MSOS ETF Analysis: Data Driven Analysis of Top Stocks Using ETF Ownership and Changes in Holdings
Updated: Jul 13, 2022
his analysis of MSOS ETF ownership of cannabis stocks is a factor contributing to the stocks ranked as best cannabis stocks in the Best Cannabis Stocks Analysis.
The MSOS - AdvisorShares Pure US Cannabis ETF (Ticker MSOS) is the largest Cannabis ETF globally, measured in terms of Assets Under Management (AUM). Further information on the fund, and the fund’s daily holdings data, can be found on the AdvisorShares-MSOS website.
The MSOS overview video presented by fund manager, Dan Ahrens, on that link is well worth watching. He has several years of experience and knowledge in the cannabis industry and is also the author of a book, Amazon link:
The following tables shows the analysis incorporating all the stocks currently in the ETF and uses the holdings data from January 1, 2022 for comparisons. This first table lists them in order of highest to lowest Portfolio Weighting percentage.
As expected, the five Tier 1 US MSOs are the stocks with the highest weightings percentage. There is also a correlation between market cap and weightings.
As explained in the Best Cannabis Stocks Analysis, this analysis was designed to identify which stocks would benefit the most when funds flow into a sector (i.e. sector rotation), not just into individual stocks but also into ETFs. The metric identified as most relevant to sector rotation is the % of the company’s market cap held by the ETF. The ones with higher ownership % by the ETF will benefit disproportionately higher when funds flow into the sector. The analysis in this page was used to determine ETF ownership % of company market cap presented in the Cannabis ETF Analysis: Cannabis Stocks with highest % of Market Cap Owned by MSOS, MJ and YOLO ETFs page.
The other important metric is changes in number of shares held by the ETF over the last few months/quarters. Stocks where the share count increased are those that are favored by the fund managers as they rebalance their holdings. Also, any being sold, are those that are losing favor.
The top five and next five ranked by each criteria listed above have been highlighted in green. For the analysis in this blog, the focus has been on cannabis stocks that specifically derive bulk of revenues from one or more of the following: retail, production and/or technology. The ancillary business companies have been excluded from the analysis, and highlighted in grey. Some of them are good companies, and if they interest you, go ahead and do due diligence on them. But I’ve simplified the scope of this blog to focus on the more “pure” play cannabis companies listed publicly.
This second table lists the stocks in order of changes in number of shares held by the ETF over the last few months/quarters, starting January 1, 2022.
The table clearly highlights that several of the high revenue MSOs are being accumulated this year and are favored by the fund managers of this ETF. While this data point has not been used to award points in the Best Cannabis Stocks Analysis, it is a useful data point to see the trends in accumulation. If the trends continue, the % of market capital owned by the ETF should also increase.
For anyone interested, the following video titled Could Safe Banking Pass In 2022? Is well worth watching. It features an insightful interview with Dan and Shadd Dales of The Dales Report.
The following TradingView chart (click chart if interested) gives additional data and charts on this ETF:
This analysis and the tables included will be updated on a regular basis and the relative rankings are expected to change based on company market caps and changes in the ETF’s holdings. The ANALYSIS category of this blog has the other analyses incorporated into the Best Cannabis Stocks analysis. I also recommend reviewing the MJ ETF Analysis: Data Driven Analysis of Top Stocks Using ETF Ownership and Changes in Holdings page.
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Disclosure: I (username Adastra) am an investor not a trader. I am bullish on the Cannabis sector as a long-term investment (2025 and beyond), provided stocks/ETFs are carefully picked based on data-driven due diligence. Of the 15 stocks covered in the Best Cannabis Stocks analysis, I own only High Tide, which I am holding as a long-term investment. But my analysis indicates (without any guarantees) that there is a potential for impressive gains in investing in the stocks best ranked in the analysis, including WM Technology, Trulieve, Curaleaf and any other stocks that will have a dedicated page. I reserve the right to buy or sell at any time any of the stocks mentioned in this blog. I do not short stocks and never will short any stock in a company that makes the world a better place. I do not have insider knowledge of any company covered in this blog. All data used for analysis is from public sources. I have received (as of last update date of this page) ZERO funding for this blog from any of the companies featured in this blog.