Name and Address of Agent for Service: | Copy to: |
Noah Hamman AdvisorShares Trust 4800 Montgomery Lane, Suite 150 Bethesda, Maryland 20814 | W. John McGuire, Esq. Morgan, Lewis & Bockius LLP 1111 Pennsylvania Avenue, NW Washington, DC 20004 |
☐ | immediately upon filing pursuant to paragraph (b) of Rule 485 |
☒ | on |
☐ | 60 days after filing pursuant to paragraph (a)(1) of Rule 485 |
☐ | on (date) pursuant to paragraph (a)(1) of Rule 485 |
☐ | 75 days after filing pursuant to paragraph (a)(2) of Rule 485 |
☐ | on (date) pursuant to paragraph (a)(2) of rule 485 |
☐ | this post-effective amendment designates a new effective date for a previously filed post-effective amendment. |
Sub-advised by: Alpha DNA Investment Management LLC |
ADVISORSHARES TRUST 4800 Montgomery Lane ● Suite 150 Bethesda, Maryland 20814 www.advisorshares.com 877.843.3831 Prospectus dated |
SHAREHOLDER FEES (fees paid directly from your investment) | |
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment) | |
MANAGEMENT FEES | |
DISTRIBUTION (12b-1) FEES | |
OTHER EXPENSES | |
TOTAL ANNUAL OPERATING EXPENSES |
1 YEAR | 3 YEARS | 5 YEARS | 10 YEARS | |
AdvisorShares Alpha DNA Equity Sentiment ETF | $ | $ | $ | $ |
1 |
2 |
3 |
Name | Title |
AdvisorShares Investments, LLC | Advisor |
Alpha DNA Investment Management LLC | Sub-Advisor |
4 |
Name and Title | Length of Service with Sub-Advisor |
Wayne Ferbert, Co-Founder and Managing Director | since November 2014 |
5 |
● | catalysts that could affect the likelihood of a stock move in the near-term; |
● | any merger or proposed merger of the stock with another stock; |
● | any bankruptcy filings or announcement by the firm that causes the solvency of the firm to be in question; and |
● | possible temporary mis-pricings caused by apparent market volatility or market disruptions. |
6 |
7 |
8 |
9 |
10 |
11 |
12 |
13 |
● | the Fund makes distributions; |
● | you sell Fund shares; and |
● | you purchase or redeem Creation Units (authorized participants only). |
● | The Fund intends to distribute, at least annually, substantially all of its net investment income and net capital gains income. |
● | The Fund’s distributions from income and net short-term capital gains will generally be taxed to you as ordinary income. For non-corporate shareholders, dividends reported by the Fund as qualified dividend income are generally eligible for reduced tax rates applicable to long-term capital gains, provided holding period and other requirements are met. Qualified dividend income generally is income derived from dividends paid by U.S. corporations or certain foreign corporations that are either incorporated in a U.S. possession or eligible for tax benefits under certain U.S. income tax treaties. In addition, dividends that the Fund receives in respect of stock of certain foreign corporations may be qualified dividend income if that stock is readily tradable on an established U.S. securities market. For such dividends to be taxed as qualified dividend income to a non-corporate shareholder, the Fund must satisfy certain holding period requirements with respect to the underlying stock and the non-corporate shareholder must satisfy holding period requirements with respect to his or her ownership of the Fund’s shares. Holding periods may be suspended for these purposes for stock that is hedged. The Fund’s investment strategies may limit its ability to distribute dividends eligible to be reported as qualified dividend income. |
● | Corporate shareholders may be entitled to dividends received deduction for the portion of dividends they receive that are attributable to dividends received by the Fund (directly or in some cases indirectly) from U.S. corporations, subject to certain limitations. The Fund’s investment strategies may limit its ability to distribute dividends eligible for the dividends received deduction for corporate shareholders. |
