AdvisorShares has launched the AdvisorShares Pure US Cannabis ETF (Ticker: MSOS), which will begin trading this Wednesday (September 2nd). MSOS becomes the first U.S.-listed active ETF to deliver exposure dedicated solely to American cannabis companies, including multi-state operators (MSOs). MSOs are U.S. companies directly involved in the legal production and distribution of cannabis in states where approved.
The company said that MSOS will seek 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.
MSOS becomes AdvisorShare’s second dedicated cannabis investment strategy alongside the AdvisorShares Pure Cannabis ETF (Ticker: YOLO). When YOLO launched on April 18, 2019, it became the first U.S.-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.
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 U.S. cannabis investment exposure,” said Ahrens. “We believe that the U.S. 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.”
Ahrens has long held the view that the U.S. cannabis market is largely untapped and possesses the most significant upside potential in the global cannabis marketplace. Early in the COVID-19 crisis, cannabis dispensaries were deemed essential business in most U.S. states and never closed. Both CBD and marijuana have sold at record levels throughout Canada and legal states in the U.S. this year. Ahrens steadfastly believes security selection and risk management remains imperative in this emerging and volatile space.