ETF Education Report: AdvisorShares Pure US Cannabis ETF (MSOS)

What this ETF is trying to do

The AdvisorShares Pure US Cannabis ETF (ticker: MSOS) is an exchange-traded fund that focuses on the cannabis industry in the United States. Instead of buying just one company, this ETF holds a variety of different assets related to cannabis businesses.

What the numbers show

The current price of MSOS is $4.34. Looking at how the share price has moved over time, we can see some significant changes:

• Year-to-Date (YTD) Price Return: The share price has dropped by approximately 8.05% since the start of the year.

• One-Year Price Return: Over the last year, the share price has declined by approximately 19.63%.

• Three-Year Price Return: Over the last three years, the share price has declined by approximately 38.79%.

• Five-Year Total Return: Over a five-year period, the total return was approximately -85.65%.

To understand the one-year change, we can look at an estimated price from roughly one year ago, which was about $5.40. Since then, the price has moved down to its current level of $4.34.

Income and distribution explanation

Some investors look for ETFs that pay them regular cash, known as distributions. For MSOS, the distribution yield is 0%. This means no recent cash distributions have been detected. Because there are no distributions, the total return and the price return are the same in this case.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases. StockValueFinder uses an "erosion-risk score" to measure this risk. MSOS has an erosion score of 55, which is labeled as "Moderate price erosion." While the share price has declined, it is important to remember that a falling market price is a "share-price decline," which is different from a confirmed collapse of the fund's Net Asset Value (NAV).

Top Holdings

The following are the top holdings in this ETF. Please note that this is a partial list and holdings can change over time:

• Curaleaf Holdings Inc (CURLF): 12.70%

• TRLV: 11.69%

• Cash: 4.90%

• BlackRock Treasury Trust Instl 62: 4.76%

• Trulieve Cannabis Swap: 4.37%

• Terrascend Corp: 2.67%

Pros

• Provides exposure to many different companies within the U.S. cannabis sector through a single investment.

Cons

• The ETF has experienced significant share-price declines over the one-year, three-year, and five-year periods.

• It does not currently provide cash distributions to investors.

Beginner takeaway

MSOS is an ETF that tracks the cannabis industry. Investors should be aware that this fund has seen a notable decline in its share price over several years and does not currently pay out regular income.