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Marijuana & Blockchain ETFs: Should You Buy?

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  • (1:00) - What Can Investors Expect From The Legal Cannabis Market?
  • (4:45) - The Cannabis ETF by Innovation Shares: THCX
  • (12:50) - Innovation Shares NextGen Protocol ETF: KOIN
  • (17:20) - How Do These ETFs Fit Into An Investors Portfolio?
  •                 Podcast@Zacks.com

In this episode of ETF Spotlight, I speak with Matt Markiewicz, Managing Director at Innovation Shares.

We start with the case for investing in marijuana stocks. Some have compared it to investing in alcohol post-Prohibition. According to Barclays, the US cannabis market would be $28 billion if legalized today, growing to $41 billion by 2028. But these stocks are very volatile.

Recreational use of marijuana is legal in 11 US states and the District of Columbia. Illinois became the latest state to legalize recreational use effective January 1, 2020. Medical use of cannabis is legal in in 33 states, but it remains illegal at the federal level.

The Cannabis ETF (THCX - Free Report) provides exposure to a basket of stocks that are expected to benefit from growth of the hemp and legal marijuana industries. Please visit THCXetf.com to learn more about this ETF.

Tilray (TLRY - Free Report) , Cronos (CRON - Free Report) , Aurora Cannabis (ACB - Free Report) and GW Pharmaceuticals (GWPH - Free Report) are its top holdings.

There are four more pot ETFs on the market now—ETFMG Alternative Harvest ETF (MJ - Free Report) , AdvisorShares Pure Cannabis ETF (YOLO - Free Report) , Amplify Seymour Cannabis ETF CNBS and Cambria Cannabis ETF TOKE. Three of these—YOLO, CNBS and TOKE--are actively managed.

How is THCX different from other pot ETFs?

Blockchain ETFs have seen some revival of investor interest over the past few months, with the rise in bitcoin prices. The Innovation Shares NextGen Protocol ETF (KOIN - Free Report) focuses on companies involved with blockchain technology. Its top holdings are Taiwan Semiconductor (TSM - Free Report) , Intel (INTC - Free Report) and Nvidia (NVDA - Free Report)

Tune into the podcast to learn more about these ETFs.

Make sure to be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email podcast@zacks.com.

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