Are These The Best Cannabis Stocks To Invest in For Your Long-Term Portfolio?
Do you aim to make long-term investments in the best marijuana stocks? In general, given the market volatility associated with the best cannabis stocks to follow, finding long-term investments with a general sense of stability may be difficult.
Over the next five years, the cannabis market is expected to more than double. Additionally, one sector that will grow significantly in the US cannabis market. Congress is currently delaying SAFE Banking regulations and the federal cannabis reform, which has had a negative impact on the cannabis sector. As a result, top cannabis companies may see increased volatility in general as federal cannabis legalization fails on Capitol Hill. Investors can profit from the market’s current momentum by taking advantage of the sector’s recovery.
The bulk of these top US marijuana stocks are prohibited from trading on major US stock exchanges like the Nasdaq and NYSE because of current legal constraints. They now trade on OTC markets, which are more difficult to access for novice retail investors and institutional investors. OTC equities are avoided by both major investment institutions and the fastest-growing retail trading platforms, including WeBull and Robinhood Markets, Inc. (NASDAQ: HOOD). However, investing in some of these businesses is simple when using marijuana ETFs.
Exchange-traded funds for the cannabis sector allow investors access to companies that aren’t yet listed on well-known stock exchanges. A cannabis ETF, which trades like regular stocks on the stock exchange, is typically followed by an index, sector, commodity, or other assets. In addition, by identifying the top cannabis ETFs that include the companies you wish to invest in, you may invest in the cannabis industry with just one stake. Let’s look at four of the top marijuana ETFs to watch in 2023 as the market rises in January.
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Best Cannabis ETFs To For Q1 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)
The first marijuana ETF in the United States is AdvisorShares Pure US Cannabis ETF, which currently has over $1 billion in assets under management. In general, this top marijuana ETF invests a significant portion of its assets and holdings in cannabis companies in the United States. The majority of the assets in the ETF are frequently owned by vertically integrated multi-state US operators, well-known US cannabis REITs, CBD enterprises, organizations and firms, and hydroponic suppliers. Some of the MSOS ETFs that are now accessible include Trulieve Cannabis Corp. (TCNNF), Curaleaf Holdings, Inc. (CURLF), Green Thumb Industries Inc. (OTC: GTBIF), and Cresco Labs Inc. (OTC: CRLBF).
MSOS ETF closed at $6.18 on January 26th, down 14.29% in the past month of trading. This ETF is down 11.59% year to date, with a 52-week price range of $6.09-$26.63. Currently, the MSOS ETF does not pay a dividend.
Amplify Seymour Cannabis ETF (CNBS)
The Amplify Seymour Cannabis ETF provides investors with exposure to the global cannabis market by investing more than 80% of its assets in companies that generate revenue from cultivating cannabis and hemp. Due to swaps, this cannabis ETF now has access to US MSOs. CNBS holds significant stakes in WM Technology, Inc. (NASDAQ: MAPS), Hydrofarm Holdings Group, Inc. (NASDAQ: HYFM), and AFC Gamma (NASDAQ: AFCG), Inc. as a result of the inclusion of US cannabis firms. Additionally, it owns GrowGeneration Corp. (NASDAQ: GRWG) and Tilray, Inc. (NASDAQ: TLRY).
On January 26th, the CNBS ETF finished at $5.05, down 1.56% in the last trading month. In this case, the ETF is down 0.79% year to date, with a 52-week price range of $4.81-$14.10. Amplify ETFs’ total assets under management surpassed $5 billion in 2021.
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AdvisorShares Pure Cannabis ETF YOLO
AdvisorShares Pure Cannabis ETF, often known as YOLO ETF, is the market’s second most popular cannabis ETF. It invests over the long term in both domestic and foreign cannabis businesses. WM Technology, Inc. (MAPS), Canopy Growth Corporation (NASDAQ: CGC), Village Farms International, Inc. (NASDAQ: VFF), and Tilray Brands, Inc. (TLRY) are among the companies that the ETF owns. Investors would effectively have access to some of the most well-known cannabis companies in the US and Canada through this ETF.
YOLO ETF closed on January 26th at $3.47, down 4.67% in the past month of trading. In this case, the ETF has a 52-week range of $3.39-$12 and is down 3.61% year to date.
ETFMG Alternative Harvest ETF (MJ)
One of the first and biggest exchange-traded funds concentrating on cannabis was Alternative Harvest ETF (ETFs). The current net asset value of the MJ ETF is $386.32 million. One of the biggest cannabis ETFs in the world is still MJ, the first and only cannabis ETF with a U.S. listing that primarily targets the worldwide cannabis business. The cannabis industry segments that are experiencing legal, medical, and merger and acquisition activity are exposed to investors in the MJ fund. Overall, three of Canada’s biggest marijuana businesses are represented in the Alternative Harvest ETF: Tilray, Inc. (NASDAQ: TLRY), Canopy Growth Corporation (NASDAQ: CGC), and GrowGeneration Corp. (NASDAQ: GRWG). The MJ ETF offers long-term investors a dividend yield of roughly 3.92 percent.
MJ ETF closed on January 26th at $4.40, up 0.92% in the last month’s trading. At the present time, MJ ETF has a 52-week price range of $4.02-$11.45 and is down 11.59% year to date.
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Top Marijuana ETFs For 2023
Every investment involves some risk because of the present market’s volatility. By keeping an eye on the market performance of cannabis ETFs as well as the current and anticipated industry catalysts, one can make money in the cannabis sector. Over the next five years, the cannabis market will more than double in size. One option to enter the broader cannabis industry rapidly is purchasing a marijuana ETF.