As the rules and regulations around marijuana begin to loosen, with improving sentiment on the recreational usage on the once highly guarded drug, more businesses are starting to dabble and expand the cannabis industry, and investors can also access the growth opportunity through related exchange traded fund strategies.
Corporate America is eyeing the cannabis trade. For example, Marlboro cigarette maker Altria announced a $1.8 billion investment into a grower after Corona brewer Constellation Brands invested almost $4 billion into nascent industry, the Wall Street Journal reports.
“Wall Street’s very, very interested,” Tim Taggart, president of American Growth Fund, told the WSJ.
However, Taggart warned that there is still a lingering stigma as financial institutions remain extremely wary of regulators.
Related ETF: ETFMG Alternative Harvest ETF (NYSEArca: MJ)
The rapid growth spurt in the cannabis trade was bolstered by Canada’s decision to legalize marijuana in October. The move sparked a light under venture-capital investments and deals, and by the end of 2018, eight cannabis companies were listed on the Toronto Stock Exchange and 37 on the junior TSX Venture Exchange.