What is eToro’s CannabisCare CopyPortfolio and can it really weed out decent cannabis stocks?

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eToro is giving investors the chance to bet on the rapidly growing medical marijuana market via it’s CannabisCare CopyPortfolio

Etoro has set its sights on what it believes is one of the most ‘intriguing markets’ around – medical marijuana. It might be controversial, but the market is booming and the platform clearly believes this is an area with enormous potential.

Can Medical Marijuana be worth $50bn by 2025?

Etoro’s CannabisCare CopyPortfolio invests in a range of different companies which are getting involved with the medical marijuana space. They include names such as:

  • AbbVie produces a marijuana-based drug called Marinol which treats the loss of appetite and weight loss associated with HIV and cancer.
  • GW Pharmaceuticals which was the first company to be given approval for a cannabis-based drug with Sativex which treats multiple sclerosis.
  • Aurora Cannabis INC, a Canadian company which produces cannabis oils and flowers.

The portfolio spreads across all these different companies giving investors a balanced exposure to the various sectors of the industry. It includes those which are already selling legal cannabis-based medications as well as those which are developing new treatments or legally growing the marijuana plant. Users can quickly get involved through Etoro’s platform with just one click.

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Stellar growth potential for Cannabis stocks?

It’s not hard to see why Etoro has taken a look at this sector. A study from Grand View Research suggests the global legal marijuana market could be worth almost $150 by 2025 growing at 34.% annually.

It is helped by an increasingly benign environment in which public opinion is shifting. Roughly 85% of Americans support the legalisation of cannabis for medical purposes. Research is building a body of evidence and legislators are paving the way for growth. Canada and the US have been particularly active with the rest of the world following in their footsteps.

Cannabis will always be a politically sensitive drug, but opposition is slowly crumbling as people gain a wider understanding of how it can be used in medicine. Donald Trump – to the surprise of many – has signalled a willingness to support legislation which could legalise medical marijuana, although he has also threatened to change his mind.

Even so the stage is set for rapid growth. This is a sector in which there is a huge amount of research underway, but which remains in the early stages of development. As such, the rewards, as well as the risks, could be substantial.

Below is a screen shot of the eToro CannabisCare CopyPortfolio so far:

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Tom Cropper is a financial journalist with work which has appeared in titles such as the Guardian, Euromoney and many others.