MSOS: 2nd Quarter 2025 Portfolio Review
Portfolio
PERFORMANCE
The AdvisorShares Pure US Cannabis ETF (MSOS) posted a negative return in the second quarter of 2025, with its net asset value (NAV) declining -8.90% and market price falling -7.69%. The slight pullback reflected continued investor frustration with the lack of progress on U.S. federal cannabis reform, which continues to suppress momentum across the sector despite underlying revenue growth.
PORTFOLIO
MSOS maintained its concentrated investment approach throughout the quarter, remaining heavily weighted toward the largest multi-state operators (MSOs). As of the end of Q2 2025, the top five MSOs represented 84.04% of the portfolio, consistent with prior quarters and reflective of the fund’s conviction in the long-term viability of these dominant players.
Top 5 MSO Portfolio Allocation by Quarter:
- Q3 2024: 82.86%
- Q4 2024: 84.46%
- Q1 2025: 81.06%
- Q2 2025: 84.04%
This level of concentration continues to reflect our strategic focus on companies with scale, operational depth, and exposure to key state markets.
POSITIONS
During the quarter, MSOS fine-tuned position weightings across existing holdings but did not add any new names to the portfolio. The rebalancing efforts aimed to better reflect expected Federal reform developments and control over-sized weightings.
WINNERS & LOSERS
While most holdings had slight declines, a few smaller positions posted gains:
- Cannabist Company Holdings Inc. (CBSTF): +9.02%
- Jushi Holdings Inc. (JUSHF): +9.07%
- Glass House Brands (GLASF): +23.06%
Meanwhile, core MSO names faced more substantial drawdowns:
- Verano Holdings Corp. (VRNOF): -22.19%
- Cresco Labs Inc. (CLBF): -26.86%
- Terrascend Corp. (TCNNF): -39.37%
Top Holdings
| Ticker | Security Description | Portfolio Weight % |
| GTBIF | GREEN THUMB INDUSTRIES SWAP | 27.40% |
| TCNNF | TRULIEVE CANNABIS SWAP | 15.10% |
| CURLF | CURALEAF HOLDINGS INC SWAP | 9.69% |
| GTBIF | GREEN THUMB INDUSTRIES SWAP | 5.15% |
| GLASF | GLASS HOUSE BRANDS SWAP | 4.86% |
| TCNNF | TRULIEVE CANNABIS CORP | 4.53% |
| CRLBF | CRESCO LABS INC SWAP | 3.72% |
| CURLF | CURALEAF HOLDINGS INC | 3.54% |
| VRNOF | VERANO HOLDINGS CORP SWAP | 3.54% |
| TCNNF | TRULIEVE CANNABIS SWAP | 2.64% |
As of 06.30.2025. Cash is not included. Holdings are subject to change.
Please see our complete fund holdings at advisorshares.com/etfs/msos. The holdings details are updated each market day.
Cannabis Landscape
The U.S. cannabis industry generated approximately $45 billion in revenue during Q2 2025, continuing its upward growth trend amid ongoing regulatory and structural challenges.1 Cannabis is projected to contribute as much as $123.6 billion to the broader U.S. economy this year, a 9% increase over 2024, underscoring the industry’s growing economic impact.2
As of late June 2025, 40 states, three territories, and D.C. allow medical cannabis use; 24 states have legalized adult use. Despite growing state-level momentum, federal reform efforts remain stalled. The Trump administration’s midyear drug policy priorities excluded cannabis, and a long-awaited DEA decision on rescheduling has yet to materialize. The absence of federal action continues to limit progress on public listings, banking access, and tax relief, all critical constraints for U.S. operators.
On the production side, indoor-grown cannabis maintains premium pricing in major markets like California due to perceived quality advantages. However, regional variation persists, with greenhouse and outdoor cultivation performing more competitively in some states.3
OUTLOOK
The U.S. cannabis sector in Q2 2025 demonstrated stability after years of volatility but did not see a breakthrough moment many had hoped for with respect to federal reform or explosive investment inflows. Growth is U.S. cannabis is continued to be led by new state markets and the ongoing consolidation of established operators; pricing pressures and regulatory overhangs remain major risk factors. We continue to see near-term investment opportunities in growth-state markets, vertical integration, premium product (especially indoor-grown) segments, and in technologies supporting digital sales and delivery.
1. Flowhub. 2025 Marijuana Industry Statistics & Data Insights, How the industry is performing and where it’s headed.
2. MJBiz Daily. Long, Andrew. Marijuana industry will add $123.6 billion to US economy this year. April 28, 2025.
3. Cannabis Science and Technology. Hildenbrand, Zacariah. Cannabis Pricing Crisis: Market Forces Shaping 2025 Trends. June 30, 2025.
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To get updates on the funds, tune in to AdvisorShares’ AlphaNooner Show streaming live each regular weekday starting at 12:00 pm (East Coast time), where I am a guest almost every Tuesday. Other important guests from the cannabis world often join too. Find it on most major social media platforms or visit our the AdvisorShares “Events” webpage for more information.
Cheers,Past Commentary
Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus or summary prospectus, a copy of which may be obtained by visiting www.advisorshares.com. Please read the prospectus carefully before you invest. Foreside Fund Services, LLC, distributor.
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 (closing price) not 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.
Holdings and allocations are subject to risks and to change.
The views in this commentary are those of the portfolio manager and may not reflect his views on the date this material is distributed or any time thereafter. These views are intended to assist shareholders in understanding their investments and do not constitute investment advice.