MSOX Profile
The Advisorshares MSOS 2X Daily ETF is designed to deliver leveraged investment outcomes by utilizing swap agreements to magnify returns relative to the US Cannabis ETF. The fund targets a two-fold daily return relative to the performance of the US Cannabis ETF, which itself invests in a diverse range of U.S. cannabis-related securities. This includes equity shares, both common and preferred, of mid- and small-cap companies engaged in the cannabis industry.
The underlying US Cannabis ETF holds a portfolio of exchange-listed stocks and utilizes total return swaps to gain exposure to the performance of cannabis-focused companies. By employing these swap agreements, the Advisorshares MSOS 2X Daily ETF aims to achieve twice the daily return of the US Cannabis ETF, magnifying both potential gains and risks associated with movements in the cannabis sector.
Given its leverage strategy, the Advisorshares MSOS 2X Daily ETF is structured to provide amplified exposure to the performance of its underlying index. This approach involves daily rebalancing of the leveraged positions to maintain the intended exposure. The fund's non-diversified nature means it focuses specifically on the cannabis sector, potentially increasing both opportunities and volatility within this niche market.
Investors in the Advisorshares MSOS 2X Daily ETF should be aware that leveraged ETFs are intended for short-term trading and may not be suitable for all investors due to their increased risk profile. The fund's use of leverage and swap agreements means that it is designed for investors seeking high-risk, high-reward opportunities within the rapidly evolving cannabis industry, with a focus on achieving amplified returns on a daily basis.
|
