Want to Invest in the U.S. Cannabis Market? This New ETF Can Help You Do That
The cannabis industry is scorching hot this year, proving to be pandemic-proof thus far. In fact, i's becoming the norm to see states report record sales numbers. Illinois reported a record month, in August with recreational revenue totaling $64 million. Since May, the state's been posting record numbers month after month -- and it only began selling recreational marijuana in January. Even Colorado, a state that legalized pot in 2014, is still seeing expansion. It hit a record in July with recreational and medical marijuana sales coming in at a combined $226.4 million. Then there's Ohio, which recently reported medical marijuana sales of $21.4 million -- also a record for the state. It began selling cannabis products in January 2019.
For investors, trying to figure out the best stock to buy to take advantage of these opportunities can be difficult, since different companies operate in different states. You can also invest in producers such as Green Thumb Industries and Curaleaf Holdings, or a company like GrowGeneration that's in the hydroponics business and helps both businesses and individuals grow pot. Given all these choices, investing in an exchange-traded fund (ETF) can be the best approach, as it gives you a good mix of all those strategies. The AdvisorShares Pure US Cannabis ETF (NYSEMKT: MSOS), which began trading in September, includes all of the stocks mentioned above plus others, and it can be your best way to invest in the U.S. pot market.
This isn't the only cannabis ETF out there, but it does present one of the best investment opportunities. The reason it's a better buy than other ETFs is that it's focused primarily on the U.S. market. The AdvisorShares Pure Cannabis ETF (NYSEMKT: YOLO) contains many of the same stocks, but it also includes many Canadian pot companies. And while the Canadian cannabis industry is also growing, it's still a fraction of the U.S. market; in July, Statistics Canada reported a record month for cannabis stores with sales totaling just 231.6 million Canadian dollars ($173.7 million) -- and that's for the entire country.
Source Fool.com
