Ron Strider
Well-Known Member
It’s high time individual investors have a diversified fund to quickly and easily invest in the so-called green rush and get a toke of America's fastest-growing industry. The first U.S. exchange-traded fund, ETF, to focus on marijuana stocks is launching Dec. 26 -- days before California legalizes recreational cannabis use on January 1. It’s not actually a new ETF though. Tierra Funds is converting the Tierra XP Latin America Real Estate ETF, trading under the symbol LARE, into the Alternative Agroscience ETF.
“I see this as something like the early days of the internet where many companies failed, and a few grew into massive success stories,” says Anthony Welch, president of Sarasota Capital Strategies in Osprey, Fla. “As with the internet, the makeup of a cannabis fund today will look much different than the same fund 20 years from now.”
One of the biggest challenges in creating and managing an index of cannabis stocks is that most of them are small penny stocks, which don’t have the trading volume a successful ETF needs, says Welch. Don’t jump aboard unless you can stomach roller coasters because it will likely be very volatile.
If U.S. investors follow in the footsteps of their Canadian counterparts, the Alternative Agroscience ETF should grow like a weed. The Horizons Medical Marijuana Life Sciences ETF, listed on the Toronto stock exchange, has attracted $243 million (309 million CAD) since it debuted in April. It’s rallied 31% since inception, through Dec. 1.
Potential Stock Holdings
Tierra hasn’t provided a list of holdings. Besides cannabis growers, companies that make fertilizers, growing equipment, greenhouses and ancillary products like edibles are potential ETF holdings.
Market Potential Bigger Than Cable
ArcView Market Research projects the compounded annual growth rate, CAGR, of the green rush will be faster than cable TV in the 1990s. The firm forecasts the North American cannabis market will go from $6.7 billion in 2016 to $22.6 billion in 2021 -- an eye-popping CAGR of 27%.
Arcview Market Research
“Very few consumer industry categories reach $5 billion in annual spending and then post anything like 25% compound annual growth across the following five years,” Arcview wrote in a report. “Cable television came close, growing 19% annually in the late 1980s as national networks like CNN and HBO proved to be wildly popular.
“Broadband internet subscription spending grew 29% per annum in the early 2000s as it became almost as much of a ‘must have’ utility as electricity or television for the modern home.”
The global medical marijuana market is projected to reach $55.8 billion by 2025, according to Markets and Research.
News Moderator: Ron Strider 420 MAGAZINE ®
Full Article: https://www.forbes.com/sites/trangh...y-and-easily-with-this-new-fund/#3eb386e058de
Author: Ky Trang Ho
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Photo Credit: Getty Images
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“I see this as something like the early days of the internet where many companies failed, and a few grew into massive success stories,” says Anthony Welch, president of Sarasota Capital Strategies in Osprey, Fla. “As with the internet, the makeup of a cannabis fund today will look much different than the same fund 20 years from now.”
One of the biggest challenges in creating and managing an index of cannabis stocks is that most of them are small penny stocks, which don’t have the trading volume a successful ETF needs, says Welch. Don’t jump aboard unless you can stomach roller coasters because it will likely be very volatile.
If U.S. investors follow in the footsteps of their Canadian counterparts, the Alternative Agroscience ETF should grow like a weed. The Horizons Medical Marijuana Life Sciences ETF, listed on the Toronto stock exchange, has attracted $243 million (309 million CAD) since it debuted in April. It’s rallied 31% since inception, through Dec. 1.
Potential Stock Holdings
Tierra hasn’t provided a list of holdings. Besides cannabis growers, companies that make fertilizers, growing equipment, greenhouses and ancillary products like edibles are potential ETF holdings.
Market Potential Bigger Than Cable
ArcView Market Research projects the compounded annual growth rate, CAGR, of the green rush will be faster than cable TV in the 1990s. The firm forecasts the North American cannabis market will go from $6.7 billion in 2016 to $22.6 billion in 2021 -- an eye-popping CAGR of 27%.
Arcview Market Research
“Very few consumer industry categories reach $5 billion in annual spending and then post anything like 25% compound annual growth across the following five years,” Arcview wrote in a report. “Cable television came close, growing 19% annually in the late 1980s as national networks like CNN and HBO proved to be wildly popular.
“Broadband internet subscription spending grew 29% per annum in the early 2000s as it became almost as much of a ‘must have’ utility as electricity or television for the modern home.”
The global medical marijuana market is projected to reach $55.8 billion by 2025, according to Markets and Research.
News Moderator: Ron Strider 420 MAGAZINE ®
Full Article: https://www.forbes.com/sites/trangh...y-and-easily-with-this-new-fund/#3eb386e058de
Author: Ky Trang Ho
Contact: Contact Information
Photo Credit: Getty Images
Website: {{meta.title}}
