Cannabis could become a $200 billion industry within the next decade, according to investment bank Stifel, up from $12 billion in 2018. Now, there’s a new way to claim your share of this megatrend: the Global X Cannabis ETF (Nasdaq: POTX).
The Global X Cannabis ETF can help you profit from the cannabis boom. Image source: Getty Images.
The ETF tracks the Cannabis Index, which includes companies that derive at least half of their sales, profits, or assets from cannabis. This includes businesses that produce, distribute, or sell marijuana, hemp, and cannabidiol (CBD).
“Cannabis provides a unique opportunity to access a trend in its nascent stages, driven by advancements in medicinal and industrial uses, but with further upside potential given increasing efforts to legalize recreational use,” Global X analyst Pedro Palandrani said in a press release. “As regulations evolve, we may see the emergence of enormous regulated markets, and we are thrilled to help a broad range of investors navigate this theme in a rigorous and compliant way.”
The fund’s fees are relatively low at 0.50%, or 50% per $10,000 invested per year, which makes it the least expensive passively managed cannabis ETF in the U.S., according to Global X.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool recommends HEXO. The Motley Fool has a disclosure policy.”>