AdvisorShares, a sponsor of actively managed exchange-traded funds (ETFs), has launched the AdvisorShares Pure US Cannabis ETF (MSOS). MSOS becomes the first US-listed active ETF to deliver exposure dedicated solely to American cannabis companies, including multi-state operators (MSOs). MSOs are US companies directly involved in the legal production and distribution of cannabis in states where approved.
MSOS becomes AdvisorShares second dedicated cannabis investment strategy alongside the AdvisorShares Pure Cannabis ETF (YOLO). When YOLO launched on 18 April, 2019, it became the first US-listed active ETF dedicated to cannabis exposure – investing in both domestic and foreign cannabis equity securities. MSOS joins YOLO as the only U.S.-listed cannabis ETFs that maintain an established, Federal bank as fund custodian.
MSOS seeks long-term capital appreciation by investing entirely in legal, domestic cannabis equity securities. MSOS’ domestic equity strategy allows this active ETF to allocate its underlying portfolio among multi-state operator (MSO) companies as well as other U.S.-based cannabis-focused areas such a REITs, cannabidiol (CBD), pharmaceutical and hydroponics.
The portfolio manager of MSOS is Dan Ahrens, AdvisorShares chief operating officer, who also serves as portfolio manager of YOLO and the AdvisorShares Vice ETF (Ticker: ACT). Ahrens carries a well-established expertise of investing in cannabis and other highly regulated areas of the market.
“We are pleased to offer MSOS in addition to YOLO which we believe responds further to meeting investors’ demands for more US cannabis investment exposure,” says Ahrens. “We believe that the US clearly represents the most attractive opportunity for cannabis investment and remains an exponentially larger market than the Canadian cannabis market. We feel strongly that our active portfolio management serves as the most advantageous way to invest in the emerging cannabis space.”