Investing in marijuana ETFs (exchange-traded funds), which are funds that own stakes in multiple cannabis companies, is one way to potentially profit from the cannabis industry's growth. For some investors, marijuana ETFs could be a better fit than investing in individual marijuana stocks.
The cannabis industry is poised for strong growth. Cannabis is projected to be a $1.4 trillion global market by 2034, 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.
5 top cannabis ETFs for 2026
Below are five of the top marijuana exchange-traded funds with their assets under management and net expense ratios.
ETF | Assets Under Management | Net Expense Ratio |
|---|---|---|
AdvisorShares Pure U.S. Cannabis ETF (NYSEMKT:MSOS) | $1.1 billion | 0.78% |
Amplify Alternative Harvest ETF (NYSEMKT:MJ) | $137 million | 0.75% |
Global X Marijuana Life Sciences Index ETF (OTC:HMLSF) | CAD$45 million | 1.00% |
AdvisorShares Pure Cannabis ETF (NYSEMKT:YOLO) | $38 million | 0.51% |
Amplify Seymour Cannabis ETF (NYSEMKT:CNBS) | $98 million | 0.76% |
1. AdvisorShares Pure U.S. Cannabis ETF
2. Amplify Alternative Harvest ETF
NYSEMKT: MJ
Key Data Points
OTC: HMLSF
Key Data Points
4. AdvisorShares Pure Cannabis ETF
NYSEMKT: YOLO
Key Data Points
NYSEMKT: CNBS
Key Data Points
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 risks 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
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.
Related investing topics
FAQ
Marijuana ETFs FAQ
About the Author
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.
