Marijuana ETFs Suffer From a Fatal Flaw
Last year was one to forget for cannabis stock investors. Hopes were certainly high once the first quarter ended, with more than a dozen pot stocks advancing by more than 70%. The expected launch of cannabis derivatives, along with ongoing legalizations in the U.S., was forecast to lead to much-improved bottom lines for pot stocks.
However, when 2019 came to a close, most marijuana stocks were riding nine-month downtrends and bordering on multiyear lows. Supply issues in Canada and the inability for legal producers to be price-competitive with the black market in select U.S. states made for an ugly year for marijuana stocks.
Suffice it to say that this poor performance has made some investors a bit gun-shy about purchasing individual pot stocks. Traditionally, this is where exchange-traded funds (ETFs) would come into play.
Source Fool.com
