The whole market around psychedelic stocks (Psilocybin, LSD, etc) has been booming in Q3 2020.
Reasons include a growing social acceptance around drug use and an increased attention on mental health.
Health Canada has already granted licenses to certain companies to conduct research to standardize the extraction of psilocybin from mushrooms.
In the U.S., the FDA has declared psychedelics a breakthrough therapy for severe depression.
Oregon approved a legal framework for the therapeutic use of psilocybin. Becoming the first state to do so.
Oakland, Santa Cruz and Denver have already decriminalized psilocybin.
Now to my question:
I’m thinking about investing like 5-10k into this field out of pure interest.
I’m a completely passive investor so I was looking for some funds to invest into - turns out Horizons Psychedelic Stock Index ETF is expected to start trading around January 15th. It will have a management fee of 0.86% of the ETF’s net asset value with a potential 15% performance fee payable to the ETF manager if a 3%+ annualized return is achieved. That’s way too much if you ask me.
I’m now thinking about just investing in a few of the biggest companies that are listed right now.
So I stumbled upon this site https://psychedelicinvest.com/index/.
How would you guys handle this? Just pick 5 companies and invest 2k into each? Is there even any different approach? I don’t think that I’m smarter than the market so I’d like to avoid buying a 10M$ marketcap stock just because I think it has more potential than the others.