An ETF is a basket of securities that you can buy or sell through a brokerage firm on a stock exchange. ETFs are offered on virtually every conceivable asset class from traditional investments to so-called alternative assets like commodities or currencies. In addition, innovative ETF structures allow investors to short markets, to gain leverage, and to avoid short-term capital gains taxes.

Types of ETFs:
* Market ETFs: Designed to track a particular index like the S&P 500 or NASDAQ
* Bond ETFs: Designed to provide exposure to virtually every type of bond available; U.S. Treasury, corporate, municipal, international, high-yield and several more
* Sector and industry ETFs: Designed to provide exposure to a particular industry, such as oil, pharmaceuticals, or high technology
* Commodity ETFs: Designed to track the price of a commodity, such as gold, oil, or corn
* Style ETFs: Designed to track an investment style or market capitalization focus, such as large-cap value or small-cap growth
* Foreign market ETFs: Designed to track non-U.S. markets, such as Japan’s Nikkei Index or Hong Kong’s Hang Seng index
* Inverse ETFs: Designed to profit from a decline in the underlying market or index
* Actively managed ETFs:Designed to outperform an index, unlike most ETFs, which are designed to track an index
* Exchange-traded notes:In essence, debt securities backed by the creditworthiness of the issuing bank; created to provide access to illiquid markets and have the added benefit of generating virtually no short-term capital gains taxes
* Alternative investment ETFs: Innovative structures, such as ETFs that allow investors to trade volatility or gain exposure to a particular investment strategy, such as currency carry or covered call writing.

How ETFs work:
An ETF is bought and sold like a company stock during the day when the stock exchanges are open. Just like a stock, an ETF has a ticker symbol and intraday price data can be easily obtained during the course of the trading day.

Unlike a company stock, the number of shares outstanding of an ETF can change daily because of the continuous creation of new shares and the redemption of existing shares. The ability of an ETF to issue and redeem shares on an ongoing basis keeps the market price of ETFs in line with their underlying securities. Although designed for individual investors, institutional investors play a key role in maintaining the liquidity and tracking integrity of the ETF through the purchase and sale of creation units, which are large blocks of ETF shares that can be exchanged for baskets of the underlying securities. When the price of the ETF deviates from the underlying asset value, institutions utilize the arbitrage mechanism afforded by creation units to bring the ETF price back into line with the underlying asset value.

Advantages of ETFs:
The appeal of ETFs to individual investors is:
* Buy and sell any time of the day: Mutual funds, in contrast, settle after the market close
* Lower fees: There is no sales load, however, brokerage commissions do apply
* More tax efficient: Investors have better control over when they pay capital gains tax
* Trading transactions: Because they are traded like stocks, investors can place a variety of types of orders (limit orders, stop-loss orders, buy on margin) which are not possible with mutual funds

Disadvantages of ETFs:
While superior in many respects, ETFs do have drawbacks, including:
* Trading costs: If you invest small amounts frequently, there may be lower-cost alternatives investing directly with a fund company in a no-load fund
* Illiquidity: Some thinly traded ETFs have wide bid/ask spreads, which means you’ll be buying at the high price of the spread and selling at the low price of the spread
* Tracking error: While ETFs generally track their underlying index fairly well, technical issues can create discrepancies
* Settlement dates: ETF sales are not settled for 2 days following a transaction; that means as the seller, your funds from an ETF sale are not technically available to reinvest for 2 days.

Investing strategies:
Once you have determined your investment goals, ETFs can be utilized to gain exposure to virtually any market in the world or any industry sector. You can invest your assets in a conventional fashion using stock index and bond ETFs, and adjust the allocation in accordance with changes in your risk tolerance and goals. You can add alternative assets, such as gold, commodities, or emerging stock markets. You can move in and out of markets quickly, hoping to catch shorter term swings, much like a hedge fund. The point is, ETFs give you the flexibility to be any kind of investor that you want to be.

