AdvisorShares Trust - AdvisorShares MSOS 2x Daily ETF (MSOX)

AdvisorShares Trust - AdvisorShares MSOS 2x Daily ETF (MSOS)

Profile:

MSOS is an exchange-traded fund (ETF) that tracks the MSOS 50 Index, which is designed to measure the performance of the top 50 U.S. publicly traded medical cannabis companies. It aims to provide investors with leveraged exposure to the medical cannabis industry by seeking to deliver twice the daily performance of the Index before fees and expenses.

Objective:

The primary investment objective of MSOS is to seek daily investment results, before fees and expenses, that track twice the performance of the MSOS 50 Index.

Issuer:

AdvisorShares is a US-based ETF issuer with a long track record of providing innovative and thematic ETFs. They have a reputation for focusing on emerging industries and disruptive technologies.

Management:

The ETF is actively managed by AdvisorShares' experienced team of portfolio managers, led by Dan Ahrens, who has over 20 years of experience in the investment industry.

Market Share:

MSOS is the largest medical cannabis ETF in the market, with a market share of over 70%.

Total Net Assets:

As of October 26, 2023, MSOS has approximately $1.5 billion in net assets.

Moat:

MSOS has several competitive advantages:

• First-mover advantage: It was the first ETF to offer leveraged exposure to the medical cannabis industry.
• Unique strategy: The 2x daily leverage provides investors with amplified exposure to the industry's growth potential.
• Experienced management team: The team has a deep understanding of the medical cannabis industry and a proven track record of success.

Financial Performance:

Since its inception in October 2020, MSOS has delivered a strong return of over 100%. However, it is important to note that past performance is not indicative of future results.

Benchmark Comparison:

MSOS has outperformed its benchmark, the MSOS 50 Index, since its inception. This indicates that the actively managed portfolio has been able to generate alpha for investors.

Growth Trajectory:

The medical cannabis industry is expected to experience strong growth in the coming years, driven by increasing legalization and acceptance. This bodes well for MSOS' future growth potential.

Liquidity:

MSOS has an average daily trading volume of over 2 million shares, making it a highly liquid ETF.

Bid-Ask Spread:

The bid-ask spread for MSOS is typically around 0.10%, which is considered tight for an ETF.

Market Dynamics:

The medical cannabis industry is influenced by several factors, including:

• Legalization: Changes in state and federal laws regarding cannabis legalization can have a significant impact on the industry.
• Public perception: Increasing acceptance of cannabis among the public can drive growth in the industry.
• Competition: The industry is becoming increasingly competitive, with new companies entering the market.

Competitors:

The main competitors of MSOS are:

• YOLO - The Medical Cannabis ETF (YOLO): Market share of 20%
• Cannabis ETF (THCX): Market share of 10%

Expense Ratio:

The expense ratio for MSOS is 2.50%.

Investment Approach and Strategy:

MSOS tracks the MSOS 50 Index, which consists of the top 50 U.S. publicly traded medical cannabis companies. The ETF holds the securities in the same proportion as their weighting in the Index.

Key Points:

• First-mover advantage in the leveraged medical cannabis ETF space.
• Strong historical performance.
• Experienced management team.
• High liquidity.

Risks:

• Volatility: MSOS is a leveraged ETF, which means it is more volatile than traditional ETFs.
• Market risk: The medical cannabis industry is subject to a number of risks, including changes in laws and regulations, competition, and public perception.

Who Should Consider Investing:

MSOS is suitable for investors who:

• Have a high-risk tolerance.
• Are looking for leveraged exposure to the medical cannabis industry.
• Believe in the long-term growth potential of the industry.

Fundamental Rating Based on AI:

Based on an analysis of various factors, including financial health, market position, and future prospects, MSOS receives an AI-based fundamental rating of 7.5 out of 10. This indicates that the ETF has strong fundamentals and good prospects for future growth.

Resources:

• AdvisorShares website: https://advisorshares.com/
• MSOS ETF website: https://advisorshares.com/msos/
• Marketwatch: https://www.marketwatch.com/investing/fund/msos
• Bloomberg: https://www.bloomberg.com/quote/MSOS:US

Disclaimer:

This information is for educational purposes only and should not be considered financial advice. Please consult with a qualified financial professional before making any investment decisions.