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Cannabis stocks & ETFs jumped on Mar 15 after a prominent hedge fund manager suggested that regulators will soon reclassify marijuana as a less dangerous drug. Roundhill Cannabis ETF (WEED - Free Report) stole the show, climbing 16.1% on the day.
This was followed by gains of 14.9% in AdvisorShares Pure US Cannabis ETF (MSOS - Free Report) , 12.7% in Subversive Cannabis ETF , 10.2% in Amplify Seymour Cannabis ETF (CNBS - Free Report) and 9.6% in Amplify Alternative Harvest ETF (MJ - Free Report) . The solid trading is likely to continue at least in the near term or should legalization pave the way (see: all the Marijuana ETFs here).
Doug Kass, a world-renowned hedge fund manager, posted on X, formerly Twitter, that the “US Drug Enforcement Administration (DEA) will soon approve a rescheduling of cannabis to Schedule III.” Optimism also came from the comments from the Secretary of the Department of Health and Human Services, Xavier Becerra. During his testimony before a U.S. Senate committee, Becerra supported the ongoing evaluation by the Food and Drug Administration regarding the scheduling status of cannabis, indicating potential regulatory shifts that could further influence the market dynamics of the cannabis industry.
Reclassification: A Major Shift
A reclassification could potentially expand the market for marijuana, which is a multi-billion-dollar industry in the United States and a cash crop in many states where cannabis has been newly legalized.
A Schedule III classification could ease banking restrictions, allowing businesses to have more straightforward access to banking services and attract investors. The reclassification could alleviate some of the tax burdens and help shift public perception, further legitimizing the medical cannabis industry and potentially paving the way for broader acceptance and use of marijuana as a therapeutic agent.
Additionally, a shift in the classification could provide momentum for more states to consider medical or recreational legalization, as it would signal a change in the federal government's stance on the drug's potential risks and benefits. Nearly 40 states in the United States have already legalized marijuana in various capacities.
Moving marijuana to Schedule III would provide clearer regulatory guidelines for businesses, potentially leading to more consistent product quality and safety standards across the industry.
Roundhill Cannabis ETF is designed to offer investors exposure to the cannabis sector. The fund may invest in various cannabis-related companies, including cannabis producers and distributors, cannabis-related technology companies, and additional cannabis-related ancillary businesses. It holds five leading stocks in its basket (read: Marijuana ETFs Breezing Past S&P 500: More Growth Ahead?).
Roundhill Cannabis ETF has gathered $5.6 million in its asset base so far. It charges 40 bps in annual fees and trades in 6,000 shares a day, on average.
Cannabis is now legal in some form in 40 states and is expected to be legalized in 11 more states this year, reflecting a nationwide shift toward legalization.
AdvisorShares Pure US Cannabis ETF is the first actively managed ETF listed in the United States with dedicated cannabis exposure focusing exclusively on U.S. companies, including MSOs. It holds 25 securities in its basket, with a double-digit concentration on the top four firms.
AdvisorShares Pure US Cannabis ETF has amassed $840.3 million in its asset base and trades in an average daily volume of $7.2 million shares. It charges 83 bps in annual fees (read: Cannabis ETFs: What's Behind the Latest Surge).
Subversive Cannabis ETF
Subversive Cannabis ETF is an actively managed fund that invests in companies that will thrive as the legal marijuana industry expands. It holds five stocks in its basket and charges 75 bps in annual fees.
Subversive Cannabis ETF has accumulated $0.5 million in its asset base and trades in a volume of 500 shares a day on average.
Amplify Seymour Cannabis ETF is an actively managed fund, which invests at least 80% of its assets in securities of companies, with 50% or more of their revenues from the cannabis and hemp ecosystem. CNBS holds 31 securities in its basket, with a higher concentration in the top four firms. Amplify Seymour Cannabis ETF provides 54.9% exposure to American firms and the rest to Canadian firms.
MSOs is the top industry in the CNBS basket at 46%, while cultivation and retail make up 32% share. With an AUM of $29 million, Amplify Seymour Cannabis ETF charges 77 bps in annual fees and trades in an average daily volume of 34,000 shares.
Amplify Alternative Harvest ETF is the first ETF focusing on the global cannabis/marijuana industry. It tracks the Prime Alternative Harvest Index, designed to measure the performance of companies within the cannabis ecosystem, benefiting from global medicinal and recreational cannabis legalization initiatives. ETFMG Alternative Harvest ETF holds 30 securities in its basket with a moderate concentration across top firms.
Amplify Alternative Harvest ETF has an AUM of $216 million and charges 75 bps in annual fees. It trades in an average daily volume of 3.5 million shares.
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Cannabis ETFs Jump on Imminent Rescheduling News
Cannabis stocks & ETFs jumped on Mar 15 after a prominent hedge fund manager suggested that regulators will soon reclassify marijuana as a less dangerous drug. Roundhill Cannabis ETF (WEED - Free Report) stole the show, climbing 16.1% on the day.
