US cannabis market

Cannabis is federally illegal in the US, but state market openings have allowed some operators to thrive. Typically these firms set up vertically integrated businesses with a focus on branded products, retail networks and licenses.

While these companies have adapted to regulatory challenges, they have much to gain from country-level reform in the US, and are eager to see more welcoming federal laws that will allow their businesses to develop further.

Top cannabis stocks in the AdvisorShares Pure US Cannabis ETF

The AdvisorShares Pure US Cannabis ETF provides exposure to public companies exclusively operating within the US cannabis industry. By investing in companies that are working in states with clear guidelines, MSOS gives investors a way to be more selective about the types of cannabis companies they’re investing in.

1. Trulieve Cannabis (CSE:TRUL,OTCQX:TCNNF)

ETF weight: 24.53 percent
Market cap: C$2.28 billion
Share price: C$11.91

Trulieve is a major player in the cannabis industry, with a strong focus on medical cannabis. The company offers a diverse selection of cannabis products, including flower, pre-rolls, concentrates, edibles, topicals and more.

Vertically integrated, Trulieve Cannabis has over 200 dispensaries across the US. It holds a dominant market share in its home state of Florida, and also has a significant presence in Arizona and Pennsylvania.

2. Curaleaf Holdings (CSE:CURA)

ETF weight: 22.25 percent
Market cap: C$2.76 billion
Share price: C$3.58

Cureleaf Holdings also has a significant presence in the US cannabis market, with 158 dispensaries and several cultivation centers across 17 states. The company is also continuing its expansion into the European cannabis sector, with a July 2025 buyout of its minority partner for full control and a partnership with Australia Natural Therapeutics Group to supply medical cannabis to the UK.

Curaleaf has a wide range of brands covering a variety of cannabis product types, including flower, vapes, edibles and hemp-derived THC beverages.

3. Green Thumb Industries (CSE:GTII,OTCQX:GTBIF)

ETF weight: 20.93 percent
Market cap: C$2.57 billion
Share price: C$11.10

Green Thumb Industries is a multi-state operator (MSO) with headquarters in Chicago, Illinois. The company is involved in the entire process of the industry, from cultivating and producing cannabis products to selling them in its own retail stores across the US.

Green Thumb Industries produces and distributes a portfolio of well-known cannabis brands like Rythm, Beboe, Dogwalkers, Incredibles and Doctor Solomon’s.

The company previously owned the intellectual property for these brands. However, following a 2025 strategic transaction, Green Thumb now manufactures them under a long-term licensing agreement with RYTHM (NASDAQ:RYM), which changed its name from Agrify following the deal.

4. Cresco Labs (CSE:CL,OTCQX:CRLBF)

ETF weight: 7.01 percent
Market cap: C$774.16 million
Share price: C$1.74

Cresco Labs is a vertically integrated multi-state cannabis operator in the US. Founded in 2013, it is known for its strong brands like Cresco, High Supply and Good News.

Cresco Labs controls its supply chain from cultivation to retail, offering a wide range of products. While it has its own stores, it focuses heavily on wholesale, getting its products into dispensaries across the country.

5. Glass House Brands (CBOE:GLAS.A.U,OTC:GLASF)

ETF weight: 6.79 percent
Market cap: C$481.48 million
Share price: C$8.97

Glass House Brands is a vertically integrated cannabis company focused on the California market and founded in 2015. The company emphasizes sustainable, low-cost production. Glass House controls its products’ full supply chain, cultivating cannabis in large facilities such as its flagship 5.5 million square foot site in Southern California.

Following a federal immigration raid in July 2025 that significantly disrupted operations and impacted Q3 revenue, Glass House says it has overhauled its labor model and expects to reach full production capacity in Q1 2026.

Canadian cannabis market

In 2018, Canada became the first G7 nation to legalize adult-use cannabis and create its own streamlined program regulated by both federal and provincial powers. Since then, companies working in the country have faced ups and downs in dealing with tight marketing rules, high tax rates and ongoing competition with the unregulated market.

