7 Best Marijuana ETFs to Buy in 2023 – Invest in the Legal Marijuana Industry
4 min read
Marijuana stocks have taken off in recent years, with many marijuana stocks seeing their stock price double or even triple within a year. Now that the federal government has made it clear that they want to legalize marijuana and regulate it like alcohol and cigarettes, this could be one of the hottest investment markets for the next decade.
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Best Marijuana ETFs to Buy in 2023
Investing in marijuana is a risky endeavor. The legal landscape surrounding the industry is constantly changing, and there are few companies that have been able to establish themselves as leaders in the space. However, there are a few Exchange Traded Funds (ETFs) that provide exposure to the legal marijuana industry. Here are the best marijuana ETFs to buy in 2020:
The Horizons Marijuana Life Sciences Index ETF (HMMJ) is one of the largest and most well-known marijuana ETFs. The fund provides exposure to a diversified portfolio of companies operating in the legal cannabis industry. HMMJ has a large asset base and trades on a major exchange, making it a good choice for investors looking for low-cost access to the legal marijuana industry.
The Cannabis ETF (THCX) is another option for investors looking to get exposure to the legal cannabis industry. THCX tracks an index of global companies involved in the production, distribution, and sale of cannabis products. The fund has a relatively small asset base, but it trades on a major exchange and has low fees.
The Amplify Seymour Cannabis ETN (CNBS) is an exchange-traded note that provides exposure to US-listed companies involved in the legal cannabis industry. CNBS has a higher expense ratio than some other options on this list, but it also offers access to a broader range of companies including those involved in CBD production and medical research.
The Legal Marijuana Industry
The legal marijuana industry is one of the fastest-growing industries in the United States. According to a report by Arcview Market Research, the legal cannabis industry was worth $6.7 billion in 2016 and is expected to grow to $24.1 billion by 2025.
There are a number of exchange-traded funds (ETFs) that offer exposure to the legal marijuana industry. Here are three of the best marijuana ETFs to buy in 2018:
- Horizons Marijuana Life Sciences Index ETF (HMMJ)
- Cambria Cannabis ETF (TOKE)
- ETFMG Alternative Harvest ETF (MJ)
What is an ETF?
An ETF, or exchange-traded fund, is a type of investment fund that trades on a stock exchange. ETFs are similar to mutual funds in that they allow investors to pool their money together to invest in a basket of securities. However, ETFs trade like stocks, which means that they can be bought and sold throughout the day on an exchange. This makes them more liquid than mutual funds, which can only be bought and sold at the end of the day.
Marijuana ETFs are a relatively new phenomenon. The first one was launched in December of 2017. Since then, a handful of others have followed suit. These ETFs offer investors exposure to the legal marijuana industry without having to pick individual stocks. They provide a convenient way to invest in an industry that is growing rapidly but is still fraught with risk.
The best marijuana ETF for you will depend on your investment objectives and risk tolerance. Some factors you may want to consider include:
The size of the fund:
Smaller funds may be more volatile but also offer greater potential for growth. Larger funds tend to be more stable but may not offer as much upside potential.
The geographic focus:
Some marijuana ETFs focus on investments in North America while others invest globally. If you have a preference for where your money is being invested, this is something to take into consideration.
How to Invest in the Marijuana ETFs
If you want to get in on the legal marijuana industry, there are a few ways to do it. One way is to invest in marijuana ETFs.
Marijuana ETFs are exchange-traded funds that track the performance of companies involved in the legal cannabis industry. This includes companies that grow, process, or sell marijuana and related products.
There are a few different marijuana ETFs to choose from, so it’s important to do your research before investing. Here are a few things to keep in mind:
- Make sure the ETF tracks companies that operate in the U.S.
- Consider the expense ratio of the ETF. The lower the expense ratio, the better.
- Look at the fund’s holdings to make sure it’s diversified. You don’t want all your eggs in one basket.
- Check out the fund’s performance over time. A good fund will have been around for awhile and performed well over time.
- Read reviews from other investors before making a decision. With all that in mind, here are three of the best marijuana ETFs to buy in 2020: 1) The Horizons Marijuana Life Sciences Index ETF (HMMJ), 2) The SPDR S&P 500 Cannabis Stock Index Fund (SPYX), and 3) The Amplify Seymour CannabisIndex ETF (CNBS).
List of the 7 Best Marijuana ETFs to Buy in 2023
- Horizons Marijuana Life Sciences Index ETF (HMMJ)
- ETFMG Alternative Harvest ETF (MJ)
- AdvisorShares Pure Cannabis ETF (YOLO)
- Amplify Seymour Cannabis ETF (CNBS)
- Cambria Cannabis ETF (TOKE)
- The CannabisETF (THCX)
- Victory Square Technologies Inc. (VSQTF)
Conclusion
If you’re looking for the best marijuana ETFs to buy in 2023, this is the list for you. These funds offer exposure to the legal marijuana industry, which is expected to continue to grow in the coming years. With so many options available, it’s important to do your research and choose the fund that best fits your investment goals.
