(YOLO) AdvisorShares Pure Cannabis - Ratings and Ratios

AdvisorShares Pure Cannabis ETF (NYSE ARCA: YOLO) is an actively managed exchange-traded fund designed to capitalize on the growth of the cannabis industry. The fund invests at least 80% of its net assets in companies that generate a significant portion of their revenue from marijuana and hemp-related businesses. This includes firms involved in cannabis cultivation, processing, distribution, and retail, as well as those providing ancillary products and services to the industry. The ETF may also utilize derivatives to enhance returns or hedge against potential losses, aligning with its objective of providing exposure to the cannabis sector. As a non-diversified fund, YOLO can invest a larger portion of its assets in a smaller number of companies, which may amplify both potential returns and risks.

The fund is listed on the NYSE ARCA under the ticker symbol YOLO, classified under the Miscellaneous Sector ETF category. With an average daily trading volume of 57,197 shares over the past 20 days, YOLO exhibits moderate liquidity. As of the latest data, the ETF is priced at $2.01, with key moving averages indicating current market sentiment. The 20-day Simple Moving Average (SMA) stands at $2.16, the 50-day SMA at $2.28, and the 200-day SMA at $2.96. These metrics suggest that the funds price is currently below its short-term and long-term averages, which may indicate a period of consolidation or downtrend. The Average True Range (ATR) of $0.07 reflects relatively low volatility in recent trading sessions.

From a fundamental perspective, the ETF has assets under management (AUM) of $28.59 million, which is relatively modest compared to larger sector-specific funds. This smaller AUM may result in higher expense ratios and potentially greater sensitivity to market movements. However, it also allows for more agile investment strategies in a rapidly evolving industry.

3-Month Forecast: Based on the provided data, YOLO is likely to face headwinds in the near term, as indicated by its price trading below key moving averages. The 20-day SMA of $2.16 and 50-day SMA of $2.28 suggest that the fund may experience continued pressure unless broader market sentiment improves. However, the low ATR of $0.07 indicates that volatility is expected to remain subdued, potentially offering a window for strategic entry or rebalancing. Investors should monitor the funds performance relative to its moving averages and overall market conditions, as these will be critical drivers of its short-term trajectory.