Top cannabis stocks in the Global X Marijuana Life Sciences Index ETF

The Global X Marijuana Life Sciences Index ETF was the first cannabis ETF available in Canada, and it holds a variety of publicly traded companies involved in cannabis, along with several non-flower companies.

While HMMJ does not invest in US-based multi-state operators, it does have exposure to the US market through Canadian companies that have interests in the US cannabis industry. Overall, HMMJ is designed to give investors broad exposure to the cannabis industry, with a particular focus on North American companies.

1. Jazz Pharmaceuticals (NASDAQ:JAZZ)

ETF weight: 10.75 percent
Market cap: US$8.3 billion
Share price: US$136.90

Jazz Pharmaceuticals is a global biopharmaceutical company focused on developing and commercializing medicines for people with serious diseases, often with limited or no other options. It has a diverse portfolio of products in areas like sleep disorders, cancer and epilepsy.

Jazz Pharmaceuticals’ cannabis business stems from its 2021 acquisition of GW Pharmaceuticals and its epilepsy medicine Epidiolex for a whopping US$7.2 billion.

At the American Epilepsy Society 2025 meeting in December, Jazz presented four abstracts on Epidiolex’s non-seizure outcomes and real-world effectiveness in treating rare forms of epilepsies like Dravet syndrome, Lennox-Gastaut syndrome and tuberous sclerosis complex associated epilepsy.

2. Innovative Industrial Properties (NYSE:IIPR)

ETF weight: 10.06 percent
Market cap: US$1.5 billion
Share price: US$24.56

Innovative Industrial Properties is a real estate investment trust that provides specialized real estate opportunities for cannabis companies in 19 states. Its properties mostly consist of processing plants, greenhouses and warehouses, with retail spaces making up a small percentage of its portfolio.

The firm has provided long-term absolute net lease agreements to some of the cannabis industry’s biggest names, including Green Thumb, TILT Holdings (NEO:TILT,OTCQB:TLLTF), Ascend Wellness (CSE:AAWH.U,OTCQX:AAWH) and Curaleaf. The company’s sale-leaseback program has helped cannabis companies access a source of capital, a much-needed workaround in the US where there are fewer traditional financing options.

3. Cronos Group (NASDAQ:CRON,TSX:CRON)

ETF weight: 9.84 percent
Market cap: US$1.02 billion
Share price: US$2.66

Cronos Group is the Canada-based company behind the Spinach, Peace Naturals and Lord Jones cannabis brands. Founded in 2012, its portfolio spans a wide range of affordable products. In Canada, Cronos’ Spinach brand is in the top three for retail sales in the flower and edible categories.

The company also has a presence in Israel and Germany with its brand Peace Naturals. In late 2023, the company re-entered the German medical cannabis market through its partnership with a German medical cannabis company called Cansativa Group. Cronos serves the Israeli market through its subsidiary Cronos Israel.

4. Tilray Brands (NASDAQ:TLRY)

ETF weight: 9.56 percent
Market cap: US$1.84 billion
Share price: US$1.66

Tilray Brands is a pharmaceutical cannabis company headquartered in New York City, with operations spanning Canada, Australia, New Zealand, Latin America, Germany and Portugal. Established in 2013, it was among Canada’s first licensed cannabis producers and has evolved into a global leader in medical and recreational cannabis products. Some of its cannabis brands include Good Supply, Broken Coast and Soleil.

The company operates through several segments, including cannabis cultivation and distribution, and it also owns multiple craft breweries. In 2023, it acquired eight beverage brands and breweries from Anheuser-Busch for US$85 million, expanding into cannabis-infused beverages alongside traditional craft beer.

Recent highlights include a 1:10 reverse stock split in November 2025 and premium vape launches under its Redecan brand.

