Best Marijuana ETFs To Buy In 2022? 4 For Your Watchlist In Q2
Is It Time To Start Nibbling On Top Marijuana ETFs Right Now?
Top Cannabis ETFs To Watch In June
Are you looking for the best marijuana stocks to buy now that the markets have reached new lows? The whole market fell considerably in the third week of trading in June due to recession concerns. Morgan Stanley's top analysts now say there's a 50% chance we'll enter a recession, although it's not expected to be severe. Even though current market sentiment has caused reductions in the best marijuana stocks to watch, the cannabis sector will face other challenges in 2022.
One of the primary causes of these declines is delays in federal cannabis regulation in the United States. New efforts in the House to approve federal marijuana legalization have emerged in the last few months. In theory, the SAFE Banking Act would be a huge win for the cannabis industry, which is already seeing an increase in dispensary robberies owing to its cash-based business model.
Top Marijuana Stocks And Leading Cannabis ETFs
Due to current government regulations, most of these top US marijuana stocks are not authorized to trade on major US stock exchanges such as the Nasdaq and the NYSE. Instead, they now trade on the Over the Counter (OTC) Markets, which have limited institutional and new retail investors' access. OTC equities are rarely traded by larger investment firms, and the fastest-growing retail trading platforms, such as Robinhood Markets, Inc. (NASDAQ: HOOD) and WeBull, avoid them as well. Marijuana ETFs, on the other hand, offer a way to invest in some of these companies.
Marijuana exchange-traded funds (ETFs) give investors access to cannabis companies that aren't yet listed on major stock markets. In general, a cannabis ETF will track a certain index, sector, commodity, or other asset and trade on the stock exchange like a regular stock. Finding the best cannabis ETFs that contain the companies you want to invest in will allow you to invest in the whole cannabis industry with just one position. As we continue to observe market dips in June, let's look at four of the best marijuana ETFs to keep an eye on in 2022.
Best Marijuana ETFs To Add To Your Watchlist In June
- 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 AdvisorShares Pure US Cannabis ETF is the first marijuana ETF in the United States to exceed $1 billion in assets under management. The holdings and assets of this top marijuana ETF are mostly focused on US cannabis companies. Vertically integrated multi-state operators in the United States, top cannabis REITs in the United States, CBD enterprises, pharmaceutical companies, and hydroponic suppliers make up the majority of the ETF's assets. Trulieve Cannabis Corp. (TCNNF), Curaleaf Holdings, Inc. (CURLF), Green Thumb Industries Inc. (OTC: GTBIF), and Cresco Labs Inc. are among the MSOS ETFs now available (OTC: CRLBF).
MSOS ETF closed at $11.81 on June 16th, down 16.36% in the past month. This ETF is down 53.85% year to date, with a 52-week price range of $11.71-$41.39. Currently, the MSOS ETF does not pay a dividend.
Amplify Seymour Cannabis ETF (CNBS)
The Amplify Seymour Cannabis ETF invests more than 80% of its assets in companies that profit from the production of cannabis and hemp, providing investors with exposure to the global cannabis industry. Due to swaps, this cannabis ETF now has access to US MSOs. Due to the inclusion of US cannabis companies, CNBS has big stakes in WM Technology, Inc. (NASDAQ: MAPS), Hydrofarm Holdings Group, Inc. (NASDAQ: HYFM), AFC Gamma (NASDAQ: AFCG), Inc. Tilray, Inc. (NASDAQ: TLRY) and GrowGeneration Corp. are among its other holdings (NASDAQ: GRWG).
On June 16th the CNBS ETF finished at $7.10 after losing 18.86 percent in the past month of trading. The ETF is down 49.75% year to date, with a 52-week price range of $7.01-$26.21. Amplify ETFs' total assets under management surpassed $5 billion in 2021.
AdvisorShares Pure Cannabis ETF YOLO
AdvisorShares Pure Cannabis ETF, or YOLO ETF, is the company's second most popular cannabis ETF. It invests in both domestic and international cannabis stock companies with the goal of gaining long-term wealth. The ETF's holdings include Village Farms International, Inc. (NASDAQ: VFF), WM Technology, Inc. (MAPS), Canopy Growth Corporation (NASDAQ: CGC), and Tilray Brands, Inc. (TLRY). This ETF would essentially provide investors exposure to some of the most well-known cannabis companies in the United States and Canada.
YOLO ETF closed on June 16th at $5.71 down 18.61% in the past month. Currently, the ETF has a 52-week range of $5.65-$21.58 and is down 55.92% year to date.
ETFMG Alternative Harvest ETF (MJ)
Alternative Harvest ETF was one of the earliest and largest cannabis-focused exchange-traded funds (ETFs). The MJ ETF presently has a net asset value of $567.15 million. MJ remains one of the largest cannabis ETFs in the world, as well as the first and only U.S.-listed ETF that focuses only on the global cannabis industry. The MJ fund exposes investors to segments of the cannabis sector that are witnessing medicinal advancements, legal changes, and merger and acquisition activity.
Tilray, Inc. (NASDAQ: TLRY), Canopy Growth Corporation (NASDAQ: CGC), and GrowGeneration Corp. (NASDAQ: GRWG) are among the top Canadian cannabis companies included in the Alternative Harvest ETF. The MJ ETF provides a dividend yield of around 1.75 percent for long-term investors. With a dividend, the MJ ETF becomes a far more appealing long-term cannabis investment.
MJ ETF closed on June 16th at $5.99 down 23.50% in the last month of trading. At the present time, MJ ETF has a 52-week price range of $5.89-$21.25 and is down 45.94% year to date.
Finding The Best ETFs To Invest In Long Term
Due to present market volatility, each investment in the current market carries a risk. Keeping track of how an ETF performs in the market and current possible catalysts for the cannabis industry might help you make money with cannabis ETFs. The cannabis market will more than double in size over the next five years. Investing in a marijuana exchange-traded fund (ETF) is one method to get a foot in the door of the larger cannabis industry with only one trade.