What are ETFs and how do they work?

Exchange-traded funds (ETFs) are investment funds traded on stock exchanges, holding assets like stocks, bonds or commodities. They track indices or specific sectors, providing diversified exposure in a single trade. Unlike mutual funds, ETFs offer intraday liquidity and lower costs. Investors buy shares representing a proportional claim on the fund's assets. ETFs vary widely in strategy: passive index trackers, active managed funds, or thematic exposures to niches like digital assets or cannabis. Their structure combines transparency of individual holdings with the convenience of a single security.

How do ETF fees impact my returns?

ETF fees, measured by expense ratios, are annual costs deducted from fund assets, reducing net returns. Fund A's 0.25% expense ratio versus Fund B's 0.51% means you pay £2.50 per £1,000 for Fund A versus £5.10 for Fund B. Over ten years, this 0.26 percentage point difference compounds: £1,000 invested in Fund A yields about £25 more net return than in Fund B before other costs. Fees matter because they directly erode capital, especially for long-held positions. However, higher fees should be justified by potentially better management or unique exposure that adds value.

What is the difference between net assets and market cap for ETFs?

Net assets refer to the total value of the fund's holdings minus liabilities, indicating fund size and stability. Market capitalisation for ETFs is calculated similarly to stocks (price multiplied by shares outstanding). Fund A holds $1.2 billion net assets, suggesting substantial institutional support and liquidity for trading. Fund B's $36 million indicates a smaller, niche fund. While related, net assets provide a clearer picture of operational capacity and potential for tracking error. Larger funds generally experience narrower bid-ask spreads, reducing implicit trading costs for investors.

How do the investment strategies of these two ETFs differ?

Fund A tracks Bitcoin, a digital asset with no underlying cash flows, valuations or dividends, exposing investors to crypto market volatility directly. Fund B focuses on cannabis sector equities, actively selecting stocks within that industry. These represent fundamentally different approaches: Fund A provides commodity-like exposure through a digital instrument, while Fund B offers equity-based thematic investment in a specific regulatory sector. The risk-return profiles diverge significantly - cryptocurrency exhibits extreme volatility while cannabis equities respond to sector cycles, regulation and corporate fundamentals.

What does MSOS's 22.48% weighting in Fund B mean for investors?

MSOS's 22.48% concentration in Fund B significantly exceeds typical holdings weights. This single stock represents nearly a quarter of the fund's assets, making performance heavily dependent on one company's fortunes. While Fund A's holdings are unavailable, its structure likely mirrors Bitcoin movements directly. High concentration increases specific risk: if MSOS declines sharply, the fund suffers regardless of broader cannabis sector trends. Diversified ETFs rarely allocate above 5-10% to single holdings. This weighting suggests Fund B targets very specific cannabis-related opportunities rather than broad sector diversification, increasing potential volatility.

Do either of these ETFs pay dividends?

Both Fund A and Fund B report 0.00% dividend yields, meaning they distribute no regular income to shareholders. This is typical for growth-oriented or asset-based funds. Fund A holds Bitcoin, which generates no income by design. Fund B's cannabis sector holdings currently reinvest profits rather than paying dividends, reflecting the industry's growth stage. Without distributions, total returns depend entirely on capital appreciation or depreciation. Investors seeking regular income should consider dividend-focused funds instead, as these ETFs offer pure price exposure without cash payments.

Which type of investing goal do these funds align with?

Fund A suits investors seeking digital asset exposure as an alternative store of value or speculative position, with its 0.25% fee and $1.2 billion net assets supporting institutional participation. Fund B targets thematic cannabis sector investors, offering active stock selection within that niche despite higher 0.51% fees and $36 million assets indicating limited liquidity. Neither provides income, but Fund A's short track record since January 2024 contrasts with Fund B's operational history since April 2019. The choice depends on whether investors prioritise cryptocurrency adoption trends or cannabis market developments.

How do these funds differ in terms of inception dates and track records?

Fund A launched on 4 January 2024, providing less than two years of operational history. This limited track record means investors have minimal historical data to evaluate performance consistency. Fund B, established on 17 April 2019, offers over six years of market data through different economic cycles and regulatory developments. Longer inception dates generally provide better statistical significance for performance assessment. However, Fund B's cannabis sector faced unique regulatory hurdles, meaning its track record may not fully represent future conditions either. Newer funds might reflect updated methodologies.

What role does sector exposure play in these ETFs?

Sector exposure determines how funds respond to economic conditions. Fund A's digital assets category correlates loosely with broader markets, often acting as a risk asset. Fund B's cannabis sector is heavily influenced by regulatory changes, consumer trends and corporate execution within that specific industry. With cannabis still facing legal restrictions in many jurisdictions, Fund B's performance depends on sector-specific catalysts rather than general economic growth. This targeted exposure increases potential for outsized returns in favourable conditions but also amplifies downside during adverse regulatory developments compared to traditional sectors.

Why is there no shared top-10 holdings between these ETFs?

