ETF Research Center

The ETFMG Alternative Harvest ETF tracks a market-cap-weighted index of global firms engaged in the legal cultivation, production, marketing or distribution of cannabis, cannabinoids or tobacco products.lf

FUND BASICS
Category	US Equities
Fund Sponsor	ETF Managers Group
Website	www.etfmj.com
Inception date	Dec 03, 2015
Assets (mns)	$680
Currency	USD
Expense ratio	75 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian
Weighting	Market Cap
Index replication
Uses derivatives	No
Options available	Yes

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	36
Wgt avg mkt cap (mns)	$9,766
Large cap (>$10bn)	11.6%
Mid cap ($2-10bn)	21.7%
Small cap (<$2bn)	66.7%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	54.5 %
TILRAY, INC.	8.1 %
CANOPY GROWTH CORPORATION	7.8 %
CRONOS GROUP INC	7.3 %
GW PHARMACEUTICALS PLC SPONSORED A	6.4 %
AURORA CANNABIS INC.	6.3 %
HEXO CORPORATION	4.2 %
APHRIA INC	4.0 %
CORBUS PHARMACEUTICALS HOLDINGS IN	3.5 %
MEDIPHARM LABS CORP.	3.5 %
ORGANIGRAM HOLDINGS INC	3.3 %

TOP COUNTRY EXPOSURE
	CANADA	53.6 %
	UNITED STATES	27.5 %
	BRITAIN	11.1 %
	SWEDEN	2.2 %
	JAPAN	2.1 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru November 30)
Year-to-date	1 year	5 years	10 years	Since Incep.
-29.2%	-38.9%	--	--	-25.7%

Market Correlations
versus...	Beta	R-squared
S&P500	2.11	36%
MSCI EAFE	2.06	25%
MSCI Emg. Mkts.	1.66	23%

Technical Indicators
Recent close	$16.84
30d moving avg.	$18.27
Annualized volatility	52.2%
Short interest (ETF)	6.8%
Relative strength (RSI)	36

Liquidity measures
Avg. volume (thou.)	941
Turnover	2.3%
Bid/Ask (% of price)	0.25%
ADV underlying (mns)	$1,583

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the ETFMG Alternative Harvest ETF based on the alternatives' overlap in portfolio holdings with MJ. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

MJ

Expense:

75 bp

ALTAR Score™:

-3.3%

ALTERNATIVE ETFs BASED ON OVERLAP WITH MJ
Ticker	Fund Name	Overlap¹ vs MJ (%)	Expense ratio (bp)	Savings vs MJ (bp)	ALTAR Score™ (%)	ALTAR vs MJ (%)
THCX	Cannabis	62.0	70	5	-5.6	-2.3
TOKE	Cambria Cannabis	50.8	42	33	0.7	+4.0
CNBS	Amplify Seymour Cannabis	47.9	75	0	-8.1	-4.8
YOLO	AdvisorShares Pure Cannabis	36.8	74	1	-18.1	-14.8
POTX	Global X Cannabis	13.5	50	25	-26.0	-22.7
ACT	AdvisorShares Vice	13.2	99	-24	7.9	+11.2
DIV	Global X SuperDividend US ETF	10.4	45	30	7.5	+10.7
PEY	Invesco High Yield Equity Dividend Acheivers	8.5	53	22	6.7	+10.0
KXI	iShares S&P Global Consumer Staples	8.3	46	29	5.3	+8.6
GCOW	Pacer Global Cash Cows Dividend	6.7	60	15	9.8	+13.0
FDVV	Fidelity Core Dividend	6.6	29	46	7.3	+10.6
IDOG	ALPS International Sector Dividend Dogs	5.6	50	25	7.4	+10.6
DMDV	AAM S&P Developed Markets High Dividend Value	5.0	39	36	10.2	+13.5
DOO	WisdomTree Int'l Dividend Ex-Financials	4.8	58	17	8.0	+11.3
VDC	Vanguard Consumer Staples	4.6	10	65	5.5	+8.7
IECS	iShares Evolved U.S. Consumer Staples	4.6	18	57	6.2	+9.5
CALF	Pacer US Small Cap Cash Cows 100	4.6	59	16	11.2	+14.5
FSTA	Fidelity MSCI Consumer Staples	4.5	8	67	5.5	+8.7
DEW	WisdomTree Global Equity Income	4.4	58	17	8.4	+11.7
SPHD	Invesco S&P 500 High Dividend	4.4	30	45	7.8	+11.1

¹Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

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RESULTS & ESTIMATES

	2014	2015	2016	2017	2018	2019E	2020E
Sales per share	**	**	**	**	**	**	**
Earnings per share	**	**	**	**	**	**	**
Dividends per share	**	**	**	**	**	**	**
Book value per share	**	**	**	**	**	**	**

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est.	**%		Debt-to-equity	**x
Asset turnover	**%		Assets-to-equity	**x

Return on equity

Revision activity*

*Six months ago = 100

Net margins

Compound annual growth rates

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VALUATION METRICS

	2018	2019E	2020E
Price-to-sales	**	**	**
Price-to-earnings	**	**	**
Price-to-cash flow	**	**	**
Price-to-growth	**	**	**
Price-to-book value	**	**	**
Yield	**	**	**

Historical valuation trends

Forward multiple:	ETFMG Alternative Harvest
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

AVOID

Not worthwhile for most investors. A rating of AVOID is assigned to ETFs with ALTAR Scores in the lowest quintile (the bottom 20%) of their category. Often, funds in this category consist of stocks with little if any history or expectation of profitability, and as a result our fundamentally-driven analysis may not be relevant.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	-6.8	%
Divided by: Fwd. P/BV	2.7	x
Less: Expense ratio	75	bp
Equals: ALTAR Score	-3.3	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.47	CATEGORY AVERAGE	1.56

The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale: BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3. Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.