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Cannabis ETF (CNBS) Hits New 52-Week High

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For investors seeking momentum, Amplify Seymour Cannabis ETF (CNBSis probably on radar. The fund just hit a 52-week high and is up 351% from its 52-week low of $6.48 per share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed.

CNBS in Focus

CNBS is actively managed ETF offering exposure in the fast-developing global cannabis industry. It invests 80% of its assets in securities of companies with 50% or more of their revenues from the cannabis and hemp ecosystem. The fund charges 75 bps in annual fees (see: all the World ETFs here).

Why the Move?

Marijuana stocks started February on a strong note. The latest surge came on the heels of the news that three Democratic senators led by Majority Leader Chuck Schumer said they would make reform legislation a key consideration in the current Congress, boosting hopes for a federal legalization.

More Gains Ahead?

The fund has a positive weighted alpha of 187.01. So, there is a decent outlook ahead for those who want to ride this surging ETF a shade further.

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