US Cannabis ETF MSOS Underperforms Compared to Canadian Peers

MSOS ETF underperforms compared to Canadian cannabis peers. As a solution, MSOS purchases equities from the OTC markets through swapping, but US operators cannot list on US exchanges and are listed on Canadian OTC exchanges. This has led to underperformance of MSOS compared to Canadian cannabis peers.

The MSOS ETF has been underperforming compared to its Canadian cannabis peers, prompting the company to explore alternative strategies. As a solution, MSOS has begun purchasing equities from the OTC markets through swapping. However, this strategy has its limitations, as US operators cannot list on US exchanges and are instead listed on Canadian OTC exchanges, leading to the underperformance of MSOS [1].

On Wednesday, retail chatter around IM Cannabis Corp. surged after the company announced its request for voluntary delisting from the Canadian Securities Exchange (CSE). Shares of IM Cannabis surged 45.7% to close at $2.71 on Wednesday, before slipping slightly by 0.37% to $2.7 in after-hours trading [1]. This demonstrates the potential volatility and interest in the cannabis sector, which MSOS is seeking to capitalize on.

MSOS's underperformance can be attributed to its listing on Canadian OTC exchanges, which have lower liquidity and less market visibility compared to US exchanges. This has made it difficult for MSOS to attract investors and maintain a competitive edge in the market. By purchasing equities from the OTC markets, MSOS is attempting to increase its liquidity and improve its market presence.

However, the effectiveness of this strategy remains to be seen. The high costs and administrative demands associated with regulatory approvals for dual listings, as identified by IM Cannabis, are likely to be a significant challenge for MSOS [1]. Moreover, the company's focus on NASDAQ trading has shown promise in terms of liquidity and shareholder value, but MSOS must navigate the complexities of the OTC market to achieve similar results.

In the meantime, income-hungry investors are turning to innovative ETF strategies to secure higher yields. Exchange-traded funds (ETFs) with dividend yields of 12% or higher are gaining traction, offering a compelling way to boost monthly income [2]. While these ETFs sacrifice some growth potential for generous payouts, they provide a viable option for investors seeking consistent income in a volatile market.

In conclusion, MSOS's underperformance is a result of its listing on Canadian OTC exchanges, and its attempt to purchase equities from the OTC markets through swapping is a step towards addressing this issue. However, the success of this strategy remains uncertain, and MSOS must navigate the complexities of the OTC market to achieve its goals. Meanwhile, income-hungry investors are exploring innovative ETF strategies to secure higher yields.

References:
[1] https://in.investing.com/news/stock-market-news/retail-buzz-surges-as-im-cannabis-plans-canadian-exchange-delisting-investors-hope-for-near-100-rally-4852162
[2] https://www.barchart.com/story/news/32964849/3-etfs-with-dividend-yields-of-12-or-higher-for-your-income-portfolio