Cannabis-Related ETF is Growing Out

This is not the first time alcoholic beverage producers were venturing into the potential growth in cannabis around the world. For instance, Molson Coors Brewing Co. partnered with Hydropothecary Corp. to develop non-alcoholic, cannabis-infused beverages for the Canadian market. Heineken’s Lagunitas started a specialized non-alcoholic drinks infused with THC, the active ingredient in marijuana.

According to U.S. cannabis research firms Arcview Market Research and BDS Analytics, legal sales in Canada are projected to hit $4.9 billion by 2022 and consumer spending globally will increase to $32 billion, or triple current levels.

MJ was the first U.S.-listed ETF to target the cannabis and marijuana industry. Canopy Growth Corp is the ETF’s top holding and makes up 9.4% of the fund’s portfolio. The ETF’s top country weights include Canada 60.5%, U.S. 21.0% and U.K. 7.3%.

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