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The AdvisorShares Pure US Cannabis ETF is rated a buy, driven by real regulatory progress and potential further catalysts. Rescheduling of medical cannabis to Schedule III reduces tax burdens, improving cash flows and the cost of capital for MSOS holdings. Upcoming DEA hearings on adult-use rescheduling and earnings reports could deliver upside surprises and further margin expansion.
Owning individual U.S. cannabis operators means wrestling with OTC-listed tickers, thin liquidity, and a patchwork of state licenses that most brokerage screeners barely index.
The cannabis sector continues to attract investors seeking long-term growth opportunities in 2026. Although volatility remains high, many marijuana companies are improving operations and cutting costs. At the same time, investors continue watching potential federal reform closely. Rescheduling discussions and banking reform could become major catalysts for the industry.
Recent news of marijuana's reclassification is just the first step of many, according to Dan Ahrens of AdvisorShares. Dan talks about the catalysts he sees this summer and the upside he expects to see in marijuana-tied stocks.
Medical marijuana's US reclassification revives cannabis ETFs like WEED, with tax relief and reform hopes fueling sharp gains across the sector.
For marijuana stock investors, the way the industry as a whole progresses determines a great deal for them. For example, no one wants to invest in a struggling industry even if it's been trendy along the way. Now, cannabis has fallen to that path, but it's also what's making this industry one of the hottest sectors in the last 5 years. Legal cannabis has been a long uphill battle in every sense. Legislation and regulatory issues remain the biggest challenges.
Federal cannabis policy moved from theory to action this spring, and three ETFs sit closest to the trade.
After amassing enormous losses over the past five years, cannabis stocks received a much-needed shot in the arm last week when President Donald Trump announced plans to officially reschedule marijuana from Schedule I to Schedule III under the Controlled Substances Act (CSA).