24 August 2022
AdvisorShares, the largest cannabis fund manager, today launched the AdvisorShares MSOS 2x Daily ETF (MSOX).
MSOX seeks daily investment results that, before fees and expenses, correspond to two times (2x) the total daily return of the AdvisorShares Pure U.S. Cannabis ETF (MSOS).
MSOX does not seek to achieve its stated investment objective over a period of time greater than a single day. The fund is designed for sophisticated investors looking to gain magnified exposure to the U.S. cannabis sector, according to a statement from the firm.
The magnified exposure to cannabis that MSOX provides is designed for short-term trading. According to the firm, 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, who specializes in cannabis and vice-related investment strategies, serves as portfolio manager of both MSOX and MSOS.
MSOS, which launched in September 2020, 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, according to AdvisorShares.
“We are pleased to add this new dimension to our active cannabis ETF offerings,” Ahrens said in a statement. “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 designed specifically for experienced investors and professional traders, which can potentially provide amplified returns in all market environments.”