Investing In Marijuana Stocks In Q4 2021
As the markets continue to pull back, are you looking for ways to invest in top marijuana stocks? In 2021 the cannabis sector has shown significant market volatility as the year progressed. In Congress, it seems Senate Majority Leader Chuck Schumer stated he will not pass marijuana banking reform before cannabis legalization. This news has caused a selloff for most of the best cannabis stocks to buy. As a result, most pot stocks are trading near their lowest price point in 2021.
For new investors looking to invest in the cannabis industry, October could be an opportunity to start positions at lower entry levels. Rather than investing in one cannabis company some investors are finding ways to get broader exposure to the cannabis industry. Investing in top marijuana ETFs is becoming another way to invest in the cannabis market as the industry grows.
ETFs or exchange-traded funds are a type of security that tracks an index, sector, commodity, or other assets. These securities are sold on the stock exchange the same way regular stocks trade. In general cannabis, ETFs can give an investor exposure to a particular part of the marijuana market. Some of the best marijuana ETFs right now have assets in certain parts of the US cannabis industry. Other Cannabis ETFs are heavily vested in the medicinal cannabis market.
Top Cannabis ETFs In 2021
Investing in cannabis ETFs can give an investor exposure to marijuana stocks in a more manageable fashion. Instead of buying many different marijuana stocks for your portfolio, you can gain exposure to those same companies with one trade. In some cases, investors prefer ETFs for long-term investment because they also provide a dividend. At the present time, there are many marijuana ETFs to choose from. Let’s look at 3 of the best cannabis ETFs in 2021.
Top Marijuana ETFs For Your List In October
- AdvisorShares Pure US Cannabis ETF (NYSEArca:MSOS)
- Amplify ETF Trust – Amplify Seymour Cannabis ETF (NYSEArca:CNBS)
- ETFMG Alternative Harvest ETF (NYSEArca:MJ)
AdvisorShares Pure US Cannabis ETF (MSOS)
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. In specific, the ETF has assets that include US vertically integrated multi-state operators, top U.S. cannabis REITs, CBD companies, pharmaceutical companies, and hydroponic suppliers. For example, MSOS ETF’s majority holdings are in Trulieve Cannabis Corp. (TCNNF), Curaleaf Holdings, Inc. (CURLF), Green Thumb Industries Inc. (OTC:GTBIF), and Cresco Labs Inc. (OTC:CRLBF).
MSOS ETF is trading at $31.44 on September 30th down 5.27% in the last month. This ETF has a 52-week price range of $21.44-$55.91 and is down 14.36% year to date. In September AdvisorShares launched a psychedelics ETF AdvisorShares Psychedelics ETF (NYSEAcra:PSIL) adding to its ever-growing list of assets. As the US cannabis industry continues to grow rapidly MSOS ETF could be a good way to gain exposure to the American cannabis market.
Amplify Seymour Cannabis ETF (CNBS)
Amplify Seymour Cannabis ETF provides investors exposure to the global cannabis industry with more than 80% of its holdings in companies generating revenue from cannabis and hemp production. Recently, this cannabis ETF announced it can access US MSOs via swaps 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, Inhttps://marijuanastocks.com/ticker/?symbol=HYFMc. (NASDAQ:VFF).
CNBS ETF is trading at $19.27 on September 30th down 8.28% in the last month. The ETF has a 52-week price range of $11.02-$40.65 and is up 10.72% year to date. According to analysts at Wallet Investor CNBS ETF has a 1-year price forecast of $17.90. Amplify Seymour Cannabis ETF pays an annual dividend of $0.10 per share, with a dividend yield of 0.49%.
ETFMG Alternative Harvest ETF (MJ)
Last up is Alternative Harvest ETF one of the first and largest ETFs to target the cannabis market. At the present time, MJ ETF has net assets of $1.61 billion. MJ remains the largest cannabis ETF in the world and the first and only U.S.-listed ETF to target the global cannabis industry directly. Overall, the MJ fund provides investors exposure to areas of the cannabis sector which continues to see medicinal advancements, regulatory changes, and M&A activity. In Specific, Alternative Harvest ETF major assets are in holdings from top Canadian cannabis companies like Tilray, Inc. (NASDAQ:TLRY), Canopy Growth Corporation (NASDAQ:CGC), and GrowGeneration Corp. (NASDAQ:GRWG). For the long-term investor, MJ ETF has a dividend with an estimated 1.60% dividend yield. With a dividend, MJ ETF becomes a much more attractive long-term hold in the cannabis sector.
MJ ETF is trading at $14.40 On September 30th down 13.12% in the last month. This ETF has a 52-week price range of $10.12-$34.58 and is up to .063% year to date. According to analysts at Wallet Investor, MJ ETF has a 1-year price forecast of $19.376 per share. For investors looking for ways to invest in the cannabis market, MJ ETF could be a top marijuana ETF for your watchlist in 2021. In September the company launched a new cannabis ETF ETFMG U.S. Alternative Harvest ETF (NYSEArca:MJUS) solely focused on the US cannabis market.