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The global, legal cannabis sector is currently estimated to be $13.5 billion and is expected to grow at a 26.7% annual rate until 2028. Growth drivers for cannabis are its legalization at the state level, increased use and acceptance, and growing applications in terms of recreational and medicinal use.
Despite this potential and these catalysts, investing in cannabis hasn’t been as smooth and profitable as other growth sectors in part due to the volatility and abundance of low-quality companies. For example, the ETFMG Alternative Harvest ETF (MJ) is up about 16% over the last year. However, it’s also down more than 50% since its high in February 2021.
