AdvisorShares MSOS 2x Daily ETF (MSOX): +31% in 30 Days, -4% Over the Quarter

Key Takeaways

• MSOX advanced roughly 31% over the trailing 30 days, powered by a rebound in U.S. cannabis equities amplified by its 2x daily leverage.
• Over the trailing three months, the ETF finished roughly 4% lower after a sharp June rally, a July pullback, and an August recovery.
• Primary catalysts include the federal rescheduling of medical cannabis to Schedule III, DEA hearings on broader rescheduling, and the NYSE uplisting of TRLV.
• The portfolio's most influential exposures are the multi-state operators (MSOs) anchoring the underlying fund — Curaleaf Holdings, Trulieve Cannabis, and Green Thumb Industries, alongside Cresco Labs and Verano.
• As a daily-reset leveraged product, MSOX's 2x objective applies to single-day returns, and compounding can cause returns to drift from the underlying index over longer periods.

MSOX ETF Overview and Portfolio Exposure

MSOX is an actively managed, non-diversified exchange-traded fund that seeks daily investment results corresponding to two times (2x) the daily total return of the AdvisorShares Pure US Cannabis ETF (MSOS), before fees and expenses. Launched in August 2022, the fund achieves its leveraged exposure primarily through total return swaps on MSOS, supported by cash, Treasury, and other derivative collateral. Its net expense ratio is roughly 0.97%, and the fund manages approximately $50 million in assets. I also checked this using Tickeron’s AI Screener to see how the ETF compares to others in the sector.

Because it provides leveraged exposure to a single underlying fund rather than holding a broad basket directly, MSOX's behavior is almost entirely a function of U.S. cannabis equity performance and the daily reset of its leverage. The underlying MSOS portfolio is concentrated in mid- and small-cap U.S. cannabis operators, with Curaleaf Holdings, Trulieve Cannabis, and Green Thumb Industries among its largest positions, alongside swaps and collateral. This structure means MSOX can swing far more than a conventional sector ETF in both directions, which is precisely what shaped its recent performance.

MSOX Price Performance: Last 30 Days vs. the Quarter

Over the trailing 30 days, MSOX climbed roughly 31%, rising from about $2.25 to approximately $2.95 per share. The move was amplified by the fund's 2x daily leverage, which magnified a solid recovery in the underlying cannabis complex.

The broader three-month picture tells a more volatile story. The fund peaked near $4.46 in early June, then sold off sharply into late July, touching roughly $2.06, before rebounding through August. Netting out these swings, MSOX ended the trailing quarter approximately 4% lower than where it began — a reminder that the fund's daily-reset structure can produce large intra-period swings even when the net change looks modest.

What Drove MSOX in the Last 30 Days

The 30-day advance reflects a confluence of regulatory and corporate catalysts across U.S. cannabis. In April 2026, federal regulators moved state-licensed medical cannabis to Schedule III of the Controlled Substances Act, providing immediate relief from Section 280E tax restrictions that had kept effective tax rates on many operators above 70%. A subsequent expedited DEA administrative hearing on reclassifying all cannabis concluded in July, with a final decision expected by year-end, keeping the reform narrative front and center.

Corporate developments reinforced the move. Trulieve Cannabis completed its listing on the New York Stock Exchange under TRLV, becoming the first major U.S. cannabis operator to uplist and broadening its investor base. Second-quarter earnings from Curaleaf Holdings and Cresco Labs highlighted sequential revenue growth and margin recovery, while Green Thumb Industries continued to generate free cash flow and repurchase shares. Curaleaf also launched a takeover bid for ACB, signaling a new phase of consolidation in the industry.

What Drove MSOX Performance Over the Last Quarter

The quarter's volatility reflects the tension between regulatory optimism and execution reality. The June spike followed the initial Schedule III rescheduling headlines and Trulieve's NYSE debut, as investors priced in a lighter tax burden and eventual access to institutional capital. The subsequent July drawdown — which dragged MSOX from above $4 to near $2 — reflected profit-taking and concern that the full Schedule III outcome remains unresolved, alongside lingering revenue headwinds at several operators.

Structurally, the sector is in a period of transition. Schedule III relief improves cash flow for medical operators, encourages M&A, and could eventually open the door to mainstream index inclusion. But near-term fundamentals remain uneven, with several large operators still reporting year-over-year revenue declines even as margins improve. This mix of powerful catalysts and unresolved fundamentals is what produced MSOX's outsized two-way swings.

MSOX ETF Outlook: What Investors Should Watch Next

The outlook for MSOX hinges on the same variables that drove its recent swings. The most important near-term event is the final DEA decision on reclassifying all cannabis to Schedule III, expected by year-end; a favorable outcome would reinforce the tax-relief thesis, while delay could renew volatility. Investors should also monitor whether Section 280E relief flows through to operator cash flow and earnings, the pace of M&A, and the potential for additional U.S. exchange uplistings.

Broader forces matter as well: interest rates and access to capital, state-level market expansion (including Georgia, Texas, and Florida), and the trajectory of revenue growth at the largest MSOs. Because MSOX resets its leverage daily, the path of the underlying market — not just its endpoint — will determine returns. Elevated volatility, regulatory uncertainty, and the fund's own leverage mechanics remain the principal risks alongside the sector's structural growth and reform potential. One thing that stands out is how the daily-reset mechanics can amplify even modest moves in the underlying holdings.

Using Tickeron’s AI Screener in My Research

I often turn to Tickeron’s AI Screener when analyzing leveraged ETFs like MSOX. The platform lets me quickly scan for technical patterns, volatility metrics, and sector comparisons across thousands of securities. It helps refine watchlists and spot potential trend shifts without manually reviewing every chart, which supports both research and idea generation in volatile areas like cannabis equities.

Disclaimer

The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.

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Contributor

Jimmy Landsman|Expert

My name is Jimmy, and I’m a financial analyst focused on identifying compelling opportunities across the ETF market. Each day, I analyze hundreds of ETFs to uncover potential trading and investment opportunities using a broad range of market factors. For short-term trading, I rely heavily on technical analysis, including price channels, momentum indicators, support and resistance levels, trend patterns, and other market signals. At the same time, I dedicate significant attention to evaluating ETFs from a long-term investment perspective. My objective is to build a well-balanced ETF portfolio that combines core investment holdings with more tactical and speculative positions. The goal is to create a portfolio that can participate effectively in market rallies while also remaining resilient during periods of volatility and market corrections.

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