PSIL: 1st Quarter 2025 Portfolio Review
Portfolio
PERFORMANCE
PSIL delivered positive performance in Q1 2025, rising +5.88% on a net asset value (NAV) basis and +7.47% in market price. This outperformance stood in contrast to the broader market, with the S&P 500 Index declining -4.27% over the same period.
PORTFOLIO
During the quarter, PSIL made several tactical adjustments, reflecting its active approach to capital allocation. New positions added include:
- Neuphoria Therapeutics Inc. (NEUP): 69,659 shares
- Pasithea Therapeutics Corp. (KTTA): 53,547 shares
- Silo Pharma Inc. (SILO): 124,236 shares
The fund exited its positions in the following companies:
- Lucy Scientific Discovery Inc. (LSDIF)
- Psybio Therapeutics Corp. (PSYBF)
- Seelos Therapeutics Inc. (SEELQ)
WINNERS / LOSERS
Top performers in Q1 included:
- Neuronetics Inc. (STIM): +128.57%
- Quantum BioPharma Ltd. (QNTM): +113.88%
- GH Research (GHRS): +57.57%
On the downside:
- Incannex Healthcare Inc. (IXHL): -68.09%
- Cybin Inc. (CYBN): -28.16%
These figures highlight the high-risk, high-reward nature of the psychedelics sector, where volatility is amplified by early-stage business models and evolving clinical trial data.
Top Holdings
| Ticker | Security Description | Portfolio Weight % |
| MNMD | MIND MEDICINE MINDMED INC | 8.06% |
| SAGE | SAGE THERAPEUTICS INC | 7.66% |
| ALKS | ALKERMES PLC | 7.60% |
| NRXP | NRX PHARMACEUTICALS INC | 6.77% |
| ATAI | ATAI LIFE SCIENCES NV | 6.40% |
| STIM | NEURONETICS INC | 5.11% |
| DRUG | BRIGHT MINDS BIOSCIENCES INC | 4.69% |
| ITCI | INTRA-CELLULAR THERAPIES INC | 4.68% |
| CMPS | COMPASS PATHWAYS PLC | 4.63% |
| NEUP | NEUPHORIA THERAPEUTICS INC | 4.62% |
As of 3.31.2025. 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
Q1 2025 brought cautious optimism to the psychedelics investment space, as the sector began to rebound from a muted 2024. Key developments include:1
- Compass Pathways (CMPS): Continued progress on Phase 3 trials for its psilocybin candidate, COMP360, with results expected by Q4 2024 and mid-2025. The company raised $125 million and increased R&D spending by 25.4% in 2023.
- Cybin (CYBN): Advanced CYB003 (for major depressive disorder) into Phase 3 and CYB004 (for generalized anxiety) into Phase 2, with data anticipated in the first half of 2025.
- MindMed (MNMD): Entered Phase 3 for its LSD-based compound MM120, targeting anxiety. The program received FDA Breakthrough Therapy Designation.
- Atai Life Sciences (ATAI): Invested $50 million in Beckley Psytech, expanding into fast-acting psychedelic therapeutics. The company also narrowed its quarterly net loss to $26.7 million from $33.1 million a year ago.
The global psychedelics market is forecasted to grow from $603.1 million in 2024 to $1.18 billion by 2034, representing a compound annual growth rate (CAGR) of 7%.2 Despite this growth potential, investor sentiment remains cautious, with many psychedelics stocks trading below cash value amid broader risk-off market conditions.
Q1 2025 marked a pivotal but uneven period for the psychedelics sector. While clinical progress and funding activity accelerated, regulatory timelines remain uncertain. With more than 50 publicly traded companies now in the space, investors are increasingly focused on fundamentals—favoring companies with advanced clinical pipelines, adequate cash reserves, and diversified assets.
1 Motley Fool. Keith Speights. Best Psychedelic Stocks to Buy in April 2025. April 3, 2025.
2 AlphaRoot, What’s the Current State of the Psychedelics Market?, March 21, 2005.
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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.