The Bottom Line On Marijuana Etfs
The cannabis industry struggled for years after it came out of the gate a little too hot. This growing industry has already undergone the longest bear market in its history.
Investors are already piling into the big names in the industry. But these five cannabis ETFs are a cheaper and more diversified way in. And the way theyre set up all but ensures great earnings potential as sales and legalizations increase.
Yolo Etf Track Record
YOLO has a 52 week historic range of $10-$31, and currently rests around $21 per share. In looking at its size, we have shares outstanding of just over 16.7 million.
Subtract closely held shares, and you have the float. That means YOLO isnt the biggest ETF around, but its a highly specialized one with unique appeal to fans of cannabis investing.
This fund is about two years old.
Poseidon Investment Management Announces Launch Of Poseidon Dynamic Cannabis Exchange Traded Fund
Poseidon Investment Management, a leading investment firm in the cannabis industry with $196M in assets under management as of August 2021, today announced the launch of the AdvisorShares Poseidon Dynamic Cannabis ETF . PSDN, which will begin trading on Wednesday, November 17, 2021, is sponsored by AdvisorShares and will be sub-advised and managed by the Poseidon team, including co-founders and Managing Directors Emily Paxhia and Morgan Paxhia and Managing Director Tyler Greif.
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The Trough Of Disillusionment
The past year has been tough for the cannabis industry. A combination of over-hype, unrealistic expectations, and a lack of understanding of the challenges faced by the industry has led to a sharp sell-off in cannabis stocks. This has left many investors feeling frustrated and even despondent about their investment prospects in the sector.
But it’s important to remember that every new industry goes through growing pains. It’s natural for there to be bumps in the road as the industry matures. And while the past year has been difficult, it’s also important to remember that the long-term prospects for the cannabis industry remain extremely bright.
Here, MoneyCrashers overlays Gartner’s “hype cycle” with cannabis.
Trough of Disillusionment
While we cannot perfectly pick bottoms in any investment, the left hand part of the chart above gives us a clue. The volume study on the left of the chart above suggests that selling is almost exhausted for YOLO.
We can also see below that the RSI using the longer weekly time frame is very oversold. It is rare that this holds long and price usually rises soon after meeting such an oversold condition.
YOLO RSI Oversold
Certainly, uncertainty over the broader stock market due to Federal Reserve tightening is a concern, but YOLO has already been beaten up and has limited downside, especially long-term as legal adoption continues and financial normalization occurs supporting growth rates as expected.
Best Reits With Cannabis Exposure
Real estate investment trusts are companies that own, operate, or finance profit-producing real estate holdings such as warehouses, processing facilities and retail outlets.
REITs can move into the cannabis industry by investing in facilities for growing the crop, producing cannabis products, and distribution networks.
- Innovative Industrial Properties Inc. . Innovative Industrial Properties Inc. is dipping its toe into the cannabis market by investing in growing infrastructure including greenhouses and processing facilities. The funds current dividend yield is 7.35%, or about $1.75 per share held. Although its US-based , Innovative Industrial Properties Inc. is listed on the London stock exchange.
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Is Yolo Etf A Buy
In spite of its #meme-like stock ticker, YOLO appears to be a decent pick in the cannabis ETF space. I like that it has significant exposure to US multi-state operators , but even more than that, its allocation in the Canadian space appears interesting as well. Unlike many other cannabis ETFs, which have only Canadian operator exposure and have in general seemingly allocated capital based on market capitalization, YOLO takes an interesting approach by making Village Farms its top holding, with more than twice the allocation of other Canadian operators like Tilray or Canopy Growth . VFF appears to be an underrated operator in the Canadian space, as it is in general one of the only operators that consistently earns positive adjusted EBITDA:
And yet, VFF trades cheaper on a price to sales basis than Canadian peers.
VFF is an interesting company in that only 33% of its sales come from cannabis products. The remainder comes from the sale of produce like tomatoes – VFFâs US operations are prohibited from selling cannabis . VFF intends to retrofit its facilities to produce cannabis upon legalization. Even if we only focus on cannabis sales, VFF has produced consistent gross margins in the 30% range and consistent EBITDA margins. The same could not be said for Canadian peers. If I was forced to invest in a Canadian operator, then VFF might be my choice.
Further, US operators trade at cheaper valuations despite having stronger growth rates:
What Is The Fund’s Strategy And Why Is It Better Than The Approach Taken By Other Cannabis Etfs
I believe that active portfolio management and active security selection is extremely important in cannabis. YOLO has more U.S. cannabis exposure than other funds – both with investments in MSOs that other funds cannot invest in, and in REITs that equity index funds can’t own.
We choose to avoid or underweight many of the largest, most famous names in the Canadian cannabis business that most indexes weight highest.
YOLO is also a real “pure play” in cannabis investments – avoiding companies many competitors own such as Scotts Miracle Gro, lighting companies, testing companies, big tobacco, alcohol, etc.
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Advisorshares Launches Psychedelics Etf
AdvisorShares, a leading sponsor of actively managed exchange-traded funds , today announced the launch of the AdvisorShares Psychedelics ETF . PSIL begins its trading as the first U.S.-listed actively managed ETF to deliver dedicated investment exposure to psychedelics and this emerging equity theme.
