PSIL: 4th Quarter 2025 Portfolio Review
Portfolio
Performance
PSIL delivered modest results in the fourth quarter of 2025, rising +0.01% (NAV) and -0.73% (market). Performance trailed broader equity markets, as the S&P 500 Index advanced +2.66% during the same period amid a general market slowdown.
For the full year ending December 31, 2025, PSIL generated strong gains of +73.43% (NAV) and +74.81% (market), significantly outperforming the S&P 500 Index, which rose +17.88%. This performance reflects increasing investor interest in the psychedelic medicine space as therapeutic development and long-term adoption trends continue to evolve.
Portfolio
The ETF maintained an active management approach during the period, with two new positions added to the portfolio:
- AbbVie Inc (ABBV): +2,943 shares
- Johnson & Johnson (JNJ): +3,036 shares
- Alto Neuroscience Inc (ARNO): +44,077 shares
(Some of these may be just temporary holdings)
One position was exited during the period:
- Psyence Biomedical Ltd (PBM)
Given the heightened volatility within the psychedelic sector, the ETF actively adjusts position sizes as market conditions evolve. These portfolio actions reflect a focus on aligning exposures with therapeutic development progress and broader capital market dynamics.
Winners and Losers
The fourth quarter displayed notable variation in gains across the holdings, characteristic of this promising field.
Leading contributors in Q4 comprised of:
- Relmada Therapeutics Inc. (RLMD): +140.30%
- Alto Neuroscience Inc (ARNO): +158.35%
- Bright Minds Biosciences Inc (DRUG): +32.83%
Laggers consisted of:
- Vistagen Therapeutics Inc (VTGN): -81.30%
- Neuphoria Therapeutics Inc (NEUP): -67.09%
- Atai Beckley (ATAI): -22.68%
These results underscore the inherently high-risk, high-reward profile of the psychedelic sector, where market sentiment is closely tied to research developments, capital availability, and regulatory clarity.
Top Holdings
| Ticker | Security Description | Portfolio Weight % |
| ATAI | ATAI LIFE SCIENCES NV | 11.20% |
| DFTX | DEFINIUM THERAPEUTICS, INC | 9.01% |
| CMPS | COMPASS PATHWAYS PLC | 8.72% |
| SUPN | SUPERNUS PHARMACEUTICALS INC | 7.22% |
| RLMD | RELMADA THERAPEUTICS INC | 6.56% |
| GHRS | GH RESEARCH PLC | 6.31% |
| ALKS | ALKERMES PLC | 5.96% |
| NBIX | NEUROCRINE BIOSCIENCES INC | 5.23% |
| DRUG | BRIGHT MINDS BIOSCIENCES INC | 4.89% |
| NRXP | NRX THERAPEUTICS INC | 4.86% |
As of 12.31.2025. 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
During the fourth quarter of 2025, the psychedelics field experienced noteworthy policy and therapeutic advancements. The Czech Republic progressed as Europe’s pioneer in sanctioning psilocybin for therapeutic application, with implementation slated for 2026 via authorized medical centers under doctor oversight.1
In the United States, the DEA’s recognition of psilocybin’s therapeutic promise marked a landmark, potentially broadening availability for those with terminal conditions and former service members. Following prolonged efforts by advocates including Seattle’s Dr. Sunil Aggarwal, the DEA officially forwarded a request to HHS in August 2025 for an evaluation of psilocybin’s scheduling.2
Governmental support intensified. Robert F. Kennedy Jr. advocated for expedited FDA approvals of substances like MDMA and ibogaine within 12 months to combat mood disorders, substance abuse, and psychological injuries. Texas legislators reinforced this by committing $50 million to ibogaine studies.3
Research strides quickened. GH Research and Compass Pathways secured FDA approval to proceed with trials in December. atai Life Sciences shared encouraging Phase 2b outcomes for its 5-MeO-DMT variant, BPL-003, earlier in the year, designed to treat Treatment Resistant Depression (TRD), supported by substantial investor funding.1 Toward quarter’s end, collaborations pushed forward pivotal studies for depression treatments, noting significant score reductions post-dosing. Additional partnerships emerged, with entities like Compass Pathways accelerating timelines, alongside established players indicating psychedelics’ integration into conventional healthcare.
The recent period signified a sector recovering from prior FDA hurdles, fostering heightened confidence that psychedelic interventions might revolutionize mental wellness care.
As 2026 commences, the psychedelics sector envisions accelerated growth, propelled by impending approvals and expanded trials, potentially yielding breakthroughs in depression and PTSD therapies. Policy advancements, including European legalizations and U.S. rescheduling reviews, could unlock further funding and research, though challenges like ethical concerns and trial complexities may temper pace. Overall, the industry is poised for substantial milestones, benefiting innovative firms amid rising mainstream adoption.
Sources:
- Psychedelic Alpha. 2025 Year in Review. January 2nd, 2026.
- Psychedelic Drugs News. Top Headlines. January 22nd, 2026.
- The Petrie-Flom Center. Research. The Project on Psychedelics Law and Regulation (POPLAR).
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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
Definitions:
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.