(YOLO) ADVISORSHARES PURE CANNABIS ETF

YOLO

Overview

Cannabis and its various applications have been used throughout human civilization for over 5,000 years. As society, business and regulatory landscapes evolve in the 21st century, the upside potential of cannabis as an emerging investment avenue has arrived. The portfolio manager believes today’s new era can be viewed in similar regard to post-Prohibition, commencing a growing acknowledgement and understanding of cannabis and its uses among a mainstream audience. The industries that comprise the multi-billion dollar cannabis universe represent a new frontier, where proper caution and due diligence must be exercised surrounding its regulations and risks, in seeking attractive long-term cannabis investment opportunities.

The AdvisorShares Pure Cannabis ETF (Ticker: YOLO) became the first actively managed ETF with a dedicated cannabis investment mandate domiciled in the United States. The AdvisorShares Pure Cannabis ETF, or YOLO, seeks long-term capital appreciation by investing in both domestic and foreign cannabis equity securities. YOLO is designed to fully-invest for pure cannabis exposure under the guidance of a deeply experienced portfolio management team navigating the emerging cannabis marketplace.

Symbol Exchange Inception Date CUSIP Indicative Value Options
YOLO NYSE Arca 4/17/2019 00768Y495 YOLO.IV Available
<strong>Why Invest in YOLO?</strong>
  • Long-Term Upside Potential – The emergence of select cannabis securities and their long-term growth potential adds a compelling element for investors seeking pure cannabis exposure and a potential high-growth complement to a broad-based equity allocation.
  • First Active ETF with Dedicated Cannabis Exposure – YOLO became the first actively managed ETF with dedicated cannabis exposure available in the U.S., which carries inherent advantages. YOLO can adjust its portfolio more quickly than a passive index-based strategy – an important attribute in a rapidly evolving cannabis marketplace that can witness fluctuations and changes among tradeable equities and an influx of new stock issues.
  • Experienced Portfolio Management Team – YOLO’s portfolio management team carries deep experience in the capital markets and a well-established expertise of investing in highly-regulated areas in the equity markets including cannabis. Their risk management and selective approach is an essential feature of YOLO, which does not blindly invest by following a market-cap-weighted index like other cannabis-related ETF offerings.
<strong>Where Can YOLO Fit in a Traditional Portfolio?</strong>

YOLO can deliver an alpha-seeking, high-growth complement or satellite equity holding to a broad-based equity allocation. YOLO can be used as a buy-and-hold strategy for investors seeking dedicated cannabis exposure for an equity portfolio.

<strong>Key Attributes</strong>
  1. Dedicated Cannabis Exposure Including Consumer Product Companies – The portfolio manager allocates across a universe of investable cannabis companies primarily in the U.S. and Canada engaging in legal business that span different industries, including those specializing in consumer products.
  2. Emerging Growth Opportunity – Cannabis securities span multiple industries including agriculture, biotechnology, pharmaceutical, real estate, retail, finance, and other medical applications. The portfolio manager believes that an evolving landscape of select, cannabis-related companies may provide upside potential that may lead to attractive growth opportunities.
  3. Merger & Acquisition Potential – Due to their emerging growth opportunity, companies involved in legal cannabis-related business both in the U.S. and Canada may benefit from potential merger and acquisition activity as the market matures and evolves.
<strong>About the Portfolio Managers</strong>

Dan Ahrens
Dan Ahrens is managing director and chief operating officer of AdvisorShares, and also portfolio manager of the AdvisorShares Vice ETF (Ticker: ACT). Dan carries over two decades of experience in the financial services industry serving in a variety of senior-level capacities. He founded Ahrens Advisors, L.P., an SEC-registered investment advisor, where he was portfolio manager of the Ladenburg Thalmann Gaming and Casino Fund. Dan also served as president of the MUTUALS.com Funds, where he launched the Vice Fund (VICEX) and served as its original portfolio manager. He was also the portfolio manager of the Generation Wave Growth Fund (GWGFX). During that time, he was also president and chief compliance officer of Mutuals Advisors, Inc, and acted as president, treasurer and financial & operations officer of an affiliated broker dealer firm. Dan is the author of “Investing in Vice” (St. Martin’s Press, 2004) and has appeared prominently across financial media outlets and major national and trade publications. He earned a Bachelor in Business Administration in Finance from Texas Tech University.

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YOLO

Fund

Price History

As of 10/23/2020

NAV $12.17 Closing Price $12.21
Change $-0.04 Close Change $1.98
Shares Outstanding 5,475,000 Volume 77647
4PM Bid/Offer Midpoint $12.22 Premium Discount $0.05
Assets Under Management $66,624,709.85    

Premium/Discount Historical Data | NAV Historical Data

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.

