Top Cannabis ETFs In Q4 2021
Are you looking for ways to invest in the cannabis industry in 2021? For the past several months many leading cannabis stocks have experienced a pullback that has left the cannabis sector trading at some of its lowest market value this year. Although leading cannabis companies have been performing well and delivering significant revenue growth in 2021 it has not translated into market gains.
Instead, the cannabis sector seems to be influenced heavily by federal cannabis reform or the lack of it. With Senate Majority Leader Chuck Schumer not introducing his legislation earlier in the year, the cannabis sector has suffered significant declines. Now in the fourth quarter cannabis investors are hoping for something to be passed in Congress whether it be The SAFE Banking Act or The MORE Act.
But with top pot stocks trading at lower levels, it could be a good time to find ways to invest in the cannabis industry long term. One way more retail investors are turning toward is cannabis ETFs. An exchange traded fund or ETF is a type of security that tracks an index, sector, commodity, or other asset and is bought and sold on the stock exchange like a regular stock. ETFs are like mutual funds and can provide a way to invest in a certain sector as opposed to just one company.
Investing In Marijuana ETFs And The Cannabis Market
Top marijuana ETFs in 2021 have declined along with the cannabis sector. Most invest in a specific area of the cannabis market giving investors exposure to certain parts of the industry. On one hand, you have cannabis ETFs that are heavily invested in the US cannabis industry. And others that have Canadian and medical cannabis companies in their holdings. In addition, some of these marijuana ETFs also provide a dividend for shareholders. In general, not many top marijuana stocks to invest in currently provide dividends.
This is another factor attracting long-term cannabis investors to the best marijuana ETFs in 2021. For investors researching these marijuana ETFs and finding the ones that hold assets of your favorite cannabis stocks could be a good way to invest in the market. For long-term investors, recent drops in value may produce more upside when the cannabis sector begins to recover. Let’s take a close look at possibly 3 of the best marijuana ETFs for your long-term portfolio.
Top Marijuana ETFs In 2021
- AdvisorShares Pure US Cannabis ETF (NYSEArca:MSOS)
- Amplify ETF Trust – Amplify Seymour Cannabis ETF (NYSEArca:CNBS)
- ETFMG Alternative Harvest ETF (NYSEArca:MJ)
AdvisorShares Pure US Cannabis ETF (MSOS)
In 2021 AdvisorShares Pure US Cannabis ETF is the first US marijuana ETF to surpass $1 billion in assets under management. Notably, this top marijuana ETF is focusing on US cannabis companies for their holdings and assets. Predominantly, the ETF has assets that include US vertically integrated multi-state operators, top U.S. cannabis REITs, CBD companies, pharmaceutical companies, and hydroponic suppliers. In detail, MSOS ETF’s majority holdings are in Trulieve Cannabis Corp. (TCNNF), Curaleaf Holdings, Inc. (CURLF), Green Thumb Industries Inc. (OTC: GTBIF), and Cresco Labs Inc. (OTC: CRLBF).
MSOS ETF is trading at $30.96 on September 9th down 14.65% in the last month of trading. The ETF has a 52-week price range of $20.45-$55.91 and has increased 38.55% in its 1-year performance. As the cannabis sector continues to pull back MSOS ETF may provide a way to invest in the US cannabis market as it continues to grow.
Amplify Seymour Cannabis ETF (CNBS)
Next on this list, Amplify Seymour Cannabis ETF provides investors exposure to the global cannabis industry with more than 80% of its holdings in companies generating revenue from cannabis and hemp production. Recently, this cannabis ETF announced it can access US MSOs via swaps. In detail, the ETF completed both legal and operational work and can add portfolio exposure to this area of the cannabis industry to its assets. Now with the addition of US cannabis companies, CNBS has large holdings of WM Technology, Inc. (NASDAQ:MAPS), and Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM). Also holding assets in Tilray, Inc. (NASDAQ:TLRY) and Village Farms International, Inc. (NASDAQ:VFF).
CNBS ETF is trading at $20.35 on September 9th down 10.41% in the last month. The ETF has a 52-week price range of $10.97-$40.65 and is up 16.85% year to date. According to analysts at Wallet Investor CNBS ETF has a 1-year price forecast of $21.636. Amplify Seymour Cannabis ETF pays an annual dividend of $0.10 per share, with a dividend yield of 0.49%.
ETFMG Alternative Harvest ETF (MJ)
Alternative Harvest ETF is one of the first and largest ETFs to target the cannabis market. At the present time, MJ ETF has net assets of $1.61 billion. MJ remains the largest cannabis ETF in the world and the first and only U.S.-listed ETF to target the global cannabis industry directly. Overall, the MJ fund provides investors exposure to areas of the cannabis sector which continues to see medicinal advancements, regulatory changes, and M&A activity. To highlight, Alternative Harvest ETF’s major assets are in holdings from top Canadian cannabis companies like Tilray, Inc., Canopy Growth Corporation (NASDAQ:CGC), and GrowGeneration Corp. (NASDAQ:GRWG). For the long-term investor, MJ ETF has a dividend with an estimated 2.26% dividend yield. With a dividend, MJ ETF becomes a much more attractive long-term hold in the cannabis sector.
MJ ETF is trading at $15.93 On September 9th down 11.28% in the last month. This ETF has a 52-week price range of $10.12-$34.58 and is up 11.22% year to date. According to analysts at Wallet Investor, MJ ETF has a 1-year price forecast of $22.931 per share. For investors looking for long-term options, MJ ETF could be a top marijuana ETF for your portfolio in 2021.
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