7 Best Marijuana Stocks and ETFs to Buy in 2025

Although President Donald Trump previously voiced some support for federal marijuana reform on the campaign trail, his administration doesn't appear to be prioritizing that as it focuses on trade policy and energy.But that simply leaves the legal marijuana industry in the U.S. pretty much where it was before Trump took office: unsure about the status of federal reform measures.Whether it involves rescheduling the drug or smaller efforts to change banking laws to be more inclusive of cannabis businesses, federal reform isn't moving as quickly as people in the industry would like to see."Volatility is likely to define the cannabis sector in 2025," says Anthony Coniglio, CEO of NewLake Capital Partners, a cannabis real estate company. "Trading volumes will continue to be driven by the news cycle, with investors quick to take profits on any upward price movement, fueling repeated cycles of rallies and pullbacks."Potential catalysts include action on rescheduling of cannabis under the Controlled Substances Act and the passage of the SAFER Banking Act, which would allow legal cannabis businesses much broader access to banking services.Both of those have "the potential to fundamentally shift investor sentiment and sector dynamics," Coniglio says. But it's only actual federal action, not just speculation, that will create sustainable long-term momentum for the industry, he says.Still, the legal cannabis market continues to grow because of state-level support. BDSA, a cannabis market intelligence firm, projects total legal sales this year in the U.S. of $33.58 billion, rising to $44.45 billion by 2029."Primary growth over the next four years will come from new adult use markets coming online," says Jordan Tritt, CEO of BDSA. "Investing in established companies that have the resources to capture this growth is where to focus."Brandon Dorsky, a cannabis and hemp industry attorney and CEO of Fruit Slabs, a cannabis-infused fruit strips company, says his outlook for pot stocks this year is generally bearish.Headwinds include global economic uncertainty, continued lack of federal clarity in the U.S. and the rising cost of inputs for the production and distribution of cannabis, he says."All have the flavor of increased risk and the possibility of squeezing operating margins for cannabis businesses," he says.With that in mind, here's a look at some of the top cannabis stocks to potentially ride out the slump with:Marijuana Stock/ETFIndustry FocusGreen Thumb Industries Inc. (ticker: OTC: GTBIF)MSO cultivation, manufacturing and dispensingTilray Brands Inc. (TLRY)Nasdaq-listed purveyor of recreational weed, beverages, spirits, wellness productsTrulieve Cannabis Corp. (OTC: TCNNF)MSO cultivation, manufacturing and retailInnovative Industrial Properties Inc. (IIPR)Commercial REIT, leases for cannabis operatorsChicago Atlantic Real Estate Finance Inc. (REFI)Commercial REIT tied to cannabis companiesAdvisorShares Pure US Cannabis ETF (MSOS)U.S. cannabis-related businessesAmplify Alternative Harvest ETF (MJ)Global medicinal and recreational weed businessesLarge marijuana companies that operate in more than one U.S. state where the drug is legal are known as multistate operators, or MSOs.Green Thumb Industries is a vertically integrated MSO that has more than 100 dispensaries and operations in 14 markets. The company is one of the few cannabis stocks that has been consistently profitable. Vertical integration means that Green Thumb sells marijuana products that it cultivates, processes and manufactures itself, rather than buying weed wholesale to mark up and sell in dispensaries. The business model gives Green Thumb more control over how its products are grown and made, and that means it doesn't have to pay a premium to buy marijuana from others. It also creates operational efficiencies.Because of U.S. federal illegality, American companies that grow, process or sell marijuana domestically can't list on big U.S. exchanges.That's not the case for companies based in Canada, where the drug is federally legal, nor for U.S. companies that don't earn money from plant-touching businesses in the U.S. Tilray falls into the latter category and has secured a coveted Nasdaq listing.The company has diversified its global portfolio beyond recreational marijuana to include beverages, spirits, wellness products and consumer-connected lifestyle brands.This vertically integrated MSO has leading market positions in Arizona, Florida and Pennsylvania.This month, the company reported $298 million in first-quarter sales, up slightly year on year. Most of that revenue came from retail sales. The company reported free cash flow of $34 million."In today's challenging operating environment for the cannabis industry, we favor companies that are generating positive cash flow and have demonstrated disciplined execution," Coniglio says. "Names like Green Thumb Industries, Trulieve and TerrAscend stand out for their operational consistency, cost control and ability to self-fund growth without relying on external capital."Adjusted operating income is a metric that can be helpful when comparing cannabis companies. This method adjusts reported income for changes in the fair value of biological assets and often excludes one-time items.This real estate investment trust, or REIT, comes in at No. 2 on a New Cannabis Ventures ranking, with adjusted operating income of $34 million, slightly behind Green Thumb.Innovative Industrial Properties says it is the first publicly traded company on the New York Stock Exchange to provide real estate capital to the regulated cannabis industry. The company acquires cannabis real estate locations and then leases them back to cannabis operators. That offers operators an alternative to specialty cannabis industry loans, which can be expensive.Here's another commercial REIT involved with state-licensed cannabis operators in the U.S. Because it is a REIT, the company distributes at least 90% of its taxable income to stockholders, making it an option for investors looking for a regular income.Given the constraints to the marijuana industry in the U.S., Dorsky recommends companies that are adjacent to those that have state-level licenses to sell marijuana."Within the U.S., property owners and strategic capital partners are safer investments than actual license holders," he says. "So businesses like IIP or Chicago Atlantic Partners are less risky investments within the cannabis marketplace than Tilray or Trulieve."In an industry as complicated and risky as the legal cannabis business, some investors may want to avoid picking individual stocks.They may favor exchange-traded funds, or ETFs, because these funds offer instant diversification among many companies all housed under a single ticker symbol.MSOS is the biggest of the cannabis ETFs listed on VettaFi's ETF database. MSOS' assets recently stood at $369 million. It has an expense ratio of 0.77%, meaning investors will pay $77 in annual fees on a $10,000 investment.The fund's literature says it is the first actively managed U.S.-listed exchange-traded fund with dedicated cannabis exposure focusing only on U.S. companies, including multistate operators."Even with limited legal availability, the U.S. cannabis market is the largest in the world and is forecast to remain so into the immediate future," the fund says. "With exposure to U.S. companies spanning a variety of cannabis-related businesses, MSOS seeks to take advantage of this growth opportunity."Investors wanting to gain exposure to the global cannabis industry can consider this offering from Amplify. As the second-biggest cannabis ETF in the VettaFi database based on total assets, the fund is globally focused, passively managed and tracks the Prime Alternative Harvest Index. That index follows companies benefiting from medicinal and recreational marijuana legalization initiatives.Beyond recreational marijuana, there are "significant applications for cannabis and THC-based medicines and treatments ranging from epilepsy to cancer treatment to non-opioid pain management," the fund says.The fund has an expense ratio of 0.76% and assets of $111 million.