U.S. Markets closed

Marijuana ETFs Head-to-Head

Neena Mishra
Below we share with you four top-ranked T. Rowe Price mutual funds. Each has earned a Zacks Mutual Fund Rank 1 (Strong Buy).

Investor interest in marijuana stocks continues to rise, particularly since legalization of pot for recreational use in Canada last year. The ETFMG Alternative Harvest ETF (MJ) is one of the best performing ETFs so far this year.

In the US, 33 states and the District of Columbia have legalized marijuana’s medical use and supply, and ten states now allow marijuana for recreational use but it remains illegal at the federal level.

A number of alcohol companies are investing in marijuana as alcohol consumption is going down in the US while cannabis consumption has been rising. Cannabis infused beverages are set to become legal in Canada later this year.

There is rising interest in the medical benefits of marijuana too, particularly in areas like pain management and epilepsy treatment.

According to Barclays, the US cannabis market would be $28 billion if legalized today, growing to $41 billion by 2028. However, marijuana stocks are usually quite volatile. ETFs provide diversified exposure to this hot but volatile space.

MJ has been quite popular with investors and has gathered about $1.3 billion in assets, as it was the only ETF available to investors to play the cannabis craze. Its top holdings include GW Pharmaceuticals (GWPH), Aurora Cannabis (ACB), Canopy Growth (CGC), Cronos (CRON) and Tilray (TLRY).

With the launch of actively managed AdvisorShares Pure Cannabis ETF (YOLO) last month, investors have one more option to get exposure to this space. And there are some more pot ETFs in the pipeline.

To learn more about marijuana investing and these ETFs, please watch the short video above.

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
 


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
GW Pharmaceuticals PLC (GWPH) : Free Stock Analysis Report
 
Canopy Growth Corporation (CGC) : Free Stock Analysis Report
 
Aurora Cannabis Inc. (ACB) : Free Stock Analysis Report
 
Cronos Group Inc. (CRON) : Free Stock Analysis Report
 
Tilray, Inc. (TLRY) : Free Stock Analysis Report
 
ADVSR-PURE CANN (YOLO): ETF Research Reports
 
ETFMG Alternative Harvest ETF (MJ): ETF Research Reports
 
To read this article on Zacks.com click here.
 
Zacks Investment Research
 
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report