Cannabis ETFs offer risky gains

Article Excerpt

We continue to recommend investors steer clear of marijuana stocks. But as Canada gets ready to legalize cannabis for recreational purposes, most likely by the end of this summer, readers are increasingly asking for our analysis on cannabis-related stocks and ETFs. It remains difficult to say which marijuana growers will prosper and which will not. More certain is that overall demand for marijuana will continue to expand. One way for investors to cut risk is to look for firms that will benefit from industry growth no matter which producers thrive. Here are two ETFs that aim to benefit from the potential profitability of the cannabis industry (see the supplement on page 59 for more). HORIZONS MARIJUANA LIFE SCIENCES ETF $17 (Toronto symbol HMMJ; TSINetwork ETF Rating: Aggressive; Market cap: $697.4 million) invests in North American firms that are legally involved in the cannabis industry. Canada aims to legalize recreational marijuana later this year The Canadian model relies on licensed growers, with users granted only limited access…

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