AdvisorShares Pure Cannabis ETF (YOLO US) - Portfolio Construction Methodology

Core Viewpoint - The AdvisorShares Pure Cannabis ETF (YOLO US) aims for long-term capital appreciation by focusing on cannabis-related equities and derivatives while adhering to cannabis laws [1] Investment Strategy - The ETF invests at least 80% of net assets in issuers that derive 50% or more of their revenue from marijuana or hemp businesses, including derivatives with similar economic exposure [1] - The portfolio primarily includes mid- and small-cap common and preferred stocks, an affiliated US-focused cannabis ETF, and total return swaps referencing cannabis equities [1] - The investable universe encompasses sectors such as agriculture, biotechnology, pharmaceuticals, real estate, retail, and financial services, along with firms expected to generate future cannabis-related revenues or DEA-registered companies conducting lawful cannabinoid research [1] Portfolio Construction - The portfolio is non-diversified and concentrates at least 25% in the pharmaceuticals, biotechnology, and life sciences industry group [1] - Selection is driven by research tools and a bottom-up assessment of market position, growth potential, and valuation, while selling decisions are based on relative opportunity or position-size limits [1]