Amplify
News

Both strides and setbacks have punctuated the quest for federal legalization of cannabis in the U.S. So far, 38 states have legalized marijuana for medical use.

For investors, all the legal back-and-forth regarding cannabis makes for murky profit opportunities. Unsure of how the marijuana market will evolve or even where the market stands right now, many investors are simply sitting on the sidelines.

For these reasons, some industry insiders believe “the asset class itself, from an investor’s perspective, is very similar to emerging markets,” says Tim Seymour, portfolio manager of the Amplify Seymour Cannabis ETF (CNBS). Like investing in emerging markets, cannabis investing is high growth and high risk. In addition, there is very little liquidity and “major restrictions upon investing in the sector,” he says.