YOLO: 3rd Quarter 2021 Portfolio Manager 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.

Commentary

In the 3rd quarter of 2021, AdvisorShares Pure Cannabis ETF (NYSE: YOLO) declined -21.73% on its net asset value (NAV) and -22.07% on its market price. For the trailing one-year period through September 30, 2021, YOLO gained 54.16% (NAV) and 53.88% (market price), outperforming its sibling fund, MSOS, that gets more attention. While those may seem like good returns, we know that cannabis stocks hit recent price highs back in February 2021, but have been frustratingly negative since. However, I would invite investors to compare YOLO’s performance to other cannabis ETFs during that same period of time. Despite a rough period for cannabis over the last months, we’re very proud of our relative results.

New Positions:

During the quarter, YOLO added one new position: Agrify Corp (NASDAQ: AGFY) which was up very nicely in Q3 of this year. 

Contributors | Detractors:

During the quarter, losers definitely outnumbered winners. Among significant holdings, Innovative Industrial Properties (NYSE: IIPR) and Power REIT (NYSE American: PW) were up solidly. Cardiol Therapeutics (NASDAQ: CRDL) was also a significant gainer. While the rest of the portfolio’s holdings struggled in respect to performance, we feel that we properly managed risks with cash and position sizes.

Top Holdings

Ticker Security Description Portfolio Weight %
IIPR INNOVATIVE INDUSTRIAL PROPER 15.21%
VFF VILLAGE FARMS INTERNATIONAL 15.00%
GTBIF GREEN THUMB INDUSTRIES SWAP REC 7.91%
CURLF CURALEAF HOLDINGS INC SWAP REC 7.13%
TLRY TILRAY INC-CLASS 2 COMMON 5.65%
HRVSF HARVESTHEALTH SWAP R 5.62%
CRLBF CRESCO LABS INC SWAP REC 5.58%
TCNNF TRULIEVE CANNABIS SWAP REC 4.80%
GRWG GROWGENERATION CORP 4.58%
CCHWF COLUMBIA CARE INC SWAP REC 4.22%

As of 09.30.2021. 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.

Tune in to AdvisorShares’ Alpha Nooner Show streaming live each regular weekday starting at 11:50 am (East Coast time), where I am a guest almost every Tuesday. Find it on most major social media platforms or visit our the AdvisorShares “Events” webpage for more information.

 

Cheers,

Dan Ahrens
AdvisorShares
AdvisorShares Pure Cannabis ETF (YOLO) Portfolio Manager

 

Past Manager Commentary

* Recent Fund performance is attributable to unusually favorable conditions that are likely not sustainable, and such conditions might not continue to exist.


Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the 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.