One of the most popular ways to gain exposure to the cannabis industry was facing the worst single-day decline since it was created back in 2015, according to Dow Jones Market Data. The ETFMG Alternative Harvest ETF
MJ,
-24.60%
on Thursday was down more than 20% and on track to snap a three-day win streak as it heads to its worst day since inception, Dec. 3 of 2015. Stunningly, the ETF was still nursing an 11% gain for the week and an 81% gain in the year to date, highlighting the nearly unfettered appetite for pot stocks that has gripped the market in recent days. The decline for the popular ETF comes as Cannabis shares were tumbling sharply across the board Thursday, with many of the sector’s best performers a day earlier surrendering all those gains. Tilray Inc.
TLRY,
-49.68%,
a recent market darling, was last down 42%, while Aphria Inc.
APHA,
-35.82%,
with which it is merging, was down over 30%. Pot stocks have been reignited on bullish bets for positive political developments and a better legal landscape under President Joe Biden. Meanwhile, the broader market was seeing tepid gains, with the Dow Jones Industrial Average
DJIA,
-0.02%
was off 0.2%, the S&P 500 index
SPX,
+0.17%
trading flat and the Nasdaq Composite Index
COMP,
+0.38%
gaining a modest 0.3% on the session.