Investors look at many variables when deciding which stocks to buy, including a company’s industry. If an industry is exhibiting high growth, many stocks in that sector can gain value. A rising tide lifts all boats, and that trend is playing out for psychedelic stocks.
Shares of psychedelic drug companies soared on Monday, April 20, after a weekend executive order from ?President Donald Trump boosted federal funding for research and instructed regulators to fast-track their reviews of psychedelic treatments.
Under the order, the U.S. Food and Drug Administration would prioritize reviews of compounds such as ibogaine, aimed at the treatment of depression and post-traumatic stress disorder. Psychedelic drugs with a Breakthrough ?Therapy tag could see their approval times slashed to as short as one or two months. The government will also put $50 million toward ibogaine research, Trump said.
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Recent data from Grand View Research suggests that the psychedelic drugs market will maintain an annualized 12.1% growth rate from now until 2030, and that was before the executive order was signed. That relatively high growth rate can lead to many winners in the stock market. The drugs themselves, however, have some pros and cons to consider. Some studies suggest that psychedelics can minimize anxiety, depression and headaches. However, there are notable risks, such as paranoia, psychosis and addiction, that come with withdrawal symptoms.
Just as taking psychedelics could be viewed as risky, it’s also risky to buy psychedelic stocks at the moment. However, the rewards could be massive, especially with a renewed push for these drugs under the Trump administration.
Joseph Tucker, CEO of Enveric Biosciences Inc. (ticker: ENVB), spoke with U.S. News on why the psychedelic industry is experiencing robust demand for these medical treatments: “The psychedelics sector seeks to address a large and growing unmet need in mental health with the power and open field afforded by a new mechanistic understanding of how to rapidly induce neuroplasticity.” He adds, “That nexus may have the potential to reshape treatment paradigms across depression, anxiety, PTSD and related disorders.”
However, psychedelic stocks are not for risk-averse investors. Investors must be patient and be willing to endure a bumpy ride because these stocks are quite volatile. Results from a phase 2 or 3 trial can result in substantial price movements. It’s best to put money into this sector that you will not need for multiple years, to ensure you can withstand dramatic swings.
But, there’s no denying the potential for reward. “The demand is no longer hypothetical,” Sophia Ellowen, a psychedelic therapy facilitator and founder of Psilence, told U.S. News. “It’s already here, and it’s growing quickly.”
Ellowen says there’s a broad clientele for psychedelic treatments that is gaining momentum, and that many types of people consider these medical drugs. “The people reaching out are not what most people expect. They are professionals, veterans, business owners, parents and people who have tried therapy, medications and everything else without getting the relief they were hoping for,” Ellowen says. “Many of them are not looking for something new or trendy. They are looking for something that actually works after everything else hasn’t.”
Investors who are interested in this industry may want to monitor these top psychedelic stocks and one exchange-traded fund, or ETF:
| Psychedelic Stock | 1-Year Performance | Business Focus |
| Compass Pathways PLC (CMPS) | +202.2% | Developing psilocybin-based therapies for treatment-resistant depression |
| Definium Therapeutics Inc. (DFTX) | +301.7% | Red-hot biotech approaching commercialization of depression and anxiety disorder drugs |
| GH Research PLC (GHRS) | +136.3% | Clinical-stage firm developing mebufotenin therapies for treatment-resistant depression |
| Enveric Biosciences Inc. (ENVB) | -74.0%* | Addressing mental health through neuroplastogenic small-molecule therapeutics |
| AtaiBeckley Inc. (ATAI) | +233.3% | Biopharmaceutical company developing novel mental health treatments with venture backing |
| Helus Pharma Inc. (HELP) | -23.7%** | Canadian firm using serotonergic agonists to treat various mental health conditions |
| AdvisorShares Psychedelics ETF (PSIL) | +105.2% | Actively managed fund providing exposure to the emerging psychedelics industry |
*Enveric Biosciences is up 78.9% in the past 30 days, doubling after Trump’s executive order.
**Helus Pharma is up 21.4% in the past 30 days.
Compass Pathways PLC (CMPS)
Compass Pathways is a British biotech company that aims to improve the lives of people with mental health challenges. The company’s new model of psilocybin treatment, COMP360, is one of those designated as a Breakthrough Therapy by the FDA.
A phase 2b study showed a statistically significant and clinically relevant improvement in symptoms of depression within three weeks, and that type of result could push COMP360 to the forefront of the psychedelics industry. Compass Pathways expects to be “launch-ready” by the end of 2026, and the commercial rollout could follow FDA approval in 2027.
Compass Pathways has a market capitalization just above $1.2 billion. After a $150 million financing and $200 million in warrant exercises, the company expects its cash position as of late March to fund operations into 2028.
