Is it safe to invest in marijuana?

Marijuana stocks can be highly risky and volatile. It's not fully safe to invest in marijuana, even with marijuana ETFs.

Do marijuana ETFs deserve a place in your portfolio?

Marijuana ETFs won't be a good fit for every investor. Risk-averse investors will probably want to steer clear of these funds. However, aggressive investors could find marijuana ETFs an attractive long-term investment option.

Can marijuana ETFs pay dividends?

Many marijuana ETFs don't pay dividends. However, some exceptions have paid dividends in the past, including the Amplify Alternative Harvest ETF.

How can I evaluate the performance of a marijuana ETF?

Key things to consider in evaluating the performance of a marijuana ETF include the total returns over varying time periods (for example, one year, three years, five years, and total returns since inception). Investors should also look at annual expense ratios relative to total returns.

How do marijuana ETFs differ from investing in individual marijuana stocks?

Marijuana ETFs offer a convenient way to invest in a large number of individual marijuana stocks, providing more diversification than buying them individually. Choosing a marijuana ETF can also significantly reduce the amount of research required compared to investing in individual marijuana stocks. The primary downside of marijuana ETFs is their costs, which can be compared by looking at the funds' annual expense ratios.

Who is the biggest marijuana grower in the U.S.?

The largest publicly traded marijuana grower in the U.S. by market cap is Curaleaf.

5 Best Cannabis ETFs for 2026 and How to Invest

Here's what you need to know about the top marijuana ETFs.

By Keith Speights – Updated Aug 12, 2026 at 5:52 PM EST | Fact-checked by Margo Winton Parodi

+Fool.comon

Key Points

Cannabis ETFs diversify risk by investing in multiple marijuana stocks.
Projected global cannabis market growth is $1.4 trillion by 2034.
AdvisorShares Pure U.S. Cannabis ETF focuses exclusively on U.S. market.

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Data source: Yahoo! Finance and ETF websites. Data current as of May 7, 2026.
ETF	Assets Under Management	Net Expense Ratio
AdvisorShares Pure U.S. Cannabis ETF (NYSEMKT:MSOS)	$926.4 million	0.78%
Amplify Alternative Harvest ETF (NYSEMKT:MJ)	$112 million	0.75%
Global X Marijuana Life Sciences Index ETF (TSX:HMMJ)	CAD$43.7 million	1.00%
AdvisorShares Pure Cannabis ETF (NYSEMKT:YOLO)	$33.7 million	0.51%
Amplify Seymour Cannabis ETF (NYSEMKT:CNBS)	$76.5 million	0.76%

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1. AdvisorShares Pure U.S. Cannabis ETF

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NYSEMKT: MSOS

AdvisorShares Pure US Cannabis ETF

Today's Change

(-1.26%) $-0.06

Current Price

$4.70

Key Data Points

AUM

$914M

Expense Ratio

0.81%

Top Holdings

TRLV

17.92%

CURLF

16.98%

GTBIF

11.87%

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The largest marijuana ETF based on assets under management is the AdvisorShares Pure U.S. Cannabis ETF (MSOS -1.26%). It's the first ETF to focus exclusively on the U.S. cannabis market.

This ETF had more than 20 holdings in August 2026, including U.S. marijuana stocks and swaps (derivative contracts, where the values or cash flows of one asset are exchanged for another). Its top positions included swaps for Curaleaf Holdings (CURLF -2.86%), Trulieve Cannabis (OTC:TCNNF), Green Thumb Industries (GTBIF -2.05%), Verano Holdings (OTC:VRNOF), Glass House Brands (GLAS -1.96%), and Cresco Labs (CRLBF -1.60%).

It's possible that the ETF's focus on the U.S. market could give investors greater growth opportunities than other ETFs. Although marijuana remains illegal at the federal level in the U.S., many states have legalized marijuana for medical and/or recreational use.

2. Amplify Alternative Harvest ETF

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NYSEMKT: MJ

Amplify ETF Trust - Amplify Alternative Harvest ETF

Today's Change

(1.32%) $0.34

Current Price

$26.17

Key Data Points

AUM

$111M

Dividend Yield

2.26%

Expense Ratio

1.12%

Top Holdings

CNBS

49.58%

CRON

10.64%

TLRY

10.08%

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In 2015, Amplify Alternative Harvest ETF (MJ +1.32%) became the first U.S. ETF to target the global cannabis market. This ETF was established even before the Canadian cannabis industry took off after the legalization of recreational marijuana in 2018.

Amplify Alternative Harvest ETF owned eight individual stocks in August 2026. Its top stock holdings included Tilray Brands (TLRY -3.73%), Cronos Group (CRON -1.82%), Canopy Growth (CGC -1.44%), SNDL (SNDL +3.44%), and Village Farms International (VFF -0.57%).

These five positions combined made up around 40% of the ETF's total assets. Roughly 50% of the ETF was also invested in its sister fund, Amplify Seymour Cannabis ETF (CNBS -0.56%).

Canadian cannabis producers account for a significant weight in the ETF's portfolio. This could hurt the ETF's performance while current U.S. federal cannabis laws remain in effect. The Canadian companies can't enter the U.S. cannabis market and retain their listings on major U.S. stock exchanges as long as marijuana is illegal at the federal level.

