Everything having to do with cannabis is shaking up the market.
It’s already disrupted alcohol, cigarettes, food, pharmaceuticals, and the global wellness industry. Even major retailers are jumping on board, seeing incredible opportunities for industry growth.
Neiman Marcus is pushing ahead with CBD sales at some of its stores and online. Simon Property Group is partnering with Green Growth Brands to open 108 stores in its malls just in 2019. Barney’s will launch “The High End.” CVS will carry a line of CBD products in eight states, including California, Illinois, Colorado, and Alabama. Even Walgreen’s will sell CBD products, including creams, patches, and sprays in 1,500 stores.
Analysts at Cowen say the U.S. cannabis market could rocket to $16 billion by 2025.
Arcview Market Research and BDS Analytics say the worldwide market could explode to $57 billion by 2027. In the U.S. alone, North American cannabis sales could reach $47.3 billion just over the next decade as well, they note.
The story is so hot, a new cannabis ETF launched just last week.
Advisor Shares Pure Cannabis ETF (YOLO)
YOLO, seeks long-term capital appreciation by investing in both domestic and foreign cannabis equity securities. YOLO is designed to fully-invest for pure cannabis exposure under the guidance of a deeply experienced portfolio management team navigating the emerging cannabis marketplace, notes Advisor Shares.
YOLO will invest 80% of its assets into companies that see 50% or more of their revenue from the marijuana and hemp industries. At least 25% of the fund will be invested in pharmaceutical, biotech, and life science companies using cannabis or CBD-related substances, notes ETF.com.
Already included in the ETF are stocks such as Green Organic Dutchman Holdings, Supreme Cannabis, Aurora Cannabis, Tilray Inc., Canopy Growth, Aleafia Health, WeedMD, Khiron Life Sciences, and Village Farm International.
ETFs offer great exposure to sectors, at a cheaper cost.
For example, if we wanted to buy 10 shares of each of the list companies above it would cost us just under $3,000. However, if we wanted to buy all of them and diversify with the ETF, it would cost $253 for just 10 shares.
Since 2017, the ETFMG Alternative Harvest ETF (MJ) was the only dedicated cannabis ETF that was made available to U.S. investors.