Select ETFs: Global Cannabis

The outlook for the cannabis industry remains strong, especially with public support for cannabis legalization at an all-time high. There are many other significant applications for cannabis and THC-based medicines and treatments, ranging from epilepsy to cancer treatment to non-opioid pain management.

Many investors are considering whether to dip their toes into the cannabis industry. Investing in marijuana stocks can be challenging and even confusing for investors, with the current legal and regulatory regime adding another layer of complexity. For many investors, the obvious choice is to invest in a cannabis-focused exchange-traded fund (ETF). Currently, there are a handful of ETFs that offer exposure to the cannabis industry.

Best for Trading

ETFMG Alternative Harvest ETF (MJ)

Expense Ratio: 0.75%

The ETFMG Alternative Harvest ETF tracks the Prime Alternative Harvest Index, designed to measure the performance of companies within the cannabis ecosystem benefitting from global medicinal and recreational cannabis legalization initiatives.

MJ® was the first pure-play cannabis ETF listed in the U.S. The portfolio is weighted by market cap or equally based on a proprietary system.

Best for Holding

Cambria Cannabis ETF (TOKE)

Expense Ratio: 0.42%

TOKE is an actively-managed portfolio of globally-listed companies related to cannabis and hemp.. The Cambria Cannabis ETF seeks capital appreciation from investments in the global equity markets that have exposure to the broad cannabis industry. The Fund will target investing in approximately 20 to 50 of the top companies with exposure to the broad cannabis industry based on Cambria’s determination as to their exposure to the industry.

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