Cannabis stocks may have gone up in smoke in 2021.
But 2022 could see many of them hitting higher highs.
Reportedly, Congress is looking to decriminalize cannabis this spring. In fact, according to The Hill, federal proposals could establish banking services for the cannabis industry, and purge the criminal records of marijuana offenders.
“The growing bipartisan momentum for cannabis reform shows that Congress is primed for progress in 2022, and we are closer than ever to bringing our cannabis policies and laws in line with the American people,” Reps. Earl Blumenauer (D-Ore.) and Barbara Lee (D-Calif.) wrote in a memo to the Congressional Cannabis Caucus.”
Helping, a growing number of Americans want to see cannabis legalization.
According to a Gallup Poll, for example, 68% of U.S. adults support it. “Americans are more likely now than at any point in the past five decades to support the legalization of marijuana in the U.S. The 68% of U.S. adults who currently back the measure is not statistically different from last year’s 66%; however, it is nominally Gallup’s highest reading, exceeding the 64% to 66% range seen from 2017 to 2019,” notes Gallup.
Should we begin to see further progress with legalization, some of the top stocks to consider are Canopy Growth (CGC), Tilray (TLRY), Aurora Cannabis (ACB), Cresco Labs (CRLBF), Grow Generation (GRWG), and OrganiGram Holdings (OGI).
Or, investors can even look at cannabis related ETFs, such as:
ETFMG Alternative Harvest ETF (MJ)
At $11.45 with an expense ratio of 0.75%, the ETFMG Alternative Harvest ETF (MJ) offers investors access to the Canadian and global marijuana sector. The fund tracks an index of stocks across the globe that are engaged in the legal cultivation, production, marketing or distribution of cannabis products for either medical or nonmedical purposes. Some of its top holdings include Aurora Cannabis, Tilray Inc., Canopy Growth, Cronos Group, and GrowGeneration Corp.
The Cannabis ETF (THCX)
At $8.80 with an expense ratio of 0.95%, the THCX ETF was “constructed to make investing in cannabis easier by helping investors get exposure to a basket of stocks that are expected to benefit from growth of the hemp and legal marijuana industries,” according to the THCX Fact Sheet. Some of its top holdings include OrganiGram Holdings, Scotts Miracle-Gro Company, Village Farms International, High Tide Inc., The Valens Co. Inc., and Charlotte’s Web Holdings.
Global X Cannabis ETF (POTX)
Another ETF to keep an eye on is POTX. At just $6.50, it’s also pushing higher in anticipation of potential legalization. Some of its top holdings include Aphria Inc., Canopy Growth, Cronos Group, Tilray Inc., GW Pharmaceuticals, and HEXO Corp.
Helping, according to a Global X survey on recreational cannabis, it was found that:
- A majority of Americans support legalizing cannabis on the federal level in the U.S.
- Older millennials & younger gen-Xers support federal legalization, followed by gen-Z & older demographics
- Positive attitudes toward the federal legalization of recreational cannabis have increased in recent years
- More Americans plan on increasing their recreational cannabis use than those who plan on decreasing use
- Gen X & baby boomers plan on increasing recreational cannabis use as they approach retirement years
- A majority of Americans believe cannabis should be taxed similarly to alcohol/tobacco