5. SNDL (NASDAQ:SNDL)

ETF weight: 9.36 percent
Market cap: US$653.8 million
Share price: US$2.54

SNDL, formerly known as Sundial Growers, is the largest private-sector liquor and cannabis retailer on the Canadian market. It cultivates and sells cannabis products under various brands, including Top Leaf, Palmetto, Versus, No Future and more. It focuses on premium indoor cultivation and have a strong presence in the Canadian market.

SNDL has faced financial challenges in the past, but in Q3, the company’s cannabis business revenue grew year-on-year for the 15th consecutive quarter. The company has continued to make strategic investments in 2025, including a deal to acquire 32 cannabis retail stores in two stages.

FAQs for investing in cannabis

China’s rare earths chokehold exposes supply chain fault lines

By mid-year, the impact of China’s controls was being felt most acutely in the automotive sector. European suppliers warned of production shutdowns as licensing delays rippled through tightly integrated supply chains.

The Asian nation controls roughly 70 percent of global rare earths mine output, as well as 85 percent of refining capacity and about 90 percent of magnet manufacturing.

That concentration left markets highly exposed when Beijing escalated restrictions again in October, expanding export controls to cover a total of 12 rare earths and associated permanent magnets.

Although some measures were later paused through November 2026, earlier dual-use restrictions stayed in place, reinforcing the perception that rare earths are now a tool of geopolitical leverage.

“At its core, China has shown a greater willingness to use its dominance in critical minerals to advance its trade and geopolitical influence, potentially causing significant disruptions to global supply chains for industries like automotive, aerospace, defense, and electronics,” states a S&P Global Energy report.

Against that backdrop, efforts to diversify supply accelerated.

In the US, government support moved from rhetoric to capital. The Department of Defense committed US$400 million to MP Materials (NYSE:MP) to expand processing at Mountain Pass and build a second domestic magnet plant, securing a US-based source of permanent magnets for defense applications.

Days later, Apple (NASDAQ:AAPL) announced a US$500 million agreement with MP to supply recycled rare earth magnets for hundreds of millions of devices starting in 2027, tying supply chain security to sustainability.

As Hykawy explained, these developments are setting the stage for ex-China supply:

“We are at the beginning of producing, processing and utilizing rare earths in a supply chain entirely outside of China. There is absolutely nothing that prevents us from building that western supply chain except time and money. Rare earth deposits of all types, including ionic clays and their relatively inexpensive production of heavy rare earths, are readily available outside of China.”

He went on to note that there has been a misconception about the impacts of rare earths production, paired with a lack of investment and expertise that has prevented a faster buildout.

“It’s a media cliché that rare earth mining and processing is somehow much more destructive to the environment than other types of mining, but that’s also just plain wrong,” Hykawy added.

“Unfortunately, building that supply chain will take money and, especially, time, because we need the people who know how to do all of this, and there is no substitute for the time required to give them their required experience.”

Rare earths supply security and growing demand

As global demand for rare earths accelerates and supply chain risks heighten, experts believe the sector’s importance on the global stage will keep intensifying.

During a Benchmark Week presentation, Michael Finch of Benchmark Mineral Intelligence explained that rare earths have “become far more strategic in nature” over recent years, with applications spanning electric vehicles, consumer electronics, wind energy, robotics and modern military systems.

While permanent magnets remain a headline driver, non-magnetic uses now account for a larger share of total demand, underscoring the material’s broad industrial importance.

Demand projections for rare earths forecast robust growth, underpinned key segment expansion.

According to Finch’s data an average 100 kW EV traction motor contains roughly five kilograms of neodymium-praseodymium and about one kilogram of dysprosium oxide, illustrating how electrification is fueling consumption.

Additionally, permanent magnet applications are projected to grow at an 8.5 percent compound annual rate through 2030, with magnetic and non-magnetic uses expected to reach parity over the next decade.

Military demand is also a significant driver.

