While the majority of the investing world is buying tech stocks, the real returns are in cannabis stocks and it’s not even close.
A good way to compare the two is to stack up the Exchange Traded Funds or ETFs. Since September 2, 2020, the AdvisorShares Pure US Cannabis ETF (ticker: MSOS) has returned 74.71% while the NASDAQ 100 ETF (ticker: QQQ) has returned 3.85%.
AdvisorShares Pure US Cannabis ETF launched on September 1, 2020 – chart source Yahoo Finance. Dark blue = MSOS, light blue = QQQ.
The chart is telling and the trend should continue in 2021 as tech giants come under political pressure while cannabis companies see continued deregulation and legalization at the federal and state levels.
Investors looking to get into the US cannabis industry, but lack the time to devote to research should simply buy the AdvisorShares Pure US Cannabis ETF and treat it like a mutual fund with weekly/monthly contributions. The cannabis industry should see significant returns for years to come and this ETF reduces your risks by owning 28 U.S cannabis-related stocks – cannabis producers/sellers, real estate investment trusts, and the “pick and shovel” plays. Since the ETF is traded on the NYSE, you can buy it with any broker to include Robinhood.
Looking to buy individual cannabis stocks instead? Check out my ‘Eight Best Cannabis Investments for 2021’.