Introducing Your Own Personal Weed ETF

Written by Nick Hodge
Posted April 3, 2019

Two years ago — nearly to the day — I wrote to you about how to create your own marijuana exchange-traded fund (ETF).

Heeding that advice would’ve netted you thousands of percent by now.

At the time, there were no weed ETFs that focused on the recreational side of the market in Canada or the U.S. It was illegal in either country.

Undeterred, we offered you a list of stocks poised to deliver rapid profits from pot’s imminent ascent — a trail we had been blazing since 2013!

One of those stocks was Canopy Growth (NYSE: CGC)(TSX: WEED), and it went on to deliver profits of nearly 3,000% to those who shared our vision and recommendation.

Flash forward two years and much has changed. Cannabis is now fully legal in Canada and 10 U.S. states with others growing more jealous of the tax revenue on a daily basis.

One of the first actively managed funds in Canada launched last year — the Evolve Marijuana ETF (TSX: SEED).

There are still no marijuana exchange-traded funds that allow you to gain a basket of exposure to the U.S. market — one that’s 10 times as big as Canada and quickly approaching acceptance on a federal level.

The race is now on to fill that gap.

Canadian newspapers are reporting this week that ETF providers are rushing to offer the first ETF that has “total exposure” to the U.S. cannabis market.

Both Evolve Funds Group and Horizons ETF Management have now filed preliminary prospectuses with the Ontario Securities Commission to launch U.S.-focused cannabis ETFs.

But for as far as the industry has come, there are still major caveats.

First, those funds will still trade in Canada, not the U.S, so they may not be easily accessible for Americans.

Second, the Toronto Stock Exchange bans firms that operate in the U.S. in violation of federal law. So it will only be able to include those that list on alternative Canadian exchanges, like the Canadian Securities Exchange (CSE).

So they’ll give you exposure to the U.S., but only via certain companies that trade on certain exchanges.

We can do better.

Just as we’ve been doing for years, we have a better way for you to invest in the U.S. cannabis space.

We’ve moved on from Canopy and the legalization in Canada… and are now focusing more on the U.S. and emerging trends in the space, specifically mergers and acquisitions.

Here is our list of five cannabis stocks we think will be taken out in short order.

Call it your personal “weed buyout ETF.”

When one gets bought out — as several have already, delivering profits each time to those who bought in — our resident expert Jimmy Mengel will replace it on the list.

There may still not be any major cannabis ETFs.

But we don’t need them anyway.

Call it like you see it,

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Nick Hodge

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Nick is the founder and president of the Outsider Club, and the investment director of the thousands-strong stock advisories, Early Advantage and Wall Street's Underground Profits. He also heads Nick’s Notebook, a private placement and alert service that has raised tens of millions of dollars of investment capital for resource, energy, cannabis, and medical technology companies. Co-author of two best-selling investment books, including Energy Investing for Dummies, his insights have been shared on news programs and in magazines and newspapers around the world. For more on Nick, take a look at his editor's page.

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Investing in Marijuana Without Getting Burned