Cannabis stocks have been red hot on Wall Street for the past year or so — and for investors who want to take part in the action without trying to pick an individual company, there are now multiple funds that focus on the rapidly growing sector.
But are there too many options out there?
The Securities and Exchange Commission just approved the Amplfy Seymour Cannabis ETF on Monday. It will start trading Tuesday under the ticker symbol CNBS. And this ETF — which will be actively managed by cannabis investor Tim Seymour — joins three other existing ETFs that already offer exposure to the cannabis business.
There are two index-based, passive funds — the ETFMG Alternative Harvest ETF (MJ) and the aptly named Cannabis ETF (THCX), which also just launched this month — as well another relatively new actively managed fund, the AdvisorShares Pure Cannabis ETF (YOLO).