3. Global X Marijuana Life Sciences Index ETF

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TSX: HMMJ

Global X Marijuana Life Sciences Index ETF

Today's Change

(-1.18%) $-0.09

Current Price

$7.55

Key Data Points

AUM

$44M

Dividend Yield

1.34%

Expense Ratio

1.00%

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Although Global X Marijuana Life Sciences Index ETF (HMMJ -1.18%) isn't listed on a major U.S. stock exchange, U.S. investors can buy the ETF on over-the-counter (OTC) markets. Its 2017 inception makes it one of the oldest marijuana ETFs.

The ETF's top holdings include Jazz Pharmaceuticals (JAZZ -0.93%), Cronos Group, Innovative Industrial Properties (IIPR -0.30%), Tilray Brands, and Canopy Growth. Together, these five stocks account for approximately 51% of the ETF's total portfolio.

Global X Marijuana Life Sciences Index ETF became the first ETF to target the global cannabis market. The ETF was established even before the Canadian cannabis industry took off after the legalization of recreational marijuana in 2018.

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4. AdvisorShares Pure Cannabis ETF

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NYSEMKT: YOLO

AdvisorShares Trust - AdvisorShares Pure Cannabis ETF

Today's Change

(0.00%) $0.00

Current Price

$2.95

Key Data Points

AUM

$34M

Expense Ratio

0.91%

Top Holdings

MSOS

20.90%

TRLV

14.65%

CURLF

14.27%

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AdvisorShares operates two marijuana ETFs. One focuses exclusively on the U.S. cannabis market, but the AdvisorShares Pure Cannabis ETF (YOLO +0.00%) doesn't limit itself to the U.S. Instead, it focuses on the global cannabis market.

The ETF had 17 stock holdings in August 2026. More than 21% of its assets were invested in the AdvisorShares Pure U.S. Cannabis ETF. The top five individual stocks in its portfolio were Curaleaf, Trulieve, Village Farms International, High Tide (HITI -0.41%), and Cronos Group, which made up more than 50% of the ETF's total holdings.

The AdvisorShares ETF could be an attractive alternative for investors seeking exposure outside the U.S. who still want a heavier weighting to U.S. stocks.

5. Amplify Seymour Cannabis ETF

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NYSEMKT: CNBS

Amplify ETF Trust - Amplify Seymour Cannabis ETF

Today's Change

(-0.56%) $-0.16

Current Price

$27.76

Key Data Points

AUM

$76M

Expense Ratio

1.09%

Top Holdings

912797VP9

42.80%

912797UF2

26.34%

CURA.TO

14.90%

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Amplify Seymour Cannabis ETF (CNBS -0.56%) bears the name of its manager, Tim Seymour. He is a well-known cannabis investor who has appeared frequently on CNBC's Fast Money TV show.

The ETF held 33 stocks in August 2026. Its top positions included swaps in Trulieve Cannabis, Curaleaf, Green Thumb Industries, Glass House Brands, and Verano Holdings, as well as shares of CuraLeaf. The five positions comprised roughly 67% of the ETF's total assets.

U.S. multi-state operators make up a large share of this ETF's portfolio. Cannabis companies focusing on cultivation and retail comprise a smaller portion.

How to buy cannabis ETFs

When you know which cannabis ETF you want, here's how to invest in it.

Open your brokerage account: Log in to your brokerage account where you handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
Search for the ETF: Enter the ticker into the search bar to bring up the ETF's trading page.
Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this ETF.
Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
Submit your order: Confirm the details and submit your buy order.
Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

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Benefits and risks of investing in cannabis ETFs

The benefits of investing in cannabis ETFs include:

The potential for significant long-term gains
Diversification across multiple marijuana stocks
Exposure to some U.S. multi-state cannabis operators that can't list their shares on U.S. stock exchanges

However, there are also downsides associated with investing in marijuana ETFs, such as:

High risk and volatility
Relatively high expense ratios
Marijuana ETFs could own some marijuana stocks that investors would prefer to avoid

Methodology: How these ETFs were chosen

The most important criterion for selecting these ETFs was that they had to invest heavily in stocks operating in the cannabis sector. There aren't many funds that qualify.

It was also important that the cannabis ETFs be managed by a reputable company. All five selected ETFs passed this hurdle.

Note, though, that there was no threshold for assets under management (AUM). Some of the ETFs on the list have relatively low AUM levels.

Should you invest in cannabis ETFs?

Investing in cannabis ETFs isn't for everyone. Although these ETFs offer several advantages over buying individual cannabis stocks, they can still be highly volatile. Risk-averse investors will be better off looking for other assets to buy.

On the other hand, aggressive investors could find these funds attractive alternatives. Patience may be needed, though. Cannabis ETFs could underperform over the short term.

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Marijuana ETFs FAQ

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About the Author

Keith Speights is a contributing Motley Fool healthcare analyst covering publicly traded companies across pharmaceuticals, biotechnology, medical devices, technology, and marijuana. Prior to The Motley Fool, Keith was CEO of Constant Care Technology, a healthcare technology company; vice president of American HealthTech, a healthcare software company; and a director of operations for Blue Cross Blue Shield of Mississippi, a health insurer. He holds a B.S. in Industrial Engineering from Mississippi State University.

TMFFishBiz

Keith Speights has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cronos Group, High Tide, and Organigram Global. The Motley Fool recommends Cresco Labs, Green Thumb Industries, Innovative Industrial Properties, SNDL, and Tilray Brands. The Motley Fool has a disclosure policy.

5 Best Cannabis ETFs for 2026 and How to Invest

Here's what you need to know about the top marijuana ETFs.