UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-22110

AdvisorShares Trust

(Exact name of registrant as specified in charter)

2 Bethesda Metro Center, Suite 1330
Bethesda, Maryland 20814

(Address of principal executive offices) (Zip code)

Dan Ahrens
2 Bethesda Metro Center, Suite 1330
Bethesda, Maryland 20814

(Name and address of agent for service)

Registrant's telephone number, including area code: 1-877-843-3831

Date of fiscal year end: June 30

Date of reporting period: December 31, 2012

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Reports to Stockholders.

ADVISORSHARES TRUST

2 Bethesda Metro Center
Suite 1330
Bethesda, Maryland 20814
www.advisorshares.com
877.THE.ETF1

Semi-Annual Report

December 31, 2012

TABLE OF CONTENTS

Letter from the CEO of AdvisorShares Investments, LLC		1
Shareholder Expense Examples		2
Schedules of Investments
Accuvest Global Long Short ETF (AGLS)		5
Accuvest Global Opportunities ETF (ACCU)		7
Cambria Global Tactical ETF (GTAA)		8
Global Alpha & Beta ETF (RRGR)		11
Global Echo ETF (GIVE)		14
Madrona Domestic ETF (FWDD)		20
Madrona Global Bond ETF (FWDB)		40
Madrona International ETF (FWDI)		42
Meidell Tactical Advantage ETF (MATH)		54
Peritus High Yield ETF (HYLD)		55
Pring Turner Business Cycle ETF (DBIZ)		59
QAM Equity Hedge ETF (QEH)		63
Ranger Equity Bear ETF (HDGE)		67
Rockledge SectorSAM ETF (SSAM)		71
STAR Global Buy-Write ETF (VEGA)		72
TrimTabs Float Shrink ETF (TTFS)		75
WCM/BNY Mellon Focused Growth ADR ETF (AADR)		82
Statements of Assets and Liabilities.		86
Statements of Operations		90
Statements of Changes in Net Assets		94
Statements of Cash Flows		100
Financial Highlights.		102
Notes to Financial Statements		112
Board of Trustees and Officers		133
Board Review of Investment Advisory and Sub-Advisory Agreements		134
Supplemental Information		138

ADVISORSHARES TRUST
Letter from the CEO of AdvisorShares Investments, LLC

December 31, 2012

Thank you for being a shareholder in AdvisorShares ETFs. We are pleased to provide you with this semi-annual report for the period ending December 31, 2012. Thanks to your support, we have been able to greatly increase the actively managed investment strategies we can offer you. From December 31, 2011 through December 31, 2012, we have grown from 11 ETFs to 17 ETFs, and our total assets under management have increased from approximately $420,000,000 to approximately $620,000,000. In this same period, the number of Active ETFs across all sponsors increased from 40 ETFs to 55 ETFs, and total assets under management doubled to approximately $10,000,000,000.

We are looking forward to seeking out new quality investment managers that provide transparency, intra-day liquidity, and better overall operating efficiency. In addition to reading this report, we encourage you to visit www.advisorshares.com to learn more about all the actively managed ETFs currently offered by AdvisorShares and others that are launching soon. There you will find detailed information on each investment strategy along with manager commentary from each ETF’s portfolio management team.

We appreciate your support and use of our ETFs and we hope that you find them helpful to your investment goals.

Sincerely,

Noah Hamman
CEO, AdvisorShares Investments

An investment in the Funds is subject to risk, including the possible loss of principal amount invested. The risks associated with each Fund include the risks associated with the underlying ETFs, which can result in higher volatility, and are detailed in each Fund’s prospectus and on each Fund's webpage.

The views in this report were those of the Fund’s CEO as of December 31, 2012 and may not reflect his views on the date that this report is first published or anytime thereafter. These views are intended to assist shareholders in understanding their investments and do not constitute investment advice.

1

ADVISORSHARES TRUST

Shareholder Expense Examples

As a shareholder of the Fund, you incur transaction cost and ongoing costs, including management fees and other Fund expenses. The following example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds. The examples are based on an initial investment of $1,000 invested at the beginning of the period and held for the period ended December 31, 2011.

Actual Expenses

The first line under each Fund in the table below provides information about actual account values and actual expenses. You may use the information, together with the amount you invested, to estimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid” to estimate the expenses attributable to your account during this period.

Hypothetical Example for Comparison Purposes

The second line under each Fund in the table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses for the period. You may use this information to compare the ongoing costs of investing in the Funds and other ETF funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the hypothetical example is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.

In addition, if these transactional costs were included, your costs would have been higher.

Fund Name	Beginning Account Value		Ending Account Value 12/31/2012		Annualized Expense Ratio for the Period			Expenses Paid
Accuvest Global Long Short ETF
Actual	$	1,000.00	$	1,060.40		1.50	%	$	7.79
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,017.64		1.50	%	$	7.63
Accuvest Global Opportunities ETF
Actual	$	1,000.00	$	1,174.00		1.25	%	$	6.85
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,018.90		1.25	%	$	6.36
Cambria Global Tactical ETF
Actual	$	1,000.00	$	1,055.80		1.07	%	$	5.54
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,019.81		1.07	%	$	5.45
Global Alpha & Beta ETF(1)
Actual	$	1,000.00	$	1,049.00		1.25	%	$	6.10
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,017.88		1.25	%	$	6.01

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ADVISORSHARES TRUST

Shareholder Expense Examples (continued)

Fund Name	Beginning Account Value		Ending Account Value 12/31/2012		Annualized Expense Ratio for the Period			Expenses Paid
Global Echo ETF
Actual	$	1,000.00	$	1,016.00		1.50	%	$	7.62
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,017.64		1.50	%	$	7.63
Madrona Domestic ETF
Actual	$	1,000.00	$	1,096.70		1.25	%	$	6.61
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,018.90		1.25	%	$	6.36
Madrona Global Bond ETF
Actual	$	1,000.00	$	1,044.40		0.95	%	$	4.90
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,020.42		0.95	%	$	4.84
Madrona International ETF
Actual	$	1,000.00	$	1,154.80		1.25	%	$	6.79
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,018.90		1.25	%	$	6.36
Meidell Tactical Advantage ETF
Actual	$	1,000.00	$	1,038.40		1.35	%	$	6.94
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,018.40		1.35	%	$	6.87
Peritus High Yield ETF
Actual	$	1,000.00	$	1,073.20		1.34	%	$	7.00
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,018.45		1.34	%	$	6.82
Pring Turner Business Cycle ETF(2)
Actual	$	1,000.00	$	996.40		1.49	%	$	0.53
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,001.25		1.49	%	$	0.53
QAM Equity Hedge ETF(3)
Actual	$	1,000.00	$	1,031.50		1.50	%	$	6.09
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,014.00		1.50	%	$	6.04
Ranger Equity Bear ETF
Actual	$	1,000.00	$	785.30		1.59	%	$	7.15
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,017.19		1.59	%	$	8.08
Rockledge SectorSAM ETF(3)
Actual	$	1,000.00	$	999.90		1.50	%	$	7.56
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,017.64		1.50	%	$	7.63

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ADVISORSHARES TRUST

Shareholder Expense Examples (continued)

Fund Name	Beginning Account Value		Ending Account Value 12/31/2012		Annualized Expense Ratio for the Period			Expenses Paid
STAR Global Buy-Write ETF(4)
Actual	$	1,000.00	$	993.90		1.85	%	$	5.31
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,009.06		1.85	%	$	5.35
Trimtabs Float Shrink ETF
Actual	$	1,000.00	$	1,039.40		0.99	%	$	5.09
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,020.21		0.99	%	$	5.04
WCM/BNY Mellon Focused Growth ADR ETF
Actual	$	1,000.00	$	1,089.30		1.25	%	$	6.58
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,018.90		1.25	%	$	6.36

* Expense ratios reflect expense caps through the period ended December 31, 2012.

(1) Fund commenced operations on July 10, 2012. Expenses are calculated using the Fund's annualized expense ratio, multiplied by the ending value for the period, multiplied by 174/365 (to reflect commencement of operation).

(2) Fund commenced operations on December 18, 2012. Expenses are calculated using the Fund's annualized expense ratio, multiplied by the ending value for the period, multiplied by 13/365 (to reflect commencement of operation).

(3) Fund commenced operations on August 7, 2012. Expenses are calculated using the Fund's annualized expense ratio, multiplied by the ending value for the period, multiplied by 146/365 (to reflect commencement of operation).

(4) Fund commenced operations on September 17, 2012. Expenses are calculated using the Fund's annualized expense ratio, multiplied by the ending value for the period, multiplied by 105/365 (to reflect commencement of operation).

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ADVISORSHARES TRUST
ACCUVEST GLOBAL LONG SHORT ETF
Schedule of Investments

December 31, 2012 (Unaudited)

Investments	Shares		Value
EXCHANGE TRADED FUNDS — 99.6%
Equity Fund — 99.6%
Guggenheim China Small Cap Index ETF		89,719	$	2,152,359
iShares MSCI Austria Investable Market Index Fund		196,710		3,578,155
iShares MSCI China Index Fund(a)		75,957		3,686,953
iShares MSCI Germany Index Fund(a)		76,339		1,887,100
iShares MSCI Hong Kong Index Fund		55,355		1,074,994
iShares MSCI South Africa Index Fund(a)		51,527		3,688,303
iShares MSCI South Korea Index Fund		21,550		1,365,408
iShares MSCI Thailand Investable Market Index Fund(a)		24,518		2,022,490
iShares MSCI Turkey Investable Market Index Fund(a)		84,941		5,672,360
iShares S&P India Nifty 50 Index Fund		114,227		2,845,394
Total Exchange Traded Funds (Cost $25,468,535)				27,973,516
MONEY MARKET FUND — 8.5%
Dreyfus Cash Management – Investor Class (Cost $2,383,420)		2,383,420		2,383,420
Total Investments Before Securities Sold, Not Yet Purchased (Cost $27,851,955)				30,356,936
Securities Sold, Not Yet Purchased
EXCHANGE TRADED FUNDS — (51.4)%
Equity Fund
iShares MSCI Brazil Index Fund		42,022		(2,355,753	)
iShares MSCI Canada Index Fund		54,515		(1,548,226	)
iShares MSCI Chile Investable Market Index Fund		45,947		(2,905,688	)
iShares MSCI Italy Index Fund		149,381		(2,009,175	)
iShares MSCI Malaysia Index Fund		119,276		(1,804,646	)
iShares MSCI Netherlands Investable Market Index Fund		28,596		(586,504	)
iShares MSCI Russia Capped Index Fund		28,596		(676,296	)
iShares MSCI Taiwan Index Fund		113,816		(1,550,174	)
iShares Russell 2000 Index Fund		11,770		(992,093	)
Total Securities Sold, Not Yet Purchased [Proceeds Received $(13,401,016)]				(14,428,555	)

See accompanying Notes to Financial Statements.

5

ADVISORSHARES TRUST
ACCUVEST GLOBAL LONG SHORT ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares	Value
Equity Fund — (51.4)% (continued)
Total Investments Net of Securities Sold, Not Yet Purchased – 56.7% (Cost $14,450,939)		$	15,928,381
Other Assets in Excess of Liabilities — 43.3%			12,168,461
Net Assets — 100.0%		$	28,096,842

ETF — Exchange Traded Fund

(a) Represents security, or a portion thereof, segregated as collateral for securities sold, not yet purchased.

Cash of $12,279,345 has been segregated to cover requirement for open short sales as of December 31, 2012.

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Equity Fund		48.2	%
Money Market Fund		8.5
Total Investments		56.7
Other Assets in Excess of Liabilities		43.3
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

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ADVISORSHARES TRUST
ACCUVEST GLOBAL OPPORTUNITIES ETF
Schedule of Investments

December 31, 2012 (Unaudited)

Investments	Shares		Value
EXCHANGE TRADED FUNDS — 100.0%
Equity Fund — 100.0%
iShares MSCI Austria Investable Market Index Fund		181,407	$	3,299,793
iShares MSCI China Index Fund		80,059		3,886,064
iShares MSCI South Africa Index Fund		42,219		3,022,036
iShares MSCI Turkey Investable Market Index Fund		61,967		4,138,156
iShares S&P India Nifty 50 Index Fund		107,384		2,674,936
Total Exchange Traded Funds (Cost $15,700,911)				17,020,985
MONEY MARKET FUND — 1.3%
Dreyfus Cash Management — Institutional Class (Cost $221,611)		221,611		221,611
Total Investments — 101.3% (Cost $15,922,522)				17,242,596
Liabilities in Excess of Other Assets — (1.3)%				(215,287	)
Net Assets — 100.0%			$	17,027,309

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Equity Fund		100.0	%
Money Market Fund		1.3
Total Investments		101.3
Liabilities in Excess of Other Assets		(1.3	)
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

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ADVISORSHARES TRUST
CAMBRIA GLOBAL TACTICAL ETF
Schedule of Investments

December 31, 2012 (Unaudited)

Investments	Shares		Value
EXCHANGE TRADED FUNDS — 97.7%
Commodity Fund — 7.4%
PowerShares DB Base Metals Fund*		122,124	$	2,354,551
PowerShares DB Precious Metals Fund*		40,959		2,338,349
Total Commodity Fund				4,692,900
Debt Fund — 26.9%
iShares Barclays 1 – 3 Year Treasury Bond Fund		5,682		479,674
iShares Barclays 3 – 7 Year Treasury Bond Fund		3,884		478,587
iShares Barclays 7 – 10 Year Treasury Bond Fund		4,429		476,073
iShares Barclays 20+ Year Treasury Bond Fund		19,589		2,373,795
iShares Barclays MBS Bond Fund		4,430		478,440
iShares Barclays TIPS Bond Fund		3,925		476,534
iShares Core Total US Bond Market ETF		4,281		475,576
iShares iBoxx $ High Yield Corporate Bond Fund		27,010		2,521,384
iShares iBoxx $ Investment Grade Corporate Bond Fund		20,888		2,527,239
PIMCO Enhanced Short Maturity ETF		4,728		479,797
PowerShares Emerging Markets Sovereign Debt Portfolio		85,414		2,686,270
PowerShares Fundamental High Yield Corporate Bond Portfolio		114,211		2,198,676
SPDR Barclays International Treasury Bond ETF		7,940		484,499
Vanguard Short-Term Bond ETF		5,898		477,679
Vanguard Total Bond Market ETF		5,657		475,358
Total Debt Fund				17,089,581
Equity Fund — 63.4%
Consumer Discretionary Select Sector SPDR Fund		20,216		958,845
Energy Select Sector SPDR Fund		10,681		763,051
Financial Select Sector SPDR Fund		121,118		1,986,335
Global X FTSE Greece 20 ETF		40,987		740,225
Health Care Select Sector SPDR Fund		47,404		1,893,790
iShares FTSE NAREIT Mortgage Plus Capped Index Fund		87,182		1,192,650
iShares FTSE NAREIT Residential Plus Capped Index Fund		40,268		1,951,581
iShares MSCI All Peru Capped Index Fund		14,238		653,241
iShares MSCI Austria Investable Market Index Fund		75,850		1,379,711

See accompanying Notes to Financial Statements.

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ADVISORSHARES TRUST
CAMBRIA GLOBAL TACTICAL ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares		Value
Equity Fund — 63.4% (continued)
iShares MSCI Belgium Investable Market Index Fund		100,899	$	1,397,451
iShares MSCI EAFE Small Capital Index Fund		14,222		578,978
iShares MSCI Germany Index Fund		55,187		1,364,223
iShares MSCI Hong Kong Index Fund		66,168		1,284,983
iShares MSCI Italy Index Fund		102,558		1,379,405
iShares MSCI Mexico Investable Market Index Fund		19,115		1,348,181
iShares MSCI Spain Index Fund		45,059		1,363,485
iShares MSCI Thailand Investable Market Index Fund		16,773		1,383,605
iShares MSCI Turkey Investable Market Index Fund		20,500		1,368,990
iShares Russell Microcap(R) Index Fund		5,119		267,468
Market Vectors Russia ETF		39,774		1,192,027
PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio		13,892		506,419
PowerShares FTSE RAFI Emerging Markets Portfolio		22,390		510,940
PowerShares FTSE RAFI US 1000 Portfolio		5,190		324,012
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio		4,771		331,775
PowerShares QQQ Trust, Series 1		2,940		191,423
SPDR Dow Jones International Real Estate ETF		83,072		3,435,027
SPDR S&P Emerging Markets SmallCap ETF		12,300		573,672
Vanguard FTSE All-World ex-U.S. ETF		14,572		666,669
Vanguard Global ex-U.S. Real Estate ETF		38,413		2,113,867
Vanguard Mid-Cap ETF		3,937		324,330
Vanguard MSCI Emerging Markets ETF		11,353		505,549
Vanguard REIT ETF		58,850		3,872,330
Vanguard Small-Cap ETF		4,037		326,593
Vanguard Total Stock Market ETF		4,353		319,031
WisdomTree Emerging Markets Equity Income Fund		11,950		682,584
WisdomTree Emerging Markets SmallCap Dividend Fund		11,669		576,915
WisdomTree International SmallCap Dividend Fund		11,489		598,922
Total Equity Fund				40,308,283
Total Exchange Traded Funds (Cost $58,199,487)				62,090,764

See accompanying Notes to Financial Statements.

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ADVISORSHARES TRUST
CAMBRIA GLOBAL TACTICAL ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares		Value
MONEY MARKET FUND — 4.4%
Invesco Government & Agency Portfolio – Private Investment Class (Cost $2,822,869)		2,822,869	$	2,822,869
Total Investments — 102.1% (Cost $61,022,356)				64,913,633
Liabilities in Excess of Other Assets — (2.1)%				(1,334,660	)
Net Assets — 100.0%			$	63,578,973

ETF  — Exchange Traded Fund

MBS  — Mortgage Backed Securities

REIT  — Real Estate Investment Trust

TIPS  — Treasury Inflation Protected Securities

* Non-income producing security

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Commodity Fund		7.4	%
Debt Fund		26.9
Equity Fund		63.4
Money Market Fund		4.4
Total Investments		102.1
Liabilities in Excess of Other Assets		(2.1	)
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

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ADVISORSHARES TRUST
GLOBAL ALPHA & BETA ETF
Schedule of Investments

December 31, 2012 (Unaudited)

Investments	Shares		Value
COMMON STOCKS — 56.8%
Aerospace/Defense — 3.0%
Northrop Grumman Corp.		582	$	39,332
Agriculture — 2.6%
Philip Morris International, Inc.		408		34,125
Apparel — 2.2%
NIKE, Inc., Class B		548		28,277
Auto Manufacturers — 2.3%
Volvo AB (Sweden)(a)		2,224		30,402
Banks — 6.5%
Banco Santander Chile (Chile)(a)		1,514		43,134
Bank of Nova Scotia (Canada)		716		41,442
Total Banks				84,576
Beverages — 3.2%
Diageo PLC (United Kingdom)(a)		362		42,202
Computers — 2.4%
Apple, Inc.		58		30,916
Distribution/Wholesale — 3.1%
Genuine Parts Co.		635		40,373
Electric — 1.9%
NextEra Energy, Inc.		364		25,185
Food — 3.0%
H.J. Heinz Co.		682		39,338
Iron/Steel — 2.5%
Vale SA, Class B (Brazil)(a)		1,545		32,383

See accompanying Notes to Financial Statements.

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ADVISORSHARES TRUST
GLOBAL ALPHA & BETA ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares		Value
Oil & Gas — 7.3%
Ecopetrol SA (Colombia)(a)		442	$	26,374
Statoil ASA (Norway)(a)		1,592		39,864
Suncor Energy, Inc.		866		28,561
Total Oil & Gas				94,799
Pharmaceuticals — 10.1%
Johnson & Johnson		548		38,415
Novartis AG (Switzerland)(a)		664		42,031
Novo Nordisk A/S (Denmark)(a)		168		27,419
Teva Pharmaceutical Industries Ltd. (Israel)(a)		630		23,524
Total Pharmaceuticals				131,389
Pipelines — 2.8%
Kinder Morgan Energy Partners, LP		452		36,065
Savings & Loans — 1.9%
Brookline Bancorp, Inc.		2,961		25,168
Semiconductors — 2.0%
KLA-Tencor Corp.		542		25,886
Total Common Stocks (Cost $697,265)				740,416
EXCHANGE TRADED FUNDS — 33.9%
Commodity Fund — 2.0%
PowerShares DB Gold Fund*		450		25,807
Equity Fund — 31.9%
Consumer Discretionary Select Sector SPDR Fund		852		40,410
First Trust NASDAQ Technology Dividend Index Fund		4,997		96,542
Global X Fertilizers/Potash ETF		1,900		26,676
iShares Dow Jones US Medical Devices Index Fund		378		25,553
iShares Dow Jones US Technology Sector Index Fund		1,313		92,855
iShares S&P Emerging Markets Infrastructure Index Fund		774		26,417
iShares S&P Global Materials Sector Index Fund		472		29,477
PowerShares Water Resources Portfolio		1,352		28,054

See accompanying Notes to Financial Statements.

12

ADVISORSHARES TRUST
GLOBAL ALPHA & BETA ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares		Value
Equity Fund — 31.9% (continued)
Vanguard Telecommunication Services ETF		716	$	50,127
Total Equity Fund				416,111
Total Exchange Traded Funds (Cost $427,863)				441,918
MONEY MARKET FUND — 10.6%
Wells Fargo Advantage Government Money Market Fund – Institutional Class (Cost $137,951)		137,951		137,951
Total Investments — 101.3% (Cost $1,263,079)				1,320,285
Liabilities in Excess of Other Assets — (1.3)%				(16,926	)
Net Assets — 100.0%			$	1,303,359

ETF — Exchange Traded Fund

(a) American Depositary Receipt

^* Non-income producing security

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Aerospace/Defense		3.0	%
Agriculture		2.6
Apparel		2.2
Auto Manufacturers		2.3
Banks		6.5
Beverages		3.2
Commodity Fund		2.0
Computers		2.4
Distribution/Wholesale		3.1
Electric		1.9
Equity Fund		31.9
Food		3.0
Iron/Steel		2.5
Oil & Gas		7.3
Pharmaceuticals		10.1
Pipelines		2.8
Savings & Loans		1.9
Semiconductors		2.0
Money Market Fund		10.6
Total Investments		101.3
Liabilities in Excess of Other Assets		(1.3 )
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

13

ADVISORSHARES TRUST
GLOBAL ECHO ETF
Schedule of Investments

December 31, 2012 (Unaudited)

Investments	Shares		Value
COMMON STOCKS — 46.5%
Auto Parts & Equipment — 1.6%
Johnson Controls, Inc.		2,682	$	82,337
Banks — 1.2%
Banco Bradesco SA (Brazil)(a)		2,032		35,296
City National Corp.		517		25,602
Total Banks				60,898
Biotechnology — 3.1%
Illumina, Inc.*		531		29,518
Life Technologies Corp.*		930		45,645
Novozymes A/S (Denmark)(a)		2,994		84,730
Total Biotechnology				159,893
Building Materials — 0.7%
Toto Ltd. (Japan)(a)		2,415		36,008
Commercial Services — 1.6%
Automatic Data Processing, Inc.		697		39,736
MasterCard, Inc., Class A		88		43,233
Total Commercial Services				82,969
Computers — 3.4%
Apple, Inc.		104		55,435
EMC Corp.*		1,411		35,698
Maxwell Technologies, Inc.*		3,578		29,662
Stratasys Ltd.*		381		30,537
Teradata Corp.*		350		21,662
Total Computers				172,994
Cosmetics/Personal Care — 0.9%
Procter & Gamble Co. (The)		708		48,066
Distribution/Wholesale — 1.2%
LKQ Corp.*		2,960		62,456
Diversified Financial Services — 0.5%
Wageworks, Inc.*		1,307		23,265

See accompanying Notes to Financial Statements.

14

ADVISORSHARES TRUST
GLOBAL ECHO ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares		Value
Electric — 0.6%
Enernoc, Inc.*		2,551	$	29,974
Electronics — 0.7%
Itron, Inc.*		842		37,511
Engineering & Construction — 0.5%
Aegion Corp., Class A*		1,259		27,937
Environmental Control — 1.0%
Stericycle, Inc.*		283		26,395
Tomra Systems ASA (Norway)(a)		2,996		27,264
Total Environmental Control				53,659
Food — 3.4%
Hain Celestial Group, Inc. (The)*		846		45,870
Nestle SA (Switzerland)(a)		631		41,122
Smart Balance, Inc.*		1,866		24,071
United Natural Foods, Inc.*		1,160		62,165
Total Food				173,228
Healthcare – Products — 0.7%
Covidien PLC (Ireland)		615		35,510
Healthcare – Services — 0.7%
Laboratory Corp. of America Holdings*		401		34,735
Home Builders — 0.9%
Daiwa House Industry Co. Ltd. (Japan)(a)		281		48,051
Internet — 2.1%
Amazon.com, Inc.*		104		26,119
F5 Networks, Inc.*		335		32,545
Google, Inc., Class A*		70		49,656
Total Internet				108,320
Machinery – Diversified — 0.7%
Xylem, Inc.		1,341		36,341

See accompanying Notes to Financial Statements.

15

ADVISORSHARES TRUST
GLOBAL ECHO ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares		Value
Miscellaneous Manufacturing — 1.0%
Aptargroup, Inc.		730	$	34,836
Pure Technologies Ltd. (Canada)*		3,746		17,044
Total Miscellaneous Manufacturing				51,880
Office Furnishings — 0.6%
Interface, Inc.,		1,832		29,459
Oil & Gas — 0.7%
EnCana Corp. (Canada)		1,742		34,422
Pharmaceuticals — 4.4%
GlaxoSmithKline PLC (United Kingdom)(a)		1,072		46,600
Johnson & Johnson		579		40,588
Novartis AG (Switzerland)(a)		880		55,704
Perrigo Co.		337		35,058
Teva Pharmaceutical Industries Ltd. (Israel)(a)		1,255		46,861
Total Pharmaceuticals				224,811
Pipelines — 0.4%
Kinder Morgan, Inc.		619		21,869
Real Estate Investment Trusts — 1.1%
HCP, Inc.		577		26,069
Prologis, Inc.		770		28,097
Total Real Estate Investment Trusts				54,166
Retail — 2.1%
CVS Caremark Corp.		1,050		50,768
Home Depot, Inc. (The)		517		31,976
J.C. Penney Co., Inc.		1,197		23,593
Total Retail				106,337
Semiconductors — 1.8%
Cree, Inc.*		960		32,621
First Solar, Inc.*		968		29,892
NXP Semiconductor NV (Netherlands)*		1,191		31,406
Total Semiconductors				93,919

See accompanying Notes to Financial Statements.

16

ADVISORSHARES TRUST
GLOBAL ECHO ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares		Value
Software — 0.7%
Adobe Systems, Inc.*		665	$	25,057
Fiserv, Inc.*		160		12,645
Total Software				37,702
Telecommunications — 4.5%
Cisco Systems, Inc.		3,596		70,661
Corning, Inc.		1,796		22,666
IPG Photonics Corp.		473		31,525
Telefonica Brasil SA (Brazil)(a)		1,293		31,110
Telenor ASA (Norway)(a)		1,229		74,649
Total Telecommunications				230,611
Transportation — 1.6%
Canadian National Railway Co. (Canada)		569		51,784
Union Pacific Corp.		247		31,053
Total Transportation				82,837
Water — 2.1%
American Water Works Co., Inc.		1,219		45,262
Severn Trent PLC (United Kingdom)(a)		2,445		62,506
Total Water				107,768
Total Common Stocks (Cost $2,279,795)				2,389,933
MONEY MARKET FUNDS — 9.1%
Federated Government Obligations Fund		39,947		39,947
Fidelity Institutional Money Market Government Portfolio – Class I		208,932		208,932
Fidelity Institutional Money Market Portfolio – Institutional Class		219,661		219,661
Total Money Market Funds (Cost $468,540)				468,540
COMMERCIAL MORTGAGE BACKED SECURITIES — 8.6%
Government National Mortgage Association, Class AC, Series 2011-109, 3.25%, 04/16/43		250,000		271,345
Government National Mortgage Association, Class B, Series 2011-64, 4.00%@, 10/16/44		150,000		167,964
Total Commercial Mortgage Backed Securities (Cost $432,568)				439,309

See accompanying Notes to Financial Statements.

17

ADVISORSHARES TRUST
GLOBAL ECHO ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares		Value
ASSET BACKED SECURITIES — 8.7%
SBAP 2007 – 20F 1, 5.71%, 06/01/27		158,219	$	185,064
SBAP 2009 – 20H 1, 4.45%, 08/01/29		235,454		262,082
Total Asset Backed Securities (Cost $447,213)				447,146
MUNICIPAL BONDS — 3.3%
Tippecanoe County School Building Corp., Revenue Bonds, (State Aid Withholding) 4.54%, 01/15/17 (Cost $167,171)		150,000		167,085
EXCHANGE TRADED FUNDS — 23.6%
Equity Fund — 23.6%
First Trust ISE Global Wind Energy Index Fund		3,398		23,582
Global X Lithium ETF		951		13,675
Guggenheim S&P Global Water Index ETF		2,060		45,806
iShares MSCI Kld 400 Social Index Fund		2,402		124,280
Pax MSCI EAFE Esg Index ETF		997		24,437
PowerShares Cleantech Portfolio		2,577		59,580
PowerShares Global Clean Energy Portfolio		9,697		76,509
PowerShares Water Resources Portfolio		3,296		68,392
PowerShares Wilderhill Clean Energy Portfolio		5,051		20,608
Proshares Short 20+ Year Treasury*		300		8,814
Proshares Short FTSE China 25*		100		3,550
Proshares Short QQQ*		2,200		56,254
Ranger Equity Bear ETF*†		843		15,410
SPDR Barclays Capital 1 – 3 Month T-Bill ETF*		14,676		672,308
Total Exchange Traded Funds (Cost $1,203,816)				1,213,205
Total Investments — 99.8% (Cost $4,999,103)				5,125,218
Other Assets in Excess of Liabilities — 0.2%				12,606
Net Assets — 100.0%			$	5,137,824

ETF — Exchange Traded Fund

(a) American Depositary Receipt

* Non-income producing security

@ Variable rate instrument. The interest rate shown reflects the rate in effect at December 31, 2012.

† Affiliated company (See Note 8).

See accompanying Notes to Financial Statements.

18

ADVISORSHARES TRUST
GLOBAL ECHO ETF
Schedule of Investments (continued)

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Asset Backed Securities		8.7	%
Auto Parts & Equipment		1.6
Banks		1.2
Biotechnology		3.1
Building Materials		0.7
Commercial Mortgage Backed Securities		8.6
Commercial Services		1.6
Computers		3.4
Cosmetics/Personal Care		0.9
Distribution/Wholesale		1.2
Diversified Financial Services		0.5
Electric		0.6
Electronics		0.7
Engineering & Construction		0.5
Environmental Control		1.0
Equity Fund		23.6
Food		3.4
Healthcare – Products		0.7
Healthcare –  Services		0.7
Home Builders		0.9
Internet		2.1
Machinery – Diversified		0.7
Miscellaneous Manufacturing		1.0
Municipal Bonds		3.3
Office Furnishings		0.6
Oil & Gas		0.7
Pharmaceuticals		4.4
Pipelines		0.4
Real Estate Investment Trusts		1.1
Retail		2.1
Semiconductors		1.8
Software		0.7
Telecommunications		4.5
Transportation		1.6
Water		2.1
Money Market Fund		9.1
Total Investments		99.8
Other Assets in Excess of Liabilities		0.2
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

19

ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments

December 31, 2012 (Unaudited)

Investments	Shares		Value
COMMON STOCKS — 99.7%
Advertising — 0.6%
Interpublic Group of Cos., Inc. (The)		4,857	$	53,524
Omnicom Group, Inc.		625		31,225
Total Advertising				84,749
Aerospace/Defense — 1.4%
Boeing Co. (The)		358		26,979
General Dynamics Corp.		568		39,345
L-3 Communications Holdings, Inc.		131		10,037
Lockheed Martin Corp.		226		20,858
Northrop Grumman Corp.		120		8,110
Raytheon Co.		656		37,759
Rockwell Collins, Inc.		503		29,260
United Technologies Corp.		436		35,756
Total Aerospace/Defense				208,104
Agriculture — 0.8%
Altria Group, Inc.		571		17,941
Archer-Daniels-Midland Co.		1,371		37,552
Lorillard, Inc.		240		28,001
Philip Morris International, Inc.		254		21,244
Reynolds American, Inc.		419		17,359
Total Agriculture				122,097
Airlines — 0.4%
Southwest Airlines Co.		6,674		68,342
Apparel — 0.9%
Coach, Inc.		887		49,237
Nike, Inc., Class B		603		31,115
Ralph Lauren Corp.		188		28,185
VF Corp.		206		31,100
Total Apparel				139,637

See accompanying Notes to Schedule of Investments.

20

ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares		Value
Auto Manufacturers — 0.6%
Ford Motor Co.		3,571	$	46,245
PACCAR, Inc.		858		38,790
Total Auto Manufacturers				85,035
Auto Parts & Equipment — 1.3%
BorgWarner, Inc.*		842		60,304
Goodyear Tire & Rubber Co. (The)*		4,824		66,619
Johnson Controls, Inc.		2,220		68,154
Total Auto Parts & Equipment				195,077
Banks — 5.6%
Bank of America Corp.		2,848		33,037
Bank of New York Mellon Corp. (The)		1,792		46,054
BB&T Corp.		1,477		42,996
Capital One Financial Corp.		870		50,399
Citigroup, Inc.		1,485		58,747
Comerica, Inc.		1,425		43,235
Fifth Third Bancorp		1,858		28,223
First Horizon National Corp.		4,651		46,091
Goldman Sachs Group, Inc. (The)		340		43,370
Huntington Bancshares, Inc.		2,851		18,218
JPMorgan Chase & Co.		661		29,064
KeyCorp		2,241		18,869
M&T Bank Corp.		352		34,661
Morgan Stanley		2,869		54,855
Northern Trust Corp.		817		40,981
PNC Financial Services Group, Inc.		257		14,986
Regions Financial Corp.		4,915		34,995
State Street Corp.		1,142		53,685
SunTrust Banks, Inc.		1,957		55,481
US Bancorp		901		28,778
Wells Fargo & Co.		1,233		42,144
Zions Bancorporation		1,317		28,184
Total Banks				847,053

See accompanying Notes to Schedule of Investments.

