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 $665.71M. The average expense ratio is 0.73%. Marijuana ETFs can be found in the following asset classes:

  • Equity

Features and News

New Wrinkle To Marijuana ETFs

Innovation Shares' new marijuana ETF filing tackles custodial risk head-on. Will it be enough to pass muster with the SEC?

ETF Report

 ETF Explainer: MJ

The first U.S.-listed marijuana ETF has a complicated history.

Podcasts

ETF Prime Podcast: More Best Of Shows

Featuring Bloomberg's Balchunas, Exponential's Bak and Abnormal Return's Viskanta.

ETF.com Live Chat!

Live Chat: Retail ETFs & ‘Bionic’ Advisors

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

Daily ETF Watch

Marijuana ETF Filed

Innovation Shares plans to launch the second U.S.-listed pot ETF.

ETF.com Analysis

Gen Z’s Biggest ETF Questions

What's on the minds of the next generation of investors and advisors—maybe even ETF issuers?

Features and News

Large, Liquid ETFs With High Spreads

Sometimes high trading spreads strike where you least expect them.

ETF.com Live Chat!

Live Chat: ETF Flows & Market Action

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

Features and News

Market Correction’s Meaning For ETFs

Why the market has dropped precipitously this month, and what investors should do about it.