● | Taxes on distributions of capital gains (if any) are determined by how long the Fund owned the investments that generated them, rather than how long a shareholder has owned their shares. Sales of assets held by the Fund for more than one year generally result in long-term capital gains and losses, and sales of assets held by the Fund for one year or less generally result in short-term capital gains and losses. Distributions from the Fund’s short-term capital gains are generally taxable as ordinary income. Any distributions of net capital gain (the excess of the Fund’s net long-term capital gains over its net short-term capital losses) that you receive from the Fund generally are taxable as long-term capital gains regardless of how long you have owned your shares. Long-term capital gains are taxed to non-corporate shareholders at reduced tax rates. |
● | Dividends and distributions are generally taxable to you whether you receive them in cash or reinvest them in additional shares. |
● | In general, your distributions are subject to federal income tax for the year in which they are paid. However, distributions paid in January but declared by the Fund in October, November or December of the previous year may be taxable to you in the previous year. |
· | Shortly after the close of each calendar year, the Fund will inform you of the amount of your ordinary income dividends, qualified dividend income, foreign tax credits, and net capital gain distributions received from the Fund . |
14 |
● | You may wish to avoid investing in the Fund (or your broker) shortly before a dividend or other distribution, because such a distribution will generally be taxable even though it may economically represent a return of a portion of your investment. |
15 |
16 |
AdvisorShares Alpha DNA Equity Sentiment ETF | For the period February 2, 2021* to June 30, 2021 | |||
Selected Data for a Share of Capital Stock Outstanding | ||||
Net Asset Value, Beginning of Year/Period | $ | 25.35 | ||
Investment Operations | ||||
Net Investment Loss (1) | (0.07 | ) | ||
Net Realized and Unrealized Gain | 2.30 | |||
Net Increase in Net Assets Resulting from Investment Operations (2) | 2.23 | |||
Net Asset Value, End of Year/Period | $ | 27.58 | ||
Market Value, End of Year/Period | $ | 27.58 | ||
Total Return | ||||
Total Investment Return Based on Net Asset Value (3) | 8.78 | % | ||
Total Investment Return Based on Market (3) | 8.80 | % | ||
Ratios/Supplemental Data | ||||
Net Assets, End of Year/Period (000’s omitted) | $ | 69,907 | ||
Ratio to Average Net Assets of: | ||||
Expenses, net of expense waivers and reimbursements (4) | 1.08 | % | ||
Expenses, prior to expense waivers and reimbursements (4) | 1.08 | % | ||
Net Investment Loss (4) | (0.67 | )% | ||
Portfolio Turnover Rate (5) | 244 | % |
* | Commencement of operations. |
(1) | Based on average shares outstanding. |
(2) | The amount shown for a share distribution throughout the period may not correlate with the Statement 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. |
(3) | 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. |
(4) | Ratios of periods of less than one year have been annualized. Excludes expenses incurred by the underlying investments in other funds. |
(5) | Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as in-kind creations or redemptions of the Fund’s capital shares. |
17 |
Advisor | AdvisorShares Investments, LLC 4800 Montgomery Lane, Suite 150 Bethesda, Maryland 20814 |
Sub-Advisor | Alpha DNA Investment Management LLC 8860 Columbia 100 Parkway, Suite 301 Columbia, Maryland 21045 |
Distributor | Foreside Fund Services, LLC Three Canal Plaza, Suite 100 Portland, Maine 04101 |
Legal Counsel | Morgan, Lewis & Bockius LLP 1111 Pennsylvania Avenue, NW Washington, DC 20004 |
Administrator, Custodian & Transfer Agent | The Bank of New York Mellon 240 Greenwich Street New York, New York 10286 |
18 |
NASDAQ Ticker: | |
NASDAQ Ticker: | |
NASDAQ Ticker: |
SHAREHOLDER FEES (fees paid directly from your investment) | |
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment) | |
MANAGEMENT FEES | |
DISTRIBUTION (12b-1) FEES | |
OTHER EXPENSES | |
ACQUIRED FUND FEES AND EXPENSES (a) | |
TOTAL ANNUAL OPERATING EXPENSES | |
FEE /EXPENSE RECAPTURE (b) | |
TOTAL ANNUAL OPERATING EXPENSES AFTER RECAPTURE |
