Top 7 Cannabis Stocks & ETFs
Trading the hottest cannabis stocks is easier than you think. You may buy shares directly through eToro.com without commission. Or trade CFDs long or short through Plus500.com or FPMarkets.com, with flexible leverage.
We'll touch on the largest players first, and highlight our favourite cannabis ETF, with no management fees, at the end of this article.
Invest in cannabis stocks
1. Aphria Inc.
Aphria Inc. is a licensed Canadian producer and distributor of medical marijuana with revenue of C$543.3 million in 2020, an increase of 129% on the previous year. It grows cannabis from its plant in Leamington, Ontario, and has announced plans to expand into the U.S. In December 2020, it announced its intention to merge with Tilray.
2. Tilray Inc.
Tilray Inc. is a Canadian pharmaceutical company that produces cannabis oil extracts as well as dried cannabis in the form of flowers and blends of ground cannabis. It generated revenues of C$217.4 million in 2019, up 287.2% on the previous year from operations spanning Australia, New Zealand, Canada, Germany and Portugal.
3. Aurora Cannabis Inc.
Aurora Cannabis Inc. is a licensed Canadian producer and distributor of medical marijuana with revenue of C$278 million in 2020. It is one of the largest cannabis companies with a funded production capacity in excess of 500,000 kilograms per year. Its product range includes cannabis oils, dried cannabis as well as softgels.
4. Canopy Growth Corporation
Canopy Growth Corporation (formerly Tweed Marijuana Inc.): a cannabis company based in Ontario, Canada, with revenue of C$440 million in 2020. CGC owns cannabis growers and has struck partnerships with overseas pharmaceutical producers and distributors. Shares in Canopy Growth rose sharply in 2018 after a $4 billion investment from Corona-maker Constellation Brands. Since, it has announced plans to expand production into the U.S.
5. GW Pharmaceuticals plc
GW Pharmaceuticals plc is a British pharmaceutical manufacturer of medicines derived from the cannabis plant, including the first cannabinoid drug approved by the U.S. Food and Drug Administration (FDA). The company generated revenues of $311 million in 2019.
6. Cronos Group Inc.
Cronos Group Inc. (formerly PharmaCan Capital Corp) is a licensed Canadian pharmaceutical manufacturer of medical and recreational cannabis, headquartered in Toronto. It sells cannabis oils, dried cannabis and pre-rolls through wholesale and direct-to-client channels. It generated revenues of C$23.4 million in 2019, up marginally on the previous year.
Or invest in a cannabis ETF
Alternatively, you could invest in an index tracking the performance of cannabis companies. Investing in an index can provide broad exposure to the sector. It also is a simple yet effective way to diversify your portfolio's risk away from individual companies whose share price may experience large swings off the back of performance or regulatory events.
eToro's CannabisCare CopyPortfolio (click for prices) gives you broad exposure to a collection of medical marijana stocks. It includes Canadian, American and British manufacturers, such as Tilray, Aphria, XXII and GW Pharmaceuticals. Medical cannabis is already legal in 30 U.S. States, Canada, several European countries. Despite the COVID-19 pandemic, 2020 was a record-setting year for the cannabis industry, and many expect this trend to continue in 2021.
eToro CopyPortfolios are actively managed by eToro's Investment Committee. However, there are no management fees other than the spreads associated with opening and closing a position. Each CopyPortfolio is periodically re-balanced in order to get the most out of its thematic trading strategy. The minimum investment amount for this portfolio is $5,000. Please visit eToro.com to find out more about this portfolio's composition and performance record.