The Cannabis Industry And Recent Political Events
Sometimes it can be amazing how current events can have an effect on the stock market. In yesterday’s trading as marijuana stocks saw substantial gains in the market protesters stormed Capitol Hill disrupting the electoral vote and a cannabis stock rally. Nevertheless, most pot stocks to buy ended the day with gains in the market. In essence, the upward, momentum would have been much more without the unruly incident. As it stands a shift in power will occur in the Senate that could benefit cannabis legislation for 2021. When passed the MORE Act could usher in a new era of the American cannabis market that could see growth and expansion for the coming years.
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At the present time, there are many ways to invest in the cannabis industry. Some cannabis investors that day trade or swing trade prefer the price fluctuations of the pure-play cannabis sector. In the past, these have shown much more volatility than some of the other sectors. Another sector the ancillary marijuana stocks like Innovative Industrial Properties, Inc. (IIPR Stock Report) usually have less volatility and could be better options for long-term investing in cannabis. The third option for cannabis stocks is the extraction of pot stocks which include medicinal and CBD companies. In general, these marijuana stocks have also shown less price volatility than the pure-play sector but have been more active than the ancillary pot stocks.
Is Investing In ETFs The Right Investment For Your Portfolio?
So, with so many different choices in cannabis stocks which are the best ones to invest in? Recently some cannabis investors have turned to cannabis ETFs as a form of simplifying exposure to gains in the cannabis industry. Generally speaking, ETFs are a type of security that involves a collection of securities or stocks that track an underlying index. Currently, there are many different choices for ETFs in the cannabis sector. In essence, this is a way for newer traders to be able to establish positions in the future success of the growing market. ETFs trade like stocks on the open market could be more stable than individual stocks. Because of this ETFs might be a good way to gain long-term exposure to the marijuana stock sector.
For the purpose of finding different ways to make investments in the U.S. cannabis industry, we can begin to look deeper into current ETFs. Although currently there are many to choose from these two ETF funds have given investors decent returns at the moment. With this in mind, let’s look at 2 of the better performing ETFs of 2020.
Marijuana ETFs To Watch:
AdvisorShares Pure US Cannabis ETF (MSOS Stock Report)
AdvisorShares Pure Cannabis ETF (YOLO Stock Report)
Top Cannabis ETFs To Watch: AdvisorShares Pure US Cannabis ETF (MSOS)
AdvisorShares Pure US Cannabis ETF is the first ETF with a focus on the U.S. marijuana market. Debuting on September 1, 2020, MSOS was the only new cannabis ETF to come to market for the year. In essence, this is one of the year’s most successful additions to the ETFs category. At the moment the fund has given investors a return of over 64.6% since its inception. Currently, the fund gives investors exposure to some of the leading U.S. cannabis companies in the industry. For example, some of the fund’s largest holdings include Green Thumb Industries (GTBIF Stock Report), Curaleaf Holdings Inc. (CURLF Stock Report), Cresco Labs Inc. (CRLBF Stock Report), and Trulieve Cannabis (TCNNF Stock Report). For investors just beginning ETFs like MSOS present a simplified method of purchasing many different cannabis stocks at one time.
MSOS ETF looks like it could continue climbing in the market today closing yesterday’s trading at $40.61. Currently trading premarket at $42.00 this ETF can give investors a more stable way of investing in pot stocks. With some of the best U.S marijuana stocks to buy in MSOS ETF this could be a good way to invest in the growing U.S. cannabis market for 2021.
Top Cannabis ETFs To Watch: AdvisorShares Pure Cannabis ETF (YOLO)
AdvisorShares Pure Cannabis ETF is another ETF created to garner exposure to the cannabis industry in the U.S. and abroad. Unlike MSOS ETF the ETF holds both foreign and domestic companies with a primary focus on U.S. and Canadian marijuana securities. In general, the fund’s top three holdings include Village Farms International Inc. (VFF Stock Report), Innovative Industrial Properties Inc. (IIPR Stock Report), and GrowGeneration Corp. (GRWG Stock Report). Currently down from its inception in April of 2019 YOLO ETF has been showing upward momentum since April of 2020. In addition, the ETF provides investors with an annual dividend yield of 4.35% and has $62.4 million of net assets.
YOLO ETF has gained over 10% in the first week of trading in 2021. As the cannabis industry continues rapid growth globally YOLO ETF could be a simple way to start a position in the marijuana sector. At the current moment, the cannabis sector is giving investors substantial returns on investments. Because of this YOLO ETF could be a good way to gain entry into cannabis investing for 2021.
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