Definium Therapeutics Inc. (DFTX)
Definium Therapeutics has been a red-hot stock, more than quadrupling over the past year as multiple drugs are approaching top-line results as they get closer to commercialization. Major depressive disorder drug Emerge will receive topline data in Q2, while general anxiety disorder drugs Voyage and Panorama are projected to receive additional topline data in the second half of the year.
“Each of these pivotal readouts represents an important catalyst opportunity to move DT120 ODT one step closer to delivering on its best-in-class potential in both MDD and GAD,” Definium Therapeutics CEO Rob Barrow said in a press release, referring to major depressive disorder and generalized anxiety disorder.
Definium Therapeutics closed the year with a $411.6 million cash position, which is an upgrade from its $273.7 million cash holdings at the end of 2024. All of that capital makes it easier for the company to make meaningful R&D investments that result in more effective drugs.
GH Research PLC (GHRS)
GH Research is a clinical-stage pharmaceutical company that is developing mebufotenin therapies for patients with treatment-resistant depression. The treatment is going through clinical trials on its path to commercialization, and the stock’s 136% one-year gain shows that some investors want a front-row seat before the company’s drugs are widely available.
“Our phase 2b results reinforce our conviction that GH001 has the potential to be a practice-changing therapy for patients with TRD,” GH Research CEO Velichka Valcheva said in a Q4 2025 statement that highlighted a $280.7 million cash position.
R&D expenses came to $38.8 million last year, so the company’s current cash position offers plenty of runway. GH Research also incurred $22 million in general and administrative expenses last year. Three of its GH001 drug products are deep into phase 2 of 3. Once the third phase is completed, these drugs will be commercialized.
Enveric Biosciences Inc. (ENVB)
Enveric Biosciences’ neuroplastogenic small-molecule therapeutics aim to address depression, anxiety and addictive disorders. Its lead molecule EB-003 is a neuroplastogen that can help with difficult-to-address mental health disorders. This drug recently received positive preclinical results.
Tucker highlighted the company’s intellectual property strength in a press release that revealed Q4 2025 results. “A post-grant review petition filed by Gilgamesh Pharmaceuticals, and ultimately withdrawn by AbbVie Inc., underscored the significance and breadth of our intellectual property footprint in the field,” Tucker stated.
That interaction with AbbVie Inc. (ABBV) after its acquisition of Gilgamesh shows that Enveric can protect its intellectual assets; if Big Pharma does want to enter the industry, however, there could be lucrative opportunities for smaller firms like Enveric.
AtaiBeckley Inc. (ATAI)
AtaiBeckley is a biopharmaceutical company that is developing new mental health treatments for patients. The company has backing from Peter Thiel, Catalio Capital Management, Future Ventures and other venture capitalists.
Its treatment-resistant depression medication is on track for phase 3 trials in the second quarter. Its $220.7 million cash position gives it enough funds to support R&D and other expenses leading up to commercialization. Investor enthusiasm has been building for the stock as phase 3 trials are set to begin soon. The stock has tripled over the past year.
Helus Pharma Inc. (HELP)
Helus Pharma, formerly known as Cybin, is a Canadian psychedelic company that was founded in 2019. The company is working on treatments that are designed to improve mental health conditions. The treatments use novel serotonergic agonists.
The company closed 2025 with a $195 million cash position as HLP003, the company’s lead novel serotonergic agonist, continues making progress in phase 3 trials. Helus Pharma also released positive phase 2 data for HLP004, a drug for generalized anxiety disorder, in early March.
Helus Pharma’s intellectual property portfolio includes more than 100 granted patents and more than 250 patent applications that are pending. This portfolio will make it difficult for competitors to release similar medical products.
AdvisorShares Psychedelics ETF (PSIL)
You don’t have to guess which particular psychedelic stock will take off if you invest in the AdvisorShares Psychedelics ETF. This fund contains a basket of psychedelics stocks, and the managers do the stock-picking for you.
PSIL has been around since Sept. 15, 2021, and it has a 1% expense ratio. Investors can also trade PSIL options for leveraged exposure to this fund. More than 80% of the fund’s total assets are in micro-cap and small-cap stocks, and more than three-quarters of its holdings are in U.S.-based companies.
The fund is up by 20.7% year to date, which is more than enough to outperform the S&P 500 and Nasdaq composite during that stretch. The fund’s top three positions are AtaiBeckley, Relmada Therapeutics Inc. (RLMD), and Definium Therapeutics.
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7 Best Psychedelic Stocks and ETFs to Buy in 2026 originally appeared on usnews.com
Update 04/21/26: This story was published at an earlier date and has been updated with new information.
