Cannabis stocks could see higher highs.
All after the U.S. Department of Health and Human Services called on the Drug Enforcement Agency to ease restrictions by changing marijuana’s Schedule I classification to a Schedule III substance. As we near that possibility, and as hopes build for federal reform, related stocks have been moving aggressively higher.
Tilray, for example, ran from a July low of about $1.60 to $3.30. Canopy Growth ran from about 40 cents to $1.90. Aurora Cannabis jumped from 45 cents to $1.15. Even related ETFs are taking off, including:
Global X Cannabis ETF (POTX)
With an expense ratio of 0.51%, the ETF invests in companies involved in the legal production, growth, and distribution of cannabis and industrial hemp, as well as those involved in providing financial services to the cannabis industry, and pharmaceutical applications of cannabis. Since late August, the POTX ETF ran from about $6.25 to $9.25.
Advisor Shares Pure US Cannabis ETF (MSOS)
With an expense ratio of 0.60%, the ETF was the first actively managed U.S.-listed ETF with dedicated cannabis exposure focusing exclusively on U.S. companies, including multi-state operators, as noted by Advisor Shares. Since late August, the MSOS ETF ran from $4.75 to $9.25.
ETFMG Alternative Harvest ETF (MJ)
Or, take a look at the ETFMG Alternative Harvest ETF (MJ). With an expense ratio of 0.75%, the ETF measures the performance of companies within the cannabis ecosystem benefitting from global medicinal and recreational cannabis legalization initiatives, as noted by ETFMG.com. Since late August, the MJ ETF ran from about $2.90 to $4.70.
