6 Best-Performing Marijuana ETFs
Introduction:
As the global marijuana industry continues to grow, investors are seeking for new ways to gain exposure to this burgeoning market. One popular method is through Exchange-Traded Funds (ETFs), which offer a diversified exposure to various cannabis companies. In this article, we will take a look at the 6 best-performing marijuana ETFs that have shown impressive returns in recent times.
1. ETFMG Alternative Harvest ETF (MJ)
The ETFMG Alternative Harvest ETF is among the first and largest marijuana ETFs within the market. It provides exposure to marijuana producers and related services across countries where cannabis is legal. With several well-known cannabis stocks in its portfolio such as Tilray Inc., Canopy Growth Corp., and Cronos Group Inc., this ETF has become a preferred choice for many investors looking for broad exposure in the cannabis sector.
2. AdvisorShares Pure Cannabis ETF (YOLO)
Launched in 2019, AdvisorShares Pure Cannabis ETF focuses on active management and offers concentrated exposure to the marijuana industry. As an actively managed fund, YOLO’s holdings are regularly adjusted based on its managers’ evaluations of individual stock performance and growth potential. Its current portfolio includes names like Innovative Industrial Properties, GrowGeneration Corp., and OrganiGram Holdings.
3. Global X Cannabis ETF (POTX)
Global X Cannabis ETF was launched in 2019 and tracks the Cannabis Index’s performance, which comprises various worldwide cannabis companies that are legally involved in raising, producing, or selling marijuana products. With a focus on larger well-established companies like GW Pharmaceuticals, Aurora Cannabis, and Aphria Inc., POTX offers investors an attractive option for diversified participation in the cannabis market.
4. Horizons Marijuana Life Sciences Index ETF (HMMJ)
Horizons Marijuana Life Sciences Index ETF is primarily focused on publicly listed life science companies with significant operations in the marijuana industry. It offers exposure to emerging growth opportunities, primarily focusing on biotechnology, pharmaceuticals, and related healthcare subsectors. Some major holdings in its portfolio include Canopy Growth Corp., Aurora Cannabis Inc., and Aphria Inc.
5. Cambria Cannabis ETF (TOKE)
Cambria Cannabis ETF is an actively managed fund that invests in companies throughout the marijuana value chain, including producers, suppliers, and service providers. Launching in 2019, TOKE is managed by Cambria Investment Management and requires companies to have a market capitalization of at least $200 million. Its primary holdings include Curaleaf Holdings, Green Thumb Industries, and Trulieve Cannabis.
6. Amplify Seymour Cannabis ETF (CNBS)
Amplify Seymour Cannabis ETF is another actively managed marijuana ETF that invests in companies with significant involvement in the legal cannabis industry. CNBS’ top holdings include major players like Canopy Growth Corp., Innovative Industrial Properties, and GW Pharmaceuticals. In addition to pure-play cannabis companies, CNBS also invests in ancillary businesses like scientific research and biotechnology within the marijuana sector.
Conclusion:
As the cannabis industry continues to gain momentum worldwide, these six best-performing marijuana ETFs offer investors a range of options to capitalize on future growth potential. From broad-based exposure to active management strategies, there’s an ETF for every investor looking to diversify their portfolio while participating in the expanding marijuana market.