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On Dec. 26 the very first marijuana ETF will start trading in the U.S.
That’s just a few days before California starts issuing licenses for the sale of recreational marijuana.
Initial estimates suggest that California’s Jan. 1 legalization could boost America’s “legal weed” market by 75%. Click here to discover the BEST cannabis stocks to BUY now.
Tierra Funds expects to introduce a new fund called the Alternative Agroscience ETF.
Pot Stock ETF Makes History
The fund will be the first U.S. ETF focused on investing in companies in the business of growing, producing and distributing cannabis. The pot stock ETF will also invest in pharmaceutical companies that are in the sector.
The fund will trade on the New York Stock Exchange, giving easy access to any investor with a brokerage account. Only companies operating in states that have legalized cannabis will be included in the pot stock ETF.
Now, this may be the first U.S. fund to invest in cannabis.
But earlier this year, the Horizons Medical Marijuana Life Sciences ETF (TSE: HMMJ) began trading on the Toronto Stock Exchange.
More recently, that fund also began trading on in the U.S. on the OTC BB exchange with the ticker symbol “HMLSF.”
The performance of this ETF has been impressive.
Since its introduction in April 2017, the ETF is up 46.6%. That’s more than three times the gains of the S&P 500 (NYSE: SPY).
As of Oct. 3, the fund owned 21 cannabis stocks. It is allocated approximately 65% to Canadian investments, 27% to the U.S., and 8% to the U.K.
Both of these funds are focused on investing in legal weed stocks. And we know that many companies will benefit from this amazing growth trend.
The North American market is growing by about 30% per year. And that rapid growth is expected to continue for the next decade.
Passive investors who simply want broad, diversified exposure, can probably do OK with either of these funds.
However, neither of these funds are likely to deliver remarkable profits.
Folks looking for triple-digit profits need to be focused on individual pot stocks. Not a broad, diversified approach.
Just consider the performance of some pot stocks within the last year:
- Canopy Growth (TSE: WEED): +101%
- MedReleaf (TSE: LEAD): +117%
- Aurora Cannabis (TSE: ACB): +168%
Some of Canada’s bigger pot stocks have been surging in price, ahead of full legalization in 2018.
With California also going 100% legal on Jan. 1, this market is just starting to heat up.
The first NYSE-listed pot stock ETF is a sign that cannabis investing is going mainstream. And I’d expect an influx of cash flowing into this sector in early 2018.
Right now, I’m going to show you how to invest in the best stocks . . . BEFORE they take off.
Go here to access my year-end Pot Stock Summit.
It’s 100% FREE to attend.
You’ll get all the details on what’s happening in California and Canada. Plus, you’ll learn the best ways to get invested before Jan. 1.
Just click here to join me.