AdvisorShares Expands Cannabis ETF Offerings, Launches MSOS 2x Daily ETF (Ticker: MSOX)
Designed for sophisticated investors, MSOX seeks investment returns two-times the daily performance of the AdvisorShares Pure US Cannabis ETF (Ticker: MSOS)
BETHESDA, Md., Aug. 24, 2022 /PRNewswire/ -- AdvisorShares, a leading sponsor of actively managed exchange-traded funds (ETFs) and the largest cannabis fund manager, today announced that the AdvisorShares MSOS 2x Daily ETF (Ticker: MSOX) will begin trading today.
MSOX seeks daily investment results that, before fees and expenses, correspond to two times (2x) the daily total return of the AdvisorShares Pure US Cannabis ETF (Ticker: MSOS). MSOX does not seek to achieve its stated investment objective over a period of time greater than a single day. MSOX is designed for sophisticated investors looking to gain magnified exposure to the U.S. cannabis sector.
The magnified exposure to cannabis which MSOX provides is designed for short-term trading. Its increased buying power offers 2x the cannabis exposure in a single trade, allowing MSOX shareholders to overweight cannabis holdings for less cash. AdvisorShares managing director Dan Ahrens serves as portfolio manager of both MSOX and MSOS. Ahrens is one of the most accomplished and experienced portfolio managers who specializes in cannabis and vice-related investment strategies.
When it launched in September 2020, MSOS became the first U.S.-listed active ETF to deliver exposure dedicated solely to American cannabis companies including multi-state operators (MSOs), and then quickly ascended to become the largest publicly traded cannabis fund in the world. MSOs are U.S. companies directly involved in the legal production and distribution of cannabis in states where approved.
"We are pleased to add this new dimension to our active cannabis ETF offerings," said Ahrens. "While all our cannabis ETFs provide dedicated exposure to the emerging growth opportunity in cannabis, they are all different from one another with their investment strategies and underlying holdings. We believe MSOX is a unique investment tool that is designed specifically for experienced investors and professional traders which can potentially provide amplified returns in all market environments."
In addition to MSOS and MSOX, AdvisorShares also offers the AdvisorShares Pure Cannabis ETF (Ticker: YOLO), a global cannabis strategy managed by Mr. Ahrens, as well as the AdvisorShares Poseidon Dynamic Cannabis ETF (Ticker: PSDN), a global cannabis strategy sub-advised by Poseidon Investment Management. Mr. Ahrens also serves as portfolio manager of the following active ETFs: AdvisorShares Vice ETF (Ticker: VICE); AdvisorShares Psychedelics ETF (Ticker: PSIL); AdvisorShares Hotel ETF (Ticker: BEDZ); AdvisorShares Restaurant ETF (Ticker: EATZ); and AdvisorShares Drone Technology ETF (Ticker: UAV).
For more information on MSOX, please visit: advisorshares.com/etfs/msox
AdvisorShares remains committed to providing ongoing investment education for its ETF shareholders, prospective investors and the investment community at large. AdvisorShares regularly hosts live webinars featuring portfolio managers and leading industry experts. You may learn more and register at the AdvisorShares Event Center for upcoming educational sessions on different investment strategies.
AdvisorShares is a leading provider of actively managed ETFs. For financial professionals and investors requesting more information, call 1-877-843-3831 or visit advisorshares.com. Follow @AdvisorShares on Twitter and Facebook for more insights.
Before investing you should carefully consider the Fund's investment objectives, risks, charges and expenses. This and other information are in the prospectus, a copy of which may be obtained by visiting the Fund's website at www.advisorshares.com. Please read the prospectus and summary prospectus carefully before you invest.
Foreside Fund Services, LLC, distributor.
The Fund is not suitable for all investors. The Fund is designed to be utilized only by knowledgeable investors who understand the potential consequences of seeking daily 2x investment results, understand the risks associated with the use of leverage, and are willing to monitor their portfolios frequently. The Fund is not intended to be used by, and is not appropriate for, investors who do not intend to actively monitor and manage their portfolios. An investor could lose the full principal value of their investment within a single day.
The Fund is an actively managed ETF that seeks to provide investment results that are two times (2x) the daily total return, before fees and expenses, of the US Cannabis ETF, an affiliated ETF, by entering into one or more swaps agreements on the US Cannabis ETF. The Fund does not seek to achieve its stated investment objective for a period of time different than a single day.
The Fund will enter into one or more swap agreements intended to produce economically-leveraged investment results relative to the returns of the US Cannabis ETF. The Fund may use a combination of swaps on the US Cannabis ETF and swaps on various investment vehicles that are designed to track the performance of the US Cannabis ETF. The Fund expects that cash balances in connection with the use of such financial instruments ("Collateral") will typically be held in money market instruments or other cash equivalents.
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 not net asset value (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.
CONTACT: Ryan Graham, 862-777-4274, rgraham@jconnelly.com
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