America’s Cannabis market is expanding, with more states introducing legislation to legalize medical and recreational products. States including Montana, New Jersey, Arizona, Illinois, and South Dakota all voted to legalize recreational and medical cannabis in the recent elections.
Pot stocks are traditionally volatile, and there are new additions to the pool every few months. For investors who don’t have the time to track all of the viable stocks. ETF investment makes sense. The AdvisorShares Pure US Cannabis ETF (NYSE: MSOS) is a new fund on the market that was introduced in September. It is made up of an actively managed portfolio with $79.16 million worth of assets. It has a low expense ratio of 0.74%, equating to $74 yearly on an investment of $10,000.
This fund has grown significantly since its release, reflecting the overall confidence and interest in the newly expanded legal cannabis market. Its largest holding is Curaleaf (OTC: CURLF) a stock that has grown 72.42% in the year so far.
The AdvisorShares Pure US Cannabis ETF is beyond bargain territory today at $31.96, but its growth momentum (the chart is impressive) suggests that there are gains for investors to enjoy. As an option to expand an alternative portfolio, even with a small holding, this is one of the best choices available today.
- Assets Managed: $79.16M
- Net Expense Ratio: 74%
- YTD Return: 69%
All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.