FUND

Performance

As of 9/30/2020

  NAV Market Price Return S&P 500
1 Month -13.19 -13.99 -3.80
3 Months 6.60 6.03 8.93
YTD -7.24 -7.31 5.57
1 Year -21.25 -22.39 15.15
Since Inception (04/17/2019, Cumulative) -41.09 -41.20 12.87

As of 9/30/2020

  NAV Market Price Return S&P 500
1 Month -13.19 -13.99 -3.80
3 Months 6.60 6.03 8.93
YTD -7.24 -7.31 5.57
Since Inception (04/17/2019, Cumulative) -41.09 -41.20 12.87

Performance data quoted represents past performance and is no guarantee of future results. All Fund data and performance data quoted is believed to be accurate, and unless otherwise stated, is sourced from the Fund administrator, the Advisor’s or Sub-Advisor’s proprietary data, and Morningstar. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Returns less than one year are not annualized.

Fund

Holdings

As of

Date Account Symbol Stock Ticker Security Number Security Description Shares/Par (Full) Price (Base) Traded Market Value (Base) Portfolio Weight % Asset Group
10/23/2020 YOLO VFF 92707Y108 VILLAGE FARMS INTERNATIONAL 1,484,266.00 5.38 7,985,351.08 11.99% FS
IIPR 45781V101 INNOVATIVE INDUSTRIAL PROPER 54,025.00 124 6,699,100.00 10.06% S
GRWG 39986L109 GROWGENERATION CORP 215,946.00 20.62 4,452,806.52 6.69% S
GWPH 36197T103 GW PHARMACEUTICALS -ADR 46,178.00 95 4,386,910.00 6.59% FS
GTBIF GTBIFTRS GREEN THUMB INDUSTRIES SWAP REC 220,400.00 16.59 3,656,436.00 5.49% TW
CURLF CURLFTRS CURALEAF HOLDINGS INC SWAP REC 376,000.00 9.67 3,635,318.40 5.46% TW
TCNNF TCNNFTRS TRULIEVE CANNABIS SWAP REC 149,000.00 24 3,576,000.00 5.37% TW
ARNA 40047607 ARENA PHARMACEUTICALS INC 37,493.00 81.34 3,049,680.62 4.58% S
CGC 138035100 CANOPY GROWTH CORP 151,593.00 19.73 2,990,929.89 4.49% FS
APHA 03765K104 APHRIA INC 656,605.00 4.55 2,987,552.75 4.49% FS
CRLBF CRLBFTRS CRESCO LABS INC SWAP REC 377,323.00 7.52 2,838,600.93 4.26% TW
GNLN 395330103 GREENLANE HOLDINGS INC - A 563,289.00 3.28 1,847,587.92 2.78% S
YCBD 12482W101 CBDMD INC 683,702.00 2.32 1,586,188.64 2.38% S
VLNS BKMPJ38 VALENS CO INC/THE 1,131,171.00 1.2 1,358,918.93 2.04% FS
AH BDRXWQ2 ALEAFIA HEALTH INC 3,210,314.00 0.41 1,318,103.38 1.98% FS
CWEB BGHY2B1 CHARLOTTES WEB HOLDINGS INC 392,027.00 2.99 1,171,431.04 1.76% FS
NEPT 64079L105 NEPTUNE WELLNESS SOLUTIONS I 547,046.00 1.92 1,050,328.32 1.58% FS
OGI BQ963P6 ORGANIGRAM HOLDINGS INC 788,146.00 1.25 988,778.06 1.49% FS
ZYNE 98986X109 ZYNERBA PHARMACEUTICALS INC 259,071.00 3.72 963,744.12 1.45% S
RIV BF5HVC9 CANOPY RIVERS INC 1,346,087.00 0.69 931,371.02 1.40% FS
ANDA G04415108 ANDINA ACQUISITION CORP III 67,790.00 10.18 690,102.20 1.04% FS
CRDL BHZT969 CARDIOL THERAPEUTICS INC-A 298,010.00 2.28 679,767.34 1.02% FS
PW 73933H101 POWER REIT 19,253.00 19.4 373,508.20 0.56% S
LABS BG87WT7 MEDIPHARM LABS CORP 572,390.00 0.64 365,577.55 0.55% FS
EMH BYQ0XN5 EMERALD HEALTH THERAPEUTICS 1,658,391.00 0.15 245,883.71 0.37% FS
CRBP 21833P103 CORBUS PHARMACEUTICALS HOLDI 232,292.00 1.01 234,614.92 0.35% S
KHRN BDGH0L6 KHIRON LIFE SCIENCES CORP 664,895.00 0.33 219,912.81 0.33% FS
CRON 22717L101 CRONOS GROUP INC 25,545.00 5.83 148,927.35 0.22% FS
HEXO 428304109 HEXO CORP 192,990.00 0.77 148,447.91 0.22% FS
WMD BDH43N9 WEEDMD INC 719,007.00 0.2 142,139.46 0.21% FS
NTEC M53644106 INTEC PHARMA LTD 553,495.00 0.22 121,768.90 0.18% FS
TGOD BG0DCR1 GREEN ORGANIC DUTCHMAN HOLDI 683,625.00 0.17 119,551.21 0.18% FS
TLRY 88688T100 TILRAY INC-CLASS 2 COMMON 15,159.00 6.73 102,020.07 0.15% S
FIRE BFN2HL7 SUPREME CANNABIS CO INC/THE 1,005,871.00 0.1 99,424.60 0.15% FS
ACB 05156X884 AURORA CANNABIS INC 14,559.00 4.68 68,136.12 0.10% FS
ITHUF ITHUFTRS IANTHUS CAPITAL HOLDINGS SWAP REC 464,000.00 0.07 32,148.70 0.05% TW
X9USDBLYT BLACKROCK TREASURY TRUST INSTL 62 8,970,869.85 1 8,970,869.85 13.48% MM
9999FWD$M DERIVATIVES COLLATERAL 7,110,000.00 100 7,110,000.00 10.68% MM
CASH -10,774,343.98 100 -10,774,343.98 -16.18% CA

