The AdvisorShares MSOS 2x Daily ETF (MSOX) is a leveraged exchange-traded fund that seeks investment results corresponding to approximately two times the daily total return of the AdvisorShares Pure US Cannabis ETF (MSOS). Launched in August 2022, it is designed for short-term tactical traders rather than buy-and-hold investors, because its leverage resets every day.
The fund's largest positions are concentrated in multi-state operators and other U.S. cannabis companies, including Trulieve Cannabis, Curaleaf Holdings, Green Thumb Industries, Glass House Brands, Verano Holdings, Cresco Labs, and TerrAscend. Because these names trade primarily in the over-the-counter market or through total return swaps, MSOX's performance is closely tied to sentiment around the domestic cannabis industry.
At a recent price near $2.50, a move to $5 represents a meaningful, high-visibility milestone rather than a trivial near-term bump. It is a round psychological number that would roughly double an investor's stake, and it sits comfortably above the fund's 52-week low of $1.655 while remaining well below the 52-week high of $13.15. In short, $5 is a realistic intermediate objective that already features prominently in retail discussions of where the fund could trade if the cannabis sector stages a genuine recovery.
The single most important catalyst for MSOX is progress on U.S. federal cannabis policy. The long-running debate over rescheduling cannabis and the possibility of broader reform remains the dominant macro theme for the sector. Any concrete regulatory breakthrough would likely lift the underlying MSOS holdings, and the 2x daily leverage would amplify that move in MSOX on strong up days.
A second factor is the deeply depressed valuation of many U.S. cannabis operators. After a prolonged drawdown, the sector trades far below the euphoric levels of its earlier years, leaving room for a sharp relief rally if institutional capital returns. Because MSOX resets its exposure daily, a multi-week advance in the underlying index would compound positively and could carry the fund toward higher levels much faster than a non-leveraged fund.
The largest structural risk is volatility decay. Leveraged ETFs that reset daily tend to lose value over time when the underlying asset moves sideways with frequent ups and downs, even if the underlying index ultimately ends flat. This means MSOX needs a consistent directional trend higher — not merely choppy trading — to reach $5.
The fund's 0.95% expense ratio and its modest size of roughly $49.5 million in net assets also act as headwinds. Regulatory deadlock remains the core fundamental risk: if rescheduling stalls or disappoints market expectations, the underlying cannabis names could remain under pressure, and the leverage would work against holders on down days.
From a technical analysis perspective, the ETF's 52-week range between $1.655 and $13.15 frames the broader market outlook. The $1.655 area represents major support from recent years, while the $5 level functions as an important psychological resistance zone and a potential breakout objective. Below current prices, the recent lows near $2.00 have acted as a short-term support area. A decisive push above the mid-single digits would signal improving momentum, while a breakdown toward the 52-week low would undermine the bullish case entirely.
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A move to $5 is not a base-case expectation for MSOX in the near term, but it is not unrealistic either. The target is achievable because the fund is deeply depressed, its leverage can amplify a sector rebound, and any meaningful federal cannabis policy breakthrough could trigger exactly the kind of sustained rally that leveraged funds are built to capture. At the same time, the structural drag of daily resetting, the elevated expense ratio, and the ever-present risk of regulatory delay make the path to $5 conditional rather than assured. Investors should monitor federal cannabis policy developments, the direction of the underlying MSOS holdings, and whether MSOX can hold its recent support levels before attempting to build toward the $5 objective.
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.
A.I.dvisor tells us that MSOX and SPXL have been poorly correlated (+19% of the time) for the last year. This A.I.-generated data suggests there is low statistical probability that MSOX and SPXL's prices will move in lockstep.
| Ticker / NAME | Correlation To MSOX | 1D Price Change % | ||
|---|---|---|---|---|
| MSOX | 100% | -1.39% | ||
| SPXL - MSOX | 19% Poorly correlated | +1.95% | ||
| SSO - MSOX | 18% Poorly correlated | +1.30% | ||
| QLD - MSOX | 15% Poorly correlated | +2.75% | ||
| TSLL - MSOX | 15% Poorly correlated | +4.96% | ||
| TECL - MSOX | 12% Poorly correlated | +9.32% | ||
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