ETF Education Report: ADVISORSHARES PURE CANNABIS ETF (YOLO)

What this ETF is trying to do

The ADVISORSHARES PURE CANNABIS ETF (ticker: YOLO) is an exchange-traded fund designed to provide exposure to the cannabis industry. It invests in various companies related to this sector.

What the numbers show

The current price of YOLO is $2.73. Looking at historical performance, the fund has experienced a share-price decline over several timeframes:

• Year-to-Date (YTD): The price return is approximately -17.26%.

• One-Year: The price return is approximately -28.71%.

• Three-Year: The price return is approximately -12.21%.

• Five-Year: The total return is approximately -81.55%.

An estimated price from roughly one year ago was $3.83. Because the fund has not had any stock splits, these figures represent the direct movement of the share price.

Income and distribution explanation

This ETF does not currently provide regular income to investors. The data shows a distribution yield of 0%, and no distributions have been detected over the last 12 months. Because there are no payouts, the total return and the price return are the same.

NAV erosion explanation

The fund has a severe erosion-risk flag. This means that StockValueFinder's screening rules detected significant price deterioration. The fund has an erosion score of 30, which is labeled as "Significant price erosion."

It is important to understand the difference between price erosion and NAV erosion. Price erosion refers to the falling market price of the ETF shares. NAV (Net Asset Value) erosion refers to a decline in the actual value of the underlying assets. The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.

Top Holdings

The fund holds 20 different assets. The top holdings include:

• ADVISORSHARES PURE US CANNABIS ETF (22.39%)

• TRULIEVE CANNABIS CORP ORDINARY SHARES (15.97%)

• CURALEAF HOLDINGS INC (13.83%)

• VILLAGE FARMS INTERNATIONAL INC (10.53%)

• HIGH TIDE INC (6.60%)

• CRONOS GROUP INC (4.73%)

• GLASS HOUSE BRANDS INC ORDINARY SHARES (4.24%)

• AURORA CANNABIS INC (3.96%)

• ORGANIGRAM GLOBAL INC (3.14%)

• SNDL INC ORDINARY SHARES (3.02%)

Please note that holdings can change over time.

Pros

• Provides concentrated exposure to the cannabis sector through a single ticker.

Cons

• Significant historical share-price decline over the last one, three, and five years.

• High erosion-risk score indicating significant price deterioration.

• No recent history of cash distributions or income.

Beginner takeaway

YOLO is an ETF focused on the cannabis industry that has faced significant share-price declines over the long term. It does not currently pay out dividends or distributions, and it carries a severe erosion-risk flag due to its declining price trend.