The AdvisorShares Pure U.S. Cannabis ETF (NYSE:MSOS), which invests in U.S. marijuana and hemp stocks, is seeing a surge in Momentum, according to Benzinga’s Edge Stock Rankings, as Washington starts warming up to the industry with major policy shifts in recent months.

Cannabis ETF Sees Momentum Surge

The Momentum score in Benzinga’s Edge Rankings indicates strength in a stock relative to others, and is assessed based on price movements and volatility across multiple time frames, before being ranked as a percentile against others.

The AdvisorShares Pure U.S. Cannabis ETF saw its Momentum score jump from 24.75 to 88.95 in just over a week, fueled by the Trump administration's move to reclassify marijuana and a wave of renewed optimism following Tilray Brands Inc.'s (NASDAQ:TLRY) strong earnings performance this week.

The reclassification is expected to have a major impact on the industry’s profitability, allowing companies like Tilray to deduct standard business expenses, unlocking significant cash flows.

The company also unveiled Tilray Medical USA, its new medical subsidiary in response to the government’s reclassification, as it looks to tap into the new “research-oriented national medical cannabis industry.”

As a result, several of the fund’s constituents have rallied in the new year, as it sports a favorable price trend in the short, medium and long terms. Click here for deeper insights into the fund, its holdings and more.

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