Marijuana index funds

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InvestorNewb
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Marijuana index funds

Post by InvestorNewb »

Hello,

In 2014 it will be legal to buy marijuana in Colorado. I think this will be the start of the legalization of the drug across the US, and maybe Canada too.

I'm sure this will come off as a stupid question, but are there any index funds that only have marijuana companies?
My Portfolio: VTI [US], VXUS [Int'l], VNQ [REIT], VCN [Canada] (largest to smallest)
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LowER
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Re: Marijuana index funds

Post by LowER »

I'm going to wait until the smoke clears 8-)
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Gort
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Re: Marijuana index funds

Post by Gort »

InvestorNewb wrote:
I'm sure this will come off as a stupid question
Yep.
BanditKing
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Re: Marijuana index funds

Post by BanditKing »

There's always this one ... :)

http://en.wikipedia.org/wiki/Vice_Fund

(which is arguably a pretty [poor --admin LadyGeek] fund anyways)
columbia
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Re: Marijuana index funds

Post by columbia »

Since they are violating federal laws, it seems unlikely.
MnD
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Re: Marijuana index funds

Post by MnD »

There are numerous single company plays to invest in weed. I'd guess an index fund is less than 12 months out.
In Colorado the medical pot retailers are the ones being granted the general retail licenses come January 1.
So basically an investment in "medical" pot is a proxy for the end of prohibition on pot for all.

http://www.thcbiz.com/marijuana-stocks. ... zl0nx.dpuf
Market data is delayed at least 15 minutes.
CBIS 0.03 ▼0.0027 (-7.71%)
CTH.V CA$0.43 ▼0.020 (-4.44%)
EDXC 0.06 ▲0.0030 (5.00%)
ENDO 0.02 0.0000 (0.00%)
ERBB 0.00 ▼0.0001 (-8.33%)
EXMT 0.00 0.0000 (0.00%)
CANN 1.81 ▼0.19 (-9.50%)
CANV 16.20 ▲0.20 (1.25%)
FSPM 0.27 ▲0.040 (17.39%)
GRNH 0.03 ▼0.0022 (-6.94%)
GWP.L GBX165.50 ▼4.75 (-2.79%)
HEMP 0.01 ▲0.0002 (1.77%)
MCIG 0.09 ▼0.0110 (-10.48%)
MDBX 16.00 ▼1.75 (-9.86%)
MJNA 0.11 0.000 (0.19%)
MWIP 0.02 ▲0.0010 (6.25%)
NVLX 0.13 ▼0.001 (-0.62%)
PHOT 0.09 ▲0.0015 (1.70%)
PLPL 0.48 ▲0.020 (4.35%)
PUGE 0.75 ▲0.023 (3.17%)
RIGH 0.00 0.0000 (0.00%)
RFMK 0.00 ▼0.0001 (-33.33%)
SKTO 0.01 0.0000 (0.00%)
TRTC 0.09 ▼0.0030 (-3.33%)
http://www.thcbiz.com/marijuana-stocks. ... zl0nx.dpuf
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mhalley
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Re: Marijuana index funds

Post by mhalley »

While it goes against the Bogleheads philosphy, there are some individual stocks out there that are involved with the cannabis industry.

http://marijuanastocks.com/content/list ... ana-stocks

A list of the "best" pot stocks:

http://investorplace.com/2013/11/best-m ... ocks-mjna/

A cautionary note regarding potential scams:

http://www.cnbc.com/id/101134656

I guess you could always invest in MO, hasn't there been a rumor around for years that they copywighted names such as Acapulco Gold etc?
http://beta.fool.com/takeoveranalyst/20 ... cks/23401/
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cheese_breath
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Re: Marijuana index funds

Post by cheese_breath »

Wouldn't a marijuana index have to be established first so the mj index funds would have something to track to?
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Tyr0ne
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Re: Marijuana index funds

Post by Tyr0ne »

InvestorNewb,
You may want to check out Motif Investing, an interesting start up broker that tries to bundle stocks based on hot trends or industries/corners of the market that people like to speculate about. If they don't have a basket now, I'm sure they will soon.
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MnD
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Re: Marijuana index funds

Post by MnD »

At the end of the year I predict there will be a mini-mania in a number of pot stocks.
The New Years press coverage is going to be non-stop and there will be plenty of analogies drawn to the beginning of the end for pot prohibition.
But which of the few $10 stocks will go to $100 and which of of the penny stocks will go to $5?
That's the hard part........ 8-)

I think the eventual winner is going to be big tobacco.
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The Wizard
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Re: Marijuana index funds

Post by The Wizard »

This would be a SECTOR fund, not an Index fund, folks...
Attempted new signature...
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ofcmetz
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Re: Marijuana index funds

Post by ofcmetz »

Gort wrote:
InvestorNewb wrote:
I'm sure this will come off as a stupid question
Yep.
plus 2
Never underestimate the power of the force of low cost index funds.
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tadamsmar
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Re: Marijuana index funds

Post by tadamsmar »

The Wizard wrote:This would be a SECTOR fund, not an Index fund, folks...
What are you smoking? Any cap-weighted fund is an index fund even if it is a sector fund.
ML 59
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Re: Marijuana index funds

Post by ML 59 »

A Home Delivery Pizza Index will follow shortly.

