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 3 ETFs traded in the U.S. markets, Marijuana ETFs gather total assets under management of $1.24B. The average expense ratio is 0.73%. Marijuana ETFs can be found in the following asset classes:

  • Equity

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New Marijuana ETF Goes Live

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ETF.com Live Chat!

Live Chat: Commodities Made Easy & New Pot ETF

Dave Nadig answers readers' ETF questions in real time. Here’s the transcript.

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New Marijuana ETF On The Way

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ETF.com Live Chat!

Live Chat: Defining Growth, Value & Heartbeats

Dave Nadig answers readers' ETF questions in real time. Here’s the transcript.

ETF.com Live Chat!

Live Chat: ETF Seed Money

Dave Nadig answers readers' ETF questions in real time. Here’s the transcript.

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Top Performing ETFs Of The Year

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ETF Report

 Data At A Glance: March 2019

A look at the 12-month performance of marijuana, gold and more.

ETF Report

 Data At A Glance: March 2019

A look at the 12-month performance of marijuana, gold and more.

ETF.com Live Chat!

Live Chat: Fee Wars & Factor ETFs

Dave Nadig answers readers' ETF questions in real time. Here's the transcript.