Marijuana ETF Overview

Marijuana ETFs are a new and quickly developing entry into the ETF marketplace. Typically, marijuana ETFs do not invest in local dispensaries or mom-and-pop growers. Instead, cannabis ETFs tend to invest in the pharmaceutical and biotech companies doing cutting-edge research into medical applications for cannabinoids. They also tend to supplement their marijuana exposure with companies that support the budding marijuana industry, such as fertilizer producers; and alcohol and tobacco firms that have made significant investment into future marijuana revenue streams.

Though pot is still illegal at the federal level, more than half the states in the U.S. have legalized medical marijuana, and eight states, including California, have legalized recreational marijuana. Most issuers of marijuana ETFs, however, take pains to only hold in their funds companies that are federally legal or that are domiciled in foreign countries, such as Canada. Still, pot ETFs may carry significant legal risk, should the U.S. Justice Department follow through on plans to federally prosecute marijuana companies that are legal on the state level.

This channel is designed to help you understand how marijuana ETFs work, how they are built, how they behave, and what their risks and rewards are, so you can decide whether marijuana ETFs belong in your portfolio.

With 2 ETFs traded in the U.S. markets, Marijuana ETFs gather total assets under management of $350.38M. The average expense ratio is 0.75%. Marijuana ETFs can be found in the following asset classes:

  • Equity

Features and News

‘Daily Show’ Gets Serious About Finance

'Daily Show' correspondent and Inside ETFs keynote speaker Roy Wood Jr. shares his thoughts on bitcoin, marijuana investing and more.

Daily Hot Reads

Tuesday Hot Reads: Why Markets Need A Bitcoin ETF

Also, two blockchain ETFs coming this week.

Features and News

Promise & Peril Of Marijuana ETFs

Pot-themed ETFs could be a billion-dollar bet, as long as someone's still willing to custody them. 

Daily Hot Reads

Monday Hot Reads: Leveraged Bitcoin ETFs Proposed

Also, when will Yale buy bitcoin?

Daily Hot Reads

Friday Hot Reads: SEC Seeks Comment On Cboe Bitcoin ETF Filings

Also, marijuana ETF tumbles on attorney general’s legal rollback.

Weekly ETF Flows

Marijuana ETF 'MJX' Powers Strong Weekly Inflows

ETFs continued their winning ways during the first week of 2018.

Daily ETF Watch

First Pot ETF In US Starts Trading

Rollout was a bit of a late Christmas gift for fans of the growing cannabis industry, but it may not be what they think.

Daily ETF Watch

Teucrium ETF Filing Has Whiff Of Pot

Prospectus doesn’t mention marijuana, but it’s implied.

Daily ETF Watch

AdvisorShares Debuts ‘Vice’ ETF

New fund will invest in tobacco-, alcohol- and marijuana-related securities.