I am a passionate devotee of freedom in all its forms. That’s why I am encouraged to see the recent shift in American public opinion favoring the legalization of cannabis, notes Jim Woods, editor of The Deep Woods.
I respect the personal views of others about whether to use or invest in cannabis. To date, marijuana is legal for adults in 11 states and the District of Columbia, while medical marijuana is legal in 34.
With President-elect Joe Biden announcing that he favors the decriminalization of cannabis on the federal level, the path has opened for pot stocks to rise again. Those stocks generally had been in a slump since 2019 due to overproduction and a lack of profitable cannabis companies.
Thus, it is time to turn our attention to an exchange-traded fund (ETF) that has appeared in one of my trading services. The ETFMG Alternative Harvest ETF (MJ) tracks a market-cap-weighted index of global firms engaged in the legal cultivation, production, marketing or distribution of cannabis, cannabinoids or tobacco products.
This fund’s performance has been relatively strong, even when including the damage done by the COVID-19 pandemic. As of Dec. 15, MJ has jumped 17.08% in the past month and 34.71% for the past three months.
However, it currently is down 6.40% year to date to show how much it had fallen before its recent rebound.
The fund has amassed $986.33 million in assets under management and has an expense ratio of 0.75%.
While MJ does provide an investor with a chance to tap into the world of cannabis, this kind of ETF may not be appropriate for all portfolios. Thus, interested investors always should conduct their due diligence and decide whether the fund is suitable for their investing goals.