Cannabis stocks have been hot buys of late as investors recently learned that the Biden Administration is going to reschedule marijuana. It's a big development for the industry, and it's welcome news for many cannabis companies. Potentially, it may even pave the way for further reform for the industry.

But investors should be careful. Many pot stocks, including Tilray Brands and Canopy Growth, may look like tempting buys. However, these are also investments that have been downright awful in recent years, and whose businesses remain deeply unprofitable.

What's the best way to invest in cannabis, if you're bullish on marijuana reform? To keep your risk down in this volatile industry, going with an exchange-traded fund (ETF) that focuses on U.S.-based pot stocks can offer you the best of both worlds.

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Source Fool.com