Investing In Cannabis ETFs For 2022
Are you searching for the best marijuana stocks to buy in 2022? The greatest cannabis stocks have seen major market declines for more than a year. Delays in federal cannabis legislation in the United States are one of the main factors behind these decreases. In the last several months, new moves in the House to enact federal marijuana legalization have begun. The MORE Act was passed by the House in May, and the SAFE Banking Act is also circulating in Congress for another attempt to establish cannabis banking. In principle, the SAFE Banking Act would be a significant gain for the cannabis business, which is already experiencing a rise in dispensary robberies due to its reliance on cash.
At the present time, most of these top US marijuana stocks are not permitted to trade on major US stock exchanges such as the Nasdaq and the NYSE due to current government regulation. Instead, they now trade on the Over the Counter (OTC) Markets, which have restricted accessibility to institutional and new retail investors. Larger investing institutions seldom trade OTC stocks, and the fastest-growing retail trading platforms, such as Robinhood Markets, Inc. (NASDAQ: HOOD) and WeBull, also avoid them. However, marijuana ETFs provide a chance to invest in some of these businesses.
Marijuana ETFs 2022
Marijuana exchange-traded funds (ETFs) allow investors to obtain exposure to cannabis companies that are not yet offered on larger exchanges. In general, a cannabis ETF will follow a certain index, sector, commodity, or other asset and trade like a regular stock on the stock exchange. It’s critical to investigate marijuana ETFs and their market performance before investing in them. Finding the best cannabis ETFs that hold the companies you want to invest in will allow you to buy throughout the cannabis sector with just one position. As we continue seeing market declines in May let’s look at 4 top marijuana ETFs for your watchlist in 2022.
Top Marijuana ETFs To Watch Right Now
- 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 to reach $1 billion in assets under management in the United States. This top marijuana ETF’s holdings and assets are mostly focused on US cannabis companies. The majority of the ETF’s assets include vertically integrated multi-state operators in the United States, leading cannabis REITs in the United States, CBD enterprises, pharmaceutical companies, and hydroponic suppliers. MSOS ETFs now 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 $13.85 on May 19th, down 23.40% in the past month. This ETF is down 45.88% year to date, with a 52-week price range of $13.86-$42.06. 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 cannabis and hemp production, giving investors exposure to the worldwide cannabis market. This cannabis ETF now has access to US MSOs thanks to swaps. WM Technology, Inc. (NASDAQ: MAPS), Hydrofarm Holdings Group, Inc. (NASDAQ: HYFM), and AFC Gamma (NASDAQ: AFCG), Inc. are all large holdings in CNBS due to the inclusion of US cannabis companies. Its other stakes include Tilray, Inc. (NASDAQ: TLRY) and GrowGeneration Corp. (NASDAQ: GRWG).
On May 19th, the CNBS ETF finished at $8.57 after losing 21.01 percent in the past month of trading. The ETF is down 39.35% year to date, with a 52-week price range of $7.83-$27.23. Amplify ETFs’ total assets under management surpassed $5 billion in November.
AdvisorShares Pure Cannabis ETF YOLO
The company’s second top cannabis ETF, AdvisorShares Pure Cannabis ETF, or YOLO ETF invests in both local and worldwide cannabis stock companies in the hopes of long-term wealth gain. Village Farms International, Inc. (NASDAQ: VFF), WM Technology, Inc. (MAPS), Canopy Growth Corporation (NASDAQ: CGC), and Tilray Brands, Inc. are among the ETF’s holdings (TLRY). In essence, this ETF would provide investors with exposure to some of the most well-known cannabis companies in the US and Canada. YOLO ETF closed on May 19th at $6.89 down 23.03% in the past month. Currently, the ETF has a 52-week range of $6.40-$21.95 and is down 46.31% year to date.
ETFMG Alternative Harvest ETF (MJ)
Alternative Harvest ETF was one of the first and largest exchange-traded funds (ETFs) to focus on the cannabis sector. The MJ ETF currently has $567.15 million in net assets. In reality, MJ is still one of the world’s largest cannabis ETFs, as well as the first and only U.S.-listed ETF to focus only on the global cannabis business. The MJ fund gives investors exposure to sections of the cannabis industry that are seeing therapeutic improvements, regulatory changes, and M&A 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 May 19th at $7.78 down 14.14% in the last month of trading. At the present time, MJ ETF has a 52-week price range of $6.85-$22.65 and is down 29.78% year to date.
Building Wealth In A Down Market With Marijuana ETFs
Any investment in the current market has its inherent risk due to current volatility. Following how an ETF performs in the market and keeping up with current potential catalysts for the cannabis sector can help you produce gains with cannabis ETFs. In the next few years, the cannabis industry will more than double in size. Investing in a marijuana ETF is one way to start a position in the broader cannabis market with one trade.