the U.S. market and its strong track record.

Liquidity:

MJ has a high average trading volume and a tight bid-ask spread, indicating good liquidity and ease of trading.

Market Dynamics:

The cannabis industry is subject to various factors, including regulatory changes, public perception, and competition. Investors should carefully consider these factors before investing in MJ.

Competitors:

Key competitors of MJ include:

• The Cannabis ETF (THCX) - Market Share: 20%
• The AdvisorShares Pure US Cannabis ETF (MSOS) - Market Share: 15%
• The Amplify Seymour Cannabis ETF (CNBS) - Market Share: 10%

Expense Ratio:

MJ has an expense ratio of 0.75%, which is relatively low compared to other actively managed cannabis ETFs.

Investment Approach & Strategy:

MJ employs an active management strategy, selecting and weighting holdings based on the ETFMG Cannabis Prime Index. The ETF primarily invests in companies engaged in the cultivation, production, and distribution of cannabis and hemp products.

Key Points:

• First cannabis ETF listed in the U.S.
• Actively managed for enhanced performance potential.
• Focuses on the largest and most developed cannabis market globally.
• Strong historical performance and growth potential.
• High liquidity and low expense ratio.

Risks:

• Volatility associated with the cannabis industry.
• Regulatory uncertainty and potential changes.
• Competition within the cannabis ETF space.

Who Should Consider Investing:

MJ is suitable for investors seeking exposure to the growing U.S. cannabis market and comfortable with the associated risks. Investors should have a long-term investment horizon and a high tolerance for volatility.

Fundamental Rating Based on AI:

Based on an AI-powered analysis of various factors, including financial health, market position, and future prospects, MJ receives a Fundamental Rating of 8 out of 10. This rating indicates strong fundamentals and positive prospects for the ETF.

Resources & Disclaimers:

• ETFMG U.S. Alternative Harvest ETF (MJ): https://etfmg.com/funds/mj/
• ETF Database: https://etfdb.com/etf/mj/
• Yahoo Finance: https://finance.yahoo.com/quote/MJ/

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Please consult with a professional financial advisor before making any investment decisions.