In short, the initial excitement surrounding the cannabis industry has subsided. Share prices of the two oldest U.S.-listed ETFs—YOLO and the ETFMG Alternative Harvest ETF (MJ), which was converted from an existing Latin America real estate fund into a cannabis fund in December 2017 and now has $940 million in assets—have steadily declined since late April.

The three pot ETFs that debuted last month—the Cannabis ETF (THCX) from Innovation Shares; Amplify Seymour Cannabis ETF (CNBS) from Amplify ETFs and Cambria Cannabis ETF (TOKE) from Cambria Investment Management—are all down since they launched.

On a quarter-to-date basis, the losses at these five ETFs have ranged from 7.7% for TOKE to 19.8% for MJ.

But the sector’s proponents say the cannabis game is in the proverbial early innings. They believe both medicinal and recreational weed will increasingly become legal both in the U.S. and overseas. In theory, that sounds entirely plausible. For now, it’s a tough line to swallow for investors who are getting hammered by holding pot ETFs. 

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