Best Cannabis ETFs For Q2 2022
Top marijuana stocks in 2022 have experienced significant downward momentum to start the year. In general, after peaking in February 2021 most of the cannabis sector has been trending down reaching new 52-week lows in recent trading. These declines are mainly related to delays with US federal marijuana legalization. Another delay was announced before the weekend as Senate Majority Leader Chuck Schumer announced he would delay his formal introduction of the CAOA in Congress until August. With many failed attempts at getting any form of cannabis reform legislation passed many investors have turned away from cannabis stocks.
One major issue US MSOs currently have in the market is the ineligibility to trade on the Nasdaq or NYSE. Instead, leading US cannabis stocks are only able to trade on the OTC Markets limiting their exposure to the broader markets. New retail investors utilizing Robinhood Markets, Inc. (NASDAQ: HOOD) and WeBull are now unable to trade over-the-counter equities. As a result, marijuana stocks are less vulnerable to new investors entering the market.
There are, however, methods for these investors to get involved in this part cannabis industry. Marijuana ETFs are a way for cannabis investors to gain exposure to cannabis stocks that are currently unavailable on larger exchanges. An exchange-traded fund (ETF) is a similar investment to a mutual fund. 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.
Investing In ETFs And The Cannabis Industry
Cannabis ETFs can provide investors with exposure to several aspects of the cannabis sector. Some invest primarily in US cannabis companies, while others provide investors with exposure to the medicinal and auxiliary markets. Cannabis ETFs provide investors exposure to the overall expansion of the cannabis sector because they invest in several companies.
It’s critical to conduct your homework on the best marijuana ETFs available before investing. Examining an ETF’s holdings and assets might assist you in identifying those that are invested in the marijuana stocks you want to buy. Additionally, keeping an eye on how the ETF performs in the market will help you choose the best entry point for your investment. As the cannabis market continues to trade around its lowest levels in a year, let’s take a look at 4 top marijuana ETFs to watch in 2022.
Top Marijuana ETFs For April 2022
- AdvisorShares Pure US Cannabis ETF (NYSEArca: MSOS)
- Amplify Seymour Cannabis ETF (NYSE Arca: CNBS)
- AdvisorShares Pure Cannabis ETF (NYSE Arca: YOLO)
- The Cannabis ETF (NYSE Arca: THCX)
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. In general, this top marijuana ETF’s holdings and assets are mostly focused on US cannabis firms. Vertically integrated multi-state operators in the United States, top cannabis REITs in the United States, CBD firms, pharmaceutical companies, and hydroponic suppliers make up the majority of the ETF’s assets. MSOS ETFs now hold Trulieve Cannabis Corp. (TCNNF), Curaleaf Holdings, Inc. (CURLF), Green Thumb Industries Inc. (OTC: GTBIF), and Cresco Labs Inc. (OTC: CRLBF).
MSOS ETF ended at $18.50 on April 14th, down 6.23% in the past five trading days. This ETF is down 36.23% year to date, with a 52-week price range of $17.67-$19.02. 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 earn revenue from cannabis and hemp cultivation, giving investors exposure to the worldwide cannabis market. As of 2021, this cannabis ETF now has access to US MSOs through swaps. CNBS now owns large positions in WM Technology, Inc. (NASDAQ: MAPS), Hydrofarm Holdings Group, Inc. (HYFM), and AFC Gamma, Inc. (NASDAQ: AFCG), thanks to the inclusion of US cannabis companies. Two more of its assets are Tilray, Inc. (NASDAQ: TLRY) and GrowGeneration Corp. (NASDAQ: GRWG).
On April 14th, the CNBS ETF finished at $11.15 after losing 3.83 percent in past five trading days. The ETF is down 21.12% year to date, with a 52-week price range of $10.45-$27.54. Amplify ETFs’ total assets under management surpassed $5 billion in November.
AdvisorShares Pure Cannabis ETF YOLO
AdvisorShares Pure Cannabis ETF, or YOLO ETF, is the company’s other top cannabis ETF, which invests in both domestic and global cannabis stock instruments in the hopes of long-term capital gain. Village Farms International, Inc. (NASDAQ: VFF), WM Technology, Inc. (MAPS), Canopy Growth Corporation (NASDAQ: CGC), and Tilray Brands, Inc. (TLRY) are among the ETF’s holdings. In essence, this ETF would provide investors with exposure to some of the most well-known cannabis companies in the United States as well as some of the most well-known cannabis companies in Canada. YOLO ETF closed on April 14th at $9.49 down 5.19% in the past five trading days. Currently, the ETF has a 52-week range of $9.05-$22.15and is down 27% year to date.
The Cannabis ETF (THCX)
The Cannabis ETF (THCX) tracks the Innovation Labs Cannabis Index, which provides investors with global exposure to cannabis, hemp, CBD, and pharmaceutical-based cannabis companies. The fund’s assets are invested primarily in the United States and Canada, with a focus on medicines and a combination of value and growth cannabis companies. The THCX ETF’s top holdings include Village Farms International, Inc., Tilray, Inc., GrowGeneration Corp. (GRWG), and Amyris (NASDAQ: AMRS), Inc. This ETF might give investors a lot of exposure to the Canadian and medical portions of the business, as well as other leading ancillary companies.
THCX ETF has a 52-week range of $6.25-$18.65 and is down 22.37% year to date. THCX ETF closed on April 14th at $6.63 up 5.74% in the last month. Right now, THCX ETF is down 1.63% in the past five trading days.