(a) | Total Annual Operating Expenses and Total Annual Operating Expenses After Fee Waiver/Expense Reimbursement in this fee table may not correlate to the expense ratios in the Fund’s financial highlights (and the Fund’s financial statements) because the financial highlights include only the Fund’s direct operating expenses and do not include Acquired Fund Fees and Expenses, which represent the Fund’s pro rata share of the fees and expenses of the exchange-traded funds (each, an “ETF”) in which it invests. |
(b) | AdvisorShares Investments, LLC (the “Advisor”) has contractually agreed to waive its fees and/or reimburse expenses to keep net expenses (excluding amounts payable pursuant to any plan adopted in accordance with Rule 12b-1, interest expense, taxes, brokerage commissions, acquired fund fees and expenses, other expenditures which are capitalized in accordance with generally accepted accounting principles, and extraordinary expenses) from exceeding 0.99% of the Fund’s average daily net assets |
1 YEAR | 3 YEARS | 5 YEARS | 10 YEARS | |
AdvisorShares Dorsey Wright FSM US Core ETF | $ | $ | $ | $ |
● | Concentration Risk . An ETF may, at various times, concentrate in the securities of a particular industry, group of industries, or sector, and when a fund is over-weighted in an industry, group of industries, or sector, it may be more sensitive to any single economic, business, political, or regulatory occurrence than a fund that is not over-weighted in an industry, group of industries, or sector. |
● | Credit Risk . Certain of the ETFs are subject to the risk that a decline in the credit quality of a portfolio investment or reference asset could cause the ETF’s share price to fall. The ETFs could lose money if the issuer or guarantor of a portfolio investment or the counterparty to a derivatives contract fails to make timely principal or interest payments or otherwise honor its obligations. |
● | Equity Risk . The prices of equity securities rise and fall daily. These price movements may result from factors affecting individual issuers, industries or the stock market as a whole. In addition, equity markets tend to move in cycles which may cause stock prices to fall over short or extended periods of time. |
● | Fixed Income Securities Risk . An ETF’s investments in, or exposure to, fixed income securities are subject to the risk that the securities may be paid off earlier or later than expected. Either situation could cause the ETF to hold securities paying lower- than-market rates of interest, which could hurt the Fund’s yield or share price. |
● | High-Yield Risk . An ETF may invest in, or be exposed to, high-yield securities and unrated securities of similar credit quality (commonly known as “junk bonds”). High-yield securities generally pay higher yields (greater income) than investment in higher quality securities; however, high-yield securities and junk bonds may be subject to greater levels of interest rate, credit and liquidity risk than funds that do not invest in such securities, and are considered predominantly speculative with respect to an issuer’s continuing ability to make principal and interest payments. |
● | Income Risk . An ETF may derive dividend and interest income from certain of its investments. This income can vary widely over the short- and long-term. If prevailing market interest rates drop, distribution rates of an ETF’s income producing investments may decline which then may adversely affect the Fund’s value. |
● | Interest Rate Risk . An ETF’s investments in or exposure to fixed income securities are subject to the risk that interest rates rise and fall over time. As with any investment whose yield reflects current interest rates, an ETF’s yield will change over time. During periods when interest rates are low, an ETF’s yield (and total return) also may be low. To the extent that the investment advisor or issuer of an ETF anticipates interest rate trends imprecisely, the ETF could miss yield opportunities or its share price could fall. |
● | Large-Capitalization Ris k. The large-cap segment of the market may underperform other segments of the equity market or the equity market as a whole. The underperformance of large-cap securities may cause the ETF’s performance to be less than expected. |
