5 Top Performing Stocks Of Marijuana ETF

The cannabis-related ETFMG Alternative Harvest ETF (MJ  - Free Report) topped the list of the best performing ETFs of January, with impressive returns of about 41%. It also attracted $100.1 million in the capital in the first month of 2019.

The surge was driven by renewed appeal for riskier assets and Trump's $867 billion Farm bill, legalizing cannabis products derived from hemp in America, including products containing cannabidiol (CBD). Additionally, a string of strong earnings and upbeat guidance from the pot companies added to the strength.

Canadian legalization for recreational marijuana continued to spread optimism in the space and pave the way for widespread legality. Recreational marijuana is expected to be legal soon for adults over the age of 21 years in New York while the European nation of Luxembourg in late November announced that marijuana would soon be legalized for recreational use by adult residents. All these developments have spurred a large number of deal activities, including mergers and acquisitions in the industry.

In particular, a number of alcoholic beverage companies are investing in or partnering with cannabis producers. Among the latest deal, Aurora Cannabis agreed to buy Whistler Medical Marijuana Corp. in a stock deal valued at up to C$175 million ($131.8 million). Canopy Growth (CGC - Free Report) plans to invest up to $150 million in New York to target the emerging market for cannabis products derived from hemp and CannTrust (CNTTF - Free Report) plans to list its shares on the New York Stock Exchange. Meanwhile, Marlboro cigarette maker Altria Group (MO - Free Report) is mulling over acquisition of Canadian cannabis firm Cronos Group (CRON  - Free Report).

As a result, the pot industry is emerging and poised for rapid growth in the years ahead. Per an analyst at Cowen, the U.S. legal cannabis industry is expected to reach $80 billion in sales by 2030, surpassing the carbonated soft drink market in 2017. An analyst at Haywood Securities foresees exponential growth in cannabis stocks with the U.S. cannabis market expected to be worth between $15.9 million and $21.7 billion by the year 2022.

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