PSIL: 2nd Quarter 2026 Portfolio Review
Portfolio
The AdvisorShares Psychedelics ETF (PSIL) delivered a strong second quarter, returning +38.67% (NAV) / +41.63% (market). PSIL meaningfully outpaced the broader market rally with the S&P 500 Index returning +15.20% over the same period.
Over the trailing one-year period ending June 30, 2026, PSIL gained +88.38% (NAV) / +89.52% (market), continuing a run driven by both clinical momentum and, this quarter, a significant shift in the regulatory backdrop.
Portfolio
PSIL maintained an active management approach during the second quarter, with position sizing continuing to reflect the sector’s elevated volatility and the fast-moving nature of clinical and regulatory catalysts.
The most significant development of the quarter for the portfolio was regulatory rather than clinical: on April 18, 2026, President Trump signed an executive order directing federal agencies to accelerate the research, review, and approval of psychedelic drug therapies. Days later, on April 24, the FDA issued Commissioner’s National Priority Vouchers (CNPVs) to three psychedelic therapy programs — Compass Pathways’ COMP360 (synthetic psilocybin for treatment-resistant depression), Usona Institute’s psilocybin program, and Transcend Therapeutics’ methylone program for PTSD. The CNPV designation can compress the FDA’s standard 10-to-12-month review timeline down to just one to two months once a full NDA is submitted.
New positions were added in:
- IGC Pharma Inc. (IGC): +678,480 shares
- Optimi Health Corp. (OPTH): +102,794 shares
- Psyence Biomedical Ltd. (PBM): +122,184 shares
Winners and Losers
Second-quarter performance varied meaningfully across the portfolio, reflecting the diverse opportunities and differing stages of development within this emerging field.
Leading contributors during the quarter included:
- Definium Therapeutics Inc. (DFTX): +148.89%
- Compass Pathways (CMPS): +155.88%
- AtaiBeckley Inc. (ATAI): +48.87%
The largest detractors were:
- Quantum BioPharma Ltd. (QNTM): -23.82%
- Pasithea Therapeutics Corp. (KTTA): -30.52%
- Vistagen Therapeutics Inc. (VTGN): -60.93%
Top Holdings
| Ticker | Security Description | Portfolio Weight % |
| DFTX | DEFINIUM THERAPEUTICS INC | 12.85% |
| CMPS | COMPASS PATHWAYS PLC | 11.45% |
| ATAI | ATAIBECKLEY INC | 10.47% |
| RLMD | RELMADA THERAPEUTICS INC | 6.84% |
| NRXP | NRX PHARMACEUTICALS INC | 6.07% |
| NBIX | NEUROCRINE BIOSCIENCES INC | 4.38% |
| HELP | CYBIN INC | 4.35% |
| GHRS | GH RESEARCH PLC | 4.31% |
| ALKS | ALKERMES PLC | 4.30% |
| ANRO | ALTO NEUROSCIENCE INC | 4.20% |
As of 06.30.2026. 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
Six days later, on April 24, the FDA acted on that directive, granting Commissioner’s National Priority Vouchers to three psychedelic therapy programs: Compass Pathways’ COMP360, Usona Institute’s psilocybin program, and Transcend Therapeutics’ methylone-based PTSD treatment. For Compass, the most advanced of the three, the voucher builds on a rolling NDA submission already underway following two successful Phase 3 trials. The company reported continued durability in its COMP006 trial data, with the treatment showing sustained benefit through six months, and has indicated it remains on track to complete its full NDA submission in the fourth quarter of 2026, with a potential FDA decision as early as late 2026 or early 2027.
It’s worth being precise about where things stand: as of the end of the second quarter, psilocybin remains a Schedule I controlled substance under federal law, and FDA approval, while significantly accelerated on the calendar, is not guaranteed and still requires the agency’s full evidentiary standard to be met. Should approval occur, DEA rescheduling would still need to follow before broad commercial access could proceed.
At the state level, momentum from Q1 continued, with Oregon’s and Colorado’s supervised psilocybin service programs continuing to operate and generate real-world treatment data alongside the ongoing clinical trial results.
Outlook
As we move into Q3 2026, the sector’s trajectory is more clearly defined than it has been at any point in the fund’s history. Compass Pathways is expected to report additional Phase 3 data (26-week Part B results from COMP006) early in the quarter, and the company remains on track for a completed NDA submission by Q4 2026. With the CNPV designation in place, the runway from full submission to a potential FDA decision has been substantially shortened. We expect continued volatility at the individual position level as trial data, regulatory milestones, and competitive dynamics across the broader psychedelics pipeline continue to unfold, and the fund will continue to actively manage exposures accordingly.
Sources:
1. Compass Pathways plc. Compass Pathways Announces FDA Granted NDA Rolling Review Request and Awarded Commissioner’s National Priority Voucher. April 24, 2026.
2. Medical Daily. Psilocybin Could Become the First FDA-Approved Psychedelic Therapy Within Months. 2026.
3. Clinical Trials Arena. Compass’ psilocybin shows six-month durability in Phase III trial. 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
The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks.
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.