Cannabis stocks went up in smoke in 2021.
But many could see higher highs by next week.
That’s because Congress just scheduled a vote to federally legalize the drug, as noted by Marijuana Moment.
In fact, “The U.S. House of Representatives will vote next week on the Marijuana Opportunity, Reinvestment and Expungement act, a bill that would remove cannabis from the list of federally controlled substances. If passed, the bill would be sent to the Senate for approval before heading to President Joe Biden’s desk for his signature.”
While there’s still uncertainty President Biden will sign it into law, stocks are still move higher, including Canopy Growth (CGC), Tilray (TLRY), Sundial Growers (SNDL), Aurora Cannabis (ACB), and related ETFs, like Global X Cannabis ETF (POTX).
According to Marijuana Moment, the Rules Committee will officially take up the measure in a Monday afternoon meeting to prepare it for floor action, which includes determining which amendments will be allowed to advance for consideration. The bill has already cleared the Judiciary Committee and was sponsored by Congressman Jerrold Nadler.
Should it pass, cannabis stocks could see explosive higher highs.
While you can always invest in individual cannabis stocks, ETFs offer better diversification at less cost. Some of the top ones include:
ETFMG Alternative Harvest ETF (MJ)
The ETFMG Alternative Harvest ETF (MJ) offers investors access to the Canadian and global marijuana sector. The fund tracks an index of stocks across the globe that are engaged in the legal cultivation, production, marketing or distribution of cannabis products for either medical or nonmedical purposes.
MJ also holds stocks of companies that trade or produce tobacco or tobacco products, or fertilizers, plant foods, pesticides or growing equipment for cannabis or tobacco. In addition, the fund can hold pharmaceutical companies that produce, market or distribute drug products that use cannabinoids.
The Cannabis ETF (THCX)
According to the ETFs site, “To put the opportunity into perspective, the global cannabis market is estimated to reach $630 billion by 2040 up from $12 billion today. THCX was constructed to make investing in cannabis easier by helping investors get exposure to a pure-play basket of stocks that are expected to benefit from the burgeoning hemp and legal marijuana industries.”Some of its top holdings include Canopy Growth, Grow Generation, Cronos Group, GW Pharmaceuticals, Neptune Wellness, and dozens more.
Global X Cannabis ETF (POTX)
Another ETF to keep an eye on is POTX. At $5.75, it’s also pushing higher in anticipation of potential legalization. Some of its top holdings include Aphria Inc., Canopy Growth, Cronos Group, Tilray Inc., GW Pharmaceuticals, and HEXO Corp.
“The Global X Cannabis ETF seeks to invest in companies across the cannabis industry. This includes companies involved in the legal production, growth and distribution of cannabis and industrial hemp, as well as those involved in providing financial services to the cannabis industry, pharmaceutical applications of cannabis, cannabidiol (i.e., CBD), or other related uses including but not limited to extracts, derivatives or synthetic versions,” as noted by Global X.
