U.S. Election – Focus on Fundamentals, not Emotions
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This U.S. election cycle, five states are voting on cannabis legalization and decriminalization has been raised by a main-line U.S. Presidential candidate. 
Focus on Cannabis Fundamentals, Not Emotions
In the aftermath of the November 3rd vote, increased U.S. legalization or decriminalization of cannabis will not help Canadian cannabis operators financially. It only has the potential to help U.S.-based companies and multi-state operators (M.S.O.s).
ONLY AdvisorShares offers U.S.-listed ETFs
with direct exposure to U.S. cannabis and multi-state operators
 
MSOS | YOLO — Cannabis Advantages
Multi-State Operator Exposure – Are the only U.S.-listed ETFs offering this exposure.
Opportunistic – Can invest in mid and small cap companies and new cannabis equity IPOs, which may benefit from merger and acquisition activity as the market evolves.
Active Management – Can adjust their portfolios more quickly and opportunistically than a passive index-based strategy, an important attribute in a rapidly evolving marketplace.
Ease of Access with Risk Mitigation – The ETF structure offers access to cannabis by diversifying across multiple securities, rather than just one or two stocks, and in a single trade on the NYSE.
Experienced – Are led by a portfolio manager with deep investing experience in highly regulated industries and partnered with an established, well-regarded custodial bank.
 Trailing Total Returns - NAV (%)
As of 10/15/20 Ticker
M.S.O.s
Exposure
1
Mos.
3
Mos.
6
Mos.
YTD
1
Year
Since Incept.*
(annualized)
AdvisorShares Pure US Cannabis ETF MSOS yes 13.14 --- --- --- --- ---*
AdvisorShares Pure
Cannabis ETF
YOLO yes 2.42 7.51 52.32 1.33 -9.63 -29.31
ETFMG Alternative Harvest ETF MJ no -1.33 -16.46 1.69 -31.55 -39.30 -50.15
The Cannabis ETF THCX no 0.61 -8.49 18.66 -23.68 -35.30 -49.47
Global X Cannabis ETF POTX no -2.19 -25.72 -7.89 -44.09 -54.81 -65.32
North Amer. Marijuana Index --- --- -7.23 -0.68 35.36 -8.97 -20.69 -38.17
* Common inception is 9/18/2019; MSOS inception date was 9/1/2020. Source: Morningstar.
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Returns less than one year are not annualized. For most recent month-end performance go to www.advisorshares.com for MSOS and YOLO; www.etfmg.com for MJ; www.thcxetf.com for THCX; and www.globalx.com for POTX.
 
 

 
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-For Financial Intermediary Use Only - Not For Use With The Retail Public-
 
Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained by visiting the Fund’s website at www.AdvisorShares.com. Please read the prospectus carefully before you invest.  Foreside Fund Services, LLC distributor.
 
The Fund is subject to a number of risks that may affect the value of its shares. This section provides additional information about the Fund’s principal risks. The degree to which a risk applies to the Fund varies according to its investment allocation. Each investor should review the complete description of the principal risks before investing in the Fund. As with investing in other securities whose prices increase and decrease in market value, you may lose money by investing in the Fund.
 
Cannabis-Related Company Risk: Cannabis-related companies are subject to various laws and regulations that may differ at the state/local and federal level. These laws and regulations may (i) significantly affect a cannabis-related company’s ability to secure financing, (ii) impact the market for marijuana industry sales and services, and (iii) set limitations on marijuana use, production, transportation, and storage. Cannabis-related companies may also be required to secure permits and authorizations from government agencies to cultivate or research marijuana. In addition, cannabis-related companies are subject to the risks associated with the greater agricultural industry, including changes to or trends that affect commodity prices, labor costs, weather conditions, and laws and regulations related to environmental protection, health and safety. Cannabis-related companies may also be subject to risks associated with the biotechnology and pharmaceutical industries. These risks include increased government regulation, the use and enforcement of intellectual property rights and patents, technological change and obsolescence, product liability lawsuits, and the risk that research and development may not necessarily lead to commercially successful products.
 
MSOS and YOLO Competitor Disclosure
 
The purpose of the information in this material is to provide Investors with a means to evaluate investment strategies of Cannabis Related funds as compared to AdvisorShares U.S. Pure Cannabis ETF (MSOS) and AdvisorShares Pure Cannabis ETF (YOLO) It is the opinion of Advisorshares, the Fund's investment adviser, that all funds are managed differently and do not react the same to economic or market events. The investment objectives, strategies, policies or restrictions of other funds may differ and more information can be found in their respective prospectuses. Therefore, we generally do not believe it is possible to make direct fund to fund comparisons in an effort to highlight the benefits of a fund versus another similarly managed fund.
 
