N-CSR 1 s106855_ncsr.htm

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)

4800 Montgomery Lane, Suite 150

Bethesda, Maryland 20814

(Address of principal executive offices) (Zip code)

Dan Ahrens

4800 Montgomery Lane, Suite 150

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: June 30, 2017

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.

The Report to Shareholders is attached herewith.

ADVISORSHARES TRUST

4800 Montgomery Lane

Suite 150

Bethesda, Maryland 20814

www.advisorshares.com

1.877.843.3831

Annual Report

June 30, 2017

TABLE OF CONTENTS

Letter from the CEO of AdvisorShares Investments, LLC	1

Hypothetical Growth of a $10,000 Investment, Historical Performances	3

Shareholder Expense Examples	37

Schedules of Investments	39
AdvisorShares Cornerstone Small Cap ETF (SCAP)	39
AdvisorShares Dorsey Wright ADR ETF (AADR)
[Formerly, AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF]	45
AdvisorShares Focused Equity ETF (CWS)	48
AdvisorShares Gartman Gold/Euro ETF (GEUR)	50
AdvisorShares Gartman Gold/Yen ETF (GYEN)	51
AdvisorShares KIM Korea Equity ETF (KOR)	52
AdvisorShares Madrona Domestic ETF (FWDD)	55
AdvisorShares Madrona Global Bond ETF (FWDB)	64
AdvisorShares Madrona International ETF (FWDI)	66
AdvisorShares Meidell Tactical Advantage ETF (MATH)	70
AdvisorShares Newfleet Multi-Sector Income ETF (MINC)	72
AdvisorShares Pacific Asset Enhanced Floating Rate ETF (FLRT)	90
AdvisorShares Peritus High Yield ETF (HYLD)	95
AdvisorShares Ranger Equity Bear ETF (HDGE)	101
AdvisorShares Sage Core Reserves ETF (HOLD)	103
AdvisorShares STAR Global Buy-Write ETF (VEGA)	109
AdvisorShares Wilshire Buyback ETF (TTFS)
[Formerly, AdvisorShares TrimTabs Float Shrink ETF]	110
Statements of Assets and Liabilities	114

Statements of Operations	118

Statements of Changes in Net Assets	122

Financial Highlights	130

Notes to Financial Statements	140

Report of Independent Registered Public Accounting Firm	168

Board of Trustees and Officers (Unaudited)	169

Board Review of Investment Advisory and Sub-Advisory Agreements	170

Supplemental Information	174

ADVISORSHARES TRUST

Letter from the CEO of AdvisorShares Investments, LLC

June 30, 2017

The actively managed ETF space continues to grow both in terms of net assets and in the number of fund sponsors. Through the first six months of 2017, 187 actively managed ETFs were trading with total net assets well-exceeding past $37 billion. Among the notable new fund sponsor entrants included Davis Advisors, Hartford Funds, and Legg Mason — further exhibiting how well-established asset managers are gravitating towards offering their actively managed investment strategies in a more beneficial ETF structure for investors. And as investors continue to vote with their dollars, AdvisorShares remains established as a leader in the actively managed ETF space in not only offering innovative products but also serving as a proactive educator within a growing investment universe.

Exhibit 1

As of June 30, 2017; Source: NYSE Euronext & AdvisorShares

Includes Sponsors with an average of less than 2% market share over the past 3 months (Active Alts, Alpha Architect, AlphaMark, ALPS, Amplify, ARK Investment, ArrowShares, Cambria, ClearShares, Columbia, Davis Advisors, Direxion, Elkhorn, Fidelity, Flexshares, FormulaFolios, Franklin, GraniteShares, Hartford, Hull Tactical, InfraCap, Innovator Funds, Janus, JP Morgan, Legg Mason, Natixis, Principal Funds, ProShares, Reality Shares, Rex Shares, Saba, Strategy Shares, StrongVest, TrimTabs, Tuttle Tactical, Validea Funds, & Virtus) and sponsors that have since left the Active ETF space (Bear Stearns, Calamos, RP, & Russell).

Exhibit one illustrates how the market share among fund sponsors continues to become more proportional as the actively ETF universe grows older and expands. AdvisorShares was among the earliest sponsors of actively managed ETFs and has consistently maintained a leadership position as the overall space grows and evolves. And with that evolution comes both the opening and closing of new products. During the first half of 2017, AdvisorShares closed five funds: the AdvisorShares Athena High Dividend ETF (Ticker: DIVI), the AdvisorShares Global Echo ETF (Ticker: GIVE), the AdvisorShares Morgan Creek Global Tactical ETF (Ticker: GTAA), the AdvisorShares QAM Equity Hedge ETF (Ticker: QEH) and the AdvisorShares Market Adaptive Unconstrained ETF (Ticker: MAUI). While these strategies were removed from our active ETF suite, we did not realize a negative impact on the firm’s overall assets under management as other strategies continued to grow and exhibit exemplary risk-adjusted performance among their peer groups, particularly the AdvisorShares Dorsey Wright ADR ETF (Ticker: AADR) and the AdvisorShares Newfleet Multi-Sector ETF (Ticker: MINC). We remain encouraged by the growth of these funds with their well-established portfolio managers and track records, as well as newer strategies in our product line-up that are outperforming their benchmarks. Additionally, we look forward to the delivery of new offerings during the second half of this calendar year, which we believe advisors and investors alike may discover quite compelling.

ADVISORSHARES TRUST

Letter from the CEO of AdvisorShares Investments, LLC (continued)

June 30, 2017

We remain steadfast in our optimism regarding AdvisorShares’ future growth trajectory. We believe the emergence of top-performing strategies and investor interest surrounding new strategies places our firm in an advantageous position to experience further growth. As we enter a new fiscal year, we will work to ensure our alpha-seeking offerings continue to put shareholders’ best interests first. As the asset management industry continues to embrace actively managed ETFs, we feel privileged to be at the forefront of providing the best investment technology for investors — a structure that delivers full, daily transparency, intraday liquidity, and operational and tax efficiency. We sincerely thank you for your continued support and for your interest in AdvisorShares actively managed ETFs.

Best regards,

Noah Hamman

CEO, AdvisorShares Investments

An investment in the Funds is subject to risk, including the possible loss of principal amount invested. ADRs are subject to the risk of change in political or economic conditions and exchange rates in foreign countries. Certain funds may participate in leveraged transactions to include selling securities short which creates the risk of magnified capital losses. Under certain market conditions, short sales can increase the volatility and decrease the liquidity of certain securities or positions, and may lower the Fund’s return or result in a loss. There is no guarantee that the individual Funds’ will achieve the stated investment objectives. 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 June 30, 2017 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.

ADVISORSHARES TRUST

AdvisorShares Cornerstone Small Cap ETF (SCAP)

The AdvisorShares Cornerstone Small Cap ETF (NYSE Arca: SCAP) launched on July 7, 2016. For the period ending June 30, 2017 since the launch, it returned 25.00% on a NAV basis and 24.98% on a Market Price basis. For the same period, the Russell 2000 Index returned 25.07%. As of June 30, 2017, the strategy underlying the ETF now has a five-year track record of outperformance, returning 16.50% on an annualized NAV basis, while the Russell 2000 Index has returned 13.70%.

Small cap stocks demonstrated significant strength during the period, particularly after the U.S. election, as investors sought companies that would relatively benefit from a changing legislative agenda. Additionally, as confidence in the U.S. economy improved, companies exhibiting fundamental strength, like many of those in the portfolio, as well as those leveraged to rising interest rates and inflation, benefitted.

Within the portfolio, stock selection was key to our positive performance during the period. On a sector basis, our overweight position to and stock selection within Information Technology, our underweight position to Utilities, and our stock selection within Materials and Consumer Discretionary were positive contributors to performance. Top contributing holdings include Ariad Pharmaceuticals, Extreme Networks, and iRobot Corporation. Our underweight position to Financials, overweight position to Energy, and stock selection within Industrials detracted. Top detracting holdings include American Outdoor Brands Corporation, Cambrex Corporation, and Amedisys, Inc. Additionally, as the market was very strong during the period, our small cash holdings also partly offset performance.

Looking forward, we continue to believe that the portfolio underlying the AdvisorShares Cornerstone Small Cap ETF is well positioned for long-term success. We continue to face a changing environment, with some economic and policy uncertainty. We believe we have developed a methodical, disciplined, and diversified approach to managing small cap stocks with a focus on those companies which are demonstrating fundamental strength, which should continue to be an attractive way to invest in the asset class.

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT

For the period July 6, 2016* to June 30, 2017

HISTORICAL PERFORMANCE

Total Return as of June 30, 2017

	Since Inception 7/6/2016			Predecessor 3 Year**			Predecessor Since Inception 6/30/2012**

AdvisorShares Cornerstone Small Cap ETF NAV		25.00	%		9.72	%		16.50	%
AdvisorShares Cornerstone Small Cap ETF Market Price***		24.98	%		N/A			N/A
Russell 2000 Index		25.07	%		7.36	%		13.70	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 1.14% and the net expense ratio is 0.90%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 0.90%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

Commencement of operations.

Simultaneous with the commencement of the Fund’s investment operations on July 7, 2016, a separate account (the “Predecessor Account”), which was managed by the same portfolio management team, converted into the Fund. The Predecessor Account began trading June 30, 2012. All performance prior to July 7, 2016 represents actual trading of the Predecessor Account and has not been restated to reflect the estimated total annual operating expenses of the Fund, which, if reflected, would lower returns. Performance after July 7, 2016 is reflective of the total annual operating expenses of the Fund.

***

The price used to calculate market return (‘‘Market Price’’) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00 pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund.

The Russell 2000 index is an index measuring the performance approximately 2,000 small-cap companies in the Russell 3000 Index, which is made up of 3,000 of the biggest U.S. stocks. One cannot invest directly in an index.

ADVISORSHARES TRUST

AdvisorShares Dorsey Wright ADR ETF (AADR)

The AdvisorShares Dorsey Wright ADR ETF (AADR) returned 20.55% in market price and 20.43% in NAV for the 12-month period ending June 30, 2017. Since Dorsey Wright took over the strategy on September 30, 2016, AADR returned 15.55% in market price and 15.78% in NAV for the period ending on June 30, 2017. International markets have continued to outperform US markets in 2017 and have continually pushed the performance of the asset class and the strategy. During the majority of quarterly periods, AADR has outperformed the benchmark excluding the second quarter of 2017. The portfolio’s allocation to Brazil was a drag on the performance as the country experienced declines related to a political scandal.

The major driver of positive performance in the strategy was the outsized position in Latin American in the last quarter of 2016 and Q1 2017. The strategy adjusts to find the current leaders in both emerging and developed international markets with no constraints on country or regional allocations unlike the market capitalization benchmarks. The concentrated portfolio also allows the portfolio to exclude or reduce exposure to underperforming countries and sectors compared to the broad index. Since Dorsey Wright took over management of AADR the country, regional and sector allocations have varied significantly from the benchmarks holdings.

International developed and emerging markets have had a strong start to the year, outperforming broad US equity indexes and they continue to show strength heading into the second half of the year. The dynamic nature of the strategy is continually evaluating the strength of the portfolio and the universe of securities that is draws on to adapt to the continually changing markets. The strategy’s ability to rotate into countries or sectors of strength as the leadership and market conditions change allows it to adjust allocations to emerging and developed markets.

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT

For the period July 21, 2010* to June 30, 2017

HISTORICAL PERFORMANCE

Total Return as of June 30, 2017

	1 Year			3 Year			5 Year			Since Inception 7/21/2010

AdvisorShares Dorsey Wright ADR ETF NAV		20.43	%		6.89	%		10.84	%		10.04	%
AdvisorShares Dorsey Wright ADR ETF Market Price**		20.55	%		6.94	%		10.87	%		10.05	%
MSCI EAFE Index (Net)		20.27	%		1.15	%		8.69	%		7.22	%
BNY Mellon Classic ADR Index TR		20.73	%		1.23	%		7.89	%		6.33	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 1.64% and the net expense ratio is 1.27%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 1.25%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

Commencement of operations.

The MSCI EAFE Index is an unmanaged free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada. One cannot invest directly in an index.

The BNY Mellon Classic ADR Index combines the over the counter (OTC) traded ADRs with exchange-listed ADRs bringing transparency to the available universe of American Depositary Receipts, including those issued by many of the world’s premier companies. One cannot invest directly in an index.

ADVISORSHARES TRUST

AdvisorShares Focused Equity ETF (CWS)

The AdvisorShares Focused Equity ETF (CWS) wasn’t in existence for the entire 12-month period ending on June 30, 2017; however, measuring at the beginning of its September 20, 2016 launch date, CWS’s NAV rose 14.39% ($25.00 to $28.59) and its market price rose 14.40% ($25.00 to $28.59), for the period ending on June 30, 2017.

The ETF is a focused portfolio of high-quality stocks. While the portfolio is broadly diversified, it has a pronounced high-quality bias which has helped it keep pace with the overall market since it was launched. CWS has been able to capture the broad market optimism that began after the November election. Also, the Federal Reserve’s gradualist approach towards monetary policy (three rate hikes since December) hasn’t frightened investors. Despite growing geo-political tensions, the stock market’s volatility has been at multi-decade lows. General market valuations are elevated but not extreme.

The stock market is poised to continue to rally as long as interest rates remain low and corporate profits continue to climb. Subdued energy prices are also aiding a favorable environment for stocks. CWS will benefit from low inflation, rising employment and a favorable environment for business.

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT

For the period September 20, 2016* to June 30, 2017

HISTORICAL PERFORMANCE

Total Return as of June 30, 2017

	Since Inception 9/20/2016

AdvisorShares Focused Equity ETF NAV		14.39	%
AdvisorShares Focused Equity ETF Market Price**		14.40	%
S&P 500 Index		15.08	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 1.07% and the net expense ratio is 0.75%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 0.75%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

	*	Commencement of operations.
	**	The price used to calculate market return (‘‘Market Price’’) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00 pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund.

The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks. One cannot invest directly in an index.

ADVISORSHARES TRUST

AdvisorShares Gartman Gold/Euro ETF (GEUR)

For the twelve-month period ending June 30, 2017, the AdvisorShares Gartman Gold/Euro ETF (NYSE Arca: GEUR) returned -9.80% on a NAV basis and -11.11% on a Market Price Return basis, underperforming the spot price of Gold which returned -5.94%. GEUR owns gold funded in euro as opposed to the more traditional US dollar funding. In periods where the euro goes up against the US dollar, we would expect GEUR to underperform spot gold as was the case over the last year.

Last year’s report focused on the so called “Brexit” which occurred right before the last reporting period ended. Markets were still in the throes of shock and uncertainty. One year later there is still much that is unknown as the parties haggle over trade, the expense to the UK to get out and how the EU will function without the UK. The euro’s performance in the previous year was a tale of two halves. In the first half, the euro declined against the US dollar as the FOMC warned markets that rate hikes were soon to come, the European Central Bank was unlikely to end QE anytime soon and perhaps there was optimism over the policies promised by the then President-election. The second half the euro rallied as the ECB announced it would being to slowly taper its QE, markets began to get more comfortable with an EU ex-UK and perhaps less optimism that the new US President would deliver as hoped for.

The euro stands to benefit from being relatively attractive against Japan and while the US has been generally believed to be more attractive than Europe as an investment destination that gap may have narrowed, helped in part by a favorable reaction to newly elected French President Emmanuel Macron is looking more and more like a centrist which if correct, would be market friendly.

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT

For the period February 11, 2014* to June 30, 2017

HISTORICAL PERFORMANCE

Total Return as of June 30, 2017

	1 Year			3 Year			Since Inception 2/11/2014

AdvisorShares Gartman Gold/Euro ETF NAV		-9.80	%		3.12	%		3.29	%
AdvisorShares Gartman Gold/Euro ETF Market Price**		-11.11	%		2.93	%		3.23	%
Spot Gold – London Bullion Market Association		-5.94	%		-1.88	%		-1.03	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 2.21% and the net expense ratio is 0.65%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 0.65%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

Commencement of operations.

The spot price of Gold is valued on the basis of each day’s 3 pm London time announced price for an ounce of gold set by five market members of the London Bullion Market Association. One cannot invest directly in an index.

ADVISORSHARES TRUST

AdvisorShares Gartman Gold/Yen ETF (GYEN)

For the twelve-month period ending June 30, 2017, the AdvisorShares Gartman Gold/Yen ETF (NYSE Arca: GYEN) returned 1.54% on a NAV basis and 0.73% on a Market Price Return basis, outperforming the spot price of Gold which returned -5.94%. GYEN owns gold funded in yen as opposed to the more traditional US dollar funding. In periods where the US dollar goes up against the yen, we would expect GYEN to outperform spot gold as was the case over the last year.

The Japanese economy continues to slog along not making much progress showing very little growth and very little in the way of inflation. Economists have said that inflation is the easiest thing in the world to create except for when you need it which captures the struggle faced by the Bank of Japan with a negative interest policy that fails to stimulate economic activity. The BOJ is effectively printing money to buy equities and unfortunately for the Japanese, the only inflation to be seen anywhere is in equity prices with the Nikkei 225 Index up more than 25% in the trailing 12 months.

There is not much visibility for anything to change fundamentally in Japan. This scenario is compounded by a dismal demographic profile for Japan which sells more adult diapers than baby diapers. The yen has at times benefitted from a haven bid during times of crises or threat of external shock which can come along at any time but the BOJ wants a weaker currency to help exports and there is visibility that it will get its wish.

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT

For the period February 11, 2014* to June 30, 2017

HISTORICAL PERFORMANCE

Total Return as of June 30, 2017

	1 Year			3 Year			Since Inception 2/11/2014

AdvisorShares Gartman Gold/Yen ETF NAV		1.54	%		0.50	%		0.77	%
AdvisorShares Gartman Gold/Yen ETF Market Price**		0.73	%		0.18	%		0.71	%
Spot Gold – London Bullion Market Association		-5.94	%		-1.88	%		-1.03	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 1.99% and the net expense ratio is 0.65%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 0.65%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

Commencement of operations.

ADVISORSHARES TRUST

AdvisorShares KIM Korea Equity ETF (KOR)

Since the AdvisorShares KIM Korea Equity ETF (NYSE Arca : KOR) was launched on September 29, 2016, KOR only has the track record for the past 9 months in 2016 fiscal year. Over the period since its inception and ending June 30, 2017, KOR returned +14.73% on a Market Price basis and +14.40% on a NAV basis, as compared to +20.94% for the MSCI Korea Index. Korean stock market delivered a bullish performance in spite of geopolitical risks and the impeachment of the former president Ms. Park. The main drivers for the strength were that global economic growth boosted Korean exports, improving corporate earnings across most sectors and greater appetites for risk assets accelerated capital inflow to emerging markets including Korea. Also, after the early presidential election in May 2017, expectation for increased fiscal spending and economic reform by new administration was built.

Although KOR recorded double-digit returns over the period, the fund underperformed MSCI Korea Index. We have been overweight at material and industrial sector, based on our rosy outlook for global economy, and this allocation contributed to KOR’s performance. Underperformance of KOR was mainly due to the portfolio’s weighting of IT sectors that were underweight relative to the benchmark. IT players’ shares have rallied mainly driven by Samsung Electronics, as Samsung Electronics has posted solid earnings amid a tight supply of memory chips and announced cancellation of treasury shares. However, the portfolio’s weight of a particular industry is restricted to 25%, making it difficult to have exposure to IT names as much as the benchmark. Such a difference in the portfolio weighting hampered the performance amid an upswing led by IT firms.

We believe Korean equity market should continue to advance over the medium to long term for the following reasons. First, a vibrant global economy will likely maintain Korean export growth and provide a favorable climate for corporate earnings. Second, the recent rally was almost solely driven by positive earnings revision rather than valuation rerating, therefore, Korean market is still undervalued as compared to other global markets. Third, efforts made by the new administration to reform the complicated governance structure of conglomerates should potentially result in a re-rating of Korean stock market’s valuation multiples. To overcome the investment restriction as mentioned above, we are ramping up on stocks with long-term growth potential from among the IT names, which can be the beneficiaries of capex cycle in memory and display industries.

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT

For the period September 28, 2016* to June 30, 2017

HISTORICAL PERFORMANCE

Total Return as of June 30, 2017

	Since Inception 9/28/2016

AdvisorShares KIM Korea Equity ETF NAV		14.40	%
AdvisorShares KIM Korea Equity ETF Market Price**		14.73	%
MSCI Korea Net (USD)		20.94	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 1.39% and the net expense ratio is 0.99%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 0.99%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

Commencement of operations.

The MSCI Korea Index is a single country index and measures the performance of the large and mid cap segments of the South Korean market. With 107 constituents, the index covers about 85% of the Korean equity universe. One cannot invest directly in an index.

ADVISORSHARES TRUST

AdvisorShares Madrona Domestic ETF (FWDD)

For the 12-month period ending June 30^th, 2017, the AdvisorShares Madrona Domestic ETF (FWDD) outperformed its benchmark, the S&P 500 Index, by 2.46%. FWDD saw both its NAV and Market Price Return appreciate by 20.36%, while the S&P 500 increased by 17.90%. Unlike its benchmark, FWDD does not rely on allocations based on market capitalization. Rather, analyst consensus and PEG ratios are used in determining allocations to hold a truly broader weighing of positions than that of the S&P 500 Index. This year’s outperformance of the benchmark may evidence an increase in overall equities as opposed to solely large-cap equities.

In January 2017, the Dow Jones Industrial Average climbed past a record 20,000. A “Trump Rally” induced optimism, and hopes of infrastructure expansion and forecasts of business deregulation manifested. This rally has been viewed by some analysts as overvalued, yet it remains true that such pro-business policies, in addition to lowered corporate taxation rates, would allow for increased domestic profitability. Politics has a role in the markets, and we may expect changes in the business environment which may affect U.S. equities in the year to come. Luckily, these changes in the business environment would likely come at the benefit of producers.

While market movements, such as the recent fluctuation in healthcare due to stalls in healthcare reform, may certainly occur, we foresee the continuity of a positive trend. Innovation and expansion will continue for large U.S. equities under a business-friendly political environment, and our president has demonstrated both support for such policies and the willingness to pursue them. We believe that our portfolio allocations and rebalances keep our portfolio updated to provide yields where the S&P 500 does not. We hope to provide continued long-term appreciation our investors, who may additionally benefit from a strengthening economy that may arise amidst a business-friendly political environment.

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT

For the period June 21, 2011* to June 30, 2017

HISTORICAL PERFORMANCE

Total Return as of June 30, 2017

	1 Year			3 Year			5 Year			Since Inception 6/21/2011

AdvisorShares Madrona Domestic ETF NAV		20.36	%		6.10	%		14.42	%		12.10	%
AdvisorShares Madrona Domestic ETF Market Price**		20.36	%		6.11	%		14.46	%		12.11	%
S&P 500 Index		17.90	%		9.61	%		14.63	%		13.60	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 1.32% and the net expense ratio is 1.25%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 1.25%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

Commencement of operations.

The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks. One cannot invest directly in an index.

ADVISORSHARES TRUST

AdvisorShares Madrona Global Bond ETF (FWDB)

For the 12-month period ending June 30, 2017, the AdvisorShares Madrona Global Bond ETF surpassed its Bloomberg Barclays U.S. Aggregate Bond Index benchmark, which saw a loss of -0.31%. During that period, FWDB appreciated in NAV by 4.23% and posted a Market Price Return of 4.24%. In addition, as of June 30, 2017, FWDB returned an Average Weighted Coupon of 4.31% and an Average Yield to Maturity of 4.24%. We believe that our work to seek out value for our investors has retained its course of success. With yield curve and mean reversion analytical tools as foundations for allocation, we aim to retain our value as a forward-looking fund.

There are many factors that attribute to the past 12-month performance of FWDB. First, exposure in the financial sector allowed for buoyant gains derived from expectations of domestic financial deregulation. Lower barriers may enable financial institutions to expand their operations and cash flows, and this was priced into increases from our positions in the financial sector. In addition, our convertible securities and floating rates bonds posted attractive returns. We hold that our investment in positions not listed on our benchmark provide the means to pursue appreciation where our benchmark may have overlooked.

Looking forward, we foresee appreciation on both domestic and international fronts, notably in Asia and China. As transitions to innovative service-based economies advance, so too do the investment vehicles associated. Our investors will be able share in this growth, in addition to the benefits of our global diversification into the broader investable bond universe. Through a simple entry into vast diversification for investors, and past performance above our benchmark, we hope to continue our mission of maintaining a suitable investment option for those with a global investing mindset looking for an analysis-based return.

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT

For the period June 21, 2011* to June 30, 2017

HISTORICAL PERFORMANCE

Total Return as of June 30, 2017

	1 Year			3 Year			5 Year			Since Inception 6/21/2011

AdvisorShares Madrona Global Bond ETF NAV		4.23	%		2.48	%		3.25	%		3.63	%
AdvisorShares Madrona Global Bond ETF Market Price**		4.24	%		2.42	%		3.26	%		3.63	%
Bloomberg Barclays U.S. Aggregate Bond Index		-0.31	%		2.48	%		2.21	%		2.97	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 1.43% and the net expense ratio is 1.33%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 0.95%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

Commencement of operations.

Bloomberg Barclays U.S. Aggregate Bond Index measures the performance of the U.S. investment grade bond market. One cannot invest directly in an index.

ADVISORSHARES TRUST

AdvisorShares Madrona International ETF (FWDI)

This past year, the Madrona International ETF (FWDI) outperformed its benchmarks. While the MSCI EAFE Index and the BNY Mellon Classic ADR returned 20.27% and 20.73%, respectively, FWDI posted a Market Price Return of 23.31% with an NAV appreciation of 23.36%. With its top four holdings in technology, energy, healthcare, and finance, FWDI has witnessed appreciation globally in industries yielding high returns in additional to being calculated as poised for future growth. With technology’s strong growth over the past 12 months, the fund was able to capitalize. In more recent months, the financial sector has seen gains which have factored into this year’s earnings.

Previous years of underperformance in the international front may have paved the way for higher returns to break out this past year. The annual return of FWDI and both of its benchmarks illustrate the recent bull run of international equities. We hold that years of undervalued international companies retaining consistent value and profitability has led the way to these equities updated to be priced in for their underlying value, as seen by the annual return. Despite the events of Brexit, terror attacks, and controversial elections, it has been an impressive year for equities on the global front.

Our outlook is positive for the growth of international equities. We may expect to see potential jitters from geopolitical acts of instability, notably manifest in North Korean belligerence, but we believe the overall portfolio appreciation to stay its course. Looking forward, we retain an optimistic view on the international equity market, but do not reasonably expect the market to sustainably yield such results as those of the past 12 months annually. However, we believe that we can continue our aim of providing long-term capital appreciation above the capital appreciation of our international benchmarks to remain a suitable investment for those seeking diversified, global returns.

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT

For the period June 21, 2011* to June 30, 2017

HISTORICAL PERFORMANCE

Total Return as of June 30, 2017

	1 Year			3 Year			5 Year			Since Inception 6/21/2011

AdvisorShares Madrona International ETF NAV		23.36	%		-1.07	%		7.04	%		2.92	%
AdvisorShares Madrona International ETF Market Price**		23.31	%		-0.97	%		6.98	%		2.92	%
MSCI EAFE Index (Net)		20.27	%		1.15	%		8.69	%		5.27	%
BNY Mellon Classic ADR Index		20.73	%		1.23	%		7.89	%		4.42	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 1.62% and the net expense ratio is 1.25%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 1.25%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

Commencement of operations.

The BNY Mellon Classic ADR Index combines the over the counter (OTC) traded ADRs with exchange- listed ADRs bringing transparency to the available universe of American Depositary Receipts, including those issued by many of the world’s premier companies. One cannot invest directly in an index.

ADVISORSHARES TRUST

AdvisorShares Meidell Tactical Advantage ETF (MATH)

The AdvisorShares Meidell Tactical Advantage ETF (NYSE Arca: MATH) realized a solid gain for the 12-month period ending in June 30^th, 2017, with MATH’s NAV return of 13.61% and market price return of 13.97%, versus S&P 500 total return of 17.90%. This was due to MATH’s broad diversification into U.S. large-cap, mid-cap, small-cap equities, along with intermittent exposure to international developed and emerging markets over that time period.

The Fund had attractive performance during the last half of 2016, outperforming the S&P 500 over that period, as U.S. small-cap stocks lead the equity markets higher, following the presidential election. However, as we began 2017, U.S. equity markets narrowed as the new administration assumed its role in Washington, and investors waited to see how quickly the Trump administration would get traction on its agenda items. MATH’s exposure to U.S. small and mid-cap stocks were a drag in the portfolio during the first half of 2017, as U.S. investors took a rifle approach to investing new dollars, focusing primarily on the large cap growth sector and its technology companies. Additionally, a weak U.S. dollar boosted returns for overseas investors in both developed and emerging markets.

While we are optimistic about the U.S. stock market for the remainder of the year and into 2018, much is riding on Washington’s ability to pass a meaningful healthcare and tax reform bill before the end of this year. Once the euphoria over the new legislation has passed, we expect the stock market will be susceptible to a more meaningful correction in the latter half of 2018. Though MATH has made recent changes to its formula to improve its up-capture percentage, the fund remains ever diligent to protect investor assets when market trends turn negative.

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT

For the period June 23, 2011* to June 30, 2017

HISTORICAL PERFORMANCE

Total Return as of June 30, 2017

	1 Year			3 Year			5 Year			Since Inception 6/23/2011

AdvisorShares Meidell Tactical Advantage ETF NAV		13.61	%		0.60	%		4.17	%		3.55	%
AdvisorShares Meidell Tactical Advantage ETF Market Price**		13.97	%		0.63	%		3.89	%		3.56	%
S&P 500 Index		17.90	%		9.61	%		14.63	%		13.49	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 2.11% and the net expense ratio is 1.58%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 1.35%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

Commencement of operations.

The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks. One cannot invest directly in an index.

ADVISORSHARES TRUST

AdvisorShares Newfleet Multi-Sector Income ETF (MINC)

The AdvisorShares Newfleet Multi-Sector Income ETF (MINC) delivered positive returns of +2.37% based on market price performance and +2.30% based on NAV as compared to -0.31% for the Bloomberg Barclays U.S. Aggregate Bond Index for the one year time period ending June 30, 2017.

MINC benefitted from being invested in credit spread sectors which significantly outperformed government related sectors like US Treasuries and Agency Mortgage Backed Securities. Domestic credit sectors like Leveraged Loans and High Yield delivered strong returns for the Fund along with an allocation to Emerging Markets and Yankee Investment Grade debt. MINC had less than 5% of the Fund invested in Treasuries and Agency MBS as compared to 2/3 of the Index. The allocation decision to underweight those sectors added alpha as the 5yr and 10yr US Treasuries rose from 1% to 1.89% and from 1.47% to 2.31%, respectively. The short duration nature also helped MINC outperform.

We are constructive on spread sectors and will maintain an overweight based on sound and improving fundamentals, strong technicals, still-accommodative central banks, and attractive valuations in certain areas of the fixed income markets. However, with spreads well inside of long-term averages, selection and positioning within sectors is critical. With strong demand for fixed income and a supportive environment, spread sectors continue to offer attractive opportunities to investors searching for total return and yield. Some of the specific sectors where we see value are: out-of-index/off-the-run ABS, non-agency RMBS, corporate high yield bonds, high yield bank loans, and emerging market bonds.

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT

For the period March 19, 2013* to June 30, 2017

HISTORICAL PERFORMANCE

Total Return as of June 30, 2017

	1 Year			3 Year			Since Inception 3/19/2013

AdvisorShares Newfleet Multi-Sector Income ETF NAV		2.30	%		1.90	%		2.06	%
AdvisorShares Newfleet Multi-Sector Income ETF Market Price**		2.37	%		1.90	%		2.07	%
Bloomberg Barclays U.S. Aggregate Bond Index		-0.31	%		2.48	%		2.21	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 0.82% and the net expense ratio is 0.76%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 0.75%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

Commencement of operations.

The Bloomberg Barclays U.S. Aggregate Bond Index measures the performance of the U.S. investment grade bond market. One cannot invest directly in an index.

ADVISORSHARES TRUST

AdvisorShares Pacific Asset Enhanced Floating Rate ETF (FLRT)

The AdvisorShares Pacific Asset Enhanced Floating Rate ETF (FLRT) returned 5.75% on a market price basis and 4.78% on a NAV basis for the year ended June 30, 2017, net of fees.

The bank loan market provided good returns for the one year period ended June 30, 2017. Loans at the higher end of the risk spectrum were especially strong performers during the year with Energy-related credits leading the way higher. Also positive was our allocation to high yield bonds, which notably outperformed the loan market. Wireless telecommunications and Financials were the leaders from the bond side of the portfolio. Underperformance in the portfolio came from our exposure to Retail loan names. The weakness in mall-based retailers has moved to the rest of retail as secular change drives lower sales.

As we enter the second half of 2017, we are maintaining a relatively cautious view of the bank loan market. The fundamental backdrop, anchored by stable corporate health and economic data, provides an attractive bottom-up view for U.S. credit. Technical conditions are also favorable given ongoing institutional and retail demand for floating rate yield. However, valuations have become increasingly tight and the potential upside from current levels is limited. We expect to maintain higher than normal liquidity levels until market spreads become more attractive.

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT

For the period February 18, 2015* to June 30, 2017

HISTORICAL PERFORMANCE

Total Return as of June 30, 2017

	1 Year			Since Inception 2/18/2015

AdvisorShares Pacific Asset Enhanced Floating Rate ETF NAV		4.78	%		2.93	%
AdvisorShares Pacific Asset Enhanced Floating Rate ETF Market Price**		5.75	%		2.91	%
S&P/LSTA U.S. Leveraged Loan 100 Index		6.74	%		3.30	%
S&P 500 Index		17.90	%		8.54	%
U.S. OE Bank Loan Index		6.67	%		3.43	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 1.53% and the net expense ratio is 1.12%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 1.10%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

Commencement of operations.

The S&P/LSTA U.S. Leveraged Loan 100 Index is designed to track the market-weighted performance of the largest institutional leveraged loans based on market weightings, spreads and interest payments. One cannot invest directly in an index.

The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks. One cannot invest directly in an index.

Bank Loan: funds that invest primarily in floating-rate bank loans instead of bonds. In exchange for their credit risk, they offer high interest payments that typically float above a common short-term benchmark.

ADVISORSHARES TRUST

AdvisorShares Peritus High Yield ETF (HYLD)

The AdvisorShares Peritus High Yield ETF’s return over the fiscal year ending June 30, 2017 was 15.72% for NAV and 14.33% for market price, versus a return of 12.70% for the Bloomberg Barclays U.S. Corporate High Yield Bond Index. We saw a widening of the market trading premium over the year, thus the outperformance of NAV versus the market return.

After taking a big leg down in 2015 and into the first couple months of 2016, we saw the high yield market begin to recover as 2016 progressed and that continued through the first half of 2017. While it was an improving market, we believe we are able to separate ourselves, thus our outperformance versus the index, via our security selection as we focus on finding value and generating alpha. We held a number of securities that we felt were extremely undervalued going into the fiscal year and we saw strong price performance in many of those credits, which were across a variety of industries, including technology, alternative finance, and oil and gas. This was complemented with our strategic allocation to newly issued bonds, whereby we were able to often sell bonds at multiple point premiums over a relatively short holding period. The price appreciation in various securities along with the solid income generation lead to the strong performance for the year.

While we certainly don’t see the number of undervalued securities as nearly as prevalent in today’s high yield market as they were a year ago, we do believe there is still stable and attractive income as well as selective capital gains opportunities to be generated via a value-centered, actively managed portfolio of high yield bonds and loans. We remain focused on the goal of generating yield and producing an attractive total return for investors, while working to tame portfolio volatility.

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT

For the period December 1, 2010* to June 30, 2017

HISTORICAL PERFORMANCE

Total Return as of June 30, 2017

	1 Year			3 Year			5 Year			Since Inception 12/1/2010

AdvisorShares Peritus High Yield ETF NAV		15.72	%		-4.44	%		2.30	%		3.32	%
AdvisorShares Peritus High Yield ETF Market Price**		14.33	%		-4.80	%		2.04	%		3.13	%
Bloomberg Barclays U.S. Corporate High Yield Bond Index		12.70	%		4.48	%		6.89	%		7.40	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) and net expense ratio is 1.28%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 1.35%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

Commencement of operations.

The Bloomberg Barclays U.S. Corporate High Yield Bond Index is an unmanaged index considered representative of the universe of U.S. fixed rate, non investment grade debt. One cannot invest directly in an index.

ADVISORSHARES TRUST

AdvisorShares Ranger Equity Bear ETF (HDGE)

Over the 12-month period ending June 30, 2017, the AdvisorShares Ranger Equity Bear ETF returned -19.24% and -19.42% in NAV and market price performance respectively compared with 17.90% for the S&P 500 total return. The performance of the AdvisorShares Ranger Equity Bear ETF was negatively impacted in the second half of 2016 due to a strong rise in stock prices related to a new administration's planned policies to reduce regulations, corporate taxes, and increase infrastructure spending.

Performance for the fund outperformed relative to the inverse of the total return of the S&P 500 in the first half of 2017 due to short positions established in retail oriented equities including mall REITs. This sector has come under increasing pressure as consumer shopping preferences have changed and also due to low earnings quality from inventory build up and increased channel stuffing. These have had the effect of reducing cash flow and as a result valuations.

The fund is aggressively positioned on the short side of the market with a near full exposure and tilted toward higher beta securities. Valuations on the S&P 500 relative to revenue remain at all-time highs. In management's opinion, investor sentiment remains too bullish. Volatlity has persistently tested lows. Profit margins have peaked and earnings quality remains low through the increased use of Non-GAAP measures of financial performance.

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT

For the period January 27, 2011* to June 30, 2017

HISTORICAL PERFORMANCE

Total Return as of June 30, 2017

	1 Year			3 Year			5 Year			Since Inception 1/27/2011

AdvisorShares Ranger Equity Bear ETF NAV		-19.24	%		-10.08	%		-18.16	%		-15.36	%
AdvisorShares Ranger Equity Bear ETF Market Price**		-19.42	%		-10.16	%		-18.20	%		-15.38	%
S&P 500 Index		17.90	%		9.61	%		14.63	%		12.61	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) and net expense ratio is 2.80%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 1.85%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

Commencement of operations.

The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks. One cannot invest directly in an index.

ADVISORSHARES TRUST

AdvisorShares Sage Core Reserves ETF (HOLD)

The AdvisorShares Sage Core Reserves ETF (NYSE Arca: HOLD) returned 1.08% in NAV and 0.88% in Market Price Return for the 12-month period ending June 30, 2017 (net of fees); vs. a 0.45% return for the Bloomberg Barclays U.S. 1-3 Month Treasury Bill Index over the same period.

HOLD, a short duration cash alternative, benefited from both excess carry and spread tightening throughout the year. The fund’s largest holding is in corporate credit, comprising nearly 60 percent of the fund. That sector returned 1.57% during the 12-month period. Within the corporate sector, financial institutions were the best performing sub-sector, returning 1.87%. Industrials, the largest corporate sub-sector, returned 1.44%. Asset-backed securities comprise the second largest sector holding at roughly 23%, and returned 1.08% during the same time-frame.

The story of the next 12 months will likely revolve around central bank policy. The Fed has already announced their plan to begin tapering the balance sheet later this year. As this process unfolds we expect to see the Treasury curve begin to steepen, and as it steepens, this will give the Fed further ability to raise rates. How corporate spreads will react to this depends in part to what other central banks are doing. Corporate spreads in the US have benefited from relatively higher domestic rates. However, they might look less attractive to foreign buyers if the European Central Bank begins to unwind its current QE policy. We expect both the ECB and Fed to provide greater insight into their policy in the third quarter.

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT

For the period January 14, 2014* to June 30, 2017

HISTORICAL PERFORMANCE

Total Return as of June 30, 2017

	1 Year			3 Year			Since Inception 1/14/2014

AdvisorShares Sage Core Reserves ETF NAV		1.08	%		0.64	%		0.58	%
AdvisorShares Sage Core Reserves ETF Market Price**		0.88	%		0.63	%		0.58	%
Bloomberg Barclays U.S. 1-3 Month Treasury Bill Index		0.44	%		0.20	%		0.18	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 0.57% and the net expense ratio is 0.37%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 0.35%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

Commencement of operations.

The Bloomberg Barclays U.S. 1-3 Month Treasury Bill Index includes all publicly issued zero-coupon U.S. Treasury Bills that have a remaining maturity of less than 3 months and more than 1 month, are rated investment grade, and have $250 million or more of outstanding face value. The Bloomberg Barclays U.S. 1-3 Month Treasury Bill Index is an unmanaged index considered representative of the performance of the U.S. Treasury Bill issued by the U.S. Government. One cannot invest directly in an index.

ADVISORSHARES TRUST

AdvisorShares STAR Global Buy-Write ETF (VEGA)

The AdvisorShares STAR Global Buy-Write ETF (NYSE Arca: VEGA) gained 9.74% for the year ending June 30, 2017 on a Market Price basis and 9.70% on an NAV basis. By comparison, VEGA’s Policy Benchmark* gained 11.36% over the same period.

VEGA focuses on achieving a target beta of .60 to the S&P 500. The portfolio is adjusted monthly via adjustments to the underlying holdings, as well as adjustments to the options holdings, including both Covered Calls and Protective Puts. VEGA defines itself as a global “go anywhere” portfolio. Our main focus of our “go anywhere” philosophy this period was our U.S. Equity allocation.

In February 2017, VEGA ETF made tactical changes within its Equity allocation specifically reducing exposure in SPDR S&P 500 (SPY) from 60% to 50%. Once we reduced our allocation to SPY by 10%, we allocated 6% into iShares Russell 2000 (IWM) and 4% into Financial Select Sector SPDR Fund (XLF). Reduction of SPY partially stems from the recent run up in value of large cap. Our tactical adjustment to IWM is derived from a opportunity we see in the local U.S. Economy, specifically manufacturing and technology. Additionally, Small Cap may be less sensitive to currency exchanges rates and potential continued weakening of the dollar could have less impact. We believe the U.S. Economy continues to recover and has moved into a rising rate environment which can significantly impact the profitability of Financial Institutions. We also believe that the potential reduction in regulation can further boost returns to XLF. Lastly, excess cash from the reduction of SPY was also used to rebalance iShares MSCI Emerging Markets (EEM) and iShares MSCI EAFE (EFA) to its target allocation. We continue to sell Covered Calls again the SPDR S&P 500 ETF Trust (SPY), iShares MSCI Emerging Markets ETF (EEM) and iShares MSCI EAFE ETF (EFA), as well as purchase Protective Puts against the SPDR S&P 500 ETF Trust (SPY).

While Equity Adjustments were our primary focus during this period we continued discussion and reflection on our Fixed Income allocation. During the period ending June 30, 2017 small adjustments were made to the Fixed Income allocations within the VEGA ETF. We continue to hold Powershares Fundamental High Yield Corp (PHB), SPDR Bloomberg Barclays Convertible Securities (CWB), Vanguard Intermediate-Term Bond (BIV), SPDR Doubleline Tactical ETF (TOTL) and Vanguard REIT ETF (VNQ). PHB, BIV and TOTL have an approximate target allocation of 5%. CWB and VNQ have targets of 2% and 3% respectively. During the period VNQ was reduced to this target in August 2016 due to a significant run up in value.

We continue to actively use options on our Equity holdings via Covered Calls and Protective Puts. The Covered Calls use the CBOE Volatility Index (VIX) to adjust coverage depending on the current Volatility Regime. The VIX is also used to determine tactical reinvestment of cash that builds up from premium collected by selling Covered Calls. We refer to this tactical deployment of cash as Volatility-Based Reinvestment. As the VIX continues to remain at all-time lows an opportunity to reinvest cash during this period did not occur. Our opinion is that the VIX cannot continue to persist at such low levels in longevity. There will be bumps in the road ahead and opportunities should ultimately present itself to reinvest back into the underlying portfolio when the VIX spikes and the market pulls back.

Looking forward, we believe that now more than ever it is crucial to look for opportunities for volatility of the markets to work in our favor. These opportunities can present themselves based upon occurrences such as the global uncertainty brought on by last year’s Brexit or other geopolitical factors including China’s potential looming debt crisis. We also continue to watch and analyze several factors before making tactical changes including: Fed Action; Tax Code Reform; Entitlement Reform; Trade Policy; Infrastructure Spending; Financial Reform Outcomes — These factors will determine any future tactical shifts or changes to the VEGA strategy.

The VEGA Policy Benchmark is a blended benchmark of 37.5% MSCI World Index, 37.5% CBOE S&P 500 Buy/Write Index and 25% to the Barclays Intermediate Government Corporate Index. The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks. The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. The Barclays Intermediate Government Corporate Index is an unmanaged index considered representative of the performance of the U.S. investment grade Government and Corporate debt issuance. The CBOE S&P 500 BuyWrite Index (BXM) is a benchmark index designed to track the performance of a hypothetical buy-write strategy on the S&P 500 Index. Announced in April 2002, the BXM Index was developed by the CBOE in cooperation with Standard & Poor’s. The BXM is a passive total return index based on (1) buying an S&P 500 stock index portfolio, and (2) “writing” (or selling) the near-term S&P 500 Index (SPXSM) “covered” call option, generally on the third Friday of each month. One cannot invest directly in an index.

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT

For the period September 17, 2012* to June 30, 2017

HISTORICAL PERFORMANCE

Total Return as of June 30, 2017

	1 Year			3 Year			Since Inception 9/17/2012

AdvisorShares STAR Global Buy-Write ETF NAV		9.70	%		3.90	%		3.60	%
AdvisorShares STAR Global Buy-Write ETF Market Price**		9.74	%		3.85	%		3.59	%
MSCI World Index (Net)		18.20	%		5.24	%		9.92	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 2.15% and the net expense ratio is 2.03%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 1.85%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

Commencement of operations.

The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. One cannot invest directly in an index.

ADVISORSHARES TRUST

AdvisorShares Wilshire Buyback ETF (TTFS)

For the 12-month period ending June 2017, the AdvisorShares Wilshire Buyback ETF (NYSE Arca: TTFS) returned 20.55%, outperforming the benchmark Wilshire US Large Cap Index, which returned 18.26%. The Fund benefited largely from a sizable cyclical bias in 2016, as overweight exposures and strong security selection in Industrials, Financials, and Consumer Discretionary stocks drove the vast majority of outperformance. Security selection in the Industrials sector was particularly strong, most notably United Continental (UAL) and United Rentals (URI), two of the Fund’s largest exposures and largest contributors for the trailing 12 months as of June 30, 2017. Broad based exposure to Financials benefited from enthusiasm regarding deregulation and a steeper yield curve, which lends to a more profitable outlook for the sector.

While the Fund’s cyclical bias and stock selection provided an attractive level of outperformance for the first half of the fiscal year ending June 30, 2017 the cyclical tailwinds soon shifted to headwinds in 2017, as enthusiasm regarding the new administrations ability to execute were tempered, and momentum and sentiment fueled a shift in market leadership to growth oriented stocks, most notably Information Technology, which the Fund has been significantly underweight. The large majority of the Fund’s underperformance has been a function of an underweight to Information Technology. Specifically, the Fund’s lack of exposure to Apple, Alphabet, and Facebook have been the largest drag on relative performance.

The Fund continues to maintain a slight value-bias, which we observe as a consistent factor exposure that accompanies buyback activity — companies tend to buy back stock when share prices are attractively valued. This value orientation has proven to be out of favor on a trailing one-year basis, with the Wilshire US Large Cap Growth Index returning 25.07% relative to 12.02% for the Wilshire US Large Cap Value Index, more than double the total return. Even in the face of these stylistic headwinds, not to mention a challenging environment for active managers, the Fund still provided a modest level of outperformance for the trailing one year, while finishing in the top 15% of the Morningstar Large Cap Blend category.

Chart as of 6/30/17

Largest 10 Positions			Smallest 10 Positions
AMERISOUCEBERGEN CORP	3.22	%	CINCINNATI FINANCIAL CORP	0.26	%
HCA HEALTHCARE INC	2.93	%	ALLEGHANY CORP	0.26	%
DELTA AIR LINES INC	2.53	%	VALVOLINE INC	0.28	%
UNITED CONTINENTAL HOLDINGS	2.38	%	ASHLAND GLOBAL HOLDINGS	0.28	%
MCKESSON CORP	2.25	%	HOST HOTELS & RESORTS INC	0.33	%
SPIRIT AEROSYSTEMS HOLD-CL A	2.24	%	ZIONS BANCORPORATION	0.35	%
SIGNET JEWELERS LTD	2.05	%	SNAP-ON INC	0.40	%
LEAR CORP	1.74	%	PRINCIPAL FINANCIAL GROUP	0.40	%
HELMERICH & PAYNE	1.71	%	TRIPADVISOR INC	0.42	%
UNITED RENTALS INC	1.67	%	NEWS CORP – CLASS A	0.45	%

Holdings as of 6/30/2017

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT

For the period October 4, 2011* to June 30, 2017

HISTORICAL PERFORMANCE

Total Return as of June 30, 2017

	1 Year			3 Year			5 Year			Since Inception 10/4/2011

AdvisorShares Wilshire Buyback ETF NAV		20.55	%		9.85	%		15.71	%		18.32	%
AdvisorShares Wilshire Buyback ETF Market Price**		20.52	%		9.80	%		15.64	%		18.31	%
Russell 3000 Index		18.51	%		9.10	%		14.58	%		16.78	%
Wilshire US Large Cap Index		18.26	%		9.64	%		14.66	%		16.76	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 1.12% and the net expense ratio is 0.90%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 0.90%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

Commencement of operations.

The Russell 3000 Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market. One cannot invest directly in an index.

The Wilshire US Large Cap Index is a float-adjusted, market capitalization-weighted index of the issues ranked above 750 market capitalization of the Wilshire 5000 Total Market IndexSM (Wilshire 5000®). One cannot invest directly in an index.

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 January 1, 2017 and held for the period ended June 30, 2017.

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 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.

	Beginning		Ending		Annualized
	Account Value		Account Value		Expense Ratio			Expenses
Fund Name	1/1/2017		6/30/2017		for the Period⁽¹⁾			Paid
AdvisorShares Cornerstone Small Cap ETF
Actual	$	1,000.00	$	1,048.10		0.90	%	$	4.57	⁽²⁾
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,020.33		0.90	%	$	4.51
AdvisorShares Dorsey Wright ADR ETF⁽³⁾
Actual	$	1,000.00	$	1,162.60		1.25	%	$	6.70
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,018.90		1.25	%	$	6.26
AdvisorShares Focused Equity ETF
Actual	$	1,000.00	$	1,102.20		0.75	%	$	3.91	⁽⁴⁾
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,021.08		0.75	%	$	3.76
AdvisorShares Gartman Gold/Euro ETF
Actual	$	1,000.00	$	995.70		0.65	%	$	3.22
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,021.57		0.65	%	$	3.26
AdvisorShares Gartman Gold/Yen ETF
Actual	$	1,000.00	$	1,041.50		0.65	%	$	3.29
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,021.57		0.65	%	$	3.26
AdvisorShares KIM Korea Equity ETF
Actual	$	1,000.00	$	1,239.60		0.99	%	$	5.50	⁽⁵⁾
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,019.89		0.99	%	$	4.96
AdvisorShares Madrona Domestic ETF
Actual	$	1,000.00	$	1,092.00		1.25	%	$	6.48
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,018.60		1.25	%	$	6.26

Shareholder Expense Examples (continued)

	Beginning		Ending		Annualized
	Account Value		Account Value		Expense Ratio			Expenses
Fund Name	1/1/2017		6/30/2017		for the Period⁽¹⁾			Paid
AdvisorShares Madrona Global Bond ETF
Actual	$	1,000.00	$	1,045.40		0.95	%	$	4.82
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,020.08		0.95	%	$	4.76
AdvisorShares Madrona International ETF
Actual	$	1,000.00	$	1,114.70		1.25	%	$	6.55
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,018.60		1.25	%	$	6.26
AdvisorShares Meidell Tactical Advantage ETF
Actual	$	1,000.00	$	1,032.90		1.35	%	$	6.80
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,018.10		1.35	%	$	6.76
AdvisorShares Newfleet Multi-Sector Income ETF
Actual	$	1,000.00	$	1,014.70		0.75	%	$	3.75
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,021.08		0.75	%	$	3.76
AdvisorShares Pacific Asset Enhanced Floating Rate ETF
Actual	$	1,000.00	$	1,003.20		1.10	%	$	5.46
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,019.34		1.10	%	$	5.51
AdvisorShares Peritus High Yield ETF
Actual	$	1,000.00	$	1,043.60		1.22	%	$	6.18
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,018.74		1.22	%	$	6.11
AdvisorShares Ranger Equity Bear ETF
Actual	$	1,000.00	$	924.40		1.64	%	$	7.83
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,016.66		1.64	%	$	8.20
AdvisorShares Sage Core Reserves ETF
Actual	$	1,000.00	$	1,006.70		0.35	%	$	1.74
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,023.06		0.35	%	$	1.76
AdvisorShares STAR Global Buy-Write ETF
Actual	$	1,000.00	$	1,059.20		1.85	%	$	9.45
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,015.62		1.85	%	$	9.25
AdvisorShares Wilshire Buyback ETF⁽⁶⁾
Actual	$	1,000.00	$	1,041.00		0.90	%	$	4.55
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,020.33		0.90	%	$	4.51

(1) Expense ratios reflect expense caps through the period ended June 30, 2017.

