Investing in cannabis can be a bit overwhelming. Of course there are the cultivators, those who grow weed, but what about the rest of the industry? There are edibles, pharmaceutical grade THC/CBD, vape and extracts, you name it.
I’m going to give you a few alternative ideas for different ways you can put your money to work, and get your edge on investing in cannabis.
First thing you can do is to simply diversify. Save yourself a headache and buy an exchange traded fund (ETF) that will give you exposure to all sorts of cannabis companies. For those who don’t know, an exchange traded fund is like a mutual fund but it is not actively managed. One of the benefits of the lack of human oversight is that fees are super low. This likely deserves it’s own post in the future, but I’ll leave it there for now. One ETF idea for you is Evolve’s Cannabis ETF with the ticker symbol SEED.
Another investment idea is to look for developing themes in the Cannabis market. Of course we all know about the cannabis growers (ie cultivators), but for the time being edible Cannabis products are still illegal. In the fall we are anticipating that will change. So look for opportunities in edibles, beverages, vape pens etc. One example would be a newly listed company called Vapen MJ Ventures (CSE:VAPN). These guys check the two boxes of 1) US exposure and 2) the theme of extracts.
Back to the idea of investing in cannabis funds for a second. It’s also worth looking at actively managed funds (ie traditional mutual funds). I’m often a hater when it comes to mutual funds, but in a wild market like cannabis, it might actually be a pretty good idea. One such fund that is worth taking a look at is Cannabis Growth Opportunity Fund (CSE: CGOC). This fund looks at deals on both side of the boarder, giving you some of that desired US exposure.
Learn more at www.edge.investments (because ‘.com’ is so 1999)
I am not a financial advisor, these videos are for educational purposes only. Investing of any kind involves risk, and your investments are solely your responsibility. It is imperative that you conduct your own research, or seek the advice of a registered professional.