The market for cannabis stocks is quite tumultuous and difficult to navigate. But just a year ago, options for ordinary retail investors were extremely limited; there were no ETFs to invest in, and most stocks were listed in Canada. But now, we have many choices as money has poured into stocks and funds in anticipation of Canada’s pending legalization of recreational cannabis on October 17 and growing speculation that other industries will buy in.
Marijuana ETFs don’t invest in the local retailers and dispensaries. They usually invest in the biotech and pharmaceutical companies that use cannabis in their research and medicines. These pharmaceuticals can be marijuana-based or even holistic medicines that are much more likely to be approved and accepted in the marketplace. The ETFs even invest in the supply chain of marijuana growers supporting the specific fertilizers and equipment growers use for their crops.
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