21

ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares		Value
Beverages — 1.1%
Beam, Inc.		322	$	19,671
Brown-Forman Corp., Class B		259		16,382
Coca-Cola Co. (The)		401		14,536
Coca-Cola Enterprises, Inc.		703		22,306
Constellation Brands, Inc., Class A*		790		27,958
Dr Pepper Snapple Group, Inc.		496		21,913
Molson Coors Brewing Co., Class B		260		11,126
Monster Beverage Corp.*		549		29,031
PepsiCo, Inc.		150		10,265
Total Beverages				173,188
Biotechnology — 1.5%
Alexion Pharmaceuticals, Inc.*		207		19,419
Amgen, Inc.		381		32,888
Biogen Idec, Inc.*		179		26,254
Celgene Corp.*		710		55,891
Gilead Sciences, Inc.*		708		52,003
Life Technologies Corp.*		729		35,779
Total Biotechnology				222,234
Building Materials — 0.1%
Masco Corp.		628		10,462
Chemicals — 2.9%
Air Products & Chemicals, Inc.		378		31,760
Airgas, Inc.		429		39,163
CF Industries Holdings, Inc.		41		8,330
Dow Chemical Co. (The)		1,279		41,337
E.I. du Pont de Nemours & Co.		536		24,104
Eastman Chemical Co.		907		61,721
Ecolab, Inc.		549		39,473
FMC Corp.		549		32,127

See accompanying Notes to Schedule of Investments.

22

ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares		Value
Chemicals — 2.9% (continued)
International Flavors & Fragrances, Inc.		271	$	18,032
Monsanto Co.		217		20,539
Mosaic Co. (The)		592		33,525
PPG Industries, Inc.		169		22,874
Praxair, Inc.		235		25,721
Sherwin-Williams Co. (The)		152		23,381
Sigma-Aldrich Corp.		196		14,422
Total Chemicals				436,509
Commercial Services — 3.4%
Apollo Group, Inc., Class A*		1,830		38,284
Automatic Data Processing, Inc.		267		15,222
Equifax, Inc.		541		29,279
H&R Block, Inc.		2,801		52,015
Iron Mountain, Inc.		470		14,594
MasterCard, Inc., Class A		87		42,741
Moody's Corp.		925		46,546
Paychex, Inc.		474		14,760
Quanta Services, Inc.*		1,517		41,399
Robert Half International, Inc.		2,011		63,990
RR Donnelley & Sons Co.		875		7,875
SAIC, Inc.		4,395		49,751
Total System Services, Inc.		946		20,263
Visa, Inc., Class A		316		47,899
Western Union Co. (The)		2,731		37,169
Total Commercial Services				521,787
Computers — 2.9%
Apple, Inc.		92		49,039
Cognizant Technology Solutions Corp., Class A*		666		49,317
Computer Sciences Corp.		898		35,965
Dell, Inc.		5,607		56,799
EMC Corp.*		1,923		48,652
International Business Machines Corp.		168		32,180

See accompanying Notes to Schedule of Investments.

23

ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares		Value
Computers — 2.9% (continued)
NetApp, Inc.*		1,527	$	51,231
SanDisk Corp.*		588		25,613
Teradata Corp.*		287		17,762
Western Digital Corp.		1,601		68,027
Total Computers				434,585
Cosmetics/Personal Care — 0.3%
Colgate-Palmolive Co.		126		13,172
Estee Lauder Cos., Inc. (The), Class A		325		19,455
Procter & Gamble Co. (The)		187		12,695
Total Cosmetics/Personal Care				45,322
Distribution/Wholesale — 0.9%
Fastenal Co.		465		21,711
Fossil, Inc.*		655		60,980
Genuine Parts Co.		320		20,346
W.W. Grainger, Inc.		144		29,141
Total Distribution/Wholesale				132,178
Diversified Financial Services — 4.3%
American Express Co.		726		41,731
Ameriprise Financial, Inc.		988		61,878
BlackRock, Inc.		235		48,577
Charles Schwab Corp. (The)		1,765		25,345
CME Group, Inc.		308		15,619
Discover Financial Services		1,327		51,156
E*Trade Financial Corp.*		3,391		30,349
Federated Investors, Inc., Class B		1,229		24,863
Franklin Resources, Inc.		311		39,093
IntercontinentalExchange, Inc.*		241		29,838
Invesco Ltd. (Bermuda)		1,594		41,588
Legg Mason, Inc.		2,385		61,342
NASDAQ OMX Group, Inc. (The)		1,925		48,144
NYSE Euronext		1,785		56,299

See accompanying Notes to Schedule of Investments.

24

ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares		Value
Diversified Financial Services — 4.3% (continued)
SLM Corp.		3,231	$	55,347
T. Rowe Price Group, Inc.		461		30,025
Total Diversified Financial Services				661,194
Electric — 1.7%
AES Corp. (The)		4,421		47,305
American Electric Power Co., Inc.		157		6,701
CMS Energy Corp.		541		13,190
Consolidated Edison, Inc.		118		6,554
Dominion Resources, Inc.		207		10,723
DTE Energy Co.		172		10,329
Duke Energy Corp.		118		7,528
Edison International		123		5,558
Entergy Corp.		158		10,073
Integrys Energy Group, Inc.		185		9,661
NextEra Energy, Inc.		171		11,831
Northeast Utilities		338		13,209
NRG Energy, Inc.		769		17,679
Pepco Holdings, Inc.		669		13,119
PG&E Corp.		200		8,036
Pinnacle West Capital Corp.		250		12,745
Public Service Enterprise Group, Inc.		195		5,967
SCANA Corp.		181		8,261
Southern Co. (The)		236		10,103
TECO Energy, Inc.		457		7,659
Wisconsin Energy Corp.		279		10,281
Xcel Energy, Inc.		437		11,672
Total Electric				258,184
Electrical Components & Equipment — 0.5%
Emerson Electric Co.		896		47,452
Molex, Inc.		1,057		28,888
Total Electrical Components & Equipment				76,340

See accompanying Notes to Schedule of Investments.

25

ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares		Value
Electronics — 2.2%
Agilent Technologies, Inc.		1,257	$	51,462
Amphenol Corp., Class A		687		44,449
FLIR Systems, Inc.		519		11,579
Honeywell International, Inc.		763		48,428
Jabil Circuit, Inc.		3,429		66,145
PerkinElmer, Inc.		1,322		41,960
Thermo Fisher Scientific, Inc.		807		51,470
Waters Corp.*		297		25,875
Total Electronics				341,368
Engineering & Construction — 0.6%
Fluor Corp.		732		42,998
Jacobs Engineering Group, Inc.*		1,237		52,659
Total Engineering & Construction				95,657
Entertainment — 0.3%
International Game Technology		3,779		53,548
Environmental Control — 0.4%
Republic Services, Inc.		728		21,352
Stericycle, Inc.*		263		24,530
Waste Management, Inc.		387		13,058
Total Environmental Control				58,940
Food — 2.8%
Campbell Soup Co.		320		11,165
ConAgra Foods, Inc.		664		19,588
Dean Foods Co.*		3,680		60,757
General Mills, Inc.		425		17,174
H.J. Heinz Co.		259		14,939
Hershey Co. (The)		226		16,322
Hormel Foods Corp.		996		31,085
JM Smucker Co. (The)		198		17,076
Kellogg Co.		315		17,593

See accompanying Notes to Schedule of Investments.

26

ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares		Value
Food — 2.8% (continued)
Kraft Foods Group, Inc.		254	$	11,549
Kroger Co. (The)		1,781		46,342
McCormick & Co., Inc.		244		15,501
Mondelez International, Inc., Class A		781		19,892
Safeway, Inc.		3,436		62,157
Sysco Corp.		602		19,059
Tyson Foods, Inc., Class A		1,636		31,738
Whole Foods Market, Inc.		221		20,184
Total Food				432,121
Forest Products & Paper — 0.3%
International Paper Co.		637		25,378
MeadWestvaco Corp.		533		16,987
Total Forest Products & Paper				42,365
Gas — 0.3%
AGL Resources, Inc.		242		9,673
CenterPoint Energy, Inc.		453		8,720
NiSource, Inc.		804		20,012
Sempra Energy		117		8,300
Total Gas				46,705
Hand/Machine Tools — 0.5%
Snap-On, Inc.		425		33,571
Stanley Black & Decker, Inc.		555		41,053
Total Hand/Machine Tools				74,624
Healthcare – Products — 2.7%
Baxter International, Inc.		398		26,531
Becton Dickinson and Co.		249		19,469
Boston Scientific Corp.*		3,438		19,700
C.R. Bard, Inc.		217		21,210
CareFusion Corp.*		1,145		32,724
DENTSPLY International, Inc.		912		36,124

See accompanying Notes to Schedule of Investments.

27

ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares		Value
Healthcare – Products — 2.7% (continued)
Edwards Lifesciences Corp.*		328	$	29,576
Hospira, Inc.*		694		21,681
Intuitive Surgical, Inc.*		40		19,615
Medtronic, Inc.		420		17,228
Patterson Cos., Inc.		798		27,315
St. Jude Medical, Inc.		761		27,502
Stryker Corp.		710		38,922
Varian Medical Systems, Inc.*		575		40,388
Zimmer Holdings, Inc.		615		40,996
Total Healthcare – Products				418,981
Healthcare – Services — 3.0%
Aetna, Inc.		1,231		56,995
Cigna Corp.		1,057		56,507
Coventry Health Care, Inc.		595		26,674
DaVita, Inc.*		268		29,622
Humana, Inc.		536		36,786
Laboratory Corp. of America Holdings*		466		40,365
Quest Diagnostics, Inc.		587		34,205
Tenet Healthcare Corp.*		2,169		70,427
UnitedHealth Group, Inc.		931		50,497
WellPoint, Inc.		838		51,051
Total Healthcare – Services				453,129
Home Builders — 0.6%
DR Horton, Inc.		582		11,512
Lennar Corp., Class A		315		12,181
Pultegroup, Inc.*		3,435		62,380
Total Home Builders				86,073
Home Furnishings — 0.4%
Harman International Industries, Inc.		1,339		59,773

See accompanying Notes to Schedule of Investments.

28

ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares		Value
Household Products/Wares — 0.4%
Avery Dennison Corp.		696	$	24,304
Clorox Co. (The)		182		13,326
Kimberly-Clark Corp.		201		16,971
Total Household Products/Wares				54,601
Housewares — 0.2%
Newell Rubbermaid, Inc.		1,690		37,636
Insurance — 5.6%
Aflac, Inc.		1,118		59,388
Allstate Corp. (The)		1,129		45,352
American International Group, Inc.*		1,634		57,680
Aon PLC		564		31,358
Assurant, Inc.		1,364		47,331
Berkshire Hathaway, Inc., Class B*		104		9,329
Chubb Corp. (The)		351		26,437
Cincinnati Financial Corp.		268		10,495
Genworth Financial, Inc., Class A*		10,764		80,838
Hartford Financial Services Group, Inc. (The)		2,749		61,688
Lincoln National Corp.		2,362		61,176
Marsh & McLennan Cos., Inc.		850		29,299
MetLife, Inc.		1,672		55,076
Principal Financial Group, Inc.		2,099		59,863
Progressive Corp. (The)		760		16,036
Prudential Financial, Inc.		1,021		54,450
Torchmark Corp.		919		47,485
Travelers Cos., Inc. (The)		660		47,401
Unum Group		2,824		58,796
Total Insurance				859,478
Internet — 2.4%
Amazon.com, Inc.*		30		7,534
eBay, Inc.*		630		32,143
Expedia, Inc.		628		38,591

See accompanying Notes to Schedule of Investments.

29

ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares		Value
Internet — 2.4% (continued)
F5 Networks, Inc.*		461	$	44,786
Google, Inc., Class A*		61		43,272
priceline.com, Inc.*		82		50,938
Symantec Corp.*		1,934		36,379
TripAdvisor, Inc.*		1,119		46,953
VeriSign, Inc.*		553		21,467
Yahoo! Inc.*		2,306		45,889
Total Internet				367,952
Iron/Steel — 0.8%
Allegheny Technologies, Inc.		1,558		47,301
Cliffs Natural Resources, Inc.		1,137		43,843
Nucor Corp.		325		14,033
United States Steel Corp.		537		12,818
Total Iron/Steel				117,995
Leisure Time — 0.6%
Carnival Corp. (Panama)		756		27,798
Harley-Davidson, Inc.		1,173		57,289
Total Leisure Time				85,087
Lodging — 0.9%
Marriott International, Inc., Class A		1,163		43,345
Starwood Hotels & Resorts Worldwide, Inc.		653		37,456
Wynn Resorts Ltd.		487		54,783
Total Lodging				135,584
Machinery – Construction & Mining — 0.8%
Caterpillar, Inc.		688		61,631
Joy Global, Inc.		964		61,484
Total Machinery – Construction & Mining				123,115
Machinery – Diversified — 1.7%
Cummins, Inc.		604		65,443

See accompanying Notes to Schedule of Investments.

30

ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares		Value
Machinery – Diversified — 1.7% (continued)
Deere & Co.		483	$	41,741
Flowserve Corp.		256		37,581
Rockwell Automation, Inc.		655		55,013
Roper Industries, Inc.		222		24,749
Xylem, Inc.		1,133		30,704
Total Machinery – Diversified				255,231
Media — 3.5%
Cablevision Systems Corp., Class A		1,054		15,747
CBS Corp., Class B		1,378		52,433
Comcast Corp., Class A		1,067		39,884
DIRECTV*		1,135		56,932
Discovery Communications, Inc., Class A*		749		47,547
Gannett Co., Inc.		1,090		19,631
McGraw-Hill Cos., Inc. (The)		685		37,449
News Corp., Class A		2,125		54,272
Scripps Networks Interactive, Inc., Class A		547		31,682
Time Warner Cable, Inc.		500		48,595
Time Warner, Inc.		991		47,400
Viacom, Inc., Class B		958		50,525
Walt Disney Co. (The)		760		37,840
Total Media				539,937
Metal Fabricate/Hardware — 0.3%
Precision Castparts Corp.		259		49,060
Mining — 0.6%
Alcoa, Inc.		1,832		15,902
Freeport-McMoRan Copper & Gold, Inc.		307		10,499
Titanium Metals Corp.		3,612		59,634
Total Mining				86,035
Miscellaneous Manufacturing — 2.8%
3M Co.		352		32,683
Danaher Corp.		635		35,496

See accompanying Notes to Schedule of Investments.

31

ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares		Value
Miscellaneous Manufacturing — 2.8% (continued)
Dover Corp.		956	$	62,819
Eaton Corp. PLC (Ireland)		1,117		60,541
General Electric Co.		1,661		34,864
Illinois Tool Works, Inc.		370		22,500
Leggett & Platt, Inc.		1,739		47,336
Pall Corp.		364		21,935
Parker Hannifin Corp.		186		15,821
Pentair Ltd. (Switzerland)		752		36,961
Textron, Inc.		2,305		57,141
Total Miscellaneous Manufacturing				428,097
Office/Business Equipment — 0.2%
Xerox Corp.		5,291		36,085
Oil & Gas — 4.9%
Anadarko Petroleum Corp.		88		6,539
Apache Corp.		168		13,188
Cabot Oil & Gas Corp.		390		19,399
CONSOL Energy, Inc.		426		13,675
Denbury Resources, Inc.*		3,474		56,279
Diamond Offshore Drilling, Inc.		636		43,223
EOG Resources, Inc.		243		29,352
EQT Corp.		526		31,023
Exxon Mobil Corp.		84		7,270
Helmerich & Payne, Inc.		948		53,097
Hess Corp.		250		13,240
Marathon Petroleum Corp.		1,073		67,599
Murphy Oil Corp.		548		32,633
Newfield Exploration Co.*		415		11,114
Noble Energy, Inc.		144		14,651
Peabody Energy Corp.		903		24,029
Phillips 66		1,163		61,755
Pioneer Natural Resources Co.		300		31,977
QEP Resources, Inc.		931		28,181
Rowan Cos. PLC, Class A (United Kingdom)*		1,774		55,473

See accompanying Notes to Schedule of Investments.

32

ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares		Value
Oil & Gas — 4.9% (continued)
Tesoro Corp.		1,544	$	68,013
Valero Energy Corp.		1,864		63,600
Total Oil & Gas				745,310
Oil & Gas Services — 2.1%
Baker Hughes, Inc.		1,267		51,744
Cameron International Corp.*		1,014		57,250
FMC Technologies, Inc.*		1,134		48,569
Halliburton Co.		1,703		59,077
National Oilwell Varco, Inc.		705		48,187
Schlumberger Ltd. (Curacao)		723		50,097
Total Oil & Gas Services				314,924
Packaging & Containers — 0.9%
Ball Corp.		961		43,005
Bemis Co., Inc.		469		15,693
Owens-Illinois, Inc.*		2,709		57,620
Sealed Air Corp.		1,536		26,895
Total Packaging & Containers				143,213
Pharmaceuticals — 2.8%
Abbott Laboratories		364		23,842
Allergan, Inc.		275		25,226
AmerisourceBergen Corp.		1,085		46,850
Bristol-Myers Squibb Co.		253		8,245
Cardinal Health, Inc.		1,042		42,909
Express Scripts Holding Co.*		787		42,498
Forest Laboratories, Inc.*		178		6,287
Johnson & Johnson		257		18,016
McKesson Corp.		558		54,104
Mead Johnson Nutrition Co.		257		16,934
Merck & Co., Inc.		257		10,521
Mylan, Inc.*		2,139		58,780
Perrigo Co.		177		18,413

See accompanying Notes to Schedule of Investments.

33

ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares		Value
Pharmaceuticals — 2.8% (continued)
Pfizer, Inc.		296	$	7,424
Watson Pharmaceuticals, Inc.*		475		40,850
Total Pharmaceuticals				420,899
Pipelines — 0.4%
Kinder Morgan, Inc.		694		24,519
ONEOK, Inc.		471		20,135
Spectra Energy Corp.		314		8,598
Williams Cos., Inc. (The)		399		13,063
Total Pipelines				66,315
Real Estate — 0.3%
CBRE Group, Inc.*		2,366		47,083
Real Estate Investment Trust — 0.5%
American Tower Corp., Class A		201		15,531
AvalonBay Communities, Inc.		59		8,000
Equity Residential		122		6,914
HCP, Inc.		159		7,183
Health Care REIT, Inc.		96		5,884
Host Hotels & Resorts, Inc.		518		8,117
Plum Creek Timber Co., Inc.		140		6,212
Public Storage		48		6,958
Simon Property Group, Inc.		41		6,482
Ventas, Inc.		87		5,630
Weyerhaeuser Co.		223		6,204
Total Real Estate Investment Trust				83,115
Retail — 8.9%
Abercrombie & Fitch Co., Class A		1,684		80,782
AutoNation, Inc.*		923		36,643
AutoZone, Inc.*		135		47,848
Bed Bath & Beyond, Inc.*		799		44,672
Best Buy Co., Inc.		1,044		12,371
Big Lots, Inc.*		1,568		44,625

See accompanying Notes to Schedule of Investments.

34

ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares		Value
Retail — 8.9% (continued)
CarMax, Inc.*		971	$	36,451
Chipotle Mexican Grill, Inc.*		102		30,341
Costco Wholesale Corp.		204		20,149
CVS Caremark Corp.		862		41,678
Darden Restaurants, Inc.		742		33,442
Dollar Tree, Inc.*		1,264		51,268
Family Dollar Stores, Inc.		644		40,836
Gamestop Corp., Class A		2,396		60,116
Gap, Inc. (The)		679		21,076
Home Depot, Inc. (The)		599		37,048
J.C. Penney Co., Inc.		1,338		26,372
Kohl's Corp.		1,031		44,312
Lowe's Cos., Inc.		1,209		42,944
Ltd. Brands, Inc.		704		33,130
Macy's, Inc.		1,278		49,868
McDonald's Corp.		216		19,053
Nordstrom, Inc.		660		35,310
O'Reilly Automotive, Inc.*		540		48,287
PetSmart, Inc.		603		41,209
Ross Stores, Inc.		628		34,006
Staples, Inc.		4,075		46,455
Starbucks Corp.		713		38,231
Target Corp.		661		39,111
Tiffany & Co.		650		37,271
TJX Cos., Inc. (The)		810		34,385
Urban Outfitters, Inc.*		1,010		39,754
Walgreen Co.		1,405		51,999
Wal-Mart Stores, Inc.		325		22,175
Yum! Brands, Inc.		357		23,705
Total Retail				1,346,923
Savings & Loans — 0.2%
People's United Financial, Inc.		1,997		24,144

See accompanying Notes to Schedule of Investments.

35

ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares		Value
Semiconductors — 4.0%
Altera Corp.		1,089	$	37,505
Analog Devices, Inc.		930		39,116
Applied Materials, Inc.		1,273		14,563
Broadcom Corp., Class A		1,655		54,963
Intel Corp.		2,039		42,065
KLA-Tencor Corp.		928		44,321
Lam Research Corp.*		889		32,120
Linear Technology Corp.		950		32,585
LSI Corp.*		8,813		62,396
Microchip Technology, Inc.		694		22,617
NVIDIA Corp.		4,340		53,339
QUALCOMM, Inc.		665		41,243
Teradyne, Inc.*		4,104		69,317
Texas Instruments, Inc.		829		25,649
Xilinx, Inc.		996		35,756
Total Semiconductors				607,555
Software — 3.9%
Adobe Systems, Inc.*		985		37,115
Akamai Technologies, Inc.*		716		29,292
Autodesk, Inc.*		1,488		52,601
BMC Software, Inc.*		909		36,051
CA, Inc.		1,859		40,861
Cerner Corp.*		354		27,485
Citrix Systems, Inc.*		488		32,086
Dun & Bradstreet Corp. (The)		475		37,359
Electronic Arts, Inc.*		3,900		56,667
Fidelity National Information Services, Inc.		1,415		49,256
Fiserv, Inc.*		542		42,834
Intuit, Inc.		519		30,880
Microsoft Corp.		1,426		38,117
Oracle Corp.		1,548		51,579
Red Hat, Inc.*		295		15,623

See accompanying Notes to Schedule of Investments.

36

ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares		Value
Software — 3.9% (continued)
Salesforce.com, Inc.*		65	$	10,926
Total Software				588,732
Telecommunications — 2.1%
AT&T, Inc.		400		13,484
Centurylink, Inc.		227		8,880
Cisco Systems, Inc.		2,627		51,621
Corning, Inc.		2,176		27,461
Crown Castle International Corp.*		188		13,566
Frontier Communications Corp.		1,394		5,966
Harris Corp.		201		9,841
JDS Uniphase Corp.*		2,718		36,802
Juniper Networks, Inc.*		2,233		43,923
MetroPCS Communications, Inc.*		3,203		31,838
Motorola Solutions, Inc.		1,032		57,462
Verizon Communications, Inc.		376		16,269
Total Telecommunications				317,113
Textiles — 0.2%
Cintas Corp.		609		24,908
Toys/Games/Hobbies — 0.3%
Hasbro, Inc.		566		20,319
Mattel, Inc.		575		21,057
Total Toys/Games/Hobbies				41,376
Transportation — 2.1%
C.H. Robinson Worldwide, Inc.		513		32,432
CSX Corp.		2,392		47,194
Expeditors International of Washington, Inc.		517		20,447
FedEx Corp.		437		40,082
Norfolk Southern Corp.		782		48,359
Ryder System, Inc.		1,033		51,578
Union Pacific Corp.		409		51,419
United Parcel Service, Inc., Class B		347		25,584

See accompanying Notes to Schedule of Investments.

37

ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares		Value
Transportation — 2.1% (continued)
Total Transportation			$	317,095
Total Common Stocks (Cost $14,239,286)				15,149,959
MONEY MARKET FUND — 0.5%
Fidelity Institutional Prime Money Market Portfolio – Class I (Cost $76,787)		76,787		76,787
Total Investments — 100.2% (Cost $14,316,073)				15,226,746
Liabilities in Excess of Other Assets — (0.2)%				(27,600	)
Net Assets — 100.0%			$	15,199,146

* Non-income producing security

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Advertising		0.6	%
Aerospace/Defense		1.4
Agriculture		0.8
Airlines		0.4
Apparel		0.9
Auto Manufacturers		0.6
Auto Parts & Equipment		1.3
Banks		5.6
Beverages		1.1
Biotechnology		1.5
Building Materials		0.1
Chemicals		2.9
Commercial Services		3.4
Computers		2.9
Cosmetics/Personal Care		0.3
Distribution/Wholesale		0.9
Diversified Financial Services		4.3
Electric		1.7
Electrical Components & Equipment		0.5
Electronics		2.2
Engineering & Construction		0.6
Entertainment		0.3
Environmental Control		0.4

See accompanying Notes to Schedule of Investments.

38

ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

	% of Net Assets
Food		2.8	%
Forest Products & Paper		0.3
Gas		0.3
Hand/Machine Tools		0.5
Healthcare – Products		2.7
Healthcare – Services		3.0
Home Builders		0.6
Home Furnishings		0.4
Household Products/Wares		0.4
Housewares		0.2
Insurance		5.6
Internet		2.4
Iron/Steel		0.8
Leisure Time		0.6
Lodging		0.9
Machinery – Construction & Mining		0.8
Machinery – Diversified		1.7
Media		3.5
Metal Fabricate/Hardware		0.3
Mining		0.6
Miscellaneous Manufacturing		2.8
Office/Business Equipment		0.2
Oil & Gas		4.9
Oil & Gas Services		2.1
Packaging & Containers		0.9
Pharmaceuticals		2.8
Pipelines		0.4
Real Estate		0.3
Real Estate Investment Trust		0.5
Retail		8.9
Savings & Loans		0.2
Semiconductors		4.0
Software		3.9
Telecommunications		2.1
Textiles		0.2
Toys/Games/Hobbies		0.3
Transportation		2.1
Money Market Fund		0.5
Total Investments		100.2
Liabilities in Excess of Other Assets		(0.2 )
Net Assets		100.0	%

See accompanying Notes to Schedule of Investments.

39

ADVISORSHARES TRUST
MADRONA GLOBAL BOND ETF
Schedule of Investments

December 31, 2012 (Unaudited)

Investments	Shares		Value
EXCHANGE TRADED FUNDS — 99.0%
Asset Allocation Fund — 4.0%
SPDR Barclays Capital Convertible Securities ETF		23,014	$	927,464
Debt Fund — 90.1%
iShares iBoxx $ High Yield Corporate Bond Fund		12,387		1,156,327
iShares iBoxx $ Investment Grade Corporate Bond Fund		37,562		4,544,626
iShares S&P/Citigroup International Treasury Bond Fund		8,862		911,900
Peritus High Yield ETF		36,533		1,829,207
PIMCO 1 – 5 Year US TIPS Index Fund		16,942		915,885
PowerShares Build America Bond Portfolio		30,552		923,893
PowerShares Emerging Markets Sovereign Debt Portfolio		44,232		1,391,096
PowerShares Insured National Municipal Bond Portfolio		26,687		687,190
PowerShares International Corporate Bond Portfolio		54,930		1,626,477
SPDR DB International Government Inflation-Protected
Bond ETF		14,559		925,079
Vanguard Intermediate-Term Government Bond ETF		10,440		682,776
Vanguard Long-Term Government Bond ETF		8,964		674,989
Vanguard Mortgage-Backed Securities ETF		52,510		2,743,122
Vanguard Short-Term Bond ETF		5,712		462,615
Vanguard Short-Term Government Bond ETF		4,073		248,005
WisdomTree Emerging Markets Corporate Bond Fund		14,268		1,152,997
Total Debt Fund				20,876,184
Equity Fund — 4.9%
PowerShares Financial Preferred Portfolio		61,485		1,123,331
Total Exchange Traded Funds (Cost $21,932,557)				22,926,979
MONEY MARKET FUND — 1.0%
Fidelity Institutional Prime Money Market Portfolio – Class I
(Cost $239,265)		239,265		239,265
Total Investments — 100.0%
(Cost $22,171,822)				23,166,244
Other Assets in Excess of Liabilities — 0.0%†				2,919
Net Assets — 100.0%			$	23,169,163

ETF  — Exchange Traded Fund

TIPS  — Treasury Inflation Protected Securities

† Less than 0.05%

See accompanying Notes to Financial Statements.

40

ADVISORSHARES TRUST
MADRONA GLOBAL BOND ETF
Schedule of Investments (continued)

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Asset Allocation Fund		4.0	%
Debt Fund		90.1
Equity Fund		4.9
Money Market Fund		1.0
Total Investments		100.0
Other Assets in Excess of Liabilities		—	†
Net Assets		100.0	%

† Less than 0.05%

See accompanying Notes to Financial Statements.

41

ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments

December 31, 2012 (Unaudited)

Investments	Shares		Value
COMMON STOCKS — 99.2%
Advertising — 1.6%
Focus Media Holding Ltd. (China)(a)		3,950	$	101,436
Publicis Groupe SA (France)(a)		4,506		68,311
WPP PLC (Jersey Islands)*(a)		872		63,569
Total Advertising				233,316
Aerospace/Defense — 1.3%
Finmeccanica SpA (Italy)*(a)		36,429		103,823
Safran SA (France)(a)		1,944		84,078
Total Aerospace/Defense				187,901
Agriculture — 0.5%
British American Tobacco PLC (United Kingdom)(a)		336		34,020
Imperial Tobacco Group PLC (United Kingdom)(a)		536		41,535
Total Agriculture				75,555
Airlines — 1.1%
China Eastern Airlines Corp. Ltd. (China)*(a)		5,673		114,027
Ryanair Holdings PLC (Ireland)(a)		1,327		45,490
Total Airlines				159,517
Apparel — 0.6%
Burberry Group PLC (United Kingdom)(a)		1,171		47,753
Gildan Activewear, Inc. (Canada)		1,270		46,457
Total Apparel				94,210
Auto Manufacturers — 3.9%
BYD Co. Ltd. (China)*(a)		2,784		16,871
Daimler AG (Germany)(a)		977		53,442
Fiat SpA (Italy)*(a)		17,924		91,412
Honda Motor Co. Ltd. (Japan)(a)		2,981		110,118
Nissan Motor Co. Ltd. (Japan)(a)		5,122		97,779
Tata Motors Ltd. (India)(a)		3,505		100,664
Toyota Motor Corp. (Japan)(a)		1,187		110,688
Total Auto Manufacturers				580,974
Auto Parts & Equipment — 3.1%
Bridgestone Corp. (Japan)(a)		2,076		107,267
Cie Generale des Etablissements Michelin (France)(a)		5,273		101,189
Denso Corp. (Japan)(a)		4,291		74,663
Magna International, Inc. (Canada)		1,847		92,387
Valeo SA (France)(a)		3,348		86,044
Total Auto Parts & Equipment				461,550

See accompanying Notes to Financial Statements.

42

ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares		Value
Banks — 12.2%
Akbank TAS (Turkey)(a)		5,877	$	59,064
Australia & New Zealand Banking Group Ltd. (Australia)(a)		497		13,101
Banco Bilbao Vizcaya Argentaria SA (Spain)(a)		1,227		11,558
Banco Bradesco SA (Brazil)(a)		4,020		69,827
Banco de Chile (Chile)(a)		431		41,592
Banco do Brasil SA (Brazil)(a)		5,672		71,864
Banco Santander Chile (Chile)(a)		1,524		43,419
Banco Santander SA (Spain)(a)		8,629		70,499
Bancolombia SA (Colombia)(a)		1,285		85,555
Bank Mandiri Persero Tbk PT (Indonesia)(a)		10,146		85,064
BNP Paribas SA (France)(a)		2,095		61,195
BOC Hong Kong Holdings Ltd. (Hong Kong)(a)		608		38,334
China Construction Bank Corp. (China)(a)		5,954		96,633
Credit Suisse Group AG (Switzerland)(a)		4,157		102,096
DBS Group Holdings Ltd. (Singapore)(a)		1,170		57,400
Hachijuni Bank Ltd. (The) (Japan)(a)		201		10,169
HSBC Holdings PLC (United Kingdom)(a)		1,344		71,326
ICICI Bank Ltd. (India)(a)		1,649		71,913
Intesa Sanpaolo SpA (Italy)(a)		8,062		85,780
Itau Unibanco Holding SA (Brazil)(a)		5,364		88,291
Kasikornbank PCL (Thailand)(a)		4,100		105,165
Lloyds Banking Group PLC (United Kingdom)*(a)		24,734		79,149
Royal Bank of Scotland Group PLC (United Kingdom)*(a)		10,275		110,867
Sberbank of Russia (Russia)(a)		6,868		86,262
Societe Generale SA (France)*(a)		12,333		96,444
Turkiye Garanti Bankasi As (Turkey)(a)		7,799		40,555
United Overseas Bank Ltd. (Singapore)(a)		2,316		76,081
Total Banks				1,829,203
Beverages — 3.0%
Anheuser-Busch InBev NV (Belgium)(a)		684		59,788
Cia de Bebidas das Americas (Brazil)(a)		297		12,471
Coca-Cola Femsa SAB de CV (Mexico)(a)		122		18,183
Coca-Cola Hellenic Bottling Co. SA (Greece)(a)		729		17,182
Cott Corp. (Canada)		10,826		86,933
Diageo PLC (United Kingdom)(a)		370		43,135
Fomento Economico Mexicano SAB de CV (Mexico)(a)		300		30,210
Heineken NV (Netherlands)*(a)		1,425		47,837
Kirin Holdings Co. Ltd. (Japan)(a)		6,559		76,937
SABMiller PLC (United Kingdom)(a)		1,167		54,604
Total Beverages				447,280

See accompanying Notes to Financial Statements.

