Over the last year, marijuana stocks have been incredibly profitable, with industry leaders jumping well over 100%.
It's not all that surprising.
Think of the events we've witnessed so far this year.
The full legalization of recreational marijuana in Canada. Billion-dollar investments by the nation's largest spirit companies in marijuana firms. Marijuana legalization on at least eight states' ballots this fall.
We're witnessing the birth of a potential $1 trillion industry.
But with so many profit opportunities on the table, it's incredibly difficult to tell which investments are going to yield the best returns.
That's why we've identified one marijuana ETF that will give savvy investor exposure to a wide range of investment opportunities in the marijuana industry.
You see, marijuana ETFs allow an investor to "track" the entire marijuana industry without having to buy the individual stocks.
As a result, we can benefit from any spike in marijuana stocks and limit our potential risk since all of our investments won't be in one company.
Plus, when you consider the sheer breadth of the marijuana industry, this ETF is the easiest way to profit from the explosive growth ahead…
The Top Marijuana Stocks Are Still Expensive
The numbers are astounding.
Cannabis start-up Tilray Inc. (NASDAQ: TLRY) has risen an astonishing 631% in the last ten months.
Meanwhile, the marijuana cultivation supplier Canopy Growth Corp. (NYSE: CGC) is up 132%.
And in just the last two months, Aurora Cannabis Inc. (OTCMKTS: ACBFF) is up an astonishing 173%.
Former Speaker of the House: "Forget Canada, American Cannabis Is Where the Action Is Going to Be" – Click Here Now
While these gains are exciting, the stocks are also sitting at breathtakingly high valuations. While they are some of the best pot stocks on the market, you might not be getting the best value for your money by buying in today.
The price-to-sales ratio (PS) shows the value of each dollar of a company's sales revenue. PS ratios relative to industry averages can tell us if a company is over- or undervalued.
Canopy Growth, which is valued at $11.4 billion, currently trades at a PS ratio of 132.
Aurora Cannabis, valued at $9.2 billion, has a PS of 106.
For leading businesses in their sector, these PS ratios are incredibly high.
With such high valuations, the most promising marijuana stocks are the most expensive right now.
But other, lesser-known marijuana stocks may be too risky to pour our money into right now.
But by using marijuana ETFs, we can still get in on the action while limiting our risk and gaining exposure to the entire marijuana market.
And this is the best marijuana ETF to own right now…