The Bull Case for Owing This Pot ETF

I've been overly bearish on the future of the publicly-traded cannabis sector for a long time, and rightfully so. The hype was nauseating, and the valuations made absolutely no sense. With the hype obviously having died down and the valuations of many cannabis majors now reset at lower, more reasonable, levels now may be a good time to revisit this sector.

The main Exchange Traded Fund (ETF) tracking the legal cannabis sector is the Horizons Medical Marijuana Life Sciences ETF (TSX:HMMJ). This ETF is composed of a broad group of (mainly) cannabis producers, but also companies supplying products to support the cannabis sector.

Those who believe we could be in for a rally in the high growth, speculative sectors such as cannabis have a good case for owning this ETF. In fact, this ETF is the only way I would play the sector right now. I view the industry broadly as still being in its infancy, with no idea or no idea on which company will ultimately become the industry leader of yet.

This ETF does a good job of providing investors with a decent degree of diversification at a reasonable price. So for those with a higher risk tolerance looking to play the cannabis sector, this would be the vehicle to do so, in my view.

Invest wisely, my friends.