Why AdvisorShares MSOS 2x Daily ETF (MSOX) Is Down -25% in the Last 30 Days
Key Takeaways
- MSOX declined roughly 25% over the trailing 30 days, reflecting leveraged exposure to a sharp drawdown in U.S. cannabis equities.
- The selloff was triggered by a procedural pause in federal cannabis rescheduling proceedings, resetting the timeline for a potential Schedule III classification.
- As a 2x daily leveraged fund, MSOX seeks double the daily return of the AdvisorShares Pure US Cannabis ETF (MSOS) and amplifies both gains and losses.
- Underlying exposure is concentrated in U.S. multi-state operators, led by Trulieve, Green Thumb Industries, and Curaleaf.
- Over the trailing quarter the fund was down roughly 21%, extending a volatile, headline-driven trend.
- Federal rescheduling and Section 280E tax relief remain the dominant catalysts for the fund's direction.
- Explore additional Price Targets and Forecast pages for deeper analysis of MSOX.
- Discover Trending AI Robots for automated, data-driven trading ideas across the market.
AdvisorShares MSOS 2x Daily ETF (MSOX) Overview and Portfolio Exposure
The AdvisorShares MSOS 2x Daily ETF is an actively managed leveraged exchange-traded fund (ETF) that seeks daily investment results corresponding to approximately two times (2x) the daily total return of the AdvisorShares Pure US Cannabis ETF (MSOS), before fees and expenses. The fund achieves its exposure primarily through total return swap agreements rather than directly holding the underlying stocks.
MSOX launched in August 2022 and carries a net expense ratio of approximately 0.95%. It is classified as non-diversified and reports roughly a dozen holdings, with the dominant position being a total return swap tied to MSOS. Assets under management (AUM), the total market value of fund assets, are modest at roughly $40–50 million.
Because MSOS concentrates in U.S. cannabis multi-state operators (MSOs), MSOX's effective exposure is similarly narrow. The largest underlying names include Trulieve, Green Thumb Industries, Curaleaf, Verano, and Cresco Labs. This concentration—combined with daily 2x leverage—means MSOX is highly sensitive to cannabis-specific news and can move sharply in short periods.
AdvisorShares MSOS 2x Daily ETF (MSOX) Price Performance: Last 30 Days vs. Quarter
Over the trailing 30 days, MSOX fell from roughly $2.37 to near $1.78, a decline of approximately 25%. The move was not gradual: much of the damage occurred in a single elevated-volume session in late September, followed by continued drift lower through October as the sector absorbed the policy setback.
The trailing three-month performance tells a similar story. Measured against a level near $2.25 three months earlier, the fund was down approximately 21%. The pattern has been trend-driven and volatile rather than range-bound, consistent with a leveraged instrument tracking a headline-sensitive sector.
What Drove MSOX Price in the Last 30 Days
The primary catalyst was regulatory. In late September, a Drug Enforcement Administration (DEA) administrative law judge paused the proceedings to move cannabis from Schedule I to Schedule III, citing a Government Accountability Office report. The pause pushed a potential final decision timeline into the following year, rattling investors who had priced in near-term reform.
The reaction in the underlying basket was severe. MSOS, which MSOX tracks at 2x daily leverage, fell sharply, while major holdings sold off broadly—Trulieve dropped by a double-digit percentage, and Curaleaf and Green Thumb Industries also declined. Because MSOX resets its leverage daily, these losses compounded, and the fund's 30-day decline roughly doubled the move in the underlying cannabis complex.
The drawdown reflects the sector's dependence on federal policy milestones. Rescheduling to Schedule III would relieve operators of the Section 280E tax burden, which currently prevents cannabis companies from deducting ordinary business expenses and pushes effective tax rates well above typical corporate levels.
What Drove MSOX Performance Over the Last Quarter
The broader three-month trend was shaped by a sequence of policy headlines and industry consolidation. Earlier in the period, optimism around the landmark move to reclassify medical cannabis from Schedule I to Schedule III supported a rebound in cannabis equities, helping lift MSOX from summer lows into September.
That momentum reversed once the DEA procedural pause cast doubt on the timeline. Sector-specific merger activity—including Curaleaf's unsolicited pursuit of Canadian operator Aurora Cannabis—and Trulieve's milestone as the first U.S. plant-touching operator to list on the New York Stock Exchange (TRLV) added to a choppy, sentiment-driven tape. For a daily-leveraged fund, this combination of sharp rallies and drawdowns creates meaningful volatility drag, which can cause longer-horizon returns to diverge from two times the underlying index's cumulative return.
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MSOX ETF Outlook: What Investors Should Watch Next
The most important factor ahead is the federal rescheduling timeline. Any clarification on whether the DEA reopens the record, grants additional briefings, or advances the Schedule III process will likely drive the underlying basket—and, through leverage, MSOX—in either direction. Investors should also monitor Section 280E developments, since permanent tax relief would materially improve the cash flow and earnings profiles of multi-state operators.
Beyond policy, capital flows into the cannabis sector, continued consolidation among operators, state-level retail expansion, and the earnings trajectory of Trulieve, Green Thumb Industries, and Curaleaf will shape the outlook. Risks include further procedural delays, valuation pressure, and the structural reality of leveraged fund decay during sustained volatility. These themes, rather than short-term headlines, are likely to define MSOX's path over the coming months.
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.
MSOX in downward trend: 10-day moving average crossed below 50-day moving average on October 07, 2026
The 10-day moving average for MSOX crossed bearishly below the 50-day moving average on October 07, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 11 of 12 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 90%.
Technical Analysis (Indicators)
Bearish Trend Analysis
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MSOX declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 90%.
MSOX broke above its upper Bollinger Band on November 03, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for MSOX entered a downward trend on October 28, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where MSOX's RSI Indicator exited the oversold zone, 29 of 31 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 90%.
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
The Momentum Indicator moved above the 0 level on October 30, 2026. You may want to consider a long position or call options on MSOX as a result. In 62 of 65 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 90%.
The Moving Average Convergence Divergence (MACD) for MSOX just turned positive on October 27, 2026. Looking at past instances where MSOX's MACD turned positive, the stock continued to rise in 27 of 28 cases over the following month. The odds of a continued upward trend are 90%.
Following a +28.09% 3-day Advance, the price is estimated to grow further. Considering data from situations where MSOX advanced for three days, in 147 of 163 cases, the price rose further within the following month. The odds of a continued upward trend are 90%.
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