AdvisorShares MSOS Daily Leveraged ETF (MSOX)

Overview

The fund described is an investment vehicle that aims to generate leveraged returns compared to the performance of the US Cannabis ETF. This ETF mainly focuses on investing in equity securities, including common and preferred stocks of mid- and small-cap companies that are engaged in the cannabis industry, listed on exchanges. The fund employs swap agreements to achieve its investment objective, seeking to magnify the returns related to the cannabis market in the United States. Due to its concentrated investment approach, the fund is classified as non-diversified, meaning it invests a larger portion of its assets in fewer securities, which could lead to higher volatility and risk.

Products and Services

• Swap Agreements

These are derivatives contracts through which the fund aims to gain leveraged exposure to the returns of the US Cannabis ETF. By entering into swap agreements, the fund can achieve amplified investment results related to the cannabis industry's performance without directly holding the underlying assets.

• US Cannabis ETF Investment

The primary investment focus is on exchange-listed equity securities of mid- and small-capitalization companies within the cannabis sector. This includes both common and preferred stock. The ETF seeks to capture the growth potential of the cannabis industry by investing in a range of companies engaged in the legal cultivation, production, marketing, or distribution of cannabis and related products.

• Total Return Swaps

In addition to traditional swap agreements, the fund also invests in total return swaps. These swaps are intended to provide full exposure to the performance of the underlying assets of the US Cannabis ETF, including dividends and other income, minus any fees. This allows the fund to benefit from the total return of the cannabis sector's equities, enhancing the potential for higher yields.