43

ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares		Value
Biotechnology — 0.3%
CSL Ltd. (Australia)(a)		1,495	$	42,383
Building Materials — 2.0%
CRH PLC (Ireland)(a)		4,284		87,137
James Hardie Industries PLC (Ireland)(a)		781		38,058
Lafarge SA (France)(a)		6,030		97,686
LIXIL Group Corp. (Japan)(a)		1,893		84,257
Total Building Materials				307,138
Chemicals — 4.6%
Agrium, Inc. (Canada)		291		29,074
Air Liquide SA (France)(a)		576		14,659
Akzo Nobel NV (Netherlands)(a)		3,905		87,863
BASF SE (Germany)(a)		135		12,825
Israel Chemicals Ltd. (Israel)(a)		5,662		68,737
Lonza Group AG (Switzerland)(a)		13,506		73,067
Methanex Corp. (Canada)		3,487		111,131
Nitto Denko Corp. (Japan)(a)		3,710		92,119
Shin-Etsu Chemical Co. Ltd. (Japan)(a)		2,824		42,868
Sociedad Quimica y Minera de Chile SA (Chile)(a)		699		40,290
Syngenta AG (Switzerland)(a)		422		34,098
Ultrapar Participacoes SA (Brazil)(a)		1,099		24,486
Yara International ASA (Norway)(a)		1,278		63,568
Total Chemicals				694,785
Commercial Services — 2.2%
Bunzl PLC (United Kingdom)(a)		239		19,717
Cielo SA (Brazil)(a)		2,165		62,460
Experian PLC (Jersey Islands)(a)		1,666		26,756
Intertek Group PLC (United Kingdom)(a)		1,075		54,152
Secom Co. Ltd. (Japan)(a)		7,035		88,219
SGS SA (Switzerland)(a)		1,852		41,263
Stantec, Inc. (Canada)		807		32,361
Total Commercial Services				324,928
Computers — 1.1%
Indra Sistemas SA (Spain)(a)		2,981		19,466
Infosys Ltd. (India)(a)		1,239		52,410
Lenovo Group Ltd. (Hong Kong)(a)		5,268		96,404
Total Computers				168,280

See accompanying Notes to Financial Statements.

44

ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares		Value
Cosmetics/Personal Care — 1.1%
Kao Corp. (Japan)(a)		1,290	$	33,501
L'Oreal SA (France)(a)		615		17,208
Shiseido Co. Ltd. (Japan)(a)		5,428		76,372
Unicharm Corp. (Japan)(a)		4,170		43,493
Total Cosmetics/Personal Care				170,574
Distribution/Wholesale — 2.0%
ITOCHU Corp. (Japan)(a)		4,923		104,319
Mitsubishi Corp. (Japan)(a)		2,326		89,667
Mitsui & Co. Ltd. (Japan)(a)		338		101,569
Total Distribution/Wholesale				295,555
Diversified Financial Services — 1.9%
Deutsche Boerse AG (Germany)(a)		1,767		10,920
Julius Baer Group Ltd. (Switzerland)(a)		4,630		32,642
Nomura Holdings, Inc. (Japan)(a)		25,422		149,227
ORIX Corp. (Japan)(a)		1,625		92,040
Total Diversified Financial Services				284,829
Electric — 3.0%
AGL Energy Ltd. (Australia)(a)		2,714		43,723
Cia Energetica de Minas Gerais (Brazil)(a)		5,692		61,815
CPFL Energia SA (Brazil)(a)		1,449		30,371
EDF SA (France)(a)		17,277		64,098
Federal Hydrogenerating Co. JSC (Russia)(a)		22,562		53,043
GDF Suez (France)(a)		1,837		38,650
Huaneng Power International, Inc. (China)(a)		3,137		116,540
SSE PLC (United Kingdom)(a)		1,048		24,376
Tractebel Energia SA (Brazil)(a)		1,210		19,590
Total Electric				452,206
Electrical Components & Equipment — 0.6%
Nidec Corp. (Japan)(a)		2,766		40,301
Schneider Electric SA (France)(a)		3,059		45,242
Total Electrical Components & Equipment				85,543
Electronics — 2.3%
Celestica, Inc., Class W (Canada)*		9,643		78,590
Hoya Corp. (Japan)(a)		3,515		68,999
Imax Corp. (Canada)*		1,718		38,621
Koninklijke Philips Electronics NV, Class Y (Netherlands)		2,491		66,111
Kyocera Corp. (Japan)(a)		209		19,092

See accompanying Notes to Financial Statements.

45

ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares		Value
Electronics — 2.3% (continued)
LG Display Co. Ltd. (South Korea)(a)		895	$	12,960
Panasonic Corp. (Japan)(a)		8,193		49,732
Sony Corp. (Japan)(a)		1,156		12,947
Total Electronics				347,052
Engineering & Construction — 0.6%
ABB Ltd. (Switzerland)(a)		1,957		40,686
JGC Corp. (Japan)(a)		806		50,447
Total Engineering & Construction				91,133
Food — 2.3%
BRF – Brasil Foods SA (Brazil)(a)		2,315		48,870
Carrefour SA (France)(a)		9,819		50,568
Cencosud SA (Chile)(a)		2,751		44,924
Cia Brasileira de Distribuicao Grupo Pao de Acucar (Brazil)(a)		1,233		54,733
Koninklijke Ahold NV (Netherlands)(a)		4,226		57,474
Tesco PLC (United Kingdom)(a)		825		13,678
Unilever NV (Netherlands)		614		23,516
William Morrison Supermarkets PLC (United Kingdom)(a)		2,343		50,093
Total Food				343,856
Food Service — 0.2%
Compass Group PLC (United Kingdom)(a)		3,087		36,982
Forest Products & Paper — 1.2%
Stora ENSO OYJ (Finland)(a)		12,070		83,887
Svenska Cellulosa AB (Sweden)(a)		4,640		101,987
Total Forest Products & Paper				185,874
Gas — 0.2%
PT Perusahaan Gas Negara (Indonesia)(a)		1,376		32,088
Hand/Machine Tools — 0.5%
Techtronic Industries Co. (Hong Kong)(a)		8,227		77,005
Healthcare — Products — 0.9%
Essilor International SA (France)(a)		597		30,555
Getinge AB (Sweden)(a)		1,657		56,338
Smith & Nephew PLC (United Kingdom)(a)		291		16,121
Sysmex Corp. (Japan)(a)		1,185		27,255
Total Healthcare – Products				130,269

See accompanying Notes to Financial Statements.

46

ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares		Value
Healthcare – Services — 0.5%
ICON PLC (Ireland)*(a)		2,744	$	76,173
Holding Companies – Diversified — 1.8%
Hutchison Whampoa Ltd. (Hong Kong)(a)		3,075		65,129
Keppel Corp. Ltd. (Singapore)(a)		1,686		30,786
KOC Holding AS (Turkey)(a)		4,435		116,020
LVMH Moet Hennessy Louis Vuitton SA (France)(a)		1,402		52,841
Total Holding Companies – Diversified				264,776
Home Builders — 0.7%
Sekisui House Ltd. (Japan)(a)		9,585		104,189
Household Products/Wares — 0.1%
Kimberly-Clark de Mexico SAB de CV (Mexico)(a)		1,514		19,531
Insurance — 6.2%
Aegon NV, Class G (Netherlands)		14,611		94,095
Ageas (Belgium)(a)		3,923		118,671
AXA SA (France)(a)		4,065		74,064
China Life Insurance Co. Ltd. (China)(a)		1,300		64,597
ING Groep NV (Netherlands)*(a)		11,048		104,845
MS&AD Insurance Group Holdings (Japan)(a)		9,534		94,387
Ping An Insurance Group Co. of China Ltd. (China)(a)		4,827		82,976
Prudential PLC (United Kingdom)(a)		1,889		53,931
Sun Life Financial, Inc. (Canada)		252		6,686
Swiss Re AG (Switzerland)(a)		1,303		94,207
Tokio Marine Holdings, Inc. (Japan)(a)		2,658		73,999
Zurich Insurance Group AG (Switzerland)(a)		2,678		71,770
Total Insurance				934,228
Internet — 1.2%
Baidu, Inc. (Cayman Islands)*(a)		726		72,811
NetEase.com (Cayman Islands)*(a)		1,349		57,400
Tencent Holdings Ltd. (Cayman Islands)(a)		1,470		47,995
Total Internet				178,206
Iron/Steel — 0.9%
ArcelorMittal (Luxembourg)		1,725		30,135
Gerdau SA (Brazil)(a)		1,521		13,674
Rio Tinto PLC (United Kingdom)(a)		1,688		98,056
Total Iron/Steel				141,865

See accompanying Notes to Financial Statements.

47

ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares		Value
Leisure Time — 0.1%
Carnival PLC (United Kingdom)(a)		450	$	17,437
Lodging — 0.7%
Melco Crown Entertainment Ltd., Class Participation Certificate (Hong Kong)*(a)		5,786		97,436
Machinery – Diversified — 1.0%
Alstom SA (France)(a)		25,378		101,258
Kubota Corp. (Japan)(a)		933		53,760
Total Machinery – Diversified				155,018
Media — 1.6%
British Sky Broadcasting Group PLC (United Kingdom)(a)		1,196		60,266
Grupo Televisa SA (Mexico)(a)		1,500		39,870
Jupiter Telecommunications Co. Ltd. (Japan)(a)		1,698		21,140
Naspers Ltd., Class N (South Africa)(a)		390		25,350
Pearson PLC (United Kingdom)(a)		877		17,137
Reed Elsevier NV (Netherlands)(a)		810		23,960
Reed Elsevier PLC (United Kingdom)(a)		521		21,903
Wolters Kluwer NV (Netherlands)(a)		1,811		37,433
Total Media				247,059
Metal Fabricate/Hardware — 1.0%
Assa Abloy AB (Sweden)(a)		3,301		61,101
Tenaris SA (Luxembourg)(a)		2,266		94,991
Total Metal Fabricate/Hardware				156,092
Mining — 4.8%
AngloGold Ashanti Ltd. (South Africa)(a)		1,863		58,442
BHP Billiton Ltd. (Australia)(a)		299		23,454
BHP Billiton PLC (United Kingdom)(a)		970		68,259
Cameco Corp. (Canada)		985		19,424
Gold Fields Ltd. (South Africa)(a)		6,472		80,835
Impala Platinum Holdings Ltd. (South Africa)(a)		1,046		20,868
Kinross Gold Corp. (Canada)		2,475		24,057
Newcrest Mining Ltd. (Australia)(a)		2,881		68,020
Polyus Gold International Ltd. (United Kingdom)(b)		27,750		91,020
Randgold Resources Ltd. (Jersey Islands)(a)		603		59,848
Silver Wheaton Corp. (Canada)		2,373		85,618
Sterlite Industries India Ltd. (India)(a)		12,610		108,572
Yamana Gold, Inc. (Canada)		656		11,290
Total Mining				719,707

See accompanying Notes to Financial Statements.

48

ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares		Value
Miscellaneous Manufacturing — 1.4%
FUJIFILM Holdings Corp. (Japan)(a)		4,465	$	89,434
Siemens AG (Germany)(a)		494		54,078
Smiths Group PLC (United Kingdom)(a)		3,414		68,314
Total Miscellaneous Manufacturing				211,826
Office/Business Equipment — 0.3%
Canon, Inc. (Japan)(a)		1,241		48,660
Oil & Gas — 3.2%
BG Group PLC (Luxembourg)(a)		3,084		51,534
China Petroleum & Chemical Corp. (China)(a)		280		32,178
CNOOC Ltd. (Hong Kong)(a)		100		22,000
Ecopetrol SA (Colombia)(a)		1,397		83,359
Enerplus Corp. (Canada)		4,605		59,681
Eni SpA (Italy)(a)		1,144		56,216
Petroleo Brasileiro SA (Brazil)(a)		975		18,983
Repsol YPF SA (Spain)(a)		3,640		76,076
Sasol Ltd. (South Africa)(a)		637		27,576
Total SA (France)(a)		447		23,248
Woodside Petroleum Ltd. (Australia)(a)		691		24,696
Total Oil & Gas				475,547
Oil & Gas Services — 1.1%
Subsea 7 SA (Luxembourg)(a)		4,090		99,019
Technip SA (France)(a)		2,267		66,808
Total Oil & Gas Services				165,827
Packaging & Containers — 0.2%
Rexam PLC (United Kingdom)(a)		707		25,268
Pharmaceuticals — 3.4%
Astellas Pharma, Inc. (Japan)(a)		1,157		51,891
Daiichi Sankyo Co. Ltd. (Japan)(a)		5,754		87,691
GlaxoSmithKline PLC (United Kingdom)(a)		657		28,560
Grifols SA (Spain)*(a)		3,056		79,242
Novartis AG (Switzerland)(a)		186		11,774
NOVO Nordisk A/S (Denmark)(a)		277		45,209
Roche Holding AG (Switzerland)(a)		715		36,108
Shire PLC (Jersey Islands)(a)		638		58,811
Teva Pharmaceutical Industries Ltd. (Israel)(a)		1,302		48,617
Valeant Pharmaceuticals International, Inc. (Canada)*		1,133		67,719
Total Pharmaceuticals				515,622

See accompanying Notes to Financial Statements.

49

ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares		Value
Retail — 1.5%
Hennes & Mauritz AB (Sweden)(a)		2,639	$	18,235
Inditex SA (Spain)(a)		1,524		43,480
Kingfisher PLC (United Kingdom)(a)		4,807		44,417
Marks & Spencer Group PLC (United Kingdom)(a)		1,872		23,325
Swatch Group AG (The) (Switzerland)(a)		2,917		74,092
Wal-Mart de Mexico SAB de CV (Mexico)(a)		492		16,128
Total Retail				219,677
Semiconductors — 2.1%
Advanced Semiconductor Engineering, Inc. (Taiwan)(a)		17,910		76,655
ARM Holdings PLC (United Kingdom)(a)		830		31,399
ASML Holding NV (Netherlands)		451		29,049
CSR PLC (United Kingdom)(a)		3,573		77,427
ROHM Co. Ltd. (Japan)(a)		2,858		46,700
Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan)(a)		3,003		51,531
Total Semiconductors				312,761
Software — 0.6%
Dassault Systemes SA (France)(a)		269		30,421
Open Text Corp. (Canada)*		1,096		61,234
Total Software				91,655
Telecommunications — 7.6%
BT Group PLC (United Kingdom)(a)		870		33,086
China Telecom Corp. Ltd. (China)(a)		761		43,263
China Unicom Ltd. (Hong Kong)(a)		4,009		65,307
Deutsche Telekom AG (Germany)(a)		4,690		53,288
Hellenic Telecommunications Organization SA (Greece)*(a)		40,833		139,975
KDDI Corp. (Japan)(a)		3,964		69,846
Mobile TeleSystems (Russia)(a)		1,457		27,173
MTN Group Ltd. (South Africa)(a)		4,229		90,712
Nippon Telegraph & Telephone Corp. (Japan)(a)		2,445		51,418
NTT DoCoMo, Inc. (Japan)(a)		1,556		22,422
PT Telekomunikasi Indonesia Tbk (Indonesia)(a)		818		30,225
Soft Bank Corp. (Japan)(a)		3,883		70,476
Swisscom AG (Switzerland)(a)		1,895		81,959
Telecom Corp. of New Zealand Ltd. (New Zealand)(a)		3,304		30,595
Telefonaktiebolaget LM Ericsson (Sweden)(a)		3,597		36,330
Telefonica Brasil SA (Brazil)(a)		1,804		43,404
Telstra Corp. Ltd. (Australia)(a)		913		20,771
Tim Participacoes SA (Brazil)(a)		3,794		75,197
Turkcell Iletisim Hizmetleri AS (Turkey)*(a)		3,188		51,454

See accompanying Notes to Financial Statements.

50

ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares		Value
Telecommunications — 7.6% (continued)
VimpelCom Ltd. (Bermuda)(a)		8,204	$	86,060
Vodafone Group PLC (United Kingdom)(a)		517		13,023
Total Telecommunications				1,135,984
Transportation — 1.8%
Canadian Pacific Railway Ltd. (Canada)		563		57,212
Deutsche Post AG (Germany)(a)		2,711		59,967
East Japan Railway Co. (Japan)(a)		7,372		79,175
TNT Express NV (Netherlands)(a)		7,049		79,936
Total Transportation				276,290
Water — 1.1%
Cia de Saneamento Basico do Estado de Sao Paulo (Brazil)(a)		859		71,787
Veolia Environnement SA (France)(a)		7,605		93,085
Total Water				164,872
Total Common Stocks (Cost $13,613,702)				14,895,692
MONEY MARKET FUND — 0.9%
Fidelity Institutional Prime Money Market Portfolio – Class I (Cost $125,763)		125,763		125,763
Total Investments — 100.1% (Cost $13,739,465)				15,021,455
Liabilities in Excess of Other Assets — (0.1)%				(10,588	)
Net Assets — 100.0%			$	15,010,867

PLC — Public Limited Company

(a) American Depositary Receipt

(b) Global Depositary Receipt

* Non-income producing security

See accompanying Notes to Financial Statements.

51

ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Advertising		1.6	%
Aerospace/Defense		1.3
Agriculture		0.5
Airlines		1.1
Apparel		0.6
Auto Manufacturers		3.9
Auto Parts & Equipment		3.1
Banks		12.2
Beverages		3.0
Biotechnology		0.3
Building Materials		2.0
Chemicals		4.6
Commercial Services		2.2
Computers		1.1
Cosmetics/Personal Care		1.1
Distribution/Wholesale		2.0
Diversified Financial Services		1.9
Electric		3.0
Electrical Components & Equipment		0.6
Electronics		2.3
Engineering & Construction		0.6
Food		2.3
Food Service		0.2
Forest Products & Paper		1.2
Gas		0.2
Hand/Machine Tools		0.5
Healthcare – Products		0.9
Healthcare – Services		0.5
Holding Companies – Diversified		1.8
Home Builders		0.7
Household Products/Wares		0.1
Insurance		6.2
Internet		1.2
Iron/Steel		0.9
Leisure Time		0.1
Lodging		0.7
Machinery – Diversified		1.0
Media		1.6
Metal Fabricate/Hardware		1.0
Mining		4.8
Miscellaneous Manufacturing		1.4
Office/Business Equipment		0.3

See accompanying Notes to Financial Statements.

52

ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)

	% of Net Assets
Oil & Gas		3.2	%
Oil & Gas Services		1.1
Packaging & Containers		0.2
Pharmaceuticals		3.4
Retail		1.5
Semiconductors		2.1
Software		0.6
Telecommunications		7.6
Transportation		1.8
Water		1.1
Money Market Fund		0.9
Total Investments		100.1
Liabilities in Excess of Other Assets		(0.1	)
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

53

ADVISORSHARES TRUST
MEIDELL TACTICAL ADVANTAGE ETF
Schedule of Investments

December 31, 2012 (Unaudited)

Investments	Shares		Value
EXCHANGE TRADED FUNDS — 98.2%
Equity Fund — 98.2%
Guggenheim S&P Equal Weight ETF		12,857	$	685,535
iShares MSCI EAFE Index Fund		12,773		725,762
iShares MSCI Emerging Markets Index		16,541		733,593
iShares S&P 500 Value Index Fund		10,243		680,033
iShares S&P Europe 350 Index Fund		8,792		345,526
iShares S&P MidCap 400 Growth Index Fund		5,875		672,159
iShares S&P MidCap 400 Value Index Fund		7,819		689,167
iShares S&P SmallCap 600 Value Index Fund		8,466		684,984
SPDR S&P International Small Cap ETF		12,244		348,342
SPDR S&P MidCap 400 ETF Trust		3,750		696,412
Vanguard FTSE All-World ex-US Index Fund		15,671		716,948
Total Exchange Traded Funds (Cost $6,771,559)				6,978,461
MONEY MARKET FUND — 3.0%
Dreyfus Institutional Reserves Treasury Fund – Institutional Class (Cost $212,171)		212,171		212,171
Total Investments — 101.2% (Cost $6,983,730)				7,190,632
Liabilities in Excess of Other Assets — (1.2)%				(82,456	)
Net Assets — 100.0%			$	7,108,176

ETF  — Exchange Traded Fund

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Equity Fund		98.2	%
Money Market Fund		3.0
Total Investments		101.2
Liabilities in Excess of Other Assets		(1.2	)
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

54

ADVISORSHARES TRUST
PERITUS HIGH YIELD ETF
Schedule of Investments

December 31, 2012 (Unaudited)

Investments	Shares		Value
CORPORATE BONDS — 84.9%
Advertising — 3.0%
Affinion Group, Inc., 7.88%, 12/15/18		4,405,000	$	3,380,837
Sitel Worldwide Corp., 11.00%, 08/01/17‡		1,850,000		1,887,000
Total Advertising				5,267,837
Aerospace/Defense — 1.5%
Ducommun, Inc., 9.75%, 07/15/18		2,531,000		2,733,480
Auto Manufacturers — 2.1%
Navistar International Corp., 8.25%, 11/01/21		3,773,000		3,659,810
Auto Parts & Equipment — 2.2%
Exide Technologies, 8.63%, 02/01/18		4,482,000		3,820,905
Beverages — 3.7%
CEDC Finance Corp. International, Inc., 9.13%, 12/01/16‡		4,900,000		2,989,000
Innovation Ventures LLC / Innovation Ventures Finance Corp., 9.50%, 08/15/19‡		3,825,000		3,614,625
Total Beverages				6,603,625
Chemicals — 1.9%
Phibro Animal Health Corp., 9.25%, 07/01/18‡		3,330,000		3,346,650
Commercial Services — 7.3%
DynCorp International, Inc., 10.38%, 07/01/17		4,829,000		4,442,680
Harland Clarke Holdings Corp., 9.50%, 05/15/15		4,205,000		3,900,137
Harland Clarke Holdings Corp., 9.75%, 08/01/18‡		1,200,000		1,173,000
Logo Merger Sub Corp., 8.38%, 10/15/20‡		3,425,000		3,459,250
Total Commercial Services				12,975,067
Computers — 4.0%
j2 Global, Inc., 8.00%, 08/01/20		1,220,000		1,274,900
Spansion LLC, 7.88%, 11/15/17		3,250,000		3,347,500
Stream Global Services, Inc., 11.25%, 10/01/14		2,351,000		2,468,550
Total Computers				7,090,950
Diversified Financial Services — 2.2%
GFI Group, Inc., 8.63%, 07/19/18		4,425,000		3,905,063
Electrical Components & Equipment — 2.0%
Advanced Lighting Technologies, Inc., 10.50%, 06/01/19‡		3,600,000		3,582,000
Electronics — 6.3%
KEMET Corp., 10.50%, 05/01/18		1,900,000		1,883,375
Sanmina-SCI Corp., 7.00%, 05/15/19‡		3,930,000		4,028,250
Stoneridge, Inc., 9.50%, 10/15/17‡		1,740,000		1,861,800
Viasystems, Inc., 7.88%, 05/01/19‡		3,350,000		3,299,750
Total Electronics				11,073,175

See accompanying Notes to Financial Statements.

55

ADVISORSHARES TRUST
PERITUS HIGH YIELD ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares		Value
Environmental Control — 4.4%
Casella Waste Systems, Inc., 7.75%, 02/15/19		4,114,000	$	3,928,870
EnergySolutions, Inc./EnergySolutions LLC, 10.75%, 08/15/18		4,050,000		3,847,500
Total Environmental Control				7,776,370
Food — 6.5%
Bumble Bee Acquisition Corp., 9.00%, 12/15/17‡		2,572,000		2,777,760
Chiquita Brands International, Inc., 7.50%, 11/01/14		1,820,000		1,831,375
Harmony Foods Corp., 10.00%, 05/01/16‡		2,830,000		3,063,475
SUPERVALU, Inc., 8.00%, 05/01/16		3,935,000		3,767,762
Total Food				11,440,372
Forest Products & Paper — 2.0%
Exopack Holding Corp., 10.00%, 06/01/18		3,904,000		3,552,640
Healthcare – Products — 5.3%
Kinetic Concepts, Inc., 12.50%, 11/01/19‡		4,665,000		4,484,231
Rotech Healthcare, Inc., 10.75%, 10/15/15		4,885,000		4,897,213
Total Healthcare – Products				9,381,444
Healthcare – Services — 11.2%
Alliance Healthcare Services, Inc., 8.00%, 12/01/16		3,810,000		3,486,150
Apria Healthcare Group, Inc., 11.25%, 11/01/14		3,625,000		3,756,406
Kindred Healthcare, Inc., 8.25%, 06/01/19		3,590,000		3,509,225
Radiation Therapy Services, Inc., 8.88%, 01/15/17		3,960,000		3,900,600
Radnet Management, Inc., 10.38%, 04/01/18		3,205,000		3,277,113
Select Medical Holdings Corp., 6.43%, 09/15/15@		1,925,000		1,927,406
Total Healthcare – Services				19,856,900
Leisure Time — 2.0%
ICON Health & Fitness, 11.88%, 10/15/16‡		3,850,000		3,619,000
Miscellaneous Manufacturing — 1.7%
JB Poindexter & Co., Inc., 9.00%, 04/01/22‡		2,965,000		3,079,894
Oil & Gas — 6.5%
Quicksilver Resources, Inc., 11.75%, 01/01/16		3,900,000		3,870,750
Seitel, Inc., 9.75%, 02/15/14		3,828,000		3,856,710
Venoco, Inc., 11.50%, 10/01/17		3,625,000		3,815,313
Total Oil & Gas				11,542,773
Retail — 4.0%
Ferrellgas Partners LP, 8.63%, 06/15/20		3,350,000		3,366,750
RadioShack Corp., 6.75%, 05/15/19		5,792,000		3,677,920
Total Retail				7,044,670
Storage/Warehousing — 0.5%
Niska Gas Storage Partners LLC, 8.88%, 03/15/18		900,000		929,250

See accompanying Notes to Financial Statements.

56

ADVISORSHARES TRUST
PERITUS HIGH YIELD ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares		Value
Telecommunications — 3.9%
Cincinnati Bell, Inc., 8.75%, 03/15/18		3,605,000	$	3,740,187
EarthLink, Inc., 8.88%, 05/15/19		3,015,000		3,173,288
Total Telecommunications				6,913,475
Transportation — 0.7%
PHI, Inc., 8.63%, 10/15/18		1,185,000		1,273,875
Total Corporate Bonds (Cost $150,043,686)				150,469,225
FOREIGN BONDS — 12.8%
Airlines — 2.5%
Air Canada, 12.00%, 02/01/16 (Canada)‡		4,319,711		4,481,700
Healthcare – Products — 1.1%
Angiotech Pharmaceuticals, Inc., 9.00%, 12/01/16 (Canada)		1,950,000		1,971,938
Oil & Gas — 3.2%
Connacher Oil And Gas Ltd., 8.50%, 08/01/19 (Canada)‡		4,450,000		3,070,500
Welltec A/S, 8.00%, 02/01/19 (Denmark)‡		2,360,000		2,513,400
Total Oil & Gas				5,583,900
Transportation — 6.0%
CHC Helicopter SA, 9.25%, 10/15/20 (Luxembourg)		3,536,000		3,739,320
Navios Maritime Holdings, Inc., 8.13%, 02/15/19 (Marshall Islands)		4,297,000		3,759,875
Ship Finance International Ltd., 8.50%, 12/15/13 (Bermuda)		3,055,000		3,074,094
Total Transportation				10,573,289
Total Foreign Bonds (Cost $22,771,483)				22,610,827
MONEY MARKET FUND — 0.1%
BlackRock Liquidity Funds TempFund Portfolio – Dollar Class (Cost $231,083)		231,083		231,083
Total Investments — 97.8% (Cost $173,046,252)				173,311,135
Other Assets in Excess of Liabilities — 2.2%				3,904,477
Net Assets — 100.0%			$	177,215,612

‡ Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may not be resold subject to that rule except to qualified institutional buyers. Unless otherwise noted, 144A securities are deemed to be liquid.

@ Variable rate instrument. The interest rate shown reflects the rate in effect at December 31, 2012.

See accompanying Notes to Financial Statements.

57

ADVISORSHARES TRUST
PERITUS HIGH YIELD ETF
Schedule of Investments (continued)

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Advertising		3.0	%
Aerospace/Defense		1.5
Airlines		2.5
Auto Manufacturers		2.1
Auto Parts & Equipment		2.2
Beverages		3.7
Chemicals		1.9
Commercial Services		7.3
Computers		4.0
Diversified Financial Services		2.2
Electrical Components & Equipment		2.0
Electronics		6.3
Environmental Control		4.4
Food		6.5
Forest Products & Paper		2.0
Healthcare – Products		6.4
Healthcare – Services		11.2
Leisure Time		2.0
Miscellaneous Manufacturing		1.7
Oil & Gas		9.7
Retail		4.0
Storage/Warehousing		0.5
Telecommunications		3.9
Transportation		6.7
Money Market Fund		0.1
Total Investments		97.8
Other Assets in Excess of Liabilities		2.2
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

58

ADVISORSHARES TRUST
PRING TURNER BUSINESS CYCLE ETF
Schedule of Investments

December 31, 2012 (Unaudited)

Investments	Shares		Value
COMMON STOCKS — 61.6%
Aerospace/Defense — 1.7%
Raytheon Co.		752	$	43,285
Banks — 3.8%
Royal Bank of Canada (Canada)		832		50,170
Wells Fargo & Co.		1,272		43,477
Total Banks				93,647
Chemicals — 3.6%
Monsanto Co.		480		45,432
Syngenta AG (Switzerland)(a)		536		43,309
Total Chemicals				88,741
Coal — 3.6%
Alliance Resource Partners, LP		808		46,921
Peabody Energy Corp.		1,648		43,853
Total Coal				90,774
Commercial Services — 1.6%
Paychex, Inc.		1,288		40,108
Electric — 1.7%
MDU Resources Group, Inc.		2,032		43,160
Holding Companies – Diversified — 2.0%
Leucadia National Corp.		2,112		50,244
Insurance — 3.5%
American International Group, Inc.*		1,248		44,054
Aon PLC (United Kingdom)		768		42,701
Total Insurance				86,755
Machinery – Diversified — 1.8%
Deere & Co.		504		43,556
Media — 3.5%
Comcast Corp., Class A		1,168		43,660
Shaw Communications, Inc., Class B (Canada)		1,936		44,489
Total Media				88,149

See accompanying Notes to Financial Statements.

59

ADVISORSHARES TRUST
PRING TURNER BUSINESS CYCLE ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares		Value
Mining — 7.2%
Franco-Nevada Corp. (Canada)		752	$	42,992
Freeport-McMoRan Copper & Gold, Inc.		1,296		44,323
Royal Gold, Inc.		536		43,582
Silver Wheaton Corp. (Canada)		1,352		48,780
Total Mining				179,677
Oil & Gas — 1.8%
Seadrill Ltd. (Norway)		1,184		43,571
Pharmaceuticals — 5.3%
Abbott Laboratories		672		44,016
Eli Lilly & Co.		904		44,585
Pfizer, Inc.		1,728		43,338
Total Pharmaceuticals				131,939
Pipelines — 1.8%
Kinder Morgan, Inc.		1,272		44,940
Real Estate Investment Trust — 3.7%
Lexington Realty Trust		4,416		46,147
Rayonier, Inc.		880		45,611
Total Real Estate Investment Trust				91,758
Retail — 2.0%
Lowe's Cos., Inc.		1,400		49,728
Semiconductors — 1.8%
Analog Devices, Inc.		1,040		43,742
Software — 1.7%
Microsoft Corp.		1,616		43,196
Telecommunications — 6.0%
AT&T, Inc.		1,280		43,149
BCE, Inc. (Canada)		490		21,040
Cisco Systems, Inc.		2,184		42,916
Verizon Communications, Inc.		992		42,924
Total Telecommunications				150,029

See accompanying Notes to Financial Statements.

60

ADVISORSHARES TRUST
PRING TURNER BUSINESS CYCLE ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares		Value
Transportation — 3.5%
Navios Maritime Partners, LP (Greece)		3,520	$	43,225
Union Pacific Corp.		344		43,248
Total Transportation				86,473
Total Common Stocks (Cost $1,546,738)				1,533,472
EXCHANGE TRADED FUNDS — 23.6%
Debt Fund — 15.1%
Guggenheim BulletShares 2015 High Yield Corporate Bond ETF		4,704		125,126
Peritus High Yield ETF†		2,496		124,975
PowerShares Senior Loan Portfolio		5,016		125,300
Total Debt Fund				375,401
Equity Fund — 8.5%
iShares MSCI Hong Kong Index Fund		2,264		43,967
iShares S&P Europe 350 Index Fund		1,128		44,331
SPDR Dow Jones International Real Estate ETF		1,184		48,958
SPDR S&P International Dividend ETF		1,584		76,111
Total Equity Fund				213,367
Total Exchange Traded Funds (Cost $589,115)				588,768
MONEY MARKET FUND — 14.7%
Dreyfus Government Cash Management – Investor Shares (Cost $365,232)		365,232		365,232
Total Investments — 99.9% (Cost $2,501,085)				2,487,472
Other Assets in Excess of Liabilities — 0.1%				3,406
Net Assets — 100.0%			$	2,490,878

ETF  — Exchange Traded Fund

LP  — Limited Partnership

PLC  — Public Limited Company

(a) American Depositary Receipt

* Non-income producing security

† Affiliated company (See Note 8).

See accompanying Notes to Financial Statements.

