AdvisorShares Pure US Cannabis ETF
Price
$4.83
YTD
—
Expense
0.83%
Yield
—
Best Cannabis & Marijuana ETFs for 2026
Discover the best cannabis and marijuana ETFs for 2026. Compare MJ, MSOS, YOLO and funds investing in the evolving legal cannabis industry.
Complete Guide to Cannabis & Marijuana ETFs in 2026
Cannabis ETFs provide exposure to the rapidly evolving legal marijuana industry across North America and internationally. While the sector has experienced extreme volatility, the long-term legalization trend, growing medical applications, and potential federal rescheduling in the US continue to attract investor interest.
US vs. Canadian Cannabis
Canadian cannabis companies (Tilray, Canopy Growth, Aurora) operate in a fully legal federal market but have struggled with profitability. US multi-state operators (MSOs) like Curaleaf, Trulieve, and Green Thumb operate in a more fragmented state-by-state regulatory environment but generate stronger revenues.
Top Cannabis ETFs
MSOS (AdvisorShares Pure US Cannabis ETF): Focuses exclusively on US cannabis operators, providing exposure to the larger and faster-growing US market. Includes MSOs like Curaleaf, Green Thumb, and Trulieve.
MJ (ETFMG Alternative Harvest ETF): The original cannabis ETF, holding both US and Canadian marijuana companies plus related industries like tobacco and pharmaceuticals.
Risk Warning
Cannabis stocks are extremely volatile and have experienced devastating drawdowns. Federal illegality in the US creates significant regulatory risk, banking limitations, and tax disadvantages (Section 280E). This is a high-risk, speculative sector suitable only for investors who can tolerate potential total loss of investment.
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Frequently asked questions
What is a Cannabis ETF?
A Cannabis ETF is an exchange-traded fund that invests in publicly traded companies involved in the legal marijuana industry, including growers, distributors, and ancillary businesses.
Which are the top Cannabis ETFs in 2026?
The leading Cannabis ETFs are MSOS (AdvisorShares Pure US Cannabis ETF) for US exposure and MJ (ETFMG Alternative Harvest ETF) for a mix of US and Canadian cannabis companies.
What companies are included in MSOS?
MSOS focuses on US multi-state operators like Curaleaf, Trulieve, and Green Thumb Industries.
What companies are included in MJ ETF?
MJ ETF holds both US and Canadian cannabis companies, including Tilray, Canopy Growth, Aurora, and other related industries like tobacco and pharmaceuticals.
Why invest in Cannabis ETFs?
Cannabis ETFs allow investors to gain exposure to the growing legal marijuana industry without picking individual stocks, benefiting from diversification across multiple companies.
What are the main risks of Cannabis ETFs?
Cannabis ETFs are highly volatile, face regulatory uncertainty, banking restrictions, and tax disadvantages under Section 280E in the US, and can suffer significant drawdowns.
How do US and Canadian cannabis companies differ?
Canadian cannabis firms operate under full federal legalization but struggle with profitability, while US multi-state operators (MSOs) operate in a fragmented regulatory environment but generate stronger revenues.
What is Section 280E?
Section 280E is a US tax code that prevents cannabis businesses from deducting normal business expenses, increasing their effective tax rate and reducing profitability.
Are Cannabis ETFs suitable for conservative investors?
No, Cannabis ETFs are speculative and high-risk, suitable only for investors who can tolerate extreme volatility and potential loss of capital.
What is the expense ratio of MSOS?
The MSOS ETF has an expense ratio of 0.83%.
Can I invest in Cannabis ETFs through a regular brokerage account?
Yes, Cannabis ETFs like MSOS and MJ trade like any regular stock or ETF and can be purchased through standard brokerage accounts.
Do Cannabis ETFs pay dividends?
Most Cannabis ETFs offer little to no dividend yield due to the reinvestment of profits and volatility of the underlying cannabis companies.
What is the YTD return of MSOS in 2026?
As of 2026, the YTD return for MSOS is not specified due to extreme market volatility and sector uncertainty.
How does the regulatory environment affect Cannabis ETFs?
Federal illegality in the US creates banking and operational restrictions for cannabis companies, impacting revenue, profitability, and investor returns in Cannabis ETFs.
Are Cannabis ETFs diversified?
Yes, ETFs like MSOS and MJ hold multiple cannabis companies, providing diversification across regions, business models, and market segments.
What is a multi-state operator (MSO)?
An MSO is a US cannabis company licensed to operate in multiple states, often generating higher revenues than single-state operators.
How liquid are Cannabis ETFs?
Liquidity depends on trading volume. MSOS and MJ are reasonably liquid for ETF standards, allowing investors to buy or sell shares daily on exchanges.
Do Cannabis ETFs invest internationally?
MJ ETF invests in both US and Canadian companies, while MSOS focuses exclusively on US cannabis operators.
Can I lose all my investment in Cannabis ETFs?
Yes, due to extreme volatility and sector risks, it is possible to experience substantial losses, including a total loss of investment.
Who should consider investing in Cannabis ETFs?
Aggressive, risk-tolerant investors seeking exposure to the cannabis industry and willing to accept high volatility may consider Cannabis ETFs.