The top-performing ETF in 2021 so far is the Global X Cannabis ETF .Visit the Business section of Insider for more storiesThe numbers speak for themselves: If you own a cannabis exchange-traded fund in 2021, your returns are looking quite handsome.in the world this year by performance are focused on the cannabis industry, as more states legalize the drug for recreational use. on positive earnings, new distribution deals, and the increasingly rosy outlook for the regulatory landscape.
"Right now we're really seeing many years of speculation and hope for positive news in regard to the cannabis industry in the US and around the world really coming to a head," Andrew Little, an analyst for Global X's cannabis ETF , told Insider on Tuesday.
So far, the federal ban on marijuana has meant hurdles for the industry in terms of their ability to conduct pharmaceutical research, access the federal banking system, and grow, Little said.
But because of the strong performance of cannabis stocks in recent days and weeks, Little warned that a pullback in the sector in the short-term is possible. He also said that the hype around cannabis could create a dot-com-style bubble that could end up leaving some companies and investors behind. So we asked Little for his highest-conviction picks in the industry. He shared the three names that are"poised to be market leaders" in the years ahead, and that have the infrastructure to hit the ground running if and when marijuana is legalized federally.Little said he likes firms based in Canada, where marijuana is legal, because of the infrastructure they've been able to build out and the acquisitions they've been able to make.
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