Global X Cannabis ETF among the biggest movers in fund trading markets

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Alternative investment vehicles continue to provide support for the fledgling cannabis industry

The coronavirus global health pandemic has caused many issues to the world besides health problems and collapsed healthcare facilities. The business world has had a historic downfall due to businesses shutting down operations in an effort to stop the virus from spreading any further. In response to the general crisis, the House of Representatives has approved a historic $2.2 trillion stimulus package to help the country’s economic situation. This government’s contribution is having a noticeable effect on several exchange-traded funds (ETF), the cannabis Global X Cannabis ETF has experienced a solid spike this week.

Global X is an ETF focused on investing in the cannabis industry, as well as keeping track of the cannabis industry. This fund currently has 26 stocks in its basket; Canadian firms count for 79.2% of assets, while the US stocks take a 12.4% share. Its asset base was reported at $8.3 million in average daily volume coming from 200,000 shares.

In just the past week, Global X has risen 31.7%. The cannabis industry is right now in a gray area in which, on one side, is negatively impacted by businesses being shut down, but, on the other side, the demand for the product has increased considerably as people have been on lockdown for a couple of weeks now.

This does not mean the cannabis industry has suddenly become a risk-free investment, at least in the short-term. The industry has had to let many employees go due to the same reason, and thousands of people from many industries are currently filing for unemployment benefits. In the long-term, the outcome looks brighter due to the stimulus package granted by the government. Those investors who can handle bear more risk are still facing a great opportunity to put money in the cannabis stock that still has low prices with the potential of a great return of investment.