Top Weed Stock ETFs to Watch in 2025

 

🔥 Introduction

The cannabis sector has always had the image of a “next big thing,” but the truth is more complicated. Regulatory uncertainty, inconsistent profitability, and shifting federal policies have made the industry one of the most volatile pockets of the market. Yet as we approach 2025, the conversation is changing. Investors aren’t just hunting individual cannabis stocks anymore—they’re increasingly turning to broader, diversified instruments like ETFs to capture the potential upside with less single-company risk. And that’s exactly where the spotlight falls on the Top Weed Stock ETFs to Watch in 2025.

Now, before diving in, it’s important to understand why ETFs matter in this space. Cannabis companies often face high operating costs, heavy taxation under IRS Section 280E, and limited access to traditional banking services. An ETF spreads this risk across multiple holdings, so a slump in one company doesn’t drag down the entire investment. Meanwhile, the rising wave of U.S. state-level legalization—paired with growing demand for medical cannabis worldwide—is pushing analysts to re-evaluate the broader cannabis macro-outlook.

At the same time, investors are seeing major catalysts on the horizon: possible federal reclassification, improving access to credit, rising institutional interest, and the global expansion of medical-use frameworks. These factors are why many experts believe 2025 could become one of the most important years for cannabis-focused investment vehicles.

That said, this article won’t tell you what to buy. Instead, it breaks down the top weed stock ETFs to watch in 2025, the themes behind them, how they work, the risks, and what smart investors are monitoring as the sector evolves.

Let’s understand this better.

 

 

 

What Are the Top Weed Stock ETFs to Watch in 2025?

 

When investors search for the top weed stock ETFs to watch in 2025, a handful of funds consistently stand out based on liquidity, assets under management (AUM), volatility profile, and exposure to U.S. vs. global cannabis companies. Here are the most widely tracked names in the space:

🌿 1. ETFMG Alternative Harvest ETF (MJ)

Ticker: MJ

MJ is one of the earliest and largest cannabis ETFs in the world. It offers exposure to both medical and recreational cannabis operators, including producers, distributors, and pharmaceutical companies leveraging cannabinoid research.

Why investors watch it:

• Large AUM compared to peers
• Broad global exposure
• Includes non-plant-touching companies like tobacco firms benefiting indirectly from cannabis adoption

🌱 2. AdvisorShares Pure Cannabis ETF (YOLO)

Ticker: YOLO

YOLO is an actively managed ETF focusing on high-conviction positions. It leans more toward U.S.-based companies, which many believe offer stronger long-term upside once federal reform materializes.

Why investors watch it:

• Active management approach
• Exposure to leading U.S. MSOs (multi-state operators)
• Balances growth names with more stable ancillary operators

🍁 3. Cambria Cannabis ETF (TOKE)

Ticker: TOKE

TOKE uses an actively managed, value-conscious strategy with a global orientation. Its portfolio includes both cannabis cultivators and branded product companies.

Why investors track it:

• Lower expense ratio than many cannabis ETFs
• Mix of U.S., Canadian, and international operators
• Selective, research-driven exposure

🌐 4. Amplify Seymour Cannabis ETF (CNBS)

Ticker: CNBS

CNBS is known for holding a high percentage of “pure-play” cannabis growers and distributors. It attempts to mirror the real economic engine of the cannabis world.

What makes it notable:

• High concentration in core cannabis operations
• Transparent weighting structure
• Good balance between U.S. MSOs and Canadian LPs

🟢 5. AdvisorShares Pure US Cannabis ETF (MSOS)

Ticker: MSOS

MSOS is one of the most popular U.S.-focused weed ETFs. It invests largely in MSOs, which dominate sales across legalized states such as California, Illinois, New York, and Florida.

Why this is often a favorite among analysts:

• Pure U.S. exposure
• Actively managed
• Direct participation in the booming U.S. cannabis market

✔ One-line summary:

These five ETFs consistently rank among the top weed stock ETFs to watch in 2025 due to liquidity, accessibility, and exposure to potential regulatory catalysts.

What Market Trends Could Boost Top Weed Stock ETFs in 2025?

 

A few macro and sector-specific trends may influence the trajectory of cannabis ETFs:

1. Potential Federal Rescheduling

In 2024, U.S. regulators discussed rescheduling cannabis from Schedule I to Schedule III. If completed, this change would reduce tax burdens and improve profitability.

2. Expansion of Medical Cannabis Programs

New medical markets in Europe, Asia, and Latin America could expand global demand.

3. Banking Access Improvements (SAFE Banking Act)

Banks may begin servicing cannabis businesses more easily, lowering operational costs.

4. Rising Institutional Attention

Pension funds and asset managers have slowly begun tracking cannabis ETFs.

5. Consolidation Among MSOs

Mergers could increase market stability and create stronger companies—benefiting ETFs with diversified exposure.

📊 Comparison Table (For Reference Only)

 

ETF	Focus	Expense Ratio	Country Exposure	Type
MJ	Global cannabis companies	0.75%	Global	Passive
YOLO	U.S cannabis + global mix	0.75%	Mostly U.S	Active
TOKE	Value-driven cannabis + pharma	0.42%	Global	Active
CNBS	Pure-play cannabis	0.75%	U.S & Canada	Passive
MSOS	U.S MSOs	0.75%	U.S only	Active

Table for informational reference, not financial advice.

Which Risks Should Investors Consider Before Looking at the Top Weed Stock ETFs to Watch in 2025?

 

Even though ETFs reduce company-specific risk, cannabis as a sector carries meaningful uncertainties:

·         Regulatory delays

·         Tax and banking limitations

·         High volatility compared to broad-market ETFs

·         Limited institutional participation

·         Profitability challenges for plant-touching businesses

Meanwhile, some ETFs hold illiquid stocks that can experience sharp price swings.

One-line wrap-up:
Understanding sector risks is essential before exploring the Top Weed Stock ETFs to Watch in 2025.

Are Cannabis ETFs a Better Option Than Individual Cannabis Stocks?

ETFs can be “safer” in the sense that they reduce concentration risk. If one company struggles, the ETF cushions the impact. However, ETFs also dilute upside potential from single winning positions.

It comes down to:

·         Risk tolerance

·         Sector knowledge

·         Investment horizon

FAQs

❓ Are cannabis ETFs legal to trade in the U.S.?

Yes, weed ETFs are legally traded on U.S. stock exchanges even though cannabis remains federally illegal.

❓ Are cannabis ETFs profitable?

Most have been volatile, but profitability depends on holdings and sector conditions.

❓ Can cannabis ETFs benefit from legalization?

Generally, yes—broader legalization may increase sales for constituents.

❓ Which weed ETF has the highest AUM?

MJ and MSOS frequently lead, but this changes with market flows.

❓ Is it better to invest in cannabis ETFs or crypto?

They are unrelated asset classes; the choice depends on your personal risk strategy.

Conclusion

 

As 2025 approaches, the cannabis market remains one of the most exciting—but also unpredictable—areas of investing. That’s why many investors are keeping a close eye on the Top Weed Stock ETFs to Watch in 2025, which offer diversified exposure, lower individual-company risk, and broader access to emerging cannabis leaders.

Still, nothing in this sector moves in a straight line. The outlook depends heavily on regulation, access to banking, profitability improvements, and global legalization trends. ETFs won’t eliminate volatility, but they provide a more balanced way to participate in the industry’s potential long-term growth story.

⚠️ Disclaimer:

This Content is for educational and Analysis purposes only and not financial advice. Always do your own research before investing.