The sector is still in its infancy stages, which it makes it both very promising and risky. One way for investors to hedge some of that risk is to invest in an exchange-traded fund (ETF) that gives them some broad exposure. And Defiance Next Gen Altered Experience ETF (NYSEArca:PSY) can accomplish just that. It is the first psychedelic ETF to trade in the U.S. and launched just last week. However, the fund goes beyond just psychedelics.
The top two stocks in the fund are from the cannabis sector as both Charlotte's Web (TSX:CWEB) and Aurora Cannabis (TSX:ACB)(NASDAQ:ACB) make up more than 7% of the fund's net assets. Psychedelics stock Compass Pathways (NASDAQ:CMPS) is also in the fund and at the number five spot, with a weight of about 5.6%. Mind Medicine (NASDAQ:MNMD) is a few spots further down.
The Next Gen Altered Experience ETF charges an expense ratio of 0.75%.