Return | Quarter/Year | |
- |
ADVISORSHARES DORSEY WRIGHT FSM US CORE ETF | 1 Year | Since Inception ( |
S&P 500 Index ( |
Name | Title |
AdvisorShares Investments, LLC | Advisor |
Name and Title | Length of Service with the Advisor |
Dan S. Ahrens , Managing Director, Chief Operating Officer and Portfolio Manager | since November 2008 |
SHAREHOLDER FEES (fees paid directly from your investment) | |
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment) | |
MANAGEMENT FEES | |
DISTRIBUTION (12b-1) FEES | |
OTHER EXPENSES | |
ACQUIRED FUND FEES AND EXPENSES (a) | |
TOTAL ANNUAL OPERATING EXPENSES | |
FEE /EXPENSE RECAPTURE (b) | |
TOTAL ANNUAL OPERATING EXPENSES AFTER RECAPTURE |
(a) | Total Annual Operating Expenses and Total Annual Operating Expenses After Fee Waiver/Expense Reimbursement in this fee table may not correlate to the expense ratios in the Fund’s financial highlights (and the Fund’s financial statements) because the financial highlights include only the Fund’s direct operating expenses and do not include Acquired Fund Fees and Expenses, which represent the Fund’s pro rata share of the fees and expenses of the exchange-traded funds (each, an “ETF”) in which it invests. |
(b) | AdvisorShares Investments, LLC (the “Advisor”) has contractually agreed to waive its fees and/or reimburse expenses to keep net expenses (excluding amounts payable pursuant to any plan adopted in accordance with Rule 12b-1, interest expense, taxes, brokerage commissions, acquired fund fees and expenses, other expenditures which are capitalized in accordance with generally accepted accounting principles, and extraordinary expenses) from exceeding 0.99% of the Fund’s average daily net assets |
1 YEAR | 3 YEARS | 5 YEARS | 10 YEARS | |
AdvisorShares Dorsey Wright FSM All Cap World ETF | $ | $ | $ | $ |
● | Concentration Risk . An ETF may, at various times, concentrate in the securities of a particular industry, group of industries, or sector, and when a fund is over-weighted in an industry, group of industries, or sector, it may be more sensitive to any single economic, business, political, or regulatory occurrence than a fund that is not over-weighted in an industry, group of industries, or sector. |
● | Credit Risk . Certain of the ETFs are subject to the risk that a decline in the credit quality of a portfolio investment or reference asset could cause the ETF’s share price to fall. The ETFs could lose money if the issuer or guarantor of a portfolio investment or the counterparty to a derivatives contract fails to make timely principal or interest payments or otherwise honor its obligations. |
● | Currency Risk . An ETF’s direct and indirect exposure to foreign currencies subjects it to the risk that those currencies will decline in value relative to the U.S. dollar. |
● | Emerging Markets Risk . Emerging markets, which consist of countries or markets with low to middle income economies as classified by the World Bank and other countries or markets with similar characteristics as determined by the Advisor, can be subject to greater social, economic, regulatory, and political uncertainties and can be extremely volatile. |
● | Equity Risk . The prices of equity securities rise and fall daily. These price movements may result from factors affecting individual issuers, industries or the stock market as a whole. In addition, equity markets tend to move in cycles which may cause stock prices to fall over short or extended periods of time. |
● | Fixed Income Securities Risk . An ETF’s investments in, or exposure to, fixed income securities are subject to the risk that the securities may be paid off earlier or later than expected. Either situation could cause the ETF to hold securities paying lower- than-market rates of interest, which could hurt the Fund’s yield or share price. |
