Different Ways Of Investing In Cannabis Stocks
Investing in top marijuana stocks in 2021 can become somewhat difficult for new investors. Currently, with so many different choices in the cannabis sector, it does require countless hours of research to make the best investments for your portfolio. In general, to gain exposure to the cannabis industry in the US for example. Investors will most likely have to invest in several US cannabis companies that are dominant in certain markets.
Ultimately this could mean several different positions in the cannabis sector that although gives you the chance to see gains could also end up as liabilities for your portfolio. Because of the market volatility in the top cannabis stocks to buy investors are always looking for better ways to gain exposure to cannabis industry growth. Realistically day trading and swing trading are not for everyone. Some investors prefer to invest for the long term, and this could be difficult with top cannabis stocks that vary in stock prices.
But there are some options for investors that want to invest in the cannabis sector in a more simplistic way. At the present time, marijuana ETFs are gaining popularity with more investors who are looking to gain exposure to the cannabis industry. ETFs or exchange-traded funds are a type of investment fund or exchange-traded product that trades on the stock exchange. Very similar to a mutual fund one of the main differences is that ETFs can be bought and sold throughout the day like a regular stock.
Best Cannabis ETFs In 2021
At the present time, there are quite a few cannabis ETFs that give investors exposure to different areas of the industry. Some marijuana ETFs focus primarily on the Canadian cannabis sector others on the US cannabis market. Then there are others that are medically based as far as assets in the cannabis sector. Regardless of which region of the market you’re interested in investing in there are some good options for traders.
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At the present time, the cannabis sector attempting to recover in June could be a good time to find the best marijuana ETFs for your portfolio. Currently, most marijuana stocks are trading near some of their lowest price points in 2021. This caused top cannabis ETFs to also see some declines in market value. For investors looking for long-term positions, this could be a good time to start a position. With this in mind, we look into some of the top marijuana ETFs to buy in 2021.
Marijuana ETFs To Watch
- AdvisorShares Pure US Cannabis ETF (NYSEAcra:MSOS)
- ETFMG Alternative Harvest ETF (NYSEAcra:MJ)
AdvisorShares Pure US Cannabis ETF(MSOS)
AdvisorShares Pure US Cannabis ETF is the first US marijuana ETF to surpass $1 billion in assets under management. Specifically, this ETF focuses solely on American cannabis companies for their holdings. In general, the ETF has assets that include US multi-state operators, top U.S. cannabis REITs, CBD companies, pharmaceutical companies, and hydroponic suppliers. Currently, the cannabis ETF’s majority holdings are Trulieve Cannabis Corp. (TCNNF), Curaleaf Holdings, Inc. (OTC: CURLF), Green Thumb Industries Inc. (OTC: GTBIF), and Cresco Labs Inc. (CRLBF). In the second quarter of 2021 more investors seem to be focusing on the US cannabis companies that are performing better for investors in 2021.
MSOS ETF closed on June 2nd at $41.12 up 12.66% year to date. In February MSOS ETF reached a high of $55.91 and is down 5.67% in the past month. According to analysts at Wallet Investor MSOS ETF has a 1-year forecast price target of $75.558 per share. In essence, this forecast would represent an increase of 82.41% from current levels. For this reason, MSOS ETF could be one of the best marijuana ETFs to add to your watchlist in June.
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ETFMG Alternative Harvest ETF
The largest ETF to target the cannabis market with net assets of $1.71 billion is ETFMG Alternative Harvest ETF. Primarily, MJ ETF assets are in holdings from top Canadian cannabis companies like Tilray, Inc. (NASDAQ: TLRY) and Canopy Growth Corporation (NASDAQ:CGC), and GrowGeneration Corp. (NASDAQ:GRWG). As an incentive for the long-term investor MJ ETF has a dividend with an estimated 2.71% dividend yield. Currently, cannabis reform and legalization in the US may be a catalyst this year for the marijuana industry.
MJ ETF closed on June 2nd at $21.39 up 49.06% year to date. Back in February MJ ETF reached a high of $34.58 and is up 35.12% in the past six months. According to analysts at Wallet investors, MJ ETF has a 1-year forecast price target of $27.739 per share. From current levels, this would represent a 29.64% increase for investors. With this in mind, MJ ETF is one of the top marijuana ETFs to invest in for 2021.
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