PSIL: 3rd Quarter 2025 Portfolio Review
Portfolio
Performance
PSIL delivered another strong quarter in Q3 2025, climbing +37.28% on a net asset value (NAV) basis and +36.78% in market price. This notable gain outpaced broader equity benchmarks, with the S&P 500 Index advancing 8.12% over the same period, continuing to underscore the resurgence in investor enthusiasm toward the psychedelic therapeutics space.
Portfolio
The fund maintained its active management approach throughout the quarter, and no positions were removed.
New positions include:
- Johnson & Johnson (JNJ): 3,600 shares
- Supernus Pharmaceuticals Inc. (SUPN): 15,525 shares
With high volatility in psychedelic securities, the Fund often adds to or trims positions. These decisions reflect the fund’s focus on optimizing the portfolio in response to both clinical and capital market dynamics
Winners and Losers
The third quarter featured sharp dispersion in returns among portfolio holdings, a hallmark of this emerging sector. Top performers in Q3 included:
- atai Life Sciences (ATAI): up +141.55%
- Mind Medicine Inc. (MNMD): +81.66%
- Compass Pathways Plc. (CMPS): +104.64%
On the other end of the spectrum, a few names weighed on performance:
- Cybin Inc. (CYBN): down -29.55%
- Neuronetics Inc. (STIM): down -21.78%
- Quantum BioPharma Ltd. (QNTM): down -15.81%
These figures highlight the inherently high-risk, high-reward profile of the psychedelics space, where investor sentiment is often closely tied to clinical trial milestones, capital access, and regulatory visibility.
Top Holdings
| Ticker | Security Description | Portfolio Weight % |
| ATAI | ATAI LIFE SCIENCES NV | 15.64% |
| MNMD | MIND MEDICINE MINDMED INC | 8.38% |
| CMPS | COMPASS PATHWAYS PLC | 7.78% |
| NRXP | NRX PHARMACEUTICALS INC | 6.59% |
| DRUG | BRIGHT MINDS BIOSCIENCES INC | 4.86% |
| RLMD | RELMADA THERAPEUTICS INC | 4.74% |
| GHRS | GH RESEARCH PLC | 4.51% |
| ALKS | ALKERMES PLC | 4.49% |
| SUPN | SUPERNUS PHARMACEUTICALS INC | 4.33% |
| VTGN | VISTAGEN THERAPEUTICS INC | 4.29% |
As of 09.30.2025. 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
In the third quarter of 2025, the psychedelics industry saw significant regulatory and clinical progress. The Czech Republic became the first country in Europe to legalize psilocybin for medical use, with a framework set to launch in 2026 through licensed healthcare facilities under physician supervision.¹
In the U.S., the DEA took a historic step by acknowledging psilocybin’s potential medical value, This move could expand access for terminally ill patients and veterans. After years of advocacy led by Seattle palliative care physician Dr. Sunil Aggarwal, the agency formally sent a petition to the Department of Health and Human Services (HHS) in August 2025 to begin a medical and scientific review of psilocybin’s federal classification.²
Political momentum also grew. Robert F. Kennedy Jr. called for the FDA to fast-track psychedelics such as MDMA and ibogaine within a year to address depression, addiction, and trauma. In Texas, lawmakers backed that effort by allocating $50 million toward ibogaine research.³
Clinical developments accelerated. atai Life Sciences announced positive Phase 2b results for its 5-MeO-DMT compound, BPL-003, on July 1, backed by $50 million from core investors including Christian Angermayer and Ferring Pharmaceuticals. By late September, atai and Beckley had advanced their 5-MeO-DMT benzoate candidate into a pivotal trial for treatment-resistant depression, reporting a 19-point drop in depression scores after two doses.⁴
Major pharmaceutical players also began taking notice. In August, AbbVie entered the space with a $1.2 billion deal, joining companies like Compass Pathways, Johnson & Johnson, and Otsuka in signaling that psychedelic medicine is gaining mainstream acceptance.⁵
The past quarter reflected an industry rebounding from the FDA disappointments of 2024, with growing optimism that psychedelic therapies could reshape the future of mental health treatment.
Sources:
1 Psychedelic Alpha. Parliament of the Czech Republic Chamber of Deputies 2025 9th Electoral Term. September 2025.
2 Forbes. Herrington, A.J. DEA Forwards Psilocybin Rescheduling Petition To HHS For Review. August 2025.
3 PBS News. Health. RFK Jr. suggests psychedelic therapy for depression and trauma has Trump administration’s support. July 2025.
4 Angermayer, Christian. atai Life Sciences – Strong Phase 2b topline data for BPL-003 (5-MeO-DMT) and further strategic backing. July 2025.
5 Reuters. Singh, Puyaan. AbbVie targets psychedelic-based depression drug market with $1.2 billion deal. August 2025.
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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.