Are Cannabis ETFs A Buy In September?
Do you plan to buy the best marijuana stocks as a long-term investment? In general, considering the market volatility connected with the top cannabis stocks to watch right now, finding long-term investments with stability may be difficult. Cannabis ETFs have been among the top performers on the marijuana stock market over the long term. The fact that many marijuana ETFs provide shareholders dividends—still uncommon for cannabis stocks—is one factor contributing to this. As a result, several institutional investors and private equity firms have expressed interest in these top marijuana ETFs.
Due to existing governmental restrictions, the majority of these top US marijuana stocks are not allowed to trade on prominent US stock exchanges like the Nasdaq and NYSE. Currently, they trade on OTC markets, which have more difficult access for institutional investors and new retail investors. The fastest-growing retail trading platforms like Robinhood Markets, Inc. (NASDAQ: HOOD) and WeBull likewise avoid OTC stocks, as do larger investing firms. On the other hand, marijuana ETFs make it easy to invest in some of these companies.
Access to cannabis companies that aren’t yet listed on major stock exchanges is made possible through cannabis exchange-traded funds (ETFs). A cannabis ETF, which trades on the stock exchange like a regular stock, will typically track an index, sector, commodity, or other assets. By locating the top cannabis ETFs that include the companies you want to invest in, you may invest in the whole cannabis industry with just one stake. As the market gains in September, let’s take a look at four of the top marijuana ETFs to watch in 2022.
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Top Cannabis ETFs For September 2022
- 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 first marijuana ETF in the US with more than $1 billion in assets under management is AdvisorShares Pure US Cannabis ETF. The majority of this top marijuana ETF’s holdings and assets are cannabis businesses from the United States. In general, vertically integrated multi-state US operators, top US cannabis REITs, CBD businesses, corporations and businesses, and hydroponic suppliers hold 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. (OTC: CRLBF) are among the MSOS ETFs that are now available.
MSOS ETF closed at $12.18 on September 8th, up 3.84% in the past month of trading. This ETF is down 52.40% year to date, with a 52-week price range of $10.08-$33.80. Currently, the MSOS ETF does not pay a dividend.
Amplify Seymour Cannabis ETF (CNBS)
The Amplify Seymour Cannabis ETF gives investors exposure to the international cannabis market by investing more than 80% of its assets in businesses that make money from the cultivation of cannabis and hemp. This cannabis ETF now has access to US MSOs as a result of swaps. CNBS holds significant holdings in WM Technology, Inc. (NASDAQ: MAPS), Hydrofarm Holdings Group, Inc. (NASDAQ: HYFM), and AFC Gamma (NASDAQ: AFCG), Inc. as a result of the inclusion of US cannabis firms. Its other holdings include GrowGeneration Corp. (NASDAQ: GRWG) and Tilray, Inc. (NASDAQ: TLRY).
On September 8th the CNBS ETF finished at $7.22 after losing 2.43 percent in the past month of trading. The ETF is down 48.90% year to date, with a 52-week price range of $6.49-$2044. Amplify ETFs’ total assets under management surpassed $5 billion in 2021.
AdvisorShares Pure Cannabis ETF YOLO
The second most popular cannabis ETF in the market is AdvisorShares Pure Cannabis ETF, commonly known as YOLO ETF, which invests in domestic and international cannabis companies with the goal of creating long-term wealth. The ETF owns businesses like WM Technology, Inc. (MAPS), Canopy Growth Corporation (NASDAQ: CGC), Village Farms International, Inc. (NASDAQ: VFF), and Tilray Brands, Inc. (TLRY). Through this ETF, investors would effectively have access to some of the most well-known cannabis companies in the US and Canada.
YOLO ETF closed on September 8th at $5.29 down 7.51% in the last month of trading. Currently, the ETF has a 52-week range of $5.19-$18.34 and is down 59.31% year to date.
ETFMG Alternative Harvest ETF (MJ)
Alternative Harvest ETF was one of the first and largest exchange-traded funds with a focus on cannabis (ETFs). The MJ ETF’s net asset value is currently $386.32 million. MJ is still one of the largest cannabis ETFs in the world and the first and only one with a U.S. listing that entirely concentrates on the international cannabis market. Investors are exposed to cannabis business segments that are going through legal, medical, and merger and acquisition activity through the MJ fund. Tilray, Inc. (NASDAQ: TLRY), Canopy Growth Corporation (NASDAQ: CGC), and GrowGeneration Corp. are three of the top Canadian marijuana companies represented in the Alternative Harvest ETF (NASDAQ: GRWG). The MJ ETF delivers a dividend yield of about 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 September 8th at $5.63 down 7.25% in the last month of trading. At the present time, MJ ETF has a 52-week price range of $5.41-$16 and is down 49.19% year to date.
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Investing In Marijuana ETFs For Long Term In 2022
Due to the volatility of the current market, every investment carries some risk. By monitoring an ETF’s performance in the market and current potential catalysts for the cannabis industry, it might be possible to profit from cannabis ETFs. The cannabis market will more than double in size over the following five years. Investing in a marijuana ETF is one way to make a one-trade entry into the larger cannabis industry (ETF).