MSOS – The AdvisorShares US Pure Cannabis ETF seeks long-term capital appreciation. Gross Expense Ratio = 0.87%, Net Expense Ratio = 0.74%.
YOLO – The AdvisorShares Pure Cannabis ETF seeks long-term capital appreciation.  Gross Expense Ratio = 1.10%, Net Expense Ratio = 0.74%.
 
The Fund(s) is actively managed and seeks to achieve its investment objective by investing, under normal circumstances, at least 80% of its net assets (plus any borrowings for investment purposes) in securities of companies that derive at least 50% of their net revenue from the marijuana and hemp business and in derivatives or other instruments that have economic characteristics similar to such securities.
 
In addition to its investment in securities of companies that derive a significant portion of their revenue from the marijuana and hemp business, the Fund(s) may invest in securities of companies that, in the opinion of the Advisor, may have current or future revenues from cannabis-related business or that are registered with the DEA specifically for the purpose of handling marijuana for lawful research and development of cannabis or cannabinoid-related products. The Fund(s) will only invest in companies that engage in cannabis-related business that is permitted by national and local laws of the relevant jurisdiction, including U.S. federal and state laws.
 
The Fund(s) will concentrate at least 25% of its investments in the pharmaceuticals, biotechnology and life sciences industry group within the health care sector. The Advisor may use a variety of methods for security selection. As the Fund(s) primarily focuses on certain industries, the Advisor intends to select companies with dominant positions in their respective markets, or those in unique positions for growth and expansion. In addition, the Advisor may invest the Fund’s assets in lesser-known companies that the Advisor believes have a unique opportunity for growth.
 
The Fund(s) is non-diversified and may invest a greater percentage of its assets in a particular issuer than a diversified fund.
 
MSOS is new and does not have information on portfolio turnover yet. 
 
During the most recent fiscal year, the YOLO's portfolio turnover rate was 26% of the average value of its portfolio.
 
Creation units consist of 25,000 Shares.
 
MJ – The ETFMG Alternative Harvest ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the Prime Alternative Harvest Index. Expense Ratio = 0.75%
 
The Fund uses a “passive” replication strategy or indexing approach to try to achieve its investment objective.  However, the Fund may utilize a representative sampling strategy with respect to the Index when a replication strategy might be detrimental to shareholders
 
The Index tracks the performance of the exchange-listed common stock (or corresponding ADRs  or GDRs) of companies across the globe, including U.S. companies, that (i) are engaged in the legal cultivation of cannabis, including industrial hemp, or the legal production, marketing or distribution of cannabis, including industrial hemp, products for medical or nonmedical purposes; (ii) engage in the lawful creation, marketing or distribution of prescription drugs that utilize cannabinoids as an active ingredient; (iii) trade tobacco or produce tobacco products, such as cigarettes, cigars or electronic cigarettes; (iv) produce cigarette and cigar components, such as cigarette paper and filters; or (v) engage in the creation, production and distribution of fertilizers, plant foods, pesticides or growing equipment to be used in the cultivation of cannabis or tobacco.
 
A Cannabis Company is considered to be primarily engaged in a line of business if it derives more than 50% of its revenue from such activity.
 
The Index only includes companies that are engaged exclusively in legal activities under applicable national and local laws, including U.S. federal and state laws. Companies, whose business activities are legal under state cannabis law, but not legal under federal cannabis law, are automatically ineligible for inclusion in the Index.
 
The Fund will invest at least 80% of its total assets, exclusive of collateral held from securities lending, in the component securities of the Index and in ADRs and GDRs based on the component securities in the Index (the “80% Policy”). The Fund may invest up to 20% of its total assets in securities that are not in the Index to the extent that the Fund’s investment adviser believes that such investments should help the Fund’s overall portfolio track the Index.
The fund is considered non-diversified.
 
For the fiscal year ended September 30, 2019, the Fund’s portfolio turnover rate was 71% of the average value of its portfolio
 
Creation Units consider of 50,000 shares.
 
The fund is distributed by ETFMG Financial LLC.
 
For a Prospectus go to www.ETFmg.com.
 
POTX – The Global X Cannabis ETF seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Cannabis Index. Expense Ratio = 0.50%
 
The Underlying Index is designed to provide exposure to exchange-listed companies that are active in the cannabis industry, as defined by Solactive AG, the provider of the Underlying Index.  A company is considered by the Index Provider to be a Cannabis Company if it derives at least 50% of its revenue, operating income, or assets from the cannabis industry.  The cannabis industry is composed of the following areas: (i) the legal production, growth and distribution of marijuana, as well as extracts, derivative products or synthetic versions thereof; (ii) the legal production, growth and distribution of hemp, as well as extracts, derivative products or synthetic versions thereof; (iii) financial services (insurance offerings, property 3leasing, financing, capital markets activity and investments) provided to companies involved in the production, growth and distribution of cannabis; (iv) pharmaceutical applications of cannabis; (v) cannabidiol (better known as CBD) and cannabis oil products, edibles, topicals, drinks and other products; and (vi) products that may be used to consume cannabis.
 
