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The legal cannabis industry is expected to grow from $55 billion to $146 billion by 2025 - 265% growth in five years.
Some take that as a signal to go invest in the whole industry through cannabis ETFs.
That's creating a hot new industry of its own, as more and more companies are releasing their own index fund products.
On Aug. 20, AdvisorShares, the company behind the AdvisorShares PureCannabis ETF (NYSE: YOLO), filed for yet another cannabis ETF.
It's called AdvisorShares U.S. Cannabis ETF, and it will trade on the NYSE under the ticker MJUS. And with MJUS, there will be six cannabis ETFs on the market.
These are attractive investments because they can significantly hedge losses. Typically, people lunge for the whole market because it can be difficult to pinpoint exactly which stock to buy.
But sometimes, if you hastily throw all of your money at an ETF, you run the risk of being a jack of all trades and master of none - or worse, taking a big loss.
The Next American Aristocracy is expected to be fueled by today's cannabis boom. If you take advantage now, you could enjoy the kind of wealth "that lasts generations." Click here to see for yourself...
In fact, this could have easily happened to you in the last year. The ETFMG Alternative Harvest ETF (NYSEArca: MJ), one of the most talked-about, diversified cannabis ETFs out there, has lost 38% since October 2018.
And this is actually no surprise with marijuana ETFs, since the industry is still young and unpredictable, with so many new players popping up.
Warren Buffett put it aptly: "Put all your eggs in one basket and watch that basket very carefully."
But of course, carefully keeping track of all the cannabis stocks out there can be a challenge on your own. And that's why there's expert advice from the National Institute for Cannabis Investors to keep you informed.
NICI's Director of Cannabis Investing Research, Greg Miller, recommended one pot stock last year that's already grown 107% since October 2018.
Compare that to MJ's losses.
But our top pot stock is just getting started. In fact, Greg Miller still gives it a further 193% growth target for the next 12 months.
To put that into perspective: The marijuana industry is set to grow 265% in five years. But our best marijuana stock today could jump nearly 200% in 12 months.
This is not one of your big-name cannabis stocks either. While we like Aurora Cannabis Inc. (NYSE: ACB), Tilray Inc. (NASDAQ: TLRY), and Canopy Growth Corp. (NYSE: CGC), you've already heard all about them.
Our best marijuana stock is a backdoor play you might not have heard of yet.
With all the social and bureaucratic hurdles in the way of this industry, it could be a matter of months or years waiting for ETFs to start realizing profits. But this pot stock is spearheading profitability while the rest of the market takes its time.
Here's why this legal marijuana stock will gain 193% without question...
The Best Cannabis Stock Right Now
About the Author
Mike Stenger, Associate Editor for Money Morning at Money Map Press, graduated from the Perdue School of Business at Salisbury University. He has combined his degree in Economics with an interest in emerging technologies by finding where tech and finance overlap. Today, he studies the cybersecurity sector, AI, streaming, and the Cloud.