If You Invested in AdvisorShares MSOS Daily Leveraged ETF (MSOX)

AdvisorShares MSOS Daily Leveraged ETF (MSOX) is an actively managed exchange-traded fund that seeks leveraged daily exposure to U.S. cannabis equities. The fund seeks investment results that are approximately two times the daily total return, before fees and expenses, of the US Cannabis ETF, an affiliated ETF, by entering into one or more swap agreements on that ETF. Its investment objective is daily in scope and is measured from the time the fund calculates its net asset value to the time of its next net asset value calculation.

MSOX is part of the AdvisorShares cannabis ETF suite, which also includes U.S. and global cannabis equity strategies. AdvisorShares describes MSOX as leveraged cannabis exposure designed for active day traders, with the fund targeting daily results rather than investment results over periods longer than a single day. The fund's exposure is tied to U.S. cannabis stocks and multi-state operators through its relationship to the affiliated US Cannabis ETF.

The fund uses swap agreements as a primary mechanism for obtaining leveraged exposure. These instruments introduce counterparty and derivatives risks in addition to the risks of cannabis-related investments. Cannabis-related holdings and exposures are subject to regulatory risk, market volatility, taxation and licensing risk, and changes in federal and state laws. Because the fund is an ETF, its shares are bought and sold at market prices, not directly at net asset value, and shares are not individually redeemed from the fund.

MSOX trades on NYSE Arca. AdvisorShares has also announced fund-level actions for MSOX, including a completed reverse split of issued and outstanding shares and a net asset value restatement related to income accrual accounting for certain total return swaps. These items reflect fund administration, share structure, NAV calculation, and derivatives-accounting topics within the fund's public record.