During the pandemic, cannabis sales increased by 46%, and it is certainly not slowing down any time soon.
Although the cannabis sector is on the rise with more states legalizing the plant and sales increasing year-over-year, the plummeting prices of individual company stocks have given would-be investors pause.
As a result, if the price of one of the stocks in the portfolio drops, it can be mitigated by other holdings.
stock exchanges like the NASDAQ and NYSE don’t allow plant-touching companies like multi-state operators markets — not astypical for American Brokerage platforms. But because ETFs are structured as investment vehicles, they can be listed on U.S.
Like any investment, it is prudent to research various ETFs before allocating.
Some ETFs focus purely on cannabis companies, while others trade in hemp and CBD pharmaceuticals.
When analyzing the management team, there are many factors to consider — years of experience and focus, background, and the type of investments they specialize in.
For instance, at Poseidon we use Dynamic Leverage Capability, meaning we can be at 80% exposure to the market or go all the way up to 150% .
Cannabis ETFs are a straightforward way for investors to gain exposure to this industry today for the wave of future profits from this growing industry.
The Fresh Toast is an award-winning lifestyle & health platform with a side of cannabis.