March Cannabis Sector Performance
As the market continues through a turbulent month of March top marijuana stocks have also been showing market volatility. After seeing some upward momentum yesterday morning most top marijuana stocks ended up losing some value before the close on March 18th. But investors are becoming more aware of the potential the cannabis industry has for growth over the next few years.
Because of the possibilities of federal cannabis reform in the U.S. more people have become cannabis stock investors. Although this has yet to come to fruition in 2021 the cannabis market in the U.S. is expanding rapidly on a state level. Generally speaking, the cannabis sector could be one of the fastest-growing markets in the U.S. But due to the fact that most top marijuana stocks are known for heavy market volatility, it could be a difficult sector for long-term investing.
But investors that could stomach the price fluctuations could have massive gains in their future. At the present time, analysts are predicting the cannabis market will more than double in sales revenue by 2025. Essentially this could mean the best-positioned cannabis companies could see substantial growth in the future. Although this could be lucrative owning multiple cannabis stocks could add more instability to your portfolio.
Investing In The Cannabis Market
One way to invest in the cannabis market is to buy a few different cannabis stocks to gain exposure to the industry. Another method is to buy exchange-traded funds that solely focus on the cannabis sector. By definition, exchange-traded funds are investment funds and exchange-traded products that can be bought on stock exchanges.
Actually, in many ways, ETFs are similar to mutual funds except they can be bought and sold throughout the day. Recently ETFs have become more popular amongst investors who want some exposure to the cannabis market and also limiting some volatility in their portfolio. Currently, some cannabis ETFs focus on a specific area of the market, and others have a broader investment globally. In reality, both could be a simple and less involved way of investing in cannabis.
For the purpose of researching some of the leading cannabis ETFs available we can take a further look into some options. At the present time, there are six major marijuana ETFs that trade in the U.S. Because the marijuana sector has outperformed the broader market these cannabis ETFs could see gains in the future.
- Are These Marijuana Stocks To Buy Right Now In 2021
- Marijuana Stocks To Watch To Close This Week In March
Cannabis ETFs To Watch:
- AdvisorShares Pure US Cannabis ETF (NYSE: MSOS)
- Amplify Seymour Cannabis ETF (NYSE: CNBS)
- The Cannabis ETF (NYSE: THCX)
AdvisorShares Pure US Cannabis ETF (MSOS)
AdvisorShares Pure US Cannabis ETF has recently surpassed $1 billion in assets under management making it a leader amongst marijuana ETFs. as the first ETF focusing solely on American cannabis companies, this ETF includes some of the top marijuana stocks to buy in 2021. In detail, this includes multi-state operators, as well as U.S. cannabis REITs, CBD companies, pharmaceutical companies, and hydroponic suppliers. For example, the ETF’s top 4 holdings are Trulieve Cannabis Corp. (OTC: TCNNF), Curaleaf Holdings, Inc (OTC: CURLF), Green Thumb Industries Inc. (OTC: GTBIF), and Cresco Labs Inc. (CRLBF).
MSOS ETF is up 24.37% year to date with a high of $55.91 in February. Closing trading on March 18th at $47 the stock could be a possible way to invest in the cannabis sector for the long term. According to analysts at Stock Invest MSOS ETF is expected to rise 24.83% during the next 3 months. For investors looking for marijuana ETFs to watch MSOS ETF could be a top cannabis ETF to invest in for 2021.
Amplify Seymour Cannabis ETF (CNBS)
Amplify Seymour Cannabis ETF (CNBS) is a multi-cap fund that provides investors exposure to the global cannabis industry. At the present time, most more than 80% of the ETFs holdings are companies that generate revenue from cannabis and hemp production. In addition, this ETF is also invested in medical cannabis and therapeutics companies. Specifically, CNBS ETF’s top three holdings are GW Pharmaceuticals plc (NASDAQ: GWPH), Village Farms International, Inc (NASDAQ: VFF), and Aphria Inc (NASDAQ: APHA).
CNBS ETF is up 73.35% year to date with a high in February of $40.65. Currently trading at $30.48 at the open on March 19th CNBS ETF is a possible way to gain exposure to global growth in the cannabis market. Additionally, CNBS provides a dividend to shareholders giving it more appeal for the long-term hold. According to analysts at Wallet Investor CNBS ETF has a 1-year forecast price of $75.149. With this in mind, CNBS ETF is a top marijuana ETF to watch in 2021.
The Cannabis ETF (THCX)
The Cannabis ETF (THCX) is an Innovation Labs Cannabis Index that provides investors with exposure to the global cannabis, hemp, and CBD or pharmaceutical-based cannabis companies. The majority of the fund’s holdings are based in the U.S. and Canada with a focus on pharmaceuticals and a mix of value and growth cannabis stocks. At the moment THCX ETF’s top holdings are Aphria Inc., Village Farms International, Inc., Tilray, Inc. (NASDAQ: TLRY), and Amyris, Inc. (NASDAQ: AMRS). This ETF could give investors heavy exposure to the Canadian and medicinal parts of the market.
THCX ETF is up 50% year to date with a high of $30.99 in February. Currently trading at $20.68 THCX ETF is down 6.13% for March. In one-year THCX ETF has climbed 224.53% in the market. According to analysts at Stock Invest THCX ETF is expected to rise by 39.21%. In essence cannabis, ETFs could be a way more investors gain exposure to the growing cannabis market for the long term. Because of this marijuana ETFs are a possible way to invest in the cannabis sector in 2021.
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