YOLO: 3rd Quarter 2026 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

The AdvisorShares Pure Cannabis ETF (YOLO) returned +0.13% (NAV) / +1.04% (market) in Q3 2026, while the S&P 500 Index returned +2.30% over the same period.

YOLO’s global diversification proved its value this quarter. While MSOS, the fund’s largest position, declined as U.S. rescheduling stalled at quarter-end, takeover activity in Canada and steady growth in international medical markets supported the fund’s non-U.S. holdings.

Portfolio

YOLO continued the transition outlined last quarter, building direct positions in U.S. operators alongside its core allocation to MSOS. YOLO maintained its active management approach during the third quarter, with no positions added or exited.

Outside the United States, we added meaningfully to Aurora Cannabis Inc. (ACB), SNDL Inc. (SNDL), Tilray Brands Inc. (TLRY), and Canopy Growth Corp. (CGC), and took profits in Village Farms International (VFF) and High Tide Inc. (HITI) after strong runs in both names.

The portfolio continues to emphasize operators with strong balance sheets, diversified revenue, and meaningful exposure to maturing regulatory markets around the world.

Winners and Losers

The third quarter was a story of divergence between Canadian and international holdings, which broadly advanced, and U.S. operators, which pulled back.

Names that stood out on the upside this quarter included:

• Village Farms International (VFF): +45.50%
• Trulieve Cannabis Corp. (TRLV): +10.89%
• High Tide Inc. (HITI): +20.35%

On the other end of the spectrum, the following names weighed most heavily on returns:

• Glass House Brands Inc. (GLAS): -55.78%
• Curaleaf Holdings Inc. (CURLF): -4.57%
• AdvisorShares Pure US Cannabis ETF (MSOS): -10.68%

Ticker	Security Description	Portfolio Weight %
MSOS	ADVISORSHARES PURE US CANNABIS	21.74%
TRLV	TRULIEVE CANNABIS CORP	15.28%
CURLF	CURALEAF HOLDINGS INC	15.25%
VFF	VILLAGE FARMS INTERNATIONAL	10.88%
HITI	HIGH TIDE INC	7.23%
CRON	CRONOS GROUP INC	4.93%
ACB	AURORA CANNABIS INC	4.87%
GLAS	GLASS HOUSE BRANDS INC	3.67%
SNDL	SNDL INC	3.02%
CWEB	CHARLOTTES WEB HOLDINGS INC	2.79%

As of 09.30.2026. 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 third quarter of 2026 brought the clearest sign yet that the global cannabis industry is entering a consolidation phase. On August 11, Curaleaf announced its intention to acquire Aurora Cannabis, and on August 18 it formally launched a take-over bid valued at US$4.00 per Aurora share, a 45% premium to Aurora’s unaffected 30-day average price. Curaleaf framed the deal as combining Aurora’s EU-GMP cultivation and manufacturing capacity with its own international distribution platform, to accelerate patient access across Europe, Canada, Australia, and New Zealand.¹ Aurora’s board unanimously rejected the bid, and shortly after quarter-end, on October 5, Curaleaf raised its offer to US$5.00 per share.² YOLO holds both companies, and Aurora was among the fund’s stronger performers this quarter.

The bid underscores the strategic value of the Canada-to-Europe supply chain. Canada exported roughly 275 tonnes of medical cannabis in 2025, more than every other exporting country combined.³ Germany remains the largest destination: its Federal Institute for Drugs and Medical Devices (BfArM) revised first-quarter 2026 medical cannabis imports to a record 67.6 tonnes, with Canada supplying about 39% of the total.⁴

Germany also delivered the quarter’s most significant policy change. Under the Bundestag’s statutory health insurance (GKV) cost-stabilization law, which took effect July 30, dried cannabis flower was removed from public insurance reimbursement. Flower remains legally prescribable and available through pharmacies, but insured patients must now pay out of pocket or switch to extracts and finished cannabis medicines, which generally require a six-month trial first.⁵ Because most of Germany’s recent growth has come from self-paying patients rather than reimbursed prescriptions, we expect the direct impact on import volumes to be limited, though it may shift demand toward extracts. Separately, the proposed MedCanG amendment that would restrict telemedicine prescriptions and mail-order dispensing remained stalled in the Bundestag; no second or third reading had been scheduled as of mid-September.⁶

Elsewhere in Europe, the Czech Republic continued building out the framework that followed its January 2026 legalization of personal cultivation and possession, and Switzerland’s city-level adult-use pilot programs continued to operate. In Australia, the therapeutic market remains one of the largest destinations for Canadian flower, though heavy import volumes have pushed prices sharply lower.

In the United States, which YOLO accesses through MSOS and its direct positions in U.S. operators, the DEA’s hearing on broader rescheduling concluded in mid-July. At quarter-end, the administrative law judge stayed the proceeding at the request of rescheduling opponents, delaying his recommendation and weighing on U.S. cannabis stocks in the final days of September.⁷

Outlook

Looking ahead, YOLO’s global reach remains its key advantage, providing exposure to maturing markets in Canada alongside its U.S. holdings. The third quarter showed the value of that diversification, as strength in Canadian and international names offset weakness in U.S. operators.

We will be watching three developments closely. First is the outcome of Curaleaf’s bid for Aurora, which could create the industry’s first truly global operator and set a valuation benchmark for other EU-GMP-certified producers. Second is how Germany’s reimbursement change and the pending MedCanG amendment shape demand in Europe’s largest medical market. Third is the resumption of the U.S. rescheduling process. The portfolio remains focused on operators with strong balance sheets and diversified revenue streams, and we will continue to actively manage the fund as regulatory and market conditions evolve across its global opportunity set.

Sources:
1. Curaleaf Holdings, Inc. Form 8-K: Curaleaf Launches Take-Over Bid to Acquire Aurora Cannabis. August 18, 2026. SEC EDGAR.
2. MJBizDaily. Curaleaf increases price for Aurora Cannabis hostile takeover bid. October 5, 2026.
3. Prohibition Partners. Five Takeaways from the Global Medical Cannabis Market Review 2026. March 26, 2026.
4. Cannabis Now. The International Medical Cannabis Industry Is Booming. September 2026.
5. Cansativa. Germany’s Statutory Health Insurance Reform: Cost-Cutting with Consequences for Medical Cannabis. July 16, 2026.
6. Medicanova. Online cannabis prescriptions banned? Status 2026. September 14, 2026.
7. Vicente LLP. DEA Judge Pauses Marijuana Rescheduling Hearing Over New GAO Report. September 30, 2026.

——————————————————————-

Tune in to AdvisorShares’ Alpha Nooner Show streaming live each regular weekday starting at 12:00 pm (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.