YOLO: 1st Quarter 2024 Portfolio Review

Performance data quoted represents past performance and is no guarantee of future results. 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. For the fund’s most recent standardized and month-end performance, please click www.advisorshares.com/etfs/yolo.

Performance

Based on net asset value (NAV), YOLO was up +33.88% for the 1^st quarter of 2024.

 

In Q1, the portfolio did not see any new additions, but several tactical adjustments were made. This included adding +310,000 additional shares of Cronos Group Inc. (Cron) and +530,000 additional shares of Organigram Holdings Inc. (OGI). However, positions were removed from the portfolio during this period, including Innovative Industrial Properties (IIPR) and Intercure LTD. (INCR).

Winners and Losers

For the 1^st quarter of 2024, YOLO’s top holding and underlying Fund, the AdvisorShares Pure US Cannabis ETF (MSOS) had substantial growth of +42.74%. The Fund’s top holding outside of the Fund MSOS, Village Farms International Inc. (VFF) also performed well with a large gain of +62.94%. Top 5 holding Cardiol Therapeutics Inc. (CRDL) saw significant growth with an increase of +115.25%.

There were declines in some holdings. Ispire Technology Inc. (ISPR) lost -49.46%. Small position RIV Capital Inc. (RIV) declined -16.48% and Jazz Pharmaceuticals PLC. (JAZZ) saw a decrease of -2.10%.

Ticker	Security Description	Portfolio Weight %
MSOS	ADVISORSHARES PURE US CANN	44.86%
VFF	VILLAGE FARMS INTERNATIONAL	8.17%
HITI	HIGH TIDE INC	7.12%
CRDL	CARDIOL THERAPEUTICS INC-A	4.52%
SNDL	SNDL INC	4.26%
CRON	CRONOS GROUP INC	4.02%
OGI	ORGANIGRAM HOLDINGS INC	3.69%
TLRY	TILRAY BRANDS INC	3.20%
REFI	CHICAGO ATLANTIC REAL ESTATE	2.70%
AFCG	AFC GAMMA INC	2.58%

As of 3.312024. 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.

The worldwide cannabis market is undergoing a significant transformation as an increasing number of countries acknowledge its potential benefits, both for medical and recreational purposes. By 2024, the market is forecasted to reach nearly $61 billion in revenue, with expectations to grow to $103 billion by 2028. In Europe, where approximately 448.4 million people reside, the potential cannabis market surpasses that of the United States and Canada combined. Presently, medicinal cannabis is legally accessible in 23 European countries, with five nations having decriminalized it. Countries such as Germany, the Netherlands, and Italy have legalized medicinal cannabis, while others like Portugal and Luxembourg are either considering or in the process of implementing full recreational legalization.

In Germany, the lower house of parliament recently voted to legalize cannabis for limited recreational use after a contentious national debate about the advantages and disadvantages of easing access to cannabis. Effective April 1, 2024, adults are now allowed to grow up to three cannabis plants for personal consumption. This development is expected to establish the largest legal cannabis market in Europe, making Germany the first EU nation to establish an adult-use recreational cannabis market.

In contrast, Thailand is adopting a different strategy by introducing legislation to prohibit recreational cannabis use following its decriminalization. This change comes in response to concerns regarding the unregulated growth of cannabis shops post-decriminalization. While medical cannabis will remain available, recreational use will be strictly forbidden.

These transformations reflect a global pattern where certain countries are fully embracing recreational cannabis, while others are cautiously moving towards decriminalization or permitting medicinal use. Reasons for these shifts include the desire to eliminate illicit market activities, generate tax revenues, enhance public health, and address the social implications of cannabis prohibition. As perceptions towards cannabis continue to evolve, more nations may join the trend towards a more lenient approach to cannabis regulation.

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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