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Cannabis ETFs: Expert Insights on Investment Opportunities and Risks

Cannabis ETFs: Expert Insights on Investment Opportunities and Risks

EXCLUSIVE: Cannabis ETF Leaders Highlight Convenience For Investors, Growth Opportunities — ‘I Don’t Think Cannabis Is Uninvestable’ Two cannabis-based ETF leaders discussed why U.S. investors turn to ETFs for sector exposure and what federal regulation could mean for the industry during a panel at the 2025 Benzinga Cannabis Capital Conference in Chicago. ETF Convenience: AdvisorShares Chief Operating Officer Dan Ahrens recognizes there is difficulty for U.S. investors to invest in cannabis stocks given many of them don't trade on the NYSE or Nasdaq. "With ETFs, it’s a convenient purchase, a basket of stocks," Ahrens said at the Benzinga event. "It becomes much more important when we’re talking about cannabis in the U.S." AdvisorShares is home to the AdvisorShares Pure US Cannabis ETF (MSOS). Ahrens said AdvisorShares has many ETFs, but its MSOS continues to make headlines as one of the top ways to get exposure to the cannabis space. Seymour Asset Management Chief Investment Officer Tim Seymour said cannabis ETFs are helpful and ironic in ways, as investors have limited access to individual cannabis stocks. The cannabis market is also heavily volatile and doesn’t have great liquidity, Seymour added. Seymour is behind the Amplify Seymour Cannabis ETF (CNBS).

Read Also: EXCLUSIVE: Tobacco Sector Looks To Cannabis For Growth: ‘Investments Are Meant For A Very Specific Reason’ Federal Reform: Ahrens said many investors have bought cannabis stocks and ETFs with the hope of federal reform, with the potential for items like legalization, states’ rights and rescheduling. Instead, over the last five years, investors are still sitting with none of these items, something he still thinks would have been highly unlikely years ago. "These stocks have been brutal for the last five years," Ahrens said. Ahrens doesn’t think anyone should invest in the cannabis space if they don’t expect federal reform. The investor warns that people shouldn’t put all their capital into the cannabis industry. Ahrens does not time frame estimates on federal reform, noting that he’s been kicked in the gut too many times before. "But we’re here for it." Investing Beyond Federal Reform : Seymour takes a different approach to Ahrens in the belief that investors can find gems in the cannabis space even if there is no federal reform. The investor said he is building a portfolio now that is about finding companies here today and will be here tomorrow, which includes analyzing balance sheets and looking at capital structure. "Find companies that are operating and making it through," Seymour said. Seymour said there are many companies that are survivors and have been run more efficiently over the past five years. "There are companies that haven’t mortgagued the balance sheet to stay in balance." Seymour said that there are opportunities for when the moment comes for the sector, which could be due to federal reform. "I don’t think cannabis is uninvestable." The investor said everyone can decide what percent to put into the cannabis sector depending on their own risk profile, comparing the market to being similar to emerging markets. "This is the opportunity of growth people talk about."

Read Next: EXCLUSIVE: Cresco Labs CEO Says Cannabis Industry To Hold White House Accountable For Campaign Promises: ‘We’ll Take Any Movement At A Federal Level’ Photo: Shutterstock Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock – anytime. © 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.