(2) Actual Expenses Paid are equal to the Fund's annualized expense ratio, multiplied by the average account value for the period, multiplied by 359/365 (to reflect commencement of operations to June 30, 2017).

(3) Formerly known as, AdvisorShares WCM/BNY Mellon focused Growth ADR ETF.

(4) Actual Expenses Paid are equal to the Fund's annualized expense ratio, multiplied by the average account value for the period, multiplied by 283/365 (to reflect commencement of operations to June 30, 2017).

(5) Actual Expenses Paid are equal to the Fund's annualized expense ratio, multiplied by the average account value for the period, multiplied by 275/365 (to reflect commencement of operations to June 30, 2017).

(6) Formerly known as, AdvisorShares TrimTabs Float Shrink ETF.

ADVISORSHARES CORNERSTONE SMALL CAP ETF

Schedule of Investments

June 30, 2017

Investments	Shares		Value
COMMON STOCKS — 99.2%

Airlines — 0.9%
SkyWest, Inc.		1,059	$	37,171

Auto Manufacturers — 0.5%
Wabash National Corp.		999		21,958

Auto Parts & Equipment — 0.4%
Cooper Tire & Rubber Co.^(a)		453		16,353

Banks — 5.4%
BancFirst Corp.		191		18,451
Central Pacific Financial Corp.		573		18,032
CVB Financial Corp.		700		15,701
Eagle Bancorp, Inc.*		556		35,195
Farmers National Banc Corp.		1,040		15,080
First BanCorp (Puerto Rico)*		3,067		17,758
First Connecticut Bancorp, Inc.		590		15,133
First Mid-Illinois Bancshares, Inc.		431		14,757
Fulton Financial Corp.		823		15,637
TriState Capital Holdings, Inc.*		1,108		27,922
United Bankshares, Inc.^(a)		457		17,914
WashingtonFirst Bankshares, Inc.		624		21,547
Total Banks				233,127

Beverages — 0.2%
Boston Beer Co., Inc. (The), Class A*^(a)		60		7,929

Biotechnology — 1.0%
BioCryst Pharmaceuticals, Inc.*^(a)		2,130		11,843
Enzo Biochem, Inc.*		1,592		17,576
PDL BioPharma, Inc.*		6,161		15,217
Total Biotechnology				44,636

Building Materials — 1.2%
AAON, Inc.		426		15,698
Louisiana-Pacific Corp.*		748		18,034
NCI Building Systems, Inc.*		1,152		19,239
Total Building Materials				52,971

Chemicals — 1.8%
Balchem Corp.		191		14,843
Innospec, Inc.		224		14,683
Kronos Worldwide, Inc.		1,053		19,186
Rayonier Advanced Materials, Inc.^(a)		890		13,991
Tronox Ltd., Class A		955		14,439
Total Chemicals				77,142

Coal — 0.3%
Alliance Holdings GP LP		600		14,220

Investments	Shares		Value
COMMON STOCKS (continued)

Commercial Services — 6.6%
ABM Industries, Inc.		355	$	14,739
Adtalem Global Education, Inc.^(a)		284		10,778
Alarm.com Holdings, Inc.*		524		19,718
Bridgepoint Education, Inc.*		1,496		22,081
Care.com, Inc.*		925		13,967
Grand Canyon Education, Inc.*		382		29,953
Green Dot Corp., Class A*		502		19,342
HMS Holdings Corp.*		828		15,318
Insperity, Inc.		393		27,903
K12, Inc.*		737		13,207
Kelly Services, Inc., Class A		644		14,458
LendingTree, Inc.*^(a)		82		14,120
Nutrisystem, Inc.		312		16,240
On Assignment, Inc.*		311		16,841
Paylocity Holding Corp.*		447		20,195
Quad/Graphics, Inc.^(a)		666		15,265
Total Commercial Services				284,125

Computers — 4.3%
3D Systems Corp.*^(a)		737		13,782
Barracuda Networks, Inc.*		726		16,741
Carbonite, Inc.*^(a)		1,085		23,653
Engility Holdings, Inc.*		404		11,474
Insight Enterprises, Inc.*		457		18,275
NeuStar, Inc., Class A*^(a)		502		16,742
Sykes Enterprises, Inc.*		404		13,546
Varonis Systems, Inc.*		519		19,307
Vocera Communications, Inc.*		1,092		28,851
WNS Holdings Ltd. (India)*^(b)		612		21,028
Total Computers				183,399

Distribution/Wholesale — 1.1%
Systemax, Inc.		899		16,901
Titan Machinery, Inc.*		840		15,103
Triton International Limited (Bermuda)		495		16,553
Total Distribution/Wholesale				48,557

Diversified Financial Services — 0.9%
Investment Technology Group, Inc.		869		18,458
WageWorks, Inc.*		322		21,638
Total Diversified Financial Services				40,096

Electric — 0.4%
Avista Corp.		371		15,753

Electrical Components & Equipment — 0.3%
Powell Industries, Inc.		355		11,356

See accompanying Notes to Financial Statements.

ADVISORSHARES CORNERSTONE SMALL CAP ETF

Schedule of Investments (continued)

June 30, 2017

Investments	Shares		Value
COMMON STOCKS (continued)

Electronics — 3.9%
Applied Optoelectronics, Inc.*^(a)	312	$	19,278
Brady Corp., Class A	459		15,560
Control4 Corp.*	1,114		21,846
CTS Corp.	808		17,453
GoPro, Inc., Class A*^(a)	2,014		16,374
II-VI, Inc.*	465		15,950
KEMET Corp.*	1,083		13,862
Methode Electronics, Inc.	386		15,903
TTM Technologies, Inc.*^(a)	903		15,676
Vishay Intertechnology, Inc.	883		14,658
Total Electronics			166,560

Energy – Alternate Sources — 1.2%
First Solar, Inc.*	369		14,716
REX American Resources Corp.*	145		14,001
Sunrun, Inc.*^(a)	3,009		21,424
Total Energy – Alternate Sources			50,141

Engineering & Construction — 1.1%
Argan, Inc.^(a)	486		29,160
Exponent, Inc.	284		16,557
Total Engineering & Construction			45,717

Entertainment — 1.8%
Churchill Downs, Inc.^(a)	142		26,028
Marriott Vacations Worldwide Corp.	284		33,441
Penn National Gaming, Inc.*	742		15,879
Total Entertainment			75,348

Environmental Control — 0.6%
Casella Waste Systems, Inc., Class A*	1,665		27,323

Food — 1.3%
Fresh Del Monte Produce, Inc.	415		21,128
Sanderson Farms, Inc.^(a)	180		20,817
SpartanNash Co.	573		14,875
Total Food			56,820

Hand/Machine Tools — 0.4%
Kennametal, Inc.	502		18,785

Healthcare – Products — 5.3%
AngioDynamics, Inc.*	926		15,010
CryoLife, Inc.*	787		15,701
ICU Medical, Inc.*^(a)	142		24,495
Inogen, Inc.*	273		26,050

Investments	Shares		Value
COMMON STOCKS (continued)

Healthcare – Products (continued)
Lantheus Holdings, Inc.*		849	$	14,985
LeMaitre Vascular, Inc.		835		26,069
LivaNova PLC*^(a)		213		13,038
Luminex Corp.		693		14,636
Meridian Bioscience, Inc.		1,056		16,632
Merit Medical Systems, Inc.*		857		32,694
OraSure Technologies, Inc.*		1,556		26,856
Total Healthcare – Products				226,166

Healthcare – Services — 0.6%
Tivity Health, Inc.*^(a)		589		23,472

Holding Companies – Diversified — 0.4%
Landmark Infrastructure Partners LP		1,163		18,608

Home Furnishings — 1.2%
American Woodmark Corp.*		196		18,728
iRobot Corp.*^(a)		404		33,992
Total Home Furnishings				52,720

Household Products/Wares — 1.4%
ACCO Brands Corp.*		1,223		14,248
Central Garden & Pet Co.*		715		22,730
SodaStream International Ltd. (Israel)*		414		22,157
Total Household Products/Wares				59,135

Insurance — 1.9%
Fanhua, Inc. (China)^(b)		1,615		13,824
MGIC Investment Corp.*		1,319		14,773
NMI Holdings, Inc., Class A*		1,964		22,488
OneBeacon Insurance Group Ltd., Class A		965		17,592
Universal Insurance Holdings, Inc.		557		14,036
Total Insurance				82,713

Internet — 4.2%
Blucora, Inc.*		699		14,819
FireEye, Inc.*^(a)		1,167		17,750
Imperva, Inc.*		381		18,231
Limelight Networks, Inc.*		4,707		13,603
Rapid7, Inc.*		1,169		19,674
RingCentral, Inc., Class A*		425		15,534
Stamps.com, Inc.*^(a)		142		21,992
Trivago NV (Germany)*^(a)(b)		745		17,627
TrueCar, Inc.*^(a)		813		16,203

See accompanying Notes to Financial Statements.

ADVISORSHARES CORNERSTONE SMALL CAP ETF

Schedule of Investments (continued)

June 30, 2017

Investments	Shares		Value
COMMON STOCKS (continued)

Internet (continued)
VASCO Data Security International, Inc.*		1,029	$	14,766
WebMD Health Corp.*		163		9,560
Total Internet				179,759

Iron/Steel — 0.4%
Schnitzer Steel Industries, Inc., Class A		755		19,026

Leisure Time — 1.7%
Callaway Golf Co.		1,130		14,442
Fox Factory Holding Corp.*		624		22,214
Johnson Outdoors, Inc., Class A		323		15,572
LCI Industries		213		21,811
Total Leisure Time				74,039

Lodging — 0.7%
Marcus Corp. (The)		456		13,771
Monarch Casino & Resort, Inc.*		557		16,849
Total Lodging				30,620

Machinery – Diversified — 1.6%
Alamo Group, Inc.		224		20,341
Applied Industrial Technologies, Inc.		240		14,172
Chart Industries, Inc.*		464		16,115
DXP Enterprises, Inc.*		551		19,010
Total Machinery – Diversified				69,638

Media — 0.7%
Meredith Corp.		269		15,992
New York Times Co. (The), Class A		827		14,638
Total Media				30,630

Mining — 1.0%
Century Aluminum Co.*		1,384		21,563
Fairmount Santrol Holdings, Inc.*^(a)		2,375		9,263
US Silica Holdings, Inc.^(a)		377		13,380
Total Mining				44,206

Miscellaneous Manufacturing — 2.0%
Harsco Corp.*		1,328		21,381
John Bean Technologies Corp.^(a)		355		34,790
Myers Industries, Inc.		865		15,526
Sturm Ruger & Co., Inc.^(a)		225		13,984
Total Miscellaneous Manufacturing				85,681

Office Furnishings — 0.3%
Herman Miller, Inc.		404		12,282

Investments	Shares		Value
COMMON STOCKS (continued)

Oil & Gas — 1.8%
Callon Petroleum Co.*^(a)		1,010	$	10,716
CVR Energy, Inc.^(a)		673		14,644
Delek US Energy, Inc.		560		14,806
Matador Resources Co.*^(a)		613		13,100
PDC Energy, Inc.*		269		11,597
Penn Virginia Corp.*^(a)		324		11,907
Total Oil & Gas				76,770

Oil & Gas Services — 1.8%
Flotek Industries, Inc.*		1,386		12,391
McDermott International, Inc.*		2,702		19,374
Newpark Resources, Inc.*		1,937		14,237
NOW, Inc.*^(a)		1,053		16,932
Oceaneering International, Inc.		548		12,516
Total Oil & Gas Services				75,450

Packaging & Containers — 0.5%
Greif, Inc., Class A		393		21,922

Pharmaceuticals — 2.5%
Anika Therapeutics, Inc.*		344		16,973
Avadel Pharmaceuticals PLC*^(b)		1,439		15,872
Heska Corp.*		145		14,800
Supernus Pharmaceuticals, Inc.*		643		27,714
Teligent, Inc.*^(a)		1,720		15,738
Xencor, Inc.*^(a)		656		13,848
Total Pharmaceuticals				104,945

Private Equity — 0.3%
Kennedy-Wilson Holdings, Inc.		575		10,954

Real Estate — 0.9%
Forestar Group, Inc.*		1,273		21,832
HFF, Inc., Class A		415		14,429
Total Real Estate				36,261

REITS — 9.4%
Agree Realty Corp.		404		18,531
Arbor Realty Trust, Inc.		2,106		17,564
Ashford Hospitality Prime, Inc.		1,660		17,081
CareTrust REIT, Inc.		890		16,501
CoreSite Realty Corp.		284		29,403
Corporate Office Properties Trust		531		18,601
Cousins Properties, Inc.		2,149		18,890
EastGroup Properties, Inc.		213		17,849
First Industrial Realty Trust, Inc.		575		16,457
Hersha Hospitality Trust		936		17,325

See accompanying Notes to Financial Statements.

ADVISORSHARES CORNERSTONE SMALL CAP ETF

Schedule of Investments (continued)

June 30, 2017

Investments	Shares		Value
COMMON STOCKS (continued)

REITS (continued)
Investors Real Estate Trust		2,981	$	18,512
iStar, Inc.*		1,299		15,640
LaSalle Hotel Properties		553		16,479
National Health Investors, Inc.		159		12,593
National Storage Affiliates Trust		612		14,143
New Senior Investment Group, Inc.		1,720		17,286
Potlatch Corp.		300		13,710
Ramco-Gershenson Properties Trust		704		9,082
Retail Opportunity Investments Corp.		839		16,100
Rexford Industrial Realty, Inc.		547		15,010
Summit Hotel Properties, Inc.		988		18,426
Sunstone Hotel Investors, Inc.		1,163		18,748
Washington Prime Group, Inc.		2,063		17,267
Washington Real Estate Investment Trust		404		12,888
Total REITS				404,086

Retail — 4.1%
Arcos Dorados Holdings, Inc., Class A (Uruguay)*		2,615		19,482
Big 5 Sporting Goods Corp.^(a)		1,079		14,081
Chico's FAS, Inc.		1,212		11,417
Children's Place, Inc. (The)^(a)		147		15,009
Jack in the Box, Inc.		224		22,064
Office Depot, Inc.		2,854		16,096
Ollie's Bargain Outlet Holdings, Inc.*^(a)		355		15,123
PetMed Express, Inc.^(a)		403		16,362
Pier 1 Imports, Inc.		2,479		12,866
Wendy's Co. (The)		1,141		17,697
Wingstop, Inc.^(a)		481		14,863
Total Retail				175,060

Savings & Loans — 1.6%
Flagstar Bancorp, Inc.*^(a)		546		16,828
Northfield Bancorp, Inc.		950		16,292
OceanFirst Financial Corp.		749		20,313
Oritani Financial Corp.		870		14,834
Total Savings & Loans				68,267

Semiconductors — 6.0%
Alpha & Omega Semiconductor Ltd.*		557		9,285
Amkor Technology, Inc.*		2,036		19,892
Brooks Automation, Inc.		802		17,395

Investments	Shares		Value
COMMON STOCKS (continued)

Semiconductors (continued)
CEVA, Inc.*^(a)		633	$	28,770
Cohu, Inc.		961		15,126
FormFactor, Inc.*		1,349		16,728
Kulicke & Soffa Industries, Inc. (Singapore)*		857		16,300
MACOM Technology Solutions Holdings, Inc.*^(a)		202		11,266
MaxLinear, Inc.*^(a)		1,190		33,189
Nanometrics, Inc.*		594		15,022
Power Integrations, Inc.		250		18,225
Silicon Laboratories, Inc.*		251		17,156
Ultra Clean Holdings, Inc.*		1,083		20,306
Xcerra Corp.*		1,977		19,315
Total Semiconductors				257,975

Software — 6.4%
Appfolio, Inc., Class A*		655		21,353
Bazaarvoice, Inc.*		2,271		11,241
Blackbaud, Inc.		180		15,435
Blackline, Inc.*^(a)		400		14,296
Bottomline Technologies de, Inc.*		741		19,036
CommVault Systems, Inc.*		284		16,032
Cornerstone OnDemand, Inc.*		447		15,980
Ebix, Inc.^(a)		464		25,009
Five9, Inc.*		657		14,139
HubSpot, Inc.*^(a)		250		16,437
MINDBODY, Inc., Class A*		868		23,610
Paycom Software, Inc.*^(a)		295		20,181
RealPage, Inc.*		628		22,577
SPS Commerce, Inc.*		247		15,749
Zynga, Inc., Class A*		6,048		22,015
Total Software				273,090

Telecommunications — 4.0%
A10 Networks, Inc.*		1,953		16,483
Comtech Telecommunications Corp.		1,027		19,482
Extreme Networks, Inc.*		3,395		31,302
Iridium Communications, Inc.*^(a)		1,283		14,177
LogMeIn, Inc.		273		28,529
Oclaro, Inc.*^(a)		1,720		16,065
ShoreTel, Inc.*		2,822		16,368
Sonus Networks, Inc.*		1,867		13,890
Viavi Solutions, Inc.*		1,622		17,080
Total Telecommunications				173,376

See accompanying Notes to Financial Statements.

ADVISORSHARES CORNERSTONE SMALL CAP ETF

Schedule of Investments (continued)

June 30, 2017

	Shares/
Investments	Principal		Value
COMMON STOCKS (continued)

Textiles — 0.4%
UniFirst Corp.		109	$	15,336

Trucking & Leasing — 0.5%
GATX Corp.^(a)		191		12,276
Greenbrier Cos., Inc. (The)^(a)		240		11,100
Total Trucking & Leasing				23,376

Total Common Stocks
(Cost $3,740,432)				4,255,050

MONEY MARKET FUND — 0.9%
STIT – Government & Agency Portfolio, Institutional Class, 0.89%^(c)
(Cost $36,588)		36,588		36,588

REPURCHASE AGREEMENTS — 9.8%^(d)
Citigroup Global Markets, Inc., dated 06/30/17, due 07/03/17, 1.08%, total to be received $147,183, (collateralized by various U.S. Government Agency Obligations, 1.38% – 6.38%, 02/29/20 – 08/15/27, totaling $149,019)	$	147,170		147,170
HSBC Securities USA, Inc., dated 06/30/17, due 07/03/17, 1.06%, total to be received $21,441, (collateralized by various U.S. Government Agency Obligations, 0.00% – 7.25%, 07/15/17 – 01/15/37, totaling $21,838)		21,439		21,439

Investments	Principal		Value
REPURCHASE AGREEMENTS (continued)
Merrill Lynch Pierce Fenner & Smith, Inc., dated 06/30/17, due 07/03/17, 1.08%, total to be received $250,023, (collateralized by various U.S. Government Agency Obligations, 0.63% – 2.63%, 07/15/17 – 02/15/45, totaling $252,560)	$	250,000	$	250,000
Total Repurchase Agreements
(Cost $418,609)				418,609

Total Investments — 109.9%
(Cost $4,195,629)				4,710,247
Liabilities in Excess of Other Assets — (9.9%)				(423,923	)
Net Assets — 100.0%			$	4,286,324

LP — Limited Partnership

PLC — Public Limited Company

REITS — Real Estate Investment Trusts

Non-income producing security.

(a)

All or a portion of security is on loan. The aggregate market value of the securities on loan is $859,454; the aggregate market value of the collateral held by the fund is $880,026. The aggregate market value of the collateral includes non-cash U.S. Treasury securities collateral having a value of $461,417.

(b)

American Depositary Receipt.

(c)

Rate shown reflects the 7-day yield as of June 30, 2017.

(d)

Collateral received from brokers for securities lending was invested in these short-term investments.

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of
	Net Assets
Airlines		0.9	%
Auto Manufacturers		0.5
Auto Parts & Equipment		0.4
Banks		5.4
Beverages		0.2
Biotechnology		1.0

See accompanying Notes to Financial Statements.

ADVISORSHARES CORNERSTONE SMALL CAP ETF

Schedule of Investments (continued)

June 30, 2017

SUMMARY OF SCHEDULE OF INVESTMENTS (continued)

	% of
	Net Assets
Building Materials		1.2	%
Chemicals		1.8
Coal		0.3
Commercial Services		6.6
Computers		4.3
Distribution/Wholesale		1.1
Diversified Financial Services		0.9
Electric		0.4
Electrical Components & Equipment		0.3
Electronics		3.9
Energy – Alternate Sources		1.2
Engineering & Construction		1.1
Entertainment		1.8
Environmental Control		0.6
Food		1.3
Hand/Machine Tools		0.4
Healthcare – Products		5.3
Healthcare – Services		0.6
Holding Companies – Diversified		0.4
Home Furnishings		1.2
Household Products/Wares		1.4
Insurance		1.9
Internet		4.2
Iron/Steel		0.4
Leisure Time		1.7
Lodging		0.7
Machinery – Diversified		1.6
Media		0.7
Mining		1.0
Miscellaneous Manufacturing		2.0
Office Furnishings		0.3
Oil & Gas		1.8
Oil & Gas Services		1.8
Packaging & Containers		0.5
Pharmaceuticals		2.5
Private Equity		0.3
Real Estate		0.9
REITS		9.4
Retail		4.1
Savings & Loans		1.6
Semiconductors		6.0

SUMMARY OF SCHEDULE OF INVESTMENTS (continued)

	% of
	Net Assets
Software		6.4	%
Telecommunications		4.0
Textiles		0.4
Trucking & Leasing		0.5
Money Market Fund		0.9
Repurchase Agreements		9.8
Total Investments		109.9
Liabilities in Excess of Other Assets		(9.9	)
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

ADVISORSHARES DORSEY WRIGHT ADR ETF

(Formerly AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF)

Schedule of Investments

June 30, 2017

Investments	Shares		Value
COMMON STOCKS — 99.3%

Airlines — 5.5%
Copa Holdings SA, Class A (Panama)		16,034	$	1,875,978
Latam Airlines Group SA (Chile)^(a)(b)		152,723		1,690,644
Total Airlines				3,566,622

Banks — 17.6%
Banco do Brasil SA (Brazil)^(a)(b)		182,285		1,487,446
Banco Macro SA (Argentina)^(a)(b)		18,913		1,743,589
BNP Paribas SA (France)^(a)(b)		46,213		1,680,305
Grupo Financiero Galicia SA (Argentina)^(a)(b)		40,836		1,741,247
ING Groep NV (Netherlands)^(a)(b)		96,770		1,682,830
Sberbank of Russia PJSC (Russia)^(b)		144,610		1,502,498
Societe Generale SA (France)^(b)		151,143		1,652,749
Total Banks				11,490,664

Building Materials — 2.3%
CRH PLC (Ireland)^(b)		41,168		1,460,229

Chemicals — 5.7%
Braskem SA (Brazil)^(b)		80,256		1,662,904
Sociedad Quimica y Minera de Chile SA (Chile)^(b)		61,043		2,015,640
Total Chemicals				3,678,544

Commercial Services — 10.5%
New Oriental Education & Technology Group, Inc. (China)*^(b)		40,049		2,823,054
TAL Education Group (China)^(b)		33,047		4,041,979
Total Commercial Services				6,865,033

Computers — 2.2%
Logitech International SA (Switzerland)		39,378		1,443,597

Diversified Financial Services — 2.8%
KB Financial Group, Inc. (South Korea)^(b)		36,455		1,840,613

Electric — 12.1%
Empresa Distribuidora Y Comercializadora Norte (Argentina)*^(a)(b)		88,818		2,833,294
Enel SpA (Italy)^(b)		256,922		1,370,679
Pampa Energia SA (Argentina)*^(a)(b)		62,566		3,682,009
Total Electric				7,885,982

Forest Products & Paper — 2.7%
Stora Enso OYJ (Finland)^(a)(b)		135,631		1,763,203

Investments	Shares		Value
COMMON STOCKS (continued)

Insurance — 2.6%
Chubb Ltd.		11,653	$	1,694,113

Internet — 5.5%
SINA Corp. (China)*		22,347		1,898,825
Tencent Holdings Ltd. (China)^(a)(b)		42,606		1,532,112
Weibo Corp. (China)*^(a)(b)		2,231		148,294
Total Internet				3,579,231

Iron/Steel — 2.9%
Ternium SA (Luxembourg)^(b)		68,039		1,911,215

Lodging — 3.6%
China Lodging Group Ltd. (China)*^(b)		28,962		2,336,654

Machinery – Construction & Mining — 2.2%
Komatsu Ltd. (Japan)^(b)		54,661		1,402,055

Pharmaceuticals — 2.3%
Galapagos NV (Belgium)*^(b)		19,536		1,494,895

Real Estate — 4.9%
Cresud SACIF y A (Argentina)*^(a)(b)		79,860		1,553,277
IRSA Inversiones y Representaciones SA (Argentina)*^(a)(b)		68,493		1,652,051
Total Real Estate				3,205,328

Semiconductors — 4.5%
Broadcom Ltd.		5,850		1,363,343
STMicroelectronics NV (Switzerland)^(c)		106,932		1,537,682
Total Semiconductors				2,901,025

Software — 2.7%
SAP SE (Germany)^(b)		16,916		1,770,598

Telecommunications — 6.7%
America Movil SAB de CV, Class L (Mexico)^(b)		86,875		1,383,050
Telecom Argentina SA (Argentina)^(b)		58,954		1,493,894
TIM Participacoes SA (Brazil)^(b)		102,154		1,511,879
Total Telecommunications				4,388,823

Total Common Stocks
(Cost $60,417,630)				64,678,424

MONEY MARKET FUND — 0.7%
Invesco Government & Agency Portfolio – Private Investment Class, 0.59%^(d)
(Cost $486,306)		486,306		486,306

See accompanying Notes to Financial Statements.

ADVISORSHARES DORSEY WRIGHT ADR ETF

(Formerly AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF)

Schedule of Investments (continued)

June 30, 2017

Investments	Principal		Value
REPURCHASE AGREEMENTS — 10.2%^(e)
BNP Paribas Securities Corp., dated 06/30/17, due 07/03/17, 1.11%, total to be received $279,588, (collateralized by various U.S. Government Agency Obligations, 0.00% – 9.00%, 07/28/17 – 09/09/49, totaling $284,138)	$	279,562	$	279,562
Citigroup Global Markets, Inc., dated 06/30/17, due 07/03/17, 1.10%, total to be received $1,385,054, (collateralized by various U.S. Government Agency Obligations, 0.00% – 8.75%, 07/27/17 – 07/01/47, totaling $1,408,190)		1,384,927		1,384,927
Daiwa Capital Markets America, dated 06/30/17, due 07/03/17, 1.15%, total to be received $1,546,691, (collateralized by various U.S. Government Agency Obligations, 0.00% – 6.50%, 07/13/17 – 12/01/51, totaling $1,573,149)		1,546,543		1,546,543
HSBC Securities USA, Inc., dated 06/30/17, due 07/03/17, 1.06%, total to be received $340,319, (collateralized by various U.S. Government Agency Obligations, 0.00% – 7.25%, 07/15/17 – 01/15/37, totaling $346,623)		340,289		340,289
Nomura Securities International, Inc., dated 06/30/17, due 07/03/17, 1.13%, total to be received $1,546,689, (collateralized by various U.S. Government Agency Obligations, 0.00% – 9.50%, 07/10/17 – 06/20/67, totaling $1,573,124)		1,546,543		1,546,543

Investments	Principal		Value
REPURCHASE AGREEMENTS (continued)
RBC Dominion Securities, Inc., dated 06/30/17, due 07/03/17, 1.08%, total to be received $1,546,682, (collateralized by various U.S. Government Agency Obligations, 1.38% – 7.00%, 02/19/19 – 06/01/47, totaling $1,572,648)	$	1,546,543	$	1,546,543
Total Repurchase Agreements
(Cost $6,644,407)				6,644,407

Total Investments — 110.2%
(Cost $67,548,343)				71,809,137
Liabilities in Excess of Other Assets — (10.2%)				(6,624,300	)
Net Assets — 100.0%			$	65,184,837

PLC — Public Limited Company

Non-income producing security.

(a)

All or a portion of security is on loan. The aggregate market value of the securities on loan is $6,488,444; the aggregate market value of the collateral held by the fund is $6,644,407.

(b)

American Depositary Receipt.

(c)

Registered Shares.

(d)

Rate shown reflects the 7-day yield as of June 30, 2017.

(e)

Collateral received from brokers for securities lending was invested in these short-term investments.

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of
	Net Assets
Airlines		5.5	%
Banks		17.6
Building Materials		2.3
Chemicals		5.7
Commercial Services		10.5
Computers		2.2
Diversified Financial Services		2.8
Electric		12.1
Forest Products & Paper		2.7

See accompanying Notes to Financial Statements.

ADVISORSHARES DORSEY WRIGHT ADR ETF

(Formerly AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF)

Schedule of Investments (continued)

June 30, 2017

SUMMARY OF SCHEDULE OF INVESTMENTS (continued)

	% of
	Net Assets
Insurance		2.6	%
Internet		5.5
Iron/Steel		2.9
Lodging		3.6
Machinery – Construction & Mining		2.2
Pharmaceuticals		2.3
Real Estate		4.9
Semiconductors		4.5
Software		2.7
Telecommunications		6.7
Money Market Fund		0.7
Repurchase Agreements		10.2
Total Investments		110.2
Liabilities in Excess of Other Assets		(10.2	)
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

ADVISORSHARES FOCUSED EQUITY ETF

Schedule of Investments

June 30, 2017

Investments	Shares		Value
COMMON STOCKS — 99.3%

Aerospace/Defense — 4.1%
HEICO Corp.		6,971	$	500,797

Banks — 3.5%
Signature Bank*		2,940		421,978

Building Materials — 3.6%
Continental Building Products, Inc.*		18,918		440,789

Chemicals — 12.7%
Axalta Coating Systems Ltd.*		16,286		521,803
RPM International, Inc.		8,142		444,146
Sherwin-Williams Co. (The)		1,629		571,714
Total Chemicals				1,537,663

Commercial Services — 4.6%
Moody's Corp.		4,644		565,082

Computers — 4.3%
Cognizant Technology Solutions Corp., Class A		7,835		520,244

Diversified Financial Services — 8.3%
Alliance Data Systems Corp.		1,924		493,871
Intercontinental Exchange, Inc.		7,766		511,935
Total Diversified Financial Services				1,005,806

Entertainment — 3.7%
Cinemark Holdings, Inc.^(a)		11,442		444,522

Food — 10.4%
Hormel Foods Corp.		12,621		430,502
Ingredion, Inc.		3,528		420,573
JM Smucker Co. (The)		3,437		406,700
Total Food				1,257,775

Hand/Machine Tools — 3.3%
Snap-on, Inc.		2,563		404,954

Healthcare – Products — 13.2%
C.R. Bard, Inc.		1,976		624,633
Danaher Corp.		5,629		475,031
Stryker Corp.		3,670		509,323
Total Healthcare – Products				1,608,987

Insurance — 4.0%
Aflac, Inc.		6,304		489,695

Machinery – Diversified — 4.0%
Wabtec Corp.^(a)		5,265		481,748

Pharmaceuticals — 3.3%
Express Scripts Holding Co.*		6,329		404,043

Investments	Shares/Principal		Value
COMMON STOCKS (continued)

Retail — 3.1%
Ross Stores, Inc.		6,613	$	381,769

Software — 13.2%
Cerner Corp.*		9,266		615,911
Fiserv, Inc.*		4,101		501,717
Microsoft Corp.		6,984		481,407
Total Software				1,599,035

Total Common Stocks
(Cost $10,999,944)				12,064,887

MONEY MARKET FUND — 0.8%
BlackRock Liquidity Funds Treasury Trust Fund Portfolio, Institutional Class, 0.77%^(b)
(Cost $100,500)		100,500		100,500
REPURCHASE AGREEMENTS — 3.2%^(c)
Citigroup Global Markets, Inc., dated 06/30/17, due 07/03/17, 1.08%, total to be received $114,312, (collateralized by various U.S. Government Agency Obligations, 1.38% – 6.38%, 02/29/20 – 08/15/27, totaling $115,738)	$	114,302		114,302
HSBC Securities USA, Inc., dated 06/30/17, due 07/03/17, 1.06%, total to be received $19,667, (collateralized by various U.S. Government Agency Obligations, 0.00% – 7.25%, 07/15/17 – 01/15/37, totaling $20,031)		19,665		19,665

See accompanying Notes to Financial Statements.

ADVISORSHARES FOCUSED EQUITY ETF

Schedule of Investments (continued)

June 30, 2017

Investments	Shares/Principal		Value
REPURCHASE AGREEMENTS (continued)
Merrill Lynch Pierce Fenner & Smith, Inc., dated 06/30/17, due 07/03/17, 1.08%, total to be received $250,023, (collateralized by various U.S. Government Agency Obligations, 0.63% – 2.63%, 07/15/17 – 02/15/45, totaling $252,560)	$	250,000	$	250,000
Total Repurchase Agreements
(Cost $383,967)				383,967

Total Investments — 103.3%
(Cost $11,484,411)				12,549,354
Liabilities in Excess of Other Assets — (3.3%)				(399,747	)
Net Assets — 100.0%			$	12,149,607

*	Non-income producing security.
(a)	All or a portion of security is on loan. The aggregate market value of the securities on loan is $895,825; the aggregate market value of the collateral held by the fund is $914,694. The aggregate market value of the collateral includes non-cash U.S. Treasury securities collateral having a value of $530,727.
(b)	Rate shown reflects the 7-day yield as of June 30, 2017.
(c)	Collateral received from brokers for securities lending was invested in these short-term investments.

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of
	Net Assets
Aerospace/Defense		4.1	%
Banks		3.5
Building Materials		3.6
Chemicals		12.7
Commercial Services		4.6
Computers		4.3
Diversified Financial Services		8.3
Entertainment		3.7
Food		10.4

SUMMARY OF SCHEDULE OF INVESTMENTS (continued)

	% of
	Net Assets
Hand/Machine Tools		3.3	%
Healthcare – Products		13.2
Insurance		4.0
Machinery – Diversified		4.0
Pharmaceuticals		3.3
Retail		3.1
Software		13.2
Money Market Fund		0.8
Repurchase Agreements		3.2
Total Investments		103.3
Liabilities in Excess of Other Assets		(3.3	)
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

ADVISORSHARES GARTMAN GOLD/EURO ETF

Schedule of Investments (Consolidated)†

June 30, 2017

Investments	Shares		Value
EXCHANGE TRADED FUND — 33.0%
Debt Fund — 33.0%
AdvisorShares Sage Core Reserves ETF^††
(Cost $4,974,000)		50,000	$	4,976,500

MONEY MARKET FUND — 28.7%
BNY Mellon Cash Reserve, 0.10%^(a)
(Cost $4,324,052)		4,324,052		4,324,052

Total Investments — 61.7%
(Cost $9,298,052)				9,300,552
Other Assets in Excess of Liabilities — 38.3%				5,763,014
Net Assets — 100.0%			$	15,063,566

ETF — Exchange Traded Fund

†	The Consolidated Schedule of Investments included the accounts of the wholly owned subsidiary. All inter-company accounts and transactions have been eliminated in consolidation. See the Notes to Financial Statements.
††	Affiliated Company.
(a)	Rate shown reflects the 7-day yield as of June 30, 2017.

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of
	Net Assets
Debt Fund		33.0	%
Money Market Fund		28.7
Total Investments		61.7
Other Assets in Excess of Liabilities		38.3
Net Assets		100.0	%

Futures contracts outstanding as of June 30, 2017:

Type	Broker	Expiration Date	Number of Contracts			Value at Trade Date			Value at June 30, 2017			Unrealized Appreciation (Depreciation)
EURO Currency	Interactive Brokers LLC	September 2017		(106	)	$	(14,901,414	)	$	(15,193,775	)	$	(292,361	)
Gold 100 Oz.	Interactive Brokers LLC	August 2017		122			15,363,328			15,156,060			(207,268	)
												$	(499,629	)

Cash posted as collateral from broker for futures contracts was $5,809,064 at June 30, 2017.

See accompanying Notes to Financial Statements.

ADVISORSHARES GARTMAN GOLD/YEN ETF

Schedule of Investments (Consolidated)†

June 30, 2017

Investments	Shares		Value
EXCHANGE TRADED FUND — 32.3%
Debt Fund — 32.3%
AdvisorShares Sage Core Reserves ETF^††
(Cost $4,974,000)		50,000	$	4,976,500

MONEY MARKET FUND — 21.0%
BNY Mellon Cash Reserve, 0.10%^(a)
(Cost $3,247,432)		3,247,432		3,247,432

Total Investments — 53.3%
(Cost $8,221,432)				8,223,932
Other Assets in Excess of Liabilities — 46.7%				7,203,556
Net Assets — 100.0%			$	15,427,488

ETF — Exchange Traded Fund

†	The Consolidated Schedule of Investments included the accounts of the wholly owned subsidiary. All inter-company accounts and transactions have been eliminated in consolidation. See the Notes to Financial Statements.
††	Affiliated Company.
(a)	Rate shown reflects the 7-day yield as of June 30, 2017.

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of
	Net Assets
Debt Fund		32.3	%
Money Market Fund		21.0
Total Investments		53.3
Other Assets in Excess of Liabilities		46.7
Net Assets		100.0	%

Futures contracts outstanding as of June 30, 2017:

Type	Broker	Expiration Date	Number of Contracts			Value at Trade Date			Value at June 30, 2017			Unrealized Appreciation (Depreciation)
Gold 100 Oz.	Interactive Brokers LLC	August 2017		123		$	15,483,210		$	15,280,290		$	(202,920	)
Japanese Yen Currency	Interactive Brokers LLC	September 2017		(136	)		(15,408,396	)		(15,147,000	)		261,396
												$	58,476

Cash posted as collateral from broker for futures contracts was $7,252,343 at June 30, 2017.

See accompanying Notes to Financial Statements.

ADVISORSHARES KIM KOREA EQUITY ETF

Schedule of Investments

June 30, 2017

Investments	Shares		Value
COMMON STOCKS — 98.3%

Advertising — 2.6%
Innocean Worldwide, Inc. (South Korea)		4,559	$	254,219

Agriculture — 0.7%
Easy Bio, Inc. (South Korea)		12,349		72,638

Airlines — 2.4%
Hanjin Kal Corp. (South Korea)*		10,262		237,681

Apparel — 1.9%
Handsome Co. Ltd. (South Korea)		6,773		193,573

Auto Manufacturers — 3.9%
Hyundai Motor Co. (South Korea)		2,754		383,921

Auto Parts & Equipment — 1.7%
Halla Holdings Corp. (South Korea)		518		29,066
Hankook Tire Co. Ltd. (South Korea)		1,068		59,367
Hyundai Mobis Co. Ltd. (South Korea)		367		80,190
Total Auto Parts & Equipment				168,623

Banks — 1.5%
Industrial Bank of Korea (South Korea)		12,224		152,246

Beverages — 0.5%
Lotte Chilsung Beverage Co. Ltd. (South Korea)		31		46,440

Biotechnology — 0.7%
Samsung Biologics Co. Ltd. (South Korea)*^‡		74		18,886
Seegene, Inc. (South Korea)*		1,503		49,590
Total Biotechnology				68,476

Chemicals — 5.9%
Kumho Petrochemical Co. Ltd. (South Korea)		1,510		97,002
LG Chem Ltd. (South Korea)		657		167,100
Lotte Chemical Corp. (South Korea)		1,065		320,203
Total Chemicals				584,305

Commercial Services — 0.2%
AJ Rent A Car Co. Ltd. (South Korea)*		1,893		20,847

Computers — 2.6%
Samsung SDS Co. Ltd. (South Korea)		388		62,567
SK Holdings Co. Ltd. (South Korea)		795		193,165
Total Computers				255,732

Investments	Shares		Value
COMMON STOCKS (continued)

Cosmetics/Personal Care — 0.9%
Amorepacific Corp. (South Korea)		220	$	58,454
Korea Kolmar Co. Ltd. (South Korea)		154		9,718
LG Household & Health Care Ltd. (South Korea)		24		20,850
Total Cosmetics/Personal Care				89,022

Distribution/Wholesale — 3.8%
Hanwha Corp. (South Korea)		2,900		120,142
Kolon Corp. (South Korea)		561		40,206
LG Corp. (South Korea)		2,558		172,821
SK Networks Co. Ltd. (South Korea)		8,196		44,771
Total Distribution/Wholesale				377,940

Diversified Financial Services — 5.2%
DGB Financial Group, Inc. (South Korea)		7,286		75,143
KB Financial Group, Inc. (South Korea)		6,681		336,926
KIWOOM Securities Co. Ltd. (South Korea)		1,353		110,449
Total Diversified Financial Services				522,518

Electrical Components & Equipment — 1.7%
LG Electronics, Inc. (South Korea)		529		37,081
LS Corp. (South Korea)		2,083		132,719
Total Electrical Components & Equipment				169,800

Electronics — 1.5%
LG Display Co. Ltd. (South Korea)		3,347		108,529
Samsung Electro-Mechanics Co. Ltd. (South Korea)		449		40,028
Total Electronics				148,557

Engineering & Construction — 2.7%
Daelim Industrial Co. Ltd. (South Korea)		2,039		158,608
Daewoo Engineering & Construction Co. Ltd. (South Korea)*		4,020		26,632
Hyundai Development Co. – Engineering & Construction (South Korea)		710		29,135
Hyundai Engineering & Construction Co. Ltd. (South Korea)		1,365		54,939
Total Engineering & Construction				269,314

Food — 3.9%
CJ CheilJedang Corp. (South Korea)		655		206,950

See accompanying Notes to Financial Statements.

ADVISORSHARES KIM KOREA EQUITY ETF

Schedule of Investments (continued)

June 30, 2017

Investments	Shares		Value
COMMON STOCKS (continued)

Food (continued)
Hyundai Greenfood Co. Ltd. (South Korea)		3,663	$	56,667
NUTRIBIOTECH Co. Ltd. (South Korea)*		2,299		42,096
Orion Corp. (South Korea)		123		85,788
Total Food				391,501

Gas — 1.5%
Korea Gas Corp. (South Korea)*		2,843		132,192
SK Chemicals Co. Ltd. (South Korea)		317		20,392
Total Gas				152,584

Healthcare – Products — 1.5%
Interojo Co. Ltd. (South Korea)		1,414		43,749
i-SENS, Inc. (South Korea)		805		19,348
Value Added Technologies Co. Ltd. (South Korea)		753		18,395
Vieworks Co. Ltd. (South Korea)		1,369		68,800
Total Healthcare – Products				150,292

Holding Companies – Diversified — 1.0%
CJ Corp. (South Korea)		608		100,700

Insurance — 1.2%
Samsung Life Insurance Co. Ltd. (South Korea)		1,199		122,609

Internet — 3.4%
MDS Technology Co. Ltd. (South Korea)		3,090		54,014
NAVER Corp. (South Korea)		383		280,517
Total Internet				334,531

Iron/Steel — 3.8%
POSCO (South Korea)		1,528		383,285

Leisure Time — 1.0%
Hana Tour Service, Inc. (South Korea)		1,228		98,206

Machinery – Diversified — 3.0%
Hyundai Robotics Co. Ltd. (South Korea)*		544		183,766
SFA Engineering Corp. (South Korea)		2,802		110,082
Total Machinery – Diversified				293,848

Media — 0.6%
CJ E&M Corp. (South Korea)		878		58,168

Investments	Shares		Value
COMMON STOCKS (continued)

Miscellaneous Manufacturing — 1.4%
Doosan Corp. (South Korea)		1,302	$	135,418

Oil & Gas — 3.0%
GS Holdings Corp. (South Korea)		1,444		86,073
S-Oil Corp. (South Korea)		2,611		216,338
Total Oil & Gas				302,411

Pharmaceuticals — 2.0%
Dong-A Socio Holdings Co. Ltd. (South Korea)		433		51,280
Green Cross Corp. (South Korea)		316		48,195
Hanmi Pharm Co. Ltd. (South Korea)*		82		26,732
Yuhan Corp. (South Korea)		328		70,522
Total Pharmaceuticals				196,729

Retail — 4.4%
E-MART, Inc. (South Korea)		240		49,189
GS Retail Co. Ltd. (South Korea)		964		43,476
Lotte Shopping Co. Ltd. (South Korea)		615		163,136
Samsung C&T Corp. (South Korea)		1,408		182,130
Total Retail				437,931

Semiconductors — 22.9%
Samsung Electronics Co. Ltd. (South Korea)		939		1,950,796
Silicon Works Co. Ltd. (South Korea)		1,431		43,900
SK Hynix, Inc. (South Korea)		3,839		226,149
TES Co. Ltd. (South Korea)		2,479		61,208
Total Semiconductors				2,282,053

Shipbuilding — 0.5%
Hyundai Heavy Industries Co. Ltd. (South Korea)*		313		48,284

Software — 0.2%
Netmarble Games Corp. (South Korea)*^‡		160		21,675

Telecommunications — 1.3%
SK Telecom Co. Ltd. (South Korea)		547		127,170

Transportation — 1.3%
Hyundai Glovis Co. Ltd. (South Korea)		758		104,013

See accompanying Notes to Financial Statements.

ADVISORSHARES KIM KOREA EQUITY ETF

Schedule of Investments (continued)

June 30, 2017

Investments	Shares		Value
COMMON STOCKS (continued)

Transportation (continued)
Korea Line Corp. (South Korea)*		882	$	28,291
Total Transportation				132,304
Total Common Stocks
(Cost $8,381,919)				9,785,551

Total Investments — 98.3%
(Cost $8,381,919)				9,785,551
Other Assets in Excess of Liabilities — 1.7%				174,127
Net Assets — 100.0%			$	9,959,678

*	Non-income producing security.
‡	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.

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of
	Net Assets
Advertising		2.6	%
Agriculture		0.7
Airlines		2.4
Apparel		1.9
Auto Manufacturers		3.9
Auto Parts & Equipment		1.7
Banks		1.5
Beverages		0.5
Biotechnology		0.7
Chemicals		5.9
Commercial Services		0.2
Computers		2.6
Cosmetics/Personal Care		0.9
Distribution/Wholesale		3.8
Diversified Financial Services		5.2
Electrical Components & Equipment		1.7
Electronics		1.5
Engineering & Construction		2.7

SUMMARY OF SCHEDULE OF INVESTMENTS (continued)

	% of
	Net Assets
Food		3.9	%
Gas		1.5
Healthcare – Products		1.5
Holding Companies – Diversified		1.0
Insurance		1.2
Internet		3.4
Iron/Steel		3.8
Leisure Time		1.0
Machinery – Diversified		3.0
Media		0.6
Miscellaneous Manufacturing		1.4
Oil & Gas		3.0
Pharmaceuticals		2.0
Retail		4.4
Semiconductors		22.9
Shipbuilding		0.5
Software		0.2
Telecommunications		1.3
Transportation		1.3
Total Investments		98.3
Other Assets in Excess of Liabilities		1.7
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

ADVISORSHARES MADRONA DOMESTIC ETF

Schedule of Investments

June 30, 2017

Investments	Shares		Value
COMMON STOCKS — 97.6%

Advertising — 0.5%
Interpublic Group of Cos., Inc. (The)		3,543	$	87,158
Omnicom Group, Inc.		469		38,880
Total Advertising				126,038

Aerospace/Defense — 1.7%
Arconic, Inc.		5,278		119,547
Boeing Co. (The)		456		90,174
General Dynamics Corp.		71		14,065
Harris Corp.		531		57,921
L3 Technologies, Inc.		85		14,202
Lockheed Martin Corp.		50		13,880
Northrop Grumman Corp.		52		13,349
Raytheon Co.		79		12,757
Rockwell Collins, Inc.		591		62,102
TransDigm Group, Inc.^(a)		150		40,331
United Technologies Corp.		165		20,148
Total Aerospace/Defense				458,476

Agriculture — 0.8%
Altria Group, Inc.		180		13,405
Archer-Daniels-Midland Co.		2,988		123,644
Philip Morris International, Inc.		447		52,500
Reynolds American, Inc.		208		13,528
Total Agriculture				203,077

Airlines — 1.4%
Alaska Air Group, Inc.		1,157		103,852
Delta Air Lines, Inc.		2,373		127,525
Southwest Airlines Co.		1,759		109,304
United Continental Holdings, Inc.*		435		32,734
Total Airlines				373,415

Apparel — 1.1%
Hanesbrands, Inc.^(a)		6,574		152,254
Michael Kors Holdings Ltd.*		362		13,122
NIKE, Inc., Class B		783		46,197
Ralph Lauren Corp.		297		21,919
Under Armour, Inc., Class C*^(a)		661		13,326
VF Corp.		723		41,645
Total Apparel				288,463

Auto Manufacturers — 1.4%
Ford Motor Co.		12,268		137,279
General Motors Co.		4,244		148,243
PACCAR, Inc.		1,339		88,427
Total Auto Manufacturers				373,949

Auto Parts & Equipment — 1.3%
BorgWarner, Inc.		1,730		73,283

Investments	Shares		Value
COMMON STOCKS (continued)

Auto Parts & Equipment (continued)
Delphi Automotive PLC		1,467	$	128,583
Goodyear Tire & Rubber Co. (The)		4,412		154,243
Total Auto Parts & Equipment				356,109

Banks — 6.1%
Bank of America Corp.		2,442		59,243
Bank of New York Mellon Corp. (The)		1,401		71,479
BB&T Corp.		852		38,689
Capital One Financial Corp.		1,188		98,153
Citigroup, Inc.		848		56,714
Citizens Financial Group, Inc.		3,897		139,045
Comerica, Inc.		2,151		157,539
Fifth Third Bancorp		1,525		39,589
Goldman Sachs Group, Inc. (The)		644		142,904
Huntington Bancshares, Inc.		5,517		74,590
JPMorgan Chase & Co.		267		24,404
KeyCorp		2,722		51,010
M&T Bank Corp.		173		28,017
Morgan Stanley		2,565		114,296
Northern Trust Corp.		688		66,881
PNC Financial Services Group, Inc. (The)		481		60,062
Regions Financial Corp.		7,116		104,178
State Street Corp.		1,072		96,191
SunTrust Banks, Inc.		796		45,149
US Bancorp		384		19,937
Wells Fargo & Co.		1,253		69,429
Zions Bancorporation		1,599		70,212
Total Banks				1,627,711

Beverages — 1.2%
Brown-Forman Corp., Class B		294		14,288
Coca-Cola Co. (The)		333		14,935
Constellation Brands, Inc., Class A		416		80,592
Dr Pepper Snapple Group, Inc.		281		25,602
Molson Coors Brewing Co., Class B		1,336		115,350
Monster Beverage Corp.*		955		47,444
PepsiCo, Inc.		124		14,321
Total Beverages				312,532

Biotechnology — 1.4%
Alexion Pharmaceuticals, Inc.*		852		103,663
Amgen, Inc.		132		22,734
Biogen, Inc.*		166		45,046
Celgene Corp.*		1,031		133,896
Illumina, Inc.*		71		12,320

See accompanying Notes to Financial Statements.

ADVISORSHARES MADRONA DOMESTIC ETF

Schedule of Investments (continued)

June 30, 2017

Investments	Shares		Value
COMMON STOCKS (continued)

Biotechnology (continued)
Regeneron Pharmaceuticals, Inc.*		76	$	37,326
Vertex Pharmaceuticals, Inc.*		201		25,903
Total Biotechnology				380,888

Building Materials — 1.4%
Fortune Brands Home & Security, Inc.		728		47,495
Johnson Controls International PLC		2,201		95,435
Martin Marietta Materials, Inc.		256		56,981
Masco Corp.		2,076		79,324
Vulcan Materials Co.		824		104,384
Total Building Materials				383,619

Chemicals — 1.6%
Air Products & Chemicals, Inc.		227		32,475
Albemarle Corp.		233		24,591
Dow Chemical Co. (The)		271		17,092
E.I. du Pont de Nemours & Co.		165		13,317
Eastman Chemical Co.		819		68,788
FMC Corp.		234		17,094
International Flavors & Fragrances, Inc.		102		13,770
LyondellBasell Industries NV, Class A		1,284		108,357
Monsanto Co.		117		13,848
Mosaic Co. (The)		606		13,835
PPG Industries, Inc.		320		35,187
Praxair, Inc.		228		30,221
Sherwin-Williams Co. (The)		98		34,394
Total Chemicals				422,969

Commercial Services — 3.3%
Automatic Data Processing, Inc.		220		22,541
Cintas Corp.		223		28,107
Ecolab, Inc.		222		29,470
Equifax, Inc.		282		38,752
Gartner, Inc.*		292		36,065
Global Payments, Inc.		153		13,819
H&R Block, Inc.		1,848		57,122
IHS Markit Ltd.*		519		22,857
Moody's Corp.		205		24,944
Nielsen Holdings PLC		1,500		57,990
PayPal Holdings, Inc.*		926		49,698
Quanta Services, Inc.*		3,018		99,353
Robert Half International, Inc.		1,341		64,274
S&P Global, Inc.		333		48,615

Investments	Shares		Value
COMMON STOCKS (continued)

Commercial Services (continued)
Total System Services, Inc.		1,061	$	61,803
United Rentals, Inc.*		1,236		139,310
Verisk Analytics, Inc.*		203		17,127
Western Union Co. (The)		3,450		65,723
Total Commercial Services				877,570

Computers — 2.9%
Accenture PLC, Class A		348		43,041
Apple, Inc.		368		52,999
Cognizant Technology Solutions Corp., Class A		1,060		70,384
CSRA, Inc.		1,767		56,102
DXC Technology Co.		1,998		153,286
Hewlett Packard Enterprise Co.		888		14,732
HP, Inc.		806		14,089
International Business Machines Corp.		88		13,537
NetApp, Inc.		1,852		74,173
Seagate Technology PLC		3,669		142,174
Western Digital Corp.		1,710		151,506
Total Computers				786,023

Cosmetics/Personal Care — 0.3%
Colgate-Palmolive Co.		178		13,195
Coty, Inc., Class A		2,237		41,966
Estee Lauder Cos., Inc. (The), Class A		260		24,955
Procter & Gamble Co. (The)		148		12,898
Total Cosmetics/Personal Care				93,014

Distribution/Wholesale — 0.7%
Fastenal Co.		1,640		71,389
LKQ Corp.*		2,140		70,513
W.W. Grainger, Inc.		261		47,119
Total Distribution/Wholesale				189,021

Diversified Financial Services — 6.7%
Affiliated Managers Group, Inc.		887		147,118
Alliance Data Systems Corp.		468		120,131
American Express Co.		802		67,560
Ameriprise Financial, Inc.		1,133		144,220
BlackRock, Inc.		148		62,517
CBOE Holdings, Inc.		1,506		137,648
Charles Schwab Corp. (The)		1,974		84,803
CME Group, Inc.		262		32,813
Discover Financial Services		1,856		115,425
ETRADE Financial Corp.		1,753		66,667

See accompanying Notes to Financial Statements.

