MSOS: 3rd Quarter 2025 Portfolio Review
Portfolio
Performance
The AdvisorShares Pure US Cannabis ETF (MSOS) posted impressive gain in the third quarter of 2025, with its net asset value (NAV) up +102.24% and market price rising +101.25%. The uptick reflected renewal in investor optimism with the progress on U.S. federal cannabis reform.
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 Q3 2025, the top five MSOs represented 80.38% 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 allocations by quarter:
- Q4 2024: 84.46%
- Q1 2025: 81.06%
- Q2 2025: 84.04%
- Q3 2025: 80.38%
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 and added a few new names to the portfolio. The rebalancing efforts aimed to better reflect expected Federal Reform developments and control over-sized weightings.
Added:
- Village Farms International (VFF): 3,395.154 shares
- SNDL Inc. (SNDL): 2,168.16 shares
Removed:
- 4Front Ventures Corp. (FFNTF)
- Lowell Farms Inc. (LOWLF)
- Gold Flora Corp. (GRAM)
Winners and Losers
Almost all holdings had large gains the top contributors to the fund were:
- Curaleaf Holdings Inc. (CURLF): up 240.24%
- Trulieve Cannabis (TCNNF): up 102.52%
- Cresco Labs Inc. (CRLBF): up 152.19%
- Verano Holdings Corp. (VRNOF): 163.97%
- Green Thumb Industries (GTBIF): up +46.07%
Top Holdings
| Ticker | Security Description | Portfolio Weight % |
| CURLF | CURALEAF HOLDINGS | 23.50% |
| TCNNF | TRULIEVE CANNABIS | 22.30% |
| GTBIF | GREEN THUMB INDUSTRIES | 20.72% |
| CRLBF | CRESCO LABS | 7.24% |
| VRNOF | VERANO HOLDINGS CORP | 6.59% |
| GLASF | GLASS HOUSE BRANDS | 5.53% |
| TSNDF | TERRASCEND CORP | 5.31% |
| JUSHF | JUSHI HOLDINGS INC | 2.55% |
| VFF | VILLAGE FARMS INTERNATIONAL | 1.21% |
| CBSTF | COLUMBIA CARE INC | 0.67% |
As of 09.30.2025. 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
Cannabis Landscape
Q3 2025 saw mixed progress in cannabis regulation but growing political support. President Trump expressed interest in reclassifying marijuana to Schedule III during a fundraiser with cannabis executives, calling it an “80-20 issue” with broad public backing. His comments fueled optimism and short-term market gains. Later, on September 28, Trump posted a video on Truth Social promoting CBD use for seniors and suggesting Medicaid coverage for CBD products, sparking another wave of attention across the sector.1
Representative Greg Steube (R-FL) also introduced the Marijuana 1-to-3 Act, a bill seeking to move cannabis to Schedule III legislatively, emphasizing that its current classification alongside heroin is outdated.¹
Despite this momentum, federal rescheduling efforts stalled amid political turnover. The DEA delayed its cannabis rescheduling appeal for more than 180 days due to administrative challenges and leadership changes, pausing a January hearing after bias allegations surfaced. Meanwhile, a House spending bill prohibited the DOJ from using funds for rescheduling, and Senate proposals focused on redefining hemp and restricting intoxicating hemp products such as delta-8 THC.2
Adding to the setbacks, a federal court ruled that state-licensed cannabis businesses remain ineligible for Employee Retention Credit (ERC) tax refunds under Section 280E.²
State developments moved in multiple directions. Texas banned hemp-derived THC products despite calls for regulation, while California postponed its next cannabis excise-tax increase to 2030. Delaware launched adult-use sales on August 1, and Minnesota decriminalized bong water while finalizing new tribal compacts. Nebraska approved emergency medical-cannabis rules. Across the country, more than 30 states introduced or passed restrictions on intoxicating hemp products, and Congress continued to debate related provisions in the upcoming Farm Bill.1
Legal markets continued to mature. New York’s regulated market reached an annualized pace of $842 million by May 2025, with sales approaching $2 billion and 428 licensed dispensaries. Ohio’s newly launched recreational program topped $600 million in total sales, averaging about $1.8 million per day.¹
However, the sector faced increasing commoditization. Wholesale flower prices have fallen roughly 32 percent since 2021, while illicit competition remains comparable in size to legal sales in several states, particularly California. Industrywide, unpaid taxes and debts exceeded $3.8 billion.1
Despite those headwinds, certain product segments continued to expand. Edibles are projected to reach $48.7 billion globally by 2030, with beverages and infused pre-rolls gaining traction—recently surpassing vape products in total units sold.²
Outlook
In Q3 2025, the U.S. cannabis industry exhibited a mix of stability and selective growth amid persistent volatility, with federal rescheduling efforts stalled by DEA delays and political uncertainties, though Presidential support and state-level expansions drove momentum. Looking ahead, renewed optimism suggests a path to explosive growth focusing on selectivity in investments across high-growth state markets, vertical integration, premium indoor-grown segments, and ancillary technologies for digital sales, delivery, and fintech, contingent on potential federal reforms and market maturation.
Sources:
1 Benesch. Cannabis Industry Quarterly Update Q3 2025.
2 Forbes. Hasse, Javier. America’s Cannabis Market Is Breaking Down. A Select Few Are Breaking Out. October 2025.
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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.