MSOS

The AdvisorShares Pure US Cannabis ETF (MSOS) is an exchange-traded fund designed to provide exposure to the U.S. cannabis industry. The ETF is managed by AdvisorShares and trades under the ticker MSOS on the NYSE Arca.

Classified as an actively managed thematic equity ETF, the fund primarily invests in U.S. companies associated with medical and recreational cannabis markets, including multistate operators (MSOs), cultivation companies, distributors, retailers, and businesses tied to the cannabis industry.

Unlike traditional passive ETFs, MSOS follows an active strategy and does not directly track a conventional benchmark index. The fund also uses swaps and other derivatives to gain exposure to certain U.S. cannabis companies due to regulatory restrictions affecting the listing of some operators within American financial markets.

Diversification and sector exposure

MSOS provides exposure primarily associated with:

• Medical cannabis.
• Recreational cannabis.
• Multistate operators (MSOs).
• Cannabis cultivation and distribution.
• Specialized retail.
• Cannabis-related biotechnology.
• Consumer discretionary markets.
• Regulated U.S. cannabis industry.

The ETF’s performance is particularly sensitive to regulatory developments involving the cannabis sector, the U.S. political environment, and expectations surrounding federal legalization in the United States.

Changes in Federal Reserve monetary policy, credit conditions, and consumer-demand trends may directly affect the fund’s behavior. The ETF may also reflect developments associated with expansion of legal cannabis markets, rising industry competition, and evolving state-level regulations across the United States.

Structure and costs

MSOS shares trade on the secondary market on the NYSE Arca during regular trading hours. Share creation and redemption occur through authorized participants, a mechanism intended to help align the ETF’s market price with its net asset value (NAV).

The fund charges a management fee as outlined in its prospectus and does not apply a performance fee. MSOS may distribute income derived from dividends, capital gains, and revenue associated with portfolio holdings.

Because the ETF maintains concentrated exposure to a regulated industry and uses derivatives as part of its strategy, its performance may exhibit elevated volatility and significant sensitivity to political and regulatory developments.

History and evolution of the ETF

The AdvisorShares Pure US Cannabis ETF was launched in 2020 during a period marked by expansion of legal cannabis markets and rising institutional interest in the sector across the United States.

Since inception, the fund has reflected movements associated with the U.S. cannabis industry, including state-level regulatory developments, debates surrounding federal legalization, and fluctuations in the sector’s political and economic environment.

In recent years, MSOS has reflected periods of elevated volatility within cannabis markets, changes in regulatory expectations, fluctuations in credit conditions, and structural shifts within the competitive landscape of the American cannabis industry.

Additional Information

AdvisorShares Pure US Cannabis ETF (United States) is an exchange-traded fund (ETF), with assets under management totaling $1.62 Billion.

Over the past 12 months, AdvisorShares Pure US Cannabis ETF recorded a return of 138.84%, with its price trading between $2.06 and $6.69 during the same period.

The ETF is traded under the ticker MSOS.