AdvisorShares Cannabis ETFs
Cannabis investing offers a distinct opportunity to participate in one of the most rapidly evolving industries. With shifting regulations, expanding consumer acceptance, and increasing innovation in cannabis products, the market is rich with growth potential. AdvisorShares Cannabis ETFs are strategically designed to capitalize on these dynamics, implementing data-driven insights to navigate the complex landscape and capture opportunities while mitigating risks.
AdvisorShares Cannabis ETFs Advantages
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U.S. Cannabis Operators – All offer exposure to multi-state or single-state U.S. operators.
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Opportunistic – All may invest in mid and small cap companies and new cannabis equity IPOs, which may benefit from merger and acquisition activity as the market evolves.
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Active Management – Can adjust the portfolio more quickly and opportunistically than a passive index-based strategy that must wait for periodic rebalancing.
MSOS
Domestic
- Invests exclusively in U.S. cannabis
- Easy access to U.S. cannabis multi-state operators
YOLO
International
- Invests in U.S. and global cannabis
- Access to companies primarily focused on cannabis
MSOX
Leveraged
- Seeks to leverage the returns of cannabis investing for a single day
- Designed for sophisticated investors looking to gain magnified exposure to the U.S. cannabis sector.
Learn More About Cash and Swaps Here
Read Our Latest Cannabis News Here
Learn More About Volatility, Leverage, & Compounding Here
Investing in the Cannabis Ecosystem
Cannabis Growing Acceptance & Access
U.S. Cannabis Legalization Status
Global Cannabis Legalization Status
Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained by visiting the Fund’s website at www.AdvisorShares.com. Please read the prospectus carefully before you invest. Foreside Fund Services, LLC, Distributor.
Definitions
- A swap agreement is a derivative contract between two parties that involves the exchange of pre-agreed cash flows of two financial instruments
The Fund is an actively managed ETF that seeks to provide investment results that are two times (2x) the daily total return, before fees and expenses, of the US Cannabis ETF, an affiliated ETF, by entering into one or more swaps agreements on the US Cannabis ETF. The Fund does not seek to achieve its stated investment objective for a period of time different than a single day. A single day is measured from the time the Fund calculates its net asset value (“NAV”) to the time of the Fund’s next NAV calculation.The Fund will enter into one or more swap agreements intended to produce economically-leveraged investment results relative to the returns of the US Cannabis ETF. The Fund may use a combination of swaps on the US Cannabis ETF and swaps on various investment vehicles that are designed to track the performance of the US Cannabis ETF. The Fund expects that cash balances in connection with the use of such financial instruments (“Collateral”) will typically be held in money market instruments or other cash equivalents.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.
Leverage Risk – Leverage is investment exposure that exceeds the initial amount invested. The loss on a leveraged investment may far exceed the Fund’s principal amount invested. Leverage may magnify the Fund’s gains and losses and, therefore, increase volatility. The use of leverage may result in the Fund having to liquidate holdings when it may not be advantageous to do so.