Source:
https://www.fidelity.com/learning-center/investment-products/etf/what-are-etfs

#PersonalFinance #StockMarketInvesting #ETF #IndexFunds #QQQ #DGRO #FinancialFreedom

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There's little denying the potential that lies ahead for the cannabis industry. Depending on your preferred source, worldwide weed sales could grow between fivefold and 18-fold over the next decade. That should give long-term- investors plenty of opportunity to profit in the years ahead. The problem? Which stocks do you pick? Who will be the winners? Who will rise from the ashes? There are a ton of MJ-related stocks, and everyone seems to have their favorites. I’ve been investing in this space for 3 years, and I’ve spent countless hours researching companies. It’s important to note that every single company in the sector is speculative, and there really are no guarantees. My strategy is to pick the best 10-12 stocks and spread my money around to hedge risk. Today, I’ll be covering my top picks, which include 7 US-based companies and 3 Canadian companies. The Canadian picks are based off which companies are best positioned for Cannabis 2.0, so if you aren’t aware of what this is, you’ll definitely want to stay tuned. I also cover several bonus picks throughout the video, so I’ll be covering around 20 companies all together. Thats right, basically a Top 20. This video took a ton of time and effort, and I’m excited to share it with you, so without further ado, let’s get started! 

The information provided is for informational purposes only.  It should not be considered legal or financial advice.  You should consult with an attorney or other professional to determine what may be best for your individual needs.   The ideas and strategies provided should not be used without first assessing your own personal/financial situation, or without consulting a financial and/or tax professional. The topics discussed are solely my thoughts and opinions. Your continued reading/use of my YouTube Channel, blog, website, newsletters, Facebook group, Facebook page, and other materials constitutes your agreement with and acceptance of this disclaimer.

#PotStocks #WeedStocks #MarijuanaStocks #CannabisStocks #ACB #CGC #IAN
Best Marijuana Stocks, Best Cannabis Stocks, Top Marijuana Stocks, Top Pot Stocks, Best Weed Stocks

Aurora reported earnings on 9/11/2019, and the numbers were strong, but the stock is down 10% on 9/12/22019.  Why?  Let's dig into the Q4 2019 results and highlights, then discuss why shares are lower.  Is it a buy here?

I have been suggesting this stock since it was around $1 a share.  Aurora Cannabis, stock ticker ACB, formerly stock ticker ACBFF.  I bought this stock a few years ago for a cost basis of under $2 a share.  I have sold profits along the way, but I still ave a sizable position that I intend to hold long term. The nice thing is that all of the shares I own are now house money. I’ve already cashed out my initial investment plus around 450% profit, so I have zero risk with my position at this point.  With that said, I do think it’s easily a $10 stock with time, and it’s one that I see being around when the dust settles. Aurora was already a reputable medical marijuana company in Canada prior to recreation legalization, and they have grown enormously since.

Aurora has diversified itself geographically, by segment and by product, allowing it to reduce its risk exposure to recreational pot, which when demand is supplied in Canada, will cause enormous problems for the companies that don't have the alternative segments and markets Aurora does to supply.

The company easily has the largest number of markets it competes in globally, with a presence in 24 total countries. The company has also focused primarily on medical cannabis, which commands higher prices and margins, especially in Europe. While Aurora management has said it will continue to supply recreational pot for the Canadian market, it's not reliant upon it for long term growth. It has rapidly scaled its production capacity out while lowering costs, which will soon allow them to increase revenue while generating positive EBITDA. If you haven’t heard of Aurora Sky, it’s one of the largest largest marijuana grow facilities in the world. It’s an automated 800,000 square-foot plant in Alberta capable of producing 100,000 kilograms of cannabis annually. Based on an average size of 0.32 grams, that's about 313 million joints. Oh, and it’s located right next to the Edmonton International Airport, which is brilliant when you think about logistics and their global presence. In my opinion, Aurora will be the global marijuana leader, or at least one of the major players, in a couple of years. They have an outstanding CEO in Terry Booth, and they’ve simply made excellent strategic decisions time and time again. I’ve believed in Aurora for a long time, and they have exceeded my expectations to this point. If you don’t already own ACB, take a look, it’s something I’d want to own for the long haul.

The information provided is for informational purposes only.  It should not be considered legal or financial advice.  You should consult with an attorney or other professional to determine what may be best for your individual needs.   The ideas and strategies provided should not be used without first assessing your own personal/financial situation, or without consulting a financial and/or tax professional. The topics discussed are solely my thoughts and opinions. Your continued reading/use of my YouTube Channel, blog, website, newsletters, Facebook group, Facebook page, and other materials constitutes your agreement with and acceptance of this disclaimer.

