Investing In The Cannabis Industry In 2021
Are you looking for ways to invest in top marijuana stocks in 2021? At the present time, many analysts believe we could see significant upside from these trading levels this year. For several months the cannabis sector has been consolidating at lower levels in the market. This is giving new investors the opportunity to invest in the cannabis market at much lower stock prices. With so many different cannabis companies to choose from it could become difficult to pick the right ones for your portfolio.
Because of this, some investors are turning to alternative ways to invest in the cannabis industry. Ultimately, Marijuana ETFs provide investors with exposure to the area in the cannabis industry the ETF holds assets of. An ETF or exchange-traded fund is a type of security that tracks an index, sector, commodity, or asset. In general, ETFs can have many different types of investments, including stocks, commodities, bonds, or a mixture of investments.
Investing In ETFs In 2021
In many ways, ETFs are like mutual funds except they trade on the major exchanges like a regular stock. Cannabis ETFs seem to be focused on a specific area in the cannabis market. This is giving shareholders broader exposure to the cannabis industry more so than investing in just one company. Some cannabis ETFs also provide investors with a dividend giving them more appeal to the long-term investor.
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To get familiar with the best marijuana ETFs to add to your watchlist in 2021 we can research some funds. With most of the cannabis sector trading close to their lower levels in 2021, some of these top marijuana ETFs could provide investors with strong returns as the cannabis market continues to grow. As we close out July let’s take a closer look at possibly the best marijuana ETFs to buy in 2021?
Top 4 Marijuana ETFs Of 2021
- AdvisorShares Pure US Cannabis ETF (NYSEArca:MSOS)
- Amplify Seymour Cannabis ETF (NYSEArca:CNBS)
- The Cannabis ETF (NYSEArca:THCX)
- AdvisorShares Trust – AdvisorShares Pure Cannabis ETF (NYSEArca:YOLO)
AdvisorShares Pure US Cannabis ETF (MSOS)
For cannabis ETFs in 2021 AdvisorShares Pure US Cannabis ETF is the first US marijuana ETF to surpass $1 billion in assets under management. Primarily, this top marijuana ETF is focusing on US cannabis companies for their holdings and assets. Currently, the ETF has assets that include US vertically integrated multi-state operators, top U.S. cannabis REITs, CBD companies, pharmaceutical companies, and hydroponic suppliers. MSOS ETFs majority holdings are Trulieve Cannabis Corp. (TCNNF), Curaleaf Holdings, Inc. (CURLF), Green Thumb Industries Inc. (OTC: GTBIF), and Cresco Labs Inc. (OTC:CRLBF).
At the present time, MSOS ETF does not pay a dividend but does expose investors to some of the top cannabis companies in the US. This year US cannabis companies have performed much stronger than Canadian cannabis companies. In the first quarter, most US companies have delivered strong earnings while the Canadian companies have struggled to perform. As it stands the cannabis sector is trading at some of its lowest market value in 2021. This has created an opportunity for cannabis investors to start a position in MSOS ETF at a lower price point. MSOS ETF closed on July 28th at $35.82 up 2.20% for the day. The ETF has a 52-week range of $20.45-$55.91 and is down 1.86% year to date.
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Amplify Seymour Cannabis ETF (CNBS)
For investors looking for more global exposure to the cannabis industry, there is Amplify Seymour Cannabis ETF. Primarily, this fund provides investors exposure to the global cannabis industry with more than 80% of its holdings in companies generating revenue from cannabis and hemp production. This cannabis ETF has a global approach and announced it can access US MSOs via swaps. Recently, the ETF completed both legal and operational work and can add portfolio exposure to this area of the cannabis market. 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 closed on July 28th at $23.22 up 5.50% for the day. This ETF is up 33.07% year to date with a 52-week range of $10.97-$23.22. CNBS ETF pays an annual dividend of $0.10 a dividend yield of .44%. This ETF has declined by 11% in the past month and has gained 133.33% in its 1-year performance. For 2021 CNBS ETF provides investors with global exposure to the cannabis industries leading marijuana companies and ancillary companies.
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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. At the present time, 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. Now THCX ETFs top holdings are Village Farms International, Inc., Tilray, Inc. GrowGeneration Corp. (NASDAQ:GRWG), and Amyris, Inc. (NASDAQ:AMRS). This ETF could give investors heavy exposure to the Canadian and medicinal parts of the market along with other top ancillary companies.
THCX ETF provides investors with an annual dividend of $0.20 a dividend yield of 1.37%. This ETF has a 52-week range of $8.01-$30.99 up 24.24% year to date. THCX ETF closed on July 28th at $15.53 up 6.22% for the day. For its 1-year performance, THCX ETF has gained 45.96% in the market.
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AdvisorShares Pure Cannabis ETF YOLO
Another AdvisorShares Pure Cannabis ETF or YOLO ETF is a leading cannabis ETF started by the company that seeks long-term capital appreciation by investing in both domestic and foreign cannabis equity securities. I fact some of the holdings in this ETF are Village Farms International, Inc. (NASDAQ:VFF), Innovative Industrial Properties, Inc. (IIPR), Canopy Growth Corporation (NASDAQ:CGC), and GrowGeneration Corp. (NASDAQ:GRWG). In essence, this ETF would give investors exposure to some U.S. cannabis companies as well as some leading Canadian cannabis companies.
YOLO ETF closed on July 28th at $19.21 up 5.32% for the day. This ETF is up 63.77% for its 1-year performance and has a 52-week range of $10.37-$31.87. At the present time, YOLO ETF is up 13% year to date and has an annual dividend of $0.11 a dividend yield of 0.60%. In essence, As the US cannabis companies deliver their financials in August YOLO ETF could provide wide exposure to this area of the market.