The AdvisorShares Pure Cannabis ETF (YOLO) is an actively managed exchange-traded fund focused on providing exposure to the global cannabis industry. Launched in 2019, it was among the first actively managed ETFs in the cannabis sector. The fund invests in companies across various segments of the cannabis industry, including cultivators, pharmaceuticals, healthcare, hemp, and ancillary businesses. YOLO‘s active management approach allows it to adapt to the rapidly evolving regulatory landscape and market opportunities in the cannabis sector, differentiating it from passive cannabis ETFs.

Basic Information

Parameter	Value	Notes
Launch Date	April 17, 2019	AdvisorShares
Assets Under Management	~$50-100M	Variable
Expense Ratio	0.75%	Active management
Management Style	Active	Portfolio manager discretion
Trading Symbol	YOLO	NYSE Arca
Issuer	AdvisorShares	Active ETF specialist
Structure	Investment Company	1940 Act fund
Rebalance Frequency	Dynamic	Active decisions

Portfolio Composition

Segment	Target Allocation	Focus
Multi-State Operators	30-40%	U.S. cannabis
Canadian LPs	20-30%	Global markets
Pharmaceuticals	10-20%	Medical cannabis
Ancillary Services	10-20%	Support businesses
Hemp/CBD	5-15%	Legal derivatives

Investment Criteria

Factor	Consideration	Importance
Regulatory Status	Legal compliance	Critical
Market Position	Competitive advantage	High
Financial Strength	Balance sheet	High
Growth Potential	Market opportunity	High
Management Quality	Experience/Strategy	Medium

Trading Characteristics

Metric	Value	Context
Average Daily Volume	50-100K shares	Moderate liquidity
Bid-Ask Spread	~$0.05-0.10	Wider spread
Volatility	High	Emerging sector
Market Hours	9:30-16:00 ET	Regular session
Extended Hours	4:00-20:00 ET	Pre/post market

Risk Factors

Risk Type	Level	Description
Regulatory Risk	Very High	Legal/policy changes
Market Risk	Very High	Emerging industry
Liquidity Risk	High	Trading volume
Concentration Risk	High	Sector focus
Political Risk	High	Policy uncertainty

Usage Applications

1. Investment Strategies:

• Thematic exposure
• Growth potential
• Sector diversification
• Emerging industry

2. Portfolio Role:

• Satellite position
• Thematic allocation
• High risk/reward
• Growth component

3. Time Horizon:

• Long-term growth
• Industry development
• Regulatory evolution
• Market maturation

Best Practices

1. Position Management:

• Small allocation
• Risk limits
• Regular monitoring
• Stop–loss orders

2. Implementation:

• Limit orders
• Position sizing
• Entry timing
• Cost averaging

3. Risk Management:

• Diversification
• Position limits
• Regular review
• Exit strategy

Market Segments

Segment	Focus	Opportunity
Medical	Healthcare	Research/Treatment
Recreational	Consumer	Adult use
CBD/Hemp	Wellness	Legal derivatives
Ancillary	Services	Support industry
Biotech	Research	Drug development

Performance Drivers

Factor	Impact	Description
Regulation	Very High	Legal framework
Market Growth	High	Industry expansion
Public Opinion	High	Social acceptance
Research Progress	Medium	Medical validation
Competition	Medium	Market dynamics

Technical Considerations

Aspect	Impact	Management
Liquidity	Trading execution	Size management
Volatility	Price risk	Position sizing
Sector News	Price movement	Monitoring
Regulatory News	Market impact	Quick response

Monitoring Requirements

Element	Frequency	Purpose
Regulatory Updates	Daily	Compliance check
Company News	Daily	Portfolio impact
Industry Trends	Weekly	Strategy alignment
Performance Review	Monthly	Position evaluation

Common Mistakes to Avoid

1. Investment Errors:

• Over-allocation
• Poor timing
• Emotion-driven
• Inadequate research

2. Risk Management:

• Ignoring regulation
• Over-concentration
• Poor monitoring
• No exit plan

3. Implementation:

• Market orders
• Illiquid positions
• Poor execution
• Cost ignorance

Regulatory Considerations

Aspect	Impact	Requirements
Federal Law	Critical	Compliance focus
State Laws	High	Operating environment
Banking Rules	High	Financial services
International	Medium	Global markets

Industry Metrics

Metric	Purpose	Importance
Sales Growth	Market expansion	High
Market Share	Competitive position	Medium
Regulatory Status	Legal compliance	Critical
Research Pipeline	Future potential	Medium

Note: Data and statistics are approximate as of early 2024. Cannabis industry investments involve significant risks including regulatory, political, and market risks. Suitable for investors with high risk tolerance and long-term perspective.