#PotStocks #WeedStocks #MarijuanaStocks #CannabisStocks #ACB #AuroraCannabis #Legalization2.0

How can you capitalize on this secular growth trend without directly investing in pot stocks?

Here is the link to the survey, “Mary Jane’s Munchies”:
https://www.addictions.com/explore/mary-janes-munchies/

When trying to think long-term about your stock portfolio, it’s important to think outside of the box to ensure growth and outperformance. I’m always thinking of growth trends and thinking about companies that can benefit from these trends. Fringe plays can be an excellent way to benefit from a secular growth trend. One of the largest secular growth trends of our generation is, and will continue to be, legalized and recreational marijuana. Maybe you don’t want to invest in Aurora Cannabis, Planet 13, Canopy Growth, iAnthus, Trulieve, and Charlotte’s Web. Maybe you are a pure Dividend Growth Investor who simply cannot justify high risk companies with rich valuations. Maybe you already own pot stocks and want to diversity. Maybe you simply don’t invest in sin stocks. How can you try to capitalize and not invest directly in pot stocks? I have a great solution for you to consider. Today, we’ll discuss Blue chip companies that don’t sell any pot, but reap benefits as legalized marijuana expands. A recent survey from Addictions.com provides excellent insight into what people like to eat when the munchies strike. I’ve used the results from this survey to put together a solid list of DGI stocks. I’ll be covering 10 established, blue chip dividend growth stocks, as well as several bonus picks at the end, so please stay tuned. I’m excited to share these picks with you, so let’s get started!

Update on Peyton Manning and his Papa John’s stores:
https://www.cnbc.com/2018/03/07/peyton-manning-sells-his-papa-johns-franchises-before-split-with-nfl.html
Manning sold his stake in these Denver-area stores (31 stores) in 2018 after “six successful and rewarding years” of ownership. Legalization was approved in 2012 (the same year he bought) and recreational marijuana was available to the public in 2014. This primarily had to do with Papa Johns relinquishing its role as the official pizza of the NFL, giving the rights to Pizza Hut.

The information provided is for informational purposes only.  It should not be considered legal or financial advice.  You should consult with an attorney or other professional to determine what may be best for your individual needs.   The ideas and strategies provided should not be used without first assessing your own personal/financial situation, or without consulting a financial and/or tax professional. The topics discussed are solely my thoughts and opinions. Your continued reading/use of my YouTube Channel, blog, website, newsletters, Facebook group, Facebook page, and other materials constitutes your agreement with and acceptance of this disclaimer.

#dividend #stock #investing #potstocks #stockmarket #DividendGrowthInvesting #StockPicks

Portfolio rebalancing is important because it helps investors maintain target asset allocations. Rebalancing helps reduce “portfolio drift” and reduces exposure to risk outside of a desired, targeted asset allocation. 

What is Portfolio Rebalancing?
* The process of realigning the weightings (positions) in a portfolio of assets.
* Typically periodic buying and selling of assets to maintain an original or desired level of asset allocation or risk.
* Example = Your goal is 50% stocks and 50% bonds, but stocks outperform over a period of time, and now your portfolio is 70% stocks. This would need adjustment to maintain your asset allocation goals.
* The tricky part is how to allocate individual stocks within your stock bucket.
* First you need an overall investing plan. Then a rebalance method…

Two Methods to Rebalancing:
1. Periodic Rebalancing - This method requires very little effort on your part outside of your commitment to do it.
        * Choose a preset time interval…usually quarterly, every six months, or annually.
        * Set a reminder.
2. Tolerance Rebalancing - This method also helps you rebalance your portfolio to align with your intended asset allocation, but is based on a percentage change in your allocation.
        * This is what I do. It’s based on percentages, and is best for more actively managed portfolios.
        * Simple approach = % of stocks vs bonds
        * Advanced approach = % of each individual stock within your stock bucket.
        * During volatile markets, this approach carries higher risk and more expense.
        * Method will likely change as you age and your portfolio grows.

​#PortfolioRebalancing #StockMarket #Stocks #Investing #FinancialFreedom #FinancialIndependence  #StockMarket101