How To Invest In Cannabis Stocks In June 2021
Investing in top marijuana stocks in 2021 is beginning to look like it may deliver gains for investors. After months of market declines in the best pot stocks, June is bringing some upward momentum to the cannabis sector. In general, the cannabis industry is growing at an extraordinary rate in the US and across the world. US cannabis companies have used mergers and acquisitions to expand rapidly across the growing market.
Now with the markets heating up a cannabis sector that has been consolidating at lower prices could be primed to reach highs seen earlier in February. But many analysts also believe that cannabis stocks have the significant upward potential for years to come. For long-term investors vertically integrated marijuana stocks are considered volatile and make it difficult for the long hold.
In addition, to get full exposure to the different elements of the cannabis industry you would have to invest in more than one top marijuana stock. Because of this, it may become difficult for new investors to keep track of the different positions they invest in. But there are simplified ways to get exposure to the cannabis sector for investors that prefer to be in one position in the market.
Investing In Cannabis ETFs For Marijuana Industry Exposure
Cannabis ETFs have become more popular among traders looking to invest in the cannabis industry. For those that don’t know ETFs are exchange-traded funds that are in many ways like a mutual fund with the exception that it trades in the open market like a regular stock. This type of security tracks an index, sector, commodity, or other asset and contains many different types of investments.
For marijuana ETFs, most are giving investors exposure to a particular area of the market. Some are holding assets based in the Canadian cannabis market others are focused on the US. With this in mind, we can take a look at some marijuana ETFs that could see some potential gains as the cannabis market grows.
For investors, it’s always important to research and do their own due diligence before investing. As the possibility grows for the US to have federal cannabis reform in 2021 these top marijuana ETFs in 2021 could be the best way to invest in the cannabis market for the long term.
Top Marijuana ETFs To Add To Your Watchlist
- AdvisorShares Pure US Cannabis ETF (NYSEArca:MSOS)
- Amplify Seymour Cannabis ETF (NYSEAcra:CNBS)
- ETFMG Alternative Harvest ETF (NYSEArca:MJ)
AdvisorShares Pure US Cannabis ETF (MSOS)
When looking for cannabis ETFs in 2021 AdvisorShares Pure US Cannabis ETF is the first US marijuana ETF to surpass $1 billion in assets under management. Specifically, this marijuana ETF is focusing on US cannabis companies for their holdings and assets. Primarily, the ETF has assets that include the US vertically integrated multi-state operators, top U.S. cannabis REITs, CBD companies, pharmaceutical companies, and hydroponic suppliers. In particular, MSOS ETFs majority holdings are Trulieve Cannabis Corp. (TCNNF), Curaleaf Holdings, Inc. (CURLF), Green Thumb Industries Inc. (OTC: GTBIF), and Cresco Labs Inc. (OTC: CRLBF).
Currently, US cannabis companies have performed much stronger than Canadian cannabis companies in 2021. In the first quarter, most US companies have delivered strong earnings while the Canadian companies have struggled to perform. As it stands the cannabis sector is trading at some of its lowest market value in 2021. This has created an opportunity for cannabis investors to start a position in MSOS ETF at a price point. From these recent levels cannabis ETFs could deliver substantial upward momentum this summer for traders.
MSOS ETF is trading at $39.98 on June 25th up 10.08% year to date. In February MSOS ETF reached a high of $55.91 and is up 5.13% in the past five trading days. According to analysts at Wallet Investor MSOS ETF has a 1year price forecast target of $63.751 per share. This would be an increase of 59.77% from its current trading price. For this reason, MSOS ETF could be one of the best marijuana ETFs to invest in for the summer of 2021.
Amplify Seymour Cannabis ETF (CNBS)
For investors looking for more global exposure to the cannabis industry, there is Amplify Seymour Cannabis ETF. Specifically, this is a fund that provides investors exposure to the global cannabis industry with more than 80% of its holdings in companies generating revenue from cannabis and hemp production. Although this cannabis ETF has a global approach it recently announced it now has the ability to access US MSOs via swaps. At the present time, the ETF has completed both legal and operational work and is able to add portfolio exposure to this area of the cannabis market. Now with the addition of US cannabis companies, CNBS has large holdings of WM Technology, Inc. (NASDAQ:MAPS), and Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM).
CNBS ETF is trading at $25.78 on June 25th up 49.63% year to date. In February CNBS ETF saw a high of $40.65 and has gained 8.21% in the past month. According to analysts at Wallet Investor CNBS ETF has a 1-year forecast price of $45.877 per share. In essence, this would represent an increase of 77.95% from its current trading price. With this in mind, CNBS ETF could be a top marijuana ETF for long-term investing in 2021.
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ETFMG Alternative Harvest ETF (MJ)
One of the first and largest ETFs to target the cannabis market is MJ ETF with net assets of $1.71 billion. Primarily, Alternative Harvest ETF’s major assets are in holdings from top Canadian cannabis companies like Tilray, Inc. (NASDAQ: TLRY), Canopy Growth Corporation (NASDAQ:CGC), and GrowGeneration Corp. (NASDAQ:GRWG). As an incentive for the long-term investor MJ ETF has a dividend with an estimated 2.71% dividend yield. With a dividend, MJ ETF becomes a much more attractive long-term hold in the cannabis sector.
MJ ETF is trading at $20.74 on June 25th up 46.06% year to date. In February MJ ETF saw a high of $34.58 and has gained 2.64% in the past five trading days. According to analysts at Stock Invest are expecting MJ ETF to fall 6.31% during the next 3 months. With. With this in mind, MJ ETF could be a good cannabis ETF to add to your watchlist before July.
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