Cannabis ETFs: what are cannabis investment funds, and how do they work?


Modified on: 19/04/2024


The pursuit of such a profitable financial activity requires the selection of companies with sufficient future growth margins. In this case, the legal marijuana market proves to be one of the most interesting, not least because of the various advantages it offers, which are confirmed by scientific studies and research.

In just a few years, these companies have experienced enormous growth and have even achieved triple-digit sales figures. It is a significant step forward: registers of companies specialising in products such as Cannabis CBD or CBD derivatives registered on the stock exchange show that taboos concerning marijuana are slowly disappearing.

Many believe, based on what has been said, that investing in this sector can lead to significant earning opportunities, as the medium is in full development and probably destined for broader distribution.

It is why they choose “ETF marijuana”, i.e. investment funds for companies (Exchange-Traded Fund) dealing with legal hemp at different levels.

Here at JustBob, a company that deals with CBD cannabis and 100% legal products, we have decided to delve deeper into this issue related to legal weed for our readers, who see in this plant not only a leisure aspect but also a possible investment interest.

ETFs on marijuana: what are they about?

ETFs on marijuana: what are they about?

In financial terms, ETFs are passively managed investment funds, as the deposit of your money is shared with other investors.

The first time the marijuana market officially entered the financial world was in 2017.

This ETF is known as “Medical Marijuana Life Sciences” and contains 16 shares of companies specialising in medical marijuana.

Another already very popular ETF comes from the US and is known as the Horizons Marijuana Life Sciences Index ETF.

This ETF includes some of the best known and most profitable companies, such as Aurora Cannabis.

This Canadian-born group is one of the pioneers in the industry, manufacturing cannabis products for medical and recreational purposes. Of course, cannabis use is legal.

Analysts’ estimates of CBD buds or cannabis investment funds are very optimistic: within 10 years, the market could reach a value of 50 billion dollars.

Read also: Marijuana Games: The top 5 according to Google Play!

ETFs on marijuana: a turning point for Europe

2020 has also been an exciting year for Europe, with the first ETF listed in Germany, available to investors from Italy, the UK and Ireland.

Under the name “Medical Cannabis and Wellness ETF” are represented mainly companies whose activity is related to the world of legal and medical cannabis.

Here too, this market is expected to grow significantly in Europe, as products such as the CBD oil sativa for dogs are also very successful (product also available in our online shop here on JustBob).

ETFs on marijuana: a turning point for Europe

ETFs on marijuana: how do they work? Are they practical?

The cannabis market is destined to grow, as mentioned above, as it is still young and offers many opportunities to conquer the major world markets.

Most experts strongly recommend targeting ETFs on marijuana rather than on the actions of individual companies.

The reason for this is that most of these companies are based in Canada and parts of the US. There, the regulations are regularly being updated. It means that new governments may decide that marijuana can no longer be used for recreational purposes, which is bad for business.

On the contrary, investing in ETFs may be the simplest way if you want to make some money with investments without taking undue risks. It is also an interesting way to follow developments and movements in the cannabis industry, whether it is medical or legal marijuana.

Recent figures have shown that cannabis investment funds have attracted the interest of many people; in some cases, profits have reached over 150%.

Read also: CBD cannabis: average price and top quality. The best value selection at JustBob

Science Horizons and medical marijuana: a look at the ETF

One of the most popular and best-known ETFs is Horizon Medical Marijuana Life Sciences. Starting with a bang, it has achieved considerable liquidity with a trading volume of around one million shares per day.

This particular investment fund works like this: The top six listed companies have a weighting of 60%, the others about 11%.

What makes this ETF so popular with investors is the presence of many start-ups with obvious growth ideas and fairly good future prospects.

Thanks to the listing of an ETF in Europe, we too in Switzeland can have the opportunity to trade in securities of companies that contribute to the distribution of natural products and which, thanks to the CBD, have apparent positive effects on consumers.

For those interested in the cannabis products on which the future growth in the value of ETFs depends, you can get a very clear picture here at JustBob by visiting the shop.

We are a CBD online shop offering a wide range of CBD products from CBD oil and CBD flowers to CBD hash, combining quality and variety. In this way, we try to meet the needs of our customers, by quickly and easily purchasing all related CBD products from JustBob.