● | Foreign Securities Risk . An ETF’s investments in, or exposure to, foreign issuers involve certain risks including, but not limited to, risks of adverse changes in foreign economic, political, regulatory and other conditions, or changes in currency exchange rates or exchange control regulations (including limitations on currency movements and exchanges). In certain countries, legal remedies available to investors may be more limited than those available with respect to investments in the United States. In addition, the securities of some foreign companies may be less liquid and, at times, more volatile than securities of comparable U.S. companies. |
● | High-Yield Risk . An ETF may invest in, or be exposed to, high-yield securities and unrated securities of similar credit quality (commonly known as “junk bonds”). High-yield securities generally pay higher yields (greater income) than investment in higher quality securities; however, high-yield securities and junk bonds may be subject to greater levels of interest rate, credit and liquidity risk than funds that do not invest in such securities, and are considered predominantly speculative with respect to an issuer’s continuing ability to make principal and interest payments. |
● | Income Risk . An ETF may derive dividend and interest income from certain of its investments. This income can vary widely over the short- and long-term. If prevailing market interest rates drop, distribution rates of an ETF’s income producing investments may decline which then may adversely affect the Fund’s value. |
● | Interest Rate Risk . An ETF’s investments in or exposure to fixed income securities are subject to the risk that interest rates rise and fall over time. As with any investment whose yield reflects current interest rates, an ETF’s yield will change over time. During periods when interest rates are low, an ETF’s yield (and total return) also may be low. To the extent that the investment advisor or issuer of an ETF anticipates interest rate trends imprecisely, the ETF could miss yield opportunities or its share price could fall. |
Return | Quarter/Year | |
- |
ADVISORSHARES Dorsey Wright FSM ALL CAP WORLD ETF | 1 Year | Since Inception ( |
Return Before Taxes Based on NAV | ||
Return After Taxes on Distributions | ||
Return After Taxes on Distributions and Sale of Fund Shares | ||
MSCI All Country World Index (Net) (reflects no deduction for fees, expenses, or taxes) |
Name | Title |
AdvisorShares Investments, LLC | Advisor |
Name and Title | Length of Service with Advisor |
Dan S. Ahrens , Managing Director, Chief Operating Officer and Portfolio Manager | since November 2008 |
SHAREHOLDER FEES (fees paid directly from your investment) | |
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment) | |
MANAGEMENT FEES | |
DISTRIBUTION (12b-1) FEES | |
OTHER EXPENSES | |
TOTAL ANNUAL OPERATING EXPENSES | |
FEE /EXPENSE RECAPTURE * | |
TOTAL ANNUAL OPERATING EXPENSES RECAPTURE |
* | AdvisorShares Investments, LLC (the “Advisor”) has contractually agreed to waive its fees and/or reimburse expenses to keep net expenses (excluding amounts payable pursuant to any plan adopted in accordance with Rule 12b-1, interest expense, taxes, brokerage commissions, acquired fund fees and expenses, other expenditures which are capitalized in accordance with generally accepted accounting principles, and extraordinary expenses) from exceeding 0.99% of the Fund’s average daily net assets |
1 YEAR | 3 YEARS | 5 YEARS | 10 YEARS | |
AdvisorShares Dorsey Wright Alpha Equal Weight ETF | $ | $ | $ | $ |
Return | Quarter/Year | |
- |
ADVISORSHARES Dorsey Wright ALPHA EQUAL WEIGHT ETF | 1 Year | Since Inception ( |
Return Before Taxes Based on NAV | ||
Return After Taxes on Distributions | ||
Return After Taxes on Distributions and Sale of Fund Shares | ||
S&P 500 Index (reflects no deduction for fees, expenses, or taxes) |
Name | Title |
AdvisorShares Investments, LLC | Advisor |
Name and Title | Length of Service with Advisor |
Dan S. Ahrens , Managing Director, Chief Operating Officer and Portfolio Manager | since November 2008 |
● |
a Fund makes distributions; |
● |
you sell Fund shares; and |
● |
you purchase or redeem Creation Units (authorized participants only). |
● |
Each Fund intends to distribute, at least annually, substantially all of its net investment income and net capital gains income. |