What Is Yolo Invested In
One of the trending acronyms in the stock market today, YOLO, supports the idea, at least among those new to investing, that you only live once. So, the idea behind YOLO is that you should invest everything in one stock and hope for the best You can liken this idea to investing all that you have in a really big win.
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What Are These Securities About Should You Consider Them
My colleague Andrew Willis recently said to me, “LMAO, are you tempted to YOLO because you have FOMO from all the BUZZ?”
It may sound like gibberish. But the fact is, every one of those words either is or soon will be, a ticker for security. LMAOU is the ticker for LMF Acquisition Opportunities Inc Units, a special purpose acquisition company, or a SPACwhich is owned by a company called LMFAO . YOLO is the ticker for AdvisorShares Pure Cannabis ETF. FOMO is a planned ETF. While BUZZ is the VanEck Vectors Social Sentiment ETF backed by Barstool Sports Dave Portnoy.
Thats a lot to navigate. Why are these coming into the spotlight now?
Ben Johnson, Director of Passive Strategies at Morningstar, Words and phrases see their popularity surge and fade no different than fashion trends or fad diets. Today it is YOLO. Two millennia ago it was carpe diem.
He also warns that investing in hot themes tends to result in lukewarm outcomes. By the time these themes have their own ETF with a cute ticker, odds are that the market has priced much of investors enthusiasm into the share prices of the companies that these funds own. The second is that the fund could fizzle out and closeleaving investors out in the cold. Historically, thematic funds have proliferated in the late stages of bull markets, aiming to capitalize on whatever the hot trend of the day might be. Most have failed to live to jump on the next bandwagon, he notes.
Can You See All The Holdings Of An Etf
If youd like to see all the ETFs holdings, not just the top 10, you can use the ETF link also provided by USATODAY.com. The link is located on the upper left-hand corner under the Fund URL for iShares MSCI EAFE Value ETF. You can then click on the Holdings tab and see all the stocks the ETF owns.07-Sept-2011
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Canopy Growth Stock Chart
Canopy lost $1.14 per share, worse than the 23 cents expected, when it reported earnings in May. Sales of $87.6 million missed expectations and were down from the prior quarter and year.
Cannabis revenue fell. Investments in Biosteel, a sports-drink maker it majority-owns, and the company’s U.S. strategy will weigh on margins and profits in the coming quarters.
Canopy has a CBD business in the U.S., which includes brands from the likes of Martha Stewart. It has deals in place to eventually buy U.S. cannabis operator Acreage Holdings, California extract maker Jetty Extracts, and Wana Brands, an edibles maker in the U.S.
Canopy Growth stock has a 2 Composite Rating and a 50 EPS Rating.
Advisorshares Pure Us Cannabis Etf
At the top of our list is MSOS. One of the reasons it tops out our list is that it is the only actively managed ETF dedicated solely to U.S. cannabis exposure. Because MSOS focuses exclusively on the largest marijuana market in the world, the U.S., the potential here is extraordinary.
The other appeal here is that MSOS holdings are well-diversified. Its holdings include growers, dispensaries, pharmaceutical companies and biotech firms focused on marijuana use. It also includes real estate companies focused on marijuana and developers of consumption devices and hydroponic growing systems. This gives investors exposure to the marijuana industry at every stage.
If weed grows anywhere near as popular in the coming years as is expected, MSOS will be in a unique position to reward shareholders. Which is why this is one of our favorite marijuana ETFs to consider investing in.
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Advisorshares Launches The Poseidon Dynamic Cannabis Etf
AdvisorShares, a leading sponsor of actively managed ETFs and the largest cannabis fund manager, today announced that the AdvisorShares Poseidon Dynamic Cannabis ETF will begin trading on Wednesday, November 17, 2021. PSDN is sub-advised by Poseidon Investment Management, one of the first firms dedicated to investing exclusively in the emerging cannabis industry. Poseidon was co-founded by managing directors Emily Paxhia and Morgan Paxhia, a sister and brother team. Emily and Morg
Is Yolo A Good Marijuana Etf
YOLO has a net expense ratio of 0.75 percent, which is fair for an actively managed fund that seeks to deliver better returns than index funds. Investors have seen returns of more than 110 percent on YOLO ETF stock in the past three months compared to 16 percent for the stock market benchmark S& P 500.
Usually, YOLO distributes dividends four times a year. It last paid a dividend of $0.0373 in December 2020. YOLO’s total dividend distribution in 2020 was more than $0.34 per share. The funds next dividend distribution date is March 31, 2021.
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Is Yolo Investing A Legit Trading Strategy
A friend of mine somehow had the foresight to buy on GME when it was near its low. When the stock skyrocketed in January, he sold his position and exited with a gain worth more than many people make in a year. But not all were so lucky.
It’s up to you to decide if you can stomach the risk. Some people set aside a small amount of money in their brokerage account to use for riskier investments. If you try this, you could double your money or more, just like at a Las Vegas roulette table. But just as easily, you might walk away with a big loss.