61

ADVISORSHARES TRUST
PRING TURNER BUSINESS CYCLE ETF
Schedule of Investments (continued)

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Aerospace/Defense		1.7	%
Banks		3.8
Chemicals		3.6
Coal		3.6
Commercial Services		1.6
Debt Fund		15.1
Electric		1.7
Equity Fund		8.5
Holding Companies – Diversified		2.0
Insurance		3.5
Machinery – Diversified		1.8
Media		3.5
Mining		7.2
Oil & Gas		1.8
Pharmaceuticals		5.3
Pipelines		1.8
Real Estate Investment Trust		3.7
Retail		2.0
Semiconductors		1.8
Software		1.7
Telecommunications		6.0
Transportation		3.5
Money Market		14.7
Total Investments		99.9
Other Assets in Excess of Liabilities		0.1
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

62

ADVISORSHARES TRUST
QAM EQUITY HEDGE ETF
Schedule of Investments

December 31, 2012 (Unaudited)

Investments	Shares		Value
EXCHANGE TRADED NOTE — 0.4%
Equity Fund — 0.4%
iPath MSCI India Index ETN (Cost $15,831)		295	$	17,547
EXCHANGE TRADED FUNDS — 72.7%
Asset Allocation Fund — 2.2%
Proshares Short Euro ETF*		2,178		81,980
Commodity Fund — 0.9%
SPDR Gold Shares*		217		35,156
Debt Fund — 19.5%
iShares Barclays Short Treasury Bond Fund		3,405		375,435
SPDR Barclays Capital 1 – 3 Month T-Bill ETF*		8,184		374,909
Total Debt Fund				750,344
Equity Fund — 50.1%
EGShares India Small Capital ETF		1,332		19,761
First Trust Dow Jones Internet Index Fund		2,081		81,097
Global X China Consumer ETF		1,224		18,201
Guggenheim China Real Estate ETF		722		16,498
Guggenheim China Small Capital ETF		2,966		71,154
Guggenheim Raymond James SB-1 Equity ETF		2,689		63,111
Guggenheim S&P 500 Equal Weight ETF		4,396		234,395
Guggenheim S&P 500 Equal Weight Financials ETF		5,289		154,235
Guggenheim S&P 500 Equal Weight Healthcare ETF		359		28,142
Guggenheim S&P 500 Equal Weight Technology ETF		182		10,059
Guggenheim S&P Midcap 400 Pure Growth ETF		558		50,923
iShares Dow Jones US Medical Devices Index Fund		587		39,681
iShares Dow Jones US Pharmaceuticals Index Fund		563		47,866
iShares MSCI Brazil Small Capital Index Fund		1,431		39,782
iShares MSCI EAFE Index Fund		1,513		85,969
iShares MSCI Emerging Markets Index Fund		912		40,447
iShares MSCI Europe Financial Sector Index Fund		540		10,692
iShares MSCI Pacific Ex-Japan Index Fund		926		43,652

See accompanying Notes to Financial Statements.

63

ADVISORSHARES TRUST
QAM EQUITY HEDGE ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares		Value
Equity Fund — 50.1% (continued)
iShares MSCI South Korea Index Fund		434	$	27,498
iShares MSCI Taiwan Index Fund		2,033		27,690
iShares MSCI Thailand Investable Market Index Fund		305		25,159
iShares MSCI U.K. Small Capital Index Fund		633		19,338
iShares MSCI United Kingdom Index Fund		3,228		57,910
iShares Russell 1000 Growth Index Fund		819		53,636
iShares Russell 1000 Value Index Fund		724		52,722
iShares Russell 2000 Value Index Fund		1,845		139,316
iShares Russell Microcap(R) Index Fund		933		48,749
iShares S&P Latin America 40 Index Fund		551		24,156
iShares S&P North American Natural Resources Sector Index Fund		3,421		130,545
iShares S&P/TOPIX 150 Index Fund		208		8,830
Market Vectors Indonesia Index ETF		220		6,301
Market Vectors Russia ETF		860		25,774
Market Vectors Uranium+Nuclear Energy ETF		2,173		29,901
PowerShares Dynamic Market Portfolio		771		37,609
SPDR Euro Stoxx 50 ETF		854		29,600
SPDR Russell/Nomura SmallCap Japan ETF		1,067		45,187
SPDR S&P Emerging Markets SmallCap ETF		1,582		73,785
Vanguard REIT ETF		100		6,580
Total Equity Fund				1,925,951
Total Exchange Traded Funds (Cost $2,715,388)				2,793,431
MONEY MARKET FUND — 27.0%
JP Morgan Prime Money Market Fund – Institutional Class, (Cost $1,035,686)		1,035,686		1,035,686
Total Investments Before Securities Sold, Not Yet Purchased (Cost $3,766,905)				3,846,664

See accompanying Notes to Financial Statements.

64

ADVISORSHARES TRUST
QAM EQUITY HEDGE ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares		Value
Equity Fund — 50.1% (continued)
Securities Sold, Not Yet Purchased — (1.5)%
EXCHANGE TRADED FUNDS — (1.5)%
Currency Fund — (1.3)%
Currency Shares British Pound Sterling Trust*		312	$	(50,142	)
Equity Fund — (0.2)%
iShares Russell 2000 Growth Index Fund		75		(7,148	)
Total Securities Sold, Not Yet Purchased [Proceeds Received $(55,826)]				(57,290	)
Total Investments – 98.6% (Cost $3,711,079)				3,789,374
Other Assets in Excess of Liabilities — 1.4%				52,307
Net Assets — 100.0%			$	3,841,681

ETF — Exchange Traded Fund

ETN — Exchange Traded Note

* Non-income producing security.

(a) All or a portion of the security is segregated as collateral in connection with swaps positions carried by the fund.

SUMMARY OF SCHEDULE OF INVESTMENTS	% of Net Assets
Asset Allocation Fund		2.2	%
Commodity Fund		0.9
Currency Fund		(1.3	)
Debt Fund		19.5
Equity Fund		50.3
Money Market Fund		27.0
Total Investments		98.6
Other Assets in Excess of Liabilities		1.4
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

65

Total Return Swaps contracts outstanding as of December 31, 2012

Reference Entity	Number of Contracts		Termination Date		Notional Amounts		Fair Value			Unrealized Appreciation/(Depreciation)
CECE Net Total Return Index		7		1/15/2013	$	19,194	$	20,647		$	1,453
Currency Shares Japanese Yen Trust		318		1/15/2013		37,877	$	(36,047	)		1,830
EURO STOXX Large Net Return USD		53		1/15/2013		23,964	$	(24,795	)		(831	)
EURO STOXX Mid Net Return		300		1/15/2013		113,139	$	117,715			4,576
Market Vectors Russia Small-Cap ETF		2,788		1/15/2013		40,459	$	42,495			2,036
Net Unrealized Appreciation										$	9,064

Cash held as collateral with broker for swap contracts was $54,918 at December 31, 2012.

Societe Generale acts as the counterparty to the total return swap contract listed above. The Fund either receives fees from, or pay fees to, the counterparty, depending upon the total return of the benchmark, and the agreed-upon financing rate.

See accompanying Notes to Financial Statements.

66

ADVISORSHARES TRUST
RANGER EQUITY BEAR ETF†
Schedule of Investments

December 31, 2012 (Unaudited)

Investments	Shares		Value
MONEY MARKET FUNDS — 46.2%
Fidelity Institutional Government Money Market Portfolio – Class III		51,157,432	$	51,157,432
Morgan Stanley Institutional Liquidity Funds – Government Portfolio		50,000,000		50,000,000
Total Investments Before Securities Sold, Not Yet Purchased (Cost $101,157,432)				101,157,432
Securities Sold, Not Yet Purchased — (96.5)%
COMMON STOCKS — (96.5)%
Aerospace/Defense — (2.1)%
Rockwell Collins, Inc.		80,500		(4,682,685	)
Apparel — (2.0)%
Coach, Inc.		80,500		(4,468,555	)
Auto Parts & Equipment — (6.5)%
Goodyear Tire & Rubber Co. (The)*		887,700		(12,259,137	)
Johnson Controls, Inc.		60,900		(1,869,630	)
Total Auto Parts & Equipment				(14,128,767	)
Banks — (3.2)%
Capital One Financial Corp.		38,200		(2,212,926	)
Deutsche Bank AG (Germany)(a)		107,300		(4,752,317	)
Total Banks				(6,965,243	)
Beverages — (3.5)%
Green Mountain Coffee Roasters, Inc.*		187,200		(7,742,592	)
Biotechnology — (3.0)%
Exact Sciences Corp.*		382,600		(4,051,734	)
Life Technologies Corp.*		53,500		(2,625,780	)
Total Biotechnology				(6,677,514	)
Chemicals — (3.7)%
Cabot Corp.		141,000		(5,610,390	)
Dow Chemical Co. (The)		75,100		(2,427,232	)
Total Chemicals				(8,037,622	)

See accompanying Notes to Financial Statements.

67

ADVISORSHARES TRUST
RANGER EQUITY BEAR ETF†
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares		Value
Commercial Services — (2.2)%
Parexel International Corp.*		162,900	$	(4,820,211	)
Computers — (0.9)%
Cadence Design Systems, Inc.*		153,500		(2,073,785	)
Distribution/Wholesale — (4.9)%
Fossil, Inc.*		114,700		(10,678,570	)
Diversified Financial Services — (2.2)%
CME Group, Inc.		93,400		(4,736,314	)
Electronics — (1.3)%
Agilent Technologies, Inc.		66,885		(2,738,272	)
Internet — (7.7)%
Broadsoft, Inc.*		138,400		(5,028,072	)
Constant Contact, Inc.*		203,600		(2,893,156	)
NetEase, Inc. (Cayman Islands)*(b)		113,900		(4,846,445	)
Splunk, Inc.*		140,400		(4,074,408	)
Total Internet				(16,842,081	)
Iron/Steel — (9.9)%
Cliffs Natural Resources, Inc.		324,000		(12,493,440	)
Vale SA (Brazil)(b)		436,900		(9,157,424	)
Total Iron/Steel				(21,650,864	)
Lodging — (0.9)%
Caesars Entertainment Corp.*		295,166		(2,042,549	)
Machinery – Diversified — (1.5)%
Cummins, Inc.		29,700		(3,217,995	)
Miscellaneous Manufacturing — (2.8)%
Aptargroup, Inc.		127,041		(6,062,397	)
Oil & Gas — (3.9)%
Baker Hughes, Inc.		105,500		(4,308,620	)
Denbury Resources, Inc.*		137,400		(2,225,880	)
Superior Energy Services, Inc.*		100,600		(2,084,432	)
Total Oil & Gas				(8,618,932	)

See accompanying Notes to Financial Statements.

68

ADVISORSHARES TRUST
RANGER EQUITY BEAR ETF†
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares		Value
Pharmaceuticals — (2.2)%
Perrigo Co.		46,600	$	(4,847,798	)
Retail — (12.4)%
Chipotle Mexican Grill, Inc.*		44,500		(13,236,970	)
Lululemon Athletica, Inc.*		13,600		(1,036,728	)
Tiffany & Co.		130,800		(7,500,072	)
Ulta Salon, Cosmetics & Fragrance, Inc.		28,900		(2,839,714	)
Williams-Sonoma, Inc.		57,200		(2,503,644	)
Total Retail				(27,117,128	)
Semiconductors — (2.9)%
Altera Corp.		78,819		(2,714,526	)
First Solar, Inc.*		118,800		(3,668,544	)
Total Semiconductors				(6,383,070	)
Software — (6.1)%
Concur Technologies, Inc.*		50,700		(3,423,264	)
Nuance Communications, Inc.*		166,200		(3,709,584	)
ServiceNow, Inc.*		115,000		(3,453,450	)
Verifone Systems, Inc.*		93,400		(2,772,112	)
Total Software				(13,358,410	)
Telecommunications — (8.4)%
Acme Packet, Inc.*		103,900		(2,298,268	)
Centurylink, Inc.		222,300		(8,696,376	)
ViaSat, Inc.*		190,300		(7,402,670	)
Total Telecommunications				(18,397,314	)
Transportation — (2.3)%
FedEx Corp.		28,200		(2,586,504	)
Kansas City Southern		28,600		(2,387,527	)
Total Transportation				(4,974,031	)
Total Securities Sold, Not Yet Purchased [Proceeds Received $(194,060,108)]				(211,262,699	)
Total Investments — (50.3)% (Cost $(92,902,676))				(110,105,267	)
Other Assets in Excess of Liabilities — 150.3%				329,054,794
Net Assets — 100.0%			$	218,949,527

See accompanying Notes to Financial Statements.

69

ADVISORSHARES TRUST
RANGER EQUITY BEAR ETF†
Schedule of Investments (continued)

† Formerly Active Bear ETF

* Non-income producing security

(a) Registered Shares

(b) American Depositary Receipt

Cash of $233,152,310 has been segregated to cover requirement for open short sales as of December 31, 2012.

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Aerospace/Defense		(2.1	)%
Apparel		(2.0	)
Auto Parts & Equipment		(6.5	)
Banks		(3.2	)
Beverages		(3.5	)
Biotechnology		(3.0	)
Chemicals		(3.7	)
Commercial Services		(2.2	)
Computers		(0.9	)
Distribution/Wholesale		(4.9	)
Diversified Financial Services		(2.2	)
Electronics		(1.3	)
Internet		(7.7	)
Iron/Steel		(9.9	)
Lodging		(0.9	)
Machinery – Diversified		(1.5	)
Miscellaneous Manufacturing		(2.8	)
Oil & Gas		(3.9	)
Pharmaceuticals		(2.2	)
Retail		(12.4	)
Semiconductors		(2.9	)
Software		(6.1	)
Telecommunications		(8.4	)
Transportation		(2.3	)
Money Market Funds		46.2
Total Investments		(50.3	)
Other Assets in Excess of Liabilities		150.3
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

70

ADVISORSHARES TRUST
ROCKLEDGE SECTORSAM ETF
Schedule of Investments

December 31, 2012 (Unaudited)

Investments	Shares		Value
EXCHANGE TRADED FUNDS — 101.5%
Equity Fund — 101.5%
Financial Select Sector SPDR Fund(a)		25,558	$	419,152
Industrial Select Sector SPDR Fund(a)		11,090		420,311
Materials Select Sector SPDR Fund		11,228		421,499
Total Investments Before Securities Sold, Not Yet Purchased (Cost $1,243,733)				1,260,962
Securities Sold, Not Yet Purchased — (101.6)%
Equity Fund — (101.6)%
Consumer Discretionary Select Sector SPDR Fund		4,275		(202,763	)
Consumer Staples Select Sector SPDR Fund		6,016		(209,537	)
Energy Select Sector SPDR Fund(a)		2,649		(189,245	)
Health Care Select Sector SPDR Fund		5,184		(207,101	)
Technology Select Sector SPDR Fund		13,623		(394,386	)
Utilities Select Sector SPDR Fund		1,680		(58,716	)
Total Securities Sold, Not Yet Purchased [Proceeds Received $(1,280,801)]				(1,261,748	)
Total Investments — (0.1)% (Cost $(37,068))				(786	)
Other Assets in Excess of Liabilities — 100.1%				1,242,868
Net Assets — 100.0%			$	1,242,082

(a) Represents security, or a portion thereof, segregated as collateral for securities sold, not yet purchased.

Cash of $1,231,781 has been segregated to cover requirement for open short sales as of December 31, 2012.

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Equity Fund		(0.1	)%
Total Investments		(0.1	)
Other Assets in Excess of Liabilities		100.1
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

71

ADVISORSHARES TRUST
STAR GLOBAL BUY-WRITE ETF
Schedule of Investments

December 31, 2012 (Unaudited)

Investments	Shares		Value
EXCHANGE TRADED FUNDS–64.8%
Commodity Fund — 12.2%
PowerShares DB Precious Metals Fund*		29,043	$	1,658,065
Debt Fund — 1.4%
iShares iBoxx $ High Yield Corporate Bond Fund		2,000		186,700
Equity Fund — 51.2%
Energy Select Sector SPDR Fund		24,283		1,734,778
iShares Dow Jones US Real Estate Index Fund		26,821		1,735,855
iShares MSCI Emerging Markets Index Fund		38,905		1,725,437
SPDR S&P 500 ETF Trust		12,215		1,740,882
Total Equity Fund				6,936,952
Total Exchange Traded Funds (Cost $8,778,449)				8,781,717
U.S. TREASURY NOTES — 14.4%
U.S. Treasury Note, 4.25%, 08/15/13		950,000		974,009
U.S. Treasury Note, 4.25%, 11/15/13		950,000		983,621
Total U.S. Treasury Notes (Cost $1,958,060)				1,957,630
MONEY MARKET FUND — 20.3%
BlackRock Liquidity Funds -T- Fund Portfolio — Institutional Class, 0.01% (Cost $2,747,922)		2,747,922		2,747,922

See accompanying Notes to Financial Statements.

72

ADVISORSHARES TRUST
STAR GLOBAL BUY-WRITE ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Contracts			Value
PURCHASED PUT OPTION — 1.4%
SPDR S&P 500 ETF Trust Option expiring 12/21/13 @ $115.00 (Cost $206,960)		526		$	182,785
Total Investments Before Written Options — 100.9% (Cost $13,691,391)					13,670,054
WRITTEN CALL OPTIONS — (0.9)%
Energy Select Sector SPDR Fund Option expiring 01/19/13, Strike Price $72.00		(49	)		(5,268	)
Energy Select Sector SPDR Fund Option expiring 01/19/13, Strike Price $73.00		(193	)		(12,545	)
iShares Dow Jones US Real Estate Index Fund Option expiring 01/19/13, Strike Price $64.00		(121	)		(13,855	)
iShares Dow Jones US Real Estate Index Fund Option expiring 01/19/13, Strike Price $65.00		(43	)		(2,236	)
iShares Dow Jones US Real Estate Index Fund Option expiring 02/16/13, Strike Price $66.00		(98	)		(5,194	)
iShares iBoxx $ High Yield Corporate Bond Fund Option expiring 02/16/13, Strike Price $94.00		(20	)		(1,050	)
iShares MSCI Emerging Markets Index Fund Option expiring 01/19/13, Strike Price $43.00		(76	)		(13,110	)
iShares MSCI Emerging Markets Index Fund Option expiring 01/19/13, Strike Price $44.00		(179	)		(17,363	)
iShares MSCI Emerging Markets Index Fund Option expiring 02/16/13, Strike Price $45.00		(134	)		(11,792	)
PowerShares DB Precious Metals Fund Option expiring 01/19/13, Strike Price $60.00		(50	)		(1,000	)
PowerShares DB Precious Metals Fund Option expiring 01/19/13, Strike Price $61.00		(56	)		(1,260	)
PowerShares DB Precious Metals Fund Option expiring 02/16/13, Strike Price $57.00		(75	)		(8,812	)
PowerShares DB Precious Metals Fund Option expiring 02/16/13, Strike Price $58.00		(75	)		(5,812	)
SPDR S&P 500 ETF Trust Option expiring 01/19/13, Strike Price $141.00		(11	)		(3,520	)
SPDR S&P 500 ETF Trust Option expiring 01/19/13, Strike Price $143.00		(13	)		(2,509	)
SPDR S&P 500 ETF Trust Option expiring 02/16/13, Strike Price $144.00		(23	)		(5,842	)
SPDR S&P 500 ETF Trust Option expiring 02/16/13, Strike Price $148.00		(75	)		(7,013	)
Total Written Call Options [Premiums Received $(96,005)]					(118,181	)

See accompanying Notes to Financial Statements.

73

ADVISORSHARES TRUST
STAR GLOBAL BUY-WRITE ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Contracts			Value
WRITTEN PUT OPTIONS — (0.1)%
iShares iBoxx $ High Yield Corporate Bond Fund Option expiring 01/19/13 @ 92.00		(107	)	$	(3,210	)
iShares iBoxx $ High Yield Corporate Bond Fund Option expiring 01/19/2013 @ $93.00		(14	)		(840	)
iShares iBoxx $ High Yield Corporate Bond Fund Option expiring 02/16/2013 @ 92.00		(50	)		(4,250	)
Total Written Put Options [Premiums Received $(17,102)]					(8,300	)
Total Written Options — (1.0)% [Premiums Received $(113,107)]					(126,481	)
Total Investments — 99.9% (Cost $13,578,284)					13,543,573
Other Assets in Excess of Liabilities — 0.1%					13,865
Net Assets — 100.0%				$	13,557,438

ETF — Exchange Traded Fund

* Non-income producing security

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Commodity Fund		12.2	%
Debt Fund		1.4
Equity Fund		51.2
U.S. Treasury Notes		14.4
Money Market Fund		20.3
Purchased Put Option		1.4
Written Call Options		(0.9	)
Written Put Options		(0.1	)
Total Investments		99.9
Other Assets in Excess of Liabilities		0.1
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

74

ADVISORSHARES TRUST
TRIMTABS FLOAT SHRINK ETF
Schedule of Investments

December 31, 2012 (Unaudited)

Investments	Shares		Value
COMMON STOCKS — 100.3%
Beverages — 1.0%
Constellation Brands, Inc., Class A*		3,092	$	109,426
Biotechnology — 3.9%
Alexion Pharmaceuticals, Inc.*		1,179		110,602
Biogen Idec, Inc.*		720		105,603
Gilead Sciences, Inc.*		1,503		110,395
PDL BioPharma, Inc.		14,940		105,327
Total Biotechnology				431,927
Chemicals — 2.0%
NewMarket Corp.		410		107,502
Sherwin-Williams Co. (The)		744		114,442
Total Chemicals				221,944
Commercial Services — 9.9%
Apollo Group, Inc., Class A*		5,184		108,449
Chemed Corp.		1,600		109,744
CoreLogic, Inc.*		4,110		110,641
DeVry, Inc.		4,383		104,009
Gartner, Inc.*		2,421		111,414
H&R Block, Inc.		5,970		110,863
MasterCard, Inc., Class A		225		110,538
Moody's Corp.		2,296		115,535
VistaPrint NV*		3,222		105,875
Weight Watchers International, Inc.		2,160		113,098
Total Commercial Services.				1,100,166
Computers — 6.3%
CACI International, Inc., Class A*		2,070		113,912
Cognizant Technology Solutions Corp., Class A*		1,539		113,963
Fortinet, Inc.*		5,355		112,830
Jack Henry & Associates, Inc.		2,880		113,069

See accompanying Notes to Financial Statements.

75

ADVISORSHARES TRUST
TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares		Value
Computers — 6.3% (continued)
Teradata Corp.*		1,854	$	114,744
Western Digital Corp.		2,956		125,600
Total Computers.				694,118
Cosmetics/Personal Care — 1.0%
Colgate-Palmolive Co.		1,028		107,467
Diversified Financial Services — 5.1%
Ameriprise Financial, Inc.		1,809		113,298
CBOE Holdings, Inc.		3,726		109,768
Eaton Vance Corp.		3,562		113,450
Federated Investors, Inc., Class B		5,670		114,704
World Acceptance Corp.*		1,556		116,015
Total Diversified Financial Services				567,235
Electric — 1.0%
Duke Energy Corp.		1,746		111,395
Electronics — 3.1%
Tech Data Corp.*		2,493		113,506
Vishay Intertechnology, Inc.*		11,000		116,930
Watts Water Technologies, Inc., Class A		2,680		115,213
Total Electronics.				345,649
Engineering & Construction — 1.1%
MasTec, Inc.*		4,797		119,589
Entertainment — 3.0%
Bally Technologies, Inc.*		2,417		108,064
International Game Technology		7,654		108,457
Six Flags Entertainment Corp.		1,863		114,016
Total Entertainment				330,537
Food — 3.9%
Ingredion, Inc.		1,728		111,335
Kroger Co. (The)		4,234		110,169

See accompanying Notes to Financial Statements.

76

ADVISORSHARES TRUST
TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares		Value
Food — 3.9% (continued)
Sanderson Farms, Inc.		2,223	$	105,704
Smithfield Foods, Inc.*		4,960		106,987
Total Food				434,195
Healthcare – Products — 2.8%
Edwards Lifesciences Corp.*		1,215		109,557
Idexx Laboratories, Inc.*		1,158		107,462
Intuitive Surgical, Inc.*		198		97,093
Total Healthcare – Products				314,112
Healthcare – Services — 2.0%
Bio-Reference Laboratories, Inc.*		3,852		110,514
Coventry Health Care, Inc.		2,502		112,164
Total Healthcare – Services				222,678
Household Products/Wares — 2.0%
Clorox Co. (The)		1,450		106,169
Scotts Miracle-Gro Co. (The), Class A		2,600		114,530
Total Household Products/Wares.				220,699
Housewares — 1.0%
Toro Co. (The)		2,628		112,951
Insurance — 2.0%
Assurant, Inc.		3,186		110,554
Platinum Underwriters Holdings Ltd.		2,457		113,022
Total Insurance				223,576
Internet — 4.1%
Expedia, Inc.		1,911		117,431
Opentable, Inc.*		2,330		113,704
Priceline.com, Inc.*		180		111,816
ValueClick, Inc.*		5,786		112,306
Total Internet				455,257

See accompanying Notes to Financial Statements.

77

ADVISORSHARES TRUST
TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares		Value
Investment Companies — 1.0%
Apollo Investment Corp.		13,662	$	114,214
Machinery – Diversified — 1.0%
Flowserve Corp.		774		113,623
Metal Fabricate/Hardware — 1.1%
Mueller Industries, Inc.		2,358		117,971
Miscellaneous Manufacturing — 0.9%
Smith & Wesson Holding Corp.*		11,349		95,786
Office/Business Equipment — 1.0%
Xerox Corp.		15,939		108,704
Oil & Gas — 3.1%
CVR Energy, Inc.*		2,403		117,243
Delek US Holdings, Inc.		4,248		107,559
Plains Exploration & Production Co.*		2,430		114,064
Total Oil & Gas				338,866
Packaging & Containers — 2.1%
Packaging Corp. of America.		3,000		115,410
Rock Tenn Co., Class A		1,647		115,142
Total Packaging & Containers				230,552
Pharmaceuticals — 5.0%
Abbott Laboratories		1,710		112,005
Impax Laboratories, Inc.*		5,562		113,965
Mylan, Inc.*		4,064		111,679
Santarus, Inc.*		10,728		117,794
USANA Health Sciences, Inc.*		2,952		97,209
Total Pharmaceuticals				552,652
Real Estate Investment Trusts — 1.0%
Extra Space Storage, Inc.		3,177		115,611

See accompanying Notes to Financial Statements.

78

ADVISORSHARES TRUST
TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares		Value
Retail — 12.0%
ANN, Inc.*		3,393	$	114,819
AutoNation, Inc.*		2,853		113,264
Copart, Inc.*		3,692		108,914
DSW, Inc., Class A		1,746		114,695
Dunkin' Brands Group, Inc.		3,510		116,462
Francesca's Holdings Corp.*		4,536		117,755
Gamestop Corp., Class A		4,032		101,163
GNC Holdings, Inc., Class A		3,330		110,822
Home Depot, Inc. (The)		1,835		113,495
MSC Industrial Direct Co., Inc., Class A		1,566		118,045
Nu Skin Enterprises, Inc., Class A		2,438		90,328
O'Reilly Automotive, Inc.*		1,232		110,165
Total Retail				1,329,927
Savings & Loans — 1.0%
People's United Financial, Inc.		9,153		110,660
Semiconductors — 6.1%
KLA-Tencor Corp.		2,358		112,618
Lam Research Corp.*		3,100		112,003
Linear Technology Corp.		3,312		113,602
PMC-Sierra, Inc.*		20,880		108,785
Semtech Corp.*		3,987		115,424
Teradyne, Inc.*		6,732		113,703
Total Semiconductors				676,135
Software — 8.9%
Allscripts Healthcare Solutions, Inc.*		10,316		97,177
athenahealth, Inc.*		1,476		108,412
Broadridge Financial Solutions, Inc.		4,797		109,755
CommVault Systems, Inc.*		1,638		114,185
Guidewire Software, Inc.*		3,618		107,527
Intuit, Inc.		1,858		110,551
Microsoft Corp.		4,149		110,903
MSCI, Inc.*		3,717		115,190

See accompanying Notes to Financial Statements.

79

ADVISORSHARES TRUST
TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares		Value
Software — 8.9% (continued)
Oracle Corp.		3,510	$	116,953
Total Software				990,653
Telecommunications — 0.9%
InterDigital, Inc.		2,550		104,805
Total Common Stocks (Cost $11,028,336)				11,123,080
MONEY MARKET FUND — 0.9%
Wells Fargo Advantage Government Money Market Fund – Institutional Class (Cost $98,845)		98,845		98,845
Total Investments — 101.2%
(Cost $11,127,181)				11,221,925
Liabilities in Excess of Other Assets — (1.2)%				(130,868	)
Net Assets — 100.0%			$	11,091,057

* Non-income producing security

See accompanying Notes to Financial Statements.

80

ADVISORSHARES TRUST
TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Beverages		1.0	%
Biotechnology		3.9
Chemicals		2.0
Commercial Services		9.9
Computers		6.3
Cosmetics/Personal Care		1.0
Diversified Financial Services		5.1
Electric		1.0
Electronics		3.1
Engineering & Construction		1.1
Entertainment		3.0
Food		3.9
Healthcare — Products		2.8
Healthcare — Services		2.0
Household Products/Wares		2.0
Housewares		1.0
Insurance		2.0
Internet		4.1
Investment Companies		1.0
Machinery — Diversified		1.0
Metal Fabricate/Hardware		1.1
Miscellaneous Manufacturing		0.9
Office/Business Equipment		1.0
Oil & Gas		3.1
Packaging & Containers		2.1
Pharmaceuticals		5.0
Real Estate Investment Trusts		1.0
Retail		12.0
Savings & Loans		1.0
Semiconductors		6.1
Software		8.9
Telecommunications		0.9
Money Market Fund		0.9
Total Investments		101.2
Other Assets in Excess of Liabilities		(1.2	)
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

81

ADVISORSHARES TRUST
WCM/BNY MELLON FOCUSED GROWTH ADR ETF
Schedule of Investments

December 31, 2012 (Unaudited)

Investments	Shares		Value
COMMON STOCKS — 96.1%
Beverages — 4.2%
Coca-Cola Enterprises, Inc.		9,259	$	293,788
Biotechnology — 3.7%
Novozymes A/S (Denmark)(a)		9,245		261,633
Chemicals — 4.1%
Potash Corp. of Saskatchewan, Inc. (Canada)		7,144		290,689
Commercial Services — 4.5%
SGS SA (Switzerland)(a)		14,053		313,101
Cosmetics/Personal Care — 5.4%
L'Oreal SA (France)(a)		13,412		375,268
Diversified Financial Services — 3.2%
Lazard Ltd., Class A (Bermuda)		7,469		222,875
Food — 14.1%
BRF – Brasil Foods SA (Brazil)(a)		11,359		239,788
Jeronimo Martins, SGPS, SA (Portugal)(a)		3,900		151,710
Nestle SA (Switzerland)(a)		4,388		285,966
Shoprite Holdings Ltd. (South Africa)(a)		3,430		167,555
Want Want China Holdings Ltd. (Cayman Islands)(a)		2,085		145,742
Total Food				990,761
Forest Products & Paper — 2.2%
Svenska Cellulosa AB (Sweden)(a)		6,880		151,222
Healthcare – Products — 8.7%
Essilor International SA (France)(a)		6,502		332,772
Shandong Weigao Group Medical Polymer Co. Ltd. (China)(a)		29,435		116,622
Sysmex Corp. (Japan)(a)		7,070		162,610
Total Healthcare – Products				612,004

See accompanying Notes to Financial Statements.

82

ADVISORSHARES TRUST
WCM/BNY MELLON FOCUSED GROWTH ADR ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares		Value
Holding Companies – Diversified — 2.6%
LVMH Moet Hennessy Louis Vuitton SA (France)(a)		4,842	$	182,495
Insurance — 4.1%
ACE Ltd. (Switzerland)		3,574		285,205
Internet — 2.2%
Tencent Holdings Ltd. (Cayman Islands)(a)		4,750		155,088
Machinery – Diversified — 4.0%
Fanuc Corp. (Japan)(a)		9,118		283,296
Oil & Gas Services — 3.7%
Core Laboratories N.V. (Netherlands)		2,402		262,563
Pharmaceuticals — 4.3%
NOVO Nordisk A/S (Denmark)(a)		1,861		303,734
Retail — 6.5%
Arcos Dorados Holdings, Inc., Class A (Argentina)		20,153		241,030
Wal-Mart de Mexico SAB de CV (Mexico)(a)		6,654		218,118
Total Retail				459,148
Semiconductors — 12.4%
Arm Holdings PLC (United Kingdom)(a)		8,144		308,088
ASML Holding N.V. (Netherlands)		2,664		171,588
Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan)(a)		22,814		391,488
Total Semiconductors				871,164
Transportation — 6.2%
Canadian National Railway Co. (Canada)		3,159		287,501
Kuehne + Nagel International AG (Switzerland)(a)		6,100		148,413
Total Transportation				435,914
Total Common Stocks (Cost $6,107,977)				6,749,948

See accompanying Notes to Financial Statements.

