AdvisorShares Announces NAV Restatement for the AdvisorShares MSOS Daily Leveraged ETF (MSOX)
AdvisorShares Announces NAV Restatement for the AdvisorShares MSOS Daily Leveraged ETF (MSOX) |
| [06-March-2026] |
Restatement Reflects Correction of Income Accrual Accounting for Total Return Swaps BETHESDA, Md., March 6, 2026 /PRNewswire/ -- AdvisorShares announced that the previously disclosed net asset value (NAV) per share of the AdvisorShares MSOS Daily Leveraged ETF (NYSE Arca: MSOX) has been restated due to the Fund Administrator not correctly accounting for income accruals for some of the total return swaps held from December 22, 2025, through February 2, 2026.
Effective after market close on March 6, 2026, the NAV has been restated as follows:
Upon being notified of this error, AdvisorShares acted promptly to direct the Fund Administrator to investigate, quantify, and correct the error. The Fund Administrator has implemented enhanced controls and review procedures for income accrual accounting on total return swaps. The Fund's independent auditors have been notified. AdvisorShares will continue to monitor the Fund Administrator's remediation efforts and will provide further updates as appropriate. Shareholders with questions regarding the restatement are encouraged to contact AdvisorShares Investor Relations at 1-877-843-3831 or visit www.advisorshares.com. MSOX has a daily leveraged investment objective and is designed for experienced and sophisticated traders only. While the investment objective is still designed to target approximately two times the exposure of MSOS on a daily basis, MSOX will typically be in range above or below the two times leverage target. This ETF was built to provide more liquidity to these companies in this growing industry, but it's important for investors to remember this ETF is designed only for experienced and sophisticated active day trading investors. Please read the MSOX prospectus for all the risks associated with this ETF. About AdvisorShares For financial professionals and investors requesting more information, call 1-877-843-3831 or visit www.advisorshares.com. Follow @AdvisorShares on X (Twitter) and LinkedIn for more insights. Forward-Looking Statements and Important Disclosures This press release does not constitute an admission of liability or wrongdoing by AdvisorShares Investments, LLC, the AdvisorShares MSOS Daily Leveraged ETF, or any of their respective officers, directors, employees, or agents. AdvisorShares expressly disclaims any liability arising from or related to the Fund Administrator's accounting error. Responsibility for the accurate calculation and reporting of the Fund's NAV is contractually vested in the Fund Administrator, and any losses, claims, damages, or expenses arising from this error are solely the responsibility of the Fund Administrator. Before investing you should carefully consider the Fund's investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained by visiting www.advisorshares.com. Please read the prospectus carefully before you invest. Foreside Fund Services, LLC, distributor. The Fund is not suitable for all investors. The Fund is designed to be utilized only by knowledgeable investors who understand the potential consequences of seeking daily 2x investment results, understand the risks associated with the use of leverage, and are willing to monitor their portfolios frequently. The Fund is not intended to be used by, and is not appropriate for, investors who do not intend to actively monitor and manage their portfolios. An investor could lose the full principal value of their investment within a single day. The Fund is an actively managed ETF that seeks to provide investment results that are approximately two times (2x) the daily total return, before fees and expenses, of the US Cannabis ETF, an affiliated ETF, by entering into one or more swaps agreements on the US Cannabis ETF. The Fund does not seek to achieve its stated investment objective for a period of time different than a single day. A single day is measured from the time the Fund calculates its net asset value ("NAV") to the time of the Fund's next NAV calculation. The Fund will enter into one or more swap agreements intended to produce economically-leveraged investment results relative to the returns of the US Cannabis ETF. The Fund may use a combination of swaps on the US Cannabis ETF and swaps on various investment vehicles that are designed to track the performance of the US Cannabis ETF. The Fund expects that cash balances in connection with the use of such financial instruments ("Collateral") will typically be held in money market instruments or other cash equivalents. The Fund is subject to a number of risks that may affect the value of its shares. This section provides additional information about the Fund's principal risks. The degree to which a risk applies to the Fund varies according to its investment allocation. Each investor should review the complete description of the principal risks before investing in the Fund. As with investing in other securities whose prices increase and decrease in market value, you may lose money by investing in the Fund. Cannabis-Related Company Risk: Cannabis-related companies are subject to various laws and regulations that may differ at the state/local and federal level. These laws and regulations may (i) significantly affect a cannabis-related company's ability to secure financing, (ii) impact the market for marijuana industry sales and services, and (iii) set limitations on marijuana use, production, transportation, and storage. Cannabis-related companies may also be required to secure permits and authorizations from government agencies to cultivate or research marijuana. In addition, cannabis-related companies are subject to the risks associated with the greater agricultural industry, including changes to or trends that affect commodity prices, labor costs, weather conditions, and laws and regulations related to environmental protection, health and safety. Cannabis-related companies may also be subject to risks associated with the biotechnology and pharmaceutical industries. These risks include increased government regulation, the use and enforcement of intellectual property rights and patents, technological change and obsolescence, product liability lawsuits, and the risk that research and development may not necessarily lead to commercially successful products. Counterparty Risk – The Fund may invest in financial instruments involving counterparties that attempt to gain exposure to a particular group of securities, index or asset class without actually purchasing those securities or investments, or to hedge a position. The Fund's use of such financial instruments, including swap agreements, involves risks that are different from those associated with ordinary portfolio securities transactions. For example, if a swap agreement counterparty defaults on its payment obligations to the Fund, this default will cause the value of your investment in the Fund to decrease. Daily Leverage Risk – Leverage increases the risk of a total loss of an investor's investment, may increase the volatility of the Fund, and may magnify any differences between the performance of the Fund and the US Cannabis ETF. Because the Fund includes a multiplier of approximately two times (2x) the US Cannabis ETF, a single day movement in the US Cannabis ETF approaching -50% at any point in the day could result in the total loss of an investor's investment, even if the US Cannabis ETF subsequently moves in an opposite direction, eliminating all or a portion of the earlier movement. This would be the case with any such single day movements in the US Cannabis ETF, even if the US Cannabis ETF maintains a level greater than zero at all times. Derivatives Risk – Derivatives may be riskier than other types of investments because they may be more sensitive to changes in economic or market conditions than other types of investments and could result in losses that significantly exceed the Fund's original investment. A derivative is a financial contract the value of which depends on, or is derived from, the value of a financial asset (such as stock, bond or currency), a physical asset (such as gold), or a market index (such as the S&P 500 Index). Many derivatives, including the swaps in which the Fund will invest, create leverage thereby causing the Fund to be more volatile than it would be if it had not invested in derivatives. Investing in swaps also will expose the Fund to counterparty risk (the risk that the derivative counterparty will not fulfill its contractual obligations) and to credit risk (the risk that a counterparty is or is perceived to be unwilling or unable to make timely payments or otherwise meet its contractual obligations). Shares are bought and sold at market price not net asset value (NAV) and are not individually redeemed from the Fund. Market price returns are based on the midpoint of the bid/ask spread at 4:00 pm Eastern Time (when NAV is normally determined) and do not represent the return you would receive if you traded at other times. DEFINITIONS:
SOURCE AdvisorShares | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Company Codes: NYSEArca:MSOX |
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