PSDN ISSUER
The PSDN Active Cannabis ETF is managed by Poseidon Investment Management, LLC, serving as the Sub-Advisor for the fund. This actively managed exchange-traded fund (ETF) focuses on investments related to the marijuana and hemp industry. It seeks to achieve its investment objective by primarily investing in securities of companies that generate at least 50% of their net revenue from the marijuana and hemp business or provide services, products, or technology to this sector. Additionally, the fund may employ total return swaps to dynamically adjust its market exposure to these industries through leverage, potentially aiming for improved long-term growth and risk-adjusted returns. The fund's unique strategy also allows it to invest up to 20% of its assets in companies with potential cannabis-related revenues or those registered with the DEA for lawful cannabis research and development. As the cannabis industry continues to evolve and gain acceptance, the PSDN ETF offers investors a distinctive opportunity to participate in its growth.
PSDN DIVIDEND
The Alternative Sources Marijuana and Hemp ETF (PSDN) aims to generate returns by investing in companies with at least 50% of their net revenue derived from the marijuana and hemp business or related services, products, and technology. This actively managed ETF primarily holds exchange-listed equity securities of U.S. and foreign mid, small, and micro-capitalization companies, along with derivatives that mimic such securities. Poseidon Investment Management, LLC, the Sub-Advisor, may utilize total return swaps to dynamically adjust the Fund's market exposure to marijuana and hemp companies, potentially providing enhanced risk-adjusted returns. Additionally, the Fund may invest up to 20% of its assets in companies with potential cannabis-related revenues or those registered with the DEA for marijuana-related research and development. Regarding dividend eligibility and distribution policies, PSDN's dividend distribution is contingent upon the performance and dividend policies of its constituent companies. Since it primarily focuses on the cannabis industry, its dividend yield may vary depending on the financial performance of these companies. Investors should be aware that the cannabis sector historically has not been known for significant dividend payouts. Hence, while the Fund may provide exposure to the burgeoning cannabis market, dividend income may not be a primary driver of returns for PSDN investors.
PSDN TRACKING
Tracking the cannabis and hemp industry is the primary focus of the PSDN ETF. This actively managed exchange-traded fund (ETF) aims to achieve its investment objective by investing at least 80% of its net assets in securities of companies deriving a significant portion of their revenue from the marijuana and hemp business or providing related services, products, or technology. Additionally, PSDN utilizes derivatives with economic characteristics similar to these securities. The fund primarily invests in equity securities, including common and preferred stock, of mid-, small-, and micro-capitalization companies, both U.S. and foreign. Poseidon Investment Management, LLC, the sub-advisor, may leverage the fund's assets up to 1.5 times its total assets through total return swaps to potentially enhance long-term growth and risk-adjusted returns. Up to 20% of the fund's assets may also be invested in companies with potential cannabis-related business revenues or involvement in lawful cannabis research and development. As the cannabis industry continues to evolve and gain social acceptance, PSDN offers exposure to this growing sector while actively managing its investments to seek opportunities for growth and expansion.
PSDN CORRELATION
The correlation aspect of the ETFMG Alternative Harvest ETF (PSDN) is essential for investors seeking exposure to the marijuana and hemp industry. As PSDN primarily invests in companies deriving a significant portion of their revenue from the cannabis sector, its correlation with the performance of marijuana and hemp-related businesses is a key factor in understanding its behavior. This correlation can help investors gauge the ETF's sensitivity to developments within the cannabis industry and make informed decisions about their investments. ETF Insider's web app offers a valuable tool to study PSDN's correlations with other assets and sectors, providing deep insights and visualizations to assist investors in identifying potential opportunities and risks within the marijuana and hemp market.
PSDN SECTOR
The PSDN (Poseidon Cannabis & Hemp ETF) primarily focuses on companies involved in the cannabis and hemp business, including those providing services, products, or technology to this industry. The fund aims to derive at least 50% of its net revenue from such companies. It also has the flexibility to use derivatives with similar economic characteristics to these securities. The ETF may invest in mid, small, and micro-cap U.S. and foreign companies and employ total return swaps to enhance exposure. Additionally, it can use leverage of up to 1.5x for potentially improved long-term growth and risk-adjusted returns. The fund may allocate up to 20% of assets to companies with potential cannabis-related revenues or those registered with the DEA for marijuana research. PSDN's sector concentration is primarily within the Pharmaceuticals, Biotechnology & Life Sciences Industry Group of the Health Care Sector, aiming to capitalize on the growth potential of the cannabis market. However, investors should be aware of the associated risks and legal considerations associated with cannabis-related businesses.
PSDN EXPOSURE
The exposure characteristic of the Poseidon Cannabis ETF (PSDN) is centered on the marijuana and hemp industry. This actively managed ETF seeks to invest in companies deriving a significant portion of their revenue from the marijuana and hemp business or those providing related services, products, or technology. It primarily focuses on mid, small, and micro-cap companies, both in the U.S. and abroad, and may use total return swaps to dynamically adjust its market exposure to marijuana and hemp companies, potentially leveraging up to 150% of its total assets. Additionally, up to 20% of its assets may be invested in companies with potential cannabis-related revenues, creating a diversified approach to the burgeoning cannabis market.
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