Share-split context: A reverse split was recorded on Nov 26, 2024 with coefficient 0.05. A reverse split combines multiple old shares into fewer new shares and mechanically raises the quoted price per share. That mechanical increase does not restore lost investment value. The returns in this report are already split-adjusted, while reverse-split history remains a separate structural warning.

ETF Education Report: MSOX

What this ETF is trying to do

The AdvisorShares MSOS Daily Leveraged ETF (MSOX) is a type of fund known as a leveraged ETF. This means it uses financial tools to try and multiply the daily movements of its target index. Because it is leveraged, its price can move much faster than the regular market.

What the numbers show

The data shows significant declines in the share price over different time periods. Because this ETF has a history of splits, we look at "split-adjusted" returns to understand the true performance.

• Year-to-Date (YTD) Price Return: Approximately -47.54%

• One-Year Price Return: Approximately -75.95%

• Three-Year Price Return: Approximately -97.39%

In this case, the total return figures provided match the price return figures exactly. The current price of the ETF is $2.35.

It is important to note that this ETF has a history of a reverse split. In a reverse split, multiple old shares are combined into fewer new shares. This causes the price per share to rise mechanically, but it does not increase the actual value of your investment.

Income and distribution explanation

Some investors look for ETFs that pay them cash regularly, which is called a "distribution yield." For MSOX, the distribution yield is 0%. No distributions have been detected over the last 12 months.

NAV erosion explanation

This ETF has a severe erosion-risk flag. This means that StockValueFinder's rules detected significant price deterioration. The fund has an erosion score of 10, which is labeled as "Severe price erosion."

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). While a falling market price is a "share-price decline," a severe erosion score is an indicator used to measure the risk that the fund's underlying value is being worn down.

Pros

• The ETF provides leveraged exposure, which is designed to amplify daily market movements.

Cons

• The ETF has experienced very large share-price declines over the one-year and three-year periods.

• There is a severe erosion-risk flag present.

• The fund does not currently provide cash distributions or income.

Beginner takeaway

MSOX is a leveraged ETF that has seen its share price drop significantly over the last three years. It also carries a severe erosion-risk flag and has undergone a reverse split in the past. Investors should understand that leveraged funds can experience very fast price changes and may face significant risks regarding the stability of their value.