3 min readBy Ron Koren ETF Insider
WCLD VS IXN
Compare the WCLD and IXN ETFs with our thorough analysis. Dive into the performance metrics, underlying assets, and investment strategies.
The issuer of the MJXL ETF is dedicated to providing investors with exposure to companies operating in the cannabis and related industries. The ETF invests in financial instruments like swap agreements, securities of the Index, and exchange-traded funds (ETFs) that track the Index to seek returns equal to 200% of the daily return of the Index. The underlying index tracks companies globally that are engaged in the legal cultivation, production, marketing, or distribution of cannabis, pharmaceutical companies that utilize cannabinoids in their products, tobacco-related businesses, and companies involved in the production and distribution of products for cannabis or tobacco cultivation. The issuer ensures that all companies included in the index comply with applicable national and local laws, including U.S. federal and state laws, and the index is reconstituted and rebalanced quarterly to maintain its composition. As of the date of this prospectus, the index had 33 constituents and was concentrated in the Pharmaceuticals and Tobacco industries. The issuer seeks to achieve its investment objective by closely tracking the index's performance through daily rebalancing and compounding, but investors should be aware of the potential risks associated with daily rebalancing and index volatility.
The MJXL ETF, focusing on companies involved in the legal cannabis, pharmaceutical, tobacco, and related industries, may not be primarily dividend-focused, but it still participates in dividend distribution based on its underlying index. Dividends are typically distributed quarterly and are subject to the dividend policies and performances of individual constituent companies. Investors in MJXL may benefit from potential capital appreciation along with potential dividend returns from eligible companies within the ETF's portfolio.
MJXL, or the MJXL Tracking ETF, is designed to closely track the performance of the Prime Indexes Global Cannabis and Tobacco Index. This ETF invests in various financial instruments, including swap agreements, securities of the Index, and exchange-traded funds (ETFs) that aim to provide daily leveraged exposure to the Index. It seeks to achieve returns equal to 200% of the daily return of the Prime Indexes Global Cannabis and Tobacco Index, which consists of companies worldwide engaged in legal cannabis cultivation, production, distribution, pharmaceuticals utilizing cannabinoids, tobacco trade, and related activities. The Index ensures that all included companies are in compliance with applicable national and local laws, and the ETF maintains a concentration in the Pharmaceuticals and Tobacco industries, in alignment with the Index's composition as of the last reconstitution date. MJXL employs various strategies to achieve its investment objectives, including derivatives and daily portfolio rebalancing, resulting in potential deviations from the 2x return of the Index over extended periods. Investors in MJXL should be aware of the associated risks, as outlined in the prospectus.
The correlation aspect of the MJXL ETF (Exchange-Traded Fund) is an important factor to consider when assessing its performance. MJXL is designed to provide daily leveraged exposure to a specific index, and its correlation with that index plays a crucial role in determining its returns. As an ETF focused on the cannabis industry, MJXL's correlation with the performance of cannabis-related companies and the broader market can vary. Investors looking to understand how MJXL moves in relation to its underlying assets and the market as a whole should closely monitor its correlation patterns.
The MJXL ETF primarily invests in financial instruments, including swap agreements and securities of the Index, which tracks companies engaged in legal cannabis cultivation, production, marketing, and distribution, as well as pharmaceutical companies that create government-approved drugs using cannabinoids. Additionally, the Index may include U.S.-listed common stocks of Special Purpose Acquisitions Corporations (SPACs) focused on acquiring businesses eligible for inclusion in the Index. As of January 14, 2022, the Index was concentrated in the Pharmaceuticals and Tobacco industries, reflecting the ETF's concentration in these sectors.
The exposure characteristic of the MJXL ETF focuses on companies engaged in the legal cultivation, production, marketing, or distribution of cannabis and related products for both medical and non-medical purposes, as well as pharmaceutical companies utilizing cannabinoids in approved drugs. Additionally, it includes companies involved in tobacco production, cigarette components, and the production and distribution of fertilizers, plant foods, pesticides, and growing equipment for cannabis and tobacco cultivation. The MJXL ETF primarily invests in financial instruments like swap agreements to seek returns equal to 200% of the daily return of its underlying index. ETF Insider''s web app can provide in-depth data and visualization tools to uncover exposure insights and correlations within MJXL and other US ETFs.
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3 min readCompare the WCLD and IXN ETFs with our thorough analysis. Dive into the performance metrics, underlying assets, and investment strategies.
6 min readThe MJXL ETF is a specialized investment fund that focuses on a specific sector. This exchange-traded fund offers investors exposure to a range of companies in this sector.
5 min readThe MJXL ETF is a specialized investment fund that focuses on global companies in the relevant sectors. This exchange-traded fund offers investors exposure to a diverse range of innovative and cutting-edge companies engaged in advancements in the industry. Discover the potential growth opportunities and risks associated with investing in this dynamic sector through the MJXL ETF.
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