BETHESDA, Md., Feb. 23, 2021 /PRNewswire/ -- AdvisorShares, a leading sponsor of actively managed exchange-traded funds (ETFs), today announced that the AdvisorShares Pure US Cannabis ETF (Ticker: MSOS) has surpassed $1 billion in assets under management, standing out among notable recent ETF launches.
When it launched on September 2, 2020, the actively managed MSOS became the first U.S.-listed ETF focused solely on American cannabis companies, including multi-state operators (MSOs). MSOs are U.S. companies directly involved in the legal production and distribution of cannabis in states where approved. This ETF with its apt ticker seeks long-term capital appreciation by investing entirely in legal, domestic cannabis equity securities. Its domestic equity strategy allows MSOS to allocate its underlying portfolio among MSO companies as well as other U.S.-based cannabis-focused areas such a REITs, cannabidiol (CBD), pharmaceutical and hydroponics. MSOS launched with $2.5 million in assets and has since grown to over $1 billion in assets less than six months after its inception.
"There's a lot of excitement surrounding the cannabis investment space right now and for a variety of a reasons," said Dan Ahrens, AdvisorShares' chief operating officer and portfolio manager of MSOS. "We firmly believe that the U.S. cannabis market provides a compelling long-term investment opportunity that clearly differentiates itself from other areas of the globe. Investors must exercise careful due diligence when navigating cannabis and we believe MSOS' unique, actively managed investment mandate delivers a sought-after solution to the marketplace."
MSOS is the sister fund to the AdvisorShares Pure Cannabis ETF (Ticker: YOLO), an actively managed global cannabis investment strategy which Mr. Ahrens also serves as the portfolio manager. When YOLO launched in 2019, it became the first U.S.-listed active ETF dedicated to cannabis exposure – investing in both domestic and foreign cannabis equity securities. YOLO, a top performing cannabis ETF for its one-year and since inception, has gathered over $465 million in assets under management.
"The overall industry and investor response to both MSOS and YOLO has been remarkable, and it has been encouraging to see their expanded availability across prominent investment platforms for advisors to access," added Noah Hamman, chief executive officer of AdvisorShares. "Dan's portfolio management experience and expertise has been evident with these highly-specialized offerings. We also take a serious responsibility to provide investment education surrounding cannabis, which remains much needed for financial professionals and all investor types, and regularly communicate commentary and insights on AdvisorShares.com, recurring webcasts and social media."
Total Return % (through 2/19/2021)
AdvisorShares Pure Cannabis ETF (Market)
AdvisorShares Pure Cannabis ETF (NAV)
Inception: 4/17/2019 Source: Morningstar; Time periods greater than 1-year are annualized. Cannabis ETFs are U.S. listed ETFs who hold themselves out to be cannabis focused or have 80% of the holdings in cannabis or cannabis related companies. For 1-year this represents 6 ETFs, and since inception represents 2 ETFs.
Total Return % (through 2/19/2021)
AdvisorShares Pure US Cannabis ETF (Market)
AdvisorShares Pure US Cannabis ETF (NAV)
Inception: 9/2/2020 Source: Morningstar
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than original cost. For month-end and standardized performance click on the following links www.advisorshares.com/etfs/yolo and www.advisorshares.com/etfs/msos.
Short term performance may often reflect conditions that are unstainable and thus may not be repeated in the future.
AdvisorShares is a leading provider of actively managed ETFs. For financial professionals and investors requesting more information, call 1-877-843-3831 or visit www.advisorshares.com. Follow @AdvisorShares on Twitter and Facebook for more insights.
Before investing you should carefully consider the Fund's investment objectives, risks, charges and expenses. This and other information are in the prospectus, a copy of which may be obtained by visiting the Fund's website at www.advisorshares.com. Please read the prospectus and summary prospectus carefully before you invest.
The Fund is subject to a number of risks that may affect the value of its shares. This section provides additional information about the Fund's principal risks. The degree to which a risk applies to the Fund varies according to its investment allocation. Each investor should review the complete description of the principal risks before investing in the Fund. As with investing in other securities whose prices increase and decrease in market value, you may lose money by investing in the Fund.
Cannabis-Related Company Risk. Cannabis-related companies are subject to various laws and regulations that may differ at the state/local and federal level. These laws and regulations may (i) significantly affect a cannabis-related company's ability to secure financing, (ii) impact the market for marijuana industry sales and services, and (iii) set limitations on marijuana use, production, transportation, and storage. Cannabis-related companies may also be required to secure permits and authorizations from government agencies to cultivate or research marijuana. In addition, cannabis-related companies are subject to the risks associated with the greater agricultural industry, including changes to or trends that affect commodity prices, labor costs, weather conditions, and laws and regulations related to environmental protection, health and safety. Cannabis-related companies may also be subject to risks associated with the biotechnology and pharmaceutical industries. These risks include increased government regulation, the use and enforcement of intellectual property rights and patents, technological change and obsolescence, product liability lawsuits, and the risk that research and development may not necessarily lead to commercially successful products.
Shares are bought and sold at market price not net asset value (NAV) and are not individually redeemed from the Fund. Market price returns are based on the midpoint of the bid/ask spread at 4:00 pm Eastern Time (when NAV is normally determined) and do not represent the return you would receive if you traded at other times.