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5 Best Cannabis ETFs to Buy in Q2 2025
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The cannabis industry was once the talk of Wall Street after the Supreme Court ruled that states could make it legal. At its peak, most cannabis stocks were in a strong uptrend as investors predicted the names that would lead the sector.
However, at the time of writing, most companies have disappointed as their stocks have plunged. Most of them have dropped by double-digits from their all-time highs. Here are some of the top cannabis ETFs to invest in if the industry bounces back
What are the top cannabis ETFs to buy?
Copy link to sectionOur team of financial analysts have been through each marijuana ETF with a fine-tooth comb, reviewing every aspect of what they have to offer to investors. You can find our selections in the table below, along with links to key price information.
| # | ETF ticker | ETF name | Learn more |
|---|---|---|---|
| 1 | MSOS | AdvisorShares Pure US Cannabis ETF | Learn more > |
| 2 | CNBS | Amplify Seymour Cannabis ETF | Learn more > |
| 3 | YOLO | AdvisorShares Pure Cannabis ETF | Learn more > |
| 4 | MJ | ETFMG Alternative Harvest ETF | Learn more > |
| 5 | TOKE | Cambria Cannabis ETF | Learn more > |
1. AdvisorShares Pure US Cannabis ETF(MSOS)
Copy link to section- Assets: $976 million
- Expense ratio: 0.83%
- Year of inception: 2020
- 5-year performance: N/A
- Dividend yield: N/A
The AdvisorShares Pure US Cannabis ETF (MSOS) is one of the best cannabis ETFs to invest in today. It is a fund that invests in cannabis companies from the United States.
The biggest names in the fund are the likes of Green Thumb Industries, Curaleaf Holdings, Trulieve Cannabis, Verano Holdings, and Cresco Labs.
Like other cannabis ETFs, MSOS has not done well in the past few years as it has dropped by over 79% in the past three years. However, there is a likelihood that it will rebound if the industry does well. For example, it has rebounded by over 45% in the past 12 months.
2. Amplify Seymour Cannabis ETF (CNBS)
Copy link to section- Assets: $31 million
- Expense ratio: 0.75%
- Year of inception: 2019
- 5-year performance: N/A
- Dividend yield: N/A
The Amplify Seymour Cannabis ETF is an ETF that also invests in companies in the cannabis industry. It is an active fund that was managed by Tim Seymour at the time of writing. Over the years, he has accumulated over 20 years and is one of the most popular investors in the industry.
The ETF has invested in some of the leading companies in the industry like Green Thumb, Trulieve Cannabis, Curaleaf, and Verano Holdings. The other names in the fund are Cresco Labs and Cronos Group.
These companies are in different sectors like retail, cultivation, hemp, commercial services, and consumption services. While the fund has risen by 29% in the past 12 months, it has crashed by over 81% in the past three years.
3. AdvisorShares Pure Cannabis ETF (YOLO)
Copy link to section- Assets: $44 million
- Expense ratio: 1.01%
- Year of inception: 2019
- 5-year performance: -84%
- Dividend yield: N/A
The YOLO ETF tracks Canadian and U.S. companies in the healthcare, real estate, and consumer products sectors, and it is heavily weighted toward mid-cap companies. Like CNBS, a minimum of 80% of the companies that comprise the YOLO fund obtain at least half of their net revenue from the cannabis and hemp business.
Within the AdvisorShares Pure Cannabis ETF, there are also some companies based in the United Kingdom and Israel. The holdings within YOLO are diverse, featuring pharmaceutical players, biotechnology companies and agricultural entities. Importantly, YOLO is an ETF engineered for the long term, making it an ideal candidate for a buy-and-hold strategy.
While this ETF’s solid performance is part of the reason it is on this list, the main reason is the sheer level of variety within its basket of stocks. Just take its top three holdings: Village Farms International, Innovative Industrial Properties, and Green Thumb Industries. The first is a grower of tomatoes, cucumber, bell peppers, and Cannabis; the second is a Cannabis-focused REIT, and the third is a manufacturer and distributor of branded cannabis products.
The main con of investing in this fund is that it is highly expensive with an expense ratio of 1.01%, which is highly expensive considering that most ETFs have a ratio of less than 0.25%.
4. ETFMG Alternative Harvest ETF (MJ)
Copy link to section- Assets: $246 million
- Expense ratio: 0.78%
- Year of inception: 2015
- 5-year performance: 8.8%
- Dividend yield: -88%
Launched in 2015, MJ is one of the largest Cannabis fund on this entire list, with around $246 million in assets under its management. It tracks the performance of the Prime Alternative Harvest Index, which was created to allow investors to capitalise on both event-driven news and long-term trends in the cannabis industry.
While MJ only holds around 30 stocks, they are some of the biggest names in the Cannabis space such as Tilray, Canopy Growth and GrowGeneration. In addition, this fund has a high annual turnover, which is a testament to the work of the fund managers who regularly flip stocks to create both income and dividends.