● |
The income dividends you receive from a Fund will generally be taxed to you as either ordinary income or “qualified dividend income.” For non-corporate shareholders, dividends reported by a Fund as qualified dividend income are generally eligible for reduced tax rates applicable to long-term capital gains, provided holding period and other requirements are met. Qualified dividend income generally is income derived from dividends paid by U.S. corporations or certain foreign corporations that are either incorporated in a U.S. possession or eligible for tax benefits under certain U.S. income tax treaties. In addition, dividends that a Fund receives in respect of stock of certain foreign corporations may be qualified dividend income if that stock is readily tradable on an established U.S. securities market. For such dividends to be taxed as qualified dividend income to a non-corporate shareholder, a Fund must satisfy certain holding period requirements with respect to the underlying stock and the non-corporate shareholder must satisfy holding period requirements with respect to his or her ownership of the Fund’s shares. Holding periods may be suspended for these purposes for stock that is hedged. In general, dividends received by a Fund from an ETF taxable as a RIC may be distributed and reported as qualified dividend income by the Fund to the extent of the dividend distributions distributed and reported as qualified dividend income by the ETF. Certain of the Funds’ investment strategies may limit their ability to report distributions as qualified dividend income. |
● |
Corporate shareholders may be entitled to a dividends received deduction for the portion of dividends they receive that are attributable to dividends received by a Fund (directly or in some cases indirectly) from U.S. corporations, subject to certain limitations. Certain of the Funds’ investment strategies may limit their ability to report distributions as eligible for the dividends received deduction. |
● |
Taxes on distributions of capital gains (if any) are determined by how long a Fund owned the investments that generated them, rather than how long a shareholder has owned their shares. Sales of assets held by a Fund for more than one year generally result in long-term capital gains and losses, and sales of assets held by a Fund for one year or less generally result in short-term capital gains and losses. Distributions from a Fund’s short-term capital gains are generally taxable as ordinary income. Any distributions of net capital gain (the excess of a Fund’s net long-term capital gains over its net short-term capital losses) that you receive from a Fund generally are taxable as long-term capital gains regardless of how long you have owned your shares. Long-term capital gains are taxed to non-corporate shareholders at reduced tax rates. |
● |
Dividends and distributions are generally taxable to you whether you receive them in cash or reinvest them in additional shares. |
● |
In general, your distributions are subject to federal income tax for the year in which they are paid. However, distributions paid in January but declared by a Fund in October, November or December of the previous year may be taxable to you in the previous year. |
● |
Shortly after the close of each calendar year, each Fund in which you invest (or your broker) will inform you of the amount of your ordinary income dividends, qualified dividend income, foreign tax credits, and net capital gain distributions received from the Fund. |
● |
You may wish to avoid investing in a Fund shortly before a dividend or other distribution, because such a distribution will generally be taxable even though it may economically represent a return of a portion of your investment. |
AdvisorShares Dorsey Wright FSM US Core ETF |
Year ended June 30, 2021 |
For the period December 26, 2019* to June 30, 2020 |
||||||
Selected Data for a Share of Capital Stock Outstanding |
||||||||
Net Asset Value, Beginning of Year/Period |
$ |
27.51 |
$ |
25.14 |
||||
Investment Operations |
||||||||
Net Investment Income (Loss) (1) |
(0.07 |