For long-term needs like retirement, saving a down payment for a home, and paying for college, you should avoid a YOLO investment strategy. Those funds are too important to risk gambling on when to buy and sell a YOLO stock.
Gorilla Rx Ceo On Black
Yahoo Finances A Time for Change welcomes mother-daughter duo Kika Keith and Kika Howze to talk about their company, Gorilla Rx, the only Black-female-owned cannabis dispensary in Los Angeles. The entrepreneurs discuss the beginnings of Gorilla Rx, the effects of the war on drugs, and the steps the cannabis industry needs to take to help diversify ownership.
NBA Legend & Viola Co-Founder Al Harrington joins A Time For Change to discuss breaking ground in the booming cannabis industry, the benefits of marijuana, and empowering the Black community to gain ownership in the marijuana business.
Psychedelic drugs can be used to treat a range of mental health and neurological issues.
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Why People Are Using The Yolo Strategy
YOLO investors are a new breed of something that has existed for a long time. In prior generations, Dutch tulips and the West Coast Gold Rush resulted in plenty of newly minted millionaires. If you read about others doing the same with cryptocurrency investment or risky stocks, you may feel like you’re missing out.
In many cases, there are still more dollars to be made. But the big runup could just as easily be over. Many would-be millionaires are tempted by the apparent opportunity to get rich quickly. However, if it were that easy, everyone would have done it. Don’t get too sucked in when the markets are in mania or you could lose your life savings.
Yolo Stock Meaning: How This Strategy Works
A YOLO investing strategy is an active trading strategy to earn a huge return in a short period of time. Some people promote this type of investing on social media. But it’s actually a lot more like gambling than investing.
Some YOLO investing proselytizers share how they earned huge returns from picking a hot stock like Tesla or getting in early on bitcoin. However, not all investors come out ahead. Going all-in on any one stock is far too risky for the typical investor.
Stories from the stock market in January 2021 often seemed more like pump-and-dump schemes from the movies Boiler Room and The Wolf of Wall Street than what you would expect in an efficient market.
GameStop and AMC Entertainment both took a wild ride in January and February 2021. These YOLO stocks are examples of how some people can make a big profit while others take a big loss in a short period of time.
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Is Acreage Holdings A Good Investment
Acreage Holdings: The Bottom Line The general consensus among analysts is that Acreage is well-positioned to support consolidation of what is now a highly-fragmented cannabis market, which promises strong growth in coming years. Of course, the risks that apply to any cannabis stock are in play here.
Best Pure Play Cannabis Stocks
Pure play businesses are publicly-traded companies that operate entirely within one area in this case, cannabis.
The UKs pure play cannabis businesses work in consumer goods or medical marijuana space, in-line with UK law that prohibits the use of recreational cannabis.
As a new industry, firms in this space are typically in spending mode, according to Ms Boothroyd.
She comments: Investing in cannabis requires a long-term mindset to see those opportunities out. If youre willing to incur the added risk of investing in a new industry struggling to prove profitability, make sure youre focused on what cannabis firms are doing in the present.
- Kanabo Group . The London-based Kanabo Group makes over the counter CBD formulations for vaping. It is also on the way to patenting a medical grade vapouriser, the VapePod. Although Kanabos share price has been on a slow downward trajectory since the start of 2021, its market cap of around £15 million makes Kanabo one of the UKs largest cannabis companies. As of August 2022, shares are trading at just below 3p.
Mj Msos And Yolo Are The Best Marijuana Etfs For Q4 2022
Marijuana exchange-traded funds provide investors with exposure to equities of companies that engage in the cultivation, distribution, and sale of marijuana and related products. Products of marijuana companies include dried flowers, oils, seeds, edibles, and more.
Still prohibited as an illegal substance in many parts of the world, marijuana is gaining wider acceptance for both medicinal and recreational purposes. Support for continued legalization is growing, and cannabis is now a multibillion-dollar industry. The global legal marijuana market is expected to expand at a healthy compound annual growth rate of 25.5% through 2030. Marijuana ETFs are a straightforward way for investors to gain exposure to a diversified basket of marijuana equities and profit from this growing industry.
Pros Of Investing In Marijuana
There are specific advantages to getting involved in marijuana and cannabis stocks and funds.
One of the overarching ones has to do with the dramatic types of legalization and decriminalization that are occurring in national markets.
Its not every day that you get a brand-new market materializing on exchanges. Thats something that works in the marijuana investors favor as countries make new relaxed rules, people get excited about being able to buy something that was always illegal before.
As a correlated point, you will see evidence of this in medical marijuana dispensaries springing up all over the country. These brick and mortar business locations are as new as the industry itself, and they will most certainly have specific stocks and funds backing them up as market representatives.
They also represent the will of physicians to prescribe marijuana for everything from glaucoma to anxiety. New science keeps showing new benefits of cannabis on the human body. That makes marijuana a unique green health product that other products cant compete with.
Yet another plus for cannabis investing is that these companies sell actual products, and not intangibles that require a lot of research and development. Research and development startup firms can remain penny stocks for years, bringing negative EPS, only to disappear instead of growing.
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