The cannabis sector is lighting up in 2025 with fresh energy as Trump floats reclassifying marijuana, opening new doors for industry growth and investor optimism. Curaleaf’s (CURLF), stock has climbed more than 83% year-to-date (YTD), while Trulieve Cannabis (TCNNF), also rose by 52.66% YTD.
This surge in momentum is echoed on a global scale, with the medical cannabis market projected to grow at a compound annual rate of 22.5% from 2025 to 2035 as legalization broadens and demand for alternative therapies rises.
Riding this momentum, the AdvisorShares Pure US Cannabis ETF (MSOS) stands out as the best-performing cannabis ETF of 2025. It has posted a gain of over 30% so far this year and offered investors a powerful entry to America’s most dynamic cannabis companies.
Will MSOS keep its lead as the sector’s breakout success, or is more volatility on the horizon? Let’s dive into MSOS and see what it has to offer.
Overview of AdvisorShares Pure US Cannabis ETF (MSOS)
The AdvisorShares Pure US Cannabis ETF distinguishes itself with a single-minded, actively managed strategy concentrating exclusively on U.S. cannabis companies, with particular emphasis on multi-state operators. The selective approach is all about targeting American firms participating directly in cultivation, retail, technology, and ancillary services related to cannabis.
This keeps the portfolio focused and sidesteps the confusion of less accessible OTC-listed or foreign cannabis stocks. The result is simplified access paired with greater transparency and liquidity for its shares.
Originating from the AdvisorShares fund family, MSOS officially launched with an inception date of Sept. 1, 2020, and began trading just two days later. Since then, the fund has grown to manage $712.7 million in assets, reflecting both market interest and the expansive reach of its approach.
The ETF maintains a relatively concentrated portfolio with 26 total stocks, but what stands out is that the top 10 holdings collectively account for 142.08% of assets, reflecting both conviction and the use of swaps for regulatory-compliant exposure. The top positions include Curaleaf (22.63%), Green Thumb Industries (GTBIF) (21.61%), Trulieve Cannabis (20.95%), Verano Holdings (VRNOF) (7.72%), TerrAscend (TSNDF) (6.11%), Cresco Labs (CRLBF) (6.10%), Glass House Brands (GLASF) (5.61%), Jushi Holdings (JUSHF) (2.24%), Cannabist Company (CBSTF) (0.77%), and Village Farms International (VFF) (0.71%).
The fund is also quite transparent about costs, with a management fee set at 0.80%. When it comes to recent performance, MSOS has posted a return of +35.96% year-to-date, though a longer lens shows a 52-week shift of -26.42%, and the current price is marked at $5.15.
Meanwhile, MSOS remains very actively traded with its volume for the month soaring to 17,361,488, a 128% increase from last month’s 7,610,173. The fund is also options eligible, adding to its trading flexibility.
Forces Behind Cannabis Growth
The most consequential of these is the ongoing federal momentum for cannabis rescheduling, where the U.S. Department of Health and Human Services and the Drug Enforcement Administration are closely involved in shifting marijuana from Schedule I to Schedule III.
This policy movement is crucial, opening the way for lower taxes and streamlined banking, and driving record ETF activity as market participants take positions ahead of the potential change.
Within the sector, companies are taking measurable steps to strengthen their balance sheets and sharpen their strategies. In July, TerrAscend secured a $79 million non-dilutive debt financing package and renewed a $10 million share repurchase program, using available capital not just for survival, but for calculated expansion and ownership consolidation. Meanwhile, Cresco Labs began its planned exit from California operations that same month. This move is part of a broader sector trend where top businesses are pulling back from states with harsh market or regulatory headwinds, redirecting resources for better operational fit and efficiency.
Work on financial stability continues. Glass House Brands finished a preferred equity refinancing round this July, further reinforcing its balance sheet and enabling stable day-to-day operations in a landscape where access to funding can be a decisive factor. On the leadership front, Verano’s president, Darren Weiss, stepped down, a move that fits with larger sector patterns of organizational changes intended to keep companies flexible and aligned with new regulatory and market realities.
Expansion into new markets proceeds at a pace. The Cannabist Company, launched adult-use cannabis sales in Delaware, capturing newly legal demand and broadening its footprint beyond established regions. Trulieve also extended its retail reach, adding a medical cannabis dispensary in Oakland Park, Florida, marking another data point in the push for wider market access and consumer engagement.
Conclusion
All signs point to the cannabis sector finding firmer footing and gaining momentum, with policy shifts and smarter business moves leading the way. Given the ongoing regulatory push and smart decisions from key players, it looks like shares in this space, especially for those tracking top U.S. companies, are poised for further gains rather than sliding back. As long as the news keeps trending positive, more upside than downside seems likely from here.
