Keep an eye on cannabis stocks.
As we head into an election year, we may hear more potential legalization to help bolster votes. Two, we’re still waiting to see if the Drug Enforcement Administration reschedules cannabis as a Schedule III drug, significantly reducing restrictions.
Three, President Biden just pardoned federal cannabis-related crimes, and also called on state governors to issue cannabis-related pardons at the state-level, too. “Just as no one should be in a federal prison solely due to the use or possession of marijuana, no one should be in a local jail or state prison for that reason, either,” said the President, as quoted by USA Today.
And, according to Pew Research, “An overwhelming share of U.S. adults (88%) say either that marijuana should be legal for medical and recreational use by adults.”
To potentially profit, you can always pick up individual cannabis stocks.
Or, if you want to diversify with dozens of cannabis stocks, look at the ETFs, including:
Global X Cannabis ETF (POTX)
One way is to invest in the Global X Cannabis ETF (POTX). With an expense ratio of 0.51%, the ETF invests in 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.
Some of its top holdings include Tilray, Innovative Industries, Canopy Growth, AFC Gamma, Cronos Group, and Aurora Cannabis to name a few.
Advisor Shares Pure US Cannabis ETF (MSOS)
There’s also the Advisor Shares Pure US Cannabis ETF (MSOS). With an expense ratio of 0.60%, the ETF was the first actively managed U.S.-listed ETF with dedicated cannabis exposure focusing exclusively on U.S. companies, including multi-state operators, as noted by Advisor Shares.
ETFMG Alternative Harvest ETF (MJ)
Or, take a look at the ETFMG Alternative Harvest ETF (MJ). With an expense ratio of 0.75%, the ETF measures the performance of companies within the cannabis ecosystem benefitting from global medicinal and recreational cannabis legalization initiatives, as noted by ETFMG.com. Some of its top holdings include Tilray, SNDL, Cronos, and Canopy Growth.
