The cannabis sector is buzzing again—and at the center of the action is the AdvisorShares Pure U.S. Cannabis ETF, better known by its ticker: MSOS. After a brutal bear market that left many investors dazed and confused, MSOS is staging a fiery comeback, fueled by renewed optimism around federal cannabis rescheduling. But is now the time to buy in, or should investors wait for the smoke to clear?
Let’s break it down.
What Is MSOS?
MSOS is the first—and still the only—actively managed ETF focused exclusively on U.S.-based cannabis companies. Unlike other cannabis ETFs that mix in Canadian producers or ancillary businesses, MSOS goes straight to the source: U.S. multi-state operators (MSOs) that grow, process, and sell cannabis in legal states.
With over $875 million in assets under management and a concentrated portfolio of top-tier cannabis operators, MSOS is the go-to vehicle for investors who want pure exposure to America’s green gold rush.
MSOS’s Biggest Holdings
As of August 2025, MSOS’s top holdings include:
- Green Thumb Industries (GTBIF) – 32.73%
- Trulieve Cannabis Corp (TCNNF) – 20.54%
- Curaleaf Holdings Inc (CURLF) – 13.71%
- Cresco Labs Inc (CRLBF) – 7.46%
- Glass House Brands Inc (GLASF) – 6.62%
- Verano Holdings Corp (VRNOF) – 5.87%
- TerrAscend Corp (TSNDF) – 5.62%
These companies dominate the U.S. cannabis landscape, operating hundreds of dispensaries and cultivation facilities across multiple states. They’re the backbone of the industry—and MSOS gives you exposure to all of them in one tidy package.
Why MSOS Could Be a Smart Buy
The biggest catalyst on the horizon? Federal rescheduling of cannabis. President Trump has hinted at moving marijuana from Schedule I to Schedule III, a shift that would:
- Eliminate the punitive 280E tax code
- Allow cannabis companies to deduct normal business expenses
- Open the door to institutional investment and banking access
- Spark a wave of M&A and expansion
MSOS surged 29% in a single day following Trump’s comments. That’s not just hype—it’s a signal that the market is hungry for reform. If rescheduling becomes reality, MSOS’s holdings could see explosive earnings growth and valuation expansion.
But here’s the catch: the decision isn’t final. Some analysts argue that the ETF has already priced in much of the upside, and caution investors to wait for confirmation before diving in.
Should You Buy Now or Wait?
If you’re a long-term investor with a tolerance for volatility, MSOS offers unmatched exposure to the U.S. cannabis boom. The ETF is trading well below its 52-week high, and recent inflows suggest that smart money is positioning ahead of regulatory change.
However, if you’re risk-averse or prefer to see the ink dry on federal reform, it might be wise to wait for rescheduling to be finalized. Either way, MSOS deserves a spot on your watchlist.
MSOS vs. The Competition
MSOS isn’t the only cannabis ETF in town. Its biggest rivals include:
| ETF Ticker | Name | Focus Area | AUM |
|---|---|---|---|
| CNBS | Amplify Seymour Cannabis ETF | Global cannabis | $116M |
| MJ | ETFMG Alternative Harvest ETF | Global + tobacco | $198M |
| YOLO | AdvisorShares Pure Cannabis ETF | Global cannabis | $45M |
| TOKE | Cambria Cannabis ETF | U.S. + global blend | $14M |
While these ETFs offer broader exposure, MSOS remains the purest play on U.S. cannabis legalization. Its active management and concentrated portfolio give it an edge when regulatory winds shift.
Final Hit: A Green Opportunity
Cannabis isn’t just a trend—it’s a generational shift in policy, medicine, and consumer behavior. Whether you’re bullish on federal reform or just want exposure to a high-growth sector, MSOS offers a compelling way to ride the wave.
So light up your portfolio—metaphorically speaking—and consider whether MSOS deserves a puff of your investment capital. The green rush may be just getting started.
