3 Brand-New Cannabis ETFs Set to Launch

Posted On April 17, 2019 1:32 pm
By: Steve Smith

After a smoking-hot performance during 2018, cannabis-related stocks have cooled quite a bit in 2019. Many popular names such as Tilray (TLRY), Canopy (CGC), and Cronos (CRON) are 25% to 50% off their 52-week highs.

This may actually prove to be a good thing for both investors and the three firms that are set to launch new Cannabis based exchange-traded funds (ETFs) in the coming days.

The initial speculative rush into weed stocks was based on the notion that as society, business and regulatory landscapes evolve in the 21st century. The upside potential of cannabis as an emerging investment was presented near blue-sky potential with some analysts, predicting multiple $100 billion opportunities, which together would comprise a $5 trillion-dollar industry over the next decade.

But investors were faced with a wide range of unproven business models, management teams and the sky-high valuations certainly assures that many companies will fail as the winners are separated from losers.

For those that didn’t want to try to pick individual companies, but rather use a fund to invest across the whole sector, there were very few choices. The most popular and oldest cannabis-focused exchange-traded fund is Alternative Harves (MJ). It invests in companies that cover the spectrum of recreational to pharmaceutical applications and businesses that supply equipment for growing and packaging products.

Now, starting…

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About author

Steve Smith

Steve Smith have been involved in all facets of the investment industry in a variety of roles ranging from speculator, educator, manager and advisor. This has taken him from the trading floors of Chicago to hedge funds on Wall Street to the world online. From 1987 to 1996, he served as a market maker at the Chicago Board of Options Exchange (CBOE) and Chicago Board of Trade (CBOT). From 1997 to 2007, he was a Senior Columnist and Managing Editor for TheStreet.com, handling their Option Alert and Short Report newsletters. The Option Alert was awarded the MIN “best business newsletter” in 2006. From 2009 to 2013, Smith was a Senior Columnist and Managing Editor for Minyanville’s OptionSmith newsletter, as well as a Risk Manager Consultant for New Vernon Capital LLC. Smith acted as an advisor to build models and option strategies to reduce portfolio exposure and enhance returns for the four main funds. Since 2015, he has worked for Adam Mesh Trading Group. There, he has managed Options360 and Earning 360, been co-leader of Option Academy, and contributed to The Option Specialist website.