Quote:
Originally Posted by lewdog
Outside of that, the marijuana market is still very risky with tons of competitors looking to make a splash, no major standouts. Hence me wanting an index or ETF to be slightly less risky while still investing in that sector.
|
This is another concern I have about investing in that area outside of an etf. There are so many players, even if the industry eventually has widespread legalization, you could pick the wrong company and lose your investment.
Even an extremely broad etf will participate in the loser's losses. Will the gains by the winners be enough to offset these losses enough to make it a worthwhile investment?
That's rhetorical, as there is no etf that encompasses the industry yet. I did see a fund company that lets you create your own etfs, and if others buy it you earn a commission. But that hearkens back to the other issue, none of these companies are tradeable outside of legal jurisdictions.