AdvisorShares Pure Cannabis ETF Stock Price, News & Analysis

AdvisorShares Pure Cannabis ETF (Ticker: YOLO) is an exchange-traded fund that focuses on the cannabis sector. According to AdvisorShares, YOLO is a global equity cannabis ETF that includes exposure to U.S. multi-state operators as part of its investment strategy. The fund is sponsored by AdvisorShares, which describes itself as a provider of actively managed ETFs.

AdvisorShares states that YOLO offers dedicated cannabis exposure and that it was the first U.S.-listed ETF with such exposure. The fund is part of a broader cannabis-focused ETF lineup at AdvisorShares that also includes the AdvisorShares Pure US Cannabis ETF (MSOS) and the AdvisorShares MSOS Leveraged Daily ETF (MSOX). Within this lineup, YOLO is described as focusing on global cannabis companies while also including U.S. multi-state operators.

The ETF’s investment approach is described as active management. AdvisorShares highlights that its cannabis ETFs, including YOLO, seek to provide investors with access to companies that operate in the legal cannabis industry and its related segments. The fund’s exposure to cannabis-related companies means it is subject to specific risks described by AdvisorShares, including regulatory and legal risks at federal, state, and local levels, as well as risks associated with the broader agricultural, biotechnology, and pharmaceutical industries.

Business focus and investment exposure

AdvisorShares indicates that YOLO is designed as a global cannabis equity strategy. The fund’s description notes that it blends opportunities in the American cannabis market with a selective global approach. Within this framework, YOLO can include U.S. multi-state operators alongside other cannabis-related companies. This positioning differentiates YOLO from MSOS, which is described as focused exclusively on U.S. cannabis companies, and from MSOX, which is described as a leveraged strategy designed for experienced traders.

Because YOLO invests in cannabis-related companies, AdvisorShares emphasizes that the fund is exposed to cannabis-related company risk. These companies may be affected by differing laws and regulations at various government levels, which can influence their ability to secure financing, the market for marijuana-related sales and services, and limitations on marijuana use, production, transportation, and storage. AdvisorShares also notes that such companies may need permits and authorizations from government agencies to cultivate or research marijuana.

Risk considerations

AdvisorShares provides detailed risk disclosures for its cannabis ETFs. For YOLO, the sponsor highlights that cannabis-related companies can be influenced by factors affecting the agricultural industry, such as commodity prices, labor costs, weather conditions, and environmental, health, and safety regulations. In addition, cannabis-related companies may face risks associated with the biotechnology and pharmaceutical industries, including increased government regulation, intellectual property and patent issues, technological change, product liability lawsuits, and the possibility that research and development efforts may not lead to commercially successful products.

The fund literature emphasizes that an investment in YOLO is subject to risk, including the possible loss of principal. Shares of the ETF are bought and sold at market price, not at 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 the net asset value is normally determined and may differ from the returns an investor would receive if trading at other times.

AdvisorShares cannabis ETF suite context

AdvisorShares describes itself as a provider of active ETFs and notes that it oversees a group of NYSE-listed cannabis-focused funds. In this context, YOLO is described as a global cannabis companies ETF that includes U.S. multi-state operators. MSOS is described as an ETF focused on U.S. cannabis companies, and MSOX is described as an ETF that seeks daily leveraged exposure linked to a U.S. cannabis ETF and is intended for experienced and sophisticated active day trading investors.

AdvisorShares has highlighted that its cannabis ETFs provide direct exposure to U.S. multi-state operators and other cannabis-related companies. The sponsor also notes that its funds operate in a specialized sector characterized by evolving legislation and regulation in the U.S. and abroad. YOLO’s role within this suite is described as providing global cannabis exposure while maintaining a connection to the U.S. cannabis market.

Regulatory and policy backdrop

AdvisorShares has publicly commented on developments in cannabis policy and regulation. In its communications, the firm has referenced federal efforts to reclassify cannabis under the Controlled Substances Act and has discussed how rescheduling could affect taxation, research access, and capital formation for U.S. cannabis companies, including multi-state operators. While these broader policy discussions are not specific to YOLO alone, they form part of the context in which the fund’s cannabis-related investments operate.

The sponsor has also discussed the growth of state-level medical and adult-use cannabis programs and the role of ballot initiatives in expanding legal cannabis markets. AdvisorShares links these developments to potential changes in the operating environment for cannabis companies that may be held in its ETFs, including YOLO.

Investor information

AdvisorShares emphasizes that investors should carefully review the fund’s prospectus, which contains information about investment objectives, risks, charges, and expenses. The sponsor notes that each investor should review the complete description of principal risks before investing and that investing in securities whose prices fluctuate can result in losses.

Because YOLO is an ETF, its shares trade on an exchange at market prices throughout the trading day. AdvisorShares notes that market price returns are based on the midpoint of the bid/ask spread at the time net asset value is normally determined and may not reflect returns at other times of the day. The fund’s structure and focus on cannabis-related companies mean that it may be more volatile than diversified funds that do not concentrate on a single sector.