Fund A and Fund B have zero overlapping top-10 holdings because they target entirely different asset classes: cryptocurrency versus cannabis equities. Fund A's holdings are not available as it tracks Bitcoin, while Fund B lists MSOS (22.48%), TRLV (16.19%), VFF (10.40%), SNDL (3.00%), and TLRY (1.20%) among its top holdings. This complete absence of overlap confirms fundamentally distinct investment purposes. Such divergence ensures these ETFs serve different portfolio roles, preventing unintended correlation and maintaining true diversification benefits when combined in a broader portfolio context.

What should beginners consider when evaluating fund size and liquidity?

Fund A's $1.2 billion net assets versus Fund B's $36 million creates significant liquidity differences. Larger funds typically offer narrower bid-ask spreads and more efficient trading, reducing implicit costs. Fund B's smaller size may lead to wider spreads and greater price impact for substantial trades. Beginners should examine trading volumes, not just net assets, to assess daily liquidity. While $36 million isn't prohibitively small, it limits institutional participation. Fund A's scale supports broader investor access but comes with the newer fund's operational history caveat.

Why does the index tracking information not being available affect investors?

Neither Fund A nor Fund B has specified index tracking details available, limiting transparency into their exact methodologies. Index tracking clarifies how funds replicate exposures - directly, via derivatives, or synthetically - and the benchmark used for performance evaluation. Without this information, investors cannot easily assess tracking accuracy or potential deviations from expected outcomes. This opacity affects comparability: Fund A's Bitcoin exposure likely mirrors spot prices, while Fund B's active management suggests discretion beyond any index. Educational disclaimer: this content is for information only, not investment advice.

HODL vs YOLO

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare Vaneck Bitcoin Etf and Advisorshares Pure Cannabis Etf. Review fees, holdings, dividends and market tracking for each fund. Note Vaneck Bitcoin Etf index tracked is not available. Educational content, not financial advice.

Compare Vaneck Bitcoin Etf and Advisorshares Pure Cannabis Etf. Review fees, holdings, dividends and market tracking for each fund. Note Vaneck Bitcoin Etf index tracked is not available. Educational ...

Fund Snapshot

Key Fund Metrics

HODL

Metric

YOLO

0.25%

Expense Ratio

0.51%

0.00%

Dividend Yield

0.00%

$1.19B

Net Assets

$35.81M

1

Holdings

20

Jan 4, 2024

Inception Date

Apr 17, 2019

–

Index Tracked

–

Digital Assets

Fund Category

Miscellaneous Sector

HODL costs about $26.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

Discover More Comparisons

HODL vs IBIT

Compare HODL and IBIT Bitcoin ETFs. Both cost 0.25% with 0% dividends. HODL holds $1.2bn versus IBIT's $63.7bn. Holdings and index details are not available.

MSOS vs YOLO

Compare Advisorshares Pure US Cannabis ETF (MSOS) and Pure Cannabis ETF (YOLO). Review 0.97% vs 0.51% expense ratios, shared TRLV holding, and tracking details.

Investment Analysis

HODL

Pros

VanEck provides established issuer reputation for institutional investors seeking exposure.
The $1.2 billion net assets indicate substantial fund size and liquidity.
A 0.25% expense ratio is competitive for a digital asset vehicle.

Considerations

No dividend yield limits total return to capital appreciation.
The January 2024 inception means a short operational track record.
Unavailable top holdings details obscure precise portfolio transparency.

YOLO

Pros

Since April 2019, the fund has a longer operational history.
Direct equity holdings allow for active management and stock selection.
Pure cannabis sector exposure suits investors with a thematic view.

Considerations

MSOS comprises 22.48% of assets, indicating significant single-stock concentration.
A 0.51% expense ratio is relatively high for a niche sector fund.
With $36 million in net assets, the fund faces liquidity constraints.

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About HODL and YOLO

HODL (HODL)

HODL (ticker HODL) is commonly used for listings that provide exposure to digital assets or companies serving the cryptocurrency ecosystem. Public information and structures vary: some HODL tickers represent funds that hold crypto directly, others are equity vehicles or business operating companies tied to blockchain services. Investors should check whether the vehicle holds underlying coins, invests in related equities, or tracks an index, and review fees, custody arrangements and transparency of holdings. Digital-asset exposure typically means higher price volatility, evolving regulatory oversight and potential liquidity constraints. Important considerations include market capitalisation, trading volume, and the custodian’s security practices. Past performance is not a reliable guide, and values can fall as well as rise. This overview is educational only and not personal investment advice — consult a regulated financial adviser to determine suitability based on your circumstances.

YOLO (YOLO)

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HODL vs YOLO

Fund Snapshot

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Investment Analysis

HODL

Pros

Considerations

YOLO

Pros

Considerations

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About HODL and YOLO

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Bitcoin ETFs

Buy HODL or YOLO in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

Frequently asked questions

Fund Snapshot

About HODL and YOLO

Which Baskets Do They Appear In?

Bitcoin ETFs

Which Baskets Do They Appear In?

Bitcoin ETFs

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