83

ADVISORSHARES TRUST
WCM/BNY MELLON FOCUSED GROWTH ADR ETF
Schedule of Investments (continued)

December 31, 2012 (Unaudited)

Investments	Shares		Value
MONEY MARKET FUND — 4.6%
Invesco Government & Agency Portfolio – Private Investment Class (Cost $319,617)		319,617	$	319,617
Total Investments — 100.7% (Cost $6,427,594)				7,069,565
Liabilities in Excess of Other Assets — (0.7)%				(46,005	)
Net Assets — 100.0%			$	7,023,560

(a) American Depositary Receipt

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Beverages		4.2	%
Biotechnology		3.7
Chemicals		4.1
Commercial Services		4.5
Cosmetics/Personal Care		5.4
Diversified Financial Services		3.2
Food		14.1
Forest Products & Paper		2.2
Healthcare – Products		8.7
Holding Companies – Diversified		2.6
Insurance		4.1
Internet		2.2
Machinery-Diversified		4.0
Oil & Gas Services		3.7
Pharmaceuticals.		4.3
Retail		6.5
Semiconductors		12.4
Transportation		6.2
Money Market Fund		4.6
Total Investments		100.7
Liabilities in Excess of Other Assets		(0.7	)
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

84

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ADVISORSHARES TRUST
Statements of Assets and Liabilities

December 31, 2012 (Unaudited)

	Accuvest Global Long Short ETF			Accuvest Global Opportunities ETF			Cambria Global Tactical ETF			Global Alpha & Beta ETF
ASSETS
Investments, at Cost	$	27,851,955		$	15,922,522		$	61,022,356		$	1,263,079
Investments in Affiliates, at Cost (Note 8)	$	—		$	—		$	—		$	—
Investments, at Market Value		30,356,936			17,242,596			64,913,633			1,320,285
Investments in Affiliates, at Market Value (Note 8)		—			—			—			—
Cash		—			—			—			—
Cash collateral held at brokers		12,279,345			—			—			—
Receivable from Securities Sold		—			—			—			—
Unrealized Appreciation on Swaps Contracts		—			—			—			—
Dividend and Interest Receivable		18			1			208,521			1,711
Reclaim Receivable		—			—			—			—
Due from Investment Advisor		—			—			—			5,057
Deferred Offering Costs		—			—			—			—
Prepaid Trustee Fees		—			101			58			—
Prepaid Expenses		2,585			1,846			8,338			4,624
Total Assets		42,638,884			17,244,544			65,130,550			1,331,677
LIABILITIES
Due to Custodian		—			—			—			—
Securities Sold, Not Yet Purchased*		14,428,555			—			—			—
Options Written, at Value(a)		—			—			—			—
Unrealized Deprecation on Swaps Contracts		—			—			—			—
Advisory Payable		24,245			8,177			46,748			—
Payable for Securities Purchased		—			—			—			—
Capital Shares Payable		—			—			—			—
Distribution Payable		—			185,454			—			7,701
Dividend Payable on Securities Sold, Not Yet Purchased		6,431			—			—			—
Trustee Fees Payable		13			—			—			238
Interest Payable		41,145			—			1,451,034			—
Payable to Global Echo Foundation		—			—			—			—
Accrued Expenses		41,653			23,604			53,795			20,379
Total Liabilities		14,542,042			217,235			1,551,577			28,318
NET ASSETS	$	28,096,842		$	17,027,309		$	63,578,973		$	1,303,359
COMPONENTS OF NET ASSETS
Capital Stock at Zero Par Value	$	31,490,143		$	15,600,382		$	79,471,212		$	1,202,437
Undistributed Net Investment Income (Loss)		(535,665	)		(69,172	)		(283,118	)		(3,299	)
Accumulated Net Gain (Loss) on Investments, options written and swap transactions		(4,335,078	)		176,025			(19,500,398	)		47,015
Unrealized Appreciation (Depreciation) on Investments, optiions written and swaps		1,477,442			1,320,074			3,891,277			57,206
NET ASSETS	$	28,096,842		$	17,027,309		$	63,578,973		$	1,303,359
SHARES ISSUED AND OUTSTANDING
Shares Outstanding (Unlimited Shares Authorized)		1,250,000			600,000			2,600,000			50,000
Net Asset Value (NAV) Per Share	$	22.48		$	28.38		$	24.45		$	26.07
*Proceeds Received from Securities Sold, Not Yet Purchased	$	13,401,016		$	—		$	—		$	—
(a) Premiums Received for Options Written	$	—		$	—		$	—		$	—

See accompanying Notes to Financial Statements.

86

ADVISORSHARES TRUST
Statements of Assets and Liabilities

December 31, 2012 (Unaudited)

	Global Echo ETF			Madrona Domestic ETF			Madrona Global Bond ETF			Madrona International ETF			Meidell Tactical Advantage ETF			Peritus High Yield ETF		Pring Turner Business Cycle ETF
ASSETS
Investments, at Cost	$	4,983,056		$	14,316,073		$	22,171,822		$	13,739,465		$	6,983,730		$	173,046,252	$	2,375,961
Investments in Affiliates, at Cost (Note 8)	$	16,047		$	—		$	—		$	—		$	—		$	—	$	125,124
Investments, at Market Value		5,109,808			15,226,746			23,166,244			15,021,455			7,190,632			173,311,135		2,362,497
Investments in Affiliates, at Market Value (Note 8)		15,410			—			—			—			—			—		124,975
Cash		—			395			—			—			—			—		—
Cash collateral held at brokers		—			—			—			—			—			—		—
Receivable from Securities Sold		141,453			—			—			—			—			—		—
Unrealized Appreciation on Swaps Contracts		—			—			—			—			—			—		—
Dividend and Interest Receivable		12,051			11,388			41,335			27,600			9,348			4,143,563		4,726
Reclaim Receivable		—			—			—			2,606			—			—		—
Due from Investment Advisor		—			—			—			—			1,434			—		2,233
Deferred Offering Costs		—			—			—			—			—			—		—
Prepaid Trustee Fees		—			—			—			—			—			48		—
Prepaid Expenses		—			1,946			2,566			1,850			606			10,935		—
Total Assets		5,278,722			15,240,475			23,210,145			15,053,511			7,202,020			177,465,681		2,494,431
LIABILITIES
Due to Custodian		23,426			—			—			—			—			—		—
Securities Sold, Not Yet Purchased*		—			—			—			—			—			—		—
Options Written, at Value(a)		—			—			—			—			—			—		—
Unrealized Deprecation on Swaps Contracts		—			—			—			—			—			—		—
Advisory Payable		3,868			1,922			6,840			2,544			—			165,684		—
Payable for Securities Purchased		112,197			—			—			—			—			—		—
Capital Shares Payable		—			—			—			—			—			—		—
Distribution Payable		—			—			—			—			64,270			—		—
Dividend Payable on Securities Sold, Not Yet Purchased		—			—			—			—			—			—		—
Trustee Fees Payable		—			5			5			5			6			—		54
Interest Payable		—			—			—			—			—			—		—
Payable to Global Echo Foundation		1,407			—			—			—			—			—		—
Accrued Expenses		—			39,402			34,137			40,095			29,568			84,385		3,499
Total Liabilities		140,898			41,329			40,982			42,644			93,844			250,069		3,553
NET ASSETS	$	5,137,824		$	15,199,146		$	23,169,163		$	15,010,867		$	7,108,176		$	177,215,612	$	2,490,878
COMPONENTS OF NET ASSETS
Capital Stock at Zero Par Value	$	5,037,095		$	14,875,057		$	22,142,454		$	16,195,208		$	7,242,772		$	176,913,996	$	2,500,000
Undistributed Net Investment Income (Loss)		(4,253	)		590			61,135			3,481			(27,814	)		6,038		4,491
Accumulated Net Gain (Loss) on Investments, options written and swap transactions		(21,133	)		(587,174	)		(28,848	)		(2,469,812	)		(313,684	)		30,695		—
Unrealized Appreciation (Depreciation) on Investments, optiions written and swaps		126,115			910,673			994,422			1,281,990			206,902			264,883		(13,613	)
NET ASSETS	$	5,137,824		$	15,199,146		$	23,169,163		$	15,010,867		$	7,108,176		$	177,215,612	$	2,490,878
SHARES ISSUED AND OUTSTANDING
Shares Outstanding (Unlimited Shares Authorized)		100,000			550,000			875,000			625,000			275,000			3,550,000		100,000
Net Asset Value (NAV) Per Share	$	51.38		$	27.63		$	26.48		$	24.02		$	25.85		$	49.92	$	24.91
*Proceeds Received from Securities Sold, Not Yet Purchased	$	—		$	—		$	—		$	—		$	—		$	—	$	—
(a) Premiums Received for Options Written	$	—		$	—		$	—		$	—		$	—		$	—	$	—

See accompanying Notes to Financial Statements.

87

ADVISORSHARES TRUST
Statements of Assets and Liabilities (continued)

December 31, 2012 (Unaudited)

	QAM Equity Hedge ETF			Ranger Equity Bear ETF			Rockledge SectorSAM ETF			STAR Global Buy-Write ETF			TrimTabs Float Shrink ETF			WCM/BNY Mellon Focused Growth ADR ETF
ASSETS
Investments, at Cost	$	3,766,905		$	101,157,432		$	1,243,733		$	13,691,391		$	11,127,181		$	6,427,594
Investments in Affiliates, at Cost (Note 8)	$	—		$	—		$	—		$	—		$	—		$	—
Investments, at Market Value		3,846,664			101,157,432			1,260,962			13,670,054			11,221,925			7,069,565
Investments in Affiliates, at Market Value (Note 8)		—			—			—			—			—			—
Cash		15			116,422,758			43,904			—			—			—
Cash collateral held at brokers		54,918			233,152,310			1,231,781			—			—			—
Receivable from Securities Sold		—			9,090,230			590,192			260,790			—			—
Unrealized Appreciation on Swaps Contracts		9,895			—			—			—			—			—
Dividend and Interest Receivable		3,209			2,744			7,866			42,338			4,642			1,857
Reclaim Receivable		—			—			—			—			—			8,462
Due from Investment Advisor		7,668			—			9,404			—			2,299			—
Deferred Offering Costs		27,501			—			—			—			—			—
Prepaid Trustee Fees		—			34			—			—			—			—
Prepaid Expenses		278			34,975			1,023			31,680			2,886			463
Total Assets		3,950,148			459,860,483			3,145,132			14,004,862			11,231,752			7,080,347
LIABILITIES
Due to Custodian		—			—			—			1,819			108,732			11,208
Securities Sold, Not Yet Purchased*		57,290			211,262,699			1,261,748			—			—			—
Options Written, at Value(a)		—			—			—			126,481			—			—
Unrealized Deprecation on Swaps Contracts		831			—			—			—			—			—
Advisory Payable		—			328,223			—			9,884			—			3,290
Payable for Securities Purchased		5,864			25,284,331			586,691			186,256			—			—
Capital Shares Payable		—			3,687,830			—			—			—			—
Distribution Payable		26,646			—			18,966			109,016			—			—
Dividend Payable on Securities Sold, Not Yet Purchased		43			35,232			9,112			—			—			—
Trustee Fees Payable		809			—			38			70			11			14
Interest Payable		—			200,567			153			—			—			—
Payable to Global Echo Foundation		—			—			—			—			—			—
Accrued Expenses		16,984			112,074			26,342			13,898			31,952			42,275
Total Liabilities		108,467			240,910,956			1,903,050			447,424			140,695			56,787
NET ASSETS	$	3,841,681		$	218,949,527		$	1,242,082		$	13,557,438		$	11,091,057		$	7,023,560
COMPONENTS OF NET ASSETS
Capital Stock at Zero Par Value	$	3,766,470		$	305,976,564		$	1,305,023		$	13,614,994		$	10,560,999		$	6,801,503
Undistributed Net Investment Income (Loss)		(10,783	)		(8,183,715	)		(34,932	)		(77,763	)		(448	)		(145	)
Accumulated Net Gain (Loss) on Investments, options written and swap transactions		(1,365	)		(61,640,731	)		(64,291	)		54,918			435,762			(419,769	)
Unrealized Appreciation (Depreciation) on Investments, optiions written and swaps		87,359			(17,202,591	)		36,282			(34,711	)		94,744			641,971
NET ASSETS	$	3,841,681		$	218,949,527		$	1,242,082		$	13,557,438		$	11,091,057		$	7,023,560
SHARES ISSUED AND OUTSTANDING
Shares Outstanding (Unlimited Shares Authorized)		150,000			11,950,000			50,000			550,000			325,000			225,000
Net Asset Value (NAV) Per Share	$	25.61		$	18.32		$	24.84		$	24.65		$	34.13		$	31.22
*Proceeds Received from Securities Sold, Not Yet Purchased	$	55,826		$	194,060,108		$	1,280,801		$	—		$	—		$	—
(a) Premiums Received for Options Written	$	—		$	—		$	—		$	113,107		$	—		$	—

See accompanying Notes to Financial Statements.

88

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ADVISORSHARES TRUST
Statements of Operations

For the Six Months Ended December 31, 2012 (Unaudited)

	Accuvest Global Long Short ETF			Accuvest Global Opportunities ETF			Cambria Global Tactical ETF			Global Alpha & Beta ETF(1)
INVESTMENT INCOME:
Dividend Income	$	159,447		$	83,652		$	1,199,422		$	13,550
Dividend Income from Affiliates		—			—			—			—
Interest Income		19			1			7,501			10
Foreign withholding tax		—			—			—			(245	)
Total Investment Income		159,466			83,653			1,206,923			13,315
EXPENSES:
Advisory Fees		169,054			73,063			325,718			7,889
Dividend Expense		105,853			—			—			—
Professional Fees		52,551			19,881			19,087			19,261
Accounting & Administration Fees		9,796			10,308			37,418			7,467
Exchange Listing Fees		5,301			8,492			1,360			9,304
Pricing Fees		3,290			750			1,600			2,734
Report to Shareholders		1,900			4,327			5,188			4,078
Custody Fees		1,811			496			2,578			1,148
Insurance Fees		392			769			—			2,248
Transfer Agent Fees		792			506			2,634			557
Trustee Fees		932			819			862			808
Interest on Securities Sold Short		206,622			—			—			—
Contribution to Global Echo Foundation		—			—			—			—
Licensing Fees		—			—			—			—
Registration Fees		—			254			—			26
Miscellaneous Fees		790			—			558			73
Total Expenses		559,084			119,665			397,003			55,593
Advisory Fees Waived/Recoupment		(58,772	)		(23,530	)		(8,379	)		(45,732	)
Expense Reimbursement		—			—			—			—
Net Expenses		500,312			96,135			388,624			9,861
Net Investment Income (Loss)		(340,846	)		(12,482	)		818,299			3,454
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT, OPTIONS WRITTEN AND SWAP TRANSACTIONS:
Net Realized Gain (Loss) on:
Investments		160,750			62,557			321,213			(87	)
In-Kind Redemptions		1,803,244			1,213,458			1,118,367			48,050
Swaps		—			—			—			—
Short Sales		(1,084,869	)		—			(12,752	)		—
Options Written		—			—			—			—
Distributions by other Investments Companies		—			—			3,330			—
Net Change in Unrealized Appreciation (Depreciation) on:
Investments		2,079,853			1,223,316			1,563,844			57,206
Short Sales		(1,183,272	)		—			—			—
Swaps		—			—			—			—
Options Written		—			—			—			—
Net Realized and Unrealized Gain (Loss)		1,775,706			2,499,331			2,994,002			105,169
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATONS	$	1,434,860		$	2,486,849		$	3,812,301		$	108,623

(1) Represents the period July 10, 2012 (commencement of operations) to December 31, 2012.

(2) Represents the period December 18, 2012 (commencement of operations) to December 31, 2012.

(3) Represents the period August 7, 2012 (commencement of operations) to December 31, 2012.

(4) Represents the period September 17, 2012 (commencement of operations) to December 31, 2012.

See accompanying Notes to Financial Statements.

90

ADVISORSHARES TRUST
Statements of Operations

For the Six Months Ended December 31, 2012 (Unaudited)

	Global Echo ETF			Madrona Domestic ETF			Madrona Global Bond ETF			Madrona International ETF			Meidell Tactical Advantage ETF
INVESTMENT INCOME:
Dividend Income	$	20,035		$	153,048		$	460,092		$	153,145		$	79,981
Dividend Income from Affiliates		—			—			—			—			—
Interest Income		13,441			81			169			144			78
Foreign withholding tax		(363	)		—			—			(16,974	)		—
Total Investment Income		33,113			153,129			460,261			136,315			80,059
EXPENSES:
Advisory Fees		27,402			61,700			56,964			58,113			60,004
Dividend Expense		—			—			—			—			—
Professional Fees		—			17,252			17,743			17,251			8,547
Accounting & Administration Fees		—			26,231			23,900			24,287			23,698
Exchange Listing Fees		—			4,410			4,410			4,410			4,063
Pricing Fees		—			2,548			2,548			2,548			2,548
Report to Shareholders		—			1,979			1,779			1,649			1,327
Custody Fees		—			8,418			610			9,660			846
Insurance Fees		—			—			—			—			382
Transfer Agent Fees		—			526			818			477			158
Trustee Fees		—			925			925			925			926
Interest on Securities Sold Short		—			—			—			—			—
Contribution to Global Echo Foundation		9,964			—			—			—			—
Licensing Fees		—			—			—			—			—
Registration Fees		—						347			114			105
Miscellaneous Fees		—			72			155			67			142
Total Expenses		37,366			124,061			110,199			119,501			102,746
Advisory Fees Waived/Recoupment		—			(27,655	)		(1,968	)		(28,700	)		(61,001	)
Expense Reimbursement		—			—			—			—			2,265
Net Expenses		37,366			96,406			108,231			90,801			44,010
Net Investment Income (Loss)		(4,253	)		56,723			352,030			45,514			36,049
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT, OPTIONS WRITTEN AND SWAP TRANSACTIONS:
Net Realized Gain (Loss) on:
Investments		(70,002	)		(305,675	)		(65,980	)		(596,662	)		44,686
In-Kind Redemptions		79,304			756,845			47,761			83,530			—
Swaps		—			—			—			—			—
Short Sales		(725	)		—			—			—			—
Options Written		—			—			—			—			—
Distributions by other Investments Companies		—			—			—			—			—
Net Change in Unrealized Appreciation (Depreciation) on:
Investments		67,655			893,117			634,735			2,534,773			188,964
Short Sales		—			—			—			—			—
Swaps		—			—			—			—			—
Options Written		—			—			—			—			—
Net Realized and Unrealized Gain (Loss)		76,232			1,344,287			616,516			2,021,641			233,650
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATONS	$	71,979		$	1,401,010		$	968,546		$	2,067,155		$	269,699

See accompanying Notes to Financial Statements.

91

ADVISORSHARES TRUST
Statements of Operations (continued)

For the Six Months Ended December 31, 2012 (Unaudited)

	Peritus High Yield ETF			Pring Turner Business Cycle ETF(2)			QAM Equity Hedge ETF(3)
INVESTMENT INCOME:
Dividend Income	$	—		$	4,726		$	19,412
Dividend Income from Affiliates		—			1,085			—
Interest Income		6,857,400			—			341
Foreign withholding tax		—			—			—
Total Investment Income		6,857,400			5,811			19,753
EXPENSES:
Advisory Fees		742,785			886			12,543
Dividend Expense		—			—			174
Professional Fees		60,084			1,175			28,357
Accounting & Administration Fees		39,039			668			6,379
Exchange Listing Fees		2,403			712			6,251
Pricing Fees		5,891			214			2,913
Report to Shareholders		6,645			285			4,244
Custody Fees		7,347			143			1,935
Insurance Fees		—			249			1,934
Transfer Agent Fees		4,557			53			610
Trustee Fees		871			54			1,378
Interest on Securities Sold Short		—			—			268
Contribution to Global Echo Foundation		—			—			—
Licensing Fees		—			—			—
Registration Fees		2,699						98
Miscellaneous Fees		325			—			117
Total Expenses		872,646			4,439			67,201
Advisory Fees Waived/Recoupment		30,881			(3,119	)		(47,945	)
Expense Reimbursement		(149	)		—			—
Net Expenses		903,378			1,320			19,256
Net Investment Income (Loss)		5,954,022			4,491			497
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT, OPTIONS WRITTEN AND SWAP TRANSACTIONS:
Net Realized Gain (Loss) on:
Investments		96,993			—			7,065
In-Kind Redemptions		—			—			—
Swaps		—			—			6,980
Short Sales		—			—			(44	)
Options Written		—			—			—
Distributions by other Investments Companies		18			—			—
Net Change in Unrealized Appreciation (Depreciation) on:
Investments		3,279,605			(13,613	)		79,759
Short Sales		—			—			(1,464	)
Swaps		—			—			9,064
Options Written		—			—			—
Net Realized and Unrealized Gain (Loss)		3,376,616			(13,613	)		101,360
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATONS	$	9,330,638		$	(9,122	)	$	101,857

(1) Represents the period July 10, 2012 (commencement of operations) to December 31, 2012.

(2) Represents the period December 18, 2012 (commencement of operations) to December 31, 2012.

(3) Represents the period August 7, 2012 (commencement of operations) to December 31, 2012.

(4) Represents the period September 17, 2012 (commencement of operations) to December 31, 2012.

See accompanying Notes to Financial Statements.

92

ADVISORSHARES TRUST
Statements of Operations

For the Six Months Ended December 31, 2012 (Unaudited)

	Ranger Equity Bear ETF			Rockledge SectorSAM			STAR Global Buy-Write ETF(4)			TrimTabs Float Shrink ETF			WCM/BNY Mellon Focused Growth ADR ETF
INVESTMENT INCOME:
Dividend Income	$	—		$	10,280		$	61,655		$	103,178		$	48,413
Dividend Income from Affiliates		—			—			—			—			—
Interest Income		17,112			—			—			3			38
Foreign withholding tax		—			—			—			—			(4,507	)
Total Investment Income		17,112			10,280			61,655			103,181			43,944
EXPENSES:
Advisory Fees		2,383,695			59,677			34,720			46,791			59,677
Dividend Expense		1,492,789			13,734			—			—			—
Professional Fees		9,108			26,264			19,004			18,029			20,920
Accounting & Administration Fees		70,119			10,595			4,725			15,535			28,379
Exchange Listing Fees		128			9,159			6,284			12,654			2,443
Pricing Fees		7,457			4,369			2,286			2,308			1,468
Report to Shareholders		17,232			2,065			3,423			1,531			2,293
Custody Fees		13,094			511			1,688			4,232			338
Insurance Fees		1,464			371			471			411			407
Transfer Agent Fees		13,620			50			741			243			885
Trustee Fees		886			957			589			931			934
Interest on Securities Sold Short		1,302,316			3,749			—			—			—
Contribution to Global Echo Foundation		—			—			—			—			—
Licensing Fees		—			—			—			—			693
Registration Fees		8,195			8			293			88
Miscellaneous Fees		335			43			72			11			52
Total Expenses		5,320,438			131,552			74,296			102,764			118,489
Advisory Fees Waived/Recoupment		—			(99,765	)		(26,717	)		(55,973	)		(76,577	)
Expense Reimbursement		—			—			—			—			—
Net Expenses		5,320,438			31,787			47,579			46,791			41,912
Net Investment Income (Loss)		(5,303,326	)		(21,507	)		14,076			56,390			2,032
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT, OPTIONS WRITTEN AND SWAP TRANSACTIONS:
Net Realized Gain (Loss) on:
Investments		(49,526,431	)		168,574			(25,142	)		(61,842	)		(258,933	)
In-Kind Redemptions		—			55,748			—			547,209			—
Swaps		—			—			—			—			—
Short Sales		—			(216,735	)		—			—			—
Options Written		—			—			97,237			—			—
Distributions by other Investments Companies		—			—			—			—			25
Net Change in Unrealized Appreciation (Depreciation) on:
Investments		—			(48,560	)		(21,337	)		(222,482	)		832,436
Short Sales		(23,793,172	)		84,977			—			—			—
Swaps		—			—			—			—			—
Options Written		—			—			(13,374	)		—			—
Net Realized and Unrealized Gain (Loss)		(73,319,603	)		44,004			37,384			262,885			573,528
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATONS	$	(78,622,929	)	$	22,497		$	51,460		$	319,275		$	575,560

See accompanying Notes to Financial Statements.

93

ADVISORSHARES TRUST
Statements of Changes in Net Assets

 

	Accuvest Global Long Short ETF						Accuvest Global Opportunities ETF
	Six months ended December 31, 2012 (Unaudited)			Year ended June 30, 2012			Six months ended December 31, 2012 (Unaudited)			For the period January 25, 2012* to June 30, 2012
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income (Loss)	$	(340,846	)	$	(275,255	)	$	(12,482	)	$	128,764
Net Realized Gain (Loss)		879,125			(713,322	)		1,276,015			(1,099,990	)
Net Change in Unrealized Appreciation (Depreciation)		896,581			1,412,849			1,223,316			96,758
Net Increase (Decrease) In Net Assets Resulting From Operations		1,434,860			424,272			2,486,849			(874,468	)
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income		—			—			(185,454	)		—
Net Realized Gains		—			(46,188	)		—			—
Total Distributions		—			(46,188	)		(185,454	)		—
CAPITAL STOCK TRANSACTIONS
Proceeds from Shares Issued		41,142,005			18,018,647			30,864,994			14,316,721
Value of Shares Redeemed		(32,501,987	)		(9,760,167	)		(29,581,333	)		—
Net Increase (Decrease) From Capital Stock Transactions		8,640,018			8,258,480			1,283,661			14,316,721
Net Increase (Decrease) in Net Assets		10,074,878			8,636,564			3,585,056			13,442,253
Net Assets:
Beginning of Period		18,021,964			9,385,400			13,442,253			—
End of Period	$	28,096,842		$	18,021,964		$	17,027,309		$	13,442,253
Undistributed Net Investment Income (Loss)	$	(535,665	)	$	(194,819	)	$	(69,172	)	$	128,764
Changes in Shares Outstanding
Shares Outstanding, Beginning of Year		850,000			450,000			550,000			—
Shares Sold		1,900,000			850,000			1,175,000			550,000
Shares Repurchased		(1,500,000	)		(450,000	)		(1,125,000	)		—
End of Period		1,250,000			850,000			600,000			550,000

* Commencement of operations

(1) Formerly Active Bear ETF.

See accompanying Notes to Financial Statements.

94

ADVISORSHARES TRUST
Statements of Changes in Net Assets

 

	Cambria Global Tactical ETF						Global Alpha & Beta ETF			Global Echo ETF						Madrona Domestic ETF
	Six months ended December 31, 2012 (Unaudited)			Year ended June 30, 2012			For the period July 10, 2012* to December 31, 2012 (Unaudited)			Six months ended December 31, 2012 (Unaudited)			For the period May 23, 2012* to June 30, 2012			Six months ended December 31, 2012 (Unaudited)			Year ended June 30, 2012
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income (Loss)	$	818,299		$	1,200,751		$	3,454		$	(4,253	)	$	(5,492	)	$	56,723		$	59,535
Net Realized Gain (Loss)		1,430,158			(15,287,214	)		47,963			8,577			(57,292	)		451,170			(760,024	)
Net Change in Unrealized Appreciation (Depreciation)		1,563,844			81,278			57,206			67,655			58,460			893,117			(88,849	)
Net Increase (Decrease) In Net Assets Resulting From Operations		3,812,301			(14,005,185	)		108,623			71,979			(4,324	)		1,401,010			(789,338	)
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income		(1,451,034	)		(1,214,084	)		(6,753	)		—			—			(73,945	)		(39,582	)
Net Realized Gains		—			—			(948	)		(23,426	)		—			—			—
Total Distributions		(1,451,034	)		(1,214,084	)		(7,701	)		(23,426	)		—			(73,945	)		(39,582	)
CAPITAL STOCK TRANSACTIONS
Proceeds from Shares Issued		—			9,060,733			2,500,000			2,568,702			25,000,000			3,412,261			15,229,540
Value of Shares Redeemed		(16,953,242	)		(94,507,088	)		(1,297,563	)		(2,559,048	)		(19,916,059	)		(4,728,400	)		(1,818,962	)
Net Increase (Decrease) From Capital Stock Transactions		(16,953,242	)		(85,446,355	)		1,202,437			9,654			5,083,941			(1,316,139	)		13,410,578
Net Increase (Decrease) in Net Assets		(14,591,975	)		(100,665,624	)		1,303,359			58,207			5,079,617			10,926			12,581,658
Net Assets:
Beginning of Period		78,170,948			178,836,572			—			5,079,617			—			15,188,220			2,606,562
End of Period	$	63,578,973		$	78,170,948		$	1,303,359		$	5,137,824		$	5,079,617		$	15,199,146		$	15,188,220
Undistributed Net Investment Income (Loss)	$	(283,118	)	$	349,617		$	(3,299	)	$	(4,253	)	$	—		$	590		$	17,812
Changes in Shares Outstanding
Shares Outstanding, Beginning of Year		3,300,000			6,900,000			—			100,000			—			600,000			100,000
Shares Sold		—			350,000			100,000			50,000			500,000			125,000			575,000
Shares Repurchased		(700,000	)		(3,950,000	)		(50,000	)		(50,000	)		(400,000	)		(175,000	)		(75,000	)
End of Period		2,600,000			3,300,000			50,000			100,000			100,000			550,000			600,000

See accompanying Notes to Financial Statements.

95

ADVISORSHARES TRUST
Statements of Changes in Net Assets (continued)

 

	Madrona Global Bond ETF						Madrona International ETF
	Six months ended December 31, 2012 (unaudited)			Year ended June 30, 2012			Six months ended December 31, 2012 (Unaudited)			Year ended June 30, 2012
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income (Loss)	$	352,030		$	444,600		$	45,514		$	185,886
Net Realized Gain (Loss)		(18,219	)		37,262			(513,132	)		(1,956,752	)
Net Change in Unrealized Appreciation (Depreciation)		634,735			359,809			2,534,773			(1,356,411	)
Net Increase (Decrease) In Net Assets Resulting From Operations		968,546			841,671			2,067,155			(3,127,277	)
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income		(295,931	)		(441,742	)		(185,288	)		(43,912	)
Net Realized Gains		(3,106	)		—			—			(13,200	)
Total Distributions		(299,037	)		(441,742	)		(185,288	)		(57,112	)
CAPITAL STOCK TRANSACTIONS
Proceeds from Shares Issued		3,947,922			19,573,154			—			16,407,072
Value of Shares Redeemed		(2,643,237	)		(1,279,141	)		(1,089,716	)		(1,621,054	)
Net Increase (Decrease) From Capital Stock Transactions		1,304,685			18,294,013			(1,089,716	)		14,786,018
Net Increase (Decrease) in Net Assets		1,974,194			18,693,942			792,151			11,601,629
Net Assets:
Beginning of Period		21,194,969			2,501,027			14,218,716			2,617,087
End of Period	$	23,169,163		$	21,194,969		$	15,010,867		$	14,218,716
Undistributed Net Investment Income (Loss)	$	61,135		$	5,036		$	3,481		$	143,255
Changes in Shares Outstanding
Shares Outstanding, Beginning of Year		825,000			100,000			675,000			100,000
Shares Sold		150,000			775,000			—			650,000
Shares Repurchased		(100,000	)		(50,000	)		(50,000	)		(75,000	)
End of Period		875,000			825,000			625,000			675,000

* Commencement of operations

(1) Formerly Active Bear ETF.

See accompanying Notes to Financial Statements.

96

ADVISORSHARES TRUST
Statements of Changes in Net Assets

 

	Meidell Tactical Advantage ETF						Peritus High Yield ETF						Pring Turner Business Cycle ETF			QAM Equity Hedge ETF
	Six months ended December 31, 2012 (Unaudited)			Year ended June 30, 2012			Six months ended December 31, 2012 (Unaudited)			Year ended June 30, 2012			For the period December 18, 2012* to December 31, 2012			For the period August 7, 2012* to December 31, 2012
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income (Loss)	$	36,049		$	407		$	5,954,022		$	5,808,398		$	4,491		$	497
Net Realized Gain (Loss)		44,686			(149,563	)		97,011			373,233			—			14,001
Net Change in Unrealized Appreciation (Depreciation)		188,964			8,535			3,279,605			(2,589,171	)		(13,613	)		87,359
Net Increase (Decrease) In Net Assets Resulting From Operations		269,699			(140,621	)		9,330,638			3,592,460			(9,122	)		101,857
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income		(64,270	)		(1,366	)		(6,169,010	)		(5,707,019	)		—			(11,280	)
Net Realized Gains		—			—			(20,661	)		(612,898	)		—			(15,366	)
Total Distributions		(64,270	)		(1,366	)		(6,189,671	)		(6,319,917	)		—			(26,646	)
CAPITAL STOCK TRANSACTIONS
Proceeds from Shares Issued		1,250,338			7,926,365			81,746,156			58,595,073			2,500,000			3,766,470
Value of Shares Redeemed		—			(4,637,924	)		—			(7,389,685	)		—			—
Net Increase (Decrease) From Capital Stock Transactions		1,250,338			3,288,441			81,746,156			51,205,388			2,500,000			3,766,470
Net Increase (Decrease) in Net Assets		1,455,767			3,146,454			84,887,123			48,477,931			2,490,878			3,841,681
Net Assets:
Beginning of Period		5,652,409			2,505,955			92,328,489			43,850,558			—			—
End of Period	$	7,108,176		$	5,652,409		$	177,215,612		$	92,328,489		$	2,490,878		$	3,841,681
Undistributed Net Investment Income (Loss)	$	(27,814	)	$	407		$	6,038		$	221,026		$	4,491		$	(10,783	)
Changes in Shares Outstanding
Shares Outstanding, Beginning of Year		225,000			100,000			1,900,000			850,000			—			—
Shares Sold		50,000			300,000			1,650,000			1,200,000			100,000			150,000
Shares Repurchased		—			(175,000	)		—			(150,000	)		—			—
End of Period		275,000			225,000			3,550,000			1,900,000			100,000			150,000

See accompanying Notes to Financial Statements.