ADVISORSHARES MADRONA DOMESTIC ETF

Schedule of Investments (continued)

June 30, 2017

Investments	Shares		Value
COMMON STOCKS (continued)

Diversified Financial Services (continued)
Franklin Resources, Inc.		1,326	$	59,391
Intercontinental Exchange, Inc.		945		62,294
Invesco Ltd.		3,268		115,001
Mastercard, Inc., Class A		420		51,009
Nasdaq, Inc.		750		53,617
Navient Corp.		6,615		110,140
Raymond James Financial, Inc.		1,717		137,738
Synchrony Financial		3,393		101,179
T. Rowe Price Group, Inc.		977		72,503
Visa, Inc., Class A		638		59,832
Total Diversified Financial Services				1,801,606

Electric — 1.4%
AES Corp. (The)		3,754		41,707
Alliant Energy Corp.		351		14,100
Ameren Corp.		254		13,886
American Electric Power Co., Inc.		213		14,797
CenterPoint Energy, Inc.		506		13,854
CMS Energy Corp.		284		13,135
Consolidated Edison, Inc.		185		14,952
Dominion Energy, Inc.^(a)		190		14,560
DTE Energy Co.		135		14,282
Duke Energy Corp.		178		14,879
Edison International		184		14,387
Entergy Corp.		164		12,590
Eversource Energy		231		14,024
Exelon Corp.		360		12,985
FirstEnergy Corp.		515		15,017
NextEra Energy, Inc.		98		13,733
PG&E Corp.		223		14,801
Pinnacle West Capital Corp.		168		14,307
PPL Corp.		371		14,343
Public Service Enterprise Group, Inc.		329		14,150
SCANA Corp.		198		13,268
Southern Co. (The)		298		14,268
WEC Energy Group, Inc.		236		14,486
Xcel Energy, Inc.		314		14,406
Total Electric				366,917

Electrical Components & Equipment — 0.6%
Acuity Brands, Inc.^(a)		666		135,385
AMETEK, Inc.		216		13,083
Emerson Electric Co.		242		14,428
Total Electrical Components & Equipment				162,896

Investments	Shares		Value
COMMON STOCKS (continued)

Electronics — 1.2%
Agilent Technologies, Inc.		247	$	14,650
Allegion PLC		669		54,269
Amphenol Corp., Class A		193		14,247
Corning, Inc.		1,057		31,763
FLIR Systems, Inc.		1,284		44,504
Fortive Corp.		278		17,611
Garmin Ltd.^(a)		426		21,739
Honeywell International, Inc.		236		31,456
Mettler-Toledo International, Inc.*		22		12,948
PerkinElmer, Inc.		232		15,809
TE Connectivity Ltd.		490		38,553
Waters Corp.*		73		13,420
Total Electronics				310,969

Engineering & Construction — 0.4%
Fluor Corp.		1,108		50,724
Jacobs Engineering Group, Inc.		1,279		69,565
Total Engineering & Construction				120,289

Environmental Control — 0.3%
Republic Services, Inc.		212		13,511
Stericycle, Inc.*		652		49,761
Waste Management, Inc.		290		21,271
Total Environmental Control				84,543

Food — 1.8%
Campbell Soup Co.		273		14,237
Conagra Brands, Inc.		346		12,373
General Mills, Inc.		533		29,528
Hershey Co. (The)		121		12,992
Hormel Foods Corp.		370		12,621
JM Smucker Co. (The)		300		35,499
Kellogg Co.		200		13,892
Kraft Heinz Co. (The)		210		17,984
Kroger Co. (The)		3,195		74,507
McCormick & Co., Inc.		131		12,774
Mondelez International, Inc., Class A		563		24,316
Safeway, Inc PDC, LLC CVR*^(b)		447		0
Safeway, Inc SCRP. CVR*^(b)		447		0
Sysco Corp.		954		48,015
Tyson Foods, Inc., Class A		2,509		157,139
Whole Foods Market, Inc.		354		14,907
Total Food				480,784

Forest Products & Paper — 0.3%
International Paper Co.		1,263		71,498

See accompanying Notes to Financial Statements.

ADVISORSHARES MADRONA DOMESTIC ETF

Schedule of Investments (continued)

June 30, 2017

Investments	Shares		Value
COMMON STOCKS (continued)

Gas — 0.1%
NiSource, Inc.		529	$	13,415
Sempra Energy		118		13,305
Total Gas				26,720

Hand/Machine Tools — 0.4%
Snap-on, Inc.		465		73,470
Stanley Black & Decker, Inc.		221		31,101
Total Hand/Machine Tools				104,571

Healthcare – Products — 2.3%
Abbott Laboratories		1,079		52,450
Align Technology, Inc.*		221		33,177
Baxter International, Inc.		608		36,808
Becton Dickinson and Co.		184		35,900
Boston Scientific Corp.*		1,468		40,693
C.R. Bard, Inc.		48		15,173
Cooper Cos., Inc. (The)		113		27,055
Danaher Corp.		575		48,524
DENTSPLY SIRONA, Inc.		415		26,909
Edwards Lifesciences Corp.*		257		30,388
Henry Schein, Inc.*		73		13,360
Hologic, Inc.*		670		30,405
IDEXX Laboratories, Inc.*		87		14,044
Intuitive Surgical, Inc.*		15		14,031
Medtronic PLC		223		19,791
Patterson Cos., Inc.^(a)		312		14,648
Stryker Corp.		171		23,731
Thermo Fisher Scientific, Inc.		354		61,762
Varian Medical Systems, Inc.*		135		13,931
Zimmer Biomet Holdings, Inc.		467		59,963
Total Healthcare – Products				612,743

Healthcare – Services — 2.6%
Aetna, Inc.		353		53,596
Anthem, Inc.		305		57,380
Centene Corp.*		844		67,419
Cigna Corp.		399		66,789
DaVita, Inc.*		534		34,582
Envision Healthcare Corp.*		807		50,575
HCA Healthcare, Inc.*		1,253		109,261
Humana, Inc.		255		61,358
Laboratory Corp. of America Holdings*		332		51,174
Quest Diagnostics, Inc.		190		21,120
UnitedHealth Group, Inc.		342		63,414

Investments	Shares		Value
COMMON STOCKS (continued)

Healthcare – Services (continued)
Universal Health Services, Inc., Class B		527	$	64,336
Total Healthcare – Services				701,004

Holding Companies – Diversified — 0.3%
Leucadia National Corp.		3,579		93,627

Home Builders — 1.4%
D.R. Horton, Inc.		3,486		120,511
Lennar Corp., Class A		1,742		92,884
PulteGroup, Inc.		6,385		156,624
Total Home Builders				370,019

Home Furnishings — 0.7%
Leggett & Platt, Inc.		661		34,723
Whirlpool Corp.		736		141,032
Total Home Furnishings				175,755

Household Products/Wares — 0.3%
Avery Dennison Corp.		448		39,590
Church & Dwight Co., Inc.		262		13,593
Clorox Co. (The)		106		14,123
Kimberly-Clark Corp.		104		13,427
Total Household Products/Wares				80,733

Housewares — 0.3%
Newell Brands, Inc.		1,269		68,044

Insurance — 6.3%
Aflac, Inc.		264		20,508
Allstate Corp. (The)		830		73,405
American International Group, Inc.		1,496		93,530
Aon PLC		375		49,856
Arthur J Gallagher & Co.		838		47,976
Assurant, Inc.		1,390		144,129
Berkshire Hathaway, Inc., Class B*		141		23,881
Chubb Ltd.		251		36,490
Everest Re Group Ltd.		315		80,196
Hartford Financial Services Group, Inc. (The)		1,941		102,038
Lincoln National Corp.		1,571		106,168
Loews Corp.		3,040		142,302
Marsh & McLennan Cos., Inc.		607		47,322
MetLife, Inc.		2,396		131,636
Principal Financial Group, Inc.		1,035		66,313
Progressive Corp. (The)		1,549		68,295
Prudential Financial, Inc.		963		104,139
Torchmark Corp.		300		22,950

See accompanying Notes to Financial Statements.

ADVISORSHARES MADRONA DOMESTIC ETF

Schedule of Investments (continued)

June 30, 2017

Investments	Shares		Value
COMMON STOCKS (continued)

Insurance (continued)
Travelers Cos., Inc. (The)		332	$	42,008
Unum Group		1,311		61,132
Willis Towers Watson PLC		379		55,129
XL Group Ltd (Bermuda)		3,647		159,739
Total Insurance				1,679,142

Internet — 2.3%
Alphabet, Inc., Class A*		70		65,077
Alphabet, Inc., Class C*		74		67,246
Amazon.com, Inc.*		15		14,520
eBay, Inc.*		513		17,914
Expedia, Inc.		474		70,602
F5 Networks, Inc.*		607		77,125
Facebook, Inc., Class A*		769		116,104
Netflix, Inc.*		97		14,493
Priceline Group, Inc. (The)*		42		78,562
Symantec Corp.		2,036		57,517
TripAdvisor, Inc.*		434		16,579
VeriSign, Inc.*^(a)		146		13,572
Total Internet				609,311

Iron/Steel — 0.5%
Nucor Corp.		2,330		134,837

Leisure Time — 1.3%
Carnival Corp.		1,533		100,519
Harley-Davidson, Inc.		1,761		95,129
Royal Caribbean Cruises Ltd.		1,322		144,402
Total Leisure Time				340,050

Lodging — 0.5%
Hilton Worldwide Holdings, Inc.		207		12,803
Marriott International, Inc., Class A		286		28,688
Wyndham Worldwide Corp.		705		70,789
Wynn Resorts Ltd.		106		14,217
Total Lodging				126,497

Machinery – Construction & Mining — 0.1%
Caterpillar, Inc.		131		14,077

Machinery – Diversified — 1.0%
Cummins, Inc.		447		72,512
Deere & Co.		381		47,088
Flowserve Corp.		748		34,730
Rockwell Automation, Inc.		137		22,188
Roper Technologies, Inc.		141		32,646
Xylem, Inc.		1,056		58,534
Total Machinery – Diversified				267,698

Investments	Shares		Value
COMMON STOCKS (continued)

Media — 3.3%
CBS Corp., Class B		2,020	$	128,836
Charter Communications, Inc., Class A*		86		28,969
Comcast Corp., Class A		1,283		49,934
Discovery Communications, Inc., Class A*^(a)		5,199		134,290
Discovery Communications, Inc., Class C*		5,464		137,748
News Corp., Class A		1,013		13,878
News Corp., Class B		933		13,202
Scripps Networks Interactive, Inc., Class A		1,140		77,873
Time Warner, Inc.		657		65,969
Twenty-First Century Fox, Inc., Class A		3,114		88,251
Twenty-First Century Fox, Inc., Class B		3,219		89,714
Viacom, Inc., Class B		423		14,200
Walt Disney Co. (The)		401		42,606
Total Media				885,470

Mining — 0.6%
Freeport-McMoRan, Inc.*		13,597		163,300

Miscellaneous Manufacturing — 1.6%
3M Co.		89		18,529
Dover Corp.		657		52,704
Eaton Corp. PLC		842		65,533
General Electric Co.		2,424		65,472
Illinois Tool Works, Inc.		103		14,755
Ingersoll-Rand PLC		487		44,507
Parker-Hannifin Corp.		419		66,965
Pentair PLC (United Kingdom)		913		60,751
Textron, Inc.		1,062		50,020
Total Miscellaneous Manufacturing				439,236

Office/Business Equipment — 0.5%
Xerox Corp.		4,528		130,089

Oil & Gas — 5.9%
Cabot Oil & Gas Corp.		3,642		91,341
Chesapeake Energy Corp.*^(a)		33,732		167,648
Chevron Corp.		1,373		143,245
Cimarex Energy Co.		1,606		150,980
Concho Resources, Inc.*		129		15,678
ConocoPhillips		350		15,386
Devon Energy Corp.		5,036		161,001

See accompanying Notes to Financial Statements.

ADVISORSHARES MADRONA DOMESTIC ETF

Schedule of Investments (continued)

June 30, 2017

Investments	Shares		Value
COMMON STOCKS (continued)

Oil & Gas (continued)
EQT Corp.^(a)		226	$	13,241
Exxon Mobil Corp.		532		42,948
Marathon Petroleum Corp.		2,946		154,164
Newfield Exploration Co.*		4,712		134,104
Occidental Petroleum Corp.		922		55,200
Phillips 66		1,820		150,496
Range Resources Corp.		678		15,709
Tesoro Corp.		1,656		155,002
Valero Energy Corp.		1,738		117,246
Total Oil & Gas				1,583,389

Oil & Gas Services — 0.8%
Baker Hughes, Inc.		279		15,208
Halliburton Co.		2,942		125,653
Schlumberger Ltd.		1,280		84,275
Total Oil & Gas Services				225,136

Packaging & Containers — 0.6%
Ball Corp.		1,668		70,406
Sealed Air Corp.		1,463		65,484
WestRock Co.		338		19,151
Total Packaging & Containers				155,041

Pharmaceuticals — 3.6%
AbbVie, Inc.		1,522		110,360
Allergan PLC		370		89,943
AmerisourceBergen Corp.^(a)		526		49,723
Bristol-Myers Squibb Co.		845		47,084
Cardinal Health, Inc.		583		45,427
Eli Lilly & Co.		711		58,515
Express Scripts Holding Co.*		2,250		143,640
Johnson & Johnson		102		13,494
Mallinckrodt PLC*		2,259		101,226
McKesson Corp.		332		54,627
Merck & Co., Inc.		279		17,881
Mylan NV*		3,274		127,097
Perrigo Co. PLC		517		39,044
Pfizer, Inc.		853		28,652
Zoetis, Inc.		443		27,634
Total Pharmaceuticals				954,347

Pipelines — 0.5%
Kinder Morgan, Inc.		789		15,117
ONEOK, Inc.^(a)		914		47,674
Williams Cos., Inc. (The)		1,970		59,652
Total Pipelines				122,443

Investments	Shares		Value
COMMON STOCKS (continued)

Real Estate — 0.3%
CBRE Group, Inc., Class A*		2,428	$	88,379

REITS — 1.3%
Alexandria Real Estate Equities, Inc.		131		15,782
American Tower Corp.		304		40,225
AvalonBay Communities, Inc.		81		15,566
Boston Properties, Inc.		125		15,377
Crown Castle International Corp.		153		15,327
Equinix, Inc.		35		15,021
Equity Residential		234		15,404
Extra Space Storage, Inc.		193		15,054
Federal Realty Investment Trust		122		15,420
GGP, Inc.		652		15,361
Host Hotels & Resorts, Inc.		826		15,091
Iron Mountain, Inc.		387		13,297
Kimco Realty Corp.		828		15,194
Mid-America Apartment Communities, Inc.		142		14,964
Prologis, Inc.		269		15,774
Public Storage		73		15,223
Regency Centers Corp.		246		15,409
Simon Property Group, Inc.		87		14,073
Ventas, Inc.		220		15,286
Vornado Realty Trust		139		13,052
Weyerhaeuser Co.		462		15,477
Total REITS				341,377

Retail — 8.1%
Advance Auto Parts, Inc.		571		66,573
AutoNation, Inc.*^(a)		2,974		125,384
AutoZone, Inc.*		166		94,696
Bed Bath & Beyond, Inc.		2,824		85,850
Best Buy Co., Inc.		1,520		87,142
CarMax, Inc.*^(a)		1,201		75,735
Chipotle Mexican Grill, Inc.*^(a)		40		16,644
Coach, Inc.		1,004		47,529
Costco Wholesale Corp.		87		13,914
CVS Health Corp.		1,016		81,747
Darden Restaurants, Inc.		369		33,372
Dollar General Corp.		880		63,439
Dollar Tree, Inc.*		1,898		132,708
Foot Locker, Inc.		2,411		118,814
Gap, Inc. (The)		2,892		63,595
Genuine Parts Co.		183		16,975
Home Depot, Inc. (The)		363		55,684

See accompanying Notes to Financial Statements.

ADVISORSHARES MADRONA DOMESTIC ETF

Schedule of Investments (continued)

June 30, 2017

Investments	Shares		Value
COMMON STOCKS (continued)

Retail (continued)
Kohl’s Corp.		1,623	$	62,761
L Brands, Inc.		1,162		62,620
Lowe’s Cos., Inc.		1,364		105,751
Macy’s, Inc.		654		15,199
McDonald's Corp.		93		14,244
Nordstrom, Inc.^(a)		277		13,249
O’Reilly Automotive, Inc.*^(a)		348		76,122
PVH Corp.		411		47,059
Ross Stores, Inc.		930		53,689
Signet Jewelers Ltd.^(a)		1,180		74,623
Staples, Inc.		1,495		15,055
Starbucks Corp.		1,076		62,742
Tiffany & Co.		278		26,096
TJX Cos., Inc. (The)		956		68,995
Tractor Supply Co.		2,267		122,894
Ulta Beauty, Inc.*		215		61,778
Walgreens Boots Alliance, Inc.		890		69,696
Wal-Mart Stores, Inc.		173		13,093
Yum! Brands, Inc.		416		30,684
Total Retail				2,176,151

Savings & Loans — 0.1%
People’s United Financial, Inc.		889		15,700

Semiconductors — 4.8%
Analog Devices, Inc.		822		63,952
Applied Materials, Inc.		3,550		146,650
Broadcom Ltd.		512		119,322
Intel Corp.		1,847		62,318
KLA-Tencor Corp.		1,154		105,602
Lam Research Corp.		997		141,006
Microchip Technology, Inc.		1,733		133,753
Micron Technology, Inc.*		5,408		161,483
NVIDIA Corp.		94		13,589
Qorvo, Inc.*		2,046		129,553
QUALCOMM, Inc.		967		53,398
Skyworks Solutions, Inc.		1,189		114,084
Texas Instruments, Inc.		437		33,618
Xilinx, Inc.		211		13,571
Total Semiconductors				1,291,899

Software — 2.4%
Activision Blizzard, Inc.		1,126		64,824
Adobe Systems, Inc.*		390		55,162
Akamai Technologies, Inc.*		1,252		62,362

Investments	Shares		Value
COMMON STOCKS (continued)

Software (continued)
ANSYS, Inc.*		108	$	13,141
CA, Inc.		436		15,029
Cerner Corp.*		616		40,946
Citrix Systems, Inc.*		702		55,865
Electronic Arts, Inc.*		409		43,239
Fidelity National Information Services, Inc.		652		55,681
Fiserv, Inc.*		355		43,431
Intuit, Inc.		369		49,007
Microsoft Corp.		382		26,331
Oracle Corp.		879		44,073
Paychex, Inc.		237		13,495
Red Hat, Inc.*		264		25,278
salesforce.com, Inc.*		234		20,264
Synopsys, Inc.*		177		12,909
Total Software				641,037

Telecommunications — 0.8%
AT&T, Inc.		349		13,168
Cisco Systems, Inc.		1,605		50,236
Juniper Networks, Inc.		4,037		112,552
Level 3 Communications, Inc.*		235		13,935
Motorola Solutions, Inc.		148		12,838
Verizon Communications, Inc.		320		14,291
Total Telecommunications				217,020

Textiles — 0.1%
Mohawk Industries, Inc.*		115		27,794

Toys/Games/Hobbies — 0.4%
Hasbro, Inc.		342		38,137
Mattel, Inc.		2,893		62,286
Total Toys/Games/Hobbies				100,423

Transportation — 1.7%
C.H. Robinson Worldwide, Inc.		231		15,865
CSX Corp.		846		46,158
Expeditors International of Washington, Inc.		736		41,569
FedEx Corp.		479		104,101
JB Hunt Transport Services, Inc.		648		59,214
Kansas City Southern		526		55,046
Norfolk Southern Corp.		443		53,913
Union Pacific Corp.		485		52,821
United Parcel Service, Inc., Class B		338		37,380
Total Transportation				466,067

See accompanying Notes to Financial Statements.

ADVISORSHARES MADRONA DOMESTIC ETF

Schedule of Investments (continued)

June 30, 2017

Investments	Shares/ Principal		Value
COMMON STOCKS (continued)

Water — 0.0%^**
American Water Works Co., Inc.		167	$	13,018

Total Common Stocks
(Cost $23,215,872)				26,094,520
MONEY MARKET FUND — 2.6%
BlackRock Liquidity Funds FedFund Portfolio, 0.86%^(c)
(Cost $693,049)		693,049		693,049

REPURCHASE AGREEMENTS — 2.6%^(d)
BNP Paribas Securities Corp., dated 06/30/17, due 07/03/17, 1.10%, total to be received $29,667, (collateralized by various U.S. Government Agency Obligations, 0.00% – 9.00%, 07/28/17 – 09/09/49, totaling $30,150)	$	29,664		29,664
Daiwa Capital Markets America, dated 06/30/17, due 07/03/17, 1.15%, total to be received $250,024, (collateralized by various U.S. Government Agency Obligations, 0.00% – 6.50%, 07/13/17 – 12/01/51, totaling $254,301)		250,000		250,000
HSBC Securities USA, Inc., dated 06/30/17, due 07/03/17, 1.06%, total to be received $36,111, (collateralized by various U.S. Government Agency Obligations, 0.00% – 7.25%, 07/15/17 – 01/15/37, totaling $36,780)		36,108		36,108
Nomura Securities International, Inc., dated 06/30/17, due 07/03/17, 1.13%, total to be received $250,024, (collateralized by various U.S. Government Agency Obligations, 0.00% – 9.50%, 07/10/17 – 06/20/67, totaling $254,297)		250,000		250,000

Investments	Principal		Value
REPURCHASE AGREEMENTS (continued)
RBC Dominion Securities, Inc., dated 06/30/17, due 07/03/17, 1.08%, total to be received $139,274, (collateralized by various U.S. Government Agency Obligations, 1.38% – 7.00%, 02/19/19 – 06/01/47, totaling $141,612)	$	139,261	$	139,261
Total Repurchase Agreements
(Cost $705,033)				705,033

Total Investments — 102.8%
(Cost $24,613,954)				27,492,602
Liabilities in Excess of Other Assets — (2.8%)				(756,222	)
Net Assets — 100.0%			$	26,736,380

CVR — Contingent Value Rights

PLC — Public Limited Company

REITS — Real Estate Investments Trusts

*	Non-income producing security.
**	Less than 0.05%.
(a)	All or a portion of security is on loan. The aggregate market value of the securities on loan is $1,093,300; the aggregate market value of the collateral held by the fund is $1,133,192. The aggregate market value of the collateral includes non-cash U.S. Treasury securities collateral having a value of $428,159.
(b)	Security fair valued as determined in good faith in accordance with the procedures established by the Board of Trustees.
(c)	Rate shown reflects the 7-day yield as of June 30, 2017.
(d)	Collateral received from brokers for securities lending was invested in these short-term investments.

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of
	Net Assets
Advertising		0.5	%
Aerospace/Defense		1.7
Agriculture		0.8
Airlines		1.4
Apparel		1.1
Auto Manufacturers		1.4

See accompanying Notes to Financial Statements.

ADVISORSHARES MADRONA DOMESTIC ETF

Schedule of Investments (continued)

June 30, 2017

SUMMARY OF SCHEDULE OF INVESTMENTS (continued)

	% of
	Net Assets
Auto Parts & Equipment		1.3	%
Banks		6.1
Beverages		1.2
Biotechnology		1.4
Building Materials		1.4
Chemicals		1.6
Commercial Services		3.3
Computers		2.9
Cosmetics/Personal Care		0.3
Distribution/Wholesale		0.7
Diversified Financial Services		6.7
Electric		1.4
Electrical Components & Equipment		0.6
Electronics		1.2
Engineering & Construction		0.4
Environmental Control		0.3
Food		1.8
Forest Products & Paper		0.3
Gas		0.1
Hand/Machine Tools		0.4
Healthcare – Products		2.3
Healthcare – Services		2.6
Holding Companies – Diversified		0.3
Home Builders		1.4
Home Furnishings		0.7
Household Products/Wares		0.3
Housewares		0.3
Insurance		6.3
Internet		2.3
Iron/Steel		0.5
Leisure Time		1.3
Lodging		0.5
Machinery – Construction & Mining		0.1
Machinery – Diversified		1.0
Media		3.3
Mining		0.6
Miscellaneous Manufacturing		1.6
Office/Business Equipment		0.5
Oil & Gas		5.9
Oil & Gas Services		0.8
Packaging & Containers		0.6
Pharmaceuticals		3.6

SUMMARY OF SCHEDULE OF INVESTMENTS (continued)

	% of
	Net Assets
Pipelines		0.5	%
Real Estate		0.3
REITS		1.3
Retail		8.1
Savings & Loans		0.1
Semiconductors		4.8
Software		2.4
Telecommunications		0.8
Textiles		0.1
Toys/Games/Hobbies		0.4
Transportation		1.7
Water		0.0	**
Money Market Fund		2.6
Repurchase Agreements		2.6
Total Investments		102.8
Liabilities in Excess of Other Assets		(2.8	)
Net Assets		100.0	%

Less than 0.05%.

See accompanying Notes to Financial Statements.

ADVISORSHARES MADRONA GLOBAL BOND ETF

Schedule of Investments

June 30, 2017

Investments	Shares		Value
EXCHANGE TRADED FUNDS — 98.7%

Asset Allocation Fund — 10.1%
SPDR Bloomberg Barclays Convertible Securities ETF		35,535	$	1,763,247

Debt Fund — 88.6%
AdvisorShares Peritus High Yield ETF^†		61,998		2,226,968
iShares iBoxx $ Investment Grade Corporate Bond ETF		18,851		2,271,734
PowerShares Emerging Markets Sovereign Debt Portfolio		35,242		1,031,533
PowerShares Financial Preferred Portfolio		105,129		2,007,964
PowerShares Fundamental Investment Grade Corporate Bond Portfolio^(a)		26,877		688,320
PowerShares International Corporate Bond Portfolio^(a)		20,574		540,479
PowerShares National AMT-Free Municipal Bond Portfolio^(a)		20,458		520,451
PowerShares Senior Loan Portfolio		58,287		1,348,761
PowerShares Taxable Municipal Portfolio^(a)		23,510		704,360
PowerShares Variable Rate Preferred Portfolio		20,229		529,191
SPDR Bloomberg Barclays High Yield Bond ETF		13,873		516,076
Vanguard Intermediate-Term Government Bond ETF^(a)		7,950		513,967
Vanguard Long-Term Government Bond ETF^(a)		4,620		356,110
Vanguard Mortgage-Backed Securities ETF^(a)		22,712		1,196,014
WisdomTree Emerging Markets Corporate Bond Fund		14,313		1,027,101
Total Debt Fund				15,479,029

Total Exchange Traded Funds
(Cost $16,998,360)				17,242,276

MONEY MARKET FUND — 1.6%
BlackRock Liquidity Funds FedFund Portfolio, 0.86%^(b)
(Cost $279,053)		279,053		279,053

Investments	Principal		Value
REPURCHASE AGREEMENTS — 3.5%^(c)
BNP Paribas Securities Corp., dated 06/30/17, due 07/03/17, 1.11%, total to be received $25,911, (collateralized by various U.S. Government Agency Obligations, 0.00% – 9.00%, 07/28/17 – 09/09/49, totaling $26,333)	$	25,909	$	25,909
Daiwa Capital Markets America, dated 06/30/17, due 07/03/17, 1.15%, total to be received $250,024, (collateralized by various U.S. Government Agency Obligations, 0.00% – 6.50%, 07/13/17 – 12/01/51, totaling $254,301)		250,000		250,000
HSBC Securities USA, Inc., dated 06/30/17, due 07/03/17, 1.06%, total to be received $31,541, (collateralized by various U.S. Government Agency Obligations, 0.00% – 7.25%, 07/15/17 – 01/15/37, totaling $32,125)		31,538		31,538
Nomura Securities International, Inc., dated 06/30/17, due 07/03/17, 1.13%, total to be received $250,024, (collateralized by various U.S. Government Agency Obligations, 0.00% – 9.50%, 07/10/17 – 06/20/67, totaling $254,297)		250,000		250,000

See accompanying Notes to Financial Statements.

ADVISORSHARES MADRONA GLOBAL BOND ETF

Schedule of Investments (continued)

June 30, 2017

Investments	Principal		Value
REPURCHASE AGREEMENTS (continued)
RBC Dominion Securities, Inc., dated 06/30/17, due 07/03/17, 1.08%, total to be received $58,359, (collateralized by various U.S. Government Agency Obligations, 1.38% – 7.00%, 02/19/19 – 06/01/47, totaling $59,339)	$	58,354	$	58,354
Total Repurchase Agreements
(Cost $615,801)				615,801

Total Investments — 103.8%
(Cost $17,893,214)				18,137,130
Liabilities in Excess of Other Assets — (3.8%)				(670,918	)
Net Assets — 100.0%			$	17,466,212

ETF — Exchange Traded Fund

†	Affiliated Company.
(a)	All or a portion of security is on loan. The aggregate market value of the securities on loan is $601,095; the aggregate market value of the collateral held by the fund is $615,801.
(b)	Rate shown reflects the 7-day yield as of June 30, 2017.
(c)	Collateral received from brokers for securities lending was invested in these short-term investments.

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of
	Net Assets
Asset Allocation Fund		10.1	%
Debt Fund		88.6
Money Market Fund		1.6
Repurchase Agreements		3.5
Total Investments		103.8
Liabilities in Excess of Other Assets		(3.8	)
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

ADVISORSHARES MADRONA INTERNATIONAL ETF

Schedule of Investments

June 30, 2017

Investments	Shares		Value
COMMON STOCKS — 95.6%

ARGENTINA — 2.9%
Empresa Distribuidora Y Comercializadora Norte*^(a)		2,925	$	93,308
Grupo Financiero Galicia SA^(a)		763		32,534
Grupo Supervielle SA^(a)		4,875		88,140
Pampa Energia SA*^(a)		1,276		75,093
Telecom Argentina SA^(a)		1,172		29,698
Total Argentina				318,773

BELGIUM — 2.4%
Anheuser-Busch InBev SA/NV^(a)		2,380		262,657

BRAZIL — 6.1%
Banco Bradesco SA^(a)		8,455		71,867
Banco Santander Brasil SA^(a)		6,483		48,817
Cia Brasileira de Distribuicao Grupo Pao de Acucar*^(a)		4,132		80,781
Cia de Saneamento Basico do Estado de Sao Paulo^(a)		9,659		91,954
Embraer SA^(a)		3,615		65,901
Fibria Celulose SA^(a)		7,475		75,946
Itau Unibanco Holding SA^(a)		4,709		52,034
Telefonica Brasil SA^(a)		4,094		55,228
TIM Participacoes SA^(a)		2,217		32,812
Vale SA^(a)		10,198		89,233
Total Brazil				664,573

CANADA — 4.2%
Canadian Solar, Inc.*^(b)		7,743		123,269
CGI Group, Inc., Class A*		929		47,444
Gildan Activewear, Inc.		751		23,078
Magna International, Inc.		2,389		110,682
Manulife Financial Corp.		4,668		87,572
Wheaton Precious Metals Corp.		3,533		70,271
Total Canada				462,316

CHILE — 1.0%
Enel Generacion Chile SA^(a)		1,167		26,421
Latam Airlines Group SA^(a)(b)		6,165		68,247
Sociedad Quimica y Minera de Chile SA^(a)		427		14,099
Total Chile				108,767

CHINA — 14.2%
51job, Inc.*^(a)		346		15,477
AirMedia Group, Inc.*^(a)(b)		39,171		83,826
Alibaba Group Holding Ltd.*^(a)(b)		2,075		292,367
Autohome, Inc.*^(a)		411		18,643

Investments	Shares		Value
COMMON STOCKS (continued)

CHINA (continued)
Baidu, Inc.*^(a)		217	$	38,813
Baozun, Inc.*^(a)(b)		509		11,285
Bitauto Holdings Ltd.*^(a)(b)		1,524		43,815
Cheetah Mobile, Inc.*^(a)(b)		3,725		40,155
Daqo New Energy Corp.*^(a)		3,177		65,954
Fang Holdings Ltd.*^(a)		21,647		80,310
Fanhua, Inc.^(a)(b)		5,564		47,628
Huaneng Power International, Inc.^(a)(b)		1,245		34,599
iKang Healthcare Group, Inc.*^(a)(b)		6,348		77,890
Jumei International Holding Ltd.*^(a)		36,213		77,134
Momo, Inc.*^(a)		1,214		44,869
NetEase, Inc.^(a)		116		34,873
New Oriental Education & Technology Group, Inc.*^(a)		345		24,319
Noah Holdings Ltd.*^(a)(b)		2,002		57,357
NQ Mobile, Inc., Class A*^(a)(b)		20,755		70,567
Semiconductor Manufacturing International Corp.*^(a)(b)		7,455		42,493
TAL Education Group^(a)		103		12,598
Tarena International, Inc.^(a)		4,402		78,840
Vipshop Holdings Ltd.*^(a)		5,591		58,985
Weibo Corp.*^(a)(b)		242		16,086
Xinyuan Real Estate Co., Ltd.^(a)		12,259		63,502
Yirendai Ltd.*^(a)		2,495		62,375
YY, Inc.*^(a)		1,002		58,146
Total China				1,552,906

COLOMBIA — 0.8%
Ecopetrol SA^(a)(b)		9,774		88,846

FINLAND — 1.0%
Nokia OYJ^(a)		17,281		106,451

FRANCE — 5.0%
Criteo SA*^(a)(b)		7,864		385,729
Sanofi^(a)		3,297		157,959
Total France				543,688

GERMANY — 1.2%
SAP SE^(a)		1,267		132,617

INDIA — 0.9%
HDFC Bank Ltd.^(a)		525		45,659
Infosys Ltd.^(a)(b)		1,464		21,989

See accompanying Notes to Financial Statements.

ADVISORSHARES MADRONA INTERNATIONAL ETF

Schedule of Investments (continued)

June 30, 2017

Investments	Shares		Value
COMMON STOCKS (continued)

INDIA (continued)
WNS Holdings Ltd.*^(a)		890	$	30,581
Total India				98,229

IRELAND — 1.8%
Trinity Biotech PLC*^(a)(b)		31,973		191,838

ISRAEL — 0.7%
Nice Ltd.^(a)		1,018		80,137

LUXEMBOURG — 4.7%
Ternium SA^(a)		18,322		514,665

MEXICO — 1.5%
America Movil SAB de CV, Class L^(a)		3,828		60,942
Cemex SAB de CV*^(a)		8,157		76,839
Grupo Televisa SAB^(a)		981		23,907
Total Mexico				161,688

NETHERLANDS — 18.5%
Aegon NV^{(b) (c)}		100,604		514,086
Royal Dutch Shell PLC, Class A^(a)		9,708		516,368
Royal Dutch Shell PLC, Class B^(a)		8,925		485,788
VEON Ltd.^(a)		126,904		496,195
Total Netherlands				2,012,437

NORWAY — 3.2%
Statoil ASA^(a)		21,209		350,585

PERU — 0.7%
Cia de Minas Buenaventura SAA^(a)		7,184		82,616

RUSSIA — 0.6%
Mobile TeleSystems PJSC^(a)		5,045		42,277
QIWI PLC^(a)		825		20,361
Total Russia				62,638

SOUTH AFRICA — 0.5%
MiX Telematics Ltd.^(a)		7,122		56,121

SOUTH KOREA — 0.2%
Hanwha Q CELLS Co. Ltd.*^(a)(b)		3,080		22,022

Investments	Shares/Principal		Value
COMMON STOCKS (continued)

SPAIN — 2.2%
Grifols SA^(a)		11,201	$	236,677

SWITZERLAND — 4.2%
STMicroelectronics NV^(c)		31,526		453,344

TAIWAN — 6.2%
AU Optronics Corp.^(a)(b)		20,127		91,779
Silicon Motion Technology Corp.^(a)(b)		8,102		390,760
Siliconware Precision Industries Co., Ltd.*^(a)		6,800		54,196
Taiwan Semiconductor Manufacturing Co., Ltd.^(a)		967		33,806
United Microelectronics Corp.^(a)(b)		45,230		110,361
Total Taiwan				680,902

UNITED KINGDOM — 6.4%
AstraZeneca PLC^(a)(b)		1,560		53,180
BP PLC^(a)(b)		12,371		428,655
GlaxoSmithKline PLC^(a)(b)		4,939		212,970
Total United Kingdom				694,805

UNITED STATES — 4.5%
IMAX Corp.*^(b)		2,510		55,220
Mitel Networks Corp.*		13,116		96,403
Shire PLC^(a)		1,872		309,385
Tucows, Inc., Class A*^(b)		626		33,491
Total United States				494,499
Total Common Stocks
(Cost $9,798,713)				10,434,797

MONEY MARKET FUND — 0.6%
BlackRock Liquidity Funds FedFund Portfolio, 0.86%^(d)
(Cost $60,010)		60,010		60,010

REPURCHASE AGREEMENTS — 17.6%^(e)
BNP Paribas Securities Corp., dated 06/30/17, due 07/03/17, 1.11%, total to be received $80,594, (collateralized by various U.S. Government Agency Obligations, 0.00% – 9.00%, 07/28/17 – 09/09/49, totaling $81,906)	$	80,587		80,587

See accompanying Notes to Financial Statements.

ADVISORSHARES MADRONA INTERNATIONAL ETF

Schedule of Investments (continued)

June 30, 2017

Investments	Principal		Value
REPURCHASE AGREEMENTS (continued)
Citigroup Global Markets, Inc., dated 06/30/17, due 07/03/17, 1.10%, total to be received $399,263, (collateralized by various U.S. Government Agency Obligations, 0.00% – 8.75%, 07/27/17 – 07/01/47, totaling $405,932)	$	399,226	$	399,226
Daiwa Capital Markets America, dated 06/30/17, due 07/03/17, 1.15%, total to be received $445,854, (collateralized by various U.S. Government Agency Obligations, 0.00% – 6.50%, 07/13/17 – 12/01/51, totaling $453,481)		445,811		445,811
HSBC Securities USA, Inc., dated 06/30/17, due 07/03/17, 1.06%, total to be received $98,102, (collateralized by various U.S. Government Agency Obligations, 0.00% – 7.25%, 07/15/17 – 01/15/37, totaling $99,919)		98,093		98,093
Nomura Securities International, Inc., dated 06/30/17, due 07/03/17, 1.13%, total to be received $445,853, (collateralized by various U.S. Government Agency Obligations, 0.00% – 9.50%, 07/10/17 – 06/20/67, totaling $453,473)		445,811		445,811

Investments	Principal		Value
REPURCHASE AGREEMENTS (continued)
RBC Dominion Securities, Inc., dated 06/30/17, due 07/03/17, 1.08%, total to be received $445,851, (collateralized by various U.S. Government Agency Obligations, 1.38% – 7.00%, 02/19/19 – 06/01/47, totaling $453,336)	$	445,811	$	445,811
Total Repurchase Agreements
(Cost $1,915,339)				1,915,339

Total Investments — 113.8%
(Cost $11,774,062)				12,410,146
Liabilities in Excess of Other Assets — (13.8%)				(1,508,054	)
Net Assets — 100.0%			$	10,902,092

PLC — Public Limited Company

*	Non-income producing security.
(a)	American Depositary Receipt.
(b)	All or a portion of security is on loan. The aggregate market value of the securities on loan is $2,126,494; the aggregate market value of the collateral held by the fund is $2,216,719. The aggregate market value of the collateral includes non-cash U.S. Treasury securities collateral having a value of $301,380.
(c)	Registered Shares.
(d)	Rate shown reflects the 7-day yield as of June 30, 2017.
(e)	Collateral received from brokers for securities lending was invested in these short-term investments.

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of
	Net Assets
Advertising		0.8	%
Aerospace/Defense		0.6
Airlines		0.6
Apparel		0.2
Auto Parts & Equipment		1.0
Banks		3.1
Beverages		2.4
Building Materials		0.7

See accompanying Notes to Financial Statements.

ADVISORSHARES MADRONA INTERNATIONAL ETF

Schedule of Investments (continued)

June 30, 2017

SUMMARY OF SCHEDULE OF INVESTMENTS (continued)

	% of
	Net Assets
Chemicals		0.7	%
Commercial Services		1.3
Computers		0.9
Diversified Financial Services		0.5
Electric		2.1
Electronics		0.8
Energy – Alternate Sources		1.3
Entertainment		0.5
Food		0.7
Forest Products & Paper		0.7
Healthcare – Products		1.8
Healthcare – Services		0.7
Insurance		6.0
Internet		10.2
Iron/Steel		5.5
Media		0.2
Mining		1.4
Oil & Gas		17.2
Pharmaceuticals		8.9
Real Estate		0.6
Retail		0.7
Semiconductors		10.0
Software		4.4
Telecommunications		8.3
Water		0.8
Money Market Fund		0.6
Repurchase Agreements		17.6
Total Investments		113.8
Liabilities in Excess of Other Assets		(13.8	)
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

ADVISORSHARES MEIDELL TACTICAL ADVANTAGE ETF

Schedule of Investments

June 30, 2017

Investments	Shares/Principal		Value
EXCHANGE TRADED FUNDS — 96.5%

Equity Fund — 96.5%
Deutsche X-trackers MSCI Emerging Markets Hedged Equity ETF^(a)		62,093	$	1,356,111
iShares Core S&P Mid-Cap ETF		11,218		1,951,371
iShares Core S&P Small-Cap ETF		28,063		1,967,497
iShares Nasdaq Biotechnology ETF		2,111		654,579
iShares S&P 500 Value ETF		18,655		1,958,029
iShares S&P Mid-Cap 400 Value ETF		13,250		1,968,288
iShares S&P Small-Cap 600 Growth ETF		8,435		1,315,438
iShares S&P Small-Cap 600 Value ETF^(a)		9,372		1,310,393
iShares US Financials ETF		6,097		655,549
Total Exchange Traded Funds
(Cost $13,036,082)				13,137,255

MONEY MARKET FUND — 4.3%
Dreyfus Institutional Treasury and Agency Cash Advantage Fund, 0.93%^(b) (Cost $580,529)		580,529		580,529

REPURCHASE AGREEMENTS — 13.5%^(c)
BNP Paribas Securities Corp., dated 06/30/17, due 07/03/17, 1.11%, total to be received $77,346, (collateralized by various U.S. Government Agency Obligations, 0.00% – 9.00%, 07/28/17 – 09/09/49, totaling $78,605)	$	77,339		77,339
Citigroup Global Markets, Inc., dated 06/30/17, due 07/03/17, 1.10%, total to be received $383,177, (collateralized by various U.S. Government Agency Obligations, 0.00% – 8.75%, 07/27/17 – 07/01/47, totaling $389,578)		383,142		383,142

Investments	Principal		Value
REPURCHASE AGREEMENTS (continued)
Daiwa Capital Markets America, dated 06/30/17, due 07/03/17, 1.15%, total to be received $427,877, (collateralized by various U.S. Government Agency Obligations, 0.00% – 6.50%, 07/13/17 – 12/01/51, totaling $435,196)	$	427,836	$	427,836
HSBC Securities USA, Inc., dated 06/30/17, due 07/03/17, 1.06%, total to be received $94,147, (collateralized by various U.S. Government Agency Obligations, 0.00% – 7.25%, 07/15/17 – 01/15/37, totaling $95,891)		94,139		94,139
Nomura Securities International, Inc., dated 06/30/17, due 07/03/17, 1.13%, total to be received $427,876, (collateralized by various U.S. Government Agency Obligations, 0.00% – 9.50%, 07/10/17 – 06/20/67, totaling $435,189)		427,836		427,836
RBC Dominion Securities, Inc., dated 06/30/17, due 07/03/17, 1.08%, total to be received $427,875, (collateralized by various U.S. Government Agency Obligations, 1.38% – 7.00%, 02/19/19 – 06/01/47, totaling $435,058)		427,836		427,836
Total Repurchase Agreements
(Cost $1,838,128)				1,838,128

Total Investments — 114.3%
(Cost $15,454,739)				15,555,912
Liabilities in Excess of Other Assets — (14.3%)				(1,942,621	)
Net Assets — 100.0%			$	13,613,291

ETF — Exchange Traded Fund

See accompanying Notes to Financial Statements.

ADVISORSHARES MEIDELL TACTICAL ADVANTAGE ETF

Schedule of Investments (continued)

June 30, 2017

(a)	All or a portion of security is on loan. The aggregate market value of the securities on loan is $1,798,832; the aggregate market value of the collateral held by the fund is $1,838,128.
(b)	Rate shown reflects the 7-day yield as of June 30, 2017.
(c)	Collateral received from brokers for securities lending was invested in these short-term investments.

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of
	Net Assets
Equity Fund		96.5	%
Money Market Fund		4.3
Repurchase Agreements		13.5
Total Investments		114.3
Liabilities in Excess of Other Assets		(14.3	)
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF

Schedule of Investments

June 30, 2017

Investments	Principal		Value
MORTGAGE BACKED SECURITIES — 27.2%

Commercial Mortgage Backed Securities — 7.8%
Aventura Mall Trust, Class A, Series 2013-AVM, 3.74%, 12/05/32^@^‡	$	1,015,000	$	1,066,133
Aventura Mall Trust, Class C, Series 2013-AVM, 3.74%, 12/05/32^@^‡		250,000		258,196
Banc of America Commercial Mortgage Trust, Class AM, Series 2007-4, 5.89%, 02/10/51^@		155,829		155,883
Bayview Commercial Asset Trust, Class A2, Series 2006-2A, 1.50%, 07/25/36^@^‡		222,133		211,086
Bayview Commercial Asset Trust, Class A3, Series 2008-1, 2.72%, 01/25/38^@^‡		110,079		109,018
Bear Stearns Commercial Mortgage Securities Trust, Class AM, Series 2007-PW17, 5.92%, 06/11/50^@		990,000		992,132
Bear Stearns Commercial Mortgage Securities Trust, Class A4, Series 2007-PW18, 5.70%, 06/11/50		685,508		688,849
Bear Stearns Commercial Mortgage Securities Trust, Class A4, Series 2007-PW17, 5.69%, 06/11/50^@		193,336		194,316
Citigroup Commercial Mortgage Trust, Class A, Series 2016-SMPL, 2.23%, 09/10/31^‡		470,000		465,049
Citigroup Commercial Mortgage Trust, Class AM, Series 2008-C7, 6.39%, 12/10/49^@		530,000		538,613
Citigroup Commercial Mortgage Trust, Class A1A, Series 2007-C6, 5.87%, 12/10/49^@		15,725		15,715
CLNS Trust, Class B, Series 2017-IKPR, 2.00%, 06/11/32^@^‡		775,000		776,575
Cold Storage Trust, Class A, Series 2017-ICE3, 2.16%, 04/15/36^@^‡		775,000		777,561
Colony Multifamily Mortgage Trust, Class A, Series 2014-1, 2.54%, 04/20/50^‡		297,065		296,048

Investments	Principal		Value
MORTGAGE BACKED SECURITIES (continued)

Commercial Mortgage Backed Securities (continued)
Commercial Mortgage Lease-Backed Certificates, Class A3, Series 2001-CMLB, 7.47%, 06/20/31^@^‡	$	460,000	$	515,455
Commercial Mortgage Trust, Class AM, Series 2007-GG11, 5.87%, 12/10/49^@		1,532,000		1,538,039
Credit Suisse Commercial Mortgage Trust, Class A, Series 2016-BDWN, 4.06%, 02/15/29^@^‡		600,000		603,000
GAHR Commercial Mortgage Trust, Class CFX, Series 2015-NRF, 3.49%, 12/15/34^@^‡		200,000		203,750
GS Mortgage Securities Corp. Trust, Class A, Series 2012-ALOH, 3.55%, 04/10/34^‡		1,158,000		1,215,722
Hilton USA Trust, Class B, Series 2016-SFP, 3.32%, 11/05/35^‡		535,000		537,401
Hospitality Mortgage Trust, Class B, Series 2017-HIT, 2.27%, 05/08/30^@^‡		750,000		751,898
JPMBB Commercial Mortgage Securities Trust, Class A4, Series 2014-C22, 3.80%, 09/15/47		809,000		848,384
JPMorgan Chase Commercial Mortgage Securities Trust, Class B, Series 2015-SGP, 3.91%, 07/15/36^@^‡		535,000		539,296
JPMorgan Chase Commercial Mortgage Securities Trust, Class AM, Series 2006-LDP7, 6.14%, 04/17/45^@		26,439		26,472
JPMorgan Chase Commercial Mortgage Securities Trust, Class A3, Series 2011-C4, 4.11%, 07/15/46^‡		757,950		771,068
JPMorgan Chase Commercial Mortgage Securities Trust, Class AM, Series 2006-LDP9, 5.37%, 05/15/47		588,195		587,764
JPMorgan Chase Commercial Mortgage Securities Trust, Class AM, Series 2007-LDPX, 5.46%, 01/15/49^@		236,390		236,222

See accompanying Notes to Financial Statements.

ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF

Schedule of Investments (continued)

June 30, 2017

Investments	Principal		Value
MORTGAGE BACKED SECURITIES (continued)

Commercial Mortgage Backed Securities (continued)
LB-UBS Commercial Mortgage Trust, Class A3, Series 2007-C7, 5.87%, 09/15/45^@	$	424,400	$	427,092
Morgan Stanley Capital Barclays Bank Trust, Class A, Series 2016-MART, 2.20%, 09/13/31^‡		1,140,000		1,128,717
Morgan Stanley Capital I Trust, Class A4, Series 2008-T29, 6.50%, 01/11/43^@		134,881		136,842
Morgan Stanley Capital I Trust, Class AM, Series 2008-T29, 6.50%, 01/11/43^@		860,000		879,328
Morgan Stanley Capital I Trust, Class A4, Series 2007-IQ16, 5.81%, 12/12/49		238,574		239,278
Motel 6 Trust, Class B, Series 2015-MTL6, 3.30%, 02/05/30^‡		385,000		384,704
Motel 6 Trust, Class D, Series 2015-MTL6, 4.53%, 02/05/30^‡		650,000		650,860
SBA Tower Trust, 3.17%, 04/11/22^‡		780,000		784,183
Velocity Commercial Capital Loan Trust, Class AFX, Series 2017-1, 3.00%, 05/25/47^@^‡		255,105		257,462
VSD, 3.60%, 12/25/43		277,214		277,416
Total Commercial Mortgage Backed Securities				20,085,527

Residential Mortgage Backed Securities — 19.2%
Agate Bay Mortgage Trust, Class A1, Series 2013-1, 3.50%, 07/25/43^@^‡		1,430,808		1,450,013
Alternative Loan Trust, Class 1A1, Series 2004-22CB, 6.00%, 10/25/34		123,778		128,098
AMSR Trust, Class C, Series 2016-SFR1, 3.46%, 11/17/33^@^‡		332,500		339,051
AMSR Trust, Class A, Series 2016-SFR1, 2.61%, 11/17/33^@^‡		332,500		334,942
Asset Backed Funding Certificates Trust, Class A6, Series 2005-AQ1, 4.78%, 01/25/35		130,874		134,554
Banc of America Funding Trust, Class 5A1, Series 2004-A, 3.50%, 07/20/34^@		167,299		167,027

Investments	Principal		Value
MORTGAGE BACKED SECURITIES (continued)

Residential Mortgage Backed Securities (continued)
Banc of America Funding Trust, Class 1A1, Series 2005-1, 5.50%, 02/25/35	$	182,774	$	183,338
Bayview Financial Acquisition Trust, Class 1A2, Series 2007-A, 6.21%, 05/28/37		333,530		348,609
Bayview Opportunity Master Fund IIIb Trust, Class A1, Series 2017-RN2, 3.47%, 04/28/32^@^‡		292,207		292,633
Bayview Opportunity Master Fund IVa Trust, Class A1, Series 2017-RT1, 3.00%, 03/28/57^@^‡		422,387		428,534
Bayview Opportunity Master Fund IVb Trust, Class A, Series 2017-SPL4, 3.50%, 01/28/55^@^‡		151,847		155,728
Bear Stearns ALT-A Trust, Class 3A1, Series 2004-5, 3.49%, 06/25/34^@		421,636		426,237
Bear Stearns ARM Trust, Class 21A1, Series 2004-1, 3.30%, 04/25/34^@		428,419		429,369
Bear Stearns ARM Trust, Class 22A1, Series 2004-9, 3.62%, 11/25/34^@		727,766		734,799
Bear Stearns ARM Trust, Class 21A1, Series 2004-10, 3.49%, 01/25/35^@		881,296		893,211
Bear Stearns ARM Trust, Class 15A1, Series 2004-10, 3.43%, 01/25/35^@		594,896		612,608
Centex Home Equity Loan Trust, Class AF5, Series 2004-D, 5.85%, 09/25/34		392,873		404,100
Chase Mortgage Trust, Class M2, Series 2016-1, 3.75%, 04/25/45^@^‡		492,697		501,156
Chase Mortgage Trust, Class M2, Series 2016-2, 3.75%, 12/25/45^@^‡		753,418		766,284
Citicorp Residential Mortgage Trust, Class A4, Series 2006-1, 5.42%, 07/25/36		116,886		117,913

See accompanying Notes to Financial Statements.

ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF

Schedule of Investments (continued)

June 30, 2017

Investments	Principal		Value
MORTGAGE BACKED SECURITIES (continued)

Residential Mortgage Backed Securities (continued)
Citigroup Mortgage Loan Trust, Inc., Class A3, Series 2004-UST1, 3.09%, 08/25/34^@	$	212,658	$	213,678
Citigroup Mortgage Loan Trust, Inc., Class A, Series 2014-A, 4.00%, 01/25/35^@^‡		578,871		605,987
Citigroup Mortgage Loan Trust, Inc., Class A1, Series 2015-PS1, 3.75%, 09/25/42^@^‡		357,176		367,266
Citigroup Mortgage Loan Trust, Inc., Class A1, Series 2015-A, 3.50%, 06/25/58^@^‡		800,932		819,598
Colony American Finance Ltd., Class A, Series 2015-1, 2.90%, 10/15/47^‡		400,550		401,157
Colony Starwood Homes Trust, Class C, Series 2016-2A, 3.36%, 12/17/33^@^‡		665,000		665,952
COLT Mortgage Loan Trust, Class A1, Series 2016-1, 3.00%, 05/25/46^‡		467,692		473,733
COLT Mortgage Loan Trust, Class A1, Series 2016-2, 2.75%, 09/25/46^@^‡		575,825		582,964
COLT Mortgage Loan Trust, Class A1, Series 2016-3, 2.80%, 12/26/46^@^‡		166,535		167,050
COLT Mortgage Loan Trust, Class A3, Series 2017-1, 3.07%, 05/27/47^@^‡		530,901		534,917
Countrywide Asset-Backed Certificates, Class A3, Series 2004-S1, 5.12%, 02/25/35		364,142		369,369
Credit Suisse Commercial Mortgage Trust, Class A16, Series 2013-HYB1, 3.00%, 04/25/43^@^‡		652,646		659,284
Credit Suisse Commercial Mortgage Trust, Class A2, Series 2014-IVR2, 3.84%, 04/25/44^@^‡		587,766		609,436
Credit Suisse Commercial Mortgage Trust, Class A1, Series 2017-FHA1, 3.25%, 04/25/47^@^‡(b)		618,267		625,635

Investments	Principal		Value
MORTGAGE BACKED SECURITIES (continued)

Residential Mortgage Backed Securities (continued)
Credit Suisse First Boston Mortgage Securities Corp., Class 6A1, Series 2004-8, 4.50%, 12/25/19	$	108,711	$	108,751
Credit Suisse First Boston Mortgage Securities Corp., Class 5A1, Series 2003-AR30, 3.28%, 01/25/34^@		212,979		217,382
Credit Suisse First Boston Mortgage Securities Corp., Class 6A1, Series 2004-AR8, 3.13%, 09/25/34^@		123,870		125,113
Deephaven Residential Mortgage Trust, Class A1, Series 2017-1A, 2.73%, 12/26/46^@^‡		593,628		594,926
Deephaven Residential Mortgage Trust, Class A1, Series 2017-2A, 2.45%, 06/25/47^@^‡		265,000		264,851
Federal Home Loan Mortgage Corporation, Class M2, Series 2016-DNA2, 3.42%, 10/25/28^@		500,000		510,412
Galton Funding Mortgage Trust, Class A21, Series 2017-1, 3.50%, 07/25/56^@^‡		936,357		948,555
GMACM Mortgage Loan Trust, Class 12A, Series 2004-AR1, 3.93%, 06/25/34^@		278,271		281,268
GSAA Trust, Class AF4, Series 2005-1, 5.62%, 11/25/34		103,384		106,043
GSR Mortgage Loan Trust, Class 1A6, Series 2003-3F, 6.00%, 04/25/33		371,355		378,296
GSR Mortgage Loan Trust, Class 3A1, Series 2004-7, 3.22%, 06/25/34^@		463,161		457,963
Home Equity Loan Trust, Class AIIB, Series 2003-HS2, 1.47%, 06/25/28^@		137,541		136,324
Jefferies Resecuritization Trust, Class 1A1, Series 2014-R1, 4.00%, 12/27/37^‡		182,471		182,724
JPMorgan Mortgage Trust, Class 2A2, Series 2014-2, 3.50%, 06/25/29^@^‡		157,215		160,024

See accompanying Notes to Financial Statements.

ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF

Schedule of Investments (continued)

June 30, 2017

Investments	Principal		Value
MORTGAGE BACKED SECURITIES (continued)

Residential Mortgage Backed Securities (continued)
JPMorgan Mortgage Trust, Class 1A1, Series 2004-A3, 3.39%, 07/25/34^@	$	232,844	$	231,906
JPMorgan Mortgage Trust, Class 4A1, Series 2006-A2, 3.56%, 08/25/34^@		207,586		209,560
JPMorgan Mortgage Trust, Class 2A1, Series 2004-A4, 3.24%, 09/25/34^@		108,112		110,178
JPMorgan Mortgage Trust, Class 4A1, Series 2005-A2, 3.10%, 04/25/35^@		602,576		597,210
JPMorgan Mortgage Trust, Class 1A1, Series 2014-1, 4.00%, 01/25/44^@^‡		248,160		257,446
JPMorgan Mortgage Trust, Class 1A4, Series 2015-4, 3.50%, 06/25/45^@^‡		907,915		923,294
JPMorgan Mortgage Trust, Class A3, Series 2016-1, 3.50%, 05/25/46^@^‡		1,181,318		1,201,327
JPMorgan Mortgage Trust, Class A1, Series 2016-5, 2.61%, 12/25/46^@^‡		1,797,892		1,798,650
JPMorgan Trust, Class AM1, Series 2015-1, 2.63%, 12/25/44^@^‡		523,563		526,244
JPMorgan Trust, Class A2, Series 2015-5, 2.87%, 05/25/45^@^‡		834,264		838,774
MASTR Alternative Loan Trust, Class 6A1, Series 2004-4, 5.50%, 04/25/34		312,141		324,840
MASTR Alternative Loan Trust, Class 2A1, Series 2005-2, 6.00%, 01/25/35		188,861		195,763
MASTR Asset Securitization Trust, Class 1A1, Series 2005-1, 5.00%, 05/25/20		163,953		165,872
Mastr Specialized Loan Trust, Class A2, Series 2005-3, 5.70%, 11/25/35^‡		269,597		279,004
Merrill Lynch Mortgage Investors Trust, Class A1, Series 2004-A4, 3.09%, 08/25/34^@		663,775		676,851

Investments	Principal		Value
MORTGAGE BACKED SECURITIES (continued)

Residential Mortgage Backed Securities (continued)
Mill City Mortgage Loan Trust, Class A1, Series 2016-1, 2.50%, 04/25/57^@^‡	$	622,593	$	625,346
Mill City Mortgage Loan Trust, Class A1, Series 2017-1, 2.75%, 11/25/58^@^‡		367,866		371,740
Morgan Stanley Residential Mortgage Loan Trust, Class A1, Series 2014-1A, 2.97%, 06/25/44^@^‡		486,673		493,491
National City Mortgage Capital Trust, Class 2A1, Series 2008-1, 6.00%, 03/25/38		182,296		190,502
New Residential Mortgage Loan Trust, Class A1, Series 2016-2A, 3.75%, 11/26/35^@^‡		501,926		520,050
New Residential Mortgage Loan Trust, Class A, Series 2014-1A, 3.75%, 01/25/54^@^‡		1,113,521		1,149,656
New Residential Mortgage Loan Trust, Class A3, Series 2014-2A, 3.75%, 05/25/54^@^‡		219,525		224,928
New Residential Mortgage Loan Trust, Class AFX3, Series 2014-3A, 3.75%, 11/25/54^@^‡		1,250,963		1,270,291
New Residential Mortgage Loan Trust, Class A1, Series 2015-2A, 3.75%, 08/25/55^@^‡		953,797		989,097
New Residential Mortgage Loan Trust, Class A1, Series 2016-1A, 3.75%, 03/25/56^@^‡		269,712		277,682
New Residential Mortgage Loan Trust, Class A1, Series 2016-3A, 3.75%, 09/25/56^@^‡		806,376		834,724
New Residential Mortgage Loan Trust, Class A1, Series 2016-4A, 3.75%, 11/25/56^@^‡		221,541		229,354
New Residential Mortgage Loan Trust, Class A3, Series 2017-2A, 4.00%, 03/25/57^@^‡		405,351		424,652
NovaStar Mortgage Funding Trust, Class M5, Series 2004-4, 2.94%, 03/25/35^@		1,205,000		1,199,021

See accompanying Notes to Financial Statements.

ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF

Schedule of Investments (continued)

June 30, 2017

Investments	Principal		Value
MORTGAGE BACKED SECURITIES (continued)

Residential Mortgage Backed Securities (continued)
Pretium Mortgage Credit Partners I LLC, Class A1, Series 2017-NPL3, 3.25%, 06/29/32^‡	$	500,000	$	503,750
Pretium Mortgage Credit Partners I LLC, Class A1, Series 2017-NPL2, 3.25%, 03/28/57^‡		459,641		461,516
RASC Series Trust, Class AI6, Series 2004-KS2, 4.30%, 03/25/34^@		46,258		46,805
Sequoia Mortgage Trust, Class A9, Series 2014-3, 3.75%, 10/25/44^@^‡		476,516		485,330
Structured Adjustable Rate Mortgage Loan Trust, Class 6A, Series 2004-1, 3.42%, 02/25/34^@		305,106		299,757
Structured Adjustable Rate Mortgage Loan Trust, Class 3A1, Series 2004-4, 3.45%, 04/25/34^@		112,228		111,922
Structured Adjustable Rate Mortgage Loan Trust, Class 3A2, Series 2004-4, 3.45%, 04/25/34^@		597,676		601,356
Structured Adjustable Rate Mortgage Loan Trust, Class 3A2, Series 2004-5, 3.43%, 05/25/34^@		227,307		231,028
Structured Asset Securities Corp., Class 2A, Series 2003-37A, 3.02%, 12/25/33^@		224,670		224,918
Structured Asset Securities Corp., Class A3A, Series 2004-4XS, 5.45%, 02/25/34		498,467		510,846
Structured Asset Securities Corp. Assistance Loan Trust, Class A, Series 2003-AL1, 3.36%, 04/25/31^‡		825,468		818,370
Structured Asset Securities Corp. Mortgage Pass-Through Certificates, Class 1A1, Series 2003-33H, 5.50%, 10/25/33		340,297		347,672

Investments	Principal		Value
MORTGAGE BACKED SECURITIES (continued)

Residential Mortgage Backed Securities (continued)
Structured Asset Securities Corp. Mortgage Pass-Through Certificates, Class 6A, Series 2003-34A, 3.54%, 11/25/33^@	$	259,412	$	257,406
Towd Point Mortgage Trust, Class A1B, Series 2015-3, 3.00%, 03/25/54^@^‡		394,218		399,937
Towd Point Mortgage Trust, Class A1B, Series 2016-1, 2.75%, 02/25/55^@^‡		726,311		733,541
Towd Point Mortgage Trust, Class M1, Series 2015-6, 3.75%, 04/25/55^@^‡		260,000		263,024
Towd Point Mortgage Trust, Class A1B, Series 2015-5, 2.75%, 05/25/55^@^‡		738,323		745,858
Towd Point Mortgage Trust, Class A2, Series 2015-5, 3.50%, 05/25/55^@^‡		250,000		256,499
Towd Point Mortgage Trust, Class A1, Series 2016-4, 2.25%, 07/25/56^@^‡		512,091		511,141
Verus Securitization Trust, Class A1, Series 2017-1A, 2.85%, 01/25/47^‡		214,718		216,343
VOLT LI LLC, Class A1, Series 2016-NP11, 3.50%, 10/25/46^‡		219,538		220,271
VOLT LVI LLC, Class A1, Series 2017-NPL3, 3.50%, 03/25/47^‡		596,124		599,500
VOLT LVIII LLC, Class A1, Series 2017-NPL5, 3.38%, 05/28/47^‡		256,249		256,794
VOLT LX LLC, Class A1, Series 2017-NPL7, 3.25%, 04/25/59^‡		255,000		255,410
VOLT XXII LLC, Class A1, Series 2015-NPL4, 3.50%, 02/25/55^‡		256,220		257,762

See accompanying Notes to Financial Statements.

ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF

Schedule of Investments (continued)

June 30, 2017

Investments	Principal		Value
MORTGAGE BACKED SECURITIES (continued)

Residential Mortgage Backed Securities (continued)
WaMu Mortgage Pass-Through Certificates Trust, Class A1, Series 2003-AR6, 3.23%, 06/25/33^@	$	189,880	$	190,933
Washington Mutual MSC Mortgage Pass-Through Certificates Trust, Class 2A1, Series 2003-AR4, 2.92%, 08/25/33^@		131,997		130,811
Wells Fargo Mortgage Backed Securities Trust, Class A1, Series 2003-G, 2.99%, 06/25/33^@		21,321		21,481
Wells Fargo Mortgage Backed Securities Trust, Class 2A1, Series 2003-J, 2.95%, 10/25/33^@		138,006		139,728
Wells Fargo Mortgage Backed Securities Trust, Class 5A1, Series 2003-J, 2.96%, 10/25/33^@		130,303		132,281
Wells Fargo Mortgage Backed Securities Trust, Class A1, Series 2004-A, 3.11%, 02/25/34^@		282,314		286,178
Wells Fargo Mortgage Backed Securities Trust, Class 1A2, Series 2004-K, 3.48%, 07/25/34^@		306,235		308,325
Wells Fargo Mortgage Backed Securities Trust, Class 2A12, Series 2004-K, 3.43%, 07/25/34^@		91,658		93,806
Wells Fargo Mortgage Backed Securities Trust, Class A1, Series 2004-U, 3.26%, 10/25/34^@		358,149		358,699
Wells Fargo Mortgage Backed Securities Trust, Class 2A1, Series 2004-Z, 3.00%, 12/25/34^@		117,566		119,550
Wells Fargo Mortgage Backed Securities Trust, Class 2A1, Series 2005-AR10, 3.15%, 06/25/35^@		555,936		569,402

Investments	Principal		Value
MORTGAGE BACKED SECURITIES (continued)

Residential Mortgage Backed Securities (continued)
Wells Fargo Mortgage Backed Securities Trust, Class 2A1, Series 2005-14, 5.50%, 12/25/35	$	80,014	$	82,387
Total Residential Mortgage Backed Securities				49,604,652

U.S. Government Agency Securities — 0.2%
Federal Home Loan Mortgage Corporation, Class J, Series 2012-4011, 4.00%, 12/15/41		336,560		351,268
Total Mortgage Backed Securities
(Cost $70,503,450)				70,041,447

ASSET BACKED SECURITIES — 26.6%
American Credit Acceptance Receivables Trust, Class B, Series 2016-1A, 4.24%, 06/13/22^‡		665,000		672,952
American Credit Acceptance Receivables Trust, Class C, Series 2017-2, 2.86%, 06/12/23^‡		645,000		644,559
AmeriCredit Automobile Receivables Trust, Class B, Series 2016-1, 2.30%, 03/08/21		1,720,000		1,730,310
AmeriCredit Automobile Receivables Trust, Class C, Series 2014-2, 2.18%, 06/08/20		500,000		501,894
AmeriCredit Automobile Receivables Trust, Class C, Series 2015-3, 2.73%, 03/08/21		655,000		661,615
AmeriCredit Automobile Receivables Trust, Class C, Series 2015-4, 2.88%, 07/08/21		715,000		721,852
AmeriCredit Automobile Receivables Trust, Class C, Series 2017-1, 2.71%, 08/18/22		650,000		653,929
AmeriCredit Automobile Receivables Trust, Class D, Series 2013-2, 2.42%, 05/08/19		575,000		575,958
AmeriCredit Automobile Receivables Trust, Class D, Series 2014-1, 2.54%, 06/08/20		755,000		760,478
Ascentium Equipment Receivables LLC, Class B, Series 2015-1A, 2.26%, 06/10/21^‡		492,287		493,713

See accompanying Notes to Financial Statements.

ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF

Schedule of Investments (continued)

June 30, 2017

Investments	Principal		Value
ASSET BACKED SECURITIES (continued)

Ascentium Equipment Receivables Trust, Class B, Series 2017-1A, 2.85%, 10/10/21^‡	$	645,000	$	646,530
Associates Manufactured Housing Pass-Through Certificates, Class B1, Series 1996-1, 8.00%, 03/15/27^@		355,283		365,259
Avis Budget Rental Car Funding Aesop LLC, Class A, Series 2012-3A, 2.10%, 03/20/19^‡		500,000		500,975
Avis Budget Rental Car Funding Aesop LLC, Class A, Series 2013-1A, 1.92%, 09/20/19^‡		1,140,000		1,139,742
Avis Budget Rental Car Funding Aesop LLC, Class A, Series 2013-2A, 2.97%, 02/20/20^‡		1,465,000		1,480,436
BankAmerica Manufactured Housing Contract Trust, Class B1, Series 1998-1, 7.81%, 08/10/25^@		8,063		8,095
BRE Grand Islander Timeshare Issuer LLC, Class A, Series 2017-1A, 2.94%, 05/25/29^‡		613,795		616,081
BXG Receivables Note Trust, Class A, Series 2013-A, 3.01%, 12/04/28^‡		146,349		147,312
BXG Receivables Note Trust, Class A, Series 2015-A, 2.88%, 05/02/30^‡		338,968		341,911
California Republic Auto Receivables Trust, Class A4, Series 2014-3, 1.79%, 03/16/20		479,239		479,985
California Republic Auto Receivables Trust, Class B, Series 2014-2, 2.34%, 04/15/20		500,000		502,964
California Republic Auto Receivables Trust, Class B, Series 2015-3, 2.70%, 09/15/21		645,000		651,191
Capital Auto Receivables Asset Trust, Class C, Series 2013-4, 2.67%, 02/20/19		635,000		636,361

Investments	Principal		Value
ASSET BACKED SECURITIES (continued)

Capital Auto Receivables Asset Trust, Class C, Series 2015-2, 2.67%, 08/20/20	$	650,000	$	653,382
CarFinance Capital Auto Trust, Class B, Series 2014-1A, 2.72%, 04/15/20^‡		97,423		97,760
CarFinance Capital Auto Trust, Class B, Series 2014-2A, 2.64%, 11/16/20^‡		480,000		481,155
CarFinance Capital Auto Trust, Class B, Series 2015-1A, 2.91%, 06/15/21^‡		1,000,000		1,004,375
CarMax Auto Owner Trust, Class B, Series 2014-4, 2.20%, 09/15/20		700,000		703,309
CarMax Auto Owner Trust, Class B, Series 2015-4, 2.16%, 08/16/21		713,000		714,394
CarMax Auto Owner Trust, Class B, Series 2016-2, 2.16%, 12/15/21		575,000		574,602
CarMax Auto Owner Trust, Class C, Series 2015-2, 2.39%, 03/15/21		615,000		619,115
CCG Receivables Trust, Class A3, Series 2015-1, 1.92%, 01/17/23^‡		1,000,000		1,001,946
CCG Receivables Trust, Class B, Series 2014-1, 2.15%, 11/15/21^‡		420,000		420,064
Centre Point Funding LLC, Class 1, Series 2012-2A, 2.61%, 08/20/21^‡		484,016		477,361
Chrysler Capital Auto Receivables Trust, Class D, Series 2015-BA, 4.17%, 01/16/23^‡		635,000		655,293
Citi Held For Asset Issuance, Class A, Series 2015-PM3, 2.56%, 05/16/22^‡		18,272		18,275
CKE Restaurant Holdings, Inc., Class A2, Series 2013-1A, 4.47%, 03/20/43^‡		565,441		564,821
Commonbond Student Loan Trust, Class A1, Series 2017-AGS, 2.55%, 05/25/41^‡		645,000		642,837
Conseco Financial Corp., Class B1, Series 1995-5, 7.30%, 09/15/26^@		86,013		86,868
Diamond Resorts Owner Trust, Class A, Series 2014-1, 2.54%, 05/20/27^‡		489,910		485,589

See accompanying Notes to Financial Statements.

ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF

Schedule of Investments (continued)

June 30, 2017

Investments	Principal		Value
ASSET BACKED SECURITIES (continued)

DRB Prime Student Loan Trust, Class A3, Series 2015-D, 2.50%, 01/25/36^‡	$	306,969	$	307,498
Drive Auto Receivables Trust, Class B, Series 2016-AA, 3.17%, 05/15/20^‡		857,513		860,245
Drive Auto Receivables Trust, Class B, Series 2016-BA, 2.56%, 06/15/20^‡		1,250,000		1,254,225
Drive Auto Receivables Trust, Class C, Series 2015-AA, 3.06%, 05/17/21^‡		1,032,003		1,039,592
Drive Auto Receivables Trust, Class C, Series 2015-DA, 3.38%, 11/15/21^‡		1,000,000		1,009,781
Drive Auto Receivables Trust, Class C, Series 2016-CA, 3.02%, 11/15/21^‡		665,000		669,044
Drug Royalty II LP, Class A2, Series 2014-1, 3.48%, 07/15/23^‡		215,935		214,264
DT Auto Owner Trust, Class B, Series 2016-1A, 2.79%, 05/15/20^‡		699,161		700,720
DT Auto Owner Trust, Class C, Series 2014-3A, 3.04%, 09/15/20^‡		248,453		249,312
DT Auto Owner Trust, Class C, Series 2015-3A, 3.25%, 07/15/21^‡		655,000		660,037
DT Auto Owner Trust, Class C, Series 2016-2A, 3.67%, 01/18/22^‡		625,000		631,708
DT Auto Owner Trust, Class C, Series 2016-3A, 3.15%, 03/15/22^‡		650,000		654,292
Earnest Student Loan Program LLC, Class A2, Series 2017-A, 2.65%, 01/25/41^‡		645,000		643,057
Exeter Automobile Receivables Trust, Class A, Series 2016-1A, 2.35%, 07/15/20^‡		365,621		366,152
Exeter Automobile Receivables Trust, Class B, Series 2017-2A, 2.82%, 05/16/22^‡		785,000		783,893

Investments	Principal		Value
ASSET BACKED SECURITIES (continued)

Exeter Automobile Receivables Trust, Class C, Series 2013-1A, 3.52%, 02/15/19^‡	$	148,513	$	148,906
Exeter Automobile Receivables Trust, Class C, Series 2014-1A, 3.57%, 07/15/19^‡		800,630		804,891
Exeter Automobile Receivables Trust, Class C, Series 2014-2A, 3.26%, 12/16/19^‡		880,000		885,602
Exeter Automobile Receivables Trust, Class C, Series 2015-1A, 4.10%, 12/15/20^‡		500,000		510,754
Exeter Automobile Receivables Trust, Class C, Series 2015-2A, 3.90%, 03/15/21^‡		600,000		609,362
Flagship Credit Auto Trust, Class A, Series 2016-1, 2.77%, 12/15/20^‡		417,274		420,564
Flagship Credit Auto Trust, Class D, Series 2014-2, 5.21%, 02/15/21^‡		645,000		664,281
Foursight Capital Automobile Receivables Trust, Class A2, Series 2016-1, 2.87%, 10/15/21^‡		687,939		691,614
Foursight Capital Automobile Receivables Trust, Class B, Series 2017-1, 3.05%, 12/15/22^‡		260,000		260,213
GLS Auto Receivables Trust, Class B, Series 2017-1A, 2.98%, 12/15/21^‡		770,000		769,774
GM Financial Consumer Automobile, Class B, Series 2017-1A, 2.30%, 06/16/23^‡		650,000		651,595
Gold Key Resorts LLC, Class A, Series 2014-A, 3.22%, 03/17/31^‡		273,894		274,847
Greatamerica Leasing Receivables Funding LLC, Class A4, Series 2017-1, 2.36%, 01/20/23^‡		640,000		640,840
Hertz Vehicle Financing II LP, Class A, Series 2015-2A, 2.02%, 09/25/19^‡		1,075,000		1,071,308
Hertz Vehicle Financing LLC, Class A, Series 2016-1A, 2.32%, 03/25/20^‡		200,000		199,397
Hilton Grand Vacations Trust, Class A, Series 2013-A, 2.28%, 01/25/26^‡		489,716		488,374

See accompanying Notes to Financial Statements.

ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF

Schedule of Investments (continued)

June 30, 2017

Investments	Principal		Value
ASSET BACKED SECURITIES (continued)

Hilton Grand Vacations Trust, Class A, Series 2014-AA, 1.77%, 11/25/26^‡	$	169,794	$	167,207
Hilton Grand Vacations Trust, Class A, Series 2017-AA, 2.66%, 12/26/28^‡		594,719		595,398
Hyundai Auto Receivables Trust, Class B, Series 2015-C, 2.15%, 11/15/21		1,000,000		1,003,302
Hyundai Auto Receivables Trust, Class D, Series 2014-B, 2.51%, 12/15/20		425,000		427,812
Hyundai Auto Receivables Trust, Class D, Series 2015-A, 2.73%, 06/15/21		500,000		502,711
Leaf Receivables Funding 10 LLC, Class D, Series 2015-1, 3.74%, 05/17/21^‡		615,000		607,653
Leaf Receivables Funding 12 LLC, Class B, Series 2017-1, 2.65%, 02/15/22^‡		775,000		772,728
Mariner Finance Issuance Trust, Class A, Series 2017-AA, 3.62%, 02/20/29^‡		645,000		650,805
Marriott Vacation Club Owner Trust, Class A, Series 2012-1A, 2.51%, 05/20/30^‡		548,475		549,995
MVW Owner Trust, Class A, Series 2016-1A, 2.25%, 12/20/33^‡		659,376		651,857
MVW Owner Trust, Class B, Series 2015-1A, 2.96%, 12/20/32^‡		348,069		347,620
Navistar Financial Dealer Note Master Owner Trust II, Class B, Series 2016-1, 2.97%, 09/27/21^@^‡		1,065,000		1,067,640
OneMain Financial Issuance Trust, Class A, Series 2014-1A, 2.43%, 06/18/24^‡		81,648		81,682
OneMain Financial Issuance Trust, Class A, Series 2015-1A, 3.19%, 03/18/26^‡		120,000		121,346
OneMain Financial Issuance Trust, Class A, Series 2015-2A, 2.57%, 07/18/25^‡		285,169		285,847

Investments	Principal		Value
ASSET BACKED SECURITIES (continued)

Orange Lake Timeshare Trust, Class A, Series 2012-AA, 3.45%, 03/10/27^‡	$	70,947	$	71,404
Orange Lake Timeshare Trust, Class A, Series 2015-AA, 2.88%, 09/08/27^‡		321,020		321,540
Santander Drive Auto Receivables Trust, Class B, Series 2016-2, 2.08%, 02/16/21		750,000		751,708
Santander Drive Auto Receivables Trust, Class C, Series 2013-3, 1.81%, 04/15/19		94,538		94,562
Santander Drive Auto Receivables Trust, Class C, Series 2014-3, 2.13%, 08/17/20		364,252		364,912
Santander Drive Auto Receivables Trust, Class C, Series 2016-1, 3.09%, 04/15/22		1,370,000		1,389,716
Santander Drive Auto Receivables Trust, Class C, Series 2017-1, 2.58%, 05/16/22		650,000		650,328
Santander Drive Auto Receivables Trust, Class D, Series 2013-1, 2.27%, 01/15/19		699,803		700,742
Santander Drive Auto Receivables Trust, Class D, Series 2013-5, 2.73%, 10/15/19		475,000		478,463
Sierra Timeshare Receivables Funding LLC, Class A, Series 2014-1A, 2.07%, 03/20/30^‡		94,342		94,238
Sierra Timeshare Receivables Funding LLC, Class A, Series 2014-2A, 2.05%, 06/20/31^@^‡		60,374		60,294
Silverleaf Finance XVIII LLC, Class A, Series 2014-A, 2.81%, 01/15/27^‡		211,443		211,179
SLM Private Education Loan Trust, Class A2A, Series 2013-B, 1.85%, 06/17/30^‡		500,000		500,829
SLM Private Education Loan Trust, Class A2A, Series 2013-C, 2.94%, 10/15/31^‡		228,590		231,442

See accompanying Notes to Financial Statements.

ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF

Schedule of Investments (continued)

June 30, 2017

Investments	Principal		Value
ASSET BACKED SECURITIES (continued)

SLM Private Education Loan Trust, Class A2A, Series 2014-A, 2.59%, 01/15/26^‡	$	1,275,000	$	1,284,292
Sofi Consumer Loan Program LLC, Class A, Series 2016-3, 3.05%, 12/26/25^‡		484,347		489,096
Sofi Professional Loan Program LLC, Class A2, Series 2016-A, 2.76%, 12/26/36^‡		350,341		354,017
Sofi Professional Loan Program LLC, Class A2A, Series 2017-C, 1.75%, 07/25/40^‡		775,000		775,663
SoFi Professional Loan Program LLC, Class A1FX, Series 2017-B, 1.83%, 05/25/40^‡		598,489		598,755
SoFi Professional Loan Program LLC, Class A2, Series 2014-B, 2.55%, 08/27/29^‡		309,360		311,215
SoFi Professional Loan Program LLC, Class A2, Series 2015-A, 2.42%, 03/25/30^‡		181,156		181,490
SoFi Professional Loan Program LLC, Class A2B, Series 2016-C, 2.36%, 12/27/32^‡		1,006,000		999,345
TCF Auto Receivables Owner Trust, Class B, Series 2014-1A, 2.33%, 05/15/20^‡		800,000		803,714
Tidewater Auto Receivables Trust, Class C, Series 2014-AA, 2.56%, 08/15/19^‡		270,395		270,852
Trip Rail Master Funding LLC, Class A1, Series 2014-1A, 2.86%, 04/15/44^‡		223,697		220,093
Trip Rail Master Funding LLC, Class A1A, Series 2011-1A, 4.37%, 07/15/41^‡		227,116		229,045
U-Haul S Fleet LLC, Class 1, Series 2010-BT1A, 4.90%, 10/25/23^‡		667,513		668,708
Volvo Financial Equipment LLC, Class B, Series 2017-1A, 2.40%, 01/18/22^‡		650,000		651,269
Welk Resorts LLC, Class A, Series 2015-AA, 2.79%, 06/16/31^‡		391,089		390,201

Investments	Principal		Value
ASSET BACKED SECURITIES (continued)

Wendys Funding LLC, Class A2II, Series 2015-1A, 4.08%, 06/15/45^‡	$	525,638	$	540,138
Westgate Resorts LLC, Class A, Series 2016-1A, 3.50%, 12/20/28^‡		377,774		379,644
Westlake Automobile Receivables Trust, Class B, Series 2016-3A, 2.07%, 12/15/21^‡		1,230,000		1,227,747
Westlake Automobile Receivables Trust, Class C, Series 2015-1A, 2.29%, 11/16/20^‡		345,089		345,510
Westlake Automobile Receivables Trust, Class C, Series 2016-2A, 2.83%, 05/17/21^‡		780,000		784,666
Total Asset Backed Securities
(Cost $68,380,936)				68,531,810

CORPORATE BONDS — 21.7%

Consumer Discretionary — 2.5%
American Axle & Manufacturing, Inc., 5.13%, 02/15/19		115,000		116,277
Calatlantic Group, Inc., 5.88%, 11/15/24^(a)		136,000		147,900
Calatlantic Group, Inc., 5.25%, 06/01/26		390,000		406,087
CSC Holdings LLC, 6.75%, 11/15/21		365,000		405,150
Delphi Automotive PLC, 3.15%, 11/19/20		530,000		541,836
Dr Horton, Inc., 4.75%, 02/15/23		650,000		702,486
Hyundai Capital America, 2.45%, 06/15/21^‡		515,000		508,461
Marriott International, Inc., Series N, 3.13%, 10/15/21		520,000		532,636
Newell Brands, Inc., 2.60%, 03/29/19		71,000		71,722
Newell Brands, Inc., 3.15%, 04/01/21		65,000		66,567
QVC, Inc., 3.13%, 04/01/19		610,000		617,019
Scientific Games International, Inc., 7.00%, 01/01/22^‡		155,000		165,463
Sirius XM Radio, Inc., 3.88%, 08/01/22^‡		750,000		759,615
Toll Brothers Finance Corp., 4.00%, 12/31/18		175,000		179,813
Toll Brothers Finance Corp., 6.75%, 11/01/19^(a)		117,000		128,993

See accompanying Notes to Financial Statements.

ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF

Schedule of Investments (continued)

June 30, 2017

Investments	Principal		Value
CORPORATE BONDS (continued)

Consumer Discretionary (continued)
TRI Pointe Group, Inc./TRI Pointe Homes, Inc., 5.88%, 06/15/24	$	495,000	$	524,700
Wyndham Worldwide Corp., 2.50%, 03/01/18		450,000		452,034
Wyndham Worldwide Corp., 4.15%, 04/01/24		35,000		36,001
Total Consumer Discretionary				6,362,760

Consumer Staples — 0.3%
Kraft Heinz Foods Co., 2.80%, 07/02/20		185,000		187,898
Smithfield Foods, Inc., 2.70%, 01/31/20^‡		251,000		252,635
Smithfield Foods, Inc., 3.35%, 02/01/22^‡		222,000		223,616
Total Consumer Staples				664,149

Energy — 1.0%
Antero Resources Corp., 5.63%, 06/01/23		210,000		213,675
Blue Racer Midstream LLC/Blue Racer Finance Corp., 6.13%, 11/15/22^‡		155,000		156,937
Carrizo Oil & Gas, Inc., 6.25%, 04/15/23^(a)		640,000		619,200
Kinder Morgan, Inc., 5.63%, 11/15/23^‡		545,000		603,801
NGL Energy Partners LP/NGL Energy Finance Corp., 5.13%, 07/15/19		535,000		533,663
Regency Energy Partners LP/Regency Energy Finance Corp., 5.00%, 10/01/22		440,000		472,425
Sabine Oil & Gas Corp., 7.25%, 06/15/19^^(b)		92,000		282
Ultra Resources, Inc., 6.88%, 04/15/22^‡		30,000		29,813
Total Energy				2,629,796

Financials — 8.2%
Air Lease Corp., 2.63%, 09/04/18		520,000		524,012
Ally Financial, Inc., 3.25%, 11/05/18		145,000		147,132
Ally Financial, Inc., 4.13%, 03/30/20		270,000		278,100
Ares Capital Corp., 4.88%, 11/30/18		76,000		78,685
Ares Capital Corp., 3.88%, 01/15/20^(a)		210,000		214,244

Investments	Principal		Value
CORPORATE BONDS (continued)

Financials (continued)
Aviation Capital Group Corp., 2.88%, 09/17/18^‡	$	195,000	$	196,931
Bank of America Corp., 2.00%, 01/11/18		235,000		235,389
Bank of America Corp., 5.65%, 05/01/18		200,000		206,322
Bank of America Corp., 5.49%, 03/15/19		66,000		69,489
Bank of America Corp., 2.34%, 10/21/22^@		650,000		660,374
Bank of New York Mellon Corp. (The), 2.05%, 05/03/21		650,000		644,404
Bank of New York Mellon Corp. (The), Series E, 4.95%^#@		555,000		579,559
Bear Stearns Cos. LLC (The), 7.25%, 02/01/18		75,000		77,359
Berkshire Hathaway Finance Corp., 1.30%, 08/15/19		1,370,000		1,360,476
Fifth Third Bancorp, 4.50%, 06/01/18		321,000		329,446
First Horizon National Corp., 3.50%, 12/15/20		550,000		564,548
First Tennessee Bank NA, 2.95%, 12/01/19		250,000		252,869
Ford Motor Credit Co. LLC, 8.13%, 01/15/20		455,000		516,921
Ford Motor Credit Co. LLC, 3.20%, 01/15/21		650,000		660,294
FS Investment Corp., 4.25%, 01/15/20		585,000		597,187
General Motors Financial Co., Inc., 2.40%, 04/10/18		355,000		356,394
General Motors Financial Co., Inc., 3.20%, 07/06/21		700,000		708,516
General Motors Financial Co., Inc., 3.70%, 05/09/23		280,000		284,691
Goldman Sachs Group, Inc. (The), 2.35%, 11/15/21		165,000		162,947
Goldman Sachs Group, Inc. (The), 3.00%, 04/26/22		515,000		519,235
Goldman Sachs Group, Inc. (The), Series G, 2.92%, 10/28/27^@		650,000		676,515
Huntington Bancshares, Inc., 7.00%, 12/15/20		200,000		228,667
Icahn Enterprises LP/Icahn Enterprises Finance Corp., 6.25%, 02/01/22		160,000		167,200

See accompanying Notes to Financial Statements.

ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF

Schedule of Investments (continued)

June 30, 2017

Investments	Principal		Value
CORPORATE BONDS (continued)

Financials (continued)
iStar, Inc., 6.00%, 04/01/22	$	235,000	$	241,463
Jefferies Group LLC, 5.13%, 04/13/18		275,000		282,125
JPMorgan Chase & Co., 2.25%, 01/23/20		380,000		381,315
JPMorgan Chase & Co., 2.30%, 08/15/21		170,000		169,110
JPMorgan Chase Bank NA, 1.65%, 09/23/19		580,000		576,950
Lazard Group LLC, 4.25%, 11/14/20		275,000		290,355
Lincoln National Corp., 8.75%, 07/01/19		39,000		43,868
Lincoln National Corp., 4.20%, 03/15/22		475,000		506,027
Lincoln National Corp., 3.20%, 04/20/67^@		100,000		91,750
Morgan Stanley, 2.13%, 04/25/18		180,000		180,629
Morgan Stanley, 2.55%, 10/24/23^@		1,950,000		1,985,328
Navient Corp., 6.50%, 06/15/22^(a)		290,000		307,763
NUVEEN FINANCE LLC, 2.95%, 11/01/19^‡		400,000		405,943
Santander Holdings USA, Inc., 3.70%, 03/28/22^‡		910,000		922,738
SBA Tower Trust, 3.16%, 10/08/20^‡		570,000		581,850
SBA Tower Trust, 2.88%, 07/09/21^‡		780,000		778,401
Springleaf Finance Corp., 5.25%, 12/15/19		190,000		198,094
State Street Corp., 4.96%, 03/15/18		300,000		306,680
Voya Financial, Inc., 2.90%, 02/15/18		279,000		280,929
Wells Fargo & Co., 3.07%, 01/24/23		425,000		431,227
Wells Fargo Bank NA, 2.15%, 12/06/19		785,000		788,912
Total Financials				21,049,363

Health Care — 3.0%
Abbott Laboratories, 2.35%, 11/22/19		240,000		241,944
Abbott Laboratories, 2.90%, 11/30/21		335,000		339,084
AbbVie, Inc., 2.50%, 05/14/20		540,000		546,625
AbbVie, Inc., 2.30%, 05/14/21		375,000		374,413
Allergan Funding SCS, 3.00%, 03/12/20		85,000		86,858
Allergan Funding SCS, 3.45%, 03/15/22		85,000		87,711

Investments	Principal		Value
CORPORATE BONDS (continued)

Health Care (continued)
Becton Dickinson and Co., 2.89%, 06/06/22	$	622,000	$	624,644
Becton Dickinson and Co., 3.36%, 06/06/24		136,000		136,515
Cardinal Health, Inc., 1.95%, 06/14/19		400,000		400,587
Cardinal Health, Inc., 2.62%, 06/15/22		640,000		641,318
Cardinal Health, Inc., 3.08%, 06/15/24		255,000		256,003
CHS/Community Health Systems, Inc., 6.25%, 03/31/23		280,000		290,108
Forest Laboratories LLC, 4.38%, 02/01/19^‡		53,000		54,675
Healthcare Trust of America Holdings LP, 2.95%, 07/01/22		895,000		896,298
Mylan NV, 3.15%, 06/15/21		170,000		173,105
Shire Acquisitions Investments Ireland DAC, 2.40%, 09/23/21		260,000		257,224
Tenet Healthcare Corp., 4.75%, 06/15/20^@		800,000		808,080
Tenet Healthcare Corp., 6.00%, 10/01/20		105,000		112,744
Tenet Healthcare Corp., 4.63%, 07/15/24^‡		335,157		336,414
THC Escrow Corp. III, 4.63%, 07/15/24^‡		419,843		422,026
THC Escrow Corp. III, 5.13%, 05/01/25^‡(a)		380,000		382,375
Valeant Pharmaceuticals International, Inc., 6.50%, 03/15/22^‡		95,000		99,869
Zimmer Biomet Holdings, Inc., 3.15%, 04/01/22		295,000		299,811
Total Health Care				7,868,431

Industrials — 2.1%
America West Airlines Pass-Through Trust, Series 011G, 7.10%, 04/02/21		725,660		792,784
Continental Airlines Class A-1 Pass-Through Trust, Series 00A1, 8.05%, 11/01/20		321,636		357,016
Continental Airlines Class A-1 Pass-Through Trust, Series 01A1, 6.70%, 06/15/21		197,816		213,641

See accompanying Notes to Financial Statements.

ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF

Schedule of Investments (continued)

June 30, 2017

Investments	Principal		Value
CORPORATE BONDS (continued)

Industrials (continued)
Continental Airlines Class C-2 Pass-Through Trust, Series AMBC, 6.24%, 03/15/20	$	122,362	$	127,257
Masco Corp., 3.50%, 04/01/21		515,000		531,465
Masco Corp., 5.95%, 03/15/22		304,000		343,524
Penske Truck Leasing Co. LP/PTL Finance Corp., 2.50%, 06/15/19		195,000		196,080
Penske Truck Leasing Co. LP/PTL Finance Corp., 3.38%, 02/01/22^‡		230,000		235,848
Pitney Bowes, Inc., 3.88%, 05/15/22		738,000		738,622
Standard Industries, Inc., 5.50%, 02/15/23^‡		480,000		507,600
UAL Pass-Through Trust, Series 071A, 6.64%, 07/02/22		1,205,341		1,309,302
Total Industrials				5,353,139

Information Technology — 1.6%
Apple, Inc., 2.25%, 02/23/21		325,000		327,321
Apple, Inc., 2.50%, 02/09/22		510,000		514,846
Apple, Inc., 3.00%, 02/09/24		535,000		543,589
Broadcom Corp./Broadcom Cayman Finance Ltd., 2.38%, 01/15/20^‡		395,000		395,815
Broadcom Corp./Broadcom Cayman Finance Ltd., 3.00%, 01/15/22^‡		280,000		282,795
Dun & Bradstreet Corp. (The), 3.50%, 12/01/17		150,000		150,799
Dun & Bradstreet Corp. (The), 4.25%, 06/15/20^(a)		150,000		154,667
First Data Corp., 5.00%, 01/15/24^‡		260,000		268,367
Hewlett Packard Enterprise Co., 2.45%, 10/05/17		145,000		145,371
Hewlett Packard Enterprise Co., 2.85%, 10/05/18		325,000		327,881
Microsoft Corp., 1.55%, 08/08/21		650,000		636,354
Microsoft Corp., 2.40%, 02/06/22		510,000		515,124
Total Information Technology				4,262,929

Materials — 0.2%
Freeport-McMoRan, Inc., 3.88%, 03/15/23		550,000		514,250

Real Estate — 1.5%
CoreCivic, Inc., 5.00%, 10/15/22		450,000		470,250
Corporate Office Properties LP, 3.70%, 06/15/21		460,000		471,622
DDR Corp., 7.88%, 09/01/20		280,000		320,955

Investments	Principal		Value
CORPORATE BONDS (continued)

Real Estate (continued)
Digital Realty Trust LP, 3.40%, 10/01/20	$	420,000	$	431,080
Digital Realty Trust LP, 3.95%, 07/01/22		270,000		283,333
Education Realty Operating Partnership LP, 4.60%, 12/01/24		100,000		101,814
Government Properties Income Trust, 3.75%, 08/15/19		85,000		85,703
HCP, Inc., 3.75%, 02/01/19		140,000		142,985
Healthcare Trust of America Holdings LP, 3.38%, 07/15/21		150,000		153,139
National Retail Properties, Inc., 5.50%, 07/15/21		250,000		274,591
Select Income REIT, 4.15%, 02/01/22		515,000		519,701
Senior Housing Properties Trust, 3.25%, 05/01/19		415,000		419,178
Ventas Realty LP/Ventas Capital Corp., 4.00%, 04/30/19		310,000		318,723
Total Real Estate				3,993,074

Telecommunication Services — 1.1%
AT&T, Inc., 3.88%, 08/15/21		210,000		219,435
AT&T, Inc., 3.00%, 06/30/22		1,045,000		1,046,743
Crown Castle International Corp., 4.88%, 04/15/22		355,000		388,227
Frontier Communications Corp., 10.50%, 09/15/22		645,000		618,394
Verizon Communications, Inc., 4.60%, 04/01/21		125,000		134,169
Verizon Communications, Inc., 2.95%, 03/15/22^‡		51,000		51,410
Verizon Communications, Inc., 3.13%, 03/16/22		327,000		332,187
Total Telecommunication Services				2,790,565

Utilities — 0.2%
Dominion Energy, Inc., 2.96%, 07/01/19		50,000		50,772
Exelon Corp., 2.85%, 06/15/20		555,000		564,227
Total Utilities				614,999
Total Corporate Bonds
(Cost $55,447,240)				56,103,455

See accompanying Notes to Financial Statements.

ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF

Schedule of Investments (continued)

June 30, 2017

Investments	Principal		Value
TERM LOANS — 10.0%

Consumer Discretionary — 3.5%
Altice US Finance I Corp., 3.47%, 07/28/25^@	$	481,366	$	477,956
Aristocrat Leisure Ltd., 3.41%, 10/20/21^@		527,998		530,820
Boyd Gaming Corp., 3.69%, 09/15/23^@		574,812		576,971
Caesars Entertainment Corp., 1.50%, 10/31/21^@		129,052		164,251
Caesars Entertainment Operating Co., Inc. (fka Harrah's Operating Co., Inc.), 0.00%, 04/04/24^@(c)		250,000		249,531
CDS US Intermediate Holdings, Inc., 0.00%^(c) – 5.30%, 07/08/22^@		659,238		662,699
Charter Communications Operating LLC/Charter Communications Operating Capital, 3.23%, 07/01/20^@		603,676		606,130
Charter Communications Operating, LLC (aka CCO Safari LLC), 3.48%, 01/15/24^@		259,343		260,531
CityCenter Holdings, LLC, 3.72%, 04/18/24^@		220,000		220,595
Eldorado Resorts, Inc., 3.38%, 04/17/24^@		753,113		747,935
Harbor Freight Tools USA, Inc., 4.48%, 08/18/23^@		241,093		241,289
Hilton Worldwide Finance, 3.22%, 10/25/23^@		770,879		773,986
McGraw-Hill Global Education Holdings LLC, 5.23%, 05/04/22^@		503,728		496,525
MGM Growth Properties Operating Partnership LP, 3.48%, 04/25/23^@		619,163		620,983
PetSmart, Inc., 4.22%, 03/11/22^@		506,684		473,045
Playa Resorts Holding B.V., 0.00%^(c)-4.17%, 04/29/24^@		495,000		496,237
Seminole Tribe of Florida, 0.00%, 06/22/24^@(c)		400,000		401,300
StationCasinos LLC, 3.71%, 06/08/23^@		371,567		371,504
Univision Communications, 3.98%, 03/15/24^@		528,177		518,712
Total Consumer Discretionary				8,891,000

Consumer Staples — 1.0%
Albertson's LLC, 3.98%, 08/25/21^@		483,832		478,481

Investments	Principal		Value
TERM LOANS (continued)

Consumer Staples (continued)
Aramark Servies, Inc., 3.23%, 03/28/24^@	$	423,938	$	427,250
Galleria Co., 4.13%, 09/29/23^@		180,952		182,253
Hostess Brands, LLC, 3.73%, 08/03/22^@		895,765		899,684
JBS U.S., 5.75%, 10/30/22^@		174,563		170,722
Kronos, Inc., 4.68%, 11/01/23^@		331,337		333,983
Post Holdings, Inc., 0.00%^(c) – 3.47%, 05/24/24^@		115,000		115,267
Total Consumer Staples				2,607,640

Energy — 0.4%
MEG Energy, 4.72%, 12/31/23^@		636,333		622,216
Ultra Resources, Inc., 4.12%, 04/12/24^@		520,000		518,700
Total Energy				1,140,916

Financials — 0.1%
Delos Finance, 3.55%, 10/06/23^@		289,000		290,423

Health Care — 1.0%
Acadia Healthcare Co., Inc., 3.80%, 02/16/23^@		178,191		179,661
CHS/Community Health Systems, Inc., 4.20%, 01/27/21^@		428,459		428,146
Endo Luxembourg Finance Co. I Sarl, 5.50%, 04/29/24^@		370,000		374,048
Envision Healthcare Corp. (fka Emergency Medical Services Corp.), 4.30%, 12/01/23^@		383,363		385,759
HLF Financing, 6.73%, 02/15/23^@		127,563		129,157
Iasis Healthcare LLC, 5.30%, 02/17/21^@		29,925		30,112
INC Research Holdings, Inc., 0.00%, 06/27/24^@(c)		205,000		205,577
Tennessee Merger Sub, 3.98%, 02/06/24^@		336,254		333,996
Valeant Pharmaceuticals International, Inc., 5.83%, 04/01/22^@		586,279		594,921
Total Health Care				2,661,377

Industrials — 1.1%
Advanced Disposal Services, Inc. (fka ADS Waste Holdings, Inc.), 3.94%, 11/10/23^@		638,852		641,877
American Airlines, Inc., 3.72%, 04/28/23^@		495,000		495,997

See accompanying Notes to Financial Statements.

ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF

Schedule of Investments (continued)

June 30, 2017

Investments	Principal		Value
TERM LOANS (continued)

Industrials (continued)
Quikrete Holdings, Inc., 3.98%, 11/15/23^@	$	460,685	$	460,181
TransDigm Inc., 0.00%, 06/09/23^@(c)		204,484		204,391
TransDigm, Inc., 4.23%, 06/04/21^@		537,174		537,545
United Airlines, Inc., 3.42%, 04/01/24^@		428,925		431,230
Total Industrials				2,771,221

Information Technology — 0.7%
Donnelley Financial Solutions, 5.08%, 09/29/23^@		93,463		94,494
First Data Corp., 3.72%, 04/26/24^@		528,196		528,761
Rackspace Hosting, Inc., 0.00%^(c) – 4.17%, 11/03/23^@		989,323		991,252
Western Digital Corp., 3.98%, 04/29/23^@		307,948		309,777
Total Information Technology				1,924,284

Materials — 0.3%
Huntsman International LLC, 4.12%, 04/01/23^@		229,109		230,455
Ineos, 3.98%, 03/31/22^@		191,851		192,570
Ineos U.S. Financing, 3.98%, 04/01/24^@		308,450		309,568
Total Materials				732,593

Real Estate — 0.1%
Capital Automotive LP, 4.22%, 03/25/24^@		75,000		75,666
Realogy Group, 3.48%, 07/20/22^@		287,180		288,496
Total Real Estate				364,162

Telecommunication Services — 0.9%
CenturyLink, Inc., 1.38%, 01/31/25^@		365,000		361,375
Level 3 Financing, Inc., 3.47%, 02/22/24^@		625,000		627,150
Sprint Communication, 3.75%, 02/02/24^@		284,288		284,673
UPC Financing Partnership, 3.91%, 04/15/25^@		485,000		486,414
Virgin Media Bristol LLC, 3.91%, 01/31/25^@		465,000		465,697
Total Telecommunication Services				2,225,309

Utilities — 0.9%
Calpine Corp., 4.05%, 01/15/24^@		440,020		439,895
DYNEG, 4.48%, 02/07/24^@		684,285		683,597

Investments	Principal		Value
TERM LOANS (continued)

Utilities (continued)
Energy Future Intermediate Holding Co. LLC, 0.00%, 06/23/18^@(c)	$	370,000	$	371,387
Helix Gen Funding LLC, 4.96%, 06/03/24^@		14,373		14,478
NRG Energy, 3.55%, 06/30/23^@		385,520		385,472
Vistra Operations Co. LLC (fka Tex Operations Co. LLC), 3.98%, 08/04/23^@		52,041		51,651
Vistra Operations Co. LLC (fka Tex Operations Co. LLC), 3.98%, 08/04/23^@		228,444		226,732
Vistra Operations Co. LLC (fka Tex Operations Co. LLC), 4.46%, 12/14/23^@		68,655		68,737
Total Utilities				2,241,949
Total Term Loans
(Cost $25,790,880)				25,850,874

FOREIGN BONDS — 6.9%

Energy — 0.5%
Petrobras Global Finance BV (Brazil), 8.38%, 05/23/21		450,000		504,846
Petroleos Mexicanos (Mexico), 4.88%, 01/24/22		905,000		934,602
Total Energy				1,439,448

Financials — 2.2%
AerCap Ireland Capital DAC/AerCap Global Aviation Trust (Netherlands), 4.50%, 05/15/21		405,000		430,080
AerCap Ireland Capital DAC/AerCap Global Aviation Trust (Netherlands), 3.95%, 02/01/22		150,000		156,337
Brookfield Finance LLC (Canada), 4.00%, 04/01/24		561,000		576,287
Guanay Finance Ltd. (Chile), 6.00%, 12/15/20^‡		519,355		534,676
HSBC Holdings PLC (United Kingdom), 2.95%, 05/25/21		640,000		648,494
Industrial & Commercial Bank of China Ltd. (China), 3.23%, 11/13/19		475,000		483,446
Korea Development Bank (The) (South Korea), 4.63%, 11/16/21		375,000		406,063
Mizuho Financial Group, Inc. (Japan), 2.27%, 09/13/21		785,000		772,936

See accompanying Notes to Financial Statements.

ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF

Schedule of Investments (continued)

June 30, 2017

Investments	Principal		Value
FOREIGN BONDS (continued)

Financials (continued)
Nordea Bank AB (Sweden), 1.63%, 09/30/19^‡	$	940,000	$	932,659
TC Ziraat Bankasi AS (Turkey), 5.13%, 05/03/22^‡		370,000		371,835
Turkiye Vakiflar Bankasi TAO (Turkey), 5.63%, 05/30/22^‡		360,000		359,896
Total Financials				5,672,709

Health Care — 0.2%
Teva Pharmaceutical Finance Netherlands III BV (Israel), 1.70%, 07/19/19		400,000		396,618
Teva Pharmaceutical Finance Netherlands III BV (Israel), 2.20%, 07/21/21		165,000		162,129
Total Health Care				558,747

Industrials — 0.6%
British Airways Class B Pass Through Trust (United Kingdom), 5.63%, 06/20/20^‡		210,259		220,772
CNH Industrial NV (United Kingdom), 4.50%, 08/15/23		630,000		670,950
Park Aerospace Holdings Ltd. (Ireland), 5.25%, 08/15/22^‡		595,000		624,197
Total Industrials				1,515,919

Materials — 1.6%
FMG Resources Pty Ltd. (Australia), 9.75%, 03/01/22^‡		650,000		743,437
Glencore Funding LLC (Switzerland), 4.13%, 05/30/23^‡		640,000		657,554
NOVA Chemicals Corp. (Canada), 4.88%, 06/01/24^‡		70,000		69,825
NOVA Chemicals Corp. (Canada), 5.00%, 05/01/25^‡		545,000		543,637
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer Lu (New Zealand), 4.80%, 07/15/21^@^‡(a)		670,000		682,563
Rusal Capital Dac (Russia), 5.13%, 02/02/22^‡		385,000		386,043
Severstal OAO Via Steel Capital SA (Russia), 3.85%, 08/27/21^‡		645,000		653,173
Vale Overseas Ltd. (Brazil), 5.88%, 06/10/21		275,000		295,900
Total Materials				4,032,132

Investments	Principal		Value
FOREIGN BONDS (continued)

Real Estate — 0.2%
WEA Finance LLC/Westfield UK & Europe Finance PLC (Australia), 3.25%, 10/05/20^‡	$	535,000	$	544,858

Sovereign Government — 1.3%
Argentine Republic Government International Bond (Argentina), 6.88%, 04/22/21		355,000		380,737
Argentine Republic Government International Bond (Argentina), 5.63%, 01/26/22		235,000		241,227
Costa Rica Government International Bond (Costa Rica), 4.38%, 04/30/25^‡		535,000		510,492
Indonesia Government International Bond (Indonesia), 3.70%, 01/08/22^‡		455,000		468,739
Oman Government International Bond (Oman), 3.63%, 06/15/21^‡		690,000		687,271
Provincia de Buenos Aires (Argentina), 5.75%, 06/15/19^‡		205,000		212,021
Provincia de Buenos Aires (Argentina), 6.50%, 02/15/23^‡		255,000		260,993
Turkey Government International Bond (Turkey), 5.63%, 03/30/21		520,000		552,358
Total Sovereign Government				3,313,838

Utilities — 0.3%
Majapahit Holding BV (Indonesia), 7.75%, 01/20/20^‡		245,000		274,400
State Grid Overseas Investment 2014 Ltd. (China), 2.75%, 05/07/19^‡		500,000		504,916
Total Utilities				779,316
Total Foreign Bonds
(Cost $17,669,062)				17,856,967

U.S. TREASURY NOTES — 2.8%
U.S. Treasury Note, 12/31/18, 1.25%^(a)		585,000		584,143
U.S. Treasury Note, 12/15/19, 1.38%^(a)		2,605,000		2,599,811
U.S. Treasury Note, 01/31/21, 1.38%		1,000,000		989,531
U.S. Treasury Note, 01/31/22, 1.88%		3,000,000		3,004,218
Total U.S. Treasury Notes
(Cost $7,185,331)				7,177,703

See accompanying Notes to Financial Statements.

ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF

Schedule of Investments (continued)

June 30, 2017

Investments	Principal/ Shares		Value
U.S. GOVERNMENT AGENCY SECURITIES — 1.8%

Federal National Mortgage Association, 2.50%, 02/01/31	$	1,110,037	$	1,116,917
Federal National Mortgage Association, 3.00%, 10/01/30		537,928		552,656
Federal National Mortgage Association, 3.00%, 10/01/30		772,295		793,440
Federal National Mortgage Association, 3.50%, 12/01/46		1,242,396		1,277,197
Federal National Mortgage Association, 4.00%, 01/01/46		746,910		785,887
Federal National Mortgage Association, 5.00%, 06/25/37		48,105		50,026
Federal National Mortgage Association, 4.00%, 11/25/41		146,587		149,230
Total U.S. Government Agency Securities
(Cost $4,781,584)				4,725,353

MONEY MARKET FUND — 3.6%
JPMorgan U.S. Government Money Market Fund – Institutional Class, 0.82%^(d) (Cost $9,347,183)		9,347,183		9,347,183

REPURCHASE AGREEMENTS — 0.8%^(e)
BNP Paribas Securities Corp., dated 06/30/17, due 07/03/17, 1.11%, total to be received $79,521, (collateralized by various U.S. Government Agency Obligations, 0.00% – 9.00%, 07/28/17 – 09/09/49, totaling $80,816)	$	79,514		79,514
Citibank NA, dated 06/30/17, due 07/03/17, 1.08%, total to be received $50,826, (collateralized by various U.S. Government Agency Obligations, 0.00% – 8.00%, 11/15/17 – 02/15/47, totaling $51,504)		50,821		50,821

Investments	Principal		Value
REPURCHASE AGREEMENTS (continued)
Deutsche Bank Securities, Inc., dated 06/30/17, due 07/03/17, 1.16%, total to be received $439,914, (collateralized by various U.S. Government Agency Obligations, 0.00% – 7.25%, 07/03/17 – 03/20/47, totaling $447,307)	$	439,871	$	439,871
HSBC Securities USA, Inc., dated 06/30/17, due 07/03/17, 1.07%, total to be received $343,116, (collateralized by various U.S. Government Agency Obligations, 3.00% – 4.50%, 05/20/40 – 06/20/47, totaling $348,939)		343,085		343,085
HSBC Securities USA, Inc., dated 06/30/17, due 07/03/17, 1.06%, total to be received $96,795, (collateralized by various U.S. Government Agency Obligations, 0.00% – 7.25%, 07/15/17 – 01/15/37, totaling $98,587)		96,786		96,786
Merrill Lynch Pierce Fenner & Smith, Inc., dated 06/30/17, due 07/03/17, 1.08%, total to be received $439,911, (collateralized by various U.S. Government Agency Obligations, 0.63% – 2.63%, 07/15/17 – 02/15/45, totaling $444,376)		439,871		439,871

See accompanying Notes to Financial Statements.

ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF

Schedule of Investments (continued)

June 30, 2017

Investments	Principal		Value
REPURCHASE AGREEMENTS (continued)
Mizuho Securities USA, Inc., dated 06/30/17, due 07/03/17, 1.12%, total to be received $439,912, (collateralized by various U.S. Government Agency Obligations, 2.50% – 4.50%, 05/01/27 – 05/01/47, totaling $447,547)	$	439,871	$	439,871
Total Repurchase Agreements
(Cost $1,889,819)				1,889,819

Total Investments — 101.4%
(Cost $260,995,485)				261,524,611
Liabilities in Excess of Other Assets — (1.4%)				(3,519,488	)
Net Assets — 100.0%			$	258,005,123

LP — Limited Partnership

PLC — Public Limited Company

^	Is in default.
#	Perpetual security with no stated maturity date.
@	Variable rate instrument. The interest rate shown reflects the rate in effect at June 30, 2017.
‡	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.
(a)	All or a portion of security is on loan. The aggregate market value of the securities on loan is $5,710,234; the aggregate market value of the collateral held by the fund is $5,835,583. The aggregate market value of the collateral includes non-cash U.S. Treasury securities collateral having a value of $3,945,764.
(b)	Security fair valued as determined in good faith in accordance with the procedures established by the Board of Trustees.
(c)	The loan will settle after June 30, 2017 at which time the interest rate will be determined.
(d)	Rate shown reflects the 7-day yield as of June 30, 2017.
(e)	Collateral received from brokers for securities lending was invested in these short-term investments.

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of
	Net Assets
Asset Backed Securities		26.6	%
Commercial Mortgage Backed Securities		7.8
Consumer Discretionary		6.0
Consumer Staples		1.3
Energy		1.9
Financials		10.5
Health Care		4.2
Industrials		3.8
Information Technology		2.3
Materials		2.1
Real Estate		1.8
Residential Mortgage Backed Securities		19.2
Sovereign Government		1.3
Telecommunication Services		2.0
U.S. Government Agency Securities		2.0
U.S. Treasury Notes		2.8
Utilities		1.4
Money Market		3.6
Repurchase Agreements		0.8
Total Investments		101.4
Liabilities in Excess of Other Assets		(1.4	)
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

ADVISORSHARES PACIFIC ASSET ENHANCED FLOATING RATE ETF

Schedule of Investments

June 30, 2017

Investments	Principal		Value
TERM LOANS — 73.0%

Advertising — 1.6%
Acosta, Inc., 4.48%, 09/26/21^@	$	486,222	$	438,086

Aerospace & Defense — 3.4%
Accudyne Industries Borrower SCA, 4.23%, 12/13/19 (Luxembourg)^@		488,586		485,569
TransDigm, Inc., 4.23%, 06/16/23^@		435,688		435,490
Total Aerospace & Defense				921,059

Auto Parts & Equipment — 2.3%
Cooper-Standard Automotive, Inc., 3.55%, 11/02/23^@		226,667		227,045
Federal-Mogul Holdings LLC, 4.81%, 04/15/21^@		1,256		1,261
Federal-Mogul Holdings LLC, 4.91%, 04/15/21^@		289,077		290,281
Federal-Mogul Holdings LLC, 4.98%, 04/15/21^@		94,419		94,813
Total Auto Parts & Equipment				613,400

Building Materials — 1.8%
GYP Holdings III Corp., 4.14%, 04/01/23^@		488,750		490,737

Chemicals — 0.8%
MacDermid, Inc., 4.23%, 06/07/23^@		204,480		205,094

Coal — 0.9%
Peabody Energy Corp., 5.73%, 03/31/22^@		249,375		249,344

Commercial Services — 4.1%
Brightview Landscapes LLC, 4.21%, 12/18/20^@		107,239		107,482
Brightview Landscapes LLC, 4.22%, 12/18/20^@		132,755		133,056
Brightview Landscapes LLC, 7.71%, 12/17/21^@		117,021		117,372
Camelot Finance LP, 4.50%, 10/03/23^@		312,903		315,166
Camelot Finance LP, 4.73%, 10/03/23^@		432,104		435,230
Total Commercial Services				1,108,306

Investments	Principal		Value
TERM LOANS (continued)

Computers — 1.5%
Western Digital Corp., 3.98%, 04/29/23^@	$	396,010	$	398,362

Distribution/Wholesale — 5.4%
Nexeo Solutions LLC, 4.92%, 06/09/23^@		166,412		168,007
Nexeo Solutions LLC, 4.95%, 06/09/23^@		164,122		165,695
Nexeo Solutions LLC, 5.05%, 06/09/23^@		164,478		166,055
Spin Holdco, Inc., 4.97%, 11/14/22^@		489,362		487,160
Univar USA, Inc., 3.98%, 07/01/22^@		491,281		492,394
Total Distribution/Wholesale				1,479,311

Electric — 1.8%
Vistra Operations Co. LLC, 4.46%, 12/14/23^@		375,000		375,446
Vistra Operations Co. LLC, 4.49%, 12/14/23^@		122,500		122,646
Total Electric				498,092

Entertainment — 1.4%
Scientific Games International, Inc., 5.08%, 10/01/21^@		301,971		305,306
Scientific Games International, Inc., 5.23%, 10/01/21^@		81,842		82,746
Total Entertainment				388,052

Environmental Control — 0.9%
Waste Industries USA, Inc., 4.05%, 02/27/20^@		244,375		245,940

Food — 3.1%
Albertson's LLC, 4.25%, 06/22/23^@		348,219		344,859
U.S. Foods, Inc., 3.98%, 06/27/23^@		488,718		491,401
Total Food				836,260

Hand/Machine Tools — 1.7%
Apex Tool Group LLC, 4.50%, 01/31/20^@		484,298		473,201

Healthcare – Services — 3.1%
CHS/Community Health Systems, Inc., 3.79%, 12/31/19^@		35,982		35,968
CHS/Community Health Systems, Inc., 3.95%, 12/31/19^@		104,067		104,027
CHS/Community Health Systems, Inc., 4.04%, 01/27/21^@		66,648		66,599

See accompanying Notes to Financial Statements.

ADVISORSHARES PACIFIC ASSET ENHANCED FLOATING RATE ETF

Schedule of Investments (continued)

June 30, 2017

Investments	Principal		Value
TERM LOANS (continued)

Healthcare – Services (continued)
CHS/Community Health Systems, Inc., 4.20%, 01/27/21^@	$	191,482	$	191,341
IASIS Healthcare LLC, 5.30%, 02/16/21^@		437,880		440,617
Total Healthcare – Services				838,552

Insurance — 0.9%
HUB International Ltd., 4.42%, 10/02/20^@		243,703		244,673

Internet — 1.8%
Uber Technologies, Inc., 5.22%, 07/13/23^@		496,250		497,027

Leisure Time — 3.2%
24 Hour Fitness Worldwide, Inc., 5.05%, 05/28/21^@		243,719		242,703
BRP US, Inc., 4.23%, 06/30/23^@		248,750		250,590
ClubCorp Club Operations, Inc., 4.05%, 12/15/22^@		361,205		363,802
Total Leisure Time				857,095

Lodging — 2.6%
Caesars Entertainment Resort Properties LLC, 4.73%, 10/09/20^@		243,687		245,337
Caesars Growth Properties Holdings LLC, 4.23%, 05/10/21^@		243,736		245,259
Hilton Worldwide Finance LLC, 3.22%, 10/25/23^@		205,079		205,905
Total Lodging				696,501

Machinery – Diversified — 1.5%
RBS Global, Inc., 3.90%, 08/21/23^@		194,742		195,025
RBS Global, Inc., 3.98%, 08/21/23^@		38,518		38,574
RBS Global, Inc., 4.04%, 08/21/23^@		181,759		182,024
Total Machinery – Diversified				415,623

Media — 1.7%
Altice US Finance I Corp., 3.47%, 07/28/25^@		246,198		244,454
iHeartCommunications, Inc., 7.98%, 01/30/19^@		250,000		205,156
Total Media				449,610

Miscellaneous Manufacturing — 0.6%
Gates Global LLC, 4.55%, 03/29/24^@		174,943		175,152

Investments	Principal		Value
TERM LOANS (continued)

Oil & Gas — 2.8%
Chesapeake Energy Corp., 8.69%, 08/23/21^@	$	500,000	$	531,125
Fieldwood Energy LLC, 8.30%, 08/31/20^@		250,000		235,937
Total Oil & Gas				767,062

Packaging & Containers — 5.3%
Proampac PG Borrower LLC, 5.17%, 11/20/23^@		150,620		152,668
Proampac PG Borrower LLC, 5.18%, 11/20/23^@		115,318		116,886
Proampac PG Borrower LLC, 5.21%, 11/20/23^@		231,562		234,710
Reynolds Group Holdings, Inc., 4.23%, 02/05/23^@		446,977		448,045
SIG Combibloc, 4.23%, 03/11/22 (Luxembourg)^@		474,464		478,409
Total Packaging & Containers				1,430,718

Pharmaceuticals — 1.7%
Valeant Pharmaceuticals International, Inc., 5.83%, 04/01/22^@		458,596		465,356

Real Estate — 1.8%
DTZ US Borrower LLC, 4.42%, 11/04/21^@		146,811		146,802
DTZ US Borrower LLC, 4.45%, 11/04/21^@		326,703		326,684
DTZ US Borrower LLC, 4.55%, 11/04/21^@		21,436		21,434
Total Real Estate				494,920

Retail — 12.3%
1011778 BC ULC, 3.48%, 02/16/24 (Canada)^@		227,189		226,835
1011778 BC ULC, 3.54%, 02/16/24 (Canada)^@		144,855		144,629
CEC Entertainment, Inc., 4.23%, 02/15/21^@		487,406		486,087
Michaels Stores, Inc., 3.84%, 09/16/23^@		51,592		51,530
Michaels Stores, Inc., 3.91%, 09/16/23^@		8,895		8,885
Michaels Stores, Inc., 3.98%, 09/16/23^@		139,744		139,578

See accompanying Notes to Financial Statements.

ADVISORSHARES PACIFIC ASSET ENHANCED FLOATING RATE ETF

Schedule of Investments (continued)

June 30, 2017

Investments	Principal		Value
TERM LOANS (continued)

Retail (continued)
Neiman Marcus Group Ltd. LLC, 4.34%, 10/25/20^@	$	488,636	$	368,920
Petco Animal Supplies, Inc., 4.17%, 01/26/23^@		496,231		449,585
PetSmart, Inc., 4.22%, 03/10/22^@		490,000		457,469
Rite Aid Corp., 5.98%, 08/21/20^@		250,000		252,709
Smart & Final Stores LLC, 4.73%, 11/15/22^@		105,520		101,739
Smart & Final Stores LLC, 4.80%, 11/15/22^@		144,480		139,303
SRS Distribution Inc., 4.55%, 08/25/22^@		496,222		498,859
Total Retail				3,326,128

Semiconductors — 1.4%
Microsemi Corp., 3.33%, 01/15/23^@		99,875		100,152
ON Semiconductor Corp., 3.48%, 03/31/23^@		283,673		284,333
Total Semiconductors				384,485

Software — 1.6%
Infor US, Inc., 4.05%, 02/01/22^@		181,564		180,641
Solera LLC, 4.48%, 03/03/23^@		246,875		248,002
Total Software				428,643
Total Term Loans
(Cost $19,999,703)				19,816,789

CORPORATE BONDS — 10.0%

Commercial Services — 1.8%
Ahern Rentals, Inc., 7.38%, 05/15/23^‡		250,000		206,250
Prime Security Services Borrower LLC/Prime Finance, Inc., 9.25%, 05/15/23^‡		250,000		272,290
Total Commercial Services				478,540

Diversified Financial Services — 0.9%
Jefferies Finance LLC/JFIN Co-Issuer Corp., 7.38%, 04/01/20^‡		250,000		257,500

Electric — 1.0%
Dynegy, Inc., 6.75%, 11/01/19		250,000		259,062

Investments	Principal/ Shares		Value
CORPORATE BONDS (continued)

Healthcare – Services — 0.9%
Tenet Healthcare Corp., 8.00%, 08/01/20	$	250,000	$	253,438

Home Builders — 1.0%
Lennar Corp., 4.50%, 06/15/19		250,000		259,375

Lodging — 1.5%
Caesars Entertainment Resort Properties LLC, 8.00%, 10/01/20		125,000		129,062
MGM Resorts International, 6.75%, 10/01/20		250,000		277,600
Total Lodging				406,662

Media — 1.0%
CSC Holdings LLC, 6.63%, 10/15/25^‡		250,000		275,650

Retail — 0.9%
Landry's, Inc., 6.75%, 10/15/24^‡		250,000		256,563

Telecommunications — 1.0%
Sprint Communications, Inc., 6.00%, 11/15/22		250,000		265,625

Total Corporate Bonds
(Cost $2,661,275)				2,712,415

MONEY MARKET FUND — 16.8%
JPMorgan U.S. Government Money Market Fund – Institutional Class, 0.82%^(a)
(Cost $4,563,296)		4,563,296		4,563,296

Total Investments – 99.8%
(Cost $27,224,274)				27,092,500
Other Assets in Excess of Liabilities – 0.2%				50,567
Net Assets — 100.0%			$	27,143,067

LP — Limited Partnership

See accompanying Notes to Financial Statements.

ADVISORSHARES PACIFIC ASSET ENHANCED FLOATING RATE ETF

Schedule of Investments (continued)

June 30, 2017

@	Variable rate instrument. The interest rate shown reflects the rate in effect at June 30, 2017.
‡	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.
(a)	Rate shown reflects the 7-day yield as of June 30, 2017.

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of
	Net Assets
Advertising		1.6	%
Aerospace & Defense		3.4
Auto Parts & Equipment		2.3
Building Materials		1.8
Chemicals		0.8
Coal		0.9
Commercial Services		5.9
Computers		1.5
Distribution/Wholesale		5.4
Diversified Financial Services		0.9
Electric		2.8
Entertainment		1.4
Environmental Control		0.9
Food		3.1
Hand/Machine Tools		1.7
Healthcare – Services		4.0
Home Builders		1.0
Insurance		0.9
Internet		1.8
Leisure Time		3.2
Lodging		4.1
Machinery – Diversified		1.5
Media		2.7
Miscellaneous Manufacturing		0.6
Oil & Gas		2.8
Packaging & Containers		5.3
Pharmaceuticals		1.7
Real Estate		1.8
Retail		13.2
Semiconductors		1.4
Software		1.6
Telecommunications		1.0

SUMMARY OF SCHEDULE OF INVESTMENTS (continued)

	% of
	Net Assets
Money Market Fund		16.8	%
Total Investments		99.8
Other Assets in Excess of Liabilities		0.2
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

ADVISORSHARES PACIFIC ASSET ENHANCED FLOATING RATE ETF

Schedule of Investments (continued)

June 30, 2017

Total Return Swaps contracts outstanding as of June 30, 2017:

Reference Entity		Number of Contracts				Annual Financing Rate Received (Paid)				Termination Date		Notional Amounts				Fair Value				Unrealized Appreciation/ (Depreciation)
iBoxx USD Liquid Leveraged Loans Index			4,000,000				(1.15	)%		12/20/2017		$	4,000,000			$	3,976,957			$	(23,043	)

Morgan Stanley acts as the counterparty to the total return swap contracts listed above. The Fund either receives fees from, or pays fees to, the counterparty, depending upon the total return of the benchmark, and the agreed-upon floating financing rate.

See accompanying Notes to Financial Statements.

ADVISORSHARES PERITUS HIGH YIELD ETF

Schedule of Investments

June 30, 2017

Investments	Principal		Value
CORPORATE BONDS — 68.9%

Aerospace/Defense — 1.1%
Triumph Group, Inc., 5.25%, 06/01/22	$	1,802,000	$	1,799,748

Agriculture — 1.0%
Alliance One International, Inc., 8.50%, 04/15/21^‡(a)		1,612,000		1,684,540

Auto Parts & Equipment — 2.4%
American Axle & Manufacturing, Inc., 6.25%, 04/01/25^‡(a)		444,000		434,010
American Axle & Manufacturing, Inc., 6.50%, 04/01/27^‡(a)		444,000		432,900
Dana Financing Luxembourg Sarl, 5.75%, 04/15/25^‡(a)		1,344,000		1,394,400
Titan International, Inc., 6.88%, 10/01/20^(a)		1,756,000		1,830,630
Total Auto Parts & Equipment				4,091,940

Banks — 0.3%
Provident Funding Associates LP/PFG Finance Corp., 6.38%, 06/15/25^‡		530,000		544,575

Beverages — 0.8%
Beverages & More, Inc., 11.50%, 06/15/22^‡		1,449,000		1,412,775

Biotechnology — 1.6%
AMAG Pharmaceuticals, Inc., 7.88%, 09/01/23^‡(a)		2,862,000		2,765,407

Chemicals — 4.0%
CVR Partners LP/CVR Nitrogen Finance Corp., 9.25%, 06/15/23^‡(a)		2,444,000		2,566,200
Hexion, Inc., 10.00%, 04/15/20		2,649,000		2,642,377
Rain CII Carbon LLC/CII Carbon Corp., 7.25%, 04/01/25^‡		1,571,000		1,625,985
Total Chemicals				6,834,562

Commercial Services — 5.2%
Alpine Finance Merger Sub LLC, 6.88%, 08/01/25^‡		1,600,000		1,632,000

Investments	Principal		Value
CORPORATE BONDS (continued)

Commercial Services (continued)
Brand Energy & Infrastructure Services, Inc., 8.50%, 07/15/25^‡(a)	$	964,000	$	1,000,150
Hertz Corp. (The), 7.63%, 06/01/22^‡(a)		1,450,000		1,450,145
Laureate Education, Inc., 8.25%, 05/01/25^‡		1,166,000		1,253,450
Quad/Graphics, Inc., 7.00%, 05/01/22^(a)		1,723,000		1,763,198
StoneMor Partners LP/Cornerstone Family Services of West Virginia Subsidiary, 7.88%, 06/01/21^(a)		1,742,000		1,737,645
Total Commercial Services				8,836,588

Computers — 1.7%
Harland Clarke Holdings Corp., 9.25%, 03/01/21^‡		2,988,000		2,924,505

Cosmetics/Personal Care — 0.3%
High Ridge Brands Co., 8.88%, 03/15/25^‡		444,000		444,555

Diversified Financial Services — 4.2%
CNG Holdings, Inc., 9.38%, 05/15/20^‡		1,942,000		1,728,380
Exela Intermediate LLC/Exela Finance, Inc., 10.00%, 07/15/23^‡		1,500,000		1,485,000
Navient Corp., 6.75%, 06/25/25		1,208,000		1,248,021
Orchestra Borrower LLC/Orchestra Co.-Issuer, Inc., 6.75%, 06/15/22^‡		964,000		995,716
Springleaf Finance Corp., 6.13%, 05/15/22		1,401,000		1,481,557
Tempo Acquisition LLC/Tempo Acquisition Finance Corp., 6.75%, 06/01/25^‡		226,000		231,650
Total Diversified Financial Services				7,170,324

Electrical Components & Equipment — 1.6%
Artesyn Embedded Technologies, Inc., 9.75%, 10/15/20^‡		2,800,000		2,716,000

See accompanying Notes to Financial Statements

ADVISORSHARES PERITUS HIGH YIELD ETF

Schedule of Investments (continued)

June 30, 2017

Investments	Principal		Value
CORPORATE BONDS (continued)

Energy – Alternate Sources — 1.0%
Enviva Partners LP/Enviva Partners Finance Corp., 8.50%, 11/01/21^‡	$	1,566,000	$	1,677,577

Engineering & Construction — 0.6%
Tutor Perini Corp., 6.88%, 05/01/25^‡(a)		917,000		967,435

Entertainment — 2.7%
AMC Entertainment Holdings, Inc., 6.13%, 05/15/27^‡(a)		1,344,000		1,421,697
CCM Merger, Inc., 6.00%, 03/15/22^‡		1,441,000		1,480,627
Eldorado Resorts, Inc., 6.00%, 04/01/25^‡		1,571,000		1,671,151
Total Entertainment				4,573,475

Food — 4.3%
Bi-Lo LLC/Bi-Lo Finance Corp., 9.25%, 02/15/19^‡(a)		2,995,000		2,575,700
Chobani LLC/Chobani Finance Corp., Inc., 7.50%, 04/15/25^‡		917,000		972,020
Simmons Foods, Inc., 7.88%, 10/01/21^‡		1,672,000		1,780,680
SUPERVALU, Inc., 6.75%, 06/01/21^(a)		2,031,000		2,000,535
Total Food				7,328,935

Healthcare – Products — 2.6%
Greatbatch Ltd., 9.13%, 11/01/23^‡		1,593,000		1,700,528
Mallinckrodt International Finance SA/Mallinckrodt CB LLC, 5.63%, 10/15/23^‡(a)		2,884,000		2,646,070
Total Healthcare – Products				4,346,598

Healthcare – Services — 2.5%
CHS/Community Health Systems, Inc., 6.25%, 03/31/23		1,312,000		1,359,363
Surgery Center Holdings, Inc., 6.75%, 07/01/25^‡		1,449,000		1,470,735
THC Escrow Corp. III, 7.00%, 08/01/25^‡(a)		1,452,000		1,450,185
Total Healthcare – Services				4,280,283

Home Builders — 1.5%
Beazer Homes USA, Inc., 6.75%, 03/15/25		1,103,000		1,152,635

Investments	Principal		Value
CORPORATE BONDS (continued)

Home Builders (continued)
Century Communities, Inc., 5.88%, 07/15/25^‡	$	1,401,000	$	1,397,497
Total Home Builders				2,550,132

Insurance — 1.0%
USIS Merger Sub, Inc., 6.88%, 05/01/25^‡		1,605,000		1,637,100

Lodging — 0.8%
Sugarhouse HSP Gaming Prop Mezz LP/Sugarhouse HSP Gaming Finance Corp., 5.88%, 05/15/25^‡		1,401,000		1,369,478

Machinery – Diversified — 1.7%
Tennant Co., 5.63%, 05/01/25^‡		917,000		967,435
Xerium Technologies, Inc., 9.50%, 08/15/21		1,778,000		1,893,570
Total Machinery – Diversified				2,861,005

Media — 2.1%
Lee Enterprises, Inc., 9.50%, 03/15/22^‡(a)		2,212,000		2,289,420
Salem Media Group, Inc., 6.75%, 06/01/24^‡		1,166,000		1,198,065
Total Media				3,487,485

Metal Fabricate/Hardware — 1.0%
Park-Ohio Industries, Inc., 6.63%, 04/15/27^‡		1,605,000		1,688,259

Miscellaneous Manufacturing — 0.9%
Techniplas LLC, 10.00%, 05/01/20^‡		1,828,000		1,581,220

Oil & Gas — 4.7%
Ascent Resources Utica Holdings LLC/ARU Finance Corp., 10.00%, 04/01/22^‡		917,000		921,585
Calumet Specialty Products Partners LP/Calumet Finance Corp., 11.50%, 01/15/21^‡		1,536,000		1,781,760
Carrizo Oil & Gas, Inc., 8.25%, 07/15/25		1,250,000		1,281,250
Delek Logistics Partners LP, 6.75%, 05/15/25^‡		482,000		489,230

See accompanying Notes to Financial Statements

ADVISORSHARES PERITUS HIGH YIELD ETF

Schedule of Investments (continued)

June 30, 2017

Investments	Principal		Value
CORPORATE BONDS (continued)

Oil & Gas (continued)
Murphy Oil USA, Inc., 5.63%, 05/01/27	$	226,000	$	235,887
Sanchez Energy Corp., 7.75%, 06/15/21^(a)		1,670,000		1,519,700
Ultra Resources, Inc., 6.88%, 04/15/22^‡		917,000		911,269
Ultra Resources, Inc., 7.13%, 04/15/25^‡(a)		917,000		905,538
Total Oil & Gas				8,046,219

Oil & Gas Services — 0.6%
Exterran Energy Solutions LP/EES Finance Corp., 8.13%, 05/01/25^‡		917,000		937,633

Packaging & Containers — 0.8%
BWAY Holding Co., 5.50%, 04/15/24^‡		899,000		920,351
BWAY Holding Co., 7.25%, 04/15/25^‡		444,000		451,770
Total Packaging & Containers				1,372,121

Pharmaceuticals — 2.6%
Horizon Pharma, Inc./Horizon Pharma USA, Inc., 8.75%, 11/01/24^‡(a)		2,486,000		2,535,720
Valeant Pharmaceuticals International, Inc., 6.50%, 03/15/22^‡		899,000		945,074
Valeant Pharmaceuticals International, Inc., 7.00%, 03/15/24^‡		899,000		947,321
Total Pharmaceuticals				4,428,115

Pipelines — 2.8%
Crestwood Midstream Partners LP/Crestwood Midstream Finance Corp., 6.25%, 04/01/23		1,536,000		1,566,720
Martin Midstream Partners LP/Martin Midstream Finance Corp., 7.25%, 02/15/21		1,671,000		1,696,065
SemGroup Corp., 6.38%, 03/15/25^‡		1,566,000		1,522,935
Total Pipelines				4,785,720

REITS — 0.5%
iStar, Inc., 6.00%, 04/01/22		895,000		919,613

Investments	Principal		Value
CORPORATE BONDS (continued)

Retail — 3.8%
Cumberland Farms, Inc., 6.75%, 05/01/25^‡	$	461,000	$	486,355
Ferrellgas Partners LP/Ferrellgas Partners Finance Corp., 8.63%, 06/15/20^(a)		2,652,000		2,519,400
Guitar Center, Inc., 6.50%, 04/15/19^‡		1,879,000		1,641,776
Sonic Automotive, Inc., 6.13%, 03/15/27^‡		1,761,000		1,756,598
Total Retail				6,404,129

Semiconductors — 1.1%
Amkor Technology, Inc., 6.38%, 10/01/22		1,818,000		1,899,810

Software — 1.1%
CURO Financial Technologies Corp., 12.00%, 03/01/22^‡		1,724,000		1,814,510

Telecommunications — 4.0%
Frontier Communications Corp., 11.00%, 09/15/25		2,845,000		2,652,962
Gogo Intermediate Holdings LLC/Gogo Finance Co., Inc., 12.50%, 07/01/22^‡		1,382,000		1,577,208
Windstream Services LLC, 7.75%, 10/01/21^(a)		2,681,000		2,533,545
Total Telecommunications				6,763,715
Total Corporate Bonds
(Cost $115,345,492)				116,946,086

TERM LOANS — 19.6%

Coal — 2.4%
Foresight Energy LLC, 7.05%, 03/16/22^@		1,995,000		1,905,235
Murray Energy Corp., 9.05%, 04/16/20^@		2,238,703		2,160,348
Total Coal				4,065,583

Commercial Services — 2.8%
Constellis Holdings LLC, 6.30%, 04/13/24^@		2,000,000		1,980,000
Jackson Hewitt Tax Service, Inc., 8.17%, 07/24/20^@		2,920,000		2,803,200
Total Commercial Services				4,783,200

See accompanying Notes to Financial Statements

ADVISORSHARES PERITUS HIGH YIELD ETF

Schedule of Investments (continued)

June 30, 2017

Investments	Principal		Value
TERM LOANS (continued)

Electronics — 2.7%
Isola USA Corp., 0.00%, 11/29/18^^@	$	4,171,105	$	2,655,542
KEMET Corp., 7.17%, 04/29/24^@		2,000,000		2,010,000
Total Electronics				4,665,542

Food — 2.8%
Flavors Holdings, Inc., 7.05%, 04/03/20^@		2,464,271		2,328,736
Shearer's Foods LLC, 8.05%, 06/30/22^@		2,431,000		2,364,147
Total Food				4,692,883

Forest Products & Paper — 2.2%
Appvion, Inc., 7.75%, 06/28/19^@		743,583		723,447
Appvion, Inc., 7.79%, 06/28/19^@		1,275,442		1,240,903
Verso Paper Holdings LLC, 12.24%, 10/14/21^@		1,571,568		1,573,532
Verso Paper Holdings LLC, 13.75%, 10/14/21^@		179,542		179,767
Total Forest Products & Paper				3,717,649

Healthcare – Services — 1.3%
Radnet Management, Inc., 8.29%, 03/19/21^@		2,113,333		2,123,900

Oil & Gas — 1.8%
Osum Production Corp., 6.80%, 07/31/20^@		3,833,107		3,085,651

Retail — 0.9%
General Nutrition Centers, Inc., 3.73%, 03/04/19^@		1,671,575		1,580,683

Telecommunications — 1.4%
Global Tel*Link Corp., 9.05%, 11/20/20^@		2,375,000		2,372,043

Transportation — 1.3%
YRC Worldwide, Inc., 8.73%, 02/13/19^@		2,208,541		2,152,566

Total Term Loans
(Cost $35,322,093)				33,239,700

Investments	Principal/ Shares		Value
FOREIGN BONDS — 10.2%

Commercial Services — 0.9%
GW Honos Security Corp., 8.75%, 05/15/25 (Canada)^‡	$	1,401,000	$	1,469,299

Environmental Control — 0.5%
GFL Environmental, Inc., 5.63%, 05/01/22 (Canada)^‡		928,000		953,520

Food — 1.2%
JBS USA LUX SA/JBS USA Finance, Inc., 8.25%, 02/01/20 (Brazil)^‡		2,000,000		2,010,000

Mining — 3.7%
First Quantum Minerals Ltd., 7.25%, 04/01/23 (Zambia)^‡		1,000,000		980,000
First Quantum Minerals Ltd., 7.50%, 04/01/25 (Zambia)^‡(a)		1,000,000		980,000
IAMGOLD Corp., 7.00%, 04/15/25 (Canada)^‡		1,801,000		1,859,532
New Gold, Inc., 6.38%, 05/15/25 (Canada)^‡		928,000		958,160
Taseko Mines Ltd., 8.75%, 06/15/22 (Canada)^‡		1,449,000		1,449,000
Total Mining				6,226,692

Oil & Gas — 2.0%
Northern Blizzard Resources, Inc., 7.25%, 02/01/22 (Canada)^‡		1,743,000		1,748,447
Vermilion Energy, Inc., 5.63%, 03/15/25 (Canada)^‡(a)		1,761,000		1,738,987
Total Oil & Gas				3,487,434

Transportation — 1.9%
Global Ship Lease, Inc., 10.00%, 04/01/19 (United Kingdom)^‡		3,262,000		3,286,465

Total Foreign Bonds
(Cost $17,051,213)				17,433,410

MONEY MARKET FUND — 3.6%
JPMorgan U.S. Government Money Market Fund – Institutional Class, 0.82%^(b) (Cost $6,055,419)		6,055,419		6,055,419

See accompanying Notes to Financial Statements

ADVISORSHARES PERITUS HIGH YIELD ETF

Schedule of Investments (continued)

June 30, 2017

Investments	Principal		Value
REPURCHASE AGREEMENTS — 15.1%^(c)
BNP Paribas Securities Corp., dated 06/30/17, due 07/03/17, 1.11%, total to be received $867,978, (collateralized by various U.S. Government Agency Obligations, 0.00% – 9.00%, 07/28/17 – 09/09/49, totaling $882,105)	$	867,898	$	867,898
Citigroup Global Markets, Inc., dated 06/30/17, due 07/03/17, 1.10%, total to be received $808,261, (collateralized by various U.S. Government Agency Obligations, 0.00% – 8.75%, 07/27/17 – 07/01/47, totaling $821,763)		808,187		808,187
Daiwa Capital Markets America, dated 06/30/17, due 07/03/17, 1.15%, total to be received $5,965,554, (collateralized by various U.S. Government Agency Obligations, 0.00% – 6.50%, 07/13/17 – 12/01/51, totaling $6,067,602)		5,964,982		5,964,982
HSBC Securities USA, Inc., dated 06/30/17, due 07/03/17, 1.06%, total to be received $1,056,516, (collateralized by various U.S. Government Agency Obligations, 0.00% – 7.25%, 07/15/17 – 01/15/37, totaling $1,076,086)		1,056,423		1,056,423
NBC Global Finance Ltd., dated 06/30/17, due 07/03/17, 1.20%, total to be received $5,000,500, (collateralized by various U.S. Government Agency Obligations, 0.00% – 2.50%, 08/15/21 – 09/09/49, totaling $5,067,225)		5,000,000		5,000,000

Investments	Principal		Value
REPURCHASE AGREEMENTS (continued)
Nomura Securities International, Inc., dated 06/30/17, due 07/03/17, 1.13%, total to be received $5,965,544, (collateralized by various U.S. Government Agency Obligations, 0.00% – 9.50%, 07/10/17 – 06/20/67, totaling $6,067,505)	$	5,964,982	$	5,964,982
RBC Dominion Securities, Inc., dated 06/30/17, due 07/03/17, 1.08%, total to be received $5,965,519, (collateralized by various U.S. Government Agency Obligations, 1.38% – 7.00%, 02/19/19 – 06/01/47, totaling $6,065,667)		5,964,982		5,964,982
Total Repurchase Agreements
(Cost $25,627,454)				25,627,454

Total Investments – 117.4%
(Cost $199,401,671)				199,302,069
Liabilities in Excess of Other Assets – (17.4%)				(29,492,127	)
Net Assets — 100.0%			$	169,809,942

LP — Limited Partnership

REITS — Real Estate Investment Trusts

^	Is in default.
@	Variable rate instrument. The interest rate shown reflects the rate in effect at June 30, 2017.
‡	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.
(a)	All or a portion of security is on loan. The aggregate market value of the securities on loan is $32,772,645; the aggregate market value of the collateral held by the fund is $33,531,462. The aggregate market value of the collateral includes non-cash U.S. Treasury securities collateral having a value of $7,904,008.
(b)	Rate shown reflects the 7-day yield as of June 30, 2017.
(c)	Collateral received from brokers for securities lending was invested in these short-term investments.

See accompanying Notes to Financial Statements

ADVISORSHARES PERITUS HIGH YIELD ETF

Schedule of Investments (continued)

June 30, 2017

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of
	Net Assets
Aerospace/Defense		1.1	%
Agriculture		1.0
Auto Parts & Equipment		2.4
Banks		0.3
Beverages		0.8
Biotechnology		1.6
Chemicals		4.0
Coal		2.4
Commercial Services		8.9
Computers		1.7
Cosmetics/Personal Care		0.3
Diversified Financial Services		4.2
Electrical Components & Equipment		1.6
Electronics		2.7
Energy – Alternate Sources		1.0
Engineering & Construction		0.6
Entertainment		2.7
Environmental Control		0.5
Food		8.3
Forest Products & Paper		2.2
Healthcare – Products		2.6
Healthcare – Services		3.8
Home Builders		1.5
Insurance		1.0
Lodging		0.8
Machinery – Diversified		1.7
Media		2.1
Metal Fabricate/Hardware		1.0
Mining		3.7
Miscellaneous Manufacturing		0.9
Oil & Gas		8.5
Oil & Gas Services		0.6
Packaging & Containers		0.8
Pharmaceuticals		2.6
Pipelines		2.8

SUMMARY OF SCHEDULE OF INVESTMENTS (continued)

	% of
	Net Assets
REITS		0.5	%
Retail		4.7
Semiconductors		1.1
Software		1.1
Telecommunications		5.4
Transportation		3.2
Money Market Fund		3.6
Repurchase Agreements		15.1
Total Investments		117.4
Liabilities in Excess of Other Assets		(17.4	)
Net Assets		100.0	%

See accompanying Notes to Financial Statements

100

ADVISORSHARES RANGER EQUITY BEAR ETF

Schedule of Investments

June 30, 2017

Investments	Shares			Value
EXCHANGE TRADED FUND — 38.5%

Debt Fund — 38.5%
AdvisorShares Sage Core Reserves ETF^†
(Cost $67,115,250)		675,000		$	67,182,750

MONEY MARKET FUNDS — 18.1%
Fidelity Institutional Money Market Government Portfolio – Class III, 0.56%^(a)		31,096,510			31,096,510
Morgan Stanley Institutional Liquidity Funds – Government Portfolio, 0.88%^(a)		500,000			500,000
Total Money Market Funds
(Cost $31,596,510)					31,596,510

Total Investments Before Securities Sold, Not Yet Purchased
(Cost $98,711,760)					98,779,260

Securities Sold, Not Yet Purchased — (99.0)%

COMMON STOCKS — (99.0)%

Aerospace/Defense — (6.4)%
TransDigm Group, Inc.		(18,500	)		(4,974,095	)
Triumph Group, Inc.		(195,000	)		(6,162,000	)
Total Aerospace/Defense					(11,136,095	)

Auto Parts & Equipment — (3.1)%
Cooper Tire & Rubber Co.		(149,100	)		(5,382,510	)

Banks — (7.3)%
Bank of Montreal (Canada)		(60,000	)		(4,406,400	)
TCF Financial Corp.		(270,000	)		(4,303,800	)
Toronto-Dominion Bank (The) (Canada)		(80,000	)		(4,030,400	)
Total Banks					(12,740,600	)

Commercial Services — (3.0)%
Avis Budget Group, Inc.*		(100,000	)		(2,727,000	)
Nielsen Holdings PLC		(65,000	)		(2,512,900	)
Total Commercial Services					(5,239,900	)

Computers — (4.6)%
NetScout Systems, Inc.*		(90,000	)		(3,096,000	)
Super Micro Computer, Inc.*		(198,023	)		(4,881,267	)
Total Computers					(7,977,267	)

Distribution/Wholesale — (1.4)%
LKQ Corp.*		(73,000	)		(2,405,350	)

Investments	Shares			Value
COMMON STOCKS (continued)

Diversified Financial Services — (7.9)%
Alliance Data Systems Corp.		(25,000	)	$	(6,417,250	)
Credit Acceptance Corp.*		(28,800	)		(7,405,632	)
Total Diversified Financial Services					(13,822,882	)

Electrical Components & Equipment — (1.1)%
Acuity Brands, Inc.		(10,000	)		(2,032,800	)

Engineering & Construction — (5.2)%
AECOM*		(161,000	)		(5,205,130	)
Granite Construction, Inc.		(80,000	)		(3,859,200	)
Total Engineering & Construction					(9,064,330	)

Food — (1.9)%
Kellogg Co.		(47,000	)		(3,264,620	)

Hand/Machine Tools — (3.7)%
Snap-on, Inc.		(41,100	)		(6,493,800	)

Healthcare – Products — (1.5)%
NuVasive, Inc.*		(35,000	)		(2,692,200	)

Leisure Time — (2.8)%
Harley-Davidson, Inc.		(90,000	)		(4,861,800	)

Media — (2.8)%
FactSet Research Systems, Inc.		(29,500	)		(4,902,310	)

Miscellaneous Manufacturing — (5.7)%
Actuant Corp., Class A		(175,624	)		(4,320,350	)
ITT, Inc.		(140,000	)		(5,625,200	)
Total Miscellaneous Manufacturing					(9,945,550	)

REITS — (12.0)%
GGP, Inc.		(140,000	)		(3,298,400	)
Macerich Co. (The)		(103,000	)		(5,980,180	)
Simon Property Group, Inc.		(36,000	)		(5,823,360	)
Washington Prime Group, Inc.		(425,000	)		(3,557,250	)
Weingarten Realty Investors		(75,000	)		(2,257,500	)
Total REITS					(20,916,690	)

Retail — (9.8)%
AutoNation, Inc.*		(77,000	)		(3,246,320	)
Genuine Parts Co.		(41,000	)		(3,803,160	)
O'Reilly Automotive, Inc.*		(22,000	)		(4,812,280	)
Signet Jewelers Ltd.		(82,500	)		(5,217,300	)
Total Retail					(17,079,060	)

See accompanying Notes to Financial Statements.

101

ADVISORSHARES RANGER EQUITY BEAR ETF

Schedule of Investments (continued)

June 30, 2017

Investments	Shares			Value
COMMON STOCKS (continued)

Software — (9.3)%
BroadSoft, Inc.*		(92,000	)	$	(3,960,600	)
Cornerstone OnDemand, Inc.*		(142,500	)		(5,094,375	)
Fiserv, Inc.*		(26,000	)		(3,180,840	)
HubSpot, Inc.*		(60,000	)		(3,945,000	)
Total Software					(16,180,815	)

Telecommunications — (9.5)%
Ciena Corp.*		(135,000	)		(3,377,700	)
Motorola Solutions, Inc.		(50,000	)		(4,337,000	)
NETGEAR, Inc.*		(63,000	)		(2,715,300	)
Ubiquiti Networks, Inc.*		(120,000	)		(6,236,400	)
Total Telecommunications					(16,666,400	)

Total Securities Sold, Not Yet Purchased [Proceeds Received $(167,246,988)]					(172,804,979	)

Total Investments – (42.4)%
(Cost $(68,535,228))					(74,025,719	)
Other Assets in Excess of Liabilities – 142.4%					248,530,136
Net Assets — 100.0%				$	174,504,417

ETF — Exchange Traded Fund

PLC — Public Limited Company

REITS — Real Estate Investment Trusts

†	Affiliated Company.
*	Non-income producing security.
(a)	Rate shown reflects the 7-day yield as of June 30, 2017.

Cash of $164,814,793 has been segregated to cover margin requirement for open short sales as of June 30, 2017.

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of
	Net Assets
Aerospace/Defense		(6.4	)%
Auto Parts & Equipment		(3.1	)
Banks		(7.3	)
Commercial Services		(3.0	)
Computers		(4.6	)
Debt Fund		38.5

SUMMARY OF SCHEDULE OF INVESTMENTS (continued)

	% of
	Net Assets
Distribution/Wholesale		(1.4	)%
Diversified Financial Services		(7.9	)
Electrical Components & Equipment		(1.1	)
Engineering & Construction		(5.2	)
Food		(1.9	)
Hand/Machine Tools		(3.7	)
Healthcare – Products		(1.5	)
Leisure Time		(2.8	)
Media		(2.8	)
Miscellaneous Manufacturing		(5.7	)
REITS		(12.0	)
Retail		(9.8	)
Software		(9.3	)
Telecommunications		(9.5	)
Money Market Funds		18.1
Total Investments		(42.4	)
Other Assets in Excess of Liabilities		142.4
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

102

ADVISORSHARES SAGE CORE RESERVES ETF

Schedule of Investments

June 30, 2017

Investments	Principal		Value
CORPORATE BONDS — 48.6%

Auto Manufacturers — 3.0%
Ford Motor Credit Co. LLC, 1.72%, 12/06/17	$	880,000	$	880,153
General Motors Co., 3.50%, 10/02/18		555,000		564,915
General Motors Financial Co., Inc., 2.63%, 07/10/17		1,065,000		1,065,110
Total Auto Manufacturers				2,510,178

Banks — 11.7%
Bank of America Corp., Series L, 2.60%, 01/15/19		415,000		419,064
Bank of America Corp., Series L, 2.65%, 04/01/19		830,000		840,351
Bank of New York Mellon Corp. (The), Series G, 2.20%, 05/15/19		420,000		423,599
Branch Banking & Trust Co., 1.61%, 01/15/20^@		475,000		476,531
Capital One Financial Corp., 6.75%, 09/15/17		545,000		550,553
Capital One NA/McLean VA, Series BKNT, 2.32%, 01/30/23^@		670,000		674,299
Citigroup, Inc., 1.80%, 02/05/18		840,000		840,758
Goldman Sachs Group, Inc. (The), Series FRN, 2.96%, 02/25/21^@		1,065,000		1,104,491
JPMorgan Chase & Co., 2.00%, 08/15/17		530,000		530,388
JPMorgan Chase & Co., 2.68%, 03/01/21^@		630,000		649,929
Morgan Stanley, Series MTN, 6.25%, 08/28/17		970,000		976,786
PNC Bank NA, Series BKTN, 4.88%, 09/21/17		298,000		300,057
US Bancorp, Series MTN, 1.79%, 01/24/22^@		1,125,000		1,134,925
Wells Fargo & Co., 5.63%, 12/11/17		380,000		386,634
Wells Fargo & Co., 2.13%, 04/22/19		600,000		603,286
Total Banks				9,911,651

Biotechnology — 0.8%
Amgen, Inc., 1.50%, 05/10/19^@		705,000		707,178

Building Materials — 0.5%
Vulcan Materials Co., 1.85%, 06/15/20^@		430,000		430,156

Investments	Principal		Value
CORPORATE BONDS (continued)

Chemicals — 1.3%
Sherwin-Williams Co. (The), 1.35%, 12/15/17	$	1,061,000	$	1,059,523

Computers — 1.0%
Apple, Inc., 1.68%, 02/09/22^@		870,000		879,413

Diversified Financial Services — 4.2%
Air Lease Corp., 2.13%, 01/15/18		420,000		420,799
American Express Credit Corp., Series F, 2.29%, 09/14/20^@		540,000		549,706
International Lease Finance Corp., 3.88%, 04/15/18		620,000		629,556
Jefferies Group LLC, 5.13%, 04/13/18		629,000		645,297
NYSE Holdings LLC, 2.00%, 10/05/17		690,000		691,149
Synchrony Financial, 1.88%, 08/15/17		605,000		605,144
Total Diversified Financial Services				3,541,651

Electric — 1.7%
American Electric Power Co., Inc., Series E, 1.65%, 12/15/17		752,000		752,149
Edison International, 3.75%, 09/15/17		690,000		693,088
Total Electric				1,445,237

Food — 1.3%
Kroger Co. (The), 6.40%, 08/15/17		540,000		542,733
Tyson Foods, Inc., 1.76%, 06/02/20^@		590,000		592,922
Total Food				1,135,655

Healthcare – Services — 0.4%
Catholic Health Initiatives, 2.60%, 08/01/18		340,000		341,887

Home Builders — 1.0%
Toll Brothers Finance Corp., 8.91%, 10/15/17		800,000		816,000

Home Furnishings — 1.0%
Whirlpool Corp., 1.65%, 11/01/17		850,000		849,946

Insurance — 1.0%
MetLife, Inc., 1.76%, 12/15/17		860,000		860,710

See accompanying Notes to Financial Statements.

