Cannabis ETF’s are one of the more diverse ways to invest in marijuana stocks. These Exchange Traded Funds will put a basket of pot stocks together and wrap it into a single, investable vehicle. Just like the S&P 500’s “SPY”, cannabis ETF’s weigh pot stocks in the funds, differently. The risks with buying ETF’s entail the weighting of a specific ETF being too heavy in one pot stock and light on others. If that one cannabis stock declines, the ETF will likely take a hit. Similarly, if a few pot stocks climb and they are in a cannabis ETF, it’s likely that the ETF will also climb.
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