A Dramatic Demonstration Of Cannabis Illiquidity – The MJUS ETF Rebalancing
Cannabis Stocks have been trending downward for two weeks, but the MJUS ETF rebalancing efforts gave some of them an additional shove.
The Amplify U.S. Alternative Harvest ETF (ARCA: MJUS) is an actively managed ETF that seeks long-term capital growth through investing in the securities of U.S. Cannabis Companies. The ETF is small relative to the better-known MSOS ETF (ARCA: MSOS) at about 14% of the net assets, but despite its smaller size, the MJUS had a dramatic impact on Cannabis stocks over the last two weeks.
The blue line shows the percentage of the total volume in the stock that was accounted for by MJUS trading. Negative numbers indicate selling, while positive numbers show purchases. The orange line shows each stock’s percentage gain or loss over the period.
The MJUS accounted for between 0.3% and 23% of the stock volume during the period.
Other technical and fundamental factors were at play …