MSOS Profile
AdvisorShares Pure US Cannabis ETF is an actively managed exchange-traded fund designed to provide investors with targeted exposure to the U.S. cannabis industry. The fund's strategy involves investing at least 80% of its net assets, plus any borrowings for investment purposes, in securities of companies that generate at least 50% of their net revenue from marijuana and hemp-related activities within the United States. Additionally, it may invest in derivatives with similar economic characteristics to these securities to achieve its investment objectives.
The fund focuses its investments primarily on the burgeoning cannabis sector, reflecting its commitment to capturing growth opportunities within this rapidly evolving industry. It also places a significant emphasis on the pharmaceuticals, biotechnology, and life sciences sub-sectors within healthcare, dedicating at least 25% of its assets to these areas. This focus aims to leverage the intersection of cannabis and medical sciences, potentially capitalizing on advancements in therapeutic applications and regulatory changes.
As a non-diversified fund, AdvisorShares Pure US Cannabis ETF may concentrate its investments in a smaller number of securities or sectors, which can increase both the potential for higher returns and the associated risks. The active management approach allows the fund to dynamically adjust its holdings based on market conditions and emerging opportunities within the cannabis sector, offering a tailored strategy to navigate the complexities of this market.
The fund’s investment strategy reflects its goal of providing focused exposure to the U.S. cannabis industry while balancing its allocation within the broader health care sector. By concentrating on companies with substantial revenue from cannabis and related sectors, it seeks to capture growth from both established and emerging players in the industry. This strategic approach aligns with the fund’s objective of delivering specialized investment opportunities in a sector characterized by significant growth potential and evolving market dynamics.
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