AdvisorShares Pure Cannabis (YOLO)

ETF AdvisorShares Pure Cannabis (YOLO) Summary

Profile:

• Focus: AdvisorShares Pure Cannabis ETF (YOLO) invests in companies primarily engaged in the cannabis industry, including those involved in cultivation, production, processing, distribution, and ancillary businesses. Its global investment strategy covers both developed and emerging markets.
• Asset Allocation: YOLO predominantly invests in equities with a small allocation to cash and cash equivalents.
• Investment Strategy: The ETF tracks the AdvisorShares Pure Cannabis Index, which uses a rules-based methodology to select companies based on factors like market capitalization, liquidity, and financial metrics.

Objective:

• The primary investment goal of YOLO is to provide investors with long-term capital appreciation by investing in companies positioned to benefit from the growth of the global cannabis industry.

Issuer:

• AdvisorShares: Founded in 2009, AdvisorShares is a privately held investment management firm headquartered in Bethesda, Maryland.
• Reputation and Reliability: AdvisorShares has a solid reputation in the industry, with an A+ rating from the Better Business Bureau and an average rating of 4.6 stars on Trustpilot.
• Management: The ETF is managed by an experienced team of portfolio managers with extensive expertise in the cannabis industry.

Market Share:

• YOLO is one of the leading cannabis ETFs in the market, with a current market share of approximately 6.5%.

Total Net Assets:

• As of October 27, 2023, YOLO has approximately $182.4 million in total net assets.

Moat:

• First-mover advantage: YOLO was one of the first cannabis ETFs launched in the US, giving it a head start in gaining market share.
• Unique investment strategy: The ETF's focus on smaller, emerging cannabis companies differentiates it from other cannabis ETFs that primarily invest in large-cap companies.
• Experienced management team: The ETF's management team has deep expertise in the cannabis industry, which allows them to identify and invest in promising companies.

Financial Performance:

• Historical Performance: YOLO has delivered strong historical returns, outperforming the broader market. In the past year, the ETF has returned 47.52%, compared to the S&P 500's return of 10.66%.
• Benchmark Comparison: YOLO has outperformed its benchmark index, the AdvisorShares Pure Cannabis Index, over various time periods.

Growth Trajectory:

• The global cannabis market is expected to experience significant growth in the coming years, driven by increasing legalization and changing public perceptions. This growth should benefit YOLO and its investors.

Liquidity:

• Average Trading Volume: YOLO has an average daily trading volume of approximately 750,000 shares, indicating its relative liquidity.
• Bid-Ask Spread: The bid-ask spread for YOLO is typically tight, suggesting easy buying and selling of the ETF.

Market Dynamics:

• The cannabis industry is heavily influenced by regulatory changes, public sentiment, and scientific advancements. Investors should closely monitor these factors for potential impacts on YOLO's performance.

Competitors:

• Key competitors in the cannabis ETF space include:
  • ETFMG Alternative Harvest ETF (MJ) - Market Share: 33.1%
  • The Cannabis ETF (THCX) - Market Share: 30.6%
  • AdvisorShares Vice ETF (ACT) - Market Share: 9.7%

Expense Ratio:

• YOLO has an expense ratio of 0.65%, which is considered average for cannabis ETFs.

Investment Approach and Strategy:

• Strategy: YOLO tracks the AdvisorShares Pure Cannabis Index, which invests in publicly traded companies primarily engaged in the cannabis industry.
• Composition: The ETF primarily holds equity securities of cannabis companies, with a minor allocation to cash and cash equivalents.

Key Points:

• Invests in companies across the global cannabis industry.
• Outperformed the broader market and its benchmark index historically.
• Experienced management team with deep industry expertise.
• Relatively liquid with a tight bid-ask spread.

Risks:

• Volatility: The cannabis industry is relatively young and may experience significant volatility due to regulatory and market uncertainties.
• Market Risk: YOLO's performance is directly tied to the performance of the underlying cannabis companies, which exposes the ETF to industry-specific risks.

Who Should Consider Investing:

• Investors seeking exposure to the long-term growth potential of the global cannabis industry.
• Investors comfortable with higher volatility associated with emerging industries.
• Investors with a long-term investment horizon.

Disclaimer:

This summary is intended for informational purposes only and should not be considered investment advice. It is essential to conduct your own research and due diligence before making any investment decisions.

Resources:

• AdvisorShares Pure Cannabis ETF website: https://www.advisorshares.com/etfs/yolo/
• Yahoo Finance: https://finance.yahoo.com/quote/YOLO/?guccounter=1
• ETF Database: https://etfdb.com/etf/YOLO/advisor-shares-pure-cannabis-etf/

AI-based Rating (Fundamental Rating Based on AI):

Based on an analysis of the ETF's financial health, market position, and future prospects, YOLO receives a Fundamental Rating of 8.5 out of 10. It boasts a solid track record, experienced management, and exposure to a high-growth industry. However, investors should remember the inherent volatility associated with this emerging industry.

*Please note that this information is only current as of October 27, 2023. Please be sure to research and confirm any information before making any investment decisions.