97

ADVISORSHARES TRUST
Statements of Changes in Net Assets (continued)

 

	Ranger Equity Bear ETF(1)						Rockledge SectorSAM
	Six months ended December 31, 2012 (Unaudited)			Year ended June 30, 2012			Six months ended December 31, 2012 (Unaudited)			For the period January 11, 2012* to June 30, 2012
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income (Loss)	$	(5,303,326	)	$	(4,444,600	)	$	(21,507	)	$	(23,270	)
Net Realized Gain (Loss)		(49,526,431	)		(6,817,156	)		7,587			10,335
Net Change in Unrealized Appreciation (Depreciation)		(23,793,172	)		6,206,740			36,417			(135	)
Net Increase (Decrease) In Net Assets Resulting From Operations		(78,622,929	)		(5,055,016	)		22,497			(13,070	)
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income		—			—			—			—
Net Realized Gains		—			—			(18,966	)		—
Total Distributions		—			—			(18,966	)		—
CAPITAL STOCK TRANSACTIONS
Proceeds from Shares Issued		141,245,333			363,431,857			1,268,841			5,057,608
Value of Shares Redeemed		(156,896,360	)		(95,542,692	)		(2,552,300	)		(2,522,528	)
Net Increase (Decrease) From Capital Stock Transactions		(15,651,027	)		267,889,165			(1,283,459	)		2,535,080
Net Increase (Decrease) in Net Assets		(94,273,956	)		262,834,149			(1,279,928	)		2,522,010
Net Assets:
Beginning of Period		313,223,483			50,389,334			2,522,010			—
End of Period	$	218,949,527		$	313,223,483		$	1,242,082		$	2,522,010
Undistributed Net Investment Income (Loss)	$	(8,183,715	)	$	(2,880,389	)	$	(34,932	)	$	(13,425	)
Changes in Shares Outstanding
Shares Outstanding, Beginning of Year		13,425,000			2,225,000			100,000			—
Shares Sold		6,475,000			15,025,000			50,000			200,000
Shares Repurchased		(7,950,000	)		(3,825,000	)		(100,000	)		(100,000	)
End of Period		11,950,000			13,425,000			50,000			100,000

* Commencement of operations

(1) Formerly Active Bear ETF.

See accompanying Notes to Financial Statements.

98

ADVISORSHARES TRUST
Statements of Changes in Net Assets

 

	STAR Global Buy-Write ETF			TrimTabs Float Shrink ETF						WCM/BNY Mellon Focused Growth ADR ETF
	For the period September 17, 2012* to December 31, 2012 (Unaudited)			Six months ended December 31, 2012 (Unaudited)			For the period October 5, 2011* to June 30, 2012			Six months ended December 31, 2012 (Unaudited)			Year ended June 30, 2012
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income (Loss)	$	14,076		$	56,390		$	15,360		$	2,032		$	17,389
Net Realized Gain (Loss)		72,095			485,367			965,959			(258,908	)		442,270
Net Change in Unrealized Appreciation (Depreciation)		(34,711	)		(222,482	)		317,226			832,436			(1,162,845	)
Net Increase (Decrease) In Net Assets Resulting From Operations		51,460			319,275			1,298,545			575,560			(703,186	)
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income		(91,839	)		(69,328	)		(2,501	)		(14,409	)		(25,106	)
Net Realized Gains		(17,177	)		(40,008	)		—			—			(27,533	)
Total Distributions		(109,016	)		(109,336	)		(2,501	)		(14,409	)		(52,639	)
CAPITAL STOCK TRANSACTIONS
Proceeds from Shares Issued		13,614,994			17,179,972			37,243,628			—			4,339,699
Value of Shares Redeemed		—			(14,589,728	)		(30,248,798	)		—			(5,772,068	)
Net Increase (Decrease) From Capital Stock Transactions		13,614,994			2,590,244			6,994,830			—			(1,432,369	)
Net Increase (Decrease) in Net Assets		13,557,438			2,800,183			8,290,874			561,151			(2,188,194	)
Net Assets:
Beginning of Period		—			8,290,874			—			6,462,409			8,650,603
End of Period	$	13,557,438		$	11,091,057		$	8,290,874		$	7,023,560		$	6,462,409
Undistributed Net Investment Income (Loss)	$	(77,763	)	$	(448	)	$	12,490		$	(145	)	$	12,232
Changes in Shares Outstanding
Shares Outstanding, Beginning of Year		—			250,000			—			225,000			275,000
Shares Sold		550,000			500,000			1,200,000			—			150,000
Shares Repurchased		—			(425,000	)		(950,000	)		—			(200,000	)
End of Period		550,000			325,000			250,000			225,000			225,000

See accompanying Notes to Financial Statements.

99

ADVISORSHARES TRUST
Statements of Cash Flows (Unaudited)

 

	Accuvest Global Long Short ETF			QAM Equity Hedge ETF			Ranger Equity Bear ETF(1)			Rockledge SectorSAM ETF
	For the six months ended December 31, 2012			For the period August 7, 2012* to December 31, 2012			For the six months ended December 31, 2012
CASH FLOWS PROVIDED (USED) BY OPERATING ACTIVITIES:
Dividends received	$	164,717		$	16,285		$	—		$	2,414
Interest received		1			259			15,484			—
Operating expenses paid		(151,564	)		(36,468	)		(2,570,244	)		3,031
Net purchases of short-term investments		(2,376,800	)		(1,035,686	)		82,661,484			—
Realized gain (loss) on swap contracts		—			7,444			—			—
Purchases of long-term investments		(62,421,836	)		(4,499,304	)		—			1,531,447
Proceeds from disposition of long-term investments		56,063,689			1,775,149			—
Increase/Decrease in receivables for securities sold		1,394,636			—			16,390,162			(590,192	)
Increase/Decrease in payables for securities purchased		—			5,864			(13,108,681	)		586,691
Net increase in short sales		1,446,849			55,319			(163,390,987	)		(1,512,237	)
Dividends paid		(99,422	)		(131	)		(1,670,018	)		(4,622	)
Interest paid		(222,806	)		(268	)		(1,235,264	)		(4,000	)
Net Cash Provided (Used) By Operating Activities		(6,202,536	)		(3,711,537	)		(82,908,064	)		12,532
CASH FLOWS PROVIDED (USED) BY FINANCING ACTIVITIES:
Net proceeds from sale of shares		8,761,305			3,766,470			(7,741,723	)		(1,283,459	)
Deposits with brokers for swap contracts and short sales		(2,623,985	)		(54,918	)		140,514,787			1,234,752
Net Cash Flows Provided (Used) By Financing Activities		6,137,320			3,711,552			132,773,064			(48,707	)
NET INCREASE/DECREASE IN CASH		(65,216	)		15			49,865,000			(36,175	)
Cash, Beginning of period		65,216			—			66,557,758			80,079
Cash, End of period	$	—		$	15		$	116,422,758		$	43,904
RECONCILIATION OF INCREASE/ (DECREASE) IN NET ASSETS FROM OPERATIONS TO NET CASH FLOWS PROVIDED (USED) BY OPERATING ACTIVITIES:
Increase/Decrease in Net Assets From Operation	$	1,434,860		$	101,857		$	(78,622,929	)	$	22,497
Increase/Decrease in investments, at value		(9,063,804	)		(3,798,438	)		(7,409,900	)		(24,794	)
Increase/Decrease in payable for securities purchased		—			5,864			(13,108,681	)		586,691
Increase/Decrease in receivable for securities sold		1,394,636			—			16,390,162			(590,192	)
Increase/Decrease in interest receivable		5,252			(82	)		(1,628	)		(7,866	)
Increase/Decrease in dividends receivable		—			(3,127	)		—			—
Increase/Decrease in prepaid expense		6,404			(27,779	)		(28,821	)		13,363
Increase/Decrease in interest payable		(16,184	)		—			67,052			(251	)
Increase/Decrease in dividends payable		6,431			43			(177,229	)		9,112
Increase/Decrease in accrued expenses		29,869			10,125			(16,090	)		3,972
Total Adjustments		(7,637,396	)		(3,813,394	)		(4,285,135	)		(9,965	)
Net Cash Flows Provided (Used) By Operating Activities	$	(6,202,536	)	$	(3,711,537	)	$	(82,908,064	)	$	12,532

* Commencement of operations.

(1) Formerly Active Bear ETF

See accompanying Notes to Financial Statements.

100

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ADVISORSHARES TRUST
Financial Highlights

 

	Accuvest Global Long Short ETF
	Six months ended December 31, 2012 (Unaudited)			Year ended June 30, 2012			For the period July 9, 2010* to June 30, 2011
Selected Data for a Share of Capital Stock Outstanding
Net Asset Value, Beginning of Period	$	21.20		$	20.86		$	25.00
Investment Operations
Net Investment Income (Loss)(1)		(0.30	)		(0.68	)		(0.67	)
Net Realized and Unrealized Gain (Loss)		1.58			1.33			(3.47	)
Distributions of Net Realized Gains by other investment companies		—			—			—
Net Increase (Decrease) in Net Assets Resulting from Investment Operations		1.28			0.65			(4.14	)
Distributions from Net Investment Income		—			(0.31	)		—
Distributions from Net Realized Gains		—			—			—
Total Distributions.		—			(0.31	)		—
Net Asset Value, End of Period	$	22.48		$	21.20		$	20.86
Market Value, End of Period	$	22.51		$	21.22		$	20.86
Total Return
Total Investment Return Based on Net Asset Value(3)		6.04	%		3.15	%		(16.56	)%
Total Investment Return Based on Market(3)		6.08	%		3.24	%		(16.56	)%
Ratios/Supplemental Data
Net Assets, End of Period (000's omitted)	$	28,097		$	18,022		$	9,385
Ratio to Average Net Assets of:
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(4)		1.50	%		1.50	%		1.50	%
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(4)		4.46	%		8.15	%		3.33	%
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(4)		1.97	%		3.88	%		1.73	%
Net investment Income (Loss)(4)		(2.72	)%		(3.20	)%		(2.82	)%
Portfolio Turnover Rate(5)		89	%		365	%		751	%

* Commencement of operations.

(1) Based on average shares outstanding.

(2) Less than $0.005.

(3) Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Periods less than one year are not annualized. Market value total return is calculated assuming an initial investment made at the market value at the beginning of the period, reinvestment of all dividends and distributions at market value during the period, and sale at the market value on the last day of ther period.

(4) Ratios of periods of less than one year have been annualized.

(5) Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as in-kind creations or redemptions of the Fund's capital shares.

(6) Formerly Active Bear ETF

(7) For the six months ended December 31, 2012, investment income per share reflects a special dividend which amounted to less than $0.005 per share. Excluding the special dividend, the ratio of net investment income to average net assets would have been (0.19)%.

(8) For the six months ended December 31, 2012, investment income per share reflects a special dividend which amounted to $0.02 per share. Excluding the special dividend, the ratio of net investment income to average net assets would have been 0.55%.

(9) For the six months ended December 31, 2012, investment income per share reflects a special dividend which amounted to less than $0.005 per share. Excluding the special dividend, the ratio of net investment income to average net assets would have been 0.62%.

(10) For the six months ended December 31, 2012, investment income per share reflects a special dividend which amounted to $0.01 per share. Excluding the special dividend, the ratio of net investment income to average net assets would have been (3.25)%.

(11) For the six months ended December 31, 2012, investment income per share reflects a special dividend which amounted to $0.04 per share. Excluding the special dividend, the ratio of net investment income to average net assets would have been 0.94%.

(12) For the six months ended December 31, 2012, investment income per share reflects a special dividend which amounted to $0.01 per share. Excluding the special dividend, the ratio of net investment income to average net assets would have been less than 0.005%.

See accompanying Notes to Financial Statements.

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ADVISORSHARES TRUST
Financial Highlights

 

	Accuvest Global Opportunities ETF						Cambria Global Tactical ETF
	Six months ended December 31, 2012 (Unaudited)			For the period January 25, 2012* to June 30, 2012			Six months ended December 31, 2012 (Unaudited)			Year ended June 30, 2012			For the period October 26, 2010* to June 30, 2011
Selected Data for a Share of Capital Stock Outstanding
Net Asset Value, Beginning of Period	$	24.44		$	25.00		$	23.69		$	25.92		$	25.10
Investment Operations
Net Investment Income (Loss)(1)		(0.02	)		0.31			0.28			0.21			0.25
Net Realized and Unrealized Gain (Loss)		4.27			(0.87	)		1.04			(2.24	)		0.79
Distributions of Net Realized Gains by other investment companies		—			—			—			—			—
Net Increase (Decrease) in Net Assets Resulting from Investment Operations		4.25			(0.56	)		1.32			(2.03	)		1.04
Distributions from Net Investment Income		(0.31	)		—			(0.56	)		—			(0.22	)
Distributions from Net Realized Gains		—			—			—			(0.20	)		—
Total Distributions.		(0.31	)		—			(0.56	)		(0.20	)		(0.22	)
Net Asset Value, End of Period	$	28.38		$	24.44		$	24.45		$	23.69		$	25.92
Market Value, End of Period	$	28.38		$	24.45		$	24.42		$	23.64		$	25.93
Total Return
Total Investment Return Based on Net Asset Value(3)		17.40	%		(2.24	)%		5.58	%		(7.84	)%		4.17	%
Total Investment Return Based on Market(3)		16.07	%		(2.20	)%		3.30	%		(8.07	)%		4.20	%
Ratios/Supplemental Data
Net Assets, End of Period (000's omitted)	$	17,027		$	13,442		$	63,579		$	78,171		$	178,837
Ratio to Average Net Assets of:
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(4)		1.25	%		1.25	%		1.07	%		0.99	%		1.02	%
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(4)		1.56	%		2.27	%		1.10	%		1.08	%		1.04	%
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(4)		1.56	%		2.27	%		1.10	%		1.08	%		1.04	%
Net investment Income (Loss)(4)		(0.16	)%		2.90	%		2.26	%		0.87	%		1.45	%
Portfolio Turnover Rate(5)		34	%		135	%		120	%		475	%		187	%

See accompanying Notes to Financial Statements.

103

ADVISORSHARES TRUST
Financial Highlights (continued)

 

	Global Alpha & Beta ETF			Global Echo ETF
	For the period July 10, 2012* to December 31, 2012 (Unaudited)			Six months ended December 31, 2012 (Unaudited)			For the period May 23, 2012* to June 30, 2012
Selected Data for a Share of Capital Stock Outstanding
Net Asset Value, Beginning of Period	$	25.00		$	50.80		$	50.00
Investment Operations
Net Investment Income (Loss)(1)		0.05			(0.04	)(7)		(0.02	)
Net Realized and Unrealized Gain (Loss)		1.17			0.85			0.82
Distributions of Net Realized Gains by other investment companies		—			—			–
Net Increase (Decrease) in Net Assets Resulting from Investment Operations		1.22			0.81			0.80
Distributions from Net Investment Income		(0.13	)		—			–
Distributions from Net Realized Gains		(0.02	)		(0.23	)		–
Total Distributions.		(0.15	)		(0.23	)		–
Net Asset Value, End of Period	$	26.07		$	51.38		$	50.80
Market Value, End of Period	$	26.03		$	51.63		$	50.99
Total Return
Total Investment Return Based on Net Asset Value(3)		4.90	%		1.60	%		1.60	%
Total Investment Return Based on Market(3)		4.12	%		1.71	%		1.98	%
Ratios/Supplemental Data
Net Assets, End of Period (000's omitted)	$	1,303		$	5,138		$	5,080
Ratio to Average Net Assets of:
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(4)		1.25	%		1.50	%		1.50	%
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(4)		7.05	%		1.50	%		1.50	%
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(4)		7.05	%		1.50	%		1.50	%
Net investment Income (Loss)(4)		0.44	%		(0.17	)%(7)		(0.32	)%
Portfolio Turnover Rate(5)		24	%		100	%		70	%

See accompanying Notes to Financial Statements.

104

ADVISORSHARES TRUST
Financial Highlights

 

	Madrona Domestic ETF									Madrona Global Bond ETF
	Six months ended December 31, 2012 (Unaudited)			Year ended June 30, 2012			For the period June 21, 2011* to June 30, 2011			Six months ended December 31, 2012 (Unaudited)			Year ended June 30, 2012			For the period June 21, 2011* to June 30, 2011
Selected Data for a Share of Capital Stock Outstanding
Net Asset Value, Beginning of Period	$	25.31		$	26.07		$	25.00		$	25.69		$	25.01		$	25.00
Investment Operations
Net Investment Income (Loss)(1)		0.10	(8)		0.10			—	(2)		0.41			0.71			0.01
Net Realized and Unrealized Gain (Loss)		2.35			(0.79	)		1.07			0.72			0.67			—
Distributions of Net Realized Gains by other investment companies		—			—			—			—			—			—
Net Increase (Decrease) in Net Assets Resulting from Investment Operations		2.45			(0.69	)		1.07			1.13			1.38			0.01
Distributions from Net Investment Income		(0.13	)		(0.07	)		—			(0.34	)		(0.70	)		—
Distributions from Net Realized Gains		—			—			—			—	(2)		—			—
Total Distributions.		(0.13	)		(0.07	)		—			(0.34	)		(0.70	)		—
Net Asset Value, End of Period	$	27.63		$	25.31		$	26.07		$	26.48		$	25.69		$	25.01
Market Value, End of Period	$	27.65		$	25.28		$	26.07		$	26.48		$	25.68		$	25.02
Total Return
Total Investment Return Based on Net Asset Value(3)		9.68	%		(2.65	)%		4.28	%		4.44	%		5.59	%		0.04	%
Total Investment Return Based on Market(3)		9.88	%		(2.76	)%		4.28	%		4.48	%		5.49	%		0.08	%
Ratios/Supplemental Data
Net Assets, End of Period (000's omitted)	$	15,199		$	15,188		$	2,607		$	23,169		$	21,195		$	2,501
Ratio to Average Net Assets of:
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(4)		1.25	%		1.25	%		1.25	%		0.95	%		0.95	%		0.95	%
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(4)		1.61	%		1.46	%		10.96	%		0.97	%		0.99	%		11.08	%
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(4)		1.61	%		1.46	%		10.96	%		0.97	%		0.99	%		11.08	%
Net investment Income (Loss)(4)		0.74	%(8)		0.40	%		0.23	%		3.09	%		2.81	%		1.68	%
Portfolio Turnover Rate(5)		23	%		40	%		0	%		13	%		12	%		0	%

See accompanying Notes to Financial Statements.

105

ADVISORSHARES TRUST
Financial Highlights (continued)

 

	Madrona International ETF
	Six months ended December 31, 2012 (Unaudited)			Year ended June 30, 2012			For the period June 21, 2011* to June 30, 2011
Selected Data for a Share of Capital Stock Outstanding
Net Asset Value, Beginning of Period	$	21.06		$	26.17		$	25.00
Investment Operations
Net Investment Income (Loss)(1)		0.07	(9)		0.32			0.01
Net Realized and Unrealized Gain (Loss)		3.19			(5.33	)		1.16
Distributions of Net Realized Gains by other investment companies		—			—			—
Net Increase (Decrease) in Net Assets Resulting from Investment Operations		3.26			(5.01	)		1.17
Distributions from Net Investment Income		(0.30	)		(0.08	)		—
Distributions from Net Realized Gains		—			(0.02	)		—
Total Distributions.		(0.30	)		(0.10	)		—
Net Asset Value, End of Period	$	24.02		$	21.06		$	26.17
Market Value, End of Period	$	23.96		$	21.11		$	26.18
Total Return
Total Investment Return Based on Net Asset Value(3)		15.48	%		(19.11	)%		4.68	%
Total Investment Return Based on Market(3)		14.90	%		(18.95	)%		4.72	%
Ratios/Supplemental Data
Net Assets, End of Period (000's omitted)	$	15,011		$	14,219		$	2,617
Ratio to Average Net Assets of:
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(4)		1.25	%		1.25	%		1.25	%
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(4)		1.65	%		1.54	%		10.99	%
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(4)		1.65	%		1.54	%		10.99	%
Net investment Income (Loss)(4)		0.63	%(9)		1.48	%		1.14	%
Portfolio Turnover Rate(5)		66	%		110	%		19	%

See accompanying Notes to Financial Statements.

106

ADVISORSHARES TRUST
Financial Highlights

 

	Meidell Tactical Advantage ETF
	Six months ended December 31, 2012 (Unaudited)			Year ended June 30, 2012			For the period June 23, 2011* to June 30, 2011
Selected Data for a Share of Capital Stock Outstanding
Net Asset Value, Beginning of Period	$	25.12		$	25.06		$	25.00
Investment Operations
Net Investment Income (Loss)(1)		0.14			—	(2)		0.01
Net Realized and Unrealized Gain (Loss)		0.82			0.08			0.05
Distributions of Net Realized Gains by other investment companies		—			—			—
Net Increase (Decrease) in Net Assets Resulting from Investment Operations		0.96			0.08			0.06
Distributions from Net Investment Income		(0.23	)		(0.02	)		—
Distributions from Net Realized Gains		—			—			—
Total Distributions.		(0.23	)		(0.02	)		—
Net Asset Value, End of Period	$	25.85		$	25.12		$	25.06
Market Value, End of Period	$	25.86		$	25.48		$	25.07
Total Return
Total Investment Return Based on Net Asset Value(3)		3.84	%		0.31	%		0.24	%
Total Investment Return Based on Market(3)		1.49	%		1.71	%		0.28	%
Ratios/Supplemental Data
Net Assets, End of Period (000's omitted)	$	7,108		$	5,652		$	2,506
Ratio to Average Net Assets of:
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(4)		1.35	%		1.35	%		1.35	%
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(4)		3.15	%		3.69	%		13.70	%
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(4)		3.15	%		3.69	%		13.70	%
Net investment Income (Loss)(4)		1.11	%		0.01	%		1.00	%
Portfolio Turnover Rate(5)		370	%		817	%		5	%

See accompanying Notes to Financial Statements.

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ADVISORSHARES TRUST
Financial Highlights (continued)

 

	Peritus High Yield ETF
	Six months ended December 31, 2012 (Unaudited)			Year ended June 30, 2012			For the period December 1, 2010* to June 30, 2011
Selected Data for a Share of Capital Stock Outstanding
Net Asset Value, Beginning of Period	$	48.59		$	51.59		$	50.00
Investment Operations
Net Investment Income (Loss)(1)		2.20			4.20			2.25
Net Realized and Unrealized Gain (Loss)		1.30			(2.74	)		1.30
Distributions of Net Realized Gains by other investment companies		—			—	(2)		—
Net Increase (Decrease) in Net Assets Resulting from Investment Operations		3.50			1.46			3.55
Distributions from Net Investment Income		(2.16	)		(3.99	)		(1.96	)
Distributions from Net Realized Gains		(0.01	)		(0.47	)		—
Total Distributions.		(2.17	)		(4.46	)		(1.96	)
Net Asset Value, End of Period	$	49.92		$	48.59		$	51.59
Market Value, End of Period	$	50.08		$	48.64		$	51.87
Total Return
Total Investment Return Based on Net Asset Value(3)		7.32	%		3.27	%		7.16	%
Total Investment Return Based on Market(3)		7.54	%		2.75	%		7.73	%
Ratios/Supplemental Data
Net Assets, End of Period (000's omitted)	$	177,216		$	92,328		$	43,851
Ratio to Average Net Assets of:
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(4)		1.34	%		1.35	%		1.34	%
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(4)		1.34	%		1.35	%		1.57	%
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(4)		1.34	%		1.35	%		1.57	%
Net investment Income (Loss)(4)		8.82	%		8.64	%		7.47	%
Portfolio Turnover Rate(5)		16	%		80	%		81	%

See accompanying Notes to Financial Statements.

108

ADVISORSHARES TRUST
Financial Highlights

 

	Pring Turner Business Cycle ETF			QAM Equity Hedge ETF			Ranger Equity Bear ETF(6)
	For the period December 18, 2012* to December 31, 2012 (Unaudited)			For the period August 7, 2012* to December 31, 2012 (Unaudited)			Six months ended December 31, 2012 (Unaudited)			Year ended June 30, 2012			For the period January 27, 2011* to June 30, 2011
Selected Data for a Share of Capital Stock Outstanding
Net Asset Value, Beginning of Period	$	25.00		$	25.00		$	23.33		$	22.65		$	25.00
Investment Operations
Net Investment Income (Loss)(1)		0.04			—	(2)		(0.35	)(10)		(0.72	)		(0.30	)
Net Realized and Unrealized Gain (Loss)		(0.13	)		0.79			(4.66	)		1.40			(2.05	)
Distributions of Net Realized Gains by other investment companies		—			—			—			—			—
Net Increase (Decrease) in Net Assets Resulting from Investment Operations		(0.09	)		0.79			(5.01	)		0.68			(2.35	)
Distributions from Net Investment Income		—			(0.08	)		—			—			—
Distributions from Net Realized Gains		—			(0.10	)		—			—			—
Total Distributions.		—			(0.18	)		—			—			—
Net Asset Value, End of Period	$	24.91		$	25.61		$	18.32		$	23.33		$	22.65
Market Value, End of Period	$	24.98		$	25.64		$	18.30		$	23.34		$	22.65
Total Return
Total Investment Return Based on Net Asset Value(3)		(0.36	)%		3.15	%		(21.47	)%		3.00	%		(9.40	)%
Total Investment Return Based on Market(3)		(0.08	)%		2.56	%		(21.59	)%		3.05	%		(9.40	)%
Ratios/Supplemental Data
Net Assets, End of Period (000's omitted)	$	2,491		$	3,842		$	218,950		$	313,223		$	50,389
Ratio to Average Net Assets of:
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(4)		1.49	%		1.50	%		1.59	%		1.69	%		1.79	%
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(4)		5.01	%		5.36	%		3.35	%		3.06	%		3.16	%
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(4)		5.01	%		5.32	%		1.59	%		1.68	%		1.88	%
Net investment Income (Loss)(4)		5.07	%		0.04	%		(3.34	)%(10)		(3.06	)%		(3.07	)%
Portfolio Turnover Rate(5)		0	%		52	%		393	%		756	%		635	%

See accompanying Notes to Financial Statements.

109

ADVISORSHARES TRUST
Financial Highlights (continued)

 

	Rockledge SectorSAM						STAR Global Buy-Write ETF
	Six months ended December 31, 2012 (Unaudited)			For the period January 11, 2012* to June 30, 2012			For the period September 17, 2012* to December 31, 2012 (Unaudited)
Selected Data for a Share of Capital Stock Outstanding
Net Asset Value, Beginning of Period	$	25.22		$	25.54		$	25.00
Investment Operations
Net Investment Income (Loss)(1)		(0.29	)		(0.24	)		0.04
Net Realized and Unrealized Gain (Loss)		0.29			(0.08	)		(0.19	)
Distributions of Net Realized Gains by other investment companies		—			—			—
Net Increase (Decrease) in Net Assets Resulting from Investment Operations		—			(0.32	)		(0.15	)
Distributions from Net Investment Income		(0.38	)		—			(0.17	)
Distributions from Net Realized Gains		—			—			(0.03	)
Total Distributions.		(0.38	)		—			(0.20	)
Net Asset Value, End of Period	$	24.84		$	25.22		$	24.65
Market Value, End of Period	$	24.85		$	25.23		$	24.82
Total Return
Total Investment Return Based on Net Asset Value(3)		(0.01	)%		(1.25	)%		(0.61	)%
Total Investment Return Based on Market(3)		(1.51	)%		(1.21	)%		(0.72	)%
Ratios/Supplemental Data
Net Assets, End of Period (000's omitted)	$	1,242		$	2,522		$	13,557
Ratio to Average Net Assets of:
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(4)		1.50	%		1.50	%		1.85	%
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(4)		13.80	%		11.03	%		2.89	%
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(4)		11.96	%		9.43	%		2.89	%
Net investment Income (Loss)(4)		(2.26	)%		(1.97	)%		0.55	%
Portfolio Turnover Rate(5)		849	%		391	%		21	%

See accompanying Notes to Financial Statements.

110

ADVISORSHARES TRUST
Financial Highlights

 

	TrimTabs Float Shrink ETF						WCM/BNY Mellon Focused Growth ADR ETF
	Six months ended December 31, 2012 (Unaudited)			For the period October 5, 2011* to June 30, 2012			Six months ended December 31, 2012 (Unaudited)			Year ended June 30, 2012			For the period July 21, 2010* to June 30, 2011
Selected Data for a Share of Capital Stock Outstanding
Net Asset Value, Beginning of Period	$	33.16		$	26.20		$	28.72		$	31.46		$	25.00
Investment Operations
Net Investment Income (Loss)(1)		0.21	(11)		0.07			0.01	(12)		0.07			0.15
Net Realized and Unrealized Gain (Loss)		1.09			6.90			2.55			(2.58	)		6.40
Distributions of Net Realized Gains by other investment companies		—			—			—			—			—
Net Increase (Decrease) in Net Assets Resulting from Investment Operations		1.30			6.97			2.56			(2.51	)		6.55
Distributions from Net Investment Income		(0.21	)		(0.01	)		(0.06	)		(0.11	)		(0.09	)
Distributions from Net Realized Gains		(0.12	)		—			—			(0.12	)		—
Total Distributions.		(0.33	)		(0.01	)		(0.06	)		(0.23	)		(0.09	)
Net Asset Value, End of Period	$	34.13		$	33.16		$	31.22		$	28.72		$	31.46
Market Value, End of Period	$	34.13		$	33.24		$	31.17		$	28.70		$	31.58
Total Return
Total Investment Return Based on Net Asset Value(3)		3.94	%		26.62	%		8.93	%		(7.94	)%		26.21	%
Total Investment Return Based on Market(3)		3.69	%		26.93	%		8.83	%		(8.36	)%		26.69	%
Ratios/Supplemental Data
Net Assets, End of Period (000's omitted)	$	11,091		$	8,291		$	7,024		$	6,462		$	8,651
Ratio to Average Net Assets of:
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(4)		0.99	%		0.99	%		1.25	%		1.25	%		1.25	%
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(4)		2.17	%		2.34	%		3.53	%		4.17	%		3.04	%
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(4)		2.17	%		2.34	%		3.53	%		4.17	%		3.04	%
Net investment Income (Loss)(4)		1.19	%(11)		0.31	%		0.06	%(12)		0.24	%		0.52	%
Portfolio Turnover Rate(5)		44	%		201	%		21	%		16	%		34	%

See accompanying Notes to Financial Statements.

111

ADVISORSHARES TRUST
Notes to Financial Statements

December 31, 2012 (Unaudited)

1. Organization

AdvisorShares Trust (the “Trust”) was organized as a Delaware statutory trust on July 30, 2007 and has authorized capital of unlimited shares. The Trust is an open-end management investment company, registered under the Investment Company Act of 1940, as amended (the “Act”). The Trust is comprised of 17 active funds (the “Funds” or “ETFs” and individually, the “Fund” or “ETF”):

Fund	Ticker		Commencement of Operations
Accuvest Global Long Short ETF		AGLS		July 9, 2010
Accuvest Global Opportunities ETF		ACCU		January 25, 2012
Cambria Global Tactical ETF		GTAA		October 26, 2010
Global Alpha & Beta ETF		RRGR		July 10, 2012
Global Echo ETF		GIVE		May 23, 2012
Madrona Domestic ETF		FWDD		June 21, 2011
Madrona Global Bond ETF		FWDB		June 21, 2011
Madrona International ETF		FWDI		June 21, 2011
Meidell Tactical Advantage ETF		MATH		June 23, 2011
Peritus High Yield ETF		HYLD		December 1, 2010
Pring Turner Business Cycle ETF		DBIZ		December 18, 2012
QAM Equity Hedge ETF		QEH		August 7, 2012
Ranger Equity Bear ETF (formerly Active Bear ETF)		HDGE		January 27, 2011
Rockledge SectorSAM ETF		SSAM		January 11, 2012
STAR Global Buy-Write ETF		VEGA		September 17, 2012
TrimTabs Float Shrink ETF		TTFS		October 5, 2011
WCM/BNY Mellon Focused Growth ADR ETF		AADR		July 21, 2010

Dent Tactical ETF was liquidated on August 15, 2012.

Effective October 29, 2012, the Active Bear ETF changed its name to Ranger Equity Bear ETF.

Accuvest Global Long Short ETF seeks average annual returns in excess of the total return of the MSCI World Index by investing in both long and short positions in Underlying ETFs that offer diversified exposure to global regions. The Fund may also use derivatives tied to the broad market indices when establishing net long and net short exposure on top of the core long/short portfolio.

Accuvest Global Opportunities ETF seeks long-term capital appreciation in excess of global equity benchmarks such as the MSCI All Country World Index by investing primarily in Underlying ETFs that provide diversified exposure to select economies around the world.

Cambria Global Tactical ETF seeks to preserve and grow capital by investing primarily in other Underlying ETFs that offer diversified exposure to global regions, countries, styles or sectors and exchange-traded products.

Global Alpha & Beta ETF is a broadly diversified global equity ETF which seeks long-term capital growth. RRGR utilizes a “top-down” thematic approach while employing a proprietary security selection process and from time to time will employ risk management techniques to lower portfolio volatility and risk. RRGR is managed by Your Source Financial (Portfolio Manager). The Portfolio Manager seeks to achieve this objective by investing primarily in other ETPs, individual stocks, and American Depositary Receipts (ADRs) that provide investment exposure to global equity markets and that meet certain selection criteria established by the Portfolio Manager.

112

ADVISORSHARES TRUST
Notes to Financial Statements

December 31, 2012 (Unaudited)

1. Organization – (continued)

Global Echo ETF seeks long-term capital appreciation with an emphasis on absolute (positive) returns and low sensitivity to traditional financial market indices, such as the S&P 500 Index, over a full market cycle. The Fund is a multi-manager, multi-strategy, broadly diversified, actively managed ETF with a focus on sustainable investing.

Madrona Domestic ETF seeks to provide long-term capital appreciation above the capital appreciation of its benchmark, the S&P 500 Index by selecting a portfolio of up to 500 of the largest U.S. traded equity securities using a weighted allocation system based on consensus analyst estimates of the present value of future expected earnings relative to the share price of each security.

Madrona Global Bond ETF seeks investment results that exceed the price and yield performance of its benchmark, the Barclays Capital Aggregate Bond Index. FWDB is sub-advised by Madrona Funds, LLC (Portfolio Manager). The Portfolio Manager seeks to achieve this objective by selecting a diversified portfolio of fixed income exchange-traded products (ETPs), including but not limited to, exchange- traded notes (ETNs), exchange-traded currency trusts and exchange-traded commodity pools. FWDB invests in at least 12 distinct global bond classes that cover the entire global investable bond universe. The Portfolio Manager constructs FWDB’s portfolio using a weighted allocation system based on historic yield curve analysis and a mean reversion strategy.