103

ADVISORSHARES SAGE CORE RESERVES ETF

Schedule of Investments (continued)

June 30, 2017

Investments	Principal		Value
CORPORATE BONDS (continued)

Internet — 1.0%
eBay, Inc., 2.50%, 03/09/18	$	835,000	$	839,963

Media — 1.0%
Time Warner Cable, Inc., 6.75%, 07/01/18		785,000		821,470

Miscellaneous Manufacturing — 0.9%
Eaton Corp., 1.50%, 11/02/17		750,000		750,207

Oil & Gas — 2.5%
Chevron Corp., 1.10%, 12/05/17		1,065,000		1,064,445
ConocoPhillips Co., 1.05%, 12/15/17		1,075,000		1,073,133
Total Oil & Gas				2,137,578

Pharmaceuticals — 2.0%
AbbVie, Inc., 1.80%, 05/14/18		845,000		846,245
Allergan Funding SCS, 2.48%, 03/12/20^@		855,000		874,383
Total Pharmaceuticals				1,720,628

Pipelines — 1.2%
Enbridge Energy Partners LP, Series B, 6.50%, 04/15/18		400,000		414,267
Midcontinent Express Pipeline LLC, 6.70%, 09/15/19^‡		537,000		577,275
Total Pipelines				991,542

REITS — 1.9%
Realty Income Corp., 2.00%, 01/31/18		260,000		260,285
Ventas Realty LP/Ventas Capital Corp., 2.00%, 02/15/18		845,000		846,258
Welltower, Inc., 4.70%, 09/15/17		500,000		502,781
Total REITS				1,609,324

Retail — 4.8%
CVS Health Corp., 1.90%, 07/20/18		840,000		842,398
Macy's Retail Holdings, Inc., 7.45%, 07/15/17		845,000		845,964
McDonald's Corp., Series GMTN, 5.80%, 10/15/17		485,000		490,477
Target Corp., 6.00%, 01/15/18		525,000		537,189
Walgreens Boots Alliance, Inc., 1.75%, 11/17/17		1,305,000		1,305,933
Total Retail				4,021,961

Investments	Principal		Value
CORPORATE BONDS (continued)

Semiconductors — 1.2%
Intel Corp., 1.35%, 12/15/17	$	1,055,000	$	1,054,811

Software — 1.0%
Microsoft Corp., 0.88%, 11/15/17		845,000		843,875

Telecommunications — 1.9%
AT&T, Inc., 5.50%, 02/01/18		405,000		413,760
AT&T, Inc., 2.23%, 06/30/20^@		350,000		354,734
Verizon Communications, Inc., 3.65%, 09/14/18		820,000		838,416
Total Telecommunications				1,606,910

Transportation — 0.3%
Burlington Northern Santa Fe LLC, 5.75%, 03/15/18		220,000		226,674

Total Corporate Bonds
(Cost $41,035,721)				41,114,128

ASSET BACKED SECURITIES — 23.1%

Diversified Financial Services — 23.1%
Ally Auto Receivables Trust, Class A3, Series 2014-1, 0.97%, 10/15/18		58,539		58,534
American Express Credit Account Master Trust, Class A, Series 2013-2, 1.58%, 05/17/21^@		1,520,000		1,526,510
American Express Credit Account Master Trust, Class A, Series 2014-1, 1.53%, 12/15/21^@		400,000		401,861
American Express Credit Account Secured Note Trust, Class A, Series 2012-4, 1.40%, 05/15/20^@		350,000		350,218
BA Credit Card Trust, Class A, Series 2015-A1, 1.49%, 06/15/20^@		1,310,000		1,312,161
BA Credit Card Trust, Class A11, Series 2007-A11, 1.23%, 12/15/19^@		700,000		700,008
Capital One Multi-Asset Execution Trust, Class A3, Series 2014-A3, 1.54%, 01/18/22^@		400,000		401,838

See accompanying Notes to Financial Statements.

104

ADVISORSHARES SAGE CORE RESERVES ETF

Schedule of Investments (continued)

June 30, 2017

Investments	Principal		Value
ASSET BACKED SECURITIES (continued)

Diversified Financial Services (continued)
Capital One Multi-Asset Execution Trust, Class A5, Series 2007-A5, 1.20%, 07/15/20^@	$	915,000	$	914,993
Capital One Multi-Asset Execution Trust, Class A5, Series 2014-A5, 1.48%, 07/15/20		345,000		345,103
CarMax Auto Owner Trust, Class A2B, Series 2015-4, 1.76%, 04/15/19^@		145,454		145,517
CarMax Auto Owner Trust, Class A3, Series 2016-3, 1.39%, 05/17/21		900,000		895,701
Chase Issuance Trust, Class A, Series 2013-A9, 1.58%, 11/16/20^@		400,000		401,791
Chase Issuance Trust, Class A, Series 2016-A2, 1.37%, 06/15/21		345,000		342,890
Chase Issuance Trust, Class A, Series 2017-A1, 1.46%, 01/18/22^@		900,000		904,096
Citibank Credit Card Issuance Trust, Class A2, Series 2017-A2, 1.74%, 01/19/21		640,000		640,980
Citibank Credit Card Issuance Trust, Class A4, Series 2013-A4, 1.64%, 07/24/20^@		500,000		501,890
Citibank Credit Card Issuance Trust, Class A8, Series 2014-A8, 1.73%, 04/09/20		595,000		596,317
Discover Card Execution Note Trust, Class A1, Series 2013-A1, 1.46%, 08/17/20^@		845,000		846,085
Discover Card Execution Note Trust, Class A6, Series 2013-A6, 1.61%, 04/15/21^@		840,000		844,002
Fifth Third Auto Trust, Class A3, Series 2014-2, 0.89%, 11/15/18		8,045		8,044
Ford Credit Auto Owner Trust, Class A3, Series 2014-B, 0.90%, 10/15/18		55,027		55,011
Ford Credit Auto Owner Trust, Class C, Series 2014-A, 1.90%, 09/15/19		445,000		446,027

Investments	Principal		Value
ASSET BACKED SECURITIES (continued)

Diversified Financial Services (continued)
Honda Auto Receivables Owner Trust, Class A3, Series 2014-2, 0.77%, 03/19/18	$	5,089	$	5,087
Honda Auto Receivables Owner Trust, Class A3, Series 2014-3, 0.88%, 06/15/18		138,652		138,605
Honda Auto Receivables Owner Trust, Class A3, Series 2015-1, 1.05%, 10/15/18		612,374		611,840
Honda Auto Receivables Owner Trust, Class A3, Series 2016-4, 1.21%, 12/18/20		680,000		674,699
Hyundai Auto Receivables Trust, Class A2A, Series 2015-C, 0.99%, 11/15/18		256,528		256,349
Hyundai Auto Receivables Trust, Class A3, Series 2015-B, 1.12%, 11/15/19		975,816		974,009
Nissan Auto Receivables Owner Trust, Class A2A, Series 2015-C, 0.87%, 11/15/18		187,986		187,852
Nissan Auto Receivables Owner Trust, Class A3, Series 2015-A, 1.05%, 10/15/19		692,090		690,935
Nissan Auto Receivables Owner Trust, Class A3, Series 2016-C, 1.18%, 01/15/21		625,000		620,654
Synchrony Credit Card Master Note Trust, Class A, Series 2015-2, 1.60%, 04/15/21		400,000		400,125
Toyota Auto Receivables, Class A2A, Series 2016-C, 1.00%, 01/15/19		719,154		718,392
Toyota Auto Receivables Owner Trust, Class A2A, Series 2016-A, 1.03%, 07/16/18		488,162		487,970
Verizon Owner Trust, Class A, Series 2016-1A, 1.42%, 01/20/21^‡		665,000		662,542
World Financial Network Credit Card Master Trust, Class A, Series 2012-B, 1.76%, 05/17/21		450,000		450,040
Total Asset Backed Securities
(Cost $19,505,848)				19,518,676

See accompanying Notes to Financial Statements.

105

ADVISORSHARES SAGE CORE RESERVES ETF

Schedule of Investments (continued)

June 30, 2017

Investments	Principal		Value
FOREIGN BONDS — 10.2%

Banks — 5.0%
Bank of Nova Scotia (The), 1.38%, 12/18/17 (Canada)	$	840,000	$	839,673
BNP Paribas SA, Series MTN, 2.38%, 09/14/17 (France)		946,000		947,626
Caisse Centrale Desjardins, 1.55%, 09/12/17 (Canada)^‡		860,000		860,074
Royal Bank of Canada, Series MTN, 1.50%, 01/16/18 (Canada)		285,000		285,117
Royal Bank of Canada, Series GMTN, 1.80%, 07/30/18 (Canada)		630,000		630,910
Sumitomo Mitsui Financial Group, Inc., 2.90%, 03/09/21 (Japan)^@		615,000		633,832
Total Banks				4,197,232

Beverages — 1.0%
Anheuser-Busch InBev Finance, Inc., 1.90%, 02/01/19 (Belgium)		840,000		842,203

Diversified Financial Services — 0.5%
Nomura Holdings, Inc., Series GMTN, 2.75%, 03/19/19 (Japan)		415,000		419,327

Mining — 1.0%
Glencore Finance Canada Ltd., 2.70%, 10/25/17 (Switzerland)^‡		840,000		841,323

Oil & Gas — 1.0%
BP Capital Markets PLC, 1.38%, 05/10/18 (United Kingdom)		500,000		499,033
Petroleos Mexicanos, 3.50%, 01/30/23 (Mexico)		385,000		369,985
Total Oil & Gas				869,018

Sovereign — 0.7%
Export-Import Bank of Korea, 1.75%, 02/27/18 (South Korea)		620,000		619,489

Telecommunications — 1.0%
Vodafone Group PLC, 1.50%, 02/19/18 (United Kingdom)		845,000		844,933

Total Foreign Bonds
(Cost $8,638,936)				8,633,525

Investments	Principal		Value
MORTGAGE BACKED SECURITIES — 9.4%

Commercial Mortgage Backed Securities — 9.4%
Banc of America Commercial Mortgage Trust, Class AM, Series 2007-4, 6.16%, 02/10/51^@	$	139,426	$	139,474
Bear Stearns Commercial Mortgage Securities Trust, Class A4, Series 2007-T28, 5.74%, 09/11/42^@		172,650		172,973
Bear Stearns Commercial Mortgage Securities Trust, Class A4, Series 2007-PW17, 5.69%, 06/11/50^@		251,337		252,610
CD Mortgage Trust, Class A4, Series 2007-CD5, 5.89%, 11/15/44^@		101,341		101,428
CFCRE Commercial Mortgage Trust, Class A2, Series 2011-C2, 3.06%, 12/15/47		1,343		1,342
COMM Mortgage Trust, Class A2, Series 2013-CR6, 2.12%, 03/10/46		491,489		492,416
COMM Mortgage Trust, Class A2, Series 2013-LC13, 3.01%, 08/10/46		415,000		420,942
Fannie Mae Connecticut Avenue Securities, Class 1M1, Series 2014-C02, 2.17%, 05/25/24^@		363,246		364,836
Fannie Mae Connecticut Avenue Securities, Class 1M1, Series 2014-C03, 2.42%, 07/25/24^@		375,290		375,916
Fannie Mae Connecticut Avenue Securities, Class 1M1, Series 2016-C04, 2.67%, 01/25/29^@		1,339,893		1,356,881
Fannie Mae Connecticut Avenue Securities, Class 1M1, Series 2016-C06, 2.52%, 04/25/29^@		1,192,674		1,209,508
Fannie Mae Connecticut Avenue Securities, Class 1M1, Series 2017-C03, 2.17%, 10/25/29^@		817,158		821,356

See accompanying Notes to Financial Statements.

106

ADVISORSHARES SAGE CORE RESERVES ETF

Schedule of Investments (continued)

June 30, 2017

Investments	Principal		Value
MORTGAGE BACKED SECURITIES (continued)

Commercial Mortgage Backed Securities (continued)
Freddie Mac REMICS, Class ED, Series 2010-3645, 2.50%, 12/15/20	$	419,926	$	422,429
Freddie Mac Structured Agency Credit Risk Debt Notes, Class M2, Series 2014-DN3, 3.62%, 08/25/24^@		88,525		88,916
HILT Mortgage Trust, Class C, Series 2014-ORL, 2.76%, 07/15/29^@^‡		580,000		572,964
HILT Mortgage Trust, Class XEXT, Series 2014-ORL, 1.10%, 07/15/29^@^‡(a)		6,598,125		6,186
LB-UBS Commercial Mortgage Trust, Class A3, Series 2007-C7, 5.87%, 09/15/45^@		187,581		188,770
Morgan Stanley Capital I Trust, Class A4, Series 2007-IQ16, 5.81%, 12/12/49		89,465		89,729
WFRBS Commercial Mortgage Trust, Class A2, Series 2013-C13, 1.96%, 05/15/45		845,000		846,707
Total Mortgage Backed Securities
(Cost $7,893,164)				7,925,383

U.S. TREASURY NOTES — 6.5%
U.S. Treasury Note, 0.88%, 01/15/18		1,690,000		1,687,447
U.S. Treasury Note, 1.25%, 11/30/18		3,800,000		3,795,546
Total U.S. Treasury Notes
(Cost $5,484,781)				5,482,993

U.S. TREASURY BILL — 0.1%
U.S. Treasury Bill, 0.99%, 11/02/17^(b)
(Cost $99,666)		100,000		99,649

Investments	Shares		Value
MONEY MARKET FUND — 6.3%
JPMorgan U.S. Government Money Market Fund — Institutional Class, 0.82%^(c)
(Cost $5,301,093)		5,301,093	$	5,301,093

Total Investments – 104.2%
(Cost $87,959,209)				88,075,447
Liabilities in Excess of Other Assets – (4.2%)				(3,556,078	)
Net Assets — 100.0%			$	84,519,369

LP — Limited Partnership

PLC — Public Limited Company

REITS — Real Estate Investment Trusts

@	Variable rate instrument. The interest rate shown reflects the rate in effect at June 30, 2017.
‡	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.
(a)	Security fair valued as determined in good faith in accordance with the procedures established by the Board of Trustees.
(b)	Represents a zero coupon bond. Rate shown reflects the effective yield.
(c)	Rate shown reflects the 7-day yield as of June 30, 2017.

See accompanying Notes to Financial Statements.

107

ADVISORSHARES SAGE CORE RESERVES ETF

Schedule of Investments (continued)

June 30, 2017

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of
	Net Assets
Auto Manufacturers		3.0	%
Banks		16.7
Beverages		1.0
Biotechnology		0.8
Building Materials		0.5
Chemicals		1.3
Commercial Mortgage Backed Securities		9.4
Computers		1.0
Diversified Financial Services		27.8
Electric		1.7
Food		1.3
Healthcare – Services		0.4
Home Builders		1.0
Home Furnishings		1.0
Insurance		1.0
Internet		1.0
Media		1.0
Mining		1.0
Miscellaneous Manufacturing		0.9
Oil & Gas		3.5
Pharmaceuticals		2.0
Pipelines		1.2
REITS		1.9
Retail		4.8
Semiconductors		1.2
Software		1.0
Sovereign		0.7
Telecommunications		2.9
Transportation		0.3
U.S. Treasury Bill		0.1
U.S. Treasury Notes		6.5
Money Market Fund		6.3
Total Investments		104.2
Liabilities in Excess of Other Assets		(4.2	)
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

108

ADVISORSHARES STAR GLOBAL BUY-WRITE ETF

Schedule of Investments

June 30, 2017

Investments	Shares/ Contracts			Value
EXCHANGE TRADED FUNDS — 94.1%

Asset Allocation Fund — 2.0%
SPDR Bloomberg Barclays Convertible Securities ETF		7,197		$	357,115

Debt Fund — 14.9%
PowerShares Fundamental High Yield Corporate Bond Portfolio		45,261			860,864
SPDR Doubleline Total Return Tactical ETF		17,649			868,508
Vanguard Intermediate-Term Bond ETF		10,328			873,026
Total Debt Fund					2,602,398

Equity Fund — 77.2%
Financial Select Sector SPDR Fund		27,526			679,067
iShares MSCI EAFE ETF		25,175			1,641,410
iShares MSCI Emerging Markets ETF		20,971			867,990
iShares Russell 2000 ETF		7,386			1,040,835
SPDR S&P 500 ETF Trust^(a)		36,203			8,753,885
Vanguard REIT ETF		6,067			504,956
Total Equity Fund					13,488,143
Total Exchange Traded Funds
(Cost $14,948,424)					16,447,656

MONEY MARKET FUND — 5.6%
BlackRock Liquidity Funds T-Fund Portfolio, Institutional Class, 0.84%^(b)(Cost $981,441)		981,441			981,441

PURCHASED PUT OPTION — 0.4%
SPDR S&P 500 ETF Trust, Option expiring 09/15/17, Strike Price $244.00 (Cost $63,248)		143			77,434

Total Investments Before Written Options – 100.1%
(Cost $15,993,113)					17,506,531

WRITTEN CALL OPTIONS — (0.0)%^**
iShares MSCI Emerging Markets ETF, expiring 07/21/17, Strike Price $42.50		(105	)		(1,522	)
SPDR S&P 500 ETF Trust, expiring 07/21/17, Strike Price $248.00		(217	)		(2,496	)
Total Written Call Options
[Premiums Received $(16,977)]					(4,018	)

Investments	Value
Total Investments – 100.1%
(Cost $15,976,136)	$	17,502,513
Liabilities in Excess of Other Assets – (0.1%)		(26,002	)
Net Assets — 100.0%	$	17,476,511

ETF — Exchange Traded Fund

**	Less than 0.05%.
(a)	All or a portion of this security has been pledged as collateral for option contracts. The aggregate market value of the collateral was $2,302,903 as of June 30, 2017.
(b)	Rate shown reflects the 7-day yield as of June 30, 2017.

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of
	Net Assets
Asset Allocation Fund		2.0	%
Debt Fund		14.9
Equity Fund		77.2
Purchased Put Option		0.4
Written Call Option		(0.0	)**
Money Market Fund		5.6
Total Investments		100.1
Liabilities in Excess of Other Assets		(0.1	)
Net Assets		100.0	%

Less than 0.05%.

See accompanying Notes to Financial Statements.

109

ADVISORSHARES WILSHIRE BUYBACK ETF

(Formerly AdvisorShares TrimTabs Float Shrink ETF)

Schedule of Investments

June 30, 2017

Investments	Shares		Value
COMMON STOCKS — 97.8%

Aerospace/Defense — 2.9%
Raytheon Co.		6,029	$	973,563
Spirit AeroSystems Holdings, Inc., Class A		55,119		3,193,595
Total Aerospace/Defense				4,167,158

Airlines — 4.9%
Delta Air Lines, Inc.		66,921		3,596,334
United Continental Holdings, Inc.*		44,935		3,381,359
Total Airlines				6,977,693

Apparel — 1.3%
Carter's, Inc.		20,418		1,816,181

Auto Parts & Equipment — 3.1%
Goodyear Tire & Rubber Co. (The)		56,013		1,958,214
Lear Corp.		17,422		2,475,318
Total Auto Parts & Equipment				4,433,532

Banks — 7.3%
Citigroup, Inc.		22,387		1,497,242
Goldman Sachs Group, Inc. (The)		6,581		1,460,324
JPMorgan Chase & Co.		10,482		958,055
M&T Bank Corp.		7,109		1,151,302
Morgan Stanley		37,635		1,677,016
PNC Financial Services Group, Inc. (The)		8,656		1,080,875
State Street Corp.		13,751		1,233,877
US Bancorp		16,326		847,646
Zions Bancorporation		11,616		510,059
Total Banks				10,416,396

Building Materials — 1.1%
Masco Corp.		42,730		1,632,713

Chemicals — 3.0%
Albemarle Corp.		6,616		698,253
Ashland Global Holdings, Inc.		6,131		404,094
Eastman Chemical Co.		14,102		1,184,427
Valvoline, Inc.		16,825		399,089
WR Grace & Co.		21,887		1,576,083
Total Chemicals				4,261,946

Commercial Services — 4.7%
Robert Half International, Inc.		29,721		1,424,528
Sabre Corp.^(a)		36,058		784,983
ServiceMaster Global Holdings, Inc.*		16,667		653,180
United Rentals, Inc.*		21,140		2,382,689
Western Union Co. (The)		78,522		1,495,844
Total Commercial Services				6,741,224

Investments	Shares		Value
COMMON STOCKS (continued)

Computers — 1.1%
NCR Corp.*		38,238	$	1,561,640

Diversified Financial Services — 6.7%
American Express Co.		21,207		1,786,478
Ameriprise Financial, Inc.		14,117		1,796,953
BlackRock, Inc.		1,183		499,711
ETRADE Financial Corp.		22,810		867,464
FNF Group		15,361		688,633
Franklin Resources, Inc.		38,477		1,723,385
Navient Corp.		133,249		2,218,596
Total Diversified Financial Services				9,581,220

Electric — 0.5%
WEC Energy Group, Inc.		11,235		689,604

Electronics — 0.5%
Amphenol Corp., Class A		9,602		708,820

Engineering & Construction — 0.5%
Jacobs Engineering Group, Inc.		12,505		680,147

Food — 4.5%
Campbell Soup Co.		19,003		991,006
Hormel Foods Corp.		25,059		854,763
JM Smucker Co. (The)		12,506		1,479,835
Post Holdings, Inc.*^(a)		8,542		663,286
Tyson Foods, Inc., Class A		37,970		2,378,061
Total Food				6,366,951

Hand/Machine Tools — 0.4%
Snap-on, Inc.		3,594		567,852

Healthcare – Products — 1.9%
DENTSPLY SIRONA, Inc.		27,413		1,777,459
Hologic, Inc.*		18,996		862,038
Total Healthcare – Products				2,639,497

Healthcare – Services — 5.0%
HCA Healthcare, Inc.*		47,756		4,164,323
Humana, Inc.		4,589		1,104,205
Quest Diagnostics, Inc.		17,264		1,919,067
Total Healthcare – Services				7,187,595

Home Builders — 1.7%
NVR, Inc.*		978		2,357,577

Housewares — 0.7%
Toro Co. (The)		13,848		959,528

Insurance — 11.9%
Aflac, Inc.		12,675		984,594

See accompanying Notes to Financial Statements.

110

ADVISORSHARES WILSHIRE BUYBACK ETF

(Formerly AdvisorShares TrimTabs Float Shrink ETF)

Schedule of Investments (continued)

June 30, 2017

Investments	Shares		Value
COMMON STOCKS (continued)

Insurance (continued)
Alleghany Corp.*		626	$	372,345
Assurant, Inc.		21,690		2,249,036
Axis Capital Holdings Ltd.		27,367		1,769,550
Cincinnati Financial Corp.		5,126		371,379
Hartford Financial Services Group, Inc. (The)		34,452		1,811,142
Lincoln National Corp.		25,162		1,700,448
Principal Financial Group, Inc.		8,880		568,942
Prudential Financial, Inc.		10,171		1,099,892
RenaissanceRe Holdings Ltd. (Bermuda)		10,145		1,410,662
Torchmark Corp.		11,472		877,608
Travelers Cos., Inc. (The)		10,473		1,325,149
Voya Financial, Inc.		47,604		1,756,111
WR Berkley Corp.		9,703		671,156
Total Insurance				16,968,014

Internet — 0.4%
TripAdvisor, Inc.*		15,658		598,136

Iron/Steel — 0.6%
Steel Dynamics, Inc.		21,800		780,658

Media — 2.0%
AMC Networks, Inc., Class A*^(a)		41,487		2,215,820
News Corp., Class A		46,641		638,982
Total Media				2,854,802

Miscellaneous Manufacturing — 1.3%
Donaldson Co., Inc.		15,287		696,170
Eaton Corp. PLC		14,810		1,152,662
Total Miscellaneous Manufacturing				1,848,832

Oil & Gas — 2.2%
Cabot Oil & Gas Corp.		30,657		768,878
Helmerich & Payne, Inc.^(a)		44,674		2,427,585
Total Oil & Gas				3,196,463

Packaging & Containers — 0.7%
Sonoco Products Co.^(a)		20,484		1,053,287

Pharmaceuticals — 8.9%
AbbVie, Inc.		12,988		941,760
AmerisourceBergen Corp.^(a)		48,478		4,582,625
Bristol-Myers Squibb Co.		13,281		740,017
Cardinal Health, Inc.		28,432		2,215,422
McKesson Corp.		19,486		3,206,227

Investments	Shares		Value
COMMON STOCKS (continued)

Pharmaceuticals (continued)
Merck & Co., Inc.		14,360	$	920,332
Total Pharmaceuticals				12,606,383

REITS — 0.3%
Host Hotels & Resorts, Inc.		25,582		467,383

Retail — 10.1%
Bed Bath & Beyond, Inc.		55,936		1,700,454
Best Buy Co., Inc.		33,187		1,902,611
Burlington Stores, Inc.*		8,453		777,592
Foot Locker, Inc.		19,376		954,849
Genuine Parts Co.		7,962		738,555
Kohl's Corp.^(a)		57,434		2,220,973
Macy's, Inc.		31,594		734,245
PVH Corp.		13,212		1,512,774
Ross Stores, Inc.		16,665		962,070
Signet Jewelers Ltd.^(a)		46,093		2,914,921
Total Retail				14,419,044

Semiconductors — 0.6%
Texas Instruments, Inc.		10,764		828,075

Shipbuilding — 0.8%
Huntington Ingalls Industries, Inc.		6,165		1,147,676

Software — 4.3%
Adobe Systems, Inc.*		7,681		1,086,401
Akamai Technologies, Inc.*		21,535		1,072,658
Cerner Corp.*		19,905		1,323,085
Jack Henry & Associates, Inc.		10,056		1,044,517
Red Hat, Inc.*		16,183		1,549,522
Total Software				6,076,183

Telecommunications — 0.6%
Juniper Networks, Inc.		28,150		784,822

Toys/Games/Hobbies — 0.6%
Hasbro, Inc.		7,615		849,149

Transportation — 0.7%
C.H. Robinson Worldwide, Inc.^(a)		15,382		1,056,436

Total Common Stocks
(Cost $131,088,464)				139,282,617

MONEY MARKET FUND — 2.2%
Wells Fargo Advantage Government Money Market Fund – Institutional Class, 0.80%^(b) (Cost $3,136,141)		3,136,141		3,136,141

See accompanying Notes to Financial Statements.

111

ADVISORSHARES WILSHIRE BUYBACK ETF

(Formerly AdvisorShares TrimTabs Float Shrink ETF)

Schedule of Investments (continued)

June 30, 2017

Investments	Principal		Value
REPURCHASE AGREEMENTS — 3.8%^(c)
BNP Paribas Securities Corp., dated 06/30/17, due 07/03/17, 1.11%, total to be received $228,646, (collateralized by various U.S. Government Agency Obligations, 0.00% – 9.00%, 07/28/17 – 09/09/49, totaling $232,367)	$	228,625	$	228,625
Citigroup Global Markets, Inc., dated 06/30/17, due 07/03/17, 1.10%, total to be received $1,132,726, (collateralized by various U.S. Government Agency Obligations, 0.00% – 8.75%, 07/27/17 – 07/01/47, totaling $1,151,647)		1,132,622		1,132,622
Daiwa Capital Markets America, dated 06/30/17, due 07/03/17, 1.15%, total to be received $1,264,866, (collateralized by various U.S. Government Agency Obligations, 0.00% – 6.50%, 07/13/17 – 12/01/51, totaling $1,286,504)		1,264,745		1,264,745
HSBC Securities USA, Inc., dated 06/30/17, due 07/03/17, 1.06%, total to be received $278,312, (collateralized by various U.S. Government Agency Obligations, 0.00% – 7.25%, 07/15/17 – 01/15/37, totaling $283,467)		278,287		278,287
Nomura Securities International, Inc., dated 06/30/17, due 07/03/17, 1.13%, total to be received $1,264,864, (collateralized by various U.S. Government Agency Obligations, 0.00% – 9.50%, 07/10/17 – 06/20/67, totaling $1,286,483)		1,264,745		1,264,745

Investments	Principal		Value
REPURCHASE AGREEMENTS (continued)
RBC Dominion Securities, Inc., dated 06/30/17, due 07/03/17, 1.08%, total to be received $1,264,859, (collateralized by various U.S. Government Agency Obligations, 1.38% – 7.00%, 02/19/19 – 06/01/47, totaling $1,286,093)	$	1,264,745	$	1,264,745
Total Repurchase Agreements
(Cost $5,433,769)				5,433,769

Total Investments — 103.8%
(Cost $139,658,374)				147,852,527
Liabilities in Excess of Other Assets — (3.8%)				(5,453,007	)
Net Assets — 100.0%			$	142,399,520

PLC — Public Limited Company

REITS — Real Estate Investment Trusts

*	Non-income producing security.
(a)	All or a portion of security is on loan. The aggregate market value of the securities on loan is $13,805,026; the aggregate market value of the collateral held by the fund is $14,093,751. The aggregate market value of the collateral includes non-cash U.S. Treasury securities collateral having a value of $8,659,982.
(b)	Rate shown reflects the 7-day yield as of June 30, 2017.
(c)	Collateral received from brokers for securities lending was invested in these short-term investments.

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of
	Net Assets
Aerospace/Defense		2.9	%
Airlines		4.9
Apparel		1.3
Auto Parts & Equipment		3.1
Banks		7.3
Building Materials		1.1
Chemicals		3.0
Commercial Services		4.7
Computers		1.1

See accompanying Notes to Financial Statements.

112

ADVISORSHARES WILSHIRE BUYBACK ETF

(Formerly AdvisorShares TrimTabs Float Shrink ETF)

Schedule of Investments (continued)

June 30, 2017

SUMMARY OF SCHEDULE OF INVESTMENTS (continued)

	% of
	Net Assets
Diversified Financial Services		6.7	%
Electric		0.5
Electronics		0.5
Engineering & Construction		0.5
Food		4.5
Hand/Machine Tools		0.4
Healthcare – Products		1.9
Healthcare – Services		5.0
Home Builders		1.7
Housewares		0.7
Insurance		11.9
Internet		0.4
Iron/Steel		0.6
Media		2.0
Miscellaneous Manufacturing		1.3
Oil & Gas		2.2
Packaging & Containers		0.7
Pharmaceuticals		8.9
REITS		0.3
Retail		10.1
Semiconductors		0.6
Shipbuilding		0.8
Software		4.3
Telecommunications		0.6
Toys/Games/Hobbies		0.6
Transportation		0.7
Money Market Fund		2.2
Repurchase Agreements		3.8
Total Investments		103.8
Liabilities in Excess of Other Assets		(3.8	)
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

113

ADVISORSHARES TRUST

Statements of Assets and Liabilities

June 30, 2017

	AdvisorShares Cornerstone Small Cap ETF		AdvisorShares Dorsey Wright ADR ETF(1)			AdvisorShares Focused Equity ETF
ASSETS
Investments, at Cost	$	3,777,020	$	60,903,936		$	11,100,444
Investments in Affiliates, at Cost (Note 9)		—		—			—
Repurchase Agreements, at Cost (Note 3)		418,609		6,644,407			383,967
Total Cost of Investments		4,195,629		67,548,343			11,484,411
Investments, at Market Value (including securities on loan) (Note 3)(a)		4,291,638		65,164,730			12,165,387
Investments in Affiliates, at Market Value (Note 9)		—		—			—
Repurchase Agreements, at Market Value (Note 3)		418,609		6,644,407			383,967
Total Market Value of Investments		4,710,247		71,809,137			12,549,354
Cash		—		—			—
Cash collateral held at brokers		—		—			—
Dividends and Interest Receivable		4,089		111,882			4,774
Receivable from Securities Sold		—		—			—
Reclaim Receivable		—		8,710			—
Due from Investment Advisor		7,433		—			1,863
Prepaid Expenses		9,776		10,555			5,666
Total Assets		4,731,545		71,940,284			12,561,657
LIABILITIES
Cash collateral for securities on loan (b)		418,609		6,644,407			383,967
Advisory Fees Payable		—		49,733			—
Trustee Fees Payable		27		29			28
Payable for Securities Purchased		—		—			—
CCO Fees Payable		180		45			127
Accrued Expenses		26,405		61,233			27,928
Total Liabilities		445,221		6,755,447			412,050
NET ASSETS	$	4,286,324	$	65,184,837		$	12,149,607
COMPONENTS OF NET ASSETS
Capital Stock at Zero Par Value	$	3,674,626	$	64,073,671		$	11,090,289
Undistributed (Accumulated) Net Investment Income (Loss)		424		27,111			15,421
Undistributed (Accumulated) Net Gain (Loss) on investments, swaps, short sales, options written, futures, and foreign currency transactions		96,656		(3,176,739	)		(21,046	)
Unrealized Appreciation (Depreciation) on investments, swaps, short sales, options written, futures, and foreign currency translations		514,618		4,260,794			1,064,943
NET ASSETS	$	4,286,324	$	65,184,837		$	12,149,607
SHARES ISSUED AND OUTSTANDING
Shares Outstanding (Unlimited Shares Authorized)		136,476		1,400,000			425,000
Net Asset Value (NAV) Per Share	$	31.41	$	46.56		$	28.59

(a) Market value of securities on loan	$	859,454	$	6,488,444		$	895,825
(b) Non-cash collateral for securities on loan	$	461,417	$	—		$	530,727

See accompanying Notes to Financial Statements.

114

ADVISORSHARES TRUST

Statements of Assets and Liabilities

June 30, 2017

AdvisorShares Gartman Gold/Euro ETF (Consolidated)			AdvisorShares Gartman Gold/Yen ETF (Consolidated)			AdvisorShares KIM Korea Equity ETF		AdvisorShares Madrona Domestic ETF			AdvisorShares Madrona Global Bond ETF			AdvisorShares Madrona International ETF

$	4,324,052		$	3,247,432		$	8,381,919	$	23,908,921		$	15,181,738		$	9,858,723
	4,974,000			4,974,000			—		—			2,095,675			—
	—			—			—		705,033			615,801			1,915,339
	9,298,052			8,221,432			8,381,919		24,613,954			17,893,214			11,774,062
	4,324,052			3,247,432			9,785,551		26,787,569			15,294,361			10,494,807
	4,976,500			4,976,500			—		—			2,226,968			—
	—			—			—		705,033			615,801			1,915,339
	9,300,552			8,223,932			9,785,551		27,492,602			18,137,130			12,410,146
	—			—			128,414		—			—			182,859
	5,809,064			7,252,343			—		—			—			—
	229			172			3,726		24,794			5,471			18,051
	—			—			119,760		—			—			270,275
	—			—			—		—			—			2,128
	2,950			1,791			7,232		—			—			—
	10,255			9,919			9,805		12,114			9,559			9,502
	15,123,050			15,488,157			10,054,488		27,529,510			18,152,160			12,892,961

	—			—			—		705,033			615,801			1,915,339
	—			—			—		20,643			7,627			6,013
	29			29			28		30			29			28
	—			—			69,706		—			—			—
	107			139			95		125			146			156
	59,348			60,501			24,981		67,299			62,345			69,333
	59,484			60,669			94,810		793,130			685,948			1,990,869
$	15,063,566		$	15,427,488		$	9,959,678	$	26,736,380		$	17,466,212		$	10,902,092

$	15,396,054		$	16,359,284		$	8,315,679	$	27,336,951		$	18,132,524		$	16,119,691
	(22,020	)		(18,167	)		90,430		39,060			17,255			105,682
	186,661			(974,605	)		150,013		(3,518,279	)		(927,483	)		(5,959,365	)
	(497,129	)		60,976			1,403,556		2,878,648			243,916			636,084
$	15,063,566		$	15,427,488		$	9,959,678	$	26,736,380		$	17,466,212		$	10,902,092

	1,300,000			1,375,000			350,000		550,000			675,000			400,000
$	11.59		$	11.22		$	28.46	$	48.61		$	25.88		$	27.26

$	—		$	—		$	—	$	1,093,300		$	601,095		$	2,126,494
$	—		$	—		$	—	$	428,159		$	—		$	301,380

See accompanying Notes to Financial Statements.

115

ADVISORSHARES TRUST

Statements of Assets and Liabilities

June 30, 2017

	AdvisorShares Meidell Tactical Advantage ETF			AdvisorShares Newfleet Multi- Sector Income ETF			AdvisorShares Pacific Asset Enhanced Floating Rate ETF
ASSETS
Investments, at Cost	$	13,616,611		$	259,105,666		$	27,224,274
Investments in Affiliates, at Cost (Note 9)		—			—			—
Repurchase Agreements, at Cost (Note 3)		1,838,128			1,889,819			—
Total Cost of Investments		15,454,739			260,995,485			27,224,274
Investments, at Market Value (including securities on loan) (Note 3)(a)		13,717,784			259,634,792			27,092,500
Investments in Affiliates, at Market Value (Note 9)		—			—			—
Repurchase Agreements, at Market Value (Note 3)		1,838,128			1,889,819			—
Total Market Value of Investments		15,555,912			261,524,611			27,092,500
Cash		—			538,227			49,115
Cash collateral held at brokers		—			—			—
Dividends and Interest Receivable		2,263			1,034,382			73,831
Receivable from Securities Sold		3,242,837			1,139,090			631
Prepaid Expenses		8,100			24,407			28,149
Total Assets		18,809,112			264,260,717			27,244,226
LIABILITIES
Unrealized Depreciation on Swaps Contracts		—			—			23,043
Interest Payable		—			—			—
Cash collateral for securities on loan (b)		1,838,128			1,889,819			—
Advisory Fees Payable		8,486			141,600			16,883
Trustee Fees Payable		28			58			30
Securities Sold, Not Yet Purchased (c)		—			—			—
Payable for Securities Purchased		3,289,109			4,069,114			—
Options Written, at value (d)		—			—			—
Capital Shares Payable		—			—			—
CCO Fees Payable		158			6			92
Due to Custodian		—			—			—
Due to Broker		—			—			—
Dividend Payable on Securities Sold, Not Yet Purchased		—			—			—
Accrued Expenses		59,912			154,997			61,111
Total Liabilities		5,195,821			6,255,594			101,159
NET ASSETS	$	13,613,291		$	258,005,123		$	27,143,067
COMPONENTS OF NET ASSETS
Capital Stock at Zero Par Value	$	14,760,375		$	262,896,130		$	27,488,371
Undistributed (Accumulated) Net Investment Income (Loss)		(11,870	)		109,347			18,763
Undistributed (Accumulated) Net Gain (Loss) on investments, swaps, short sales, options written, futures, and foreign currency transactions		(1,236,387	)		(5,529,480	)		(209,250	)
Unrealized Appreciation (Depreciation) on investments, swaps, short sales, options written, futures, and foreign currency translations		101,173			529,126			(154,817	)
NET ASSETS	$	13,613,291		$	258,005,123		$	27,143,067
SHARES ISSUED AND OUTSTANDING
Shares Outstanding (Unlimited Shares Authorized)		450,000			5,300,000			550,000
Net Asset Value (NAV) Per Share	$	30.25		$	48.68		$	49.35

(a) Market value of securities on loan	$	1,798,832		$	5,710,234		$	—
(b) Non-cash collateral for securities on loan	$	—		$	3,945,764		$	—
(c) Proceeds Received from Securities Sold, Not Yet Purchased	$	—		$	—		$	—
(d) Premiums Received for Options Written	$	—		$	—		$	—

(1) Formerly known as, AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF.

(2) Formerly known as, AdvisorShares TrimTabs Float Shrink ETF.

See accompanying Notes to Financial Statements.

116

ADVISORSHARES TRUST

Statements of Assets and Liabilities

June 30, 2017

AdvisorShares Peritus High Yield ETF			AdvisorShares Ranger Equity Bear ETF			AdvisorShares Sage Core Reserves ETF			AdvisorShares STAR Global Buy-Write ETF			AdvisorShares Wilshire Buyback ETF(2)

$	173,774,217		$	31,596,510		$	87,959,209		$	15,993,113		$	134,224,605
	—			67,115,250			—			—			—
	25,627,454			—			—			—			5,433,769
	199,401,671			98,711,760			87,959,209			15,993,113			139,658,374
	173,674,615			31,596,510			88,075,447			17,506,531			142,418,758
	—			67,182,750			—			—			—
	25,627,454			—			—			—			5,433,769
	199,302,069			98,779,260			88,075,447			17,506,531			147,852,527
	383,837			79,609,147			—			—			—
	—			164,814,793			119,621			—			—
	2,397,255			77,119			387,763			43,362			147,969
	1,843,652			6,139,647			—			—			—
	69,482			13,866			38,959			10,531			10,737
	203,996,295			349,433,832			88,621,790			17,560,424			148,011,233

	—			—			—			—			—
	—			3,060			—			—			—
	25,627,454			—			—			—			5,433,769
	165,621			219,908			15,832			16,428			93,974
	51			49			38			29			45
	—			172,804,979			—			—			—
	6,425,000			1,767,659			4,009,040			—			—
	—			—			—			4,018			—
	1,825,269			—			—			—			—
	4			18			13			148			16
	—			—			129			—			—
	—			—			—			1,148			—
	—			23,150			—			—			—
	142,954			110,592			77,369			62,142			83,909
	34,186,353			174,929,415			4,102,421			83,913			5,611,713
$	169,809,942		$	174,504,417		$	84,519,369		$	17,476,511		$	142,399,520

$	349,319,941		$	391,841,880		$	84,712,317		$	17,131,613		$	156,098,233
	313,082			(1,474,035	)		19,213			—			422,778
	(179,723,479	)		(210,372,937	)		(328,399	)		(1,181,479	)		(22,315,644	)
	(99,602	)		(5,490,491	)		116,238			1,526,377			8,194,153
$	169,809,942		$	174,504,417		$	84,519,369		$	17,476,511		$	142,399,520

	4,650,000			20,375,000			850,000			600,000			2,150,000
$	36.52		$	8.56		$	99.43		$	29.13		$	66.23

$	32,772,645		$	—		$	—		$	—		$	13,805,026
$	7,904,008		$	—		$	—		$	—		$	8,659,982
$	—		$	167,246,988		$	—		$	—		$	—
$	—		$	—		$	—		$	16,977		$	—

See accompanying Notes to Financial Statements.

117

ADVISORSHARES TRUST

Statements of Operations

Year Ended June 30, 2017

	AdvisorShares Cornerstone Small Cap ETF(1)			AdvisorShares Dorsey Wright ADR ETF(2)			AdvisorShares Focused Equity ETF(3)
INVESTMENT INCOME:
Dividend Income	$	31,824		$	816,714		$	66,464
Dividend Income from Affiliates		—			—			—
Interest Income		—			—			—
Securities lending income (net) (Note 3)		1,514			36,142			139
Foreign withholding tax		—			(75,391	)		—
Total Investment Income		33,338			777,465			66,603

EXPENSES:
Advisory Fees		21,889			208,458			48,546
Accounting & Administration Fees		10,038			77,227			7,035
Professional Fees		62,035			49,116			52,845
Exchange Listing Fees		13,214			9,213			5,892
Custody Fees		2,571			3,029			1,827
Report to Shareholders		9,815			23,782			6,212
Trustee Fees		4,531			4,476			3,586
CCO Fees		1,864			2,672			1,890
Pricing Fees		4,156			6,769			3,219
Transfer Agent Fees		253			2,085			485
Insurance Fees		102			878			—
Licensing Fees		—			8,890			—
Miscellaneous Fees		1,157			1,007			830
Total Expenses		131,625			397,602			132,367

Advisory Fees Waived/Recoupment		(21,889	)		(50,172	)		(48,546	)
Expense Reimbursement		(79,428	)		—			(35,276	)
Net Expenses		30,308			347,430			48,545
Net Investment Income (Loss)		3,030			430,035			18,058

REALIZED AND UNREALIZED GAIN (LOSS) ON:
Net Realized Gain (Loss) on:
Investments		96,656			(2,488,503	)		(21,046	)
Investments in Affiliates		—			—			—
In-Kind Redemptions		155,514			2,614,830			—
In-Kind Redemptions in Affiliates		—			—			—
Futures		—			—			—
Foreign Currency Transactions		—			—			—
Distributions by other Investment Companies		—			—			—
Net Change in Unrealized Appreciation (Depreciation) on:
Investments		514,618			2,996,898			1,064,943
Futures		—			—			—
Foreign Currency Translations		—			—			—
Net Realized and Unrealized Gain (Loss)		766,788			3,123,225			1,043,897
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	769,818		$	3,553,260		$	1,061,955

See accompanying Notes to Financial Statements.

118

ADVISORSHARES TRUST

Statements of Operations

Year Ended June 30, 2017

AdvisorShares Gartman Gold/Euro ETF (Consolidated)			AdvisorShares Gartman Gold/Yen ETF (Consolidated)			AdvisorShares KIM Korea Equity ETF(4)			AdvisorShares Madrona Domestic ETF			AdvisorShares Madrona Global Bond ETF			AdvisorShares Madrona International ETF

$	1,171		$	1,038		$	239,378		$	464,862		$	564,406		$	374,299
	37,367			37,367			—			—			155,551			—
	9,853			10,565			—			—			—			—
	—			—			—			1,871			59,676			27,361
	—			—			(25,943	)		—			—			(34,069	)
	48,391			48,970			213,435			466,733			779,633			367,591


	116,356			110,269			45,678			216,333			95,095			109,618
	82,391			82,611			6,929			83,767			75,458			80,317
	32,595			32,611			40,250			25,568			24,848			24,459
	7,306			7,306			5,763			8,016			7,953			7,953
	2,421			2,723			12,473			9,033			1,567			3,825
	6,186			6,748			7,190			4,857			3,723			2,597
	4,428			4,599			3,584			4,562			4,540			4,576
	2,985			3,060			1,840			3,409			3,055			2,761
	7,100			6,538			3,128			6,985			6,965			6,985
	1,587			1,504			408			2,029			1,427			1,028
	832			1,091			—			2,218			1,707			1,220
	—			—			—			—			—			—
	785			855			1,722			3,323			1,303			1,319
	264,972			259,915			128,965			370,100			227,641			246,658

	(116,356	)		(110,269	)		(45,678	)		(32,079	)		(46,960	)		(75,381	)
	(11,104	)		(19,329	)		(29,452	)		—			—			—
	137,512			130,317			53,835			338,021			180,681			171,277
	(89,121	)		(81,347	)		159,600			128,712			598,952			196,314



	—			—			150,013			(226,256	)		(93,089	)		519,967
	—			—			—			—			578			—
	—			—			—			2,793,069			109,391			705,543
	—			—			—			—			68,815			—
	(236,242	)		1,185,556			—			—			—			—
	—			—			(32,244	)		—			—			—
	—			—			—			144			6,494			236

	2,500			2,500			1,403,632			2,357,587			60,524			1,556,958
	(2,345,314	)		(1,116,820	)		—			—			—			—
	—			—			(76	)		—			—			—
	(2,579,056	)		71,236			1,521,325			4,924,544			152,713			2,782,704
$	(2,668,177	)	$	(10,111	)	$	1,680,925		$	5,053,256		$	751,665		$	2,979,018

See accompanying Notes to Financial Statements.

119

ADVISORSHARES TRUST

Statements of Operations

Year Ended June 30, 2017

	AdvisorShares Meidell Tactical Advantage ETF			AdvisorShares Newfleet Multi- Sector Income ETF			AdvisorShares Pacific Asset Enhanced Floating Rate ETF
INVESTMENT INCOME:
Dividend Income	$	197,306		$	52,890		$	13,381
Dividend Income from Affiliates		—			—			—
Interest Income		—			5,905,391			1,236,947
Securities lending income (net) (Note 3)		14,092			7,250			1,083
Foreign withholding tax		—			(154	)		—
Total Investment Income		211,398			5,965,377			1,251,411

EXPENSES:
Advisory Fees		185,204			1,703,032			259,203
Accounting & Administration Fees		75,404			163,569			53,210
Professional Fees		27,563			67,808			25,403
Exchange Listing Fees		7,993			7,951			8,550
Custody Fees		3,409			28,768			7,323
Report to Shareholders		2,987			37,493			4,008
Trustee Fees		4,531			4,673			4,509
CCO Fees		2,867			16,390			3,238
Pricing Fees		5,632			17,070			8,800
Transfer Agent Fees		1,158			19,652			2,047
Insurance Fees		1,326			17,969			1,717
Interest on Securities Sold, Not Yet Purchased		—			—			—
Dividend Expense		—			—			—
Miscellaneous Fees		1,226			13,965			1,656
Total Expenses		319,300			2,098,340			379,664

Advisory Fees Waived/Recoupment		(110,946	)		(133,302	)		(79,534	)
Expense Reimbursement		—			—			—
Net Expenses		208,354			1,965,038			300,130
Net Investment Income (Loss)		3,044			4,000,339			951,281

REALIZED AND UNREALIZED GAIN (LOSS) ON:
Net Realized Gain (Loss) on:
Investments		2,104,991			423,826			(46,254	)
Investments in Affiliates		2,663			—			—
In-Kind Redemptions		292,611			22			—
Options Written		—			—			—
Short Sales		—			—			—
Swaps		—			—			86,550
Distributions by other Investment Companies		—			2,843			—
Net Change in Unrealized Appreciation (Depreciation) on:
Investments		(331,296	)		1,504,734			286,168
Options Written		—			—			—
Short Sales		—			—			—
Swaps		—			—			(5,907	)
Net Realized and Unrealized Gain (Loss)		2,068,969			1,931,425			320,557
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	2,072,013		$	5,931,764		$	1,271,838

(1) Represents the period July 6, 2016 (commencement of operations) to June 30, 2017.

(2) Formerly known as, AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF.

(3) Represents the period September 20, 2016 (commencement of operations) to June 30, 2017.

(4) Represents the period September 28, 2016 (commencement of operations) to June 30, 2017.

(5) Formerly known as, AdvisorShares TrimTabs Float Shrink ETF.

See accompanying Notes to Financial Statements.

120

ADVISORSHARES TRUST

Statements of Operations

Year Ended June 30, 2017

AdvisorShares Peritus High Yield ETF			AdvisorShares Ranger Equity Bear ETF			AdvisorShares Sage Core Reserves ETF			AdvisorShares STAR Global Buy-Write ETF			AdvisorShares Wilshire Buyback ETF(5)

$	21,781		$	168,821		$	13,751		$	379,429		$	2,435,466
	—			790,624			—			—			—
	17,115,837			—			1,193,036			—			—
	125,513			—			851			—			19,501
	—			—			—			—			—
	17,263,131			959,445			1,207,638			379,429			2,454,967


	2,160,078			2,764,419			274,257			236,558			1,333,112
	86,098			76,204			78,827			75,326			76,812
	59,198			56,611			39,590			29,837			71,844
	7,952			7,953			7,421			7,953			9,213
	17,069			13,896			9,789			2,015			14,563
	40,895			30,143			11,609			3,508			19,504
	4,427			4,720			4,768			4,533			4,397
	13,210			12,547			6,907			2,884			10,146
	10,919			10,310			11,068			7,633			5,160
	14,729			13,823			6,857			1,314			11,110
	12,960			12,132			5,275			1,470			14,301
	—			810,690			—			—			—
	—			1,095,769			—			—			—
	11,720			13,588			5,102			1,185			7,856
	2,439,255			4,922,805			461,470			374,216			1,578,018

	—			—			(141,505	)		(50,044	)		(244,904	)
	—			—			—			—			—
	2,439,255			4,922,805			319,965			324,172			1,333,114
	14,823,876			(3,963,360	)		887,673			55,257			1,121,853



	(13,102,432	)		—			13,815			(390,549	)		(5,212,092	)
	—			(180,309	)		—			—			—
	1,015,644			—			—			1,126,996			20,594,895
	—			—			—			(76,074	)		—
	—			(28,269,378	)		—			—			—
	—			—			—			—			—
	987			—			—			4,193			—

	26,430,170			35,775			79,076			941,075			10,498,238
	—			—			—			(8,382	)		—
	—			(7,419,344	)		—			—			—
	—			—			—			—			—
	14,344,369			(35,833,256	)		92,891			1,597,259			25,881,041
$	29,168,245		$	(39,796,616	)	$	980,564		$	1,652,516		$	27,002,894

See accompanying Notes to Financial Statements.

121

ADVISORSHARES TRUST

Statements of Changes in Net Assets

	AdvisorShares Cornerstone Small Cap ETF			AdvisorShares Dorsey Wright ADR ETF(1)
	For the period July 6, 2016* to June 30, 2017			Year ended June 30, 2017			Year ended June 30, 2016

INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income (Loss)	$	3,030		$	430,035		$	70,747
Net Realized Gain (Loss)		252,170			126,327			483,995
Net Change in Unrealized Appreciation (Depreciation)		514,618			2,996,898			(688,575	)
Net Increase (Decrease) In Net Assets Resulting From Operations		769,818			3,553,260			(133,833	)
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income		(2,606	)		(482,641	)		(80,669	)
Net Realized Gains		—			—			—
Total Distributions		(2,606	)		(482,641	)		(80,669	)
CAPITAL STOCK TRANSACTIONS
Proceeds from Shares Issued		4,274,277			58,828,551			3,855,068
Value of Shares Redeemed		(755,165	)		(11,362,316	)		(4,536,081	)
Net Increase (Decrease) From Capital Stock Transactions		3,519,112			47,466,235			(681,013	)
Net Increase (Decrease) in Net Assets		4,286,324			50,536,854			(895,515	)
Net Assets:
Beginning of Year/Period		—			14,647,983			15,543,498
End of Year/Period	$	4,286,324		$	65,184,837		$	14,647,983
Undistributed (Accumulated) Net Investment Income (Loss)	$	424		$	27,111		$	57,841
Changes in Shares Outstanding
Shares Outstanding, Beginning of Year/Period		—			375,000			400,000
Shares Sold		161,476			1,300,000			100,000
Shares Repurchased		(25,000	)		(275,000	)		(125,000	)
Shares Outstanding, End of Year/Period		136,476			1,400,000			375,000

See accompanying Notes to Financial Statements.

