The Global X Cannabis ETF, the Cannabis ETF, and Amplify Seymour Cannabis ETF have returned more than 90% year to date, according to Bloomberg. The three non-leveraged products have already outpaced the 4% gain in the S&P 500 Index.
- The outperformance of the pot ETF trio highlights hopes for the legalization of the cannabis market at state and federal levels and a wave of mergers and acquisitions.
- Optimism is growing in the cannabis industry as New York Governor Andrew Cuomo proposed to legalize marijuana in the state while a Democratic majority in Congress raises hopes of approval measures.
- Legalization of marijuana will spur demand and make supplier companies more profitable.
- The performance of EFTs, nonetheless, is seen as notoriously volatile due to mixed earnings reports and stalled legalization efforts.
- The cannabis industry is also facing difficulties in developing the right mix of products.
Cannabis ETFs are currently gaining. POTX is up 15.66%, THCX is up 11.01%, CNBS is up 8.86%.