Ticker: VHDPI ( .1416ER )
newtonc
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Re: Marijuana index funds

Post by newtonc »

Right after the Bryer's Ice Creme!
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3CT_Paddler
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Re: Marijuana index funds

Post by 3CT_Paddler »

A great business and a great stock are many times not one and the same. And if any single 'pot' company gets large enough there is large systematic risk that the Feds shut it down.
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SquawkIdent
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Re: Marijuana index funds

Post by SquawkIdent »

ofcmetz wrote:
Gort wrote:
InvestorNewb wrote:
I'm sure this will come off as a stupid question
Yep.
plus 2
Plus 3
core5
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Re: Marijuana index funds

Post by core5 »

Philip Morris has beaten the S&P 500 by about 100% in the last 5 years, so I'd say it's not without potential.
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Phineas J. Whoopee
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Re: Marijuana index funds

Post by Phineas J. Whoopee »

Let's take a pause to reflect.

Marijuana is a commodity. The first thing we should expect to see is potstickers futures.

Owning a company which produces, processes, transports or sells gold marijuana is not the same as owning the gold marijuana itself. Furthermore, unlike mined AU, harvested MJ will not last forever unchanged. It resembles sorghum more than noble metals. Also unlike gold, marijuana breeds marijuana. It is not sterile. It is an investment with an expected return.

With the federal government using its prosecutorial discretion not to go after recreational users in Colorado and Washington, wouldn't we expect it to do the same if New York legalizes trading in pot derivatives?

Caution is warranted: one administration's prosecutorial discretion may become the next's moral panic.

PJW
Last edited by Phineas J. Whoopee on Thu Dec 05, 2013 5:55 pm, edited 2 times in total.
3504PIR
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Re: Marijuana index funds

Post by 3504PIR »

The sector ETF for this is HIGH
MnD
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Re: Marijuana index funds

Post by MnD »

Standardized THC level laced liquids or waxes for vaporization in E-doobie (vape pen) devices should be a major beneficiary of legalization.
People wouldn't trust such a product bought through the illegal market but it should do very well at the regulated retail level.
Little or no smell, far more concealable and fewer health concerns. They are already being sold in the medical pot retail channels.
But again, how does one translate that into a profitable investment.......

The nightclub district of our city has a take-out restaurant that sells only made to order gourmet hand-cut french fries with many different sauces.
They should do very well after Jan 1. :mrgreen:
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Phineas J. Whoopee
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Re: Marijuana index funds

Post by Phineas J. Whoopee »

MnD wrote:Standardized THC level laced liquids or waxes for vaporization in E-doobie (vape pen) devices should be a major beneficiary of legalization.
People wouldn't trust such a product bought through the illegal market but it should do very well at the regulated retail level.
Little or no smell, far more concealable and fewer health concerns. They are already being sold in the medical pot retail channels.
But again, how does one translate that into a profitable investment.......

The nightclub district of our city has a take-out restaurant that sells only made to order gourmet hand-cut french fries with many different sauces.
They should do very well after Jan 1. :mrgreen:
One could short dark alleys. Even short dark alleys could be shorted. Or, one could develop technology to brighten alleys, anticipating that the NIMBY voters will drop their objections.
PJW
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Dutch
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Re: Marijuana index funds

Post by Dutch »

Buy White Castle stock :D
MnD
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Re: Marijuana index funds

Post by MnD »

Dutch wrote:Buy White Castle stock :D
And Frito Lay.
Short Nike. They are changing their logo in the Colorado and Washington markets [OT logo removed by admin LadyGeek]
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leonard
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Re: Marijuana index funds

Post by leonard »

Index fund?

I think you have to roll your own.
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Dutch
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Re: Marijuana index funds

Post by Dutch »

On a slightly more serious note:

I'm not sure the total number of users will increase with legalization. This did not happen in my native country. So, related industry (like the munchies) would not necessarily see an increase.
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climber2020
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Re: Marijuana index funds

Post by climber2020 »

Dutch wrote:On a slightly more serious note:

I'm not sure the total number of users will increase with legalization. This did not happen in my native country. So, related industry (like the munchies) would not necessarily see an increase.
This is a good point. All the people I know who are really excited about this are already smoking on a daily basis without too much concern for any legal barriers.

Plus, most of Colorado has been pretty relaxed about this from a law enforcement standpoint for many years already.
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InvestorNewb
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Re: Marijuana index funds

Post by InvestorNewb »

SquawkIdent wrote:
ofcmetz wrote:
Gort wrote:
InvestorNewb wrote:
I'm sure this will come off as a stupid question
Yep.
plus 2
Plus 3
It wasn't a stupid question after all; some of the responses have been pretty good actually. [OT comment removed by admin LadyGeek]
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John3754
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Re: Marijuana index funds

Post by John3754 »

core5 wrote:Philip Morris has beaten the S&P 500 by about 100% in the last 5 years, so I'd say it's not without potential.
Tobacco is not a schedule 1 narcotic by federal law...
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Re: Marijuana index funds

Post by LadyGeek »

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