Put This Marijuana ETF in Your Pipe and Smoke it

The cannabis sector is one which has seen a significant amount of volatility in recent months, with most of the volatility to the downside for investors. With many now wondering if the overall sector has bottomed and if now is a good time to get into these stocks. I’m going discuss one Exchange Traded Fund (ETF) that tracks this sector, the Horizons Medical Marijuana Life Sciences ETF (TSX:HMMJ).

This ETF is perhaps the best way to investors to play this sector for those inclined to do so, as I’ve indicated n the past, due to the excellent diversification this fund provides at a reasonable management expense ratio (MER). The ETF includes cannabis producers as well as a range of secondary and tertiary businesses either supplying producers or developing downstream products from cannabis inputs. Having a much more diversified approach to the value-added businesses in this sector is obviously beneficial.

Various producers such as Canopy Growth Corp. (TSX:WEED)(NYSE:CAC) recently announced earning beats, despite concerns around a lack of demand and supply constraints related to government store rollouts across the country. With medical sales outperforming, I see some upside on this business alone. At these levels, this sector is becoming more attractive so for those interested in cannabis investing, I’d recommend this ETF as a great option.

Invest wisely, my friends.