Investors have several ways to potentially profit from the cannabis industry's growth. You can invest in specific marijuana stocks. However, another alternative is to invest in marijuana exchange-traded funds (ETFs), which are ETFs that own stakes in multiple cannabis companies.
And this industry is poised for strong growth. Cannabis is projected to be a $444 billion global market by 2030, according to Forbes Business Insights. The industry is expected to grow by an impressive compound annual growth rate of 34%.
The main benefit of buying marijuana ETFs is that your money is spread across a basket of stocks, which can lower your risk compared to investing in only a few individual stocks. Here's what you need to know about the top marijuana ETFs on the market.
Top marijuana ETFs to consider
Below are six top marijuana ETFs with their assets under management and net expense ratios.
ETF | Assets Under Management | Net Expense Ratio |
|---|---|---|
AdvisorShares Pure U.S. Cannabis ETF (NYSEMKT:MSOS) | $828 million | 0.97% |
Amplify Alternative Harvest ETF (NYSEMKT:MJ) | $133 million | 1.12% |
Global X Marijuana Life Sciences Index ETF (OTC:HMLSF) | CAD$44 million | 1.01% |
AdvisorShares Pure Cannabis ETF (NYSEMKT:YOLO) | $38 million | 0.91% |
Amplify Seymour Cannabis ETF (NYSEMKT:CNBS) | $91 million | 0.76% |
Cambria Cannabis ETF (NYSEMKT:TOKE) | $20 million | 0.59% |
1. AdvisorShares Pure U.S. Cannabis ETF
NYSEMKT: MSOS
Key Data Points
2. Amplify Alternative Harvest ETF
NYSEMKT: MJ
Key Data Points
4. AdvisorShares Pure Cannabis ETF
Amplify Seymour Cannabis ETF (CNBS +0.29%) bears the name of its manager, Tim Seymour. He is a well-known cannabis investor and has appeared frequently on CNBC's Fast Money TV show.
The ETF held 33 stocks in early 2026. Its top positions included swaps in Trulieve Cannabis, Green Thumb Industries, Cresco Labs, and Verano Holdings, as well as shares of CuraLeaf. The five positions comprised roughly 61% of the ETF's total assets.
U.S. multi-state operators make up much of this ETF's total portfolio. Cannabis companies focusing on cultivation and retail comprise a smaller portion.
6. Cambria Cannabis ETF
What to consider before choosing a marijuana ETF
Not all marijuana ETFs are alike. Here are several things to consider before choosing a marijuana ETF to buy:
- Annual expense ratios.
- Diversification (what percentage of the fund's portfolio do the top holdings comprise?).
- Liquidity (look at the average trading volume).
- Geographical focus of the stocks in the portfolio.
Pros and cons of investing in marijuana ETFs
The pros of investing in marijuana 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 cons 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.
How to buy cannabis ETFs
When you know which cannabis ETF you want, here's how to invest in it:
- Open your brokerage app: Log in to your brokerage account where you handle your investments.
- Search for the ETF: Enter the ticker or company name 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.
Taxes for marijuana stocks
Taxation is a key factor that could hurt the performance of marijuana ETFs. The most important consideration for 2026 is how the reclassification of marijuana as a Schedule III drug will reduce taxes for cannabis companies.
Rescheduling marijuana would eliminate Section 280E of the tax code. This section currently limits the business deductions available to cannabis companies. The removal of these limitations should boost the earnings of many U.S. marijuana stocks and potentially provide a catalyst for some marijuana ETFs.
Related investing topics
FAQ
Marijuana ETFs FAQ
About the Author
