Analysts predict this cannabis exchange-traded fund could be a million-dollar winner
In the last five years, marijuana has gone from being a controversial word to a multi-billion dollar industry globally. Although the cannabis industry is growing at a steady pace, with legal sales in the billions, corporate actions in the space have proven to be much more volatile than expected, especially in the last year. Still, many believe that investing in this sector can generate significant income opportunities, as it is in full swing and likely destined for wider diffusion. For this reason, cannabis exchange-traded funds (ETFs) are chosen. This is why there is one ETF that should be looked at closely, as it has all the potential to generate substantial gains in the coming years.
The AdvisorShares Pure US Cannabis ETF is made up of multiple multi-state operators (MSOs) based in the US. The steady rollout of legalization in the country, and a Democrat-controlled government, has meant that the chances of good returns in the marijuana industry has increased exponentially. Some of the largest MSOs that are part of the AdvisorShares Pure US Cannabis ETF are Trulieve Cannabis and Curaleaf Holdings. Both have incredible potential, and this could make reaching the target much easier.
A cannabis ETF like this arises as a practical possibility to easily diversify investment and reduce the natural risk of the stock market. This ETF can be set up to make some long-term gains, potentially turning a $50,000 investment into $1 million; however, a little patience is needed until this can happen.