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 9 ETFs traded on the U.S. markets, Marijuana ETFs have total assets under management of $1.50B. The average expense ratio is 0.70%. Marijuana ETFs can be found in the following asset classes:

  • Equity

The largest Marijuana ETF is the AdvisorShares Pure US Cannabis ETF MSOS with $707.44M in assets. In the last trailing year, the best-performing Marijuana ETF was WEED at --. The most recent ETF launched in the Marijuana space was the Roundhill Cannabis ETF WEED on 04/20/22.

Features and News

An Anatomy Of Thematic Investing

Thematic ETFs have been hugely popular over the past few years, but what are their risks?

Daily ETF Watch

Roundhill Debuts Cannabis ETF

‘WEED’ is going live despite its peers struggling.

Daily ETF Watch

Converted Marijuana ETF To Close

Anticipated ETF shutdowns for 2022 will outpace last year.

Features and News

Worst Performing ETFs Of The Year

The worst performers fell by 25% to 72% over the course of 2021.

Daily ETF Watch

Vice-Heavy ‘BAD’ ETF Debuts

The index fund goes all in on alcohol, gambling and drugs.

Daily ETF Watch

Firm Adds Its 3rd Marijuana ETF

AdvisorShares’ new ETF is global in nature and can implement leverage.

Features and News

Marijuana ETFs Blaze Higher

Cannabis-related ETFs are moving higher on news of a Republican-backed proposal for legalization. Analysis

ETFs & Innovation Go Hand In Hand

No matter what comes next, there will be an ETF for it. Analysis

Lottery Ticket ETFs Flourish

Leveraged and inverse ETF trading tools can be dangerous if in the wrong hands.