Investors wary of US cannabis ETFs despite recent rally

New proposed federal rules governing marijuana have so far failed to spark fresh buying interest in exchange-traded funds (ETFs) tracking the shares of North American cannabis companies, despite strong performance this year.

Marijuana ETFs and cannabis stocks shot higher last week after the U.S. Justice Department said it plans to reclassify marijuana as a less dangerous drug. Big gainers included the Roundhill Cannabis ETF, AdvisorShares Pure Cannabis ETF and Amplify U.S. Alternative Harvest ETF, which are all sitting on year-to-date gains of 29.6% to 36.6%, putting them among the top ETF performer