YOLO: 3rd Quarter 2023 Portfolio Review
Performance
Based on net asset value (NAV), YOLO was up 33.28% for the 3rd quarter of 2023.
Portfolio
A new position in Cronos Group (CRON) was added to the portfolio with 140,00 shares. WM Technology Inc. (MAPS) and CBDMD Inc. (YCBD) were removed from the portfolio, as we continued to shift and adjust weightings to manage the Fund.
Winners and Losers
For the quarter, Village Farms International (VFF) was up 25.14%, High Tide Inc. (HITI) was up 41.22%, and Tilray Brands Inc. (TLRY) was up 41.42%. The losers were Clever Leaves Holdings Inc. (CLVR) down 45.75%, Power REIT (PW) down 27.95%, and IM Cannabis Corp. (IMCC) down 22.20% for the quarter.
Top Holdings
| Ticker | Security Description | Portfolio Weight % |
| MSOS | ADVISORSHARES PURE US CANN | 60.85% |
| HITI | HIGH TIDE INC | 6.45% |
| VFF | VILLAGE FARMS INTERNATIONAL | 6.21% |
| TLRY | TILRAY BRANDS INC | 3.54% |
| SNDL | SNDL INC | 3.06% |
| REFI | CHICAGO ATLANTIC REAL ESTATE | 2.65% |
| JAZZ | JAZZ PHARMACEUTICALS PLC | 2.61% |
| CRDL | CARDIOL THERAPEUTICS INC-A | 2.48% |
| GRWG | GROWGENERATION CORP | 1.96% |
| CWEB | CHARLOTTES WEB HOLDINGS INC | 1.73% |
As of 09.30.2023. 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.
Market Update
International cannabis companies have experienced an increase in their activities, as the U.S. Senate Banking Committee gave approval to a bipartisan marijuana banking bill – the SAFER Banking Act.
While international investment opportunities are limited, but growing, some of the highlights for the quarter include:
- In August, Germany’s cabinet approved a controversial bill to legalize the recreational use and cultivation of marijuana. This move represents one of the most progressive cannabis laws in Europe and may potentially contribute to a global trend in a similar direction.
- 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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Cheers,
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.