MSOS ETF: What Is It? A Complete Guide to Returns, Fees, Holdings and Alternative ETFs
An actively managed ETF focused on U.S. domestic companies, it concentrates on key players in U.S. cannabis production and distribution, aiming to benefit from policy changes and market expansion.
SubscribeWhat Is This ETF?
The fund invests in large multi-state operators (Multi-State Operators) that run businesses across several U.S. states. It is actively managed to respond sensitively to changes in the federal regulatory environment, and it uses derivative contracts and similar instruments to gain exposure to quality companies that are difficult to access through direct listings.
It is suited to aggressive investors who expect further cannabis legalization in the U.S. and explosive industry growth, and who can tolerate high volatility.
It is an actively managed ETF launched in 2020 by AdvisorShares.
How Does It Invest?
| Item | Details |
|---|---|
| Main assets | U.S. cannabis and hemp-related companies |
| Management style | Active (specialized in the U.S. market) |
| Rebalancing frequency | As needed |
| Dividend frequency | Annual |
| Expense ratio | 0.78% |
The fund concentrates its investments in a carefully selected group of leading operators in the U.S. cannabis industry. Because federal regulation and other factors keep some of these companies off major exchanges, the fund uses derivatives to track their performance, and the manager flexibly adjusts weightings in line with regulatory changes and earnings trends.
- A differentiated portfolio made up solely of U.S. domestic cannabis companies
- An active management strategy that responds to changes in the regulatory environment
Size and Costs
Assets under management (AUM) stand at $755.9M, and the expense ratio (Expense Ratio) is 0.78% per year.
PAVE and IFRA shown in the table are infrastructure-related ETFs, and UFO is a thematic product investing in the space industry, so they belong to different sectors from MSOS. However, they may share some common ground as innovation themes.
Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeShare price volatility has been very large, driven by moves toward looser federal regulation and results in earnings season, and the fund has at times staged strong rebounds as policy uncertainty eased.
Money seeking alternative investments coexists with short-term speculative capital betting on policy change, and inflows tend to surge sharply on news such as the passage of related legislation.
Pros and Cons
The fund offers high return potential from industry growth, but policy risk and high price volatility are key factors to weigh carefully.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products
Within the cannabis sector, investors can also consider MJ, CNBS and YOLO, which have a higher weighting in Canadian companies and offer global diversification unlike MSOS. For those widening their view to related supply and consumables companies, GRWG is also worth considering.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 PAVE | Global X U.S. Infrastructure Development ETF | $53.52 | -1.8% | $14.1B | 0.47% | 0.81% | +11.4% |
 IFRA | iShares U.S. Infrastructure ETF | $58.30 | -0.4% | $4.1B | 0.30% | 1.74% | +10.7% |
 UFO | Procure Space ETF | $40.24 | -3.5% | $469.8M | 0.75% | 0.38% | +8.1% |
 FAI | First Trust Bloomberg Artificial Intelligence ETF | $51.16 | -4.8% | $257.8M | 0.65% | - | +18.9% |
 AIFD | TCW Artificial Intelligence ETF | $47.25 | -5.8% | $128.3M | 0.75% | - | +24.0% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
 TRLV | Trulieve Cannabis Corp | 0.10% | $10.28 | -3.0% | $2.0B | - | - |
 VFF | Village Farms International Inc | 0.02% | $2.50 | -3.5% | $305.7M | 13.4 | - |
 MSDL | Morgan Stanley Direct Lending Fund | 0.03% | $13.87 | -0.6% | $1.2B | 20.1 | 13.04% |
 GLAS | Glass House Brands Inc | 0.01% | $2.18 | -4.4% | $168.8M | - | - |
 SNDL | SNDL Inc | 0.00% | $1.24 | -4.6% | $303.5M | - | - |
Investor Checkpoints
MSOS is a specialized thematic product that concentrates on the U.S. cannabis industry, so before deciding to invest, please check the regulatory situation and volatility closely using the key checklist below.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| ⚖️ Passage of legislation | Check federal legalization and financial services access bills | Ongoing monitoring |
| 💸 Fee level | Whether you are aware of the high operating costs from derivative use | Needs review |
| 📈 Price volatility | Assess your tolerance for sharp short-term price swings | Very high |
| 🏢 Corporate fundamentals | Trends in the major operators' return to profitability and financial health | Improving |
This is a high-risk product whose asset value can change sharply depending on political decisions. From a diversification standpoint, allocating only a very small portion of your portfolio is recommended.
It is one clear option for those who want to invest in the distinctive growth potential of the U.S. cannabis market. It is a useful tool for aggressive investors who are counting on regulatory easing as a momentum driver.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
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