AdvisorShares Pure US Cannabis ETF

MSOS

Market cap $776M

The cannabis sector is one which many may have rightly described as a bubble seven or eight years ago.

President Trump's executive order to reschedule marijuana is one of the many things cannabis investors will be watching in 2026. AdvisorShares portfolio manager Dan Ahrens, who manages the firm's Pure US Cannabis ETF, joins Asking for a Trend to explain where the cannabis industry stands right now.

The AdvisorShares Pure US Cannabis ETF has spent the last month on a rollercoaster.

Santa Rally fizzled as markets stumbled, but ETFs tied to cannabis (MSOS, WEED), metals (SLV, PPLT) and space (UFO) surged.

Silver, gold & platinum ETFs (SLVP, SILJ, GOEX) crushed it in 2025, while MSOS, MEME & VIXY lagged amid policy, hype & calm markets.

Stocks took a surprise tumble after the White House moved to reclassify marijuana as a less dangerous drug.

The cannabis industry continues evolving into a bigger and more regulated global market. Legalization trends are expanding across the United States and international regions. This growth fuels long-term opportunities for marijuana stock investors and those looking to get invested in the industry. Cannabis stocks benefit from increasing consumer demand and acceptance. Medical cannabis adoption supports consistent revenue and defensive market positioning.

The cannabis industry is entering another critical growth phase, positioning 2026 as a potentially pivotal year. Particularly for long-term investors looking to make a profit with marijuana stocks. After years of regulatory uncertainty, capital constraints, and volatile price action, relief is being shown. The legal cannabis market is showing clear signs of structural improvement driven by policy reform, consolidation, and expanding global demand.

In 2026, the impact of cannabis rescheduling is expected to be far more visible in marijuana stock performance. Much more than in the initial announcement of cannabis becoming a Class 3 substance. While 2025 seemed to be a transition year, 2026 could mark another pivot point. Specifically, one where improved business operations begin to consistently translate into stronger equity valuations across the sector. Investor sentiment may also shift meaningfully.

Donald Trump's recent executive order moving cannabis off Schedule I marks a pivotal moment for the U.S. cannabis sector. While the order does not legalize marijuana at the federal level, rescheduling fundamentally changes how the plant is viewed under federal law. With meaningful implications for operators, investors, and public markets. For the cannabis industry, the most immediate impact is financial. A shift to Schedule III would effectively eradicate IRS Section 280E. This is a law that currently prevents cannabis businesses from deducting standard operating expenses.