Holdings and allocations are subject to risks and to change. A holding identified with an “MM” at the end of its name indicates it is a Money Market fund.

FUND

Characteristics

9/30/2020

YOLO Market Cap

YOLO Regional Allocation

FUND

Attributes

As of 8/31/2020

Description Amount formula_1
30-Day SEC Subsidized Yield 1.77% 0.00
30-Day SEC Unsubsidized Yield 1.66% 0.00

Past Performance is not indicative of future results. 30–Day SEC Yield (Standardized Yield) is an annualized yield that is calculated by dividing the investment income earned by the Fund less expenses over the most recent 30-day period by the current maximum offering price. Securities lending and swap income are included as part of the yield calculation, provided by BNY. 

FUND

Fees & Expenses

Management Fee 0.60%
Other Expenses 0.50%
Gross Expense Ratio 1.10%
Fee Waiver and/or Expense Reimbursement -0.36%
Net Expense Ratio 0.74%

The Advisor has contractually agreed to reduce its fees and/or reimburse expenses to keep net expenses (excluding amounts payable pursuant to any plan adopted in accordance with Rule 12b-1, interest expense, taxes, brokerage commissions, acquired fund fees and expenses, other expenditures which are capitalized in accordance with generally accepted accounting principles, and extraordinary expenses) from exceeding 0.75% of the Fund’s average daily net assets for at least one year from the date of the Prospectus.

Last Ten

Fund Distributions

Ex-Date Record Date Pay Date Cash Div ST Cap Gain LT Cap Gain Return of Capital Total Distribution (per share) YOLO
12/24/2020 12/28/2020 12/31/2020 - - - - - FORMULA
09/24/2020 09/25/2020 09/30/2020 $0.0737 $0.0000 $0.0000 $0.0000 $0.0737 VALUE
06/24/2020 06/25/2020 06/30/2020 $0.1075 $0.0000 $0.0000 $0.0000 $0.1075 VALUE
03/26/2020 03/27/2020 03/31/2020 $0.1262 $0.0000 $0.0000 $0.0000 $0.1262 VALUE
12/27/2019 12/30/2019 12/31/2019 $0.1913 $0.0742 $0.0000 $0.0000 $0.2655 VALUE
09/25/2019 09/26/2019 09/30/2019 $0.2760 $0.0000 $0.0000 $0.0000 $0.2760 VALUE

Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus and summary prospectus. Please read the prospectus and summary prospectus carefully before you invest. Foreside Fund Services, LLC, Distributor.

The Fund is subject to a number of risks that may affect the value of its shares. This section provides additional information about the Fund’s principal risks. The degree to which a risk applies to the Fund varies according to its investment allocation. Each investor should review the complete description of the principal risks before investing in the Fund. As with investing in other securities whose prices increase and decrease in market value, you may lose money by investing in the Fund.

Cannabis-Related Company Risk. Cannabis-related companies are subject to various laws and regulations that may differ at the state/local and federal level. These laws and regulations may (i) significantly affect a cannabis-related company’s ability to secure financing, (ii) impact the market for marijuana industry sales and services, and (iii) set limitations on marijuana use, production, transportation, and storage. Cannabis-related companies may also be required to secure permits and authorizations from government agencies to cultivate or research marijuana. In addition, cannabis-related companies are subject to the risks associated with the greater agricultural industry, including changes to or trends that affect commodity prices, labor costs, weather conditions, and laws and regulations related to environmental protection, health and safety. Cannabis-related companies may also be subject to risks associated with the biotechnology and pharmaceutical industries. These risks include increased government regulation, the use and enforcement of intellectual property rights and patents, technological change and obsolescence, product liability lawsuits, and the risk that research and development may not necessarily lead to commercially successful products.

Shares are bought and sold at market price not net asset value (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.