New ETFs are continually being brought to market as new niche ideas of capitalizing on an industry are being developed daily. But, not only are new ETFs the only ones that are worth looking at, older, more established ETFs which you may have forgotten about are also good to follow up on and even add to your watchlist. With that in mind, from time to time, I like to point out new and old ETFs that I come across which interest me and may intrigue others.
Today, let us look at one new ETF, one old ETF, and one ETF that is not yet trading but will soon be available for purchase.
The new Exchange Traded Fund is the AdvisorShares Pure US Cannabis ETF (MSOS). I know what you are thinking, just another marijuana ETF. Well, yes and no. This is a marijuana ETF; however, unlike all the other marijuana ETFs available before this one, all U.S. ETFs is the first. The others had, in large part, Canadian cannabis companies. This ETF only holds U.S. based firms. This ETF debuted on September 1st, 2020. It has an expense ratio of 0.74%, which is not cheap, but also not terribly outrageous. It currently has just $11 million in assets, but that should grow with time. We have no performance history on the ETF since it is so new, but the marijuana industry has struggled over the last few years. With that being said, this is a new ETF, so it comes with a clean slate, but we shouldn't expect it to boom in the short term unless we have major progress in the industry, as in more states passing marijuana as a legal substance. With that said, now would be a good time to get involved with this type of investment, as we are expected to have more states legalizing the drug in the next few years. Continue reading "3 Interesting ETFs To Take Closer Look At"