This week a new U.S Cannabis ETF began trading in the market.
On September 2nd, AdvisorShares’ AdvisorShares Pure US Cannabis ETF (MSOS) became 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.
AdvisorShares has said that MSOS will seek long-term capital appreciation by investing entirely in legal, domestic cannabis equity securities.
MSOS is the second dedicated cannabis investment strategy alongside the AdvisorShares Pure Cannabis ETF (Ticker: YOLO), which launched on April 18, 2019. The portfolio manager is Dan Ahrens, AdvisorShares chief operating officer, who also serves as portfolio manager of YOLO and the AdvisorShares Vice ETF (Ticker: ACT).
“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.”
According to Ahrens, the 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. Ahrens believes security selection and risk management remains imperative in this emerging and volatile space.