AdvisorShares MSOS Daily Leveraged ETF

Frequently Asked Questions About MSOX

What does MSOX invest in?

The AdvisorShares MSOS Daily Leveraged ETF (MSOX) seeks to generate amplified investment returns, both positive and negative, by entering into derivative contracts known as swap agreements. These agreements are designed to provide leveraged exposure to the performance of the US Cannabis ETF. The underlying US Cannabis ETF primarily allocates its capital to publicly traded common and preferred stocks of companies categorized as mid-capitalization and small-capitalization. Additionally, it utilizes total return swaps to achieve further exposure to these types of businesses. It's important to note that MSOX operates with a concentrated portfolio, meaning it is considered a non-diversified fund.

What is the expense ratio of MSOX?

AdvisorShares MSOS Daily Leveraged ETF (MSOX) charges an expense ratio of 1.42%. This is the annual fee deducted from fund assets to cover management and operations.

Is MSOX a good long-term hold?

MSOX is a leveraged fund designed to deliver a daily multiple of its underlying index. Daily reset compounding means returns over multi-day periods can diverge significantly from the headline multiple — typically negative drift in choppy markets. These funds are designed for short-term tactical use, not buy-and-hold. Review the fund's prospectus before holding more than a few days.

How does MSOX's daily reset work?

MSOX rebalances exposure each trading day to maintain its target leverage ratio against the next day's move. The daily reset means returns compound at the daily level — so a +1%, −1% sequence on the underlying doesn't return the underlying to flat after the leverage multiplier. Over time this path-dependence erodes returns in volatile markets and amplifies them in trending markets.

How big is MSOX?

AdvisorShares MSOS Daily Leveraged ETF (MSOX) manages $53.7M in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure — funds below ~$50M are at higher risk of liquidation.

Is MSOX actively managed or an index fund?

MSOX's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.