122

ADVISORSHARES TRUST

Statements of Changes in Net Assets

AdvisorShares Focused Equity ETF			AdvisorShares Gartman Gold/Euro ETF (Consolidated)						AdvisorShares Gartman Gold/Yen ETF (Consolidated)						AdvisorShares KIM Korea Equity ETF
For the period September 20, 2016* to June 30, 2017			Year ended June 30, 2017			Year ended June 30, 2016			Year ended June 30, 2017			Year ended June 30, 2016			For the period September 28, 2016* to June 30, 2017



$	18,058		$	(89,121	)	$	(92,263	)	$	(81,347	)	$	(120,061	)	$	159,600
	(21,046	)		(236,242	)		(200,543	)		1,185,556			(3,173,447	)		117,769
	1,064,943			(2,342,814	)		1,833,062			(1,114,320	)		1,583,471			1,403,556
	1,061,955			(2,668,177	)		1,540,256			(10,111	)		(1,710,037	)		1,680,925

	(2,637	)		(1,243,425	)		—			(1,403,577	)		—			(37,280	)
	—			(47,955	)		(893,000	)		—			(512,262	)		—
	(2,637	)		(1,291,380	)		(893,000	)		(1,403,577	)		(512,262	)		(37,280	)

	11,090,289			13,543,686			12,811,077			2,404,697			19,557,212			8,316,033
	—			(16,953,392	)		(7,783,359	)		(9,812,402	)		(16,107,685	)		—
	11,090,289			(3,409,706	)		5,027,718			(7,407,705	)		3,449,527			8,316,033
	12,149,607			(7,369,263	)		5,674,974			(8,821,393	)		1,227,228			9,959,678

	—			22,432,829			16,757,855			24,248,881			23,021,653			—
$	12,149,607		$	15,063,566		$	22,432,829		$	15,427,488		$	24,248,881		$	9,959,678
$	15,421		$	(22,020	)	$	(92,253	)	$	(18,167	)	$	(120,077	)	$	90,430

	—			1,625,000			1,275,000			2,025,000			1,750,000			—
	425,000			1,000,000			975,000			200,000			1,600,000			350,000
	—			(1,325,000	)		(625,000	)		(850,000	)		(1,325,000	)		—
	425,000			1,300,000			1,625,000			1,375,000			2,025,000			350,000

See accompanying Notes to Financial Statements.

123

ADVISORSHARES TRUST

Statements of Changes in Net Assets

	AdvisorShares Madrona Domestic ETF
	Year ended June 30, 2017			Year ended June 30, 2016

INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income (Loss)	$	128,712		$	173,979
Net Realized Gain (Loss)		2,566,957			268,366
Net Change in Unrealized Appreciation (Depreciation)		2,357,587			(2,651,897	)
Net Increase (Decrease) In Net Assets Resulting From Operations		5,053,256			(2,209,552	)
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income		(174,323	)		(118,397	)
Total Distributions		(174,323	)		(118,397	)
CAPITAL STOCK TRANSACTIONS
Proceeds from Shares Issued		5,659,351			7,647,630
Value of Shares Redeemed		(11,247,204	)		(9,448,872	)
Net Increase (Decrease) From Capital Stock Transactions		(5,587,853	)		(1,801,242	)
Net Increase (Decrease) in Net Assets		(708,920	)		(4,129,191	)
Net Assets:
Beginning of Year/Period		27,445,300			31,574,491
End of Year/Period	$	26,736,380		$	27,445,300
Undistributed (Accumulated) Net Investment Income (Loss)	$	39,060		$	81,164
Changes in Shares Outstanding
Shares Outstanding, Beginning of Year/Period		675,000			725,000
Shares Sold		125,000			175,000
Shares Repurchased		(250,000	)		(225,000	)
Shares Outstanding, End of Year/Period		550,000			675,000

See accompanying Notes to Financial Statements.

124

ADVISORSHARES TRUST

Statements of Changes in Net Assets

AdvisorShares Madrona Global Bond ETF						AdvisorShares Madrona International ETF						AdvisorShares Meidell Tactical Advantage ETF
Year ended June 30, 2017			Year ended June 30, 2016			Year ended June 30, 2017			Year ended June 30, 2016			Year ended June 30, 2017			Year ended June 30, 2016



$	598,952		$	714,208		$	196,314		$	286,475		$	3,044		$	(47,388	)
	92,189			43,922			1,225,746			(3,103,349	)		2,400,265			(2,747,566	)
	60,524			419,244			1,556,958			(592,166	)		(331,296	)		138,383
	751,665			1,177,374			2,979,018			(3,409,040	)		2,072,013			(2,656,571	)

	(591,272	)		(721,446	)		(306,516	)		(242,962	)		—			(64,850	)
	(591,272	)		(721,446	)		(306,516	)		(242,962	)		—			(64,850	)

	1,933,092			2,474,466			—			1,330,179			—			5,034,610
	(5,114,905	)		(10,538,481	)		(6,432,777	)		(2,380,477	)		(7,097,975	)		(645,687	)
	(3,181,813	)		(8,064,015	)		(6,432,777	)		(1,050,298	)		(7,097,975	)		4,388,923
	(3,021,420	)		(7,608,087	)		(3,760,275	)		(4,702,300	)		(5,025,962	)		1,667,502

	20,487,632			28,095,719			14,662,367			19,364,667			18,639,253			16,971,751
$	17,466,212		$	20,487,632		$	10,902,092		$	14,662,367		$	13,613,291		$	18,639,253
$	17,255		$	3,762		$	105,682		$	208,404		$	(11,870	)	$	(45,073	)

	800,000			1,125,000			650,000			700,000			700,000			550,000
	75,000			100,000			—			50,000			—			175,000
	(200,000	)		(425,000	)		(250,000	)		(100,000	)		(250,000	)		(25,000	)
	675,000			800,000			400,000			650,000			450,000			700,000

See accompanying Notes to Financial Statements.

125

ADVISORSHARES TRUST

Statements of Changes in Net Assets

	AdvisorShares Newfleet Multi-Sector Income ETF
	Year ended June 30, 2017			Year ended June 30, 2016

INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income (Loss)	$	4,000,339		$	6,056,456
Net Realized Gain (Loss)		426,691			(1,122,319	)
Net Change in Unrealized Appreciation (Depreciation)		1,504,734			810,979
Net Increase (Decrease) In Net Assets Resulting From Operations		5,931,764			5,745,116
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income		(6,793,358	)		(6,656,079	)
Total Distributions		(6,793,358	)		(6,656,079	)
CAPITAL STOCK TRANSACTIONS
Proceeds from Shares Issued		14,641,846			56,042,886
Value of Shares Redeemed		(17,038,617	)		(9,809,241	)
Net Increase (Decrease) From Capital Stock Transactions		(2,396,771	)		46,233,645
Net Increase (Decrease) in Net Assets		(3,258,365	)		45,322,682
Net Assets:
Beginning of Year/Period		261,263,488			215,940,806
End of Year/Period	$	258,005,123		$	261,263,488
Undistributed (Accumulated) Net Investment Income (Loss)	$	109,347		$	146,025
Changes in Shares Outstanding
Shares Outstanding, Beginning of Year/Period		5,350,000			4,400,000
Shares Sold		300,000			1,150,000
Shares Repurchased		(350,000	)		(200,000	)
Shares Outstanding, End of Year/Period		5,300,000			5,350,000

See accompanying Notes to Financial Statements.

126

ADVISORSHARES TRUST

Statements of Changes in Net Assets

AdvisorShares Pacific Asset Enhanced Floating Rate ETF						AdvisorShares Peritus High Yield ETF						AdvisorShares Ranger Equity Bear ETF
Year ended June 30, 2017			Year ended June 30, 2016			Year ended June 30, 2017			Year ended June 30, 2016			Year ended June 30, 2017			Year ended June 30, 2016



$	951,281		$	954,988		$	14,823,876		$	21,260,864		$	(3,963,360	)	$	(4,119,728	)
	40,296			(262,970	)		(12,085,801	)		(50,581,746	)		(28,449,687	)		(10,405,339	)
	280,261			(255,201	)		26,430,170			(1,853,685	)		(7,383,569	)		(2,030,289	)
	1,271,838			436,817			29,168,245			(31,174,567	)		(39,796,616	)		(16,555,356	)

	(929,104	)		(948,096	)		(13,874,887	)		(20,463,098	)		—			—
	(929,104	)		(948,096	)		(13,874,887	)		(20,463,098	)		—			—

	—			—			—			6,037,172			82,749,313			183,691,687
	—			—			(47,084,275	)		(128,789,551	)		(82,395,823	)		(81,247,512	)
	—			—			(47,084,275	)		(122,752,379	)		353,490			102,444,175
	342,734			(511,279	)		(31,790,917	)		(174,390,044	)		(39,443,126	)		85,888,819

	26,800,333			27,311,612			201,600,859			375,990,903			213,947,543			128,058,724
$	27,143,067		$	26,800,333		$	169,809,942		$	201,600,859		$	174,504,417		$	213,947,543
$	18,763		$	21,932		$	313,082		$	(674,558	)	$	(1,474,035	)	$	(2,234,404	)

	550,000			550,000			5,950,000			9,250,000			20,175,000			11,775,000
	—			—			—			150,000			8,925,000			15,975,000
	—			—			(1,300,000	)		(3,450,000	)		(8,725,000	)		(7,575,000	)
	550,000			550,000			4,650,000			5,950,000			20,375,000			20,175,000

See accompanying Notes to Financial Statements.

127

ADVISORSHARES TRUST

Statements of Changes in Net Assets

	AdvisorShares Sage Core Reserves ETF
	Year ended June 30, 2017			Year ended June 30, 2016

INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income (Loss)	$	887,673		$	320,217
Net Realized Gain (Loss)		13,815			(77,612	)
Net Change in Unrealized Appreciation (Depreciation)		79,076			129,670
Net Increase (Decrease) In Net Assets Resulting From Operations		980,564			372,275
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income		(973,996	)		(342,487	)
Total Distributions		(973,996	)		(342,487	)
CAPITAL STOCK TRANSACTIONS
Proceeds from Shares Issued		12,428,209			77,049,895
Value of Shares Redeemed		(39,777,832	)		—
Net Increase (Decrease) From Capital Stock Transactions		(27,349,623	)		77,049,895
Net Increase (Decrease) in Net Assets		(27,343,055	)		77,079,683
Net Assets:
Beginning of Year/Period		111,862,424			34,782,741
End of Year/Period	$	84,519,369		$	111,862,424
Undistributed (Accumulated) Net Investment Income (Loss)	$	19,213		$	17,872
Changes in Shares Outstanding
Shares Outstanding, Beginning of Year/Period		1,125,000			350,000
Shares Sold		125,000			775,000
Shares Repurchased		(400,000	)		—
Shares Outstanding, End of Year/Period		850,000			1,125,000

* Commencement of operations.

(1) Formerly known as, AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF.

(2) Formerly known as, AdvisorShares TrimTabs Float Shrink ETF.

See accompanying Notes to Financial Statements.

128

ADVISORSHARES TRUST

Statements of Changes in Net Assets

AdvisorShares STAR Global Buy-Write ETF						AdvisorShares Wilshire Buyback ETF(2)
Year ended June 30, 2017			Year ended June 30, 2016			Year ended June 30, 2017			Year ended June 30, 2016



$	55,257		$	82,434		$	1,121,853		$	1,748,728
	664,566			936,477			15,382,803			(10,209,879	)
	932,693			(1,039,731	)		10,498,238			(884,414	)
	1,652,516			(20,820	)		27,002,894			(9,345,565	)

	(140,175	)		—			(1,650,149	)		(1,684,986	)
	(140,175	)		—			(1,650,149	)		(1,684,986	)

	4,985,784			5,254,099			104,180,597			22,380,556
	(6,421,545	)		(14,430,069	)		(142,703,816	)		(98,252,134	)
	(1,435,761	)		(9,175,970	)		(38,523,219	)		(75,871,578	)
	76,580			(9,196,790	)		(13,170,474	)		(86,902,129	)

	17,399,931			26,596,721			155,569,994			242,472,123
$	17,476,511		$	17,399,931		$	142,399,520		$	155,569,994
$	—		$	79,238		$	422,778		$	951,074

	650,000			1,000,000			2,800,000			4,250,000
	175,000			200,000			1,675,000			400,000
	(225,000	)		(550,000	)		(2,325,000	)		(1,850,000	)
	600,000			650,000			2,150,000			2,800,000

See accompanying Notes to Financial Statements.

129

ADVISORSHARES TRUST

Financial Highlights

	AdvisorShares Cornerstone Small Cap ETF			AdvisorShares Dorsey Wright ADR ETF(1)															AdvisorShares Focused Equity ETF
	For the period July 6, 2016* to June 30, 2017			Year ended June 30, 2017			Year ended June 30, 2016			Year ended June 30, 2015			Year ended June 30, 2014			Year ended June 30, 2013			For the period September 20, 2016* to June 30, 2017
Selected Data for a Share of Capital Stock Outstanding
Net Asset Value, Beginning of Year/Period	$	25.15		$	39.06		$	38.86		$	38.95		$	32.65		$	28.72		$	25.00
Investment Operations
Net Investment Income (Loss)(3)		0.03			0.68			0.17			0.34			0.18			0.11			0.06
Net Realized and Unrealized Gain (Loss)		6.26			7.27			0.23			(0.20	)		6.29			3.99			3.54
Distributions of Net Realized Gains by other investment companies		—			—			—			—			—			0.00 (4)			—
Net Increase (Decrease) in Net Assets Resulting from Investment Operations(5)		6.29			7.95			0.40			0.14			6.47			4.10			3.60
Distributions from Net Investment Income		(0.03	)		(0.45	)		(0.20	)		(0.23	)		(0.17	)		(0.17	)		(0.01	)
Distributions from Realized Capital Gains		—			—			—			—			—			—			—
Total Distributions		(0.03	)		(0.45	)		(0.20	)		(0.23	)		(0.17	)		(0.17	)		(0.01	)
Net Asset Value, End of Year/Period	$	31.41		$	46.56		$	39.06		$	38.86		$	38.95		$	32.65		$	28.59
Market Value, End of Year/Period	$	31.40		$	46.61		$	39.06		$	38.77		$	38.93		$	32.63		$	28.59

Total Return
Total Investment Return Based on Net Asset Value(6)		25.00	%		20.43	%		1.05	%		0.36	%		19.85	%		14.30	%		14.39	%
Total Investment Return Based on Market Value(6)		24.98	%		20.55	%		1.27	%		0.19	%		19.85	%		14.29	%		14.40	%
Ratios/Supplemental Data
Net Assets, End of Year/Period (000's omitted)	$	4,286		$	65,185		$	14,648		$	15,543		$	12,660		$	7,346		$	12,150
Ratio to Average Net Assets of:
Expenses, net of expense waivers and reimbursements(7)		0.90	%		1.25	%		1.25	%		1.25	%		1.25	%		1.25	%		0.75	%
Expenses, prior to expense waivers and reimbursements(7)		3.91	%		1.43	%		1.62	%		1.63	%		1.67	%		2.52	%		2.04	%
Net Investment Income (Loss)(7)		0.09	%		1.55	%		0.44	%		0.88	%		0.50	%		0.36	%		0.28	%
Portfolio Turnover Rate(9)		93	%		108	%(10)		25	%		27	%		24	%		38	%		36	%

See accompanying Notes to Financial Statements.

130

ADVISORSHARES TRUST

Financial Highlights

AdvisorShares Gartman Gold/Euro ETF (Consolidated)												AdvisorShares Gartman Gold/Yen ETF (Consolidated)												AdvisorShares KIM Korea Equity ETF
Year ended June 30, 2017			Year ended June 30, 2016			Year ended June 30, 2015			For the period February 11, 2014* to June 30, 2014			Year ended June 30, 2017			Year ended June 30, 2016			Year ended June 30, 2015			For the period February 11, 2014* to June 30, 2014			For the period September 28, 2016* to June 30, 2017

$	13.80		$	13.14		$	13.02		$	12.80		$	11.97		$	13.16		$	12.94		$	12.80		$	25.00

	(0.05	)		(0.08	)		(0.08	)		(0.03	)		(0.05	)		(0.08	)		(0.08	)		(0.03	)		0.56
	(1.30	)		1.63			0.97			0.25			0.19			(0.70	)		0.86			0.17			3.01
	—			—			—			—			—			—			—			—			—
	(1.35	)		1.55			0.89			0.22			0.14			(0.78	)		0.78			0.14			3.57
	(0.83	)		—			(0.14	)		—			(0.89	)		—			(0.04	)		—			(0.11	)
	(0.03	)		(0.89	)		(0.63	)		—			—			(0.41	)		(0.52	)		—			—
	(0.86	)		(0.89	)		(0.77	)		—			(0.89	)		(0.41	)		(0.56	)		—			(0.11	)
$	11.59		$	13.80		$	13.14		$	13.02		$	11.22		$	11.97		$	13.16		$	12.94		$	28.46
$	11.57		$	13.98		$	13.11		$	13.07		$	11.20		$	12.04		$	13.19		$	13.04		$	28.54


	(9.80	)%		13.29	%		7.33	%		1.72	%		1.54	%		(5.73	)%		6.06	%		1.09	%		14.40	%
	(11.11	)%		15.11	%		6.56	%		2.11	%		0.73	%		(5.36	)%		5.45	%		1.88	%		14.73	%

$	15,064		$	22,433		$	16,758		$	1,302		$	15,427		$	24,249		$	23,022		$	3,881		$	9,960

	0.65	%		0.65	%		0.65	%		0.65	%		0.65	%		0.65	%		0.65	%		0.65	%		0.99	%
	1.25	%		1.43	%		2.21	%		10.72	%		1.30	%		1.23	%		1.99	%		4.74	%		2.37	%
	(0.42	)%		(0.64	)%		(0.63	)%		(0.63	)%		(0.41	)%		(0.64	)%		(0.62	)%		(0.63	)%		2.93	%
	0	%		0	%		0	%		0	%		0	%		0	%		0	%		0	%		69	%

See accompanying Notes to Financial Statements.

131

ADVISORSHARES TRUST

Financial Highlights

	AdvisorShares Madrona Domestic ETF
	Year ended June 30, 2017			Year ended June 30, 2016			Year ended June 30, 2015			Year ended June 30, 2014			Year ended June 30, 2013
Selected Data for a Share of Capital Stock Outstanding
Net Asset Value, Beginning of Year/Period	$	40.66		$	43.55		$	41.26		$	32.34		$	25.31
Investment Operations
Net Investment Income (Loss)(3)		0.21			0.23			0.13			0.11			0.15
Net Realized and Unrealized Gain (Loss)		8.04			(2.97	)		2.30			8.91			7.01
Distributions of Net Realized Gains by other investment companies		0.00	(4)		—			—			—			—
Net Increase (Decrease) in Net Assets Resulting from Investment Operations(5)		8.25			(2.74	)		2.43			9.02			7.16
Distributions from Net Investment Income		(0.30	)		(0.15	)		(0.14	)		(0.10	)		(0.13	)
Distributions from Realized Capital Gains		—			—			—			—			—
Total Distributions		(0.30	)		(0.15	)		(0.14	)		(0.10	)		(0.13	)
Net Asset Value, End of Year/Period	$	48.61		$	40.66		$	43.55		$	41.26		$	32.34
Market Value, End of Year/Period	$	48.62		$	40.67		$	43.55		$	41.26		$	32.34

Total Return
Total Investment Return Based on Net Asset Value(6)		20.36	%		(6.29	)%		5.89	%		27.93	%		28.37	%
Total Investment Return Based on Market Value(6)		20.36	%		(6.26	)%		5.89	%		27.93	%		28.52	%
Ratios/Supplemental Data
Net Assets, End of Year/Period (000's omitted)	$	26,736		$	27,445		$	31,574		$	24,755		$	18,593
Ratio to Average Net Assets of:
Expenses, net of expense waivers and reimbursements(7)		1.25	%		1.25	%		1.25	%		1.25	%		1.25	%
Expenses, prior to expense waivers and reimbursements(7)		1.37	%		1.32	%		1.37	%		1.42	%		1.61	%
Net Investment Income (Loss)(7)		0.48	%		0.57	%		0.30	%		0.31	%		0.51	%
Portfolio Turnover Rate(9)		62	%		53	%		15	%		14	%		33	%

See accompanying Notes to Financial Statements.

132

ADVISORSHARES TRUST

Financial Highlights

AdvisorShares Madrona Global Bond ETF															AdvisorShares Madrona International ETF
Year ended June 30, 2017			Year ended June 30, 2016			Year ended June 30, 2015			Year ended June 30, 2014			Year ended June 30, 2013			Year ended June 30, 2017			Year ended June 30, 2016			Year ended June 30, 2015			Year ended June 30, 2014			Year ended June 30, 2013

$	25.61		$	24.97		$	26.36		$	25.05		$	25.69		$	22.56		$	27.66		$	29.66		$	23.97		$	21.06

	0.81			0.75			0.74			0.86			0.72			0.36			0.41			0.39			0.41			0.39
	0.25			0.59			(1.39	)		1.30			(0.66	)		4.85			(5.17	)		(1.92	)		5.77			2.82
	0.01			0.06			0.04			—			0.01			0.00 (4)			—			—			—			—
	1.07			1.40			(0.61	)		2.16			0.07			5.21			(4.76	)		(1.53	)		6.18			3.21
	(0.80	)		(0.76	)		(0.78	)		(0.85	)		(0.71	)		(0.51	)		(0.34	)		(0.47	)		(0.49	)		(0.30	)
	—			—			—			—			(0.00	)(4)		—			—			—			—			—
	(0.80	)		(0.76	)		(0.78	)		(0.85	)		(0.71	)		(0.51	)		(0.34	)		(0.47	)		(0.49	)		(0.30	)
$	25.88		$	25.61		$	24.97		$	26.36		$	25.05		$	27.26		$	22.56		$	27.66		$	29.66		$	23.97
$	25.89		$	25.62		$	24.96		$	26.42		$	24.96		$	27.25		$	22.56		$	27.65		$	29.58		$	23.95


	4.23	%		5.76	%		(2.37	)%		8.80	%		0.20	%		23.36	%		(17.32	)%		(5.06	)%		25.91	%		15.24	%
	4.24	%		5.84	%		(2.63	)%		9.44	%		(0.13	)%		23.31	%		(17.25	)%		(4.82	)%		25.64	%		14.86	%

$	17,466		$	20,488		$	28,096		$	24,383		$	22,543		$	10,902		$	14,662		$	19,365		$	19,279		$	14,978

	0.95	%		0.95	%		0.95	%		0.95	%		0.95	%		1.25	%		1.25	%		1.25	%		1.25	%		1.25	%
	1.20	%		1.05	%		0.99	%		1.07	%		1.02	%		1.80	%		1.62	%		1.69	%		1.55	%		1.65	%
	3.15	%		3.01	%		2.88	%		3.36	%		2.73	%		1.43	%		1.69	%		1.41	%		1.48	%		1.65	%
	21	%		24	%		34	%		20	%		28	%		186	%		196	%		85	%		182	%		93	%

See accompanying Notes to Financial Statements.

133

ADVISORSHARES TRUST

Financial Highlights

	AdvisorShares Meidell Tactical Advantage ETF
	Year ended June 30, 2017			Year ended June 30, 2016			Year ended June 30, 2015			Year ended June 30, 2014			Year ended June 30, 2013
Selected Data for a Share of Capital Stock Outstanding
Net Asset Value, Beginning of Year/Period	$	26.63		$	30.86		$	30.00		$	28.33		$	25.12
Investment Operations
Net Investment Income (Loss)(3)		0.01			(0.07	)		0.17			0.14			0.14
Net Realized and Unrealized Gain (Loss)		3.61			(4.07	)		0.87			1.53			3.30
Distributions of Net Realized Gains by other investment companies		—			0.01			—			—			—
Net Increase (Decrease) in Net Assets Resulting from Investment Operations(5)		3.62			(4.13	)		1.04			1.67			3.44
Distributions from Net Investment Income		—			(0.10	)		(0.18	)		—			(0.23	)
Distributions from Realized Capital Gains		—			—			—			—			—
Total Distributions		—			(0.10	)		(0.18	)		—			(0.23	)
Net Asset Value, End of Year/Period	$	30.25		$	26.63		$	30.86		$	30.00		$	28.33
Market Value, End of Year/Period	$	30.27		$	26.56		$	30.87		$	30.00		$	28.37

Total Return
Total Investment Return Based on Net Asset Value(6)		13.61	%		(13.40	)%		3.47	%		5.89	%		13.81	%
Total Investment Return Based on Market Value(6)		13.97	%		(13.63	)%		3.52	%		5.75	%		12.33	%
Ratios/Supplemental Data
Net Assets, End of Year/Period (000's omitted)	$	13,613		$	18,639		$	16,972		$	15,750		$	9,209
Ratio to Average Net Assets of:
Expenses, net of expense waivers and reimbursements(7)		1.35	%		1.35	%		1.35	%		1.35	%		1.35	%
Expenses, prior to expense waivers and reimbursements(7)		2.07	%		1.88	%		1.99	%		2.12	%		2.99	%
Net Investment Income (Loss)(7)		0.02	%		(0.26	)%		0.57	%		0.49	%		0.51	%
Portfolio Turnover Rate(9)		1,123	%		1,428	%		434	%		687	%		605	%

See accompanying Notes to Financial Statements.

134

ADVISORSHARES TRUST

Financial Highlights

AdvisorShares Newfleet Multi-Sector Income ETF															AdvisorShares Pacific Asset Enhanced Floating Rate ETF
Year ended June 30, 2017			Year ended June 30, 2016			Year ended June 30, 2015			Year ended June 30, 2014			For the period March 19, 2013* to June 30, 2013			Year ended June 30, 2017			Year ended June 30, 2016			For the period February 18, 2015* to June 30, 2015

$	48.83		$	49.08		$	49.94		$	49.04		$	50.00		$	48.73		$	49.66		$	50.00

	0.74			1.25			1.28			1.26			0.28			1.73			1.74			0.62
	0.38			(0.13	)		(0.77	)		0.99			(0.99	)		0.58			(0.95	)		(0.38	)
	0.00	(4)		—			—			—			—			—			—			—
	1.12			1.12			0.51			2.25			(0.71	)		2.31			0.79			0.24
	(1.27	)		(1.37	)		(1.37	)		(1.35	)		(0.25	)		(1.69	)		(1.72	)		(0.58	)
	—			—			—			—			—			—			—			—
	(1.27	)		(1.37	)		(1.37	)		(1.35	)		(0.25	)		(1.69	)		(1.72	)		(0.58	)
$	48.68		$	48.83		$	49.08		$	49.94		$	49.04		$	49.35		$	48.73		$	49.66
$	48.70		$	48.82		$	49.04		$	49.94		$	49.01		$	49.33		$	48.26		$	49.78


	2.30	%		2.33	%		1.04	%		4.65	%		(1.42	)%		4.78	%		1.69	%		0.47	%
	2.37	%		2.39	%		0.95	%		4.70	%		(1.48	)%		5.75	%		0.46	%		0.71	%

$	258,005		$	261,263		$	215,941		$	154,811		$	83,362		$	27,143		$	26,800		$	27,312

	0.75	%		0.75	%		0.75	%		0.75	%		0.75	%		1.10	%		1.10	%		1.10	%
	0.80	%		0.81	%		0.82	%		0.83	%		1.13	%		1.39	%		1.51	%		1.41	%
	1.53	%		2.57	%		2.60	%		2.55	%		1.98	%		3.49	%		3.58	%		3.46	%
	63	%		51	%		49	%		85	%		105	%		52	%		27	%		102	%

See accompanying Notes to Financial Statements.

135

ADVISORSHARES TRUST

Financial Highlights

	AdvisorShares Peritus High Yield ETF
	Year ended June 30, 2017			Year ended June 30, 2016			Year ended June 30, 2015			Year ended June 30, 2014			Year ended June 30, 2013
Selected Data for a Share of Capital Stock Outstanding
Net Asset Value, Beginning of Year/Period	$	33.88		$	40.65		$	53.27		$	50.43		$	48.59
Investment Operations
Net Investment Income (Loss)(3)		2.71			3.11			3.59			4.14			4.28
Net Realized and Unrealized Gain (Loss)		2.49			(6.93	)		(12.33	)		2.69			1.66
Distributions of Net Realized Gains by other investment companies		0.00	(4)		—			—			—			—
Net Increase (Decrease) in Net Assets Resulting from Investment Operations(5)		5.20			(3.82	)		(8.74	)		6.83			5.94
Distributions from Net Investment Income		(2.56	)		(2.95	)		(3.88	)		(3.95	)		(4.09	)
Distributions from Realized Capital Gains		—			—			—			(0.04	)		(0.01	)
Total Distributions		(2.56	)		(2.95	)		(3.88	)		(3.99	)		(4.10	)
Net Asset Value, End of Year/Period	$	36.52		$	33.88		$	40.65		$	53.27		$	50.43
Market Value, End of Year/Period	$	36.00		$	33.84		$	40.58		$	53.27		$	49.91

Total Return
Total Investment Return Based on Net Asset Value(6)		15.72	%		(9.34	)%		(16.82	)%		14.04	%		12.58	%
Total Investment Return Based on Market Value(6)		14.33	%		(9.20	)%		(16.88	)%		15.20	%		11.29	%
Ratios/Supplemental Data
Net Assets, End of Year/Period (000's omitted)	$	169,810		$	201,601		$	375,991		$	1,075,997		$	259,729
Ratio to Average Net Assets of:
Expenses, net of expense waivers and reimbursements(7)		1.24	%		1.22	%		1.23	%		1.18	%		1.25	%
Expenses, prior to expense waivers and reimbursements(7)		1.24	%		1.28	%		1.23	%		1.18	%		1.23	%
Net Investment Income (Loss)(7)		7.55	%		8.77	%		7.65	%		7.95	%		8.44	%
Portfolio Turnover Rate(9)		147	%		79	%		88	%		87	%		37	%

See accompanying Notes to Financial Statements.

136

ADVISORSHARES TRUST

Financial Highlights

AdvisorShares Ranger Equity Bear ETF															AdvisorShares Sage Core Reserves ETF
Year ended June 30, 2017			Year ended June 30, 2016			Year ended June 30, 2015			Year ended June 30, 2014			Year ended June 30, 2013			Year ended June 30, 2017			Year ended June 30, 2016			Year ended June 30, 2015			For the period January 14, 2014* to June 30, 2014

$	10.60		$	10.88		$	11.78		$	16.17		$	23.33		$	99.43		$	99.38		$	99.78		$	100.00

	(0.20	)		(0.27	)		(0.31	)		(0.38	)		(0.60	)		0.97			0.69			0.12			0.36
	(1.84	)		(0.01	)		(0.59	)		(4.01	)		(6.56	)		0.11			0.12			(0.12	)		(0.25	)
	—			—			—			—			—			—			—			—			—
	(2.04	)		(0.28	)		(0.90	)		(4.39	)		(7.16	)		1.08			0.81			—			0.11
	—			—			—			—			—			(1.08	)		(0.76	)		(0.40	)		(0.33	)
	—			—			—			—			—			—			—			—			—
	—			—			—			—			—			(1.08	)		(0.76	)		(0.40	)		(0.33	)
$	8.56		$	10.60		$	10.88		$	11.78		$	16.17		$	99.43		$	99.43		$	99.38		$	99.78
$	8.55		$	10.61		$	10.88		$	11.79		$	16.16		$	99.44		$	99.63		$	99.40		$	99.80


	(19.24	)%		(2.53	)%		(7.64	)%		(27.15	)%		(30.69	)%		1.08	%		0.83	%		0.00	%(4)		0.11	%
	(19.42	)%		(2.48	)%		(7.72	)%		(27.04	)%		(30.76	)%		0.88	%		1.00	%		0.00	%(4)		0.13	%

$	174,504		$	213,948		$	128,059		$	161,952		$	218,357		$	84,519		$	111,862		$	34,783		$	37,419

	2.67	%(8)		2.68	%(8)		2.80	%(8)		2.87	%(8)		3.12	%(8)		0.35	%		0.35	%		0.35	%		0.35	%
	2.67	%(8)		2.68	%(8)		2.80	%(8)		2.87	%(8)		3.12	%(8)		0.50	%		0.55	%		0.73	%		0.73	%
	(2.15	)%		(2.49	)%		(2.72	)%		(2.81	)%		(3.11	)%		0.97	%		0.70	%		0.12	%		0.78	%
	245	%		402	%		419	%		484	%		697	%		81	%		72	%		59	%		12	%

See accompanying Notes to Financial Statements.

137

ADVISORSHARES TRUST

Financial Highlights

	AdvisorShares STAR Global Buy-Write ETF
	Year ended June 30, 2017			Year ended June 30, 2016			Year ended June 30, 2015			Year ended June 30, 2014			For the period September 17, 2012* to June 30, 2013
Selected Data for a Share of Capital Stock Outstanding
Net Asset Value, Beginning of Year/Period	$	26.77		$	26.60		$	26.18		$	23.61		$	25.00
Investment Operations
Net Investment Income (Loss)(3)		0.09			0.10			0.01			(0.10	)		(0.03	)
Net Realized and Unrealized Gain (Loss)		2.48			0.07			0.41			2.67			(1.16	)
Distributions of Net Realized Gains by other investment companies		0.01			0.00	(4)		—			—			—
Net Increase (Decrease) in Net Assets Resulting from Investment Operations(5)		2.58			0.17			0.42			2.57			(1.19	)
Distributions from Net Investment Income		(0.22	)		—			—			—			(0.17	)
Distributions from Realized Capital Gains		—			—			—			—			(0.03	)
Total Distributions		(0.22	)		—			—			—			(0.20	)
Net Asset Value, End of Year/Period	$	29.13		$	26.77		$	26.60		$	26.18		$	23.61
Market Value, End of Year/Period	$	29.13		$	26.76		$	26.61		$	26.22		$	23.62

Total Return
Total Investment Return Based on Net Asset Value(6)		9.70	%		0.64	%		1.60	%		10.89	%		(4.80	)%
Total Investment Return Based on Market Value(6)		9.74	%		0.56	%		1.49	%		11.01	%		(4.76	)%
Ratios/Supplemental Data
Net Assets, End of Year/Period (000's omitted)	$	17,477		$	17,400		$	26,597		$	27,490		$	22,428
Ratio to Average Net Assets of:
Expenses, net of expense waivers and reimbursements(7)		1.85	%		1.85	%		1.85	%		1.85	%		1.85	%
Expenses, prior to expense waivers and reimbursements(7)		2.14	%		1.97	%		1.87	%		1.79	%		2.35	%
Net Investment Income (Loss)(7)		0.32	%		0.38	%		0.03	%		(0.42	)%		(0.14	)%
Portfolio Turnover Rate(9)		26	%		58	%		45	%		166	%		40	%

* Commencement of operations.

(1) Formerly known as, AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF.

(2) Formerly known as, AdvisorShares TrimTabs Float Shrink ETF.

(3) Based on average shares outstanding.

(4) Amount represents less than $0.005 or 0.005%.

(5) The amount shown for a share distribution throughout the period may not correlate with the Statements of Operations for the period due to the timing of sales and repurchases of Fund Shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.

(6) Net asset value total investment 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 on ex-date, 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 on pay date, and sale at the market value on the last day of the period.

(7) Ratios of periods of less than one year have been annualized. Excludes expenses incurred by the underlying investments in other funds.

(8) The expense ratio includes interest and dividend expenses on short sales of 1.03%, 1.05%, 1.15%, 1.22%, and 1.51% for the periods ended June 30, 2017, June 30, 2016, June 30, 2015, June 30, 2014 and June 30, 2013 respectively.

(9) 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.

(10) During the year, the Fund underwent a sub-advisor change. As a result, investment transactions were increased during the period, which caused a higher than normal portfolio rate.

See accompanying Notes to Financial Statements.

138

ADVISORSHARES TRUST

Financial Highlights

AdvisorShares Wilshire Buyback ETF(2)
Year ended June 30, 2017			Year ended June 30, 2016			Year ended June 30, 2015			Year ended June 30, 2014			Year ended June 30, 2013

$	55.56		$	57.05		$	51.22		$	41.05		$	33.16

	0.47			0.47			0.42			0.43			0.23
	10.93			(1.54	)		5.75			9.89			7.99
	—			—			—			—			—
	11.40			(1.07	)		6.17			10.32			8.22
	(0.73	)		(0.42	)		(0.34	)		(0.15	)		(0.21	)
	—			—			—			—			(0.12	)
	(0.73	)		(0.42	)		(0.34	)		(0.15	)		(0.33	)
$	66.23		$	55.56		$	57.05		$	51.22		$	41.05
$	66.17		$	55.53		$	57.05		$	51.25		$	41.13


	20.55	%		(1.87	)%		12.06	%		25.18	%		25.01	%
	20.52	%		(1.91	)%		11.99	%		25.00	%		24.96	%

$	142,400		$	155,570		$	242,472		$	137,015		$	25,657

	0.90	%		0.99	%		0.99	%		0.99	%		0.99	%
	1.07	%		1.21	%		1.11	%		1.16	%		1.90	%
	0.76	%		0.86	%		0.76	%		0.90	%		0.62	%
	180	%		196	%		52	%		7	%		57	%

See accompanying Notes to Financial Statements.

139

ADVISORSHARES TRUST

Notes to Financial Statements

June 30, 2017

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 Funds are investment companies and accordingly follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification Topic 946 “Financial Services — Investment Companies”. 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
AdvisorShares Cornerstone Small Cap ETF	SCAP	July 6, 2016
AdvisorShares Dorsey Wright ADR ETF ⁽¹⁾	AADR	July 21, 2010
AdvisorShares Focused Equity ETF	CWS	September 20, 2016
AdvisorShares Gartman Gold/Euro ETF	GEUR	February 11, 2014
AdvisorShares Gartman Gold/Yen ETF	GYEN	February 11, 2014
AdvisorShares KIM Korea Equity ETF	KOR	September 28, 2016
AdvisorShares Madrona Domestic ETF	FWDD	June 21, 2011
AdvisorShares Madrona Global Bond ETF	FWDB	June 21, 2011
AdvisorShares Madrona International ETF	FWDI	June 21, 2011
AdvisorShares Meidell Tactical Advantage ETF	MATH	June 23, 2011
AdvisorShares Newfleet Multi-Sector Income ETF	MINC	March 19, 2013
AdvisorShares Pacific Asset Enhanced Floating Rate ETF	FLRT	February 18, 2015
AdvisorShares Peritus High Yield ETF	HYLD	December 1, 2010
AdvisorShares Ranger Equity Bear ETF	HDGE	January 27, 2011
AdvisorShares Sage Core Reserves ETF	HOLD	January 14, 2014
AdvisorShares STAR Global Buy-Write ETF	VEGA	September 17, 2012
AdvisorShares Wilshire Buyback ETF ⁽²⁾	TTFS	October 4, 2011

⁽¹⁾

Formerly known as, AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF. Effective September 1, 2016.

⁽²⁾

Formerly known as, AdvisorShares TrimTabs Float Shrink ETF. Effective July 1, 2016.

AdvisorShares Cornerstone Small Cap ETF (“Cornerstone Small Cap ETF”) seeks to provide total return through long-term capital appreciation and current income. The Portfolio Manager invests in a diversified group of U.S.-traded equity securities, including common and preferred stock, ADRs, and publicly-traded REITs.

AdvisorShares Dorsey Wright ADR ETF (“Dorsey Wright ADR ETF”) seeks to achieve the Fund’s investment objective by selecting primarily a portfolio of U.S.-traded securities of non-U.S. organizations, most often American Depositary Receipts (“ADRs”). The Fund invests in developed and emerging markets and may invest in securities of any market capitalization.

AdvisorShares Focused Equity ETF (“Focused Equity ETF”) seeks long-term capital appreciation. CWS invests primarily in a focused group of U.S. exchange-listed equity securities that the portfolio manager believes have favorable fundamental attributes.

140

ADVISORSHARES TRUST

Notes to Financial Statements (Continued)

June 30, 2017

1. Organization – (continued)

AdvisorShares Gartman Gold/Euro ETF (‘‘Gartman Gold/Euro ETF’’) seeks to provide positive returns by utilizing the European Union’s Euro to invest its assets in the gold market. GEUR offers investors an alternative method to invest in gold by financing gold purchases in liquid currencies other than the U.S. dollar. Euros are obtained through the sale of either exchange-traded currency futures or ‘‘over-the-counter’’ foreign exchange forward contracts.

AdvisorShares Gartman Gold/Yen ETF (‘‘Gartman Gold/Yen ETF’’) seeks to provide positive returns by utilizing the Japanese yen to invest its assets in the gold market. GYEN offers investors an alternative method to invest in gold by financing gold purchases in liquid currencies other than the U.S. dollar. The Japanese yen is obtained through the sale of either exchange-traded currency futures or ‘‘over-the-counter’’ foreign exchange forward contracts.

AdvisorShares KIM Korea Equity ETF (“KIM Korea Equity ETF”) seeks to provide long-term capital appreciation above the capital appreciation of its primary benchmark, the MSCI Korea Index, and other Korea-focused indexes. The Fund seeks to achieve its investment objective by investing primarily in growth-oriented stocks of any capitalization range listed on the Korea Exchange. The fund engages in sector allocation based on analysis of the macro economy and its effect on corporate competitiveness and industry cycles and strives to invest with large economic cycles as compared to short-term market trends and short-term supply and demand.

AdvisorShares Madrona Domestic ETF (‘‘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.

AdvisorShares Madrona Global Bond ETF (‘‘Madrona Global Bond ETF’’) seeks investment results that exceed the price and yield performance of its benchmark, the Barclays Capital Aggregate Bond Index. 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.

AdvisorShares Madrona International ETF (‘‘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. Its portfolio may also include ADRs that provide exposure to certain markets deemed to be emerging markets.

AdvisorShares Meidell Tactical Advantage ETF (‘‘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

141

ADVISORSHARES TRUST

Notes to Financial Statements (Continued)

June 30, 2017

1. Organization – (continued)

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.

AdvisorShares Newfleet Multi-Sector Income ETF (‘‘Newfleet Multi-Sector Income ETF’’) seeks to provide current income consistent with preservation of capital, while limiting fluctuations in net asset value (‘‘NAV’’) due to changes in interest rates. In seeking to achieve the Fund’s investment objective, the Sub-Advisor applies a time-tested approach and extensive credit research to capitalize on opportunities across undervalued areas of the bond markets. The Fund principally invests in investment-grade securities, which are securities with credit ratings within the four highest rating categories of a nationally recognized statistical rating organization or, if unrated, those securities that the Sub-Advisor determines to be of comparable quality.

AdvisorShares Pacific Asset Enhanced Floating Rate ETF (‘‘Pacific Asset Enhanced Floating Rate ETF’’) seeks to provide a high level of current income. The fund seeks to achieve its investment objective by selecting a focused portfolio comprised primarily of income producing floating rate loans and floating rate debt securities.

AdvisorShares Peritus High Yield ETF (‘‘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.

AdvisorShares Ranger Equity Bear ETF (‘‘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.

AdvisorShares Sage Core Reserves ETF (‘‘Sage Core Reserves ETF’’) seeks to preserve capital while maximizing income. The Sub-Advisor seeks to achieve the fund’s investment objective by investing in a variety of fixed income securities, including bonds, forwards and instruments issued by U.S. and foreign issuers. It will invest in U.S. dollar-denominated investment grade debt securities, including mortgage- or asset-backed securities, rated Baa- or higher by Moody’s Investors Service, Inc. (‘‘Moody’s’’), or equivalently rated by Standard & Poor’s Ratings Services (‘‘S&P’’) or Fitch, Inc. (‘‘Fitch’’), or, if unrated, determined by the Sub-Advisor to be of comparable quality.

AdvisorShares STAR Global Buy-Write ETF (‘‘STAR Global Buy-Write ETF’’) seeks consistent repeatable returns across all market cycles. 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.

142

ADVISORSHARES TRUST

Notes to Financial Statements (Continued)

June 30, 2017

1. Organization – (continued)

AdvisorShares Wilshire Buyback ETF (‘‘Wilshire Buyback ETF’’) seeks to achieve its investment objective by primarily investing in the broad U.S. equity market. The Fund invests in stocks with liquidity and fundamental characteristics that are historically associated with superior long-term performance. Based on extensive historical research, Wilshire Associates Incorporated designed a quantitative stock selection process to make allocation decisions in the Fund’s portfolio.

Some of the Funds are considered “fund of funds” and seek to achieve their investment objectives by investing primarily in other affiliated and unaffiliated exchange-traded funds (“ETFs”), as well as other exchange-traded products, including, but not limited to, exchange-traded notes (“ETNs”) and closed-end funds (collectively with ETFs and ETNs, “ETPs”), that offer diversified exposure to various global regions, credit qualities, durations and maturity dates.

For the year ended June 30, 2017, the Funds held significant positions (greater than 25% of net assets), except those invested in short term money market instruments, in other funds as follows:

Funds

Security Name

Market Value as of
June 30, 2017

% of Fund Net Assets as of
June 30, 2017

Reference location

Gartman Gold/Euro ETF

AdvisorShares Sage Core Reserves ETF

4,976,500

33.0

Contained within this report.

Gartman Gold/Yen ETF

AdvisorShares Sage Core Reserves ETF

4,976,500

32.3

Contained within this report.

Ranger Equity Bear ETF

AdvisorShares Sage Core Reserves ETF

67,182,750

38.5

Contained within this report.

STAR Global Buy-Write ETF

SPDR S&P 500 ETF Trust

8,753,885

50.1

https://us.spdrs.com

2. Consolidation of Subsidiaries

The Consolidated Schedules of Investments; Consolidated Statements of Assets and Liabilities, of Operations and of Changes in Net Assets; and the Consolidated Financial Highlights of the ETFs listed below include the accounts of wholly owned subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation.

Funds		Wholly Owned Subsidiary
Gartman Gold/Euro ETF		AdvisorShares Gartman Gold/Euro CFC
Gartman Gold/Yen ETF		AdvisorShares Gartman Gold/Yen CFC

A summary of each ETF’s investment in its corresponding subsidiary is as follows:

Funds	Inception Date of Subsidiary	Subsidiary Net Assets at June 30, 2017		% of ETF’s Total Net Assets at June 30, 2017
Gartman Gold/Euro ETF	February 11, 2014	$	2,782,271		18.5	%
Gartman Gold/Yen ETF	February 11, 2014		2,920,532		18.9

143

ADVISORSHARES TRUST

Notes to Financial Statements (Continued)

June 30, 2017

3. 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 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.

Distributions received from investments in Real Estate Investment Trusts (“REITs”) are recorded as dividend income on ex-dividend date, subject to reclassification upon notice of the character of such distributions by the issuer. The portion of dividend attributable to the return of capital is recorded against the cost basis of the security,

Foreign Taxes

The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, capital gains on investments, certain foreign currency transactions or other corporate events. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Funds invest. These foreign taxes, if any, are paid by the Funds and are reflected in their Statements of Operations.

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.

144

ADVISORSHARES TRUST

Notes to Financial Statements (Continued)

June 30, 2017

3. Summary of Significant Accounting Policies – (continued)

Swap Agreements

Certain funds 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.

Repurchase Agreements

The Funds may enter into repurchase agreements provided that the value of the underlying collateral, including accrued interest, will equal or exceed the value of the repurchase agreement during the term of the agreement. The underlying collateral for all repurchase agreements is held in safekeeping by the Fund’s custodian or at the Federal Reserve Bank. If the seller defaults and the value of the collateral declines, or if bankruptcy proceedings commence with respect to the seller of the security, realization of the collateral by the Fund may be delayed or limited.

At June 30, 2017 the market values of repurchase agreements outstanding are included as cash collateral for securities on loan on the Statements of Assets and Liabilities.

Short Sales

Certain Funds 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 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.

145

ADVISORSHARES TRUST

Notes to Financial Statements (Continued)

June 30, 2017

3. Summary of Significant Accounting Policies – (continued)

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 Statements 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 amount of income or fees paid by Ranger Equity Bear ETF for the year ended June 30, 2017 was $810,690, which is included as Interest on Securities Sold, Not Yet Purchased in the Statements 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.

Term Loans

Certain Funds invests in senior secured corporate loans or bank loans, some of which may be partially or entirely unfunded and purchased on a when-issued or delayed delivery basis, that pay interest at rates which are periodically reset by reference to a base lending rate plus a spread. Bank loans generally pay interest at rates which are periodically determined by reference to a base lending rate plus a premium. All loans carry a variable rate of interest. These base lending rates are generally (i) the Prime Rate offered by one or more major United States banks, (ii) the lending rate offered by one or more European banks such as the London Interbank Offered Rate ("LIBOR") or (iii) the Certificate of Deposit rate. Bank Loans, while exempt from registration, under the Securities Act of 1933, contain certain restrictions on resale and cannot be sold publicly. Floating rate bank loans often require prepayments from excess cash flow or permit the borrower to repay at its election. The degree to which borrowers repay, whether as a contractual requirement or at their election, cannot be predicted with accuracy. As a result, actual maturity may be substantially less than the stated maturity. Bank loans in which the Fund invests are generally readily marketable, but may be subject to certain restrictions on resale.

Futures Contracts

Certain 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.

146

ADVISORSHARES TRUST

Notes to Financial Statements (Continued)

June 30, 2017

3. Summary of Significant Accounting Policies – (continued)

Options

Certain 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.

Securities Lending

The Funds participate in a securities lending program offered by The Bank of New York Mellon (‘‘BNYM’’) (the ‘‘Program’’), providing for the lending of securities to qualified brokers. Securities lending income includes earnings of such temporary cash investments, plus or minus any rebate to a borrower. These earnings (after any rebate) are then divided between BNYM, as a fee for its services under the Program, and the Funds, according to agreed-upon rates. Collateral on all securities loaned is accepted in cash and is maintained at a minimum level of 102% (105% in the case of certain foreign securities) of the market value, plus interest, if applicable, of investments on loan. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to the Funds if and to the extent that the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. Under the terms of the Program, the Funds are indemnified for such losses by BNYM. Cash collateral is held in a separate account managed by BNYM, who is authorized to exclusively enter into overnight repurchase agreements, which are collateralized at 102% with securities issued or fully guaranteed by the U.S. Treasury; U.S. Government or any agency, instrumentality or authority of the U.S. government. The securities purchased with cash collateral received are reflected in the Schedule of Investments. BNYM bears the risk of any deficiency in the amount of the cash collateral available for return to the borrower due to any loss on the collateral invested.

The repurchase agreement income related to the Program earned by the Funds is disclosed on the Statements of Operations.

147

ADVISORSHARES TRUST

Notes to Financial Statements (Continued)

June 30, 2017

3. Summary of Significant Accounting Policies – (continued)

The value of loaned securities and related collateral outstanding at June 30, 2017 are shown in the Schedules of Investments and Statements of Assets and Liabilities.

									Gross Amounts not offset in the Statements of Assets and Liabilities
Fund and Description	Gross Amounts of Recognized Assets (Liabilities)			Gross Amounts Offset in the Statements of Assets and (Liabilities)		Net Amounts Presented in the Statements of Assets and (Liabilities)			Financial Instruments			Collateral Pledged/Received		Net Amount
Cornerstone Small Cap ETF										—
Securities Lending	$	(418,609	)	$	—	$	(418,609	)		$ 418,609	⁽¹⁾	$	—	$	—
Repurchase Agreements		418,609			—		418,609			418,609	⁽²⁾		—		—
Dorsey Wright ADR ETF
Securities Lending		(6,644,407	)		—		(6,644,407	)		6,644,407	⁽¹⁾		—		—
Repurchase Agreements		6,644,407			—		6,644,407			6,644,407	⁽²⁾		—		—
Focused Equity ETF
Securities Lending		(383,967	)		—		(383,967	)		383,967	⁽¹⁾		—		—
Repurchase Agreements		383,967			—		383,967			383,967	⁽²⁾		—		—
Madrona Domestic ETF
Securities Lending		(705,033	)		—		(705,033	)		705,033	⁽¹⁾		—		—
Repurchase Agreements		705,033			—		705,033			705,033	⁽²⁾		—		—
Madrona Global Bond ETF
Securities Lending		(615,801	)		—		(615,801	)		615,801	⁽¹⁾		—		—
Repurchase Agreements		615,801			—		615,801			615,801	⁽²⁾		—		—
Madrona International ETF
Securities Lending		(1,915,339	)		—		(1,915,339	)		1,915,339	⁽¹⁾		—		—
Repurchase Agreements		1,915,339			—		1,915,339			1,915,339	⁽²⁾		—		—
Meidell Tactical Advantage ETF
Securities Lending		(1,838,128	)		—		(1,838,128	)		1,838,128	⁽¹⁾		—		—
Repurchase Agreements		1,838,128			—		1,838,128			1,838,128	⁽²⁾		—		—
Newfleet Multi-Sector Income ETF
Securities Lending		(1,889,819	)		—		(1,889,819	)		1,889,819	⁽¹⁾		—		—
Repurchase Agreements		1,889,819			—		1,889,819			1,889,819	⁽²⁾		—		—
Pacific Asset Enhanced Floating Rate ETF
Swaps		(23,043	)		—		(23,043	)		—			—		(23,043	)
Peritus High Yield ETF
Securities Lending		(25,627,454	)		—		(25,627,454	)		25,627,454	⁽¹⁾		—		—
Repurchase Agreements		25,627,454			—		25,627,454			25,627,454	⁽²⁾		—		—
Wilshire Buyback ETF
Securities Lending		(5,433,769	)		—		(5,433,769	)		5,433,769	⁽¹⁾		—		—
Repurchase Agreements		5,433,769			—		5,433,769			5,433,769	⁽²⁾		—		—

⁽¹⁾

Collateral for securities on loan is included in the Schedules of Investments and consists of Repurchase Agreements.

