The funds charge a fee to borrow the shares, generating additional income that can help boost their performance. Per Bloomberg, while many ETFs engage in securities lending, it’s been a particularly lucrative practice for pot funds as many cannabis stocks have a small public float and aren’t readily available to borrow.
Investors borrow shares from the provider and sell them on the market, hoping that they will be able to repurchase the same at a lower price in the market, thereby gaining from the spread. ETF providers typically lend out securities to investors who want to short a stock. Securities lending is a practice where mutual funds and ETFs pay agents to lend out underlying components in the funds to other traders and thereby earn interest. Short selling or securities lending is another revenue stream for ETF issuers through which they can make additional money. That said, short-selling of the stocks also led to the spike in the MJ ETF. The tremendous success of the pot industry is showing no signs of slowdown with short-sellers piling up heavy losses. All these developments have injected strong optimism into the emerging marijuana industry, spurring deal activities and pushing marijuana stocks higher. regulators have also softened their stance on the drug’s legalization. Additionally, a number of states in United States have also joined the race of marijuana legalization. In fact, its popularity has been rising since Canada legalized recreational cannabis last year and become the second country in the world to do so on a national level. The surge was driven by easing of rules and regulations on the highly guarded drug for recreational and medical usage (read: ETFs That Topped & Flopped in Q1).
#Mj etf in market watch free
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.The cannabis-related ETFMG Alternative Harvest ETF ( MJ Quick Quote MJ - Free Report) has been outperforming this year so far, surging about 46%. NASDAQ data is at least 15 minutes delayed. NYSE and AMEX data is at least 20 minutes delayed. Visit to get our data and content for your mobile app or website. Visit Performance Disclosure for information about the performance numbers displayed above. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. The monthly returns are then compounded to arrive at the annual return. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return.
#Mj etf in market watch plus
Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. These returns cover a period from Januthrough September 12, 2022. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.51% per year.
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