YOLO: 2nd Quarter 2021 Portfolio Manager Review
In the 2nd quarter of 2021, the AdvisorShares Pure Cannabis ETF (NYSE: YOLO) declined -10.12% on its net asset value (NAV) and -10.58% on its market price. Year to date, YOLO has gained 24.21% on NAV and 24.16% on market price, outpacing its sister fund MSOS that gets more attention. Even with the negative quarter, it’s been a strange year in 2021 with Canadian cannabis stocks outperforming U.S. stocks as a group, even while most experts are much more bullish on U.S. cannabis prospects. For the full one-year period, July 1, 2020, through June 30, 2021, YOLO gained 109.96% on its NAV and 109.35% on market price.* While those seems like strong returns, cannabis stocks hit a recent high on about February 10, and losses have been frustrating since.
Federal cannabis reform is moving much slower than many investors expected, but cannabis fundamentals (especially in the U.S.) are very strong. I’m expecting better things in the second half of the calendar- driven primarily by U.S. operators.
During the quarter, YOLO didn’t add any new positions. Of course, we’re trimmed some and added to other existing positions opportunistically as we see fit.
Contributors | Detractors:
During the quarter, losers outnumbered winners. Some of the winners were quite small holdings that had little impact. Among significant holdings, second-largest Industrial Properties (NYSE: IIPR) up 6.79%, third-largest Green Thumb Industries (OTC GTBIF – swap) up over 13%, and Tessascend (OTC TRSSF – swap), was up over 15%.
Detractors included top holding Village Farms International (NASDAQ: VFF) down 18%, Canopy Growth (NASDAQ: CGC) down over 24%, and Tilray (NASDAQ: TLRY) over 17%. On the U.S. side, Curaleaf (OTC CURLF – swap) was down almost 7%, Trulieve (OTC TCNNF – swap) down 17%, and Cresco Labs (OTC CRLBF – swap) lost 12%.
|Ticker||Security Description||Portfolio Weight %|
|VFF||VILLAGE FARMS INTERNATIONAL||15.06%|
|IIPR||INNOVATIVE INDUSTRIAL PROPER||9.83%|
|GTBIF||GREEN THUMB INDUSTRIES SWAP REC||6.70%|
|TLRY||TILRAY INC-CLASS 2 COMMON||6.45%|
|CGC||CANOPY GROWTH CORP||6.30%|
|CURLF||CURALEAF HOLDINGS INC SWAP REC||5.95%|
|HRVSF||HARVESTHEALTH SWAP R||5.30%|
|CRLBF||CRESCO LABS INC SWAP REC||4.89%|
|TCNNF||TRULIEVE CANNABIS SWAP REC||4.77%|
As of 06.30.2021. Cash is not included.
Please see our complete Fund holdings at advisorshares.com/etfs/yolo. The holdings details are updated each market day.
Past Manager Commentary