AdvisorShares Pure US Cannabis ETF (MSOS Quick QuoteMSOS - Free Report) is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and moved up 137.66% from its 52-week low price of $4.78/share.

Are more gains in store for this ETF? Let us take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed.

MSOS in Focus

The fund employs an active strategy, seeking to achieve its investment objective by investing at least 80% of its net assets in securities of companies that derive at least 50% of their net revenues from the marijuana and hemp business in the United States. The product charges 83 bps in annual fees (see: all Marijuana ETFs).

Why the Move?

The recent move by the U.S. Justice Department to downgrade marijuana use to a less severe federal offense is a boost for marijuana stocks. The justice department recommended cannabisbe reclassified as a schedule III drug, indicating a moderate to low risk of physical and psychological dependence. Cannabis firms would stand to gain significantly as they would no longer fall under the purview of Section 280E of the U.S. federal tax code, presenting one of the most notable advantages.

More Gains Ahead?

MSOS might continue its strong performance in the near term, with a positive weighted alpha of 63.85, which gives cues of a further rally.