The key reason the ETFMG Alternative Harvest ETF is on our list is its sheer scale and the proactiveness of its fund managers. Scale offers security, as the more money in the fund, the less likely it is that a sudden outflow could force it into selling stocks at an inopportune time, while a proactive manager can seek out the best opportunities as soon as they arise. It also has a high dividend yield of about 8.8%.
5. Cambria Cannabis ETF (BATS: TOKE)
Copy link to section- Assets: $12 million
- Expense ratio: 0.42%
- Year of inception: 2019
- 5-year performance: N/A
- Dividend yield: N/A
The TOKE ETF has anywhere from 20 to 50 of the top marijuana players within its portfolio, and its performance has been steady in the last few years.
Its top four holdings are Tilray, Innovative Industrial Properties, Constellation Brands, and British American Tobacco, and these form part of a blended focus consisting of micro-, small- and mid-cap stocks. With 80% of its net assets invested in Cannabis companies, TOKE is a fast and easy way for investors to gain exposure to the performance of a wide basket of weed equities.
The main reason the Cambria Cannabis ETF has found a place on this list is its level of diversification. Its holdings are some of the most varied on this list, making it better equipped to cope with the pressures of market volatility.
Where to buy the best cannabis ETFs
Copy link to sectionIf you want to invest in a cannabis ETF, finding a reliable, low-fee broker is key; these are the online ETF platforms that facilitate your trades for you. To save you some time and effort, rather than you having to scour the internet for hours to find a high-quality service, we have listed our top picks below. Click on one to check it out and see what it has to offer.
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This information is NOT relevant to EU residents who are to be serviced by EU subsidiaries of the Plus500 Group, such as Plus500CY Ltd, authorized by CySEC (Reg. 250/14). Different regulatory requirements apply in Europe, such as leverage limitations and bonus restrictions.
What is a Cannabis ETF?
Copy link to sectionA cannabis ETF is an exchange-traded fund (ETF) that features companies participating in the cultivation, distribution, or sale of marijuana and related products. This can include the dried flower itself, as well as seeds, edibles, oils, and more.
An ETF is a fund that trades on a stock exchange like a normal stock. However, a single ETF consists of multiple stocks from the same industry, in this case, the top cannabis stocks. This means that holding an ETF gives you exposure to the performance of an entire sector rather than a single company.
Because your investment is diversified between different stocks, you do not have the single-company risk that comes with investing in a solitary stock. So, should one company within your chosen ETF perform poorly, others may make up for it.
Are cannabis ETFs a good investment?
Copy link to sectionThey can be, but only if you keep your expectations in check and recognise that the market has historically overvalued weed companies. Take Tilray, one of the largest weed stocks. For a brief period, it shot up to a $20 billion valuation – the same as aviation giant, American Airlines. However, Tilray was only generating $200 million in annual revenue, while American Airlines was bringing in $45 billion.
While weed has been legalised in an increased number of countries and North American states, it remains illegal for recreational use in most jurisdictions. Moreover, its classification by the DEA for much of the past century as a Schedule 1 drug alongside damaging substances like Heroin has damaged its reputation.
However, there are some reasons to be positive about the prospects of this industry and some consider that they’re one of the best ETFs to buy. Notably, a greater number of countries and states now recognise the potential benefits of medicinal marijuana. In addition, the growth of the market should be taken into consideration: over 12% of Americans now use cannabis, while sales and support for the industry have surged in the past year as it edges towards a $100 billion valuation.
Methodology: How we choose the best cannabis ETFs
Copy link to sectionAt Invezz, we are dedicated to helping investors make informed decisions by providing authoritative, accessible, and engaging advice and recommendations. Our curated section of the best Exchange-Traded Funds (ETFs) is carefully selected by our team of experienced market analysts and reviewed by a sub-editor. This methodology outlines the rigorous process we follow to ensure our ETF recommendations are up-to-date, reliable, and insightful.
- Analyst research & recommendations: Our seasoned market analysts use their in-depth sector knowledge to identify ETFs with strong potential, ensuring they meet high standards of performance, liquidity, and market potential.
- ETF evaluation: We evaluate ETFs based on their underlying assets, historical performance, expense ratios, and tracking accuracy, alongside macroeconomic factors and sector trends.
- Fund performance reports: We assess ETFs through the latest performance reports, analyzing key metrics like returns, volatility, expense ratios, and assets under management (AUM).
- Sector analysis and external recommendations: Our detailed sector analysis, combined with recommendations from reputable sources like Barron’s and Zacks, provides an additional layer of validation for our selections.
- Quarterly review & refresh: We update our curated ETF list quarterly, re-evaluating each ETF based on the latest reports, industry developments, and market conditions to ensure our recommendations reflect the most current information available.
