YOLO: 4th Quarter 2023 Portfolio Review
Based on net asset value (NAV), YOLO was down 10.81% for the 4th quarter of 2023.
The portfolio welcomed a new addition with the inclusion of Ispire Technology Inc. (ISPR), comprising 79,858 shares. During this period, no positions were removed from the portfolio. Instead, we maintained our proactive approach by continuously adjusting weightings to effectively manage the overall portfolio.
Winners and Losers
During the quarter, Innovative Industrial Properties (IIPR) showed significant growth, with an increase of 35.73%, while Ispire Technology Inc. (ISPR) also demonstrated positive performance, recording a gain of 32.28%. On the downside, IM Cannabis Corp. (IMCC) experienced a decline of 45.50%, and Power REIT (PW) was down 45.86%.
|Portfolio Weight %
As of 12.312023. Cash is not included. Subject to change.
Please see our complete Fund holdings at advisorshares.com/etfs/yolo. The holdings details are updated each market day.
International Cannabis Landscape
International cannabis companies have experienced an increase in their activities, as the US Senate Banking Committee gave approval to a bipartisan marijuana banking bill, the SAFER Banking Act, and the release of a letter from the Department of Health and Human Services (HHS) recommending the “rescheduling” of cannabis by the Drug Enforcement Agency (DEA).
While international investment opportunities are limited, but growing, some of the highlights for 2023 include:
- Germany has taken significant steps towards potentially becoming the EU’s largest economy to legalize marijuana for adults. However, the final vote on the proposal has been postponed, and it is now expected to take place in early 2024.
- In 2023, Colombian lawmakers achieved significant strides in the direction of legalizing marijuana, progressing legislation through the country’s Chamber of Representatives and a Senate committee. However, in December, despite supporters urging urgent Senate consideration of the bill, the full chamber decided to set aside the proposal during its fourth debate, one of eight required to adopt the constitutional amendment. This setback implies that advocates will need to initiate the two-year process anew in 2024.
- As the year concluded, lawmakers in Ukraine approved a bill to legalize medical marijuana on a national level, paving the way for it to be signed into law by President Volodymyr Zelensky
- In 2021, Malta, the smallest country in the European Union, made history by becoming the first on the continent to legalize marijuana. This year, the nation further advanced the implementation of this reform by becoming the first to issue licenses for nonprofit “cannabis associations,” allowing them to commence the cultivation of the plant.
- In December, organizers in Italy initiated the circulation of a petition for a cannabis-only measure. This proposed measure aims to permit the home cultivation of four plants, establish social clubs over time, and eliminate penalties for consumers—aligning with approaches seen in Malta and the German proposal.
- Luxembourg achieved a milestone last summer by becoming the second European Union country, following Malta, to legalize the possession and cultivation of marijuana. Lawmakers successfully passed the legalization law in June, and it came into effect the following month.
- Switzerland took a tentative step into cannabis legalization this year by introducing a regulated sales pilot program. This initiative is limited to a select number of participants and operates in a few specific locations.
- In mid-December, the Netherlands marked a significant milestone as two cities, Breda and Tilburg, commenced the sale of the nation’s first legally cultivated cannabis.
- The Albanian Parliament has legalized cannabis for medical purposes in July.
We want to always remind people to think about how they want to invest in the space as YOLO is designed to be fully or mostly fully invested. It’s not a fully tactical strategy. So if you want to have a more aggressive risk managed approach to investing in this space, you will want to have a plan/strategy to trade around YOLO. Regardless of the type of investor you are, we appreciate your investment and trading of YOLO as we work to grow the ETF and continue to raise awareness around the cannabis industry and its investment opportunities.
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