Funds related to cannabis and the thematic growth industry saw strong returns over the past week for ETF provider Global X. One more fund that also seeing a strong 1-week performance was related to metals, but not silver or gold.
Here are the three funds from Global X that saw the best performances over the past week.
At the top of the heap was the Global X Cannabis ETF (POTX), which was up over 26%. POTX seeks to provide investment results that correspond generally to the price and yield performance of the Cannabis Index.
Investors are getting excited about new legislation that will open up the industry to more opportunities via legalization. As a CNBC article noted, “cannabis stocks have been climbing since the group began to show signs of profitability late last summer, with the onset of a blue wave igniting optimism around the possibility of nationwide legalization.”
“A statement issued this week by Senate Majority Leader Chuck Schumer and two other Democratic senators furthered the possibility of a subsequent green wave, with the lawmakers proposing a path to federal legalization,” the article added.
Federal legalization could bring more institutional money into the space.
“Over the next six months, there’s an expectation of more capital coming into the industry because it will now be investable to institutional players, and institutional bankers will help bring more capital into the industry,” said Tim Seymour, the founder and chief investment officer of Seymour Asset Management, during CNBCs “ETF Edge.”
Thematic Growth and Uranium
At a 12.38% gain the past week, the Global X Thematic Growth ETF (GXTG) came in second on the list. GXTG seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Thematic Growth Index.
GXTG delivers access to multiple disruptive macro-trends arising from technological advancements, changing demographics and consumer preferences, or evolving needs for infrastructure and other finite resources. As the world continues to cope with the pandemic, GXTG stands to capture the latest technological trends.
Coming in third at 12.26% is the Global X Uranium ETF (URA). URA seeks to provide investment results that correspond generally to the price and yield performance of the Solactive Global Uranium & Nuclear Components Total Return Index.
“Uranium equities have had a banner start to the year as positive business fundamentals seemed to collide with the chaos of Reddit-fueled market chaos,” an S&P Global Market Intelligence report noted.
For more news and information, visit the Thematic Investing Channel.