The regulated cannabis market has heated up over the past couple of years. During the pandemic, cannabis sales increased by 46%, and it is certainly not slowing down any time soon. The US legal market is expected to grow to $45 billion in 3 years according to industry data company, headset..
Although the cannabis sector is on the rise with more states legalizing the plant and sales increasing year-over-year, the plummeting prices of individual company stocks have given would-be investors pause. At the start of 2022, individual U.S. stocks recorded three consecutive weekly declines to kick off the year.
In place of individual stocks, exchange-traded funds (ETFs) provide access to a portfolio of curated stocks, thereby minimizing risk through diversification. Managers can weight the different positions depending on individual company conviction. When investors buy ETF shares, they own a stake in multiple cannabis companies with one purchase. As a result, if the price of one of the stocks in the portfolio drops, it can be mitigated by other holdings.
– Read the entire article at Benzinga.
