Best Ways To Invest In The Cannabis Industry Long Term
Do you intend to invest long-term in the top marijuana stocks? Finding long-term investments with general stability may be challenging, given the market volatility linked with the leading cannabis stocks to watch.
As federal cannabis legalization advances on Capitol Hill, top cannabis companies might experience increased volatility. President Joe Biden has declared that he will start pardoning persons who have previously been found guilty of federal offenses involving small amounts of cannabis. In addition, Biden said that to cease state-level prosecutions for marijuana possession, other governors should follow his lead.
Due to existing legal restrictions, most of these top US marijuana stocks are prohibited from trading on major US stock exchanges like the Nasdaq and NYSE. Currently, they trade on OTC markets, which are more difficult for novice retail investors and institutional investors to access. Both larger investing institutions and the fastest-growing retail trading platforms, such Robinhood Markets, Inc. (NASDAQ: HOOD) and WeBull, steer clear of OTC stocks. However, using marijuana ETFs makes investing in some of these companies straightforward.
Cannabis exchange-traded funds give investors access to companies in the cannabis industry that aren’t yet listed on well-known stock exchanges. An index, sector, commodity, or other asset is frequently followed by a cannabis ETF, which trades like regular stocks on the stock exchange. You may invest in the cannabis sector with just one stake by locating the top cannabis ETFs that include the businesses you want to invest in. As the market dips in December, let’s look at four of the best marijuana ETFs to watch in 2023.
[Read More] Marijuana Stocks To Watch How to Make A Profit In Volatile Sector?
Top Marijuana ETFs To Watch Before 2023
- AdvisorShares Pure US Cannabis ETF (NYSEArca: MSOS)
- Amplify Growth Opportunities ETF (NYSEArca: CNBS)
- AdvisorShares Pure Cannabis ETF (NYSEArca: YOLO)
- ETFMG Alternative Harvest ETF (NYSEArca: MJ)
The AdvisorShares Pure US Cannabis ETF (MSOS)
AdvisorShares Pure US Cannabis ETF is the first marijuana ETF in the United States, with over $1 billion in assets under management. This top marijuana ETF has a large percentage of assets and holdings in American cannabis businesses. Vertically integrated multi-state US operators, well-known US cannabis REITs, CBD businesses, corporations and firms, and hydroponic suppliers often own most of the ETF’s assets. Trulieve Cannabis Corp. (TCNNF), Curaleaf Holdings, Inc. (CURLF), Green Thumb Industries Inc. (OTC: GTBIF), and Cresco Labs Inc. (OTC: CRLBF) are some of the MSOS ETFs that are now available.
MSOS ETF closed at $8.12 on December 15th, down 32.67% in the past month of trading. This ETF is down 68.27% year to date, with a 52-week price range of $8.05-$26.51. Currently, the MSOS ETF does not pay a dividend.
Amplify Seymour Cannabis ETF (CNBS)
By investing more than 80% of its assets in businesses that make money from growing cannabis and hemp, the Amplify Seymour Cannabis ETF gives investors exposure to the worldwide cannabis industry. This cannabis ETF now has access to US MSOs due to swaps. Due to the inclusion of US cannabis companies, CNBS has large positions in WM Technology, Inc. (NASDAQ: MAPS), Hydrofarm Holdings Group, Inc. (NASDAQ: HYFM), and AFC Gamma (NASDAQ: AFCG), Inc. Additionally, it owns Tilray, Inc. and GrowGeneration Corp. (NASDAQ: GRWG) (NASDAQ: TLRY).
On December 15th, the CNBS ETF finished at $5.65, down 21.99% in the last trading month. The ETF is down 60.08% year to date, with a 52-week price range of $5.63-$14.68. Amplify ETFs’ total assets under management surpassed $5 billion in 2021.
AdvisorShares Pure Cannabis ETF YOLO
AdvisorShares Pure Cannabis ETF, often known as YOLO ETF, is the market’s second most popular cannabis ETF. It makes long-term investments in domestic and international cannabis firms. The ETF owns businesses like WM Technology, Inc. (MAPS), Canopy Growth Corporation (NASDAQ: CGC), Village Farms International, Inc. (NASDAQ: VFF), and Tilray Brands, Inc. (TLRY). Through this ETF, investors would have access to some of the most well-known cannabis businesses in the US and Canada.
YOLO ETF closed on December 15th at $4.08, down 22.29% in the past month of trading. Currently, the ETF has a 52-week range of $4.07-$13.37 and is down 68.62% year to date.
ETFMG Alternative Harvest ETF (MJ)
Alternative Harvest ETF was one of the earliest and largest exchange-traded funds focused on cannabis (ETFs). The MJ ETF’s current net asset value is $386.32 million. The first and only cannabis ETF with a U.S. listing that primarily targets the global cannabis industry, MJ, is still one of the largest cannabis ETFs in the world. Investors in the MJ fund are exposed to the cannabis sector areas undergoing legal, medical, and merger and acquisition activity. The Alternative Harvest ETF includes three of Canada’s largest marijuana companies: Tilray, Inc. (NASDAQ: TLRY), Canopy Growth Corporation (NASDAQ: CGC), and GrowGeneration Corp. (NASDAQ: GRWG). The MJ ETF delivers a dividend yield of about 1.75 percent for long-term investors.
MJ ETF closed on December 15th at $4.77, up 18.88% in the last month’s trading. Currently, MJ ETF has a 52-week price range of $4.54-$11.84 and is down 56.95% year to date.
Investing In Top Marijuana ETFs For 2023
Due to the current market’s volatility, every investment carries some risk. One can profit from the cannabis industry by monitoring the market performance of cannabis ETFs and the existing and potential industry catalysts. The cannabis market will double in size over the following five years. Investing in a marijuana ETF is one way to enter the larger cannabis market quickly.
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