AdvisorShares Pure US Cannabis ETF Stock Price, News & Analysis

AdvisorShares Pure US Cannabis ETF (NYSE Arca: MSOS) is an actively managed exchange-traded fund that focuses on the U.S. cannabis industry. According to AdvisorShares, MSOS provides dedicated exposure to U.S. cannabis companies, with a particular emphasis on multi-state operators. It is described in multiple AdvisorShares communications as the largest cannabis ETF and as the first U.S.-listed ETF to offer dedicated exposure to U.S. cannabis companies.

The fund is sponsored by AdvisorShares, which is characterized as a provider of actively managed ETFs and an investment leader in specialized sectors such as cannabis. AdvisorShares states that it oversees the largest portfolio of publicly traded cannabis stocks through its cannabis-focused ETF lineup, which includes MSOS along with other cannabis strategies. Within this lineup, MSOS is highlighted as being focused exclusively on U.S. cannabis companies.

Investment focus and strategy

MSOS is described as an actively managed ETF with the majority of its investment exposure in U.S. multi-state operators. AdvisorShares communications note that the fund offers investors direct exposure to U.S. multi-state operators and other U.S. cannabis companies. The ETF is presented as a way to access companies that may be affected by evolving cannabis regulation, taxation, and capital formation conditions in the United States.

AdvisorShares disclosures emphasize that an investment in MSOS is subject to risk, including the possible loss of principal. They highlight that cannabis-related companies face regulatory and operational risks, including differing state and federal laws, permitting requirements, and exposure to broader agricultural, biotechnology, and pharmaceutical industry risks. These risk descriptions are intended to frame the environment in which the ETF’s portfolio companies operate.

Role within the AdvisorShares cannabis ETF suite

MSOS is frequently mentioned alongside other AdvisorShares cannabis ETFs. AdvisorShares references MSOS as the largest cannabis ETF focused exclusively on U.S. cannabis companies, while also noting the existence of the AdvisorShares Pure Cannabis ETF (YOLO), which follows a global cannabis equity strategy that includes U.S. multi-state operators, and the AdvisorShares MSOS Leveraged Daily ETF (MSOX), which is designed for experienced traders seeking leveraged exposure linked to the U.S. cannabis ETF.

In this context, MSOS serves as the core U.S.-focused cannabis ETF within the AdvisorShares suite. AdvisorShares communications also indicate that other cannabis-related securities, such as Subversive Capital Acquisition Corp., have been included in the MSOS portfolio, illustrating how the ETF can hold a range of U.S.-oriented cannabis-related issuers.

Regulatory and policy backdrop

AdvisorShares commentary around MSOS often references the broader U.S. cannabis policy environment. Statements from the fund’s portfolio manager describe federal actions to advance the reclassification of cannabis under the Controlled Substances Act as a pivotal moment for cannabis policy. These communications suggest that potential rescheduling from Schedule I to Schedule III could affect taxation, research access, and capital formation for U.S. cannabis companies, which are the types of companies to which MSOS seeks exposure.

AdvisorShares also highlights developments such as federal rescheduling efforts, public comment processes, and state-level ballot initiatives related to medical and adult-use cannabis programs. While these discussions are framed as general industry context, they underscore the regulatory sensitivity of the companies that MSOS targets.

Key risks highlighted by AdvisorShares

AdvisorShares disclosures for its cannabis ETFs, including those referencing MSOS, describe several principal risks associated with cannabis-related companies. These include the impact of differing state and federal laws on financing and market access, limitations on marijuana use, production, transportation, and storage, and the need for permits and authorizations to cultivate or research cannabis. The disclosures also note that cannabis-related companies may be affected by factors such as commodity prices, labor costs, weather conditions, environmental and safety regulations, intellectual property issues, technological change, and product liability.

AdvisorShares further emphasizes that shares of its ETFs are bought and sold at market price, not net asset value, and are not individually redeemed from the fund. Market price returns are based on the midpoint of the bid/ask spread at the time net asset value is normally determined and may differ from returns realized at other times.

Position within the U.S. cannabis investment landscape

AdvisorShares materials describe MSOS as the first and only actively managed U.S.-listed ETF with dedicated cannabis exposure focusing exclusively on U.S. companies, including multi-state operators. In later communications, AdvisorShares refers to MSOS as the largest cannabis ETF and notes that it manages over $1 billion in cannabis ETFs across its suite. These statements position MSOS as a central vehicle for investors seeking ETF-based exposure to U.S. cannabis operators within the AdvisorShares platform.

FAQs about AdvisorShares Pure US Cannabis ETF (MSOS)

• What is the AdvisorShares Pure US Cannabis ETF (MSOS)?
  

  According to AdvisorShares, MSOS is an actively managed exchange-traded fund that focuses primarily on U.S. cannabis companies, including multi-state operators. It is described as the largest cannabis ETF and as the first U.S.-listed ETF with dedicated exposure to U.S. cannabis companies.

• How does MSOS provide exposure to the U.S. cannabis industry?
  

  AdvisorShares states that MSOS offers direct exposure to U.S. multi-state operators and other U.S. cannabis companies by holding securities of cannabis-related issuers. Communications about the fund highlight its majority investment exposure to U.S. multi-state operators.

• Who manages MSOS?
  

  AdvisorShares identifies itself as the sponsor and provider of MSOS and notes that the fund is actively managed. Public statements reference an AdvisorShares managing director and portfolio manager who speaks on behalf of the AdvisorShares Pure US Cannabis ETF.

• What risks are associated with investing in MSOS?
  

  AdvisorShares disclosures indicate that an investment in MSOS is subject to risk, including the possible loss of principal. They specifically highlight cannabis-related company risk, noting that cannabis-related companies face regulatory, operational, agricultural, biotechnology, and pharmaceutical industry risks, as well as legal and permitting requirements.

• How is MSOS different from other AdvisorShares cannabis ETFs?
  

  AdvisorShares materials describe MSOS as focused exclusively on U.S. cannabis companies. In contrast, the AdvisorShares Pure Cannabis ETF (YOLO) is described as a global equity cannabis ETF that includes U.S. multi-state operators, and the AdvisorShares MSOS Leveraged Daily ETF (MSOX) is described as a leveraged strategy designed for experienced and sophisticated active day trading investors.

• On which exchange does MSOS trade?
  

  AdvisorShares communications refer to the AdvisorShares Pure US Cannabis ETF with the ticker MSOS and note that it is listed on the NYSE Arca exchange.

• Does MSOS use leverage?
  

  The information provided describes MSOS as an actively managed ETF focused on U.S. cannabis companies. A separate ETF, the AdvisorShares MSOS Leveraged Daily ETF (MSOX), is described as having a daily leveraged investment objective. The materials do not describe MSOS itself as a leveraged ETF.

• How does cannabis policy affect companies held by MSOS?
  

  AdvisorShares commentary suggests that federal and state cannabis policy, including potential rescheduling under the Controlled Substances Act and evolving state-level programs, can influence taxation, research access, and capital formation for U.S. cannabis companies. These are the types of companies to which MSOS seeks exposure.