⁽²⁾

Repurchase agreements are collateralized by U.S. Government Agency Obligations in the event the other party to the repurchase agreement defaults on its obligation.

148

ADVISORSHARES TRUST

Notes to Financial Statements (Continued)

June 30, 2017

3. Summary of Significant Accounting Policies – (continued)

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.

4. Investment Advisory Agreement and Other Agreements

Investment Advisory Agreement

Each Fund has entered into an investment advisory agreement with AdvisorShares Investments, LLC (the ‘‘Advisor’’) pursuant to which the Advisor acts as the Fund’s investment adviser. Pursuant to the 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 which is calculated daily and paid monthly based on average daily net assets. From time to time, the Advisor may waive all or a portion of its fee.

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

Fund:	Rate:
Cornerstone Small Cap ETF		0.65	%
Dorsey Wright ADR ETF		0.75	%
Focused Equity ETF		0.75	%
Gartman Gold/Euro ETF		0.55	%
Gartman Gold/Yen ETF		0.55	%
KIM Korea Equity ETF		0.84	%
Madrona Domestic ETF		0.80	%
Madrona Global Bond ETF		0.50	%
Madrona International ETF		0.80	%
Meidell Tactical Advantage ETF		1.20	%
Newfleet Multi-Sector Income ETF		0.65	%
Pacific Asset Enhanced Floating Rate ETF		0.95	%
Peritus High Yield ETF		1.10	%
Ranger Equity Bear ETF		1.50	%
Sage Core Reserves ETF		0.30	%
STAR Global Buy-Write ETF		1.35	%
Wilshire Buyback ETF		0.90	%*

* Prior to July 1, 2016, the annual management fee was 0.99%.

149

ADVISORSHARES TRUST

Notes to Financial Statements (Continued)

June 30, 2017

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

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 investment sub-advisory agreement between each sub-advisor and the Advisor, the sub-advisor receives an annual fee.

From time to time, each sub-advisor may waive all or a portion of its fee.

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 amount for each Fund’s average daily net assets (with the exception of Global Echo ETF). 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 year ended June 30, 2017 were as follows:

Fund:	Rate:
Cornerstone Small Cap ETF		0.90	%
Dorsey Wright ADR ETF		1.25	%
Focused Equity ETF		0.75	%
Gartman Gold/Euro ETF		0.65	%
Gartman Gold/Yen ETF		0.65	%
KIM Korea Equity ETF		0.99	%
Madrona Domestic ETF		1.25	%
Madrona Global Bond ETF		0.95	%
Madrona International ETF		1.25	%
Meidell Tactical Advantage ETF		1.35	%
Newfleet Multi-Sector Income ETF		0.75	%
Pacific Asset Enhanced Floating Rate ETF		1.10	%
Peritus High Yield ETF		1.35	%
Ranger Equity Bear ETF		1.85	%
Sage Core Reserves ETF		0.35	%
STAR Global Buy-Write ETF		1.85	%
Wilshire Buyback ETF		0.90	%*

* Prior to July 1, 2016, the expense cap was 0.99%.

150

ADVISORSHARES TRUST

Notes to Financial Statements (Continued)

June 30, 2017

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

For the year ended June 30, 2017, the Advisor waived fees and reimbursed expenses for each Fund as follows. Each Fund may recoup such waivers until the date indicated, or for a maximum of three years from reimbursement, whichever is sooner.

Fund:	Expenses Reimbursed:		Recoupment Balance:		Recoupment Expiration:	Year Incurred

Cornerstone Small Cap ETF	$	101,317	$	101,317	6/30/2020	2017
Total		101,317		101,317

Dorsey Wright ADR ETF	$	55,807	$	55,807	6/30/2018	2015
		58,928		58,928	6/30/2019	2016
		50,172		50,172	6/30/2020	2017
Total		164,907		164,907

Focused Equity ETF	$	83,821	$	83,821	6/30/2020	2017
Total		83,821		83,821

Gartman Gold/Euro ETF	$	118,897	$	118,897	6/30/2018	2015
		111,217		111,217	6/30/2019	2016
		127,460		127,460	6/30/2020	2017
Total		357,574		357,574

Gartman Gold/Yen ETF	$	122,306	$	122,306	6/30/2018	2015
		107,681		107,681	6/30/2019	2016
		129,598		129,598	6/30/2020	2017
Total		359,585		359,585

KIM Korea Equity ETF	$	75,130	$	75,130	6/30/2020	2017
Total		75,130		75,130

Madrona Domestic ETF	$	35,654	$	35,654	6/30/2018	2015
		21,361		21,361	6/30/2019	2016
		32,079		32,079	6/30/2020	2017
Total		89,094		89,094

Madrona Global Bond ETF	$	12,090	$	11,721	6/30/2018	2015
		23,218		23,218	6/30/2019	2016
		46,960		46,960	6/30/2020	2017
Total		82,268		81,899

Madrona International ETF	$	79,853	$	79,853	6/30/2018	2015
		63,601		63,601	6/30/2019	2016
		75,380		75,380	6/30/2020	2017
Total		218,834		218,834

151

ADVISORSHARES TRUST

Notes to Financial Statements (Continued)

June 30, 2017

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

Fund:	Expenses Reimbursed:		Recoupment Balance:		Recoupment Expiration:	Year Incurred

Meidell Tactical Advantage ETF	$	103,519	$	103,519	6/30/2018	2015
		96,939		96,939	6/30/2019	2016
		110,946		110,946	6/30/2020	2017
Total		311,404		311,404

Newfleet Multi-Sector Income ETF	$	139,832	$	139,832	6/30/2018	2015
		132,621		132,621	6/30/2019	2016
		133,302		133,302	6/30/2020	2017
Total		405,755		405,755

Pacific Asset Enhanced Floating Rate ETF	$	30,047	$	30,047	6/30/2018	2015
		108,286		108,286	6/30/2019	2016
		79,534		79,534	6/30/2020	2017
Total		217,867		217,867

Sage Core Reserves ETF	$	141,235	$	141,235	6/30/2018	2015
		90,545		90,545	6/30/2019	2016
		141,505		141,505	6/30/2020	2017
Total		373,285		373,285

STAR Global Buy-Write ETF	$	13,786	$	13,786	6/30/2018	2015
		25,820		25,820	6/30/2019	2016
		50,044		50,044	6/30/2020	2017
Total		89,650		89,650

Wilshire Buyback ETF	$	211,220	$	211,220	6/30/2018	2015
		454,474		454,474	6/30/2019	2016
		244,904		244,904	6/30/2020	2017
Total		910,598		910,598

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 the 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.

152

ADVISORSHARES TRUST

Notes to Financial Statements (Continued)

June 30, 2017

5. 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.

6. 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:

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.

153

ADVISORSHARES TRUST

Notes to Financial Statements (Continued)

June 30, 2017

6. Summary of Fair Value Disclosure – (continued)

The following is a summary of the inputs used as of June 30, 2017 in valuing the Funds’ assets and liabilities carried at fair value:

Assets	Cornerstone Small Cap ETF		Dorsey Wright ADR ETF		Focused Equity ETF		Gartman Gold/Euro ETF			Gartman Gold/Yen ETF			KIM Korea Equity ETF
Level 1
Exchange Traded Funds	$	—	$	—	$	—	$	4,976,500		$	4,976,500		$	—
Common Stocks		4,255,050		64,678,424		12,064,887		—			—			9,699,763
Money Market Funds		36,588		486,306		100,500		4,324,052			3,247,432			—
Futures†		—		—		—		—			261,396			—
Level 2
Common Stocks		—		—		—		—			—			85,788
Repurchase Agreements for Securities Loaned		418,609		6,644,407		383,967		—			—			—
Liabilities
Level 1
Futures†		—		—		—		(499,629	)		(202,920	)		—
Total	$	4,710,247	$	71,809,137	$	12,549,354	$	8,800,923		$	8,282,408		$	9,785,551

Assets	Madrona Domestic ETF		Madrona Global Bond ETF		Madrona International ETF		Meidell Tactical Advantage ETF		Newfleet Multi- Sector Income ETF		Pacific Asset Enhanced Floating Rate ETF
Level 1
Exchange Traded Funds	$	—	$	17,242,276	$	—	$	13,137,255	$	—	$	—
Common Stocks		26,094,520		—		10,434,797		—		—		—
Money Market Funds		693,049		279,053		60,010		580,529		9,347,183		4,563,296
Level 2
Mortgage Backed Securities		—		—		—		—		69,415,812		—
Asset Backed Securities		—		—		—		—		68,531,810		—
Corporate Bonds		—		—		—		—		56,103,173		2,712,415
Term Loans		—		—		—		—		25,850,874		19,816,789
Foreign Bonds		—		—		—		—		17,856,967		—
U.S. Government Agency Securities		—		—		—		—		4,725,353		—
U.S. Treasury Note		—		—		—		—		7,177,703		—
Repurchase Agreements for Securities Loaned		705,033		615,801		1,915,339		1,838,128		1,889,819		—
Level 3
Corporate Bonds		—		—		—		—		282		—
Mortgage Backed Securities		—		—		—		—		625,635		—
Liabilities
Level 2
Swaps Contracts†		—		—		—		—		—		(23,043	)
Total	$	27,492,602	$	18,137,130	$	12,410,146	$	15,555,912	$	261,524,611	$	27,069,457

154

ADVISORSHARES TRUST

Notes to Financial Statements (Continued)

June 30, 2017

6. Summary of Fair Value Disclosure – (continued)

Assets	Peritus High Yield ETF		Ranger Equity Bear ETF			Sage Core Reserves ETF		STAR Global Buy- Write ETF			Wilshire Buyback ETF
Level 1
Exchange Traded Funds	$	—	$	67,182,750		$	—	$	16,447,656		$	—
Common Stocks		—		—			—		—			139,282,617
Purchased Options		—		—			—		77,434			—
Money Market Funds		6,055,419		31,596,510			5,301,093		981,441			3,136,141
Level 2
Corporate Bonds		116,946,086		—			41,114,128		—			—
Foreign Bonds		17,433,410		—			8,633,525		—			—
U.S. Treasury Notes		—		—			5,482,993		—			—
U.S. Treasury Bill		—		—			99,649		—			—
Asset Backed Securities		—		—			19,518,676		—			—
Mortgage Backed Securities		—		—			7,919,197		—			—
Term Loans		33,239,700		—			—		—			—
Repurchase Agreements for Securities Loaned		25,627,454		—			—		—			5,433,769
Level 3
Mortgage Backed Securities		—		—			6,186		—			—
Liabilities
Level 1
Common Stocks		—		(172,804,979	)		—		—			—
Written Options		—		—			—		(4,018	)		—
Total	$	199,302,069	$	(74,025,719	)	$	88,075,447	$	17,502,513		$	147,852,527

†

Derivative instruments, including swap contracts and futures, are valued at the net unrealized gain (loss) on the instrument.

There were no recognized transfers between Level 1 and Level 2.

A reconciliation of assets or liabilities in which Level 3 inputs are used in determining fair value is presented when there are significant (individually, greater than 1% of the net assets of a fund, or collectively, greater than 5% of the net assets of a fund) Level 3 assets or liabilities at the end of the period.

7. 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.

155

ADVISORSHARES TRUST

Notes to Financial Statements (Continued)

June 30, 2017

7. Derivative Instruments – (continued)

At June 30, 2017, the fair values of derivative instruments were as follows:

Statements of Assets and Liabilities:

Fund:	Asset Derivatives:	Equity Risk		Foreign Exchange Risk		Commodity Risk		Credit Risk
Gartman Gold/Yen ETF	Unrealized Appreciation on Futures Contracts	$	—	$	261,396	$	—	$	—
STAR Global Buy-Write ETF	Options Purchased, at Value		77,434		—		—		—

Fund:	Liability Derivatives:	Equity Risk			Foreign Exchange Risk			Commodity Risk			Credit Risk
Gartman Gold/Euro ETF	Unrealized Depreciation on Futures Contracts	$	—		$	(292,361	)	$	(207,268	)	$	—
Gartman Gold/Yen ETF	Unrealized Depreciation on Futures Contracts		—			—			(202,920	)		—
Pacific Asset Enhanced Floating Rate ETF	Unrealized Depreciation on Swaps Contracts		—			—			—			(23,043	)
STAR Global Buy-Write ETF	Options Written, at Value		(4,018	)		—			—			—

Transactions in derivative instruments during the year ended June 30, 2017, were as follows:

Statements of Operations:

Fund:	Realized Gain (Loss):	Equity Risk			Foreign Exchange Risk		Commodity Risk			Credit Risk
Gartman Gold/Euro ETF	Futures	$	—		$	1,078,917	$	(1,315,159	)	$	—
Gartman Gold/Yen ETF	Futures		—			1,425,222		(239,666	)		—
Pacific Asset Enhanced Floating Rate ETF	Swaps		—			—		—			86,550
STAR Global Buy-Write ETF	Investments – Options Purchased		(367,877	)		—		—			—
STAR Global Buy-Write ETF	Options Written		(76,074	)		—		—			—

Fund:	Change in Unrealized Gain (Loss):	Equity Risk			Foreign Exchange Risk			Commodity Risk			Credit Risk
Gartman Gold/Euro ETF	Futures	$	—		$	(809,886	)	$	(1,535,428	)	$	—
Gartman Gold/Yen ETF	Futures		—			975,212			(2,092,032	)		—
Pacific Asset Enhanced Floating Rate ETF	Swaps		—			—			—			(5,907	)
STAR Global Buy-Write ETF	Investments – Options Purchased		(37,824	)		—			—			—
STAR Global Buy-Write ETF	Options Written		(8,382	)		—			—			—

156

ADVISORSHARES TRUST

Notes to Financial Statements (Continued)

June 30, 2017

7. Derivative Instruments – (continued)

For the year ended June 30, 2017, the average volume of the derivatives opened by the Funds was as follows:

	Gartman Gold/Euro ETF		Gartman Gold/Yen ETF		Pacific Asset Enhanced Floating Rate ETF		STAR Global Buy- Write ETF
Long Swaps Notional		—		—		4,000,000		—
Purchased Options Contracts		—		—		—		1,385
Written Options Contracts		—		—		—		6,771
Short Futures Contracts		1,117		1,074		—		—
Long Futures Contracts		808		825		—		—

8. Federal Income Tax

Each Fund intends 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 (2014 − 2017), as defined by IRS statute of limitations, for all major jurisdictions, including federal tax authorities and certain state tax authorities. As of June 30, 2017, 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.

157

ADVISORSHARES TRUST

Notes to Financial Statements (Continued)

June 30, 2017

8. Federal Income Tax – (continued)

At June 30, 2017, the approximate 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)			Other Derivatives Net Unrealized Appreciation (Depreciation)
Cornerstone Small Cap ETF	$	4,195,723	$	625,021	$	(110,497	)	$	514,524		$	—
Dorsey Wright ADR ETF		67,558,059		5,712,552		(1,461,474	)		4,251,078			—
Focused Equity ETF		11,499,541		1,269,895		(220,082	)		1,049,813			—
Gartman Gold/Euro ETF		9,298,052		22,284		(19,784	)		2,500			—
Gartman Gold/Yen ETF		8,221,432		28,966		(26,466	)		2,500			—
KIM Korea Equity ETF		8,395,467		1,490,653		(100,569	)		1,390,084			(76	)
Madrona Domestic ETF		24,774,763		3,610,586		(892,747	)		2,717,839			—
Madrona Global Bond ETF		17,915,716		400,287		(178,873	)		221,414			—
Madrona International ETF		11,797,528		989,618		(377,000	)		612,618			—
Meidell Tactical Advantage ETF		15,665,289		62,246		(171,623	)		(109,377	)		—
Newfleet Multi-Sector Income ETF		261,041,079		1,905,448		(1,421,916	)		483,532			—
Pacific Asset Enhanced Floating Rate ETF		27,224,274		238,422		(370,196	)		(131,774	)		(21,470	)
Peritus High Yield ETF		199,440,280		4,125,848		(4,264,059	)		(138,211	)		—
Ranger Equity Bear ETF		98,711,760		3,167,415		(3,099,915	)		67,500			(6,782,796	)
Sage Core Reserves ETF		87,959,209		158,975		(42,737	)		116,238			—
STAR Global Buy-Write ETF		16,001,235		1,514,754		(9,458	)		1,505,296			12,959
Wilshire Buyback ETF		140,020,224		11,999,414		(4,167,111	)		7,832,303			—

158

ADVISORSHARES TRUST

Notes to Financial Statements (Continued)

June 30, 2017

8. Federal Income Tax – (continued)

At June 30, 2017, the components of distributable earnings/loss on a tax basis were as follows:

Fund	Undistributed Ordinary Income		Undistributed Long-term Capital Gains		Capital Loss Carryforward			Timing Differences			Post-October/Late- year Ordinary Deferrals			Net Unrealized Appreciation (Depreciation			Total Earnings (Losses)
Cornerstone Small Cap ETF	$	83,294	$	13,880	$	—		$	—		$	—		$	514,524		$	611,698
Dorsey Wright ADR ETF		27,111		—		(3,167,023	)		—			—			4,251,078			1,111,166
Focused Equity ETF		15,421		—		(5,916	)		—			—			1,049,813			1,059,318
Gartman Gold/Euro ETF		—		—		—			(207,268	)		(127,720	)		2,500			(332,488	)
Gartman Gold/Yen ETF		—		—		(713,209	)		(202,920	)		(18,167	)		2,500			(931,796	)
KIM Korea Equity ETF		253,991		—		—			—			—			1,390,008			1,643,999
Madrona Domestic ETF		39,060		—		(3,357,470	)		—			—			2,717,839			(600,571	)
Madrona Global Bond ETF		17,255		—		(904,981	)		—			—			221,414			(666,312	)
Madrona International ETF		105,682		—		(5,935,899	)		—			—			612,618			(5,217,599	)
Meidell Tactical Advantage ETF		—		—		(1,025,837	)		—			(11,870	)		(109,377	)		(1,147,084	)
Newfleet Multi-Sector Income ETF		109,347		—		(5,483,886	)		—			—			483,532			(4,891,007	)
Pacific Asset Enhanced Floating Rate ETF		17,190		—		(209,250	)		—			—			(153,244	)		(345,304	)
Peritus High Yield ETF		351,691		—		(179,723,479	)		—			—			(138,211	)		(179,509,999	)
Ranger Equity Bear ETF		—		—		(209,148,132	)		—			(1,474,035	)		(6,715,296	)		(217,337,463	)
Sage Core Reserves ETF		19,213		—		(328,399	)		—			—			116,238			(192,948	)
STAR Global Buy-Write ETF		—		—		(680,372	)		(492,985	)		—			1,518,255			344,898
Wilshire Buyback ETF		422,778		—		(21,953,795	)		—			—			7,832,303			(13,698,714	)

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

159

ADVISORSHARES TRUST

Notes to Financial Statements (Continued)

June 30, 2017

8. Federal Income Tax – (continued)

At June 30, 2017, the effect of permanent book/tax reclassifications resulted in increases/(decreases) to the components of net assets as follows:

Fund	Undistributed Net Investment Income (Loss)			Accumulated Net Realized Gains (Losses)			Paid-in Capital
Cornerstone Small Cap ETF	$	—		$	(155,514	)	$	155,514
Dorsey Wright ADR ETF		21,876			(2,559,956	)		2,538,080
Focused Equity ETF		—			—			—
Gartman Gold/Euro ETF		1,402,779			(54,675	)		(1,348,104	)
Gartman Gold/Yen ETF		1,586,834			(1,160,329	)		(426,505	)
KIM Korea Equity ETF		(31,890	)		32,244			(354	)
Madrona Domestic ETF		3,507			(2,665,106	)		2,661,599
Madrona Global Bond ETF		5,813			(163,952	)		158,139
Madrona International ETF		7,480			(708,560	)		701,080
Meidell Tactical Advantage ETF		30,159			(223,590	)		193,431
Newfleet Multi-Sector Income ETF		2,756,341			(2,756,363	)		22
Pacific Asset Enhanced Floating Rate ETF		(25,346	)		25,323			23
Peritus High Yield ETF		38,651			(1,054,295	)		1,015,644
Ranger Equity Bear ETF		4,723,729			(33,604	)		(4,690,125	)
Sage Core Reserves ETF		87,664			(87,664	)		—
STAR Global Buy-Write ETF		5,680			(1,123,710	)		1,118,030
Wilshire Buyback ETF		—			(20,374,470	)		20,374,470

For financial reporting purposes, capital accounts are adjusted to reflect the tax character of permanent book/tax differences. Reclassifications are primarily due to the tax treatment of net operating losses and distributions reclassifications.

The tax character of distributions paid during the fiscal years ended June 30, 2017 and 2016 were:

Fund	2017 Ordinary Income		2017 Long Term Capital Gains		2016 Ordinary Income		2016 Long Term Capital Gains
Cornerstone Small Cap ETF	$	2,606	$	—	$	—	$	—
Dorsey Wright ADR ETF		482,641		—		80,669		—
Focused Equity ETF		2,637		—		—		—
Gartman Gold/Euro ETF		1,291,380		—		299,901		593,099
Gartman Gold/Yen ETF		1,403,577		—		170,895		341,367
KIM Korea Equity ETF		37,280		—		—		—
Madrona Domestic ETF		174,323		—		118,397		—
Madrona Global Bond ETF		591,272		—		721,446		—
Madrona International ETF		306,516		—		242,962		—
Meidell Tactical Advantage ETF		—		—		64,850		—
Newfleet Multi-Sector Income ETF		6,793,358		—		6,656,079		—
Pacific Asset Enhanced Floating Rate ETF		929,104		—		948,096		—
Peritus High Yield ETF		13,874,887		—		20,463,098		—
Ranger Equity Bear ETF		—		—		—		—
Sage Core Reserves ETF		973,996		—		342,487		—
STAR Global Buy-Write ETF		140,175		—		—		—
Wilshire Buyback ETF		1,650,149		—		1,684,986		—

160

ADVISORSHARES TRUST

Notes to Financial Statements (Continued)

June 30, 2017

8. Federal Income Tax – (continued)

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 year. 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, 2017 are as follows:

Fund	Late Year Ordinary Loss Deferral		Short-Term Capital Post-October Loss		Long-Term Capital Post-October Loss
Cornerstone Small Cap ETF	$	—	$	—	$	—
Dorsey Wright ADR ETF		—		—		—
Focused Equity ETF		—		—		—
Gartman Gold/Euro ETF		22,020		42,280		63,420
Gartman Gold/Yen ETF		18,167		—		—
KIM Korea Equity ETF		—		—		—
Madrona Domestic ETF		—		—		—
Madrona Global Bond ETF		—		—		—
Madrona International ETF		—		—		—
Meidell Tactical Advantage ETF		11,870		—		—
Newfleet Multi-Sector Income ETF		—		—		—
Pacific Asset Enhanced Floating Rate ETF		—		—		—
Peritus High Yield ETF		—		—		—
Ranger Equity Bear ETF		1,474,035		—		—
Sage Core Reserves ETF		—		—		—
STAR Global Buy-Write ETF		—		—		—
Wilshire Buyback ETF		—		—		—

161

ADVISORSHARES TRUST

Notes to Financial Statements (Continued)

June 30, 2017

8. 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
Cornerstone Small Cap ETF	$	—	$	—	$	—
Dorsey Wright ADR ETF		2,784,113		382,910		3,167,023
Focused Equity ETF		5,916		—		5,916
Gartman Gold/Euro ETF		—		—		—
Gartman Gold/Yen ETF		285,283		427,926		713,209
KIM Korea Equity ETF		—		—		—
Madrona Domestic ETF		1,577,848		1,779,622		3,357,470
Madrona Global Bond ETF		318,626		586,355		904,981
Madrona International ETF		4,920,018		1,015,881		5,935,899
Meidell Tactical Advantage ETF		998,325		27,512		1,025,837
Newfleet Multi-Sector Income ETF		1,221,328		4,262,558		5,483,886
Pacific Asset Enhanced Floating Rate ETF		172,284		36,966		209,250
Peritus High Yield ETF		96,105,972		83,617,507		179,723,479
Ranger Equity Bear ETF		208,972,932		175,200		209,148,132
Sage Core Reserves ETF		164,529		163,870		328,399
STAR Global Buy-Write ETF		—		680,372		680,372
Wilshire Buyback ETF		19,751,742		2,202,053		21,953,795

9. 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 year ended June 30, 2017 were as follows:

	Value at		Purchases/		Sales/			Value at		Dividend		Realized
Affiliated Fund Name	6/30/2016		Additions		Reductions			6/30/2017		Income		Gain (Loss)
Gartman Gold/Euro ETF
Sage Core Reserves ETF	$	—	$	4,974,000	$	—		$	4,976,500	$	37,367	$	—
Gartman Gold/Yen ETF
Sage Core Reserves ETF		—		4,974,000		—			4,976,500		37,367		—
Madrona Global Bond ETF
Peritus High Yield ETF		1,631,570		1,156,605		(675,197	)		2,226,968		155,551		69,393
Meidell Tactical Advantage ETF
Cornerstone Small Cap ETF		—		878,499		(881,162	)		—		—		2,663
Ranger Equity Bear ETF
Sage Core Reserves ETF		102,115,625		—		(34,788,341	)		67,182,750		790,624		(180,309	)

162

ADVISORSHARES TRUST

Notes to Financial Statements (Continued)

June 30, 2017

10. Investment Transactions

Purchases and sales of investments for the year ended June 30, 2017 were as follows:

	Purchases						Sales
Fund	Long Term		U.S. Government		In-Kind		Long Term		U.S. Government		In-Kind
Cornerstone Small Cap ETF	$	3,086,166	$	—	$	4,196,168	$	3,049,722	$	—	$	738,257
Dorsey Wright ADR ETF		31,235,427		—		58,419,832		30,294,937		—		11,637,991
Focused Equity ETF		3,913,993		—		9,915,757		2,808,761		—		—
Gartman Gold/Euro ETF		4,974,000		—		—		—		—		—
Gartman Gold/Yen ETF		4,974,000		—		—		—		—		—
KIM Korea Equity ETF		12,630,741		—		—		4,398,835		—		—
Madrona Domestic ETF		18,776,209		—		4,520,314		16,231,968		—		12,658,516
Madrona Global Bond ETF		4,025,417		—		1,908,701		4,084,249		—		5,063,790
Madrona International ETF		24,248,122		—		—		24,148,941		—		6,243,772
Meidell Tactical Advantage ETF		159,296,705		—		—		159,427,174		—		6,879,519
Newfleet Multi-Sector Income ETF		144,192,907		14,477,545		245,961		149,546,457		8,264,016		245,961
Pacific Asset Enhanced Floating Rate ETF		12,771,250		—		—		13,745,653		—		—
Peritus High Yield ETF		280,613,461		—		—		287,479,730		—		37,080,686
Ranger Equity Bear ETF		673,901,503		—		—		631,147,841		—		—
Sage Core Reserves ETF		44,476,289		3,796,862		—		52,049,010		—		—
STAR Global Buy-Write ETF		4,341,293		—		4,787,329		4,742,689		—		6,377,236
Wilshire Buyback ETF		259,636,227		—		102,529,931		264,032,031		—		139,577,866

Options written transactions for the year ended June 30, 2017 were as follows:

				Premiums
STAR Global Buy-Write ETF	Contracts			Paid/Received
Options outstanding at June 30, 2016		512		$	37,313
Options written		5,363			371,087
Options terminated in closing purchase transactions		(3,535	)		(240,068	)
Options expired		(2,018	)		(151,355	)
Options exercised		—			—
Options outstanding at June 30, 2017		322			16,977

163

ADVISORSHARES TRUST

Notes to Financial Statements (Continued)

June 30, 2017

11. 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.

Credit Risk

Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. The Fund’s, and its affiliates, manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of each Fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its Statements of Assets and Liabilities. High yield securities may also be subject to greater levels of credit or default risk than higher-rated securities and high yield securities may be less liquid and more difficult to sell at an advantageous time or price or to value than higher-rated securities. In particular, high yield securities are often issued by smaller, less creditworthy companies or by highly leveraged (indebted) companies, which are generally less able than more financially stable companies to make scheduled payments of interest and principal.

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 is 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.

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.

164

ADVISORSHARES TRUST

Notes to Financial Statements (Continued)

June 30, 2017

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

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.

12. Regulatory Matters

In October 2016, the Securities and Exchange Commission (SEC) issued a new rule, Investment Company Reporting Modernization, which, among other provisions, amends Regulation S-X to require standardized, enhanced disclosures, particularly related to derivatives, in investment company financial statements. Compliance with the guidance is effective for financial statements filed with the SEC on or after August 1, 2017; adoption will have no effect on the fund’s net assets or results of operations. Management is currently evaluating the impacts to the financial statement disclosures, if any.

13. Subsequent Events

The Funds have adopted authoritative standards of accounting for disclosure of events that occur after the Statements of Assets 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 June 30, 2017.

Since June 30, 2017 the following events occurred:

The following Funds paid dividends after June 30, 2017:

Fund	Ticker	Ordinary Income Per Share Distributed		Payable Date
Madrona Global Bond ETF	FWDB	$	0.08397	7/31/2017
Newfleet Multi-Sector Income ETF	MINC		0.09945	7/31/2017
Pacific Asset Enhanced Floating Rate ETF	FLRT		0.14237	7/31/2017
Peritus High Yield ETF	HYLD		0.21390	7/31/2017
Sage Core Reserves ETF	HOLD		0.11327	7/31/2017

165

ADVISORSHARES TRUST

Notes to Financial Statements (Continued)

June 30, 2017

14. Unaudited Tax Information

Qualified Dividend Income — Certain dividends paid by the Funds may be subject to a minimum tax rate of 15%, as provided by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The percentage of ordinary income distributions for the year ended June 30, 2017, taxed at a minimum rate of 15% were:

Fund	Percentage
Cornerstone Small Cap ETF		0.00	%
Dorsey Wright ADR ETF		50.68	%
Focused Equity ETF		100.00	%
Gartman Gold/Euro ETF		21.35	%
Gartman Gold/Yen ETF		0.00	%
KIM Korea Equity ETF		7.24	%
Madrona Domestic ETF		100.00	%
Madrona Global Bond ETF		18.96	%
Madrona International ETF		66.86	%
Meidell Tactical Advantage ETF		0.00	%
Newfleet Multi-Sector Income ETF		0.00	%
Pacific Asset Enhanced Floating Rate ETF		0.00	%
Peritus High Yield ETF		0.00	%
Ranger Equity Bear ETF		0.00	%
Sage Core Reserves ETF		0.00	%
STAR Global Buy-Write ETF		43.47	%
Wilshire Buyback ETF		100.00	%

Dividends Received Deduction — For corporate shareholders, the percentage of ordinary income distributions for the year ended June 30, 2017 that qualifies for the dividends received deduction were:

Fund	Percentage
Cornerstone Small Cap ETF		0.00	%
Dorsey Wright ADR ETF		0.00	%
Focused Equity ETF		100.00	%
Gartman Gold/Euro ETF		0.00	%
Gartman Gold/Yen ETF		0.00	%
KIM Korea Equity ETF		0.00	%
Madrona Domestic ETF		100.00	%
Madrona Global Bond ETF		10.35	%
Madrona International ETF		0.00	%
Meidell Tactical Advantage ETF		0.00	%
Newfleet Multi-Sector Income ETF		0.00	%
Pacific Asset Enhanced Floating Rate ETF		0.00	%
Peritus High Yield ETF		0.00	%
Ranger Equity Bear ETF		0.00	%
Sage Core Reserves ETF		0.00	%
STAR Global Buy-Write ETF		43.47	%
Wilshire Buyback ETF		100.00	%

166

ADVISORSHARES TRUST

Notes to Financial Statements (Continued)

June 30, 2017

14. Unaudited Tax Information – (continued)

Qualified Interest Income — For nonresident alien shareholders, the percentage of ordinary income distributions for the year ended June 30, 2017 that qualified interest income were:

Fund	Percentage
Cornerstone Small Cap ETF		0.00	%
Dorsey Wright ADR ETF		0.00	%
Focused Equity ETF		0.00	%
Gartman Gold/Euro ETF		0.00	%
Gartman Gold/Yen ETF		0.00	%
KIM Korea Equity ETF		0.00	%
Madrona Domestic ETF		0.00	%
Madrona Global Bond ETF		42.28	%
Madrona International ETF		0.00	%
Meidell Tactical Advantage ETF		0.00	%
Newfleet Multi-Sector Income ETF		96.67	%
Pacific Asset Enhanced Floating Rate ETF		99.98	%
Peritus High Yield ETF		88.56	%
Ranger Equity Bear ETF		0.00	%
Sage Core Reserves ETF		100.00	%
STAR Global Buy-Write ETF		0.00	%
Wilshire Buyback ETF		0.00	%

The following Funds intend to elect to pass through to shareholders the credit for taxes paid to foreign countries. The gross foreign source income and foreign taxes paid are as follows:

Fund	Foreign Taxes Paid		Gross Foreign Income
Cornerstone Small Cap ETF	$	—	$	—
Dorsey Wright ADR ETF		17,109		798,895
Focused Equity ETF		—		—
Gartman Gold/Euro ETF		—		—
Gartman Gold/Yen ETF		—		—
KIM Korea Equity ETF		25,943		239,378
Madrona Domestic ETF		—		—
Madrona Global Bond ETF		—		—
Madrona International ETF		7,168		338,077
Meidell Tactical Advantage ETF		—		—
Newfleet Multi-Sector Income ETF		—		—
Pacific Asset Enhanced Floating Rate ETF		—		—
Peritus High Yield ETF		—		—
Ranger Equity Bear ETF		—		—
Sage Core Reserves ETF		—		—
STAR Global Buy-Write ETF		—		—
Wilshire Buyback ETF		—		—

167

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Trustees and Shareholders

AdvisorShares Trust

We have audited the accompanying statements of assets and liabilities of Cornerstone Small Cap ETF, Dorsey Wright ADR ETF (formerly WCM/BNY Mellon Focused Growth ADR ETF), Focused Equity ETF, KIM Korea Equity ETF, Madrona Domestic ETF, Madrona Global Bond ETF, Madrona International ETF, Meidell Tactical Advantage ETF, Newfleet Multi-Sector Income ETF, Pacific Asset Enhanced Floating Rate ETF, Peritus High Yield ETF, Ranger Equity Bear ETF, Sage Core Reserves ETF, STAR Global Buy-Write ETF and Wilshire Buyback ETF (formerly TrimTabs Float Shrink ETF), each a series of AdvisorShares Trust (the “Trust”), including the schedules of investments as of June 30, 2017, and the related statements of operations, the statements of changes in net assets and the financial highlights for the periods indicated thereon. We have audited the accompanying consolidated statements of assets and liabilities of Gartman Gold/Euro ETF and Gartman Gold/Yen ETF, each a series of AdvisorShares Trust (the “Trust”), including the consolidated schedules of investments as of June 30, 2017, and the related consolidated statements of operations, the consolidated statements of changes in net assets and the consolidated financial highlights for the periods indicated thereon. These financial statements and financial highlights are the responsibility of the Trust’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust’s internal controls over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of June 30, 2017, by correspondence with the custodian, brokers and agent banks or by other appropriate auditing procedures where replies were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Cornerstone Small Cap ETF, Dorsey Wright ADR ETF, Focused Equity ETF, KIM Korea Equity ETF, Madrona Domestic ETF, Madrona Global Bond ETF, Madrona International ETF, Meidell Tactical Advantage ETF, Newfleet Multi-Sector Income ETF, Pacific Asset Enhanced Floating Rate ETF, Peritus High Yield ETF, Ranger Equity Bear ETF, Sage Core Reserves ETF, STAR Global Buy-Write ETF and Wilshire Buyback ETF, as of June 30, 2017, and the results of their operations, the changes in their net assets and their financial highlights for the periods indicated thereon, in conformity with accounting principles generally accepted in the United States of America.

In our opinion, the consolidated financial statements and consolidated financial highlights referred to above present fairly, in all material respects, the consolidated financial position of Gartman Gold/Euro ETF and Gartman Gold/Yen ETF as of June 30, 2017, and the results of their consolidated operations, the consolidated changes in their net assets and their consolidated financial highlights for the periods indicated thereon, in conformity with accounting principles generally accepted in the United States of America.

	TAIT, WELLER & BAKER LLP
Philadelphia, Pennsylvania
August 28, 2017

168

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. More information about the Trustees is in the Trust’s Statement of Additional Information, which is available without charge by calling 1-877-843-3831.

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	Other Directorships Held by Trustee During Past 5 Years
Interested Trustee

Noah Hamman* 4800 Montgomery Lane, Suite 150 Bethesda, MD 20814 (1968)	Trustee (no set term); served since 2009	Chief Executive Officer, President, and Founder of AdvisorShares Investments, LLC (2006 – present).	20	None

Independent Trustees

Elizabeth (“Betsy”) Piper/Bach 4800 Montgomery Lane, Suite 150 Bethesda, MD 20814 (1952)	Trustee (no set term); served since 2009	Vice-President/Chief Operating Officer of NADA Retirement Administrators, Inc. (2009 – present).	20	None

William G. McVay 4800 Montgomery Lane, Suite 150 Bethesda, MD 20814 (1954)	Trustee (no set term); served since 2011	Founder and Managing Member of RDK Strategies, LLC (2007 – present).	20	None

Officers

Noah Hamman 4800 Montgomery Lane, Suite 150 Bethesda, MD 20814 (1968)	President (no set term); served since 2009	Chief Executive Officer, President, and Founder of AdvisorShares Investments, LLC (2006 – present).	N/A	N/A

Dan Ahrens 4144 N. Central Expressway, Suite 600 Dallas, TX 75204 (1966)	Secretary & Treasurer (no set terms); served since 2009	Managing Director of AdvisorShares Investments, LLC (2013 – present); Chief Compliance Officer of the Trust (2009 – 2013); Executive Vice President of AdvisorShares Investments, LLC (2008 – 2013).	N/A	N/A

Stefanie Little 11 Gina Marie Lane Elkton, MD 21921 (1967)	Chief Compliance Officer (no set term); served since 2013	Founder of Chenery Compliance Group, LLC (2015-present); Chief Compliance Officer of AdvisorShares Investments, LLC and the Trust (2013 – present); Managing Member of SEC Compliance Alliance, LLC (2012 – present), President of Little Consulting Group, Inc. (2011 – present); Director of Cipperman Compliance Services (2008 – 2011).	N/A	N/A

Mr. Hamman is an “interested” person of the Trust, as that term is defined in the 1940 Act, by virtue of his ownership and controlling interest in the Advisor.

169

Board Review of Investment Advisory and Sub-Advisory Agreements

BOARD REVIEW OF INVESTMENT ADVISORY

AND SUB-ADVISORY AGREEMENTS

Renewal of the Advisory Agreement for Each Fund and the Sub-Advisory Agreement for the AdvisorShares Peritus High Yield ETF, AdvisorShares Meidell Tactical Advantage ETF, AdvisorShares Newfleet Multi-Sector Income ETF, AdvisorShares Pacific Asset Enhanced Floating Rate ETF, and AdvisorShares Sage Core Reserves ETF

At meetings of the Board of Trustees (the “Board”) of AdvisorShares Trust (the “Trust”) held on February 28, 2017 and May 17, 2017, 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 (a) separate sub-advisory agreements (collectively, the “Sub-Advisory Agreements”) between AdvisorShares Investments, LLC (the “Advisor”) and (1) Peritus I Asset Management, LLC, on behalf of the AdvisorShares Peritus High Yield ETF, (2) American Wealth Management, on behalf of the AdvisorShares Meidell Tactical Advantage ETF, (3) Newfleet Asset Management, on behalf of the AdvisorShares Newfleet Multi-Sector Income ETF, (4) Pacific Asset Management, on behalf of the AdvisorShares Pacific Asset Enhanced Floating Rate ETF, and (5) Sage Advisory Services Ltd. Co., on behalf of the AdvisorShares Sage Core Reserves ETF (collectively, the “Sub-Advisors”), pursuant to which the Sub-Advisors perform portfolio management and related services, and (b) the investment advisory agreement between the Advisor and the Trust (together with the Sub-Advisory Agreements, the “Advisory Agreements”), on behalf of each series of the Trust (each a “Fund” and, collectively, the “Funds”).

Pursuant to Section 15 of the 1940 Act, to continue after their initial two-year term, the Advisory Agreements must be approved annually: (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 Advisory Agreements for an additional one-year term. In preparation for the 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 at the meetings and over the course of the prior year, to help decide whether to renew the Advisory Agreements for an additional year.

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

At the meetings, the Board was presented with additional information to help it evaluate the Advisor’s and each Sub-Advisor’s fee and other aspects of the Advisory Agreements. The Board received an overview of the Advisor’s and each Sub-Advisor’s operations and management of the Funds, including comparative fee data and profitability analysis for each Fund, and was also provided with information with respect to compliance oversight. The Board reviewed the management of each Fund, including the Fund’s strategy, the focus in the markets, the Fund’s positioning in the market, and its attractive and unique offering. The Board reviewed the Advisor’s and each Sub-Advisor’s overall business generally, including any noteworthy personnel changes.

170

Board Review of Investment Advisory and Sub-Advisory Agreements (continued)

The Board deliberated on the renewal of the Advisory Agreements in light of the written materials that it received before the meetings, information it received at the meetings, and information it had received at prior board meetings. In its deliberations, the Board considered the factors and reached the conclusions described below relating to the selection of the Advisor and each Sub-Advisor and the renewal of each Advisory Agreement. The Board did not identify any single piece of information discussed below that was paramount, controlling or determinative of its decision.

Nature, Extent and Quality of Services

In considering the nature, extent and quality of the services provided by the Advisor and each Sub-Advisor, the Board reviewed the portfolio management services provided to the Funds. The most recent Form ADV for the Advisor and each Sub-Advisor also was provided to the Board, as were responses to a detailed series of questions that, among other things, requested information about their business, services, and compensation. The Board considered the Advisor’s and each Sub-Advisor’s overall quality of personnel, operations, and financial condition, its investment advisory capabilities, and information concerning the Advisor’s and each Sub-Advisor’s compliance function, operational capabilities, and portfolio management team.

The Board also noted the extensive responsibilities that the Advisor has as investment adviser to the Funds, including the selection of the Funds’ sub-advisers and oversight of the sub-advisers’ compliance with Fund policies and objectives, oversight of general Fund compliance with federal and state laws, and the implementation of Board directives as they relate to the Funds.

Based on its review, within the context of its full deliberations, the Board determined that it was satisfied with the nature, extent and quality of the services provided to the Funds by the Advisor and each Sub-Advisor.

Performance of the Funds

The Board was provided with information regarding each Fund’s performance for various periods, as well as comparative performance information. The Advisor and each Sub-Advisor provided information regarding factors impacting the performance of the Funds, outlining current market conditions, and explaining its expectations and strategies for the future. Based on this information, the Board concluded that it was satisfied with the investment results that the Advisor and each Sub-Advisor had been able to achieve for its respective Fund.

Cost of Advisory Services and Profitability

In considering whether the advisory and sub-advisory fees payable with respect to each Fund were reasonable, the Board reviewed the advisory fees paid by each Fund to the Advisor, the sub-advisory fees paid by the Advisor to each Sub-Advisor, the fees waived and/or expenses reimbursed by the Advisor and each Sub-Advisor over the period, the costs and other expenses incurred by the Advisor and each Sub-Advisor in providing advisory services, and the profitability analysis with respect to each Fund. The Board also reviewed information comparing the advisory fees paid by each Fund to those paid by comparable funds. Based on its review, in the context of its full deliberations, the Board concluded for each Fund that the advisory fees appeared reasonable in light of the services rendered.

Economies of Scale

The Board considered for each Fund whether economies of scale were realized during the current contract period, noting any fee waivers and/or expense reimbursements by the Advisor and Sub-Advisors and whether the Advisor’s and/or Sub-Advisors’ fees included breakpoints. The Board

171

Board Review of Investment Advisory and Sub-Advisory Agreements (continued)

determined to reassess at an appropriate time in the future whether the aggregate advisory fee appropriately took into account any economies of scale that had been realized as a result of any significant asset growth of the Funds.

Ancillary Benefits

The Board noted the potential benefits to be received by the Advisor and each Sub-Advisor as a result of its relationship with a Fund (other than the advisory or sub-advisory fee), including the intangible benefits of its association with the Trust generally and any favorable publicity arising in connection with a Fund’s performance.

Conclusion

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

Approval of New Sub-Advisory Agreement for

AdvisorShares STAR Global Buy-Write ETF

On March 1, 2017, Partnervest Financial Group LLC, the parent company of Partnervest Advisory Services, LLC (“Partnervest”), the investment sub-adviser to the AdvisorShares STAR Global Buy-Write ETF (the “Fund”), concluded a transaction with Elysian Capital Holdings LLC (“Elysian”) pursuant to which Elysian acquired a larger ownership interest in Partnervest Financial Group LLC (the “Transaction”). The Transaction caused a change in control of Partnervest Financial Group LLC and Partnervest under the 1940 Act and resulted in the assignment and automatic termination of the investment sub-advisory agreement dated October 28, 2011, between the Adviser and Partnervest pursuant to which Partnervest served as sub-adviser and provided sub-advisory services to the Fund (the “Prior Sub-Advisory Agreement”).

At a meeting held on February 28, 2017, the Board, including a majority of the Independent Trustees, approved a new investment sub-advisory agreement between the Adviser and Partnervest (the “New Sub-Advisory Agreement”) pursuant to which Partnervest continues to serve as sub-adviser to the Fund under the same terms as provided for in the Prior Sub-Advisory Agreement, including the rate of compensation.

At the meeting, the Board considered the approval of the New Sub-Advisory Agreement, noting that it had considered and approved the annual renewal of the Prior Sub-Advisory Agreement at its August 2016 meeting. The Board considered and discussed information and analysis provided by the Adviser and Partnervest over the course of Partnervest’s service to the Fund as sub-adviser. At the February 2017 meeting, the Board also discussed information provided by Partnervest and the Adviser about the Transaction. The Board considered all factors that it deemed to be relevant. 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 are addressed in more detail below.

Nature, Extent and Quality of the Services to be Provided

In considering the nature, extent and quality of the services provided by Partnervest, the Board reviewed the portfolio management services provided to the Fund. The most recent Form ADV for Partnervest had been provided to the Board at the August 2016 meeting, as were Partnervest’s

172

Board Review of Investment Advisory and Sub-Advisory Agreements (continued)

responses to a detailed series of questions that requested, among other things, information about its business, services, and compensation. The Board considered Partnervest’s overall quality of personnel, operations, and financial condition, its investment advisory capabilities, and information concerning its compliance function, operational capabilities, and portfolio management team. The Board noted that the Transaction is expected to bring in additional equity capital to Partnervest Financial Group LLC. Based on its review, the Board concluded that it was satisfied with the nature, extent and quality of the services provided to the Fund by Partnervest.

Performance

The Board reviewed information regarding the Fund’s performance, including information regarding factors impacting the performance of the Fund, outlining current market conditions, and explaining Partnervest’s expectations and strategies for the future. Based on this information, the Board concluded that it was satisfied with the investment results that Partnervest has been able to achieve for the Fund.

Cost of Services and Profitability

In considering whether the sub-advisory fee payable with respect to the Fund was reasonable, the Board had reviewed at the August 2016 meeting the sub-advisory fee paid by the Adviser to Partnervest, the fees waived and/or expenses reimbursed by Partnervest over the period, the costs and other expenses incurred by Partnervest in providing advisory services, and the profitability analysis with respect to the Fund. The Board noted that it had also reviewed information comparing the advisory fees paid by the Fund to those paid by comparable funds. The Board noted that the proposed fee under the New Sub-Advisory Agreement is the same as the fee under the Prior Sub-Advisory Agreement. The Board concluded that the fee appeared reasonable in light of the services rendered.

Economies of Scale

At the August 2016 meeting, the Board considered whether economies of scale were realized for the Fund, noting the fee waivers and expense reimbursements by the Adviser and Partnervest. The Board determined to reassess at an appropriate time in the future whether the advisory fee appropriately took into account any economies of scale that had been realized as a result of any significant asset growth of the Fund.

Conclusion

Based on its deliberations, the Board, including the Independent Trustees, unanimously concluded that the terms of the New Sub-Advisory Agreement, including the fee, are fair and reasonable in light of the services that Partnervest provides to the Fund and approved the New Sub-Advisory Agreement.

173

SUPPLEMENTAL INFORMATION

Quarterly Portfolio Holdings Information

The Funds are 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 on the SEC’s website at www.sec.gov. You can also obtain copies of Form N-Q by 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.

Proxy Voting Information

A description of the Funds proxy voting policies and procedures, as well as a record of how the Funds voted proxies during the most recent 12-month period ended June 30, is available without charge upon request by calling 1-877-843-3831. This information is also available on the SEC’s website at www.sec.gov.

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 www.advisorshares.com.

174

ADVISORSHARES TRUST

Investment Advisor
AdvisorShares Investments, LLC
4800 Montgomery Lane, Suite 150
Bethesda, MD 20814

Sub-Advisors
Madrona Funds, LLC
2911 Bond Street, Suite 105
Everett, WA 98201

Ranger Alternative Management, L.P.
2828 N. Harwood Street, Suite 1900
Dallas, TX 75201

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

American Wealth Management
570 Hammill Lane
Reno, NV 89511

Newfleet Asset Management, LLC
100 Pearl Street
Hartford, CT 06103

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

Sage Advisory Services, Ltd. Co.
5900 Southwest Parkway, Building I
Austin, TX 78735

Pacific Life Fund Advisors, LLC
700 Newport Center Drive
Newport Beach, CA 92660

Cornerstone Investment Partners, LLC
3438 Peachtree Road NE, Suite 900
Atlanta, GA 30326

Dorsey, Wright & Associates, LLC
1101 Boulder Spring Drive, Suite 150
Richmond, VA 23225

Korea Investment Management Co., Ltd.
88 Uisadang-Daero, Yeondgdeungpo
Seoul, Korea,150-745

Wilshire Associates Incorporated
1299 Ocean Avenue
Santa Monica, CA 90401

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 Avenue, NW
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.

(a)

The registrant, as of the end of the period covered by this report, has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party.

(c)

There have been no amendments, during the period covered by this report, to a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics description.

(d)

The registrant has not granted any waivers, including an implicit waiver, from a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, that relates to one or more of the items set forth in paragraph (b) of this item’s instructions.

Item 3. Audit Committee Financial Expert.

The Registrant’s Board of Trustees has one audit committee financial expert serving on its audit committee, an “independent” Trustee, Elizabeth Piper/Bach. Under applicable securities laws, a person who is determined to be an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities that are greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and Board of Trustees in the absence of such designation or identification.

Item 4. Principal Accountant Fees and Services.

Audit Fees

(a)

The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years are $263,000 for 2017 and $315,000 for 2016.

Audit-Related Fees

(b)

The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph (a) of this Item are $0 for 2017 and $0 for 2016.

Tax Fees

(c)

The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning are $51,000 for 2017 and $63,000 for 2016.

All Other Fees

(d)

The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item are $0 for 2017 and $0 for 2016.

(e)(1)

Disclose the audit committee's pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.

Per Rule 2-01(c)(7)(A), the Audit Committee pre-approves all of the Audit, Audit-Related, Tax and Other Fees of the Registrant.

(e)(2)

The percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X are as follows:

(b)N/A

(d) N/A

(f)

The percentage of hours expended on the principal accountant's engagement to audit the registrant's financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant's full-time, permanent employees was less than fifty percent.

(g)

The aggregate non-audit fees billed by the registrant's accountant for services rendered to the registrant, and rendered to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant was $0 for 2017 and $0 for 2016.

(h)

Not applicable.

Item 5. Audit Committee of Listed Registrants.

(a)

The Fund has a designated Audit Committee in accordance with Section 3(a)(58)(A) of the Securities and Exchange Act of 1934 (the “Exchange Act”) and the member of such committee is Elizabeth Piper/Bach and William G. McVay.

(b)

Not applicable.

Item 6. Investments.

(a)

Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period 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 and Affiliated Purchasers.

Not applicable.

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

Not applicable.

Item 11. Controls and Procedures.

(a)

The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).

(b)

There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during the registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a)(1)

Code of ethics, or any amendment thereto, that is the subject of disclosure required by Item 2 is attached hereto.

(a)(2)

Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.

(a)(3)

Not applicable.

(b)

Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.

(12.other)

Not applicable.

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 (Signature and Title)*	/s/ Noah Hamman
	Noah Hamman, Chief Executive Officer
	(principal executive officer)

Date

9/5/2017

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.

By (Signature and Title)*	/s/ Noah Hamman
	Noah Hamman, Chief Executive Officer
	(principal executive officer)

Date

9/5/2017

By (Signature and Title)*	/s/ Dan Ahrens
	Dan Ahrens, Treasurer
	(principal financial officer)

Date

9/5/2017

^* Print the name and title of each signing officer under his or her signature.