Madrona International ETF seeks to provide long-term capital appreciation above the capital appreciation of its international benchmarks, such as the MSCI EAFE Index, the Fund’s primary benchmark, and the BNY Mellon Classic ADR Index, the Fund’s secondary benchmark. The Fund seeks to achieve this objective by selecting a portfolio primarily composed of at least 250 of the largest American Depositary Receipts (ADRs) from among the largest issuers of Europe, Australasia and the Far East (EAFE) and Canada. It’s portfolio may also include ADRs that provide exposure to certain markets deemed to be emerging markets.

Meidell Tactical Advantage ETF seeks to provide long-term capital appreciation and capital preservation. The Fund is considered a “fund-of-funds” that seeks to achieve this investment objective by managing a tactical strategy that has the ability to dynamically rebalance the Fund’s portfolio from as much as 100% equity assets to 100% fixed income assets or cash and cash equivalents depending on market trends. The Fund employs a long tactical strategy that seeks to minimize portfolio losses by rotating out of higher volatility assets and lower volatility assets depending on the Fund’s current view of risks in different asset classes.

Peritus High Yield ETF seeks high current income by investing in a focused portfolio of high yield debt securities commonly referred to as “junk bonds”. The Fund does not have any portfolio maturity limitation and may invest in instruments with short-term, medium-term or long-term maturities.

Pring Turner Business Cycle ETF seeks long-term growth from capital appreciation and income. DBIZ is managed by Pring Turner Capital Group (Portfolio Manager). The cornerstone of the Portfolio Manager’s investment philosophy rests on the core belief of building wealth consistently while minimizing portfolio risk. DBIZ is a multi-asset class fund that dynamically allocates among stock, bond, inflation-sensitive securities, and cash. The Portfolio Manager has developed a pro-active asset allocation and sector rotation process designed around the stage changes in the business cycle. DBIZ’s disciplined decision-making employs multiple layers of input including business cycle, fundamental, and technical analysis. This adaptive approach combines continuous asset allocation changes, diversification with careful sector selections, and income emphasis.

QAM Equity Hedge ETF seeks investment results that exceed the risk adjusted performance of approximately 50% of the long/short equity hedge fund universe as defined by the HFRI Equity Hedge Total Index constituents. QEH is managed by Commerce Asset Management (Portfolio Manager).

113

ADVISORSHARES TRUST
Notes to Financial Statements

December 31, 2012 (Unaudited)

1. Organization – (continued)

The Portfolio Manager seeks to achieve this objective by employing an actively managed long/short equity strategy that attempts to gain global net equity exposures that approximate those of the universe of managers in the HFRI Equity Hedge Total Index. Additionally, the Portfolio Manager utilizes advanced algorithms including Markov Processes International’s (MPI) proprietary and patented style analysis technique and associated algorithms, DSA (Dynamic Style Analysis), patented hedge fund analysis software, combined with the Portfolio Manager’s qualitative knowledge of the hedge fund investor community to develop investment strategies.

Ranger Equity Bear ETF seeks capital appreciation through short sales of domestically traded equity securities. The portfolio management team implements a bottom-up, fundamental, research driven security selection process. In selecting short positions, the Fund seeks to identify securities with low earnings quality or aggressive accounting which may be intended on the part of company management to mask operational deterioration and bolster the reported earnings per share over a short time period. In addition, the portfolio management team seeks to identify earnings driven events that may act as a catalyst to the price decline of a security, such as downwards earnings revisions or reduced forward guidance.

Rockledge SectorSAM ETF seeks to generate stable and consistent annual returns under all market conditions by investing primarily in both long and short positions in Underlying ETFs that offer diversified exposure to U.S. large capitalization sectors.

STAR Global Buy-Write ETF seeks consistent repeatable returns across all market cycles. VEGA is sub-advised by Partnervest Advisory Services, LLC (Portfolio Manager). The Portfolio Manager seeks to achieve this investment objective by using a proprietary strategy known as Volatility Enhanced Global Appreciation (VEGA). VEGA employs a “Buy-Write” or “Covered Call” overlay for their global allocation strategy using ETPs. The strategy simultaneously writes (sells) a call option against each position in order to seek cumulative price appreciation from the portfolio’s global exposure, while generating a consistent income stream from the sale of covered call and/or cash-secured put options. When volatility is low the portfolio manager buys protective put options to manage downside risk.

TrimTabs Float Shrink ETF seeks to generate long-term returns in excess of the total return of the Russell 3000^® Index, with less volatility than the Russell 3000^® Index. The Fund is an actively managed exchange-traded fund that seeks to achieve its investment objective by primarily investing in the broad U.S. equity market, as represented by the Russell 3000^® Index. The Fund seeks to achieve this goal by investing in stocks with liquidity and fundamental characteristics that are historically associated with superior long-term performance.

WCM/BNY Mellon Focused ADR ETF seeks long-term capital appreciation by investing primarily in other Underlying ETFs, American Depository Receipts (ADRs) included in the BNY Mellon Classic ADR Index, the Fund’s primary index, and swap contracts.

2. Summary of Significant Accounting Policies

These financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

Investment Valuation

In computing each Fund’s NAV, the Fund’s securities holdings are valued based on their last readily available market price. Price information on listed securities, including Underlying ETFs, is taken from

114

ADVISORSHARES TRUST
Notes to Financial Statements

December 31, 2012 (Unaudited)

2. Summary of Significant Accounting Policies – (continued)

the exchange where the security is primarily traded. Securities regularly traded in an OTC market are valued at the latest quoted sales price on the primary exchange or national securities market on which such securities are traded. Securities not listed on an exchange or national securities market, or securities in which there was no last reported sales price, are valued at the most recent bid price. Other portfolio securities and assets for which market quotations are not readily available are valued based on fair value as determined in good faith by the Board of Trustees of the Trust.

Investment Transactions

Investment transactions are accounted for on the trade date. Realized gains and losses on sales of investment securities are calculated using the identified cost method. Dividend income and distributions to shareholders are recognized on the ex-dividend date and interest income and expenses are recognized on the accrual basis. Premiums and discounts are amortized over the life of the bond using the effective interest method.

Expenses

Expenses of the Trust, which are directly identifiable to a specific Fund, are applied to that Fund. Expenses which are not readily identifiable to a specific Fund are allocated in such a manner as deemed equitable, taking into consideration the nature and type of expense and the relative net assets of each Fund.

Equity Swaps

The Accuvest Global Long Short ETF, the Cambria Global Tactical ETF, the QAM Equity Hedge ETF and the STAR Global Buy-Write ETF may invest in equity swaps to obtain exposure to the underlying referenced security, obtain leverage or enjoy the returns from ownership without actually owning equity. Equity swaps are two-party contracts that generally obligate one party to pay the positive return and the other party to pay the negative return on a specified reference security, basket of securities, security index or index component during the period of the swap. Equity swap contracts are marked to market daily based on the value of the underlying security and the change, if any, is recorded as an unrealized gain or loss. Equity swaps normally do not involve the delivery of securities or other underlying assets. Accordingly, the risk of loss with respect to equity swaps is normally limited to the net amount of payments that a Fund is contractually obligated to make. If the other party to an equity swap defaults, a Fund’s risk of loss consists of the net amount of payments that the Fund is contractually entitled to receive, if any. Equity swaps are derivatives and their value can be very volatile. To the extent that the Adviser or Sub-Adviser, as applicable, do not accurately analyze and predict future market trends, the values of assets or economic factors, the Funds may suffer a loss, which may be substantial. The swap markets in which many types of swap transactions are traded have grown substantially in recent years, with a large number of banks and investment banking firms acting both as principals and as agents. As a result, the markets for certain types of swaps have become relatively liquid. Periodic payments received or paid by the Funds are recorded as realized gains or losses.

Short Sales

The Accuvest Global Long Short ETF, the Cambria Global Tactical ETF, the Pring Turner Business Cycle ETF, the QAM Equity Hedge ETF, the Ranger Equity Bear ETF and the Rockledge SectorSAM ETF may sell securities it does not own as a hedge against some of its long positions and/or in anticipation of a decline in the market value of that security (short sale). When the Funds make a short sale, it must borrow the security sold short and deliver it to the broker-dealer through which it made the short sale. The Funds may have to pay a fee to borrow the particular security and may be obligated to remit any

115

ADVISORSHARES TRUST
Notes to Financial Statements

December 31, 2012 (Unaudited)

2. Summary of Significant Accounting Policies – (continued)

interest or dividends received on such borrowed securities. Dividends declared on short positions open are recorded on the ex-date as an expense. A gain, limited to the price at which the Funds sold the security short, or a loss, unlimited in magnitude, will be recognized upon the termination of a short sale if the market price at termination is less than or greater than, respectively, the proceeds originally received. The Funds are also subject to the risk that it may be unable to reacquire a security to terminate a short position except at a price substantially in excess of the last quoted price.

The Funds are required to pledge cash or securities to the broker as collateral for the securities sold short. Collateral requirements are calculated daily based on the current market value of the short positions. Cash deposited with broker for collateral for securities sold short is recorded as an asset on the Statement of Assets and Liabilities and securities segregated as collateral are denoted in the Schedule of Investments. The Funds may receive or pay the net of the following amounts: (i) a portion of the income from the investment of cash collateral; (ii) the broker’s fee on the borrowed securities; and (iii) a financing charge for the difference in the market value of the short position and cash collateral deposited with the broker. This income or fee is calculated daily based upon the market value of each borrowed security and a variable rate that is dependent on the availability of the security. The net amounts of income or fees paid by Accuvest Global Long Short ETF, QAM Equity Hedge ETF, Ranger Equity Bear ETF and Rockledge SectorSAM ETF for the period ended December 31, 2012 are $206,622, $268, $1,302,316 and $3,749, respectively, which are included as interest expense in the Statement of Operations.

Deposits with brokers and segregated cash for securities sold short represent cash balances on deposit with the Funds’ prime brokers and custodian. The Funds are subject to credit risk should the prime brokers be unable to meet its obligations to the Funds.

Futures Contracts

Certain of the Funds may invest in futures contracts (“futures”), may invest in futures in order to hedge its investments against fluctuations in value caused by changes in prevailing interest rates or market conditions. Such Funds may invest in futures as a primary investment strategy. Investments in futures may increase or leverage exposure to a particular market risk, thereby increasing price volatility of derivative instruments a Fund holds. No monies are paid or received by a Fund upon the purchase or sale of a futures contract. Initially, a Fund will be required to deposit with the broker an amount of cash or cash equivalents, known as initial margin, based on the value of the contract. Subsequent payments, called variation margin, to and from the broker, will be made on a daily basis as the price of the underlying instruments fluctuates, making the long and short positions in the futures contract more or less valuable, a process known as ‘marking-to-the-market.’ Once a final determination of variation margin is made, additional cash is required to be paid by or released to a Fund, and a Fund will realize a loss or gain. The Funds may be subject to the risk that the change in the value of the futures contract may not correlate perfectly with the underlying index. Use of long futures contracts subjects the Funds to risk of loss in excess of the amounts shown on the Statements of Assets and Liabilities, up to the notional value of the futures contracts. Use of short futures contracts subjects the Funds to unlimited risk of loss. The Funds may enter into futures contracts only on exchanges or boards of trade. The exchange or board of trade acts as the counterparty to each futures contract; therefore, the Funds’ credit risk is limited to failure of the exchange or board of trade. Under some circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day’s settlement price, which could effectively prevent liquidation of unfavorable positions.

116

ADVISORSHARES TRUST
Notes to Financial Statements

December 31, 2012 (Unaudited)

2. Summary of Significant Accounting Policies – (continued)

Options

Certain of the Funds are authorized to write and purchase put and call options. When a Fund writes an option, an amount equal to the premium received by the Fund is reflected as an asset and an equivalent liability. The amount of the liability is subsequently marked to market to reflect the current market value of the option written. When a security is purchased or sold through an exercise of an option, the related premium paid (or received) is added to (or deducted from) the basis of the security acquired or deducted from (or added to) the proceeds of the security sold. When an option expires (or the Fund enters into a closing transaction), the Fund realizes a gain or loss on the option to the extent of the premiums received or paid (or gain or loss to the extent the cost of the closing transaction exceeds the premium paid or received). The Fund, as writer of an option, bears the market risk of an unfavorable change in the price of the security underlying the written option. Written and purchased options are non-income producing investments.

Short-Term Investments

Each Fund may invest in high-quality short-term debt securities and money market instruments on an ongoing basis to maintain liquidity or pending selection of investments in accordance with its policies. These short-term debt securities and money market instruments include shares of other mutual funds, commercial paper, certificates of deposit, bankers’ acceptances, U.S. Government securities and repurchase agreements.

Dividends and Distributions

Each Fund will generally pay out dividends to shareholders at least annually. Each Fund will distribute its net capital gains, if any, to shareholders annually. Income and capital gain distributions are determined in accordance with income tax regulations which may differ from U.S. generally accepted accounting principles. Distributions are recorded on ex-dividend date.

Indemnifications

In the normal course of business, each Fund enters into contracts that contain a variety of representations which provide general indemnifications. The Trust’s maximum exposure under these arrangements cannot be known; however, the Trust expects any risk of loss to be remote.

3. Investment Advisory Agreement and Other Agreements

Investment Advisory Agreement

Each Fund has entered into an Investment Advisory Agreement with AdvisorShares Investments, LLC (the “Advisor”). The Advisor acts as the Fund’s investment adviser pursuant to an advisory agreement with the Trust on behalf of each Fund. Pursuant to the Advisory Agreement, the Advisor has overall supervisory responsibility for the general management and investment of each Fund’s securities portfolio, and has ultimate responsibility (subject to oversight by the Trust’s Board of Trustees) for oversight of the Trust’s sub-advisers. For its services, each Fund pays the Advisor an annual management fee and such fees do not include breakpoints. From time to time, the Advisor may waive all or a portion of its fee.

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Notes to Financial Statements

December 31, 2012 (Unaudited)

3. Investment Advisory Agreement and Other Agreements – (continued)

The Advisor’s annual management fee for each Fund is as follows:

Fund:	Rate:
Accuvest Global Long Short ETF		1.35	%*
Accuvest Global Opportunities ETF		0.95	%
Cambria Global Tactical ETF
$0 – $250,000,000		0.90	%
$250,000,001 – $1,000,000,000		0.80	%
$1,000,000,001 – $5,000,000,000		0.70	%
$5,000,000,001 +		0.60	%
Global Alpha & Beta ETF
$0 – $100,000,000		1.00	%
$100,000,001 – $250,000,000		0.90	%
$250,000,001 – $1,000,000,000		0.80	%
$1,000,000,001 +		0.70	%
Global Echo ETF		1.10	%
Madrona Domestic ETF		0.80	%**
Madrona Global Bond ETF		0.50	%**
Madrona International ETF		0.80	%**
Meidell Tactical Advantage ETF		1.20	%***
Peritus High Yield ETF		1.10	%*
Pring Turner Business Cycle ETF		1.00	%
QAM Equity Hedge ETF		1.00	%
Ranger Equity Bear ETF		1.50	%
Rockledge SectorSAM ETF		1.25	%*
STAR Global Buy-Write ETF		1.35	%
TrimTabs Float Shrink ETF		0.99	%
WCM/BNY Mellon Focused Growth ADR ETF		0.75	%*

* Prior to January 1, 2013, subject to minimum fee of $10,000 per month.

** Prior to January 1, 2013, subject to minimum fee of $5,000 per month.

*** Prior to January 1, 2013, subject to minimum fee of $5,000 per month for months 7 – 12 and $10,000 thereafter.

For the Global Echo Fund, as part of its agreement with the Trust, the Advisor has contractually agreed to pay all operating expenses of the Fund, including transfer agency, custody, fund administration, legal, audit and other services, except management fees, interest expense, taxes (expected to be de minimis), brokerage commissions and other expenses connected with the execution of portfolio transactions, acquired fund fees and expenses, short dividend expenses, expenses of Independent Trustees (including any Trustees’ counsel fees), and extraordinary expenses.

Sub-Advisory Agreements

Each Fund’s investment sub-advisor provides investment advice and management services to the Fund. AdvisorShares supervises the day-to-day investment and reinvestment of the assets in the Fund and is responsible for monitoring the Fund’s adherence to its investment mandate. Pursuant to an

118

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Notes to Financial Statements

December 31, 2012 (Unaudited)

3. Investment Advisory Agreement and Other Agreements – (continued)

investment sub-advisory agreement (“Investment Sub-Advisory Agreement”) between the sub-advisor and the Advisor, the sub-advisor receives an annual fee equal to the average daily net assets of the Fund.

Accuvest Global Advisors LLC serves as investment sub-advisor to Accuvest Global Long Short ETF. They receive a sub-advisory fee at an annual fee equal to the average daily net assets of the Fund as follows:

AUM Schedule	Rate
$0 – $100,000,000		0.90	%
$100,000,001 – $500,000,000		0.95	%
$500,000,001 +		1.00	%

Accuvest Global Advisors LLC serves as investment sub-advisor to Accuvest Global Opportunities ETF. They receive a sub-advisory fee at an annual fee of 0.50% based on the average daily net assets.

Cambria Investment Management, Inc. serves as investment sub-advisor to Cambria Global Tactical ETF. They receive a sub-advisory fee at an annual fee equal to the average daily net assets of the Fund as follows:

AUM Schedule	Rate
$0  – $250,000,000		0.45	%
$250,000,001 – $1,000,000,000		0.40	%
$100,000,001 – $5,000,000,000		0.35	%
$5,000,000,001 +		0.30	%

Your Source Financial, PLC serves as investment sub-advisor to Global Alpha & Beta ETF. They receive a sub-advisory fee at an annual fee equal to the average daily net assets of the Fund as follows:

AUM Schedule	Rate
$0 – $100,000,000		0.35	%
$100,000,001 – $250,000,000		0.315	%
$250,000,001 – $1,000,000,000		0.28	%
$1,000,000,001 +		0.245	%

Baldwin Brothers, Inc., Community Capital Management, Inc., First Affirmative Financial Network, LLC and Reynders, McVeigh Capital Management, LLC serve as investment sub-advisors to Global Echo ETF. They receive a sub-advisory fee at an annual fee of 0.25% based on the average daily net assets.

Madrona Funds LLC serves as investment sub-advisor to Madrona Domestic ETF, Madrona International ETF and Madrona Global Bond ETF. They receive a sub-advisor fee at an annual rate based on the average daily net assets.

Fund	Rate
Madrona Domestic ETF		0.40	%
Madrona Global Bond ETF		0.25	%
Madrona International ETF		0.40	%

American Wealth Management serves as investment sub-advisor to Meidell Tactical Advantage ETF. They receive a sub-advisory fee at an annual fee of 0.70% based on the average daily net assets.

119

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Notes to Financial Statements

December 31, 2012 (Unaudited)

3. Investment Advisory Agreement and Other Agreements – (continued)

Peritus I Asset Management, LLC serves as the investment sub-advisor to Peritus High Yield ETF. They receive a sub-advisory fee at an annual fee of 0.75% based on the average daily net assets.

Pring Turner Capital Group serves as the investment sub-advisor to Pring Turner Business Cycle ETF. They receive a sub-advisory fee at an annual fee of 0.55% based on the average daily net assets.

Commerce Asset Management, LLC serves as investment sub-advisor to QAM Equity Hedge ETF. They receive a sub-advisory fee at an annual fee equal to the average daily net assets of the Fund as follows:

AUM Schedule	Rate
$0 – $250,000,000		0.55	%
$250,000,001 +		0.60	%

Ranger Alternative Management LP, serves as investment sub-advisor to Ranger Equity Bear ETF. They receive a sub-advisory fee at an annual fee of 1.00% based on the average daily net assets.

Rockledge Advisors LLC serves as investment sub-advisor to Rockledge SectorSAM ETF. They receive a sub-advisory fee at an annual fee of 0.75% based on the average daily net assets.

Partnervest Advisory Services, LLC serves as investment sub-advisor to STAR Global Buy-Write ETF. They receive a sub-advisory fee at an annual fee of 0.85% based on the average daily net assets.

TrimTabs Asset Management, LLC serves as investment sub-advisor to TrimTabs Float Shrink ETF. They receive a sub-advisory fee at an annual fee of 0.64% based on the average daily net assets. From time to time, each sub-adviser may waive all or a portion of its fee.

WCM Investment Management serves as the investment sub-advisor to WCM/BNY Mellon Focused Growth ADR ETF. They receive a sub-advisory fee at an annual fee of 0.25% based on the average daily net assets.

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Notes to Financial Statements

December 31, 2012 (Unaudited)

3. Investment Advisory Agreement and Other Agreements – (continued)

Expense Limitation Agreement

The Advisor has contractually agreed to reduce their fees and reimburse expenses in order to keep net expenses (excluding interest, taxes, brokerage commissions, acquired fund fees and expenses, and extraordinary expenses) from exceeding a specified for each Fund’s average daily net assets. The expense limitation agreement will be terminated upon termination of the investment advisory agreement between the Advisor and the Fund. The investment advisory agreement may only be terminated with the approval of the Fund’s Board. The expense caps in effect for each Fund during the period ended December 31, 2012 were as follows:

Fund:	Rate:
Accuvest Global Long Short ETF		1.50	%
Accuvest Global Opportunities ETF		1.25	%
Cambria Global Tactical ETF		0.99	%
Global Alpha & Beta ETF		1.25	%
Global Echo ETF		—
Madrona Domestic ETF		1.25	%
Madrona Global Bond ETF		0.95	%
Madrona International ETF		1.25	%
Meidell Tactical Advantage ETF		1.35	%
Peritus High Yield ETF		1.35	%
Pring Turner Business Cycle ETF		1.49	%
QAM Equity Hedge ETF		1.50	%
Ranger Equity Bear ETF		1.85	%
Rockledge SectorSAM ETF		1.50	%
STAR Global Buy-Write ETF		1.85	%
TrimTabs Float Shrink ETF		0.99	%
WCM/BNY Mellon Focused Growth ADR ETF		1.25	%

121

ADVISORSHARES TRUST
Notes to Financial Statements

December 31, 2012 (Unaudited)

3. Investment Advisory Agreement and Other Agreements – (continued)

For the period ended December 31, 2012, the Advisor waived fees and reimbursed expenses for each Fund as follows. Each Fund may recoup such waivers until the date indicated.

Fund:	Expenses Reimbursed:		Recoupment Amount:		Recoupment Expiration:
Accuvest Global Long Short ETF	$	66,702	$	66,702		6/30/2014
		204,653		204,653		6/30/2015
		58,772		58,772		6/30/2016
Total Accuvest Global Long Short ETF		330,127		330,127
Accuvest Global Opportunities ETF		45,384		45,384		6/30/2015
		23,530		23,530		6/30/2016
Total Global Opportunities ETF		68,914		68,914
Cambria Global Tactical ETF		9,250		158		6/30/2014
		129,383		129,383		6/30/2015
		17,105		17,105		6/30/2016
Total Cambria Global Tactical ETF		155,738		146,646
Global Alpha & Beta ETF		45,732		45,732		6/30/2016
Total Global Alpha & Beta ETF		45,732		45,732
Madrona Domestic ETF		6,733		6,733		6/30/2014
		30,175		30,175		6/30/2015
		27,655		27,655		6/30/2016
Total Madrona Domestic ETF		64,563		64,563
Madrona Global Bond ETF		1,256		1,256		6/30/2015
		13,652		13,652		6/30/2016
Total Madrona Global Bond ETF		14,908		14,908
Madrona International ETF		6,735		6,735		6/30/2014
		36,187		36,187		6/30/2015
		28,700		28,700		6/30/2016
Total Madrona International ETF		71,622		71,622
Meidell Tactical Advantage ETF		4,507		4,507		6/30/2014
		79,573		79,573		6/30/2015
		60,674		60,674		6/30/2016
Total Meidell Tactical Advantage ETF		144,754		144,754
Pring Turner Business Cycle ETF		3,119		3,119		6/30/2016
Total Pring Turner Business Cycle ETF		3,119		3,119
QAM Equity Hedge ETF		47,945		47,945		6/30/2016
Total QAM Equity Hedge ETF		47,945		47,945
Rockledge SectorSAM ETF		93,860		93,860		6/30/2015
		99,765		99,765		6/30/2016
Total Rockledge SectorSAM ETF		193,625		193,625
STAR Global Buy-Write ETF		26,717		26,717		6/30/2016
Total STAR Global Buy-Write ETF		26,717		26,717
TrimTabs Float Shrink ETF		66,768		66,768		6/30/2015
		55,973		55,973		6/30/2016

122

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Notes to Financial Statements

December 31, 2012 (Unaudited)

3. Investment Advisory Agreement and Other Agreements – (continued)

Fund:	Expenses Reimbursed:		Recoupment Amount:		Recoupment Expiration:
Total TrimTabs Float Shrink ETF		122,741		122,741
WCM/BNY Mellon Focused Growth ADR ETF		118,635		118,635		6/30/2014
		214,032		214,032		6/30/2015
		78,577		78,577		6/30/2016
Total WCM/BNY Mellon Focused Growth ADR ETF		411,244		411,244

As part of its agreement with the Trust, the Advisor has contractually agreed to pay all operating expenses of the Global Echo Fund. There are no expenses reimbursed or recouped for that Fund.

Administrator, Custodian, Fund Accountant and Transfer Agent

The Bank of New York Mellon (“BNYM”) (in each capacity, the “Administrator”, “Custodian”, “Fund Accountant” or “Transfer Agent”), serves as the Fund’s Administrator, Custodian, Fund Accountant and Transfer Agent pursuant to a certain Fund Administration and Accounting Agreement, a Custody Agreement or a Transfer Agency and Service Agreement, as the case may be.

Distribution and Service (12b-1) Plan

Foreside Fund Services, LLC (the “Distributor”) serves as the Fund’s distributor of Creation Units for the Fund pursuant to the distribution agreement. The Distributor does not maintain any secondary market shares.

The Funds have adopted a Distribution and Service Plan (“Plan”) pursuant to Rule 12b-1 under the 1940 Act. In accordance with its Plan, each Fund is authorized to pay an amount up to 0.25% of its average daily net assets each year for certain distribution-related activities. No fees are currently paid by each Fund under a Plan, and there are no current plans to impose these fees. However, in the event Rule 12b-1 fees were charged, over time they would increase the cost of an investment in each Fund.

4. Creation and Redemption Transactions

The Funds issue and redeem shares on a continuous basis at NAV in groups of 25,000 shares, at minimum, called “Creation Units.” Except when aggregated in Creation Units, shares are not redeemable securities of a Fund.

Only “Authorized Participants” may purchase or redeem shares directly from each Fund. An Authorized Participant is either (i) a broker-dealer or other participant in the clearing process through the Continuous Net Settlement System of the National Securities Clearing Corporation or (ii) a DTC participant and, in each case, must have executed a Participant Agreement with the Distributor. Most retail investors will not qualify as Authorized Participants or have the resources to buy and sell whole Creation Units. Therefore, they will be unable to purchase or redeem the shares directly from the Fund. Rather, most retail investors will purchase shares in the secondary market with the assistance of a broker and will be subject to customary brokerage commissions or fees.

5. Summary of Fair Value Disclosure

The Financial Accounting Standard Board’s (“FASB”) Accounting Standards Codification (“ASC”) 820-10, Fair Value Measurements and Disclosures, defines fair value, establishes an authoritative framework for measuring fair value in accordance with generally accepted accounting principles, and expands disclosure about fair value measurements. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below:

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Notes to Financial Statements

December 31, 2012 (Unaudited)

5. Summary of Fair Value Disclosure – (continued)

Level 1 — unadjusted quoted prices in active markets for identical assets or liabilities that the company has the ability to access.

Level 2  — Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates, and similar data.

Level 3 — Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the company’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.

Investments that use Level 2 or Level 3 inputs may include, but are not limited to: (i) an unlisted security related to corporate actions; (ii) a restricted security (e.g., one that may not be publicly sold without registration under the Securities Act of 1933 as amended); (iii) a security whose trading has been suspended or which has been de-listed from its primary trading exchange; (iv) a security that is thinly traded; (v) a security in default or bankruptcy proceedings for which there is no current market quotation; (vi) a security affected by currency controls or restrictions; and (vii) a security affected by a significant event (e.g., an event that occurs after the close of the markets on which the security is traded but before the time as of which a Fund’s net asset value is computed and that may materially affect the value of the Fund’s investment). Examples of events that may be “significant events” are government actions, natural disasters, armed conflicts and acts of terrorism.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of December 31, 2012 in valuing the Funds’ assets carried at fair value:

Assets	Accuvest Global Long Short ETF			Accuvest Global Opportunities ETF		Cambria Global Tactical ETF		Global Alpha & Beta ETF		Global Echo ETF		Madrona Domestic ETF		Madrona Global Bond ETF		Madrona International ETF
Level 1
Exchange Traded Funds	$	27,973,516		$	17,020,985	$	62,090,764	$	441,918	$	1,213,205	$	—	$	22,926,979	$	—
Common Stocks		—			—		—		740,416		2,327,427		15,149,959		—		14,895,692
Money Market Fund		2,383,420			221,611		2,822,869		137,951		468,540		76,787		239,265		125,763
Exchange Traded Notes		—			—		—		—		—		—		—		—
Level 2
Common Stocks		—			—		—		—		62,506		—		—		—
Corporate Bonds		—			—		—		—		—		—		—		—
Foreign Bonds		—			—		—		—		—		—		—		—
U.S. Treasury Notes		—			—		—		—		—		—		—		—
Municipal Bonds		—			—		—		—		167,085		—		—		—
Government Bonds		—			—		—		—		886,455		—		—		—
Purchased Put Options		—			—		—		—		—		—		—		—
Swaps Contracts		—			—		—		—		—		—		—		—
Level 3		—			—		—		—		—		—		—		—
Liabilities
Level 1
Exchange Traded Funds		(14,428,555	)		—		—		—		—		—		—		—
Common Stocks		—			—		—		—		—		—		—		—
Options Written		—			—		—		—		—		—		—		—
Level 2
Swaps Contracts		—			—		—		—		—		—		—		—
Level 3		—			—		—		—		—		—		—		—
Total	$	15,928,381		$	17,242,596	$	64,913,633	$	1,320,285	$	5,125,218	$	15,226,746	$	23,166,244	$	15,021,455

124

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Notes to Financial Statements

December 31, 2012 (Unaudited)

5. Summary of Fair Value Disclosure – (continued)

Assets	Meidell Tactical Advantage ETF		Peritus High Yield ETF		Pring Turner Business Cycle ETF		QAM Equity Hedge ETF			Ranger Equity Bear ETF			Rockledge SectorSAM ETF			STAR Global Buy-Write ETF			TrimTabs Float Shrink ETF		WCM/BNY Mellon Focused Growth ADR ETF
Level 1
Exchange Traded Funds	$	6,978,461	$	—	$	588,768	$	2,793,431		$	—		$	1,260,962		$	8,781,717		$	—	$	—
Common Stocks		—		—		1,533,472		—			—			—			—			11,123,080		6,749,948
Money Market Fund		212,171		231,083		365,232		1,035,686			101,157,432			—			2,747,922			98,845		319,617
Exchange Traded Notes		—		—		—		17,547			—			—			—			—		—
Level 2
Common Stocks		—		—		—		—			—			—			—			—		—
Corporate Bonds		—		150,469,225		—		—			—			—			—			—		—
Foreign Bonds		—		22,610,827		—		—			—			—			—			—		—
U.S Treasury Notes		—		—		—		—			—			—			1,957,630			—		—
Municipal Bonds		—		—		—		—			—			—			—			—		—
Government Bonds		—		—		—		—			—			—			—			—		—
Purchased Put Option		—		—		—		—			—			—			182,785			—		—
Swaps Contracts		—		—		—		10,134			—			—			—			—		—
Level 3		—		—		—		—			—			—			—			—		—
Liabilities
Level 1
Exchange Traded Funds		—		—		—		(57,290	)		—			(1,261,748	)		—			—		—
Common Stocks		—		—		—		—			(211,262,699	)		—			—			—		—
Options Written		—		—		—		—			—			—			(126,481	)		—		—
Level 2
Swaps Contracts		—		—		—		(1,070.00	)		—			—			—			—		—
Level 3		—		—		—		—			—			—			—			—		—
Total	$	7,190,632	$	173,311,135	$	2,487,472	$	3,798,438		$	(110,105,267	)	$	(786	)	$	13,543,573		$	11,221,925	$	7,069,565

The following is a summary of transfers between Level 1 and Level 2 fair value measurements that occurred during the six months ended December 31, 2012. All transfers between Level 1 and Level 2 fair value measurment are done using the beginning of period method.

Fund	Transfers from Level 1 to 2(1)		Transfers from Level 2 to 1
Global Echo ETF	$	63,520	$	—

(1) Transfers from Level 1 to Level 2 are as a result of the unavailability of a quoted price in an active market.

The funds did not hold any level 3 securities during the period.

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Notes to Financial Statements

December 31, 2012 (Unaudited)

6. Valuation of Derivative Instruments

The Funds have adopted authoritative standards of accounting for derivative instruments which establish disclosure requirement for derivative instruments. These standards improve financial reporting for derivative instruments by requiring enhanced disclosures that enables investors to understand how and why a fund uses derivatives instruments, how derivatives instruments are accounted for and how derivative instruments affect a fund’s financial position and results of operations.

The Funds use derivative instruments as part of their principal investment strategy to achieve their investment objective.

