Cannabis stocks, while still carrying volatile risks, have been booming recently as mainstream investors have started flocking to the sector particularly after Canada passed the Cannabis Act and with the establishment of October 17th as the first G7 nation to end marijuana prohibition. Individual stocks like Canopy Growth and Tilray (full disclosure: I own a few shares of each) have dramatically increased in value over the last month. In addition to individual stocks, investors have seen cannabis exchange-traded funds (ETFs) increase in value as well.

ETFs are similar to mutual funds, but they are traded like common stocks on financial markets. One Canadian cannabis ETF became the first such fund to hit C$1 billion in assets, as Bloomberg reported:

The Horizons Marijuana Life Sciences Index ETF’s total assets have grown to more than C$1 billion as shares rallied 124 percent since its April 2017 debut on the Toronto Stock Exchange. It’s the first cannabis-focused fund to break the billion-dollar mark. Known by its ticker HMMJ, the ETF has benefited from burgeoning investor demand for pot stocks.

“HMMJ’s growth has far exceeded our expectations as investors have strongly supported the sector in anticipation of Canada’s upcoming recreational marijuana legalization,” Horizons Chief Executive Officer Steve Hawkins said in a statement. Canada will legalize recreational use on Oct. 17.

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Pot stocks have been surging since mid-August, when Corona beer maker Constellation Brands Inc. invested C$5 billion in Canopy Growth Corp., a signal that mainstream companies are beginning to see the potential in cannabis. Canopy, the second-largest holding in HMMJ, has seen its stock price more than double since the deal was announced. HMMJ has gained 54 percent over the same period.

As I’ve disclosed, I own some stock in cannabis companies, but am no means a big or wise investor, however, it doesn’t take a financial wizard to see that the cannabis industry has the potential to be a huge market. It is tough telling which businesses or funds are going to flourish, so due diligence must be conducted, but with Canada legalizing commerce this October, more states poised to improve laws this November, and positive momentum around the globe, there certainly appears that there are financial opportunities to be seized.

Learn the latest about the cannabis industry and network with top investors and entrepreneurs at the International Cannabis Business Conference this September 27th-28th, in Portland, Oregon. Get your tickets by September 12th to save $200!