This was followed by gains of 14.9% in AdvisorShares Pure US Cannabis ETF (MSOS - Free Report) , 12.7% in Subversive Cannabis ETF , 10.2% in Amplify Seymour Cannabis ETF (CNBS - Free Report) and 9.6% in Amplify Alternative Harvest ETF (MJ - Free Report) . The solid trading is likely to continue at least in the near term or should legalization pave the way (see: all the Marijuana ETFs here).
Doug Kass, a world-renowned hedge fund manager, posted on X, formerly Twitter, that the “US Drug Enforcement Administration (DEA) will soon approve a rescheduling of cannabis to Schedule III.” Optimism also came from the comments from the Secretary of the Department of Health and Human Services, Xavier Becerra. During his testimony before a U.S. Senate committee, Becerra supported the ongoing evaluation by the Food and Drug Administration regarding the scheduling status of cannabis, indicating potential regulatory shifts that could further influence the market dynamics of the cannabis industry.
Reclassification: A Major Shift
A reclassification could potentially expand the market for marijuana, which is a multi-billion-dollar industry in the United States and a cash crop in many states where cannabis has been newly legalized.
A Schedule III classification could ease banking restrictions, allowing businesses to have more straightforward access to banking services and attract investors. The reclassification could alleviate some of the tax burdens and help shift public perception, further legitimizing the medical cannabis industry and potentially paving the way for broader acceptance and use of marijuana as a therapeutic agent.
Additionally, a shift in the classification could provide momentum for more states to consider medical or recreational legalization, as it would signal a change in the federal government's stance on the drug's potential risks and benefits. Nearly 40 states in the United States have already legalized marijuana in various capacities.
Moving marijuana to Schedule III would provide clearer regulatory guidelines for businesses, potentially leading to more consistent product quality and safety standards across the industry.
ETFs to Tap
Roundhill Cannabis ETF (WEED - Free Report)
Roundhill Cannabis ETF is designed to offer investors exposure to the cannabis sector. The fund may invest in various cannabis-related companies, including cannabis producers and distributors, cannabis-related technology companies, and additional cannabis-related ancillary businesses. It holds five leading stocks in its basket (read: Marijuana ETFs Breezing Past S&P 500: More Growth Ahead?).
Roundhill Cannabis ETF has gathered $5.6 million in its asset base so far. It charges 40 bps in annual fees and trades in 6,000 shares a day, on average.
Cannabis is now legal in some form in 40 states and is expected to be legalized in 11 more states this year, reflecting a nationwide shift toward legalization.
AdvisorShares Pure US Cannabis ETF (MSOS - Free Report)
AdvisorShares Pure US Cannabis ETF is the first actively managed ETF listed in the United States with dedicated cannabis exposure focusing exclusively on U.S. companies, including MSOs. It holds 25 securities in its basket, with a double-digit concentration on the top four firms.
AdvisorShares Pure US Cannabis ETF has amassed $840.3 million in its asset base and trades in an average daily volume of $7.2 million shares. It charges 83 bps in annual fees (read: Cannabis ETFs: What's Behind the Latest Surge).
Subversive Cannabis ETF
Subversive Cannabis ETF is an actively managed fund that invests in companies that will thrive as the legal marijuana industry expands. It holds five stocks in its basket and charges 75 bps in annual fees.
Subversive Cannabis ETF has accumulated $0.5 million in its asset base and trades in a volume of 500 shares a day on average.
Amplify Seymour Cannabis ETF (CNBS - Free Report)
Amplify Seymour Cannabis ETF is an actively managed fund, which invests at least 80% of its assets in securities of companies, with 50% or more of their revenues from the cannabis and hemp ecosystem. CNBS holds 31 securities in its basket, with a higher concentration in the top four firms. Amplify Seymour Cannabis ETF provides 54.9% exposure to American firms and the rest to Canadian firms.
MSOs is the top industry in the CNBS basket at 46%, while cultivation and retail make up 32% share. With an AUM of $29 million, Amplify Seymour Cannabis ETF charges 77 bps in annual fees and trades in an average daily volume of 34,000 shares.
Amplify Alternative Harvest ETF (MJ - Free Report)
Amplify Alternative Harvest ETF is the first ETF focusing on the global cannabis/marijuana industry. It tracks the Prime Alternative Harvest Index, designed to measure the performance of companies within the cannabis ecosystem, benefiting from global medicinal and recreational cannabis legalization initiatives. ETFMG Alternative Harvest ETF holds 30 securities in its basket with a moderate concentration across top firms.
Amplify Alternative Harvest ETF has an AUM of $216 million and charges 75 bps in annual fees. It trades in an average daily volume of 3.5 million shares.