At December 31, 2012, the fair values of derivative instruments were as follows:

Statement of Assets and Liabilities

Fund:	Asset Derivatives:		Equity Risk
QAM Equity Hedge ETF		Unrealized Appreciation on Swaps Contracts	$	9,895
STAR Global Buy-Write ETF		Investments, at Market Value		182,785
			$	192,680

Fund:	Liability Derivatives:		Equity Risk
QAM Equity Hedge ETF		Unrealized Depreciation on Swaps Contracts	$	831
STAR Global Buy-Write ETF		Options Written, at Value		126,481
			$	127,312

Transactions in derivative instruments during the period ended December 31, 2012, were as follows:

Statement of Operations

Fund:	Realized Gain (Loss):		Equity Risk
QAM Equity Hedge ETF		Swaps Contracts	$	6,980
STAR Global Buy-Write ETF		Options Purchased Contracts		(27,580	)
STAR Global Buy-Write ETF		Options Written Contracts		97,237
			$	69,657

Fund:	Unrealized Gain (Loss):		Equity Risk
QAM Equity Hedge ETF		Swaps Contracts	$	9,064
STAR Global Buy-Write ETF		Options Purchased Contracts		(24,175	)
STAR Global Buy-Write ETF		Options Written Contracts		(13,374	)
			$	(37,549	)

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Notes to Financial Statements

December 31, 2012 (Unaudited)

6. Valuation of Derivative Instruments – (continued)

For the period ended December 31, 2012, the volume of the derivatives held by the Funds was as follows:

	QAM Equity Hedge ETF		STAR Global Buy-Write ETF
Long Equity Swaps Contracts	$	13,900	$	—
Short Equity Swaps Contracts		10,858		—
Purchased Equity Options Contracts		—		1,212
Written Equity Options Contracts		—		5,160

7. Federal Income Tax

The Funds intend to qualify as a “regulated investment company” under Sub-chapter M of the Internal Revenue Code of 1986, as amended. If so qualified, the Funds will not be subject to Federal income tax to the extent it distributes substantially all of its net investment income and net capital gains to its shareholders.

Accounting for Uncertainty in Income Taxes provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements, and requires the evaluation of tax positions taken or expected to be taken in the course of preparing a Fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-than-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Interest and penalty related to income taxes would be recorded as income tax expense.

Management of the Funds is required to analyze all open tax years (2010 – 2012), as defined by IRS statute of limitations, for all major jurisdictions, including federal tax authorities and certain state tax authorities. As of June 30, 2012, the Funds did not have a liability for any unrecognized tax benefits. The Funds have no examination in progress and is not aware of any tax positions for which it is reasonably possible that the amounts of unrecognized tax benefits will significantly change in the next twelve months.

127

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Notes to Financial Statements

December 31, 2012 (Unaudited)

7. Federal Income Tax – (continued)

At December 31, 2012, the cost of investments, including short positions, and net unrealized appreciation (depreciation) for federal income tax purposes was as follows:

Fund	Cost			Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
Accuvest Global Long Short ETF	$	14,450,939		$	2,504,981	$	(1,027,539	)	$	1,477,442
Accuvest Global Opportunities		15,922,522			1,320,074		—			1,320,074
Cambria Global Tactical ETF		61,022,356			3,978,135		(86,858	)		3,891,277
Global Alpha & Beta ETF		1,263,079			67,869		(10,663	)		57,206
Global Echo ETF		4,999,103			149,198		(23,083	)		126,115
Madrona Domestic ETF		14,316,073			1,396,993		(486,320	)		910,673
Madrona Global Bond ETF		22,171,822			997,036		(2,614	)		994,422
Madrona International ETF		13,739,465			1,625,864		(343,874	)		1,281,990
Meidell Tactical Advantage ETF		6,983,730			218,857		(11,955	)		206,902
Peritus High Yield ETF		173,046,252			3,849,889		(3,585,006	)		264,883
Pring Turner Business Cycle ETF		2,501,085			8,481		(22,094	)		(13,613	)
QAM Equity Hedge ETF		3,711,079			87,508		(9,213	)		78,295
Ranger Equity Bear ETF		(92,902,676	)		1,392,289		(18,594,880	)		(17,202,591	)
Rockledge SectorSAM ETF		(37,068	)		39,825		(3,543	)		36,282
STAR Global Buy-Write ETF		13,578,284			144,244		(178,955	)		(34,711	)
TrimTabs Float Shrink ETF		11,127,181			270,125		(175,381	)		94,744
WCM/BNY Mellon Focused Growth ADR ETF		6,427,594			1,015,385		(373,414	)		641,971

The differences between book and tax basis components of net assets are primarily attributable to wash sale loss deferrals and other book and tax differences.

Under current tax regulations, capital losses on securities transactions realized after October 31 (“Post-October Losses”) may be deferred and treated as occurring on the first business day of the following fiscal Under the recently enacted Regulated Investment Company Modernization Act of 2010, the Funds will be permitted to defer taxable ordinary income losses incurred after December 31 and treat as occurring on the first business day of the following fiscal year. Post-October losses and ordinary income losses deferred to July 1, 2012 are as follows:

Fund	Ordinary		Short-Term Post-Effective		Long-Term Post-Effective
Accuvest Global Long Short ETF	$	194,819	$	556,545	$	170,121
Accuvest Global Opportunities ETF		—		1,028,744		—
Cambria Global Tactical ETF		—		4,579,851		—
Madrona Domestic ETF		—		434,347		148
Madrona International ETF		—		756,413		—
Meidell Tactical Advantage ETF		—		258,312		—
Ranger Equity Bear ETF		2,880,389		4,862,699		—
Rocklege SectorSAM ETF		13,425		—		—
WCM/BNY Mellon Focused Growth ADR ETF		—		—		162,335

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ADVISORSHARES TRUST
Notes to Financial Statements

December 31, 2012 (Unaudited)

7. Federal Income Tax – (continued)

The following Funds have capital loss carryforwards available to offset future realized gains of:

Fund	Short-Term Post-Effective No Expiration		Long-Term Post-Effective No Expiration		Total
Accuvest Global Long Short ETF	$	4,013,423	$	261,538	$	4,274,961
Cambria Global Tactical ETF		15,407,657		—		15,407,657
Madrona Domestic ETF		567,238		—		567,238
Madrona International ETF		1,166,056		—		1,166,056
Meidell Tactical Advantage ETF		52,271		—		52,271
Peritus High Yield ETF		—		35,700		35,700

The Funds used capital loss carryforwards as follows to offset taxable capital gains realized during the year ended June 30, 2012:

Fund	Capital Loss Carryforwards Used
Ranger Equity Bear ETF	$	2,879,509

Under the recently enacted Regulated Investment Company Modernization Act of 2010, the Funds will be permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years. As a result of this ordering rule, pre-enactment capital loss carry forwards may have an increased likelihood to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law. The carry forward capital losses noted above are all post-enactment capital loss carry forwards.

8. Other Affiliated Parties and Transactions

Affiliated holdings are funds which are managed by the Trust or an affiliate of the Trust. Transactions with affiliated companies during the six months ended December 31, 2012 are as follows:

Affiliated Fund Name	Value at 6/30/2012		Purchases/ Additions		Sales/ Reductions		Value at 12/31/2012		Dividend Income
Global Echo ETF
Ranger Equity Bear ETF	$	43,049	$	95,729	$	117,469	$	15,410		—
Pring Turner Business Cycle ETF
Peritus High Yield ETF		—		125,124		—		124,975		1,085

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ADVISORSHARES TRUST
Notes to Financial Statements

December 31, 2012 (Unaudited)

9. Investment Transactions

Purchases and sales of investments for the period ended December 31, 2012 are as follows:

Fund	Purchases		Sales		Purchases In-Kind		Sales In-Kind
Accuvest Global Long Short ETF	$	21,549,349	$	23,568,074	$	40,872,487	$	32,495,593
Accuvest Global Opportunities		5,071,851		5,207,885		30,473,003		28,997,572
Cambria Global Tactical ETF		87,394,777		82,030,865		—		16,282,089
Global Alpha & Beta ETF		383,752		314,091		2,142,836		1,133,615
Global Echo ETF		4,920,907		4,172,908		1,713,009		1,777,247
Madrona Domestic ETF		3,609,426		3,508,750		2,819,286		4,180,338
Madrona Global Bond ETF		2,986,317		2,892,756		3,223,583		1,956,955
Madrona International ETF		9,493,788		9,371,581		—		1,069,774
Meidell Tactical Advantage ETF		23,612,079		20,720,068		1,060,166		—
Peritus High Yield ETF		100,493,173		20,702,732		—		—
Pring Turner Business Cycle ETF		65,100		—		2,070,753		—
QAM Equity Hedge ETF		1,266,282		1,775,329		3,233,022		—
Ranger Equity Bear ETF		1,162,497,635		1,325,888,620		—		—
Rockledge SectorSAM ETF		14,726,166		14,947,894		1,258,790		2,569,114
STAR Global Buy-Write ETF		3,919,035		1,067,573		8,049,569		—
TrimTabs Float Shrink ETF		4,070,902		4,389,605		16,362,499		13,446,833
WCM/BNY Mellon Focused Growth ADR ETF		1,626,934		1,363,144		—		—

Options written transactions, during the period ended December 31, 2012, were as follows:

STAR Global Buy-Write ETF	Contracts			Premiums Received
Options outstanding at September 17, 2012*		—		$	—
Options written		3,311			266,883
Options terminated in closing purchase transactions		(1,396	)		(117,601	)
Options expired		(453	)		(36,175	)
Options outstanding at December 31, 2012		1,462		$	113,107

^* Commencement of operations.

10. Risks Involved with Investing in the Funds

The Funds are subject to the principal risks described below, some or all of these risks may adversely affect the Funds’ NAV, trading price, yield, total return and ability to meet its investment objective. As with any investment, an investment in each Fund could result in a loss or the performance of each Fund could be inferior to that of other investments.

Fund of Funds Risk

Some of the Funds’ investment performance, because they are fund of funds, depends on the investment performance of the Underlying ETFs in which they invest. An investment in these Funds are subject to the risk associated with the Underlying ETFs that comprise their Underlying Index. The Funds will indirectly pay a proportional share of the asset-based fees, if any, of the Underlying ETFs in which they invest.

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ADVISORSHARES TRUST
Notes to Financial Statements

December 31, 2012 (Unaudited)

10. Risks Involved with Investing in the Funds – (continued)

Liquidity Risk

In certain circumstances, it may be difficult for the Fund to purchase and sell particular investments within a reasonable time at a fair price. To the extent that there is not an established retail market for instruments in which the Fund may invest, trading in such instruments may be relatively inactive. Trading in shares may be halted because of market conditions or for reasons that, in the view of the Exchange, make trading in shares inadvisable. In addition, trading in shares is subject to trading halts caused by extraordinary market volatility pursuant to “circuit breaker” rules. There can be no assurance that the requirements necessary to maintain the listing of the shares of the Fund will continue to be met or will remain unchanged.

Market Risk

Investments in securities, in general, are subject to market risks that may cause their prices to fluctuate over time. The Fund’s investments may decline in value due to factors affecting securities markets generally, or particular countries, segments, economic sectors, industries or companies within those markets. The value of a security held in a short position may increase due to general economic and market conditions which are not specifically related to a particular issuer, such as real or perceived positive economic conditions or changes in interest or currency rates. Because the market value of ETF shares may differ from their net asset value, the shares may trade at a premium or discount. An investment in the Fund may lose money.

New Fund Risk

Some of the Funds are new funds. As new funds, there can be no assurance that the Funds will grow to or maintain an economically viable size, in which case the Funds may experience greater tracking error to their Underlying Index than it otherwise would be at higher asset levels or it could ultimately liquidate.

11. New Accounting Pronouncements

In May 2011, the FASB issued ASU No. 2011-04 “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements” in GAAP and the International Financial Reporting Standards (“IFRSs”). ASU No. 2011-04 amends FASB ASC Topic 820, Fair Value Measurements and Disclosures, to establish common requirements for measuring fair value and disclosing information about fair value measurements in accordance with GAAP and IFRSs. ASU No. 2011-04 is effective for fiscal years beginning after December 15, 2011 and for interim periods within those fiscal years. Management is currently evaluating the impact these amendments may have on the Fund’s financial statements.

In December 2011, the FASB issued Accounting Standards Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities (“ASU 2011-11”). ASU 2011-11 requires disclosures to make financial statements that are prepared under GAAP more comparable to those prepared under International Financial Reporting Standards. The new disclosure requirements mandate that entities disclose both gross and net information about instruments and transactions eligible for offset in the statement of assets and liabilities as well as instruments and transactions subject to an agreement similar to a master netting arrangement. In addition, ASU 2011-11 requires disclosure of collateral received and posted in connection with master netting agreements or similar arrangements. New disclosures are required for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. Management is evaluating the impact of ASU 2011-11 on the financial statements and disclosures.

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ADVISORSHARES TRUST
Notes to Financial Statements

December 31, 2012 (Unaudited)

12. Subsequent Events

The Funds have adopted authoritative standards of accounting for disclosure of events that occur after the Statements of Asset and Liabilities date but before financial statements are issued or are available to be issued. These standards require the Fund to recognize in the financial statements the effects of all recognized subsequent events that provide additional evidence about conditions that existed at the date of Statement.

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ADVISORSHARES TRUST
Board of Trustees and Officers (Unaudited)

 

The business of the Trust is managed under the direction of the Trust’s Board of Trustees. The Board elects the officers of the Trust who are responsible for administering the Trust’s day-to-day operations. Each Trustee serves until his or her successor is duly elected or appointed and qualified.

The name, age, address and principal occupations during the past five years for each Trustee and officer of the Trust is set forth below, along with the other public directorships held by the Trustees.

Name, Address and Date of Birth of Trustee/Officer	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen by Trustee/ Officer	Other Directorships Held by Trustee
Interested Trustee
Noah Hamman* 2 Bethesda Metro Center, Suite 1330, Bethesda, MD 20814 (1968)	Trustee, No set term; served since 2009	CEO and Founder of AdvisorShares Investments, LLC – Investment Advisory Services (2006 – present); President and CEO of Arrow Investment Advisors, LLC (2006 – 2008); Vice-President – Business Development of Rydex Investments (2001 – 2006).	18	None
Independent Trustees
Elizabeth (“Betsy”) Piper/Bach 2 Bethesda Metro Center, Suite 1330, Bethesda, MD 20814 (1952)	Trustee, No set term; served since 2009	Vice President / COO of NADA Retirement Administrators, Inc. (2009 – present); President of Cardinal Trust and Investments; CIO for Wilson/Bennett Capital Management (2006); Senior Vice President and Chief Trust Officer at FBR National Trust Co., (2001 – 2006).	18	None
William G. McVay 2 Bethesda Metro Center, Suite 1330, Bethesda, MD 20814 (1954)	Trustee, No set term; served since 2011	Founder of RDK Strategies, LLC (2007 – present); Vice-President of Zephyr Associates, Inc. (2001 – 2006); Executive Vice-President of Financeware, Inc. (2000); First Vice-President of Legg Mason Wood Walker, Inc. (1989 – 2000).	18	None
Officers of AdvisorShares Trust
Noah Hamman 2 Bethesda Metro Center, Suite 1330, Bethesda, MD 20814 (1968)	Chief Executive Officer & President, No set term; served since 2009	Founder of AdvisorShares Investments, LLC (2006 – present); President and CEO of Arrow Investment Advisors, LLC (2006 – 2008); Vice-President –  Business Development of Rydex Investments (2001 – 2006).	18	None
Dan Ahrens 4144 N. Central Expressway, Suite 600, Dallas, TX 75204 (1966)	Chief Compliance Officer, Secretary & Treasurer, No set term; served 2009	Executive Vice President of AdvisorShares Investments, LLC (2008 –  present); President of Ahrens Advisors, LP (2005 – 2008); President of Mutuals Advisors, Inc. & Mutuals.com Funds (2003 – 2005).	18	None

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Board Review of Investment Advisory and Sub-Advisory Agreements

 

ADVISORY AND SUB-ADVISORY CONTRACT APPROVAL

Renewal of the Sub-Advisory Agreements for the Cambria Global Tactical ETF, Ranger Equity Bear ETF (formerly, Active Bear ETF), WCM/BNY Mellon Focused Growth ADR ETF, Madrona Domestic ETF, Madrona International ETF and the Madrona Global Bond ETF

At in-person meetings of the Board of Trustees (the “Board”) of AdvisorShares Trust (the “Trust”) held on August 14, 2012 and November 16, 2012 (together, the “Meetings”), the Board, including those trustees who are not “interested persons” of the Trust, as that term is defined in the Investment Company Act of 1940 (the “1940 Act”) (the “Independent Trustees”), unanimously approved the renewal of separate sub-advisory agreements (collectively, the “Sub-Advisory Agreements”) between AdvisorShares Investments, LLC (the “Advisor”) and (1) Cambria Investment Management, L.P., a Delaware limited partnership, on behalf of the Cambria Global Tactical ETF, (2) Ranger Alternative Management, L.P., a Texas limited partnership, on behalf of the Ranger Equity Bear ETF (formerly, Active Bear ETF), (3) WCM Investment Management, a California corporation, on behalf of the WCM/BNY Mellon Focused Growth ADR ETF, and (4) Madrona Funds, LLC, a Washington limited liability company, on behalf of the Madrona Domestic ETF, Madrona International ETF and the Madrona Global Bond ETF (each, a “Sub-Advisor,” collectively, the “Sub-Advisors” and, together with the Advisor, the “Advisors”), pursuant to which the Sub-Advisors perform portfolio management and related services for the Cambria Global Tactical ETF, Ranger Equity Bear ETF, WCM/BNY Mellon Focused Growth ADR ETF, Madrona Domestic ETF, Madrona International ETF, and the Madrona Global Bond ETF (each, a “Fund” and collectively, the “Funds”).

Pursuant to Section 15(c) of the 1940 Act, the Board must annually review and re-approve the existing Sub-Advisory Agreements after their initial two-year term: (i) by the vote of the Board or by a vote of the shareholders of the Funds; and (ii) by the vote of a majority of the Independent Trustees, cast in person at a meeting called for the purpose of voting on such approval. Each year, the Board calls and holds meetings to decide whether to renew the Sub-Advisory Agreements for an additional one-year term. In preparation for these meetings, the Board requests and reviews a wide variety of information from the Advisor and Sub-Advisors. The Board uses this information, as well as other information that the Advisor, Sub-Advisors and other service providers may submit to the Board, to help them decide whether to renew the Sub-Advisory Agreements for an additional year.

Prior to this year’s Meetings, the Board, including the Independent Trustees, reviewed written materials from each Sub-Advisor regarding, among other things: (i) the nature, extent and quality of the services to be provided by each Sub-Advisor; (ii) the investment performance of each Fund; (iii) the costs of the services to be provided and profits and other benefits to be realized by the Sub-Advisor and its affiliates from the relationship with each Fund; (iii) the respective personnel and operations of the Sub-Advisor; (iv) the extent to which economies of scale would be realized as each Fund grows; and (v) whether fee levels reflect these economies of scale for the benefit of each Fund’s shareholders, as discussed in further detail below.

At the Meetings, representatives of each Sub-Advisor, along with other Fund service providers, presented additional oral and written information to help the Board evaluate each Sub-Advisor’s advisory fees and other aspects of the Sub-Advisory Agreements. Representatives from each Sub-Advisor provided an overview of the Sub-Advisor’s operations and management of the Funds, including comparative fee data and profitability analysis for each Fund, and also discussed compliance oversight. The representatives for each Sub-Advisor then discussed their management of each Fund in more detail, including the Fund’s strategy, the Fund’s positioning in the market, and its attractive and unique offering. In addition, the representatives from WCM Investment Management and Madrona Funds, LLC discussed the focus on the international market by the WCM/BNY Mellon Focused Growth ADR ETF and the Madrona International ETF and Madrona Global Bond ETF, respectively. The representatives also described each Sub-Advisor’s business generally, including any noteworthy personnel changes. The Board then discussed the written materials that the Board received before the

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Meetings, the Sub-Advisor’s oral presentations and any other information that the Board received at the Meetings, and deliberated on the renewal of the Sub-Advisory Agreements in light of this information. In its deliberations, the Board considered the factors and reached the conclusions described below relating to the selection of each Sub-Advisor and the renewal of its Sub-Advisory Agreement. The Board did not identify any single piece of information discussed below that was all-important, controlling or determinative of its decision.

Nature, Extent and Quality of Services Provided by the Sub-Advisors

In considering the nature, extent and quality of the services provided by each Sub-Advisor, the Board reviewed the portfolio management services provided to the Funds. The most recent investment adviser registration forms (“Forms ADV”) for the Sub-Advisors were also provided to the Board, as were the responses of the Sub-Advisors to a detailed series of questions which included, among other things, information about the background and experience of the portfolio managers primarily responsible for the day-to-day management of the Funds.

The Board also considered each Sub-Advisor’s overall high quality of personnel, operations, financial condition, and investment advisory capabilities and information concerning the Sub-Advisor’s compliance function, operational capabilities and portfolio management team. Based on the factors above, as well as those discussed below, the Board concluded that it was satisfied with the nature, extent and quality of the services provided to the Funds by each Sub-Advisor.

Investment Performance of the Funds

The Board was provided with information regarding each Fund’s performance since its Sub-Advisory Agreement was last approved, as well as information regarding each Fund’s performance since its inception. At the Meetings, representatives of each Sub-Advisor provided information regarding, and led a discussion of, factors impacting the performance of the Funds, outlining current market conditions and explaining the Sub-Advisor’s expectations and strategies for the future. Based on this information, the Board concluded that it was satisfied with the investment results that each Sub-Advisor had been able to achieve for its respective Fund.

Costs of Advisory Services, Profitability and Economies of Scale

In concluding that the sub-advisory fee payable with respect to each Fund is reasonable, the Board reviewed a report of the sub-advisory fee paid by the Advisor to each Sub-Advisor, and the fees and expenses waived and/or reimbursed by the Sub-Advisors over the period, as well as the costs and other expenses incurred by the Sub-Advisors in providing advisory services. The Board also reviewed reports comparing the expense ratio and advisory fee paid by each Fund to those paid by other comparable funds and noted each Fund’s advisory fee was consistent with the range of advisory fees paid by other peer funds. The Board concluded for each Fund that the sub-advisory fee appeared reasonable in light of the services rendered. In addition, the Board considered for each Fund whether economies of scale were realized during the current contract period, but concluded that no economies of scale had yet been achieved.

Based on the Board’s deliberations and its evaluation of the information described above, the Board, including all of the Independent Trustees, unanimously: (i) concluded that the terms of each Sub-Advisory Agreement are fair and reasonable; (ii) concluded that each Sub-Advisor’s fees are reasonable in light of the services that it provides to its respective Fund; and (iii) agreed to renew each Sub-Advisory Agreement for another year.

Initial Approval of the Advisory and Sub-Advisory Agreements for QAM Equity Hedge ETF, STAR Global Buy-Write ETF, Global Alpha and Beta ETF and Pring Turner Business Cycle ETF

At in-person meetings of the Board held on August 30, 2011, November 16, 2011, and May 21, 2012 (together, the “Initial Approval Meetings”), the Board considered the approval of the investment advisory agreement (the “Advisory Agreement”) between the Trust and AdvisorShares Investments, LLC (the “Advisor”), for an initial term of two years, on behalf of the QAM Equity Hedge ETF, STAR Global Buy-Write ETF, Global Alpha and Beta ETF and Pring Turner Business Cycle ETF (each, a “Fund” and collectively, the “Funds”). The Board also considered the approval of separate sub-advisory

135

agreements (together, the “Sub-Advisory Agreements,” and collectively, with the Advisory Agreement, the “New Agreements”) between the Advisor and (1) Commerce Asset Management, LLC, a Delaware limited liability company, on behalf of the QAM Equity Hedge ETF, (2) Partnervest Advisory Services, LLC, a California limited liability company, on behalf of the STAR Global Buy-Write ETF, (3) Your Source Financial, PLC, an Arizona limited liability company, on behalf of the Global Alpha and Beta ETF, and (4) Pring Turner Capital Group, a California corporation, on behalf of the Pring Turner Business Cycle ETF (each, a “Sub-Advisor,” collectively, the “Sub-Advisors” and, together with the Advisor, the “Advisors”) pursuant to which the Sub-Advisors perform portfolio management and related services for the Funds.

Pursuant to Section 15(c) of the 1940 Act, the Board considered the approval of the New Agreements for initial two-year terms. Each New Agreement, after the initial two-year term, must be approved annually: (i) by the vote of the Board or by a vote of the shareholders of each Fund; and (ii) by the vote of a majority of the Independent Trustees, cast in person at a meeting called for the purpose of voting on such approval. After the initial two-year term, the Board will call and hold a meeting each year to decide whether to renew each New Agreement for an additional one-year term.

In connection with its consideration of the New Agreements, the Board, including the Independent Trustees, was presented with, and requested, received and evaluated, materials about the New Agreements and the services proposed to be provided thereunder, including information about the investment advisory fee rates and related matters from the Advisors. In that regard, the Board reviewed presentations it received from each Sub-Advisor, which included information with respect to staffing, management, organizational structure and investment philosophy and processes at each firm. The Board also reviewed information comparing the proposed investment advisory fee rates with a group of comparable funds. The Board also received various other materials which it considered relevant to its consideration and approval of the proposed New Agreements.

At the conclusion of its review of the materials discussed above and the discussions among the Trustees leading up to and during the Initial Approval Meetings, the Board, on behalf of the Trust and the Funds, agreed that it had been furnished with sufficient information to make an informed business decision with respect to approval of each of the proposed New Agreements.

In considering each of the proposed New Agreements, the Board considered factors bearing on the nature, extent and quality of the services proposed to be provided to the Funds, and the costs of those services, with a view toward making a business judgment as to whether each of the proposed New Agreements is, under the circumstances, in the best interests of the Funds. Among the factors that the Board considered and conclusions that the Trustees, in their business judgment, reached included, principally, the following: (i) their favorable evaluation of the investment performance of each Advisor; (ii) their favorable evaluation of the nature, extent and quality of the investment management services proposed to be provided by the Advisors to the Funds; (iii) their satisfaction that the investment advisory fee rates proposed for the Funds are consistent with applicable standards and are reasonable and fair; and (iv) their assessment that the Advisors’ projected profitability in connection with providing investment management services to the Funds would not be excessive.

In its deliberations, the Board did not identify any single factor that was paramount or controlling and individual trustees may have attributed different weights to various factors. Certain factors considered by the Board at the Initial Approval Meetings are addressed in more detail below.

Nature, Quality, and Extent of Services to be Provided by the Advisor and Sub-Advisors

In considering the nature, extent and quality of the services proposed to be provided by the Advisors, the Board reviewed the services to be provided by each firm and the qualifications and backgrounds of the portfolio managers responsible for managing the Funds. The Board also discussed information set forth in each firm’s Form ADV (Parts 1A and 2A), which provides information about each firm, its management, and its business activities and affiliations. In addition, the Board observed that the Chief Compliance Officer of the Trust reviewed each firm’s compliance program and determined that they were reasonably designed to prevent violation of the federal securities laws as applicable to the Funds. For the Global Alpha and Beta ETF and Pring Turner Business Cycle ETF, the Board considered the

136

professional experience and qualifications of their respective Sub-Advisors’ senior management and key professional personnel, including those individuals responsible for portfolio management. The Board also considered their respective Sub-Advisors’ operational capabilities and resources, and their depth and breadth of experience in managing investment portfolios. Based on its review, the Board determined that the Advisor, the Sub-Advisors and their respective personnel were well-qualified to provide all required services to the Funds and to provide services that are of high quality, and that each firm has appropriate resources to provide such services.

Performance of the Funds

In connection with the assessment of the ability of each Sub-Advisor to perform its duties under its Sub-Advisory Agreement, the Board considered the sufficiency of each Sub-Advisor’s resources. The Board concluded that each Sub-Advisor had the financial resources necessary to perform its obligations under its Sub-Advisory Agreement. The Board heard an overview of each Sub-Advisor’s investment philosophy, the proposed portfolio construction of each Fund, and the specific investment techniques to be employed. The Board also reviewed the overall investment performance of each Sub-Advisor.

Cost of Services to be Provided and Profits to be Realized by the Advisor, Sub-Advisors and their Affiliates under the New Agreements, and Comparative Fees

The Board considered the cost of the services to be provided by the Advisors, and reviewed the investment advisory fees to be paid pursuant to the New Agreements. In addition, the Board discussed the fee arrangements between the Advisor and each Sub-Advisor. The Board also reviewed information provided by the Advisor regarding advisory fees of comparable funds in peer groups, and evaluated the proposed advisory fee arrangements in light of this information and the factors that judicial decisions have specified as pertinent generally. The Board also considered the Advisor’s contractual agreement to waive a portion of its advisory fee in an effort to control the expense ratios of the Funds. Based on the foregoing considerations, the Board determined that it was satisfied that the investment advisory fee rate proposed for each of the Funds was consistent with applicable standards and was reasonable and fair.

Economies of Scale

For the Funds, the Board concluded that economies of scale would not likely be realized during the Sub-Advisors’ initial term and determined that it would reconsider this factor at an appropriate time in the future. In the event there were to be significant asset growth in the Funds, the Board determined to reassess whether the investment sub-advisory fees paid to the Sub-Advisors appropriately took into account any economies of scale that had been realized as a result of that growth.

Conclusion

Based on the Board’s deliberations and its evaluation of the information described above, the Board, including the Independent Trustees, unanimously: (i) concluded that the terms of the New Agreements are fair and reasonable; (ii) concluded that each Sub-Advisor’s fee is fair and reasonable in light of the services that it will provide to its respective Fund, and (iii) agreed to approve the New Agreements for initial terms of two years.

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SUPPLEMENTAL INFORMATION
  
 

  

Shareholder Reports and Quarterly Portfolio Disclosure

The Fund is required to file their complete schedule of portfolio holdings with the SEC for their first and third quarters on Form N-Q. Copies of the filings are available without charge, upon request on the SEC’s website at www.sec.gov. You can also obtain copies of Form N-Q by (i) visiting the SEC’s Public Reference Room in Washington, DC (information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330); (ii) sending your request and a duplicating fee to the SEC’s Public Reference Room, Washington, DC 20549-0102; or (iii) sending your request electronically to publicinfosec.gov.

The Fund’s Statement of Additional Information (“SAI”) has additional information about the Fund’s Trustees and Officers and is available without charge upon request. Contact your financial representative for a free prospectus or SAI.

Premium/Discount Information

Information about the differences between the daily market price on the secondary market for the shares of a Fund and the Fund’s net asset value may be found on the Fund’s website at http://www.advisorshares.com.

138

ADVISORSHARES TRUST
 

  

Investment Advisor
AdvisorShares Investments, LLC
2 Bethesda Metro Center, Suite 1330
Bethesda, Maryland 20814

Sub-Adviser
WCM Investment Management
281 Brooks Street
Laguna Beach, California 92651

Madrona Funds, LLC
2911 Bond Street, Suite 105
Everett, Washington 98201

Accuvest Global Advisors
3100 Oak Road, Suite 380
Walnut Creek, CA 94597

Cambria Investment Management, L.P.
2321 Rosecrans Avenue, Suite 3225
El Segundo, California 90245

Ranger Alternative Management, L.P.
300 Crescent Court, Suite 1100
Dallas, Texas 75201

Peritus I Asset Management, LLC
26 West Anapamu, 3^rd Floor
Santa Barbara, California 93103

American Wealth Management
570 Hammill Lane
Reno, Nevada 89511

TrimTabs Asset Management, LLC
2018 Stony Oak Court
Santa Rosa, CA 95403

Community Capital Management, Inc.
2500 Weston Road, Suite 101
Weston, FL 33331

First Affirmative Financial Network, LLC
5475 Mark Dabling Boulevard, Suite 108
Colorado Springs, Colorado 80918

Reynders, McVeigh Capital Management, LLC
121 High Street, 5^th Floor
Boston, MA 02110

Baldwin Brothers, Inc.
204 Spring Street
Marion, MA 02738

Rockledge Advisors, LLC
460 Classon Avenue
Brooklyn, NY 11238

Partnervest Advisory Services, LLC
1216 State Street, 3^rd Floor
Santa Barbara, CA 93101

Pring Turner Capital Group
1600 South Main Street, Suite 375
Walnut Creek, CA 94596

Your Source Financial, PLC
707 E. Northern Avenue
Phoenix, AZ 85020

Commerce Asset Management, LLC
6075 Poplar Avenue, Suite 700
Memphis, TN 38119

Distributor
Foreside Fund Services, LLC
Three Canal Plaza, Suite 100
Portland, ME 04101

Custodian/Fund Administrator/Transfer Agent
The Bank of New York Mellon
101 Barclay Street
New York, NY 10286

Legal Counsel
Morgan, Lewis & Bockius LLP
1111 Pennsylvania Ave, N.W.
Washington, D.C. 20004

Independent Registered Public Accounting Firm
Tait, Weller & Baker LLP
1818 Market Street
Philadelphia, PA 19103

This report is submitted for the general information of the shareholders of the Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus, which includes information regarding the Fund’s risks, objectives, fees and expenses, experience of management and other information.

Item 2. Code of Ethics.

Not Applicable for the semi-annual reporting period.

Item 3. Audit Committee Financial Expert.

Not Applicable for the semi-annual reporting period.

Item 4. Principal Accountant Fees and Services.

Not Applicable for the semi-annual reporting period.

Item 5. Audit Committee of Listed Registrants.

Not Applicable for the semi-annual reporting period.

Item 6. Schedule of Investments.

(a) Schedule is included as part of the report to shareholders filed under Item 1 of this Form.

(b) Not Applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not Applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not Applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company & Affiliated Purchasers.

Not Applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

Not Applicable.

Item 11. Controls and Procedures.

(a) The Chief Executive Officer and Treasurer have evaluated the Registrant's disclosure controls and procedures within 90 days of the filing date of this report and have concluded that these controls and procedures are effective.

(b) There were no significant changes in the Registrant's internal controls over financial reporting or in other factors that could significantly affect these controls subsequent to the date of their evaluation.

Item 12. Exhibits.

(a) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by
Item 2, to the extent that the Registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable at this time.

(b) Certifications for each Principal Executive Officer and Treasurer of the Registrant as required by Rule 30a-2(a) under the 1940 Act (17CFR 270.30a-(a)).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Registrant: AdvisorShares Trust

By: Noah Hamman       

Noah Hamman, Chief Executive Officer

Date: March 6, 2013

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

Registrant: AdvisorShares Trust

By: Noah Hamman       

Noah Hamman, Chief Executive Officer

Date: March 6, 2013

By: Dan Ahrens       

Dan Ahrens, Treasurer

Date: March 6, 2013