“(There are) 418 kilograms of rare earths going into an F 35 type two fighter (jet), 2.6 metric tons going into a type 51 (naval) destroyer, and 4.6 metric tons going into a Virginia class submarine,” said Finch.

As stated, supply remains heavily concentrated in China which controls 91 percent of the overall supply chain, from mining to permanent magnets. Finch emphasized that this concentration creates a single-country risk, noting, “When a country owns so much of a supply chain, it’s easy to use it as a bargaining chip.”

The global rare earths supply chain is gradually diversifying. North America and Africa are emerging as key growth regions, with projects expected to significantly expand non-Chinese production in the coming decade.

Finch pointed to Africa, which could account for up to 7 percent of global supply after 2030, driven by low capital intensity and favorable mining costs. Despite this progress, he cautioned that complete self-sufficiency outside China remains a distant prospect, emphasizing the need for rapid investment and strategic coordination to secure supply.

Rare earths investment bolstered by government support

In addition to the Department of Defense’s MP Materials investment, the US government has established a price floor for NdPr oxide, the high-value rare earths ingredient inside permanent magnets.

During a fireside chat at Benchmark Week, Ryan Corbett, CFO of MP Materials, explained the impact of the price floor in support of the burgeoning US supply chain. He told the audience that the deal is “absolutely transformational,’ and pointed to China’s ability to control pricing by flooding or starving the market. “What good is it to invest billions of dollars if the second you turn your refinery on, prices go from US$170 to US$45?” said Corbett.

In October, the Trump administration announced another strategic investment aimed at reshoring critical supply chains through a US$1.4 billion public-private partnership with Vulcan Elements and ReElement Technologies.

Under the agreement, the Commerce Department will provide US$50 million in CHIPS Act incentives for neodymium-iron-boron magnet production in exchange for an equity stake, alongside up to US$700 million in conditional Defense Department loans to support facilities targeting up to 10,000 metric tons of annual output.

On the private investment side, Rare earths developer Pensana (LSE:PRE,OTCPL:PNSPF) secured a US$100 million strategic investment to advance its mine-to-magnet ambitions in the US, at the end of 2025.

Although the rare earths sector saw several multimillion-dollar deals in 2025, exploration capital remains scarce.

According to S&P Global’s Senior Principal Analyst, Mining Studies & Mine Economics, Paul Manalo the rare earths account for 1 percent of global exploration budgets, however, that number has improved in recent years.

“For the sixth consecutive year, budgets for rare earths were up reaching US$155 million in 2025; it’s the highest level since 2012,” Manalo said during the S&P Global Market Intelligence 2026 Corporate Exploration Strategies webinar.

Although exploration budgets are growing, the expert said 80 percent of that capital is being deployed in only four countries: Australia, Brazil, USA and Canada. “Just like in other minor metals, the juniors are the primary drivers for exploration of rare earths, with only a few majors dabbling in it,” Manalo told listeners, adding, “There are few rare earth mines outside of China, so most pending exploration is for late stage projects.”

The government funding and strategic stockpile proposal were acknowledged as a good starting point by Stormcrow Capital’s Hykawy, who also cautioned that they may not be as meaningful as markets anticipate.

“I give the efforts so far an ‘A’ for enthusiasm but a ‘C-‘ for effectiveness. From what I have seen, the powers-that-be are beavering away to create a supply chain that can provide what the world is demanding, today,” he said.

“Unfortunately, many of their efforts can’t bear fruit for 5 years or more, and none of these agencies seemed to think it worthwhile to try and evaluate what will be required in 5 or 10 years.”

More long-term foresight is needed.

“Technology giveth, but technology also taketh away, and while no one can be sure what the technology-driven need will be in 5 or 10 years, we should at least try to incorporate that into planning,” he said.

“If the wrong projects are being backed, the economics for that producer or processor in 5 or 10 years are not going to look good and money and time will have been completely wasted.”