More and more lawmakers are looking into weed legalization. On November 20th Mexican senate has approved cannabis legalization bill. Mexico will be the third country to legalize weed for adult use after Canada and Uruguay. In the US cannabis legalization is going forward as well. In the begging of November 4 new states (Arizona, Montana, New Jersey, and South Dakota) voted to legalize medical marijuana bringing the total amount of USA states where cannabis is legal up to 15. There is other news that other states are working on legalizing it as well in 2021.
This is great news for Companies working in the cannabis industry. A growing number of people are agreeing that adults should be legally allowed to consume weed not only for medical but for recreational reasons as well and The global legal cannabis market size is expected to reach $73.6 billion by 2025.
Many weed companies have gone in price drastically over the last few years. Some of the great examples are Canopy Growth Corporation which is up more than 1000% in the last 5 years and Cronos group Inc. – up more than 2500% during the last 5 years.
There are many companies working in the cannabis industry however you can get exposure to the whole industry with the help of an ETF called: AdvisorShares Pure Cannabis ETF / Ticker: YOLO. This exchange-traded fund focuses on companies primarily located in the U.S. and Canada. To get more information regarding what is an ETF click here.
YOLO ETF seems like a great buy right now. It has risen almost 40% during the last 6 months despite the pandemic and considering the great news that we are hearing regarding legalization all over the world we are expecting YOLO shares to bring its investors pretty good results in the years to come.