Best Cannabis ETFs for 2026
Cannabis ETFs provide diversified exposure to the legal marijuana industry, spanning companies involved in cultivation, distribution, pharmaceuticals, and ancillary services like packaging and technology. The cannabis sector remains one of the most dynamic and policy-driven areas of the market, with legalization trends at the state and federal level in the United States acting as a major catalyst for potential growth.
MSOS from AdvisorShares is the premier US-focused cannabis ETF, investing in American multi-state operators through swap agreements since these companies trade on Canadian exchanges. THCX from AXS Investments offers broader cannabis exposure with a tilt toward innovative cannabis technology and science firms. MJ, the ETFMG Alternative Harvest ETF, is one of the oldest cannabis funds and holds a global mix of cannabis-related equities including Canadian licensed producers and US operators.
Cannabis investing carries substantial risks including regulatory uncertainty, limited access to banking services, and high cash-burn rates among operators. The sector has experienced dramatic drawdowns from its 2021 peaks, but patient investors who believe in the long-term legalization thesis see current valuations as an opportunity. Choosing the right ETF means understanding the geographic focus, company quality, and cost structure of each fund.
How We Rank
ETFs are ranked by assets under management (AUM). Only ETFs with $10M+ in assets are included. Data is updated daily.
| # | Symbol | Fund Name | AUM |
|---|---|---|---|
| 1 | ESGV | Vanguard ESG U.S. Stock ETF | $11.90B |
| 2 | VSGX | Vanguard ESG International Stock ETF | $6.00B |
| 3 | MSOS | AdvisorShares Pure US Cannabis ETF | $750.8M |
| 4 | COPY | Tweedy, Browne Insider + Value ETF | $169.1M |
| 5 | QQMG | Invesco ESG NASDAQ 100 ETF | $166.2M |
| 6 | MJ | Amplify Alternative Harvest ETF | $122.4M |
| 7 | MJUS | ETFMG U.S. Alternative Harvest ETF | $111.6M |
| 8 | CNBS | Amplify Seymour Cannabis ETF | $75.7M |
| 9 | MJJ | MicroSectors Cannabis ETNs | $42.7M |
| 10 | MSOX | AdvisorShares MSOS Daily Leveraged ETF | $38.4M |
| 11 | YOLO | AdvisorShares Pure Cannabis ETF | $36.9M |
| 12 | HMLSF | Global X Marijuana Life Sciences Index ETF | $32.1M |
| 13 | ICPY | Tweedy, Browne International Insider + Value ETF | $29.9M |
| 14 | POTX | Global X Cannabis ETF | $26.3M |
| 15 | TOKE | Cambria Cannabis ETF | $16.4M |
| 16 | MJO | MicroSectors Cannabis 2X Leveraged ETNs | $15.4M |
| 17 | THCX | The Cannabis ETF | $13.0M |
| 18 | IVRA | Invesco Real Assets ESG ETF | $11.4M |
What to Look For
When evaluating cannabis ETFs, the expense ratio matters more than usual because these funds tend to charge higher fees than broad-market ETFs — often above 0.70%. Also examine the fund's geographic focus: US-only funds like MSOS have different risk-reward profiles than global funds that include Canadian producers.
Check the AUM and daily volume carefully, as smaller cannabis ETFs can have wide bid-ask spreads that erode returns. Consider the fund's underlying structure — some use swap agreements rather than direct equity ownership — which introduces counterparty risk.
Which Cannabis ETFs Is Best for You?
MSOS stands out for investors who want pure-play exposure to US cannabis operators. The fund uses swap contracts to access companies like Curaleaf, Green Thumb Industries, and Trulieve, which are listed in Canada but operate primarily in the United States. This US focus positions MSOS to benefit most directly from federal legalization or rescheduling.
MJ offers the broadest exposure with holdings spanning North America and beyond. Its larger asset base provides better liquidity than many cannabis peers, and the global diversification means it is not solely dependent on US policy changes. However, its exposure to Canadian LPs has been a drag on performance in recent years.
THCX differentiates itself with a focus on cannabis innovation, including biotech firms developing cannabinoid-based therapies. This gives it a more growth-oriented profile and potentially less direct exposure to the commodity-like cultivation business that has driven margin compression across the industry.