In the ever-evolving world of investment, cannabis exchange-traded funds (ETFs) have found themselves in a precarious position in 2023.

Amid a backdrop of struggling cannabis stocks and changing market dynamics, industry experts are raising concerns about the efficacy of certain cannabis-focused ETFs, urging investors to approach the sector with caution.

Want to dive deep into the world of investment with the expertise of Tim Seymour, founder and chief investment officer of Seymour Asset Management (SAM) and Trader on CNBC’s ‘Fast Money’? Seymour will share his insights as a featured speaker at the upcoming Benzinga Cannabis Capital Conference in Chicago on September 27-28.

Don't miss this chance to learn from the portfolio manager of the Amplify Seymour Cannabis ETF (ARCA: CNBS).

Related Content: CNBC's Tim Seymour Says Cannabis Investors May Find Positive Catalysts In Unexpected Places

Cannabis ETFs Under Fire: Concentration Risks & Quest For Diversification

One notable critic of cannabis ETFs is Alan Brochstein, CFA, and founder of New Cannabis Ventures and 420 Investor. Brochstein has been vocal about his reservations, particularly focusing on the performance of AdvisorShares Pure US Cannabis ETF (ARCA: MSOS), which currently holds over $300 million in assets.

Brochstein points out that MSOS faces a significant challenge: lack of diversification. "It is poorly diversified, with over 47% in two names, GTI and Curaleaf," he asserts. He further highlights that the ETF's top 6 holdings make up approximately 87% of its portfolio, a disproportionately high concentration …

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