Money has flooded the first publically traded marijuana ETF on the New York Stock Exchange (NYSE). In their prospectus, ETFMG Alternative Harvest ETF is explicit about the risk.
Marijuana legalization is a soaring trend of 2018. North of the border, Canada is preparing for a nationwide legalization that would see billions in revenue generated. California legalizing on Jan. 1 added more momentum to the growing trend.
Many now see the marijuana industry as a prime investment opportunity.
Recently, the ETFMG Alternative Harvest ETF became the first publically traded marijuana ETF on the New York Stock Exchange. In their prospectus released in December, they are clear about the risks associated with investing in their fund.
While the risks are specific to their ETF, they can also be applied to future ETFs released on NYSE.
Check out the infographic providing seven risks from that prospectus that can be applied to the future industry.