Looking to build on the success of the AdvisorShares Pure Cannabis ETF (YOLO), AdvisorShares has filed plans for another actively managed cannabis ETF, one that will focus on US-based marijuana companies.
The issuer is looking to launch the AdvisorShares Pure US Cannabis ETF, which will trade on the New York Stock Exchange under the ticker “MJUS.”
“In addition to its investment in securities of companies that derive a significant portion of their revenue from the marijuana and hemp business, and in derivatives providing exposure to such securities, the Fund 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,” according to the MJUS filing.
YOLO Is No Longer Solo
YOLO was the first actively managed fund to enter the space when it debuted in April.
YOLO seeks long-term capital appreciation by investing in both domestic and foreign cannabis equity securities. YOLO is designed to fully-invest for pure cannabis exposure under the guidance of a deeply experienced portfolio management team navigating the emerging cannabis marketplace.
While the filing for MJUS obviously has a ticker, it does not feature an expense ratio. Both are considered signs that an ETF that has been filed for is close to coming to market. There are currently five cannabis ETFs listed in the U.S., three of which debuted in July.
For MJUS: “Cannabis securities may be categorized among a wide variety of sectors and industries including agriculture, biotechnology, pharmaceuticals, real estate, retail, and finance,” according to the SEC filing. “The types of companies that may engage in cannabis-related business include companies that conduct medical research, produce drug products, manufacture hemp products, or engage in agricultural activities, real estate activities, or financial services activities. The terms ‘marijuana’ and ‘cannabis’ are used interchangeably.”
YOLO recently added some domestic marijuana firms to its roster, but MJUS would be the first ETF dedicated to that space.
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