Here’s Why Cannabis Stocks Could See Higher Highs

We highlighted opportunities in the cannabis space not too long ago.

And if you haven’t jumped into the space just yet, there’s still time. At the moment, cannabis is considered a Schedule 1 drug along with LSD and heroin – which makes no sense…

However, that could soon change, with the Department of Health and Human Services recommending that the Drug Enforcement Administration reschedule cannabis as a Schedule III drug, significantly reducing restrictions.

It’s also seen as a first step toward federal legalization, which is supported by a majority of Americans. In fact, according to Pew Research, “An overwhelming share of U.S. adults (88%) say either that marijuana should be legal for medical and recreational use by adults.”

To potentially profit, you can always pick up individual cannabis stocks.

Or, if you want to diversify with dozens of cannabis stocks, look at the ETFs, including:

Global X Cannabis ETF (POTX)

One way is to invest in the Global X Cannabis ETF (POTX). With an expense ratio of 0.51%, the ETF invests in companies involved in the legal production, growth and distribution of cannabis and industrial hemp, as well as those involved in providing financial services to the cannabis industry, pharmaceutical applications of cannabis.

Some of its top holdings include Tilray, Innovative Industries, Canopy Growth, AFC Gamma, Cronos Group, and Aurora Cannabis to name a few.

Advisor Shares Pure US Cannabis ETF (MSOS)

There’s also the Advisor Shares Pure US Cannabis ETF (MSOS). With an expense ratio of 0.60%, the ETF was the first actively managed U.S.-listed ETF with dedicated cannabis exposure focusing exclusively on U.S. companies, including multi-state operators, as noted by Advisor Shares.

ETFMG Alternative Harvest ETF (MJ)

Or, take a look at the ETFMG Alternative Harvest ETF (MJ). With an expense ratio of 0.75%, the ETF measures the performance of companies within the cannabis ecosystem benefitting from global medicinal and recreational cannabis legalization initiatives, as noted by ETFMG.com. Some of its top holdings include Tilray, SNDL, Cronos, and Canopy Growth.