Cannabis ETFs Soar as Trump Mulls Over Marijuana Reclassification
The potential move would shift marijuana from Schedule I, where it currently sits alongside heroin and cocaine, to Schedule III. Such a change would allow cannabis companies to claim standard business tax deductions and credits, expand access to banking and open the door to more medical research. Trump first floated the idea at a fundraising event earlier this month, and on Monday confirmed that his administration is 'looking at' the issue, with a decision expected in the coming weeks.
The news sparked a broad sector rally. Trulieve Cannabis Corp. (TRUL) surged 35%, Tilray TLRY jumped 32%, Curaleaf Holdings climbed 29% and Canopy Growth CGC gained 24%. Nevis Brands and SNDL (SNDL) each advanced 17%, while Aurora Cannabis ACB rose 15% and Cronos Group (CRON) added nearly 14%.
In the ETF world. Roundhill Cannabis ETF WEED stole the show, climbing 29.4% on the day. This was followed by gains of 27.8% in Amplify Seymour Cannabis ETF CNBS, 27.0% in Amplify Alternative Harvest ETF MJ, 25.7% in AdvisorShares Pure US Cannabis ETF MSOS and 24.3% in AdvisorShares Pure Cannabis ETF YOLO. The solid trading is likely to continue at least in the near term, should reclassification be enacted (see: all the Marijuana ETFs here).
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)
Roundhill Cannabis ETF offers concentrated exposure to the largest U.S. cannabis companies. Roundhill believes that continued legalization by both U.S. states and foreign governments globally results in an attractive growth profile for the cannabis sector. Roundhill Cannabis ETF holds five leading U.S. MSOs in its basket. Roundhill Cannabis ETF has gathered $6.4 million in its asset base so far. It charges 41 bps in annual fees and trades in 42,000 shares a day, on average (read: Top & Flop ETFs of the First Half of 2025).
Amplify Seymour Cannabis ETF (CNBS)
Amplify Seymour Cannabis ETF is an actively managed fund that provides diversified U.S. exposure across the cannabis ecosystem, including cannabis plants, support and ancillary businesses. It holds 32 securities in its basket, with a higher concentration in the top three firms. MSOs is the top industry in the CNBS basket at 35.3%, while cultivation and retail make up 18.7% share. With an AUM of $76.2 million, Amplify Seymour Cannabis ETF charges 76 bps in annual fees and trades in an average daily volume of 11,000 shares.
Amplify Alternative Harvest ETF (MJ)
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. Amplify Alternative Harvest ETF holds 10 securities in its basket. It has an AUM of $128.5 million and charges 76 bps in annual fees. Amplify Alternative Harvest ETF trades in an average daily volume of 54,000 shares.
AdvisorShares Pure US Cannabis ETF (MSOS)
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 24 securities in its basket, with a double-digit concentration on the top three firms. AdvisorShares Pure US Cannabis ETF has amassed $521 million in its asset base and trades in an average daily volume of $9.4 million shares. It charges 77 bps in annual fees.
AdvisorShares Pure Cannabis ETF (YOLO)
AdvisorShares Pure Cannabis ETF is an actively managed fund with dedicated cannabis exposure available in the United States. YOLO seeks long-term capital appreciation by investing in domestic and foreign cannabis equity securities. AdvisorShares Pure Cannabis ETF holds a basket of 22 stocks, with Canadian firms making up 52.6% of the portfolio, followed by American firms with 42.4% share. AdvisorShares Pure Cannabis ETF has gathered $31.3 million in its asset base and charges 1.12% in annual fees. YOLO trades in an average daily volume of 55,000 shares.
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Amplify Alternative Harvest ETF (MJ): ETF Research Reports
Canopy Growth Corporation (CGC): Free Stock Analysis Report
Tilray Brands, Inc. (TLRY): Free Stock Analysis Report
Aurora Cannabis Inc. (ACB): Free Stock Analysis Report
AdvisorShares Pure Cannabis ETF (YOLO): ETF Research Reports
Amplify Seymour Cannabis ETF (CNBS): ETF Research Reports
Roundhill Cannabis ETF (WEED): ETF Research Reports
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