MSOS vs YOLO

Key Takeaways

• MSOS provides exclusive exposure to U.S. cannabis companies, primarily multi-state operators (MSOs), while YOLO offers global cannabis exposure including significant holdings in Canadian firms and a substantial allocation to MSOS itself.
• Both ETFs are actively managed thematic funds from AdvisorShares targeting the cannabis sector, with strategies focused on companies deriving at least 50% of revenue from marijuana and hemp businesses.
• MSOS maintains a higher net expense ratio of approximately 0.78% compared to YOLO’s 0.51%, reflecting differences in portfolio complexity and use of derivatives such as total return swaps.
• MSOS features greater concentration in top U.S. holdings like Trulieve Cannabis Corp (TRLV) and Curaleaf Holdings Inc (CURLF), whereas YOLO diversifies across international names and holds MSOS as a core position.
• Liquidity and scale favor MSOS with substantially larger assets under management, while both remain non-diversified vehicles exposed to regulatory, sector-specific, and small-cap volatility risks.
• Structural positioning highlights MSOS as a pure-play U.S. bet and YOLO as a broader global cannabis vehicle with built-in U.S. exposure through its MSOS allocation.

Introduction

AdvisorShares Pure US Cannabis ETF (MSOS) and AdvisorShares Pure Cannabis ETF (YOLO) represent two distinct approaches to cannabis sector exposure within the same actively managed family. They do not compete directly but instead offer investors alternative strategies targeting similar goals of long-term capital appreciation through cannabis-related equities. MSOS concentrates solely on U.S. multi-state operators and related businesses, while YOLO incorporates global holdings alongside a meaningful position in MSOS. In the current environment of evolving federal and state regulations, these ETFs provide differentiated access to an emerging industry still navigating legalization pathways and market consolidation.

AdvisorShares Pure US Cannabis ETF (MSOS) Overview

AdvisorShares Pure US Cannabis ETF (MSOS) is an actively managed exchange-traded fund launched in September 2020 that seeks long-term capital appreciation by investing at least 80% of its net assets in U.S. companies deriving significant revenue from the marijuana and hemp business. The fund employs total return swaps to access certain holdings and maintains a concentrated portfolio typically featuring 20 to 60 positions. Top holdings commonly include Trulieve Cannabis Corp (TRLV), Curaleaf Holdings Inc (CURLF), Green Thumb Industries Inc (GTBIF), Glass House Brands Inc (GLAS), and Verano Holdings Corp (VRNO). Sector allocation centers on health care and consumer staples within the cannabis theme. The net expense ratio stands at approximately 0.78%, and the fund uses an active fundamental process without tracking a specific index. Distinguishing features include its exclusive U.S. focus and emphasis on multi-state operators.

AdvisorShares Pure Cannabis ETF (YOLO) Overview

AdvisorShares Pure Cannabis ETF (YOLO) is an actively managed exchange-traded fund launched in April 2019 that seeks long-term capital appreciation through global cannabis equity securities, including both domestic and international companies. The fund invests at least 80% of assets in firms deriving meaningful revenue from marijuana and hemp activities and maintains a compact portfolio of around 20 holdings. Top positions often feature AdvisorShares Pure US Cannabis ETF (MSOS) itself at significant weight, alongside Village Farms International Inc (VFF), High Tide Inc (HITI), Trulieve Cannabis Corp (TRLV), and Curaleaf Holdings Inc (CURLF). Exposure spans U.S. and Canadian markets with additional smaller allocations elsewhere. The net expense ratio is 0.51%, lower than many peers, reflecting its active selection process without a benchmark index. Key characteristics include broader geographic diversification and its role as a feeder into U.S.-focused cannabis exposure via the MSOS holding.

Industry and Thematic Backdrop

The cannabis sector continues to evolve amid shifting regulatory landscapes at both federal and state levels in the United States, alongside established markets in Canada and emerging opportunities internationally. Capital flows remain sensitive to policy developments, including potential rescheduling of cannabis and banking reforms that could ease operational constraints for multi-state operators. Macroeconomic factors such as interest rate expectations influence growth-oriented small- and mid-cap companies prevalent in the space, while sector risks include ongoing volatility from legislative uncertainty, competition, and variable consumer demand. Both ETFs operate within this thematic environment, where active management seeks to navigate consolidation among leading operators and capitalize on long-term legalization trends.

Performance and Positioning Comparison

In recent market cycles, MSOS has exhibited performance closely tied to the operational momentum of leading U.S. multi-state operators and broader sector rotation into regulated cannabis equities. YOLO’s returns reflect a blended profile, incorporating global names and its allocation to MSOS, resulting in somewhat moderated volatility compared to a pure U.S. play during periods of domestic policy focus. Relative positioning shows MSOS offering more direct sensitivity to U.S.-specific catalysts such as state-level expansions, while YOLO provides additional exposure to Canadian producers and ancillary businesses. Both funds demonstrate elevated volatility characteristic of the thematic cannabis space, with performance drivers including earnings from core holdings and shifts in interest rate expectations affecting growth valuations.

AI Screener

Tickeron’s AI Screener is an AI-powered stock and ETF discovery tool that helps traders and investors filter the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of stocks and ETFs using customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. The screener helps identify trade ideas, trending stocks, breakout candidates, and market opportunities more efficiently than manual screening. Investors seeking data-driven insights into funds like MSOS and YOLO may find the platform useful for refining thematic exposure decisions.

Tickeron AI Verdict

Based on observable structural factors, Tickeron’s AI would currently assign a modestly higher probability of favorability to AdvisorShares Pure US Cannabis ETF (MSOS) due to its dedicated U.S. focus, larger scale supporting liquidity, and concentrated positioning in leading multi-state operators amid ongoing domestic regulatory momentum. YOLO’s lower expense ratio and global diversification offer complementary attributes, yet the built-in allocation to MSOS creates overlap that may reduce incremental differentiation for investors already considering pure U.S. cannabis exposure.

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.

Disclaimers and Limitations