PSIL: 1st Quarter 2026 Portfolio Review
Portfolio
The AdvisorShares Psychedelics ETF (PSIL) delivered modest results in Q1 2026, returning -1.05% (NAV) / -1.45% (market). That compared favorably to the S&P 500 Index, which declined -4.33% over the same period and marked a meaningful relative outperformance for a sector that tends to carry higher company-specific risk.
Over the trailing one-year period ending March 31, 2026, PSIL gained +62.08% (NAV) / +60.30% (market), continuing to outpace the broader market as clinical progress in the space has drawn more investor attention.
Portfolio
PSIL maintained an active management approach during the first quarter.
Definium Therapeutics Inc. (DFTX), formerly Mind Medicine Inc. (MNMD), rebranded in January, to evolve from a psychedelic-focused startup into a more mature pharmaceutical company focused on late-stage psychiatry.
In January, Cybin Inc. (CYBN) announced a name change and rebrand to Helus Pharma (HELP). The move aligns with the company’s transition to a commercial-stage pharmaceutical company, highlighted by its lead treatment for major depressive disorder advancing into Phase 3 trials.
Given the elevated volatility in the psychedelic sector, we continued to actively adjust position sizes in response to evolving market conditions and clinical developments.
Winners and Losers
The first quarter displayed notable variation in gains across the holdings, characteristic of this promising field.
Leading contributors during the quarter included:
- Relmada Therapeutics Inc. (RLMD): +44.10%
- Definium Therapeutics Inc. (DFTX): +41.15%
- Alto Neuroscience Inc. (ARNO): +26.29%
The largest detractors were:
- Helus Pharma Inc. (HELP): -40.59%
- Compass Pathways (CMPS): -19.86%
- AtaiBeckley Inc. (ATAI): -13.45%
These results reflect the inherently binary nature of the psychedelics and mental health space, where a single clinical readout or regulatory development can cause sharp moves, positive or negative, in individual stocks.
Top Holdings
| Ticker | Security Description | Portfolio Weight % |
| RLMD | RELMADA THERAPEUTICS INC | 10.17% |
| ATAI | ATAIBECKLEY INC | 9.92% |
| DFTX | DEFINIUM THERAPEUTICS INC | 8.52% |
| CMPS | COMPASS PATHWAYS PLC | 6.74% |
| NBIX | NEUROCRINE BIOSCIENCES INC | 4.66% |
| GHRS | GH RESEARCH PLC | 4.65% |
| HELP | CYBIN INC | 4.64% |
| ALKS | ALKERMES PLC | 4.60% |
| JNJ | JOHNSON & JOHNSON | 4.56% |
| ANRO | ALTO NEUROSCIENCE INC | 4.55% |
As of 03.31.2026. Cash is not included. Holdings are subject to change.
Please see our complete fund holdings at advisorshares.com/etfs/psil. The holdings details are updated each market day.
Psychedelics Landscape
The broader regulatory environment continued to shift in the sector’s favor. FDA Commissioner Marty Makary and Health Secretary Robert F. Kennedy Jr. have both expressed support for accelerating development of psychedelic therapeutics.² At the state level, South Dakota’s House and Senate both advanced a trigger law in February 2026 that would instantly legalize prescription psilocybin upon FDA approval, and similar legislation is active in Iowa, Kansas, Virginia, and West Virginia.³ Oregon’s state-licensed psilocybin service centers have now served more than 16,000 clients, and Colorado has 34 licensed healing centers operating, providing real-world evidence alongside clinical trial data.
Federal research funding entered the picture in a meaningful way during the quarter. In February 2026, OHSU received a $3.3 million, five-year NIH/NIDA grant, the first federal grant ever awarded to study legal psilocybin services in community settings.³
Beyond psilocybin, Definium Therapeutics Inc.’s (formely MindMed) Phase 3 program for MM120 (an LSD-based compound for generalized anxiety disorder) continued enrolling patients, and Cybin’s (now Helus Pharma) deuterated psilocybin analog CYB003 advanced in its Phase 3 major depressive disorder study.