In addition, companies that the Index Provider expects to derive at least 50% of future revenue, operating income or assets from the cannabis industry based on its review of their primary business operations, capital investments and/or operating expenses, as well as other public statements, are eligible for inclusion in the Underlying Index ("Pre-Revenue Companies"). Pre-Revenue Companies are subject to an aggregate weight cap of 10% at each quarterly rebalance.
 
The Fund generally uses a representative sampling strategy with respect to the Underlying Index and will invest at least 80% of its total assets in the securities of the Underlying Index and in ADRs and GDRs based on the securities in the Underlying Index.
 
To be a part of the eligible universe of the Underlying Index, a Cannabis Company must be listed on a regulated stock exchange that requires issuers to maintain compliance with all laws (State and Federal), rules and regulations applicable to their business. A company must also meet certain minimum market capitalization and liquidity criteria, as defined by the Index Provider.
 
The Underlying Index is weighted according to a modified capitalization weighting methodology and is reconstituted and re-weighted quarterly. Additionally, on an intra-quarter basis, if the Index Provider determines that a constituent of the Underlying Index does not meet the index requirements with respect to compliance with laws, rules and regulations, the Index Provider may remove such constituent outside of the regular rebalance schedule. If, after acquiring a company's securities, the company, in the Adviser's opinion, no longer meets the Eligibility Criteria, or if the Index Provider removes the company from the Underlying Index for failure to comply with laws, rules and regulations applicable to their business, the Fund will promptly sell that position, potentially at a time when it is disadvantageous to do so.
 
The fund is considered non-diversified under the ’40 act.
 
From the Fund's commencement of operations on September 17, 2019 to the end of the most recent fiscal period, the Fund's portfolio turnover rate was 11.40% of the average value of its portfolio.
 
Creation Units consist of 50,000 Shares
 
The fund is distributed by SEI Investments Distribution Co.
 
A prospectus can be obtained at www.globalxetfs.com.
 
 
THCX – The Cannabis ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the Innovation Labs Cannabis Index. Gross Expense Ratio = 0.95%. Net Expense Ratio = 0.75
 
The Fund will use a replication strategy to track the index. However, the Fund may utilize a representative sampling strategy with respect to the Index when a replication strategy might be detrimental to shareholders. The Fund will invest at least 80% of its total assets in the component securities of the Index by investing in exchange listed common stock or corresponding ADRs of Cannabis Companies.
 
The Index is a proprietary, rules-based index designed to track the performance of a portfolio of Cannabis Companies.
The initial universe of Index constituents consists of publicly listed Cannabis Companies that are involved in the legal cannabis industry.. A company has a business interest in the legal cannabis-based pharmaceutical and consumer wellness & product markets if a significant percentage (at least 50%) of its revenues are derived from such activity. Cannabis Companies do not include companies that grow or distribute marijuana inside the U.S. (unless and until such time as the cultivation, production, or distribution of such marijuana or products become legal under U.S. federal law). Cannabis Companies may, however, include companies that have a business interest in the legal hemp-based pharmaceutical and consumer wellness & product markets within the United States.
 
The index provider eliminates from the Index Universe any Cannabis Company that it knows, based on the Cannabis Company’s publicly available information, to not be operating legally or invests in companies not operating legally. If, through their investment process, the Advisor or Subadvisor identifies or becomes aware that a particular company no longer meets the Fund’s definition of Cannabis Companies, the Fund will immediately sell that position.
 
The Index Universe is then screened to not include stocks that have a market capitalization below $100 million and stocks listed on the Canadian Securities Exchange (the “CSE”). The Index constituents must  be listed on exchanges that require compliance with all laws,  rules and regulations applicable to their business, including U.S. federal laws.
 
Constituents must also have traded at least 200,000 shares during the month of reconstitution. At the time of monthly reconstitution, the Index constituents are weighted according to their market capitalization with the individual weight of an Index constituent capped at eight percent (8.00%), with the excess weighting proportionately distributed between the remaining constituents. The Index is rebalanced and reconstituted monthly, effective at the close of trading on the second Friday of the month. The Fund is rebalanced and reconstituted in accordance with the Index
The fund is considered to be non-diversified under the ’40 act.  
 
Because the Fund is newly organized, portfolio turnover information is not yet available.
 
Creation Units consist of 25,000 shares.
 
The Fund is distributed by Capital Investment Group, Inc.
 
A prospectus can be obtained at www.thcxetf.com
 

 
 
 
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