Best cannabis ETFs to buy in 2024

Cannabis ETFs give you exposure to a selection of some of the top-performing cannabis stocks. See the best weed ETFs chosen by our experts below and find out how to invest.
Updated: Oct 11, 2022

Trade your favourite markets with our top-rated broker, eToro.


77% of retail CFD accounts lose money.

Visit site

The cannabis industry has become an immensely popular growth sector as the drug has become more socially acceptable. With more political support for legalisation in the United States, weed ETFs offer a great way to profit from the entire industry’s growth. Look out for the top options below and find out what makes these ETFs a good investment.

What are the top cannabis ETFs to buy?

Copy link to section

Our 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 tickerETF nameWhere to Trade
1THCXThe Cannabis ETF

77% of retail CFD accounts lose money.

2CNBSAmplify Seymour Cannabis ETF

77% of retail CFD accounts lose money.

3YOLOAdvisorShares Pure Cannabis ETF

77% of retail CFD accounts lose money.

4MJETFMG Alternative Harvest ETF
Buy MJ

77% of retail CFD accounts lose money.

5TOKECambria Cannabis ETF

77% of retail CFD accounts lose money.

List selected by our team of analysts, updated July 21st, 2022

1. The Cannabis ETF (NYSEARCA: THCX)

Copy link to section

The aptly named Cannabis ETF follows an index of companies involved in both the medical and recreational cannabis industries. The fund was designed as a convenient way for investors to gain exposure to a basket of stocks within the hemp and legal marijuana markets. 

All of THCX’s holdings are based in the United States and Canada, and they follow a mixed blend of growth and value stocks. That means there are some stable investments alongside those with a higher risk:reward ratio. Its top holdings are Tilray, Canopy Growth, and Village Farms International. 

The main reason The Cannabis ETF is on our list is the strength of its holdings and its strategy of diversification. In recent years, it has produced solid performances and includes a greater than 1% dividend yield to sweeten the deal. 

Sign-up & trade THCX ETF

77% of retail CFD accounts lose money.

2. Amplify Seymour Cannabis ETF (NYSEARCA: CNBS)

Copy link to section

CNBS is an actively managed Cannabis ETF, which means fund managers buy and sell stocks within the ETF in an effort to provide returns to investors. At least 80% of the companies within the Amplify Seymour Cannabis ETF are pure-play cannabis companies that achieve 50% or more of their revenues via the cannabis and hemp sectors.

CNBS has performed well in recent years, and its primary holdings include Tilray, Canopy Growth, Village Farms International, and WM Technology. Most of the CNBS portfolio resides in North America and Canada, though there is an Israeli component to the fund as well. 

The sheer growth of CNBS and its blended approach of mid-cap and small-cap companies are attractive. It offers a balanced investment to different parts of the sector and that is why it has found a place in our top 5. 

Sign-up & trade CNBS ETF

77% of retail CFD accounts lose money.

3. AdvisorShares Pure Cannabis ETF (NYSEARCA: YOLO)

Copy link to section

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-focussed REIT, and the third is a manufacturer and distributor of branded cannabis products. 

Sign-up & trade YOLO ETF

77% of retail CFD accounts lose money.

4. ETFMG Alternative Harvest ETF (NYSEARCA: MJ)

Copy link to section

Launched in 2015, MJ is the largest Cannabis fund on this entire list, with around $2 billion 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.

Sign-up & trade MJ ETF

77% of retail CFD accounts lose money.

5. Cambria Cannabis ETF (BATS: TOKE)

Copy link to section

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.

Sign-up & trade TOKE ETF

77% of retail CFD accounts lose money.

Where to buy the best Cannabis ETFs

Copy link to section

If 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.

Min. Deposit
$ 10
Best offer
User Score
Up to $240 bonus!
Deposit with ACA, Wire, Pay with my bank
Invest for dividends and get payout on stocks on Ex-Dividend day
Start Trading
Payment Methods:
Bank Transfer, Credit Card, Debit Card, PayPal, Wire Transfer
Full Regulations:

77% of retail CFD accounts lose money.

Min. Deposit
$ 100
Best offer
User Score
Trade +2000 CFDs on Shares, Options, Commodities & more
Unlimited risk-free Demo Account
0 commissions & attractive spreads with up to 1:5 leverage
Start Trading
Payment Methods:
American Express, Apple Pay, Bank Transfer, Credit Card, Debit Card, Discover, Google Pay, Mastercard, PayPal, SEPA, Trustly, Visa, , skrill
Full Regulations:
ASIC, FCA, FSA, MAS, cysec-250-14-regulator, isa-regulator

82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Min. Deposit
Best offer
User Score
Diverse Stock Selection: Interactive Brokers offers a wide range of domestic and international stocks, providing investors with a diverse array of options for their portfolios.
Advanced Trading Tools: Investors benefit from real-time market data and advanced tools, empowering them to make informed decisions and execute trades with precision in the dynamic stock market.
Easy Portfolio Management: Interactive Brokers makes it simple to handle your investments by allowing you to easily switch between stocks and other assets on one platform, streamlining the way you manage your overall portfolio.
Start Trading
Payment Methods:
ACH, Bank Wire, Check
Full Regulations:

What is a Cannabis ETF?

Copy link to section

A 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, 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 section

They 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.

Sign up to a broker to buy Cannabis ETFs

Latest cannabis news

Copy link to section
The recent IPO Trends Report by Ernst & Young (EY), released in November, announced that India has emerged as the global leader in the number of IPOs year-to-date so far for 2023. According to the Economic Times of India, the country’s IPO market has raised over $2 billion in 2023 so far. For ex
The Nikkei 225 index and USD/JPY exchange rate bounced back on Monday as investors refocused on next week’s Bank of Japan (BoJ) interest rate decision. The index, which tracks the biggest Japanese companies, rose to over ¥32,790, higher than last week’s low of ¥32,191. Meanwhile, the Japanese yen ro
NextEra Energy Partners (NYSE: NEP) stock price has been hammered this year. The shares plunged to a low of $19.59 in October as investors dumped solar and wind companies. In all, the stock has plunged by more than 67% from its highest point this year. This crash has brought its total market cap to
23andMe (NASDAQ: ME) stock price has had a remarkable fall from grace amid sustained unprofitability and a recent hack that could cost it millions of dollars. After peaking at $18.15 in February 2021, the shares have plunged to below $1. This plunge has brought its market cap from over $6.97 billion
November was a strong month for both Qorvo Inc (NASDAQ: QRVO) and Qualcomm Inc (NASDAQ: QCOM) but a Morgan Stanley analyst recommends owning only one of them. Qorvo stock has another 32% upside Joseph Moore upgraded Qorvo this week to overweight and raised his price target to $134 which suggests abo
Microsoft Corp (NASDAQ: MSFT) ended 1.0% up on Friday even after a report that the U.S. Federal Trade Commission is looking into its investment in OpenAI. FTC hasn’t launched a formal investigation yet Anonymous sources told Bloomberg today that the agency is examining whether billions of dollar tha

Sources & references
Risk disclaimer
Charlie Hancox
Financial Writer
Charlie is a Financial Writer for Invezz. He covers commodities, cryptocurrencies, and breaking news. Prior to joining Invezz he helped grow Crux Investor into the fastest-growing... read more.