YOLO: 2nd Quarter 2025 Portfolio Review
Portfolio
PERFORMANCE
In the second quarter of 2025, the AdvisorShares Pure Cannabis ETF (YOLO) returned +6.98% on a net asset value (NAV) basis and +6.82% at market price. This strong performance stood in sharp contrast to the North American Marijuana Index (NAMI), which declined -7.38%, and to the AdvisorShares Pure U.S. Cannabis ETF (MSOS), which fell -8.90% (NAV) over the same period.
YOLO’s positive return highlights the importance of active management and global diversification in navigating an industry still shaped by regulatory headwinds. International exposure played a significant role in offsetting domestic weakness, as U.S. focused cannabis equities continued to face pressure from stalled policy reforms and competitive challenges.
PORTFOLIO
The fund executed targeted changes during the quarter to enhance portfolio resilience and align with evolving market opportunities.
A position was reestablished in:
- Aurora Cannabis Inc. (ACB): 50,380 shares
The following positions were exited:
- Agrify Corp. (AGFY)
- WM Technology Inc. (MAPS)
These moves reflect a strategic shift toward companies with improved fundamentals and a clearer path to profitability, while trimming exposure to names with declining momentum or uncertain outlooks.
WINNERS AND LOSERS
YOLO’s second-quarter gains were driven by several standout performers:
- Village Farms International Inc. (VFF): +81.85%
- Cardiol Therapeutics Inc. (CRDL): +42.43%
- High Tide Inc. (HITI): +20.88%
On the downside, performance was tempered by a few notable detractors:
- AdvisorShares Pure US Cannabis ETF (MSOS): -8.91%.
- SNDL Inc. (SNDL): -14.18%.
- Jazz Pharmaceuticals (JAZZ): -14.52%
Top Holdings
| Ticker | Security Description | Portfolio Weight % |
| MSOS | ADVISORSHARES PURE US CANN | 31.87% |
| VFF | VILLAGE FARMS INTERNATIONAL | 15.03% |
| HITI | HIGH TIDE INC | 13.77% |
| SNDL | SNDL INC | 5.32% |
| CRDL | CARDIOL THERAPEUTICS INC-A | 4.73% |
| CRON | CRONOS GROUP INC | 4.58% |
| JAZZ | JAZZ PHARMACEUTICALS PLC | 4.45% |
| OGI | ORGANIGRAM GLOBAL INC | 4.39% |
| REFI | CHICAGO ATLANTIC REAL ESTATE | 2.95% |
| ROMJF | RUBICON ORGANICS INC | 1.84% |
As of 06.30.2025. Cash is not included. Holdings are subject to change.
Please see our complete Fund holdings at advisorshares.com/etfs/yolo. The holdings details are updated each market day.
Cannabis Landscape
In Q2 of 2025 the global cannabis industry remained in a state of evolution, marked by volatility but underpinned by long-term growth potential. Legalization momentum across North America and Europe continued to drive global sales and employment, even as companies faced tightening margins and heightened competition.
Key industry dynamics during the quarter included:
- Market Expansion: Global cannabis sales were projected to reach $39–$63.75 billion in 2025, with the U.S. alone expected to contribute roughly $45 billion.1 Broader estimates factoring in ancillary and cultivation services suggest significantly higher total market value.
- Strong Investment Flows: Industry-wide investment was set to exceed $100 billion in 2025. The pharmaceutical sector emerged as a notable player, allocating an estimated $5 billion to cannabis-based drug research targeting conditions like PTSD and chronic pain.2
- Regional Drivers: The U.S., Canada, and key European countries led in both legalization efforts and revenue generation. Medical cannabis showed meaningful growth, now accounting for up to 30% of the global market, and spurred increased cross-border partnerships.3
While the cannabis sector continues to scale globally, short-term headwinds persist. Regulatory ambiguity, price compression, and competition from illicit markets remain key challenges. Despite these challenges, long-term optimism remains intact, supported by structural tailwinds, growing institutional interest, and sustained global demand across both medical and recreational markets.
1 Flowhub. 2025 Marijuana Industry Statistics & Data Insights, How the industry is performing and where it’s headed.
2 CannabisMD. Steven Flore, MD. 30+ Cannabis Industry Statistics: Growth & Trends in 2025.
3 Market Data Forecast. Medical Cannabis Market Size, Share & Global Forecast 2025–2033. July, 2025.
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Cheers,Past Commentary
Definition:
North American Marijuana Index (NAMI) tracks the performance of a basket of North American publicly listed companies with significant business activities in the marijuana industry.
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.
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 (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 to change.
The views in this commentary are those of the portfolio manager and may 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.