Over the past few years it has been very difficult to try an invest in the legal marijuana movement. Almost all of the companies available are penny stocks with cringe worthy financial statements. The worlds first pot ETF has launched on the Toronto Stock Exchange. Ten of the 14 stocks currently held in the fund are Canadian-based companies, most of which are licensed producers of legal medical marijuana. Three are pharmaceutical companies based outside of Canada. U.S. fertilizer giant Scotts Miracle-Gro is also in the fund.. An article on cnbc goes into further detail:
Canadians are bringing a new meaning to the term "investor high," with the world's first marijuana-focused exchange-traded fund opening on the Toronto Stock Exchange.The Horizons Medical Marijuana Life Sciences exchange-traded fund is comprised of 14 stocks, allowing investors to diversify their risk. The fund uses the North American Medical Marijuana Index as a benchmark.
Anyone looking at trying to invest in either this or any of the companies the ETF is holding? I have been following investments in the marijuana market for years, but have never used it for anything more than short term swing trading. With federal legalization on the horizon for Canada as early as next year though maybe it is worth a closer look.
Why didn't they make the ticker $WEED, $HIGH, $KUSH, $POT, $DANK, or something like that? Huge opportunity missed.
A lot of the first companies took advantage of that actually with some of the big names being MJNA and PHOT. I think it's due to their desire to be a safe investment alternative that they didn't go with something more...trendy.
$THC listing in Aus next month..
Just FYI, this is TSX listed so may pose problems if you try to buy it (due to it being non-US listed), depending on which brokerage you use.
Yea I saw that in a follow on article actually. If the returns are promising enough it doesn't seem bad to switch brokers to get in on the action. For me personally I don't really have an issue waiting and planning out my investing in U.S. based companies though so I am not really worried. With the state of the stock market currently I don't really feel the need to risk seeking out higher yield. I am hoping some of the U.S. companies like TRTC eventually become attractive companies some day in the future though.
I like the market, going to have stupid growth. But I'm going to stay away from ETFs or to trying to play the actual marijuana companies. I don't think it's worth trying to guess what company is going to come out with the best product/strain.
Better to play around it. Scott's Miracle Gro is a no-brainer, can you even name another fertilizer? What about grow-op REITs, mobile growing facilities, pesticides, anyone that services hydroponics. Maybe those healthcare clinics with drug-testing services...
Roundup?
There are no limits to how high this will go.
I'd have to think tobacco companies will also want to get in on a budding, new industry. They already have the infrastructure and the manufacturing processes in place and could be well-positioned for a transition into marijuana.
This may be the first pot ETF, but there are several pot-focused VC firms that have been around for a few years.
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