The sector’s inherent volatility remains. Individual position returns can move sharply based on trial data or regulatory announcements. The pipeline is broad, and setbacks in one program do not invalidate the therapeutic rationale for the broader field. What has changed meaningfully is the regulatory and political backdrop.
Outlook
The second half of 2026 is shaping up to be the most consequential period in the history of psychedelic medicine. Compass Pathways is on a path toward a rolling NDA submission and a potential approval decision that would open the market to an entirely new class of therapeutics. Multiple other programs across psilocybin, LSD-based compounds, and novel serotonergic agents are at Phase 3 or approaching it. The institutional and political support for expedited review is present in a way it has not been before. We expect volatility to persist at the individual position level, and the ETF will continue to actively manage exposures as clinical and regulatory milestones unfold.
Sources:
1. BioPharma Dive. Compass, with Phase 3 hits, ready to take psilocybin to the FDA. February 17th, 2026.
2. STAT News. Compass Pathways expects earlier FDA approval decision on its psilocybin drug. November 4th, 2025.
3. Psychedelic Beacon. Psilocybin FDA Approval Status 2026: Complete Timeline & Tracker. Updated April 9th, 2026.
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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 psychedelics 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
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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.
There is no guarantee that the Fund will achieve its investment objective. An investment in the Fund is subject to risk, including the possible loss of principal amount invested.
Psychedelic drugs, also known as hallucinogens, are a group of substances, including psilocybin, that are used to change and enhance sensory perceptions, thought processes, and energy levels. Psychedelic medicines, therapeutics, and healthcare treatments may be used in the treatment of illnesses such as depression, addiction, anxiety and post-traumatic stress disorder. Psychedelic medicine companies include life sciences companies having significant business activities in, or significant exposure to, the psychedelics industry including producers or distributors of psychedelic medicines, biotechnology companies engaged in research and development of psychedelic medicines, and companies that are part of the supply chain for psychedelics.
Psychedelics Companies Risk. Psychedelics companies are subject to various laws and regulations that may differ at the state/local and federal level. These laws and regulations may significantly affect a psychedelics company’s ability to secure financing, impact the market for psychedelics and business sales and services, and set limitations on psychedelics use, production, transportation, and storage. There can be no guarantees that such approvals or administrative actions will happen or be favorable for psychedelics companies, and such actions may be subject to lengthy delays, and may require length and expensive clinical trials. Additionally, therapies containing controlled substances may generate public controversy. Political and social pressures and adverse publicity could lead to delays in approval of, and increased expenses for, companies and any future therapeutic candidates they may develop. All of these factors and others may prevent psychedelics companies from becoming profitable, which may materially affect the value of certain Fund investments. In addition, psychedelics are subject to the risks associated with the biotechnology and pharmaceutical industries.
In Canada, certain psychedelic drugs, including psilocybin, are classified as Schedule III drugs under the Controlled Drugs and Substances Act (“CDSA”) and, as such, medical and recreational use is illegal under Canadian federal laws. In the United States, certain psychedelic drugs, including psilocybin, are classified as Schedule I drugs under the Controlled Substances Act (“CSA”) and the Controlled Substances Import and Export Act (the “CSIEA”) and, as such, medical and recreational use is illegal under the U.S. federal laws. There is no guarantee that psychedelic drugs or psychedelic-inspired drugs will ever be approved as medicines in either jurisdiction.
In the United States, scheduling determinations by the Drug Enforcement Agency (“DEA”) are dependent on Food and Drug Administration (“FDA”) approval of a substance or a specific formulation of a substance. Unless and until psilocybin, psilocin, or other psychedelics-based products receive FDA approval, such products may be prohibited from sale, which could limit the growth opportunities for certain portfolio companies of the Fund. Even if approved by the FDA, the manufacture, importation, exportation, domestic distribution, storage, sale, and legitimate use of such products will continue to be subject to a significant degree of regulation by the DEA.
Security prices of small cap companies may be more volatile than those of larger companies and therefore the Fund’s share price may be more volatile than those of funds that invest a larger percentage of their assets in securities issued by larger-cap companies. These risks are even greater for micro-cap companies.
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 change.
The views in this commentary are those of the portfolio manager and many 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.