) |
0.05 |
|||||
Net Realized and Unrealized Gain |
9.72 |
2.32 |
||||||
Net Increase in Net Assets Resulting from Investment Operations (2) |
9.65 |
2.37 |
||||||
Distributions from Net Investment Income |
(0.03 |
) |
— |
|||||
Distributions from Realized Capital Gains |
(0.04 |
) |
— |
|||||
Total Distributions |
(0.07 |
) |
— |
|||||
Net Asset Value, End of Year/Period |
$ |
37.09 |
$ |
27.51 |
||||
Market Value, End of Year/Period |
$ |
37.16 |
$ |
27.46 |
||||
Total Return |
||||||||
Total Investment Return Based on Net Asset Value (3) |
35.08 |
% |
9.43 |
% |
||||
Total Investment Return Based on Market (3) |
35.59 |
% |
9.23 |
% |
||||
Ratios/Supplemental Data |
||||||||
Net Assets, End of Year/Period (000’s omitted) |
$ |
93,649 |
$ |
46,767 |
||||
Ratio to Average Net Assets of: (4) |
||||||||
Expenses, net of expense waivers and reimbursements (5) |
0.92 |
% |
0.99 |
% |
||||
Expenses, prior to expense waivers and reimbursements (5) |
0.89 |
% |
1.15 |
% |
||||
Net Investment Income (Loss) (5) |
(0.22 |
)% |
0.37 |
% |
||||
Portfolio Turnover Rate (6) |
64 |
% |
53 |
% |
* | Commencement of operations. |
(1) | Based on average shares outstanding. |
(2) | The amount shown for a share distribution throughout the period may not correlate with the Statement 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. |
(3) | 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. |
(4) | The Fund invests in other funds and indirectly bear their proportionate shares of fees and expenses incurred by the funds in which the Fund is invested. These ratios do not include these indirect fees and expenses. |
(5) | Ratios of periods of less than one year have been annualized. Excludes expenses incurred by the underlying investments in other funds. |
(6) | 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. |
AdvisorShares Dorsey Wright FSM All Cap World ETF | Year ended June 30, 2021 | For the period December 26, 2019* to June 30, 2020 | ||||||
Selected Data for a Share of Capital Stock Outstanding | ||||||||
Net Asset Value, Beginning of Year/Period | $ | 28.07 | $ | 25.12 | ||||
Investment Operations | ||||||||
Net Investment Loss (1) | (0.12 | ) | (0.02 | ) | ||||
Net Realized and Unrealized Gain | 8.74 | 2.97 | ||||||
Net Increase in Net Assets Resulting from Investment Operations (2) | 8.62 | 2.95 | ||||||
Distributions from Realized Capital Gains | (0.06 | ) | — | |||||
Total Distributions | (0.06 | ) | — | |||||
Net Asset Value, End of Year/Period | $ | 36.63 | $ | 28.07 | ||||
Market Value, End of Year/Period | $ | 36.67 | $ | 28.07 | ||||
Total Return | ||||||||
Total Investment Return Based on Net Asset Value (3) | 30.70 | % | 11.76 | % | ||||
Total Investment Return Based on Market (3) | 30.85 | % | 11.74 | % | ||||
Ratios/Supplemental Data | ||||||||
Net Assets, End of Year/Period (000’s omitted) | $ | 155,673 | $ | 73,685 | ||||
Ratio to Average Net Assets of: (6) | ||||||||
Expenses, net of expense waivers and reimbursements (4) | 0.88 | % | 0.99 | % | ||||
Expenses, prior to expense waivers and reimbursements (4) | 0.86 | % | 1.12 | % | ||||
Net Investment Loss (4) | (0.34 | )% | (0.17 | )% | ||||
Portfolio Turnover Rate (5) | 209 | % | 46 | % |
* | Commencement of operations. |
(1) | Based on average shares outstanding. |
(2) | The amount shown for a share distribution throughout the period may not correlate with the Statement 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. |
(3) | 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. |
(4) | Ratios of periods of less than one year have been annualized. Excludes expenses incurred by the underlying investments in other funds. |
(5) | Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as in-kind creations or redemptions of the Fund’s capital shares. |
(6) | The Fund invests in other funds and indirectly bear their proportionate shares of fees and expenses incurred by the funds in which the Fund is invested. These ratios do not include these indirect fees and expenses. |
AdvisorShares Dorsey Wright Alpha Equal Weight ETF | Year ended June 30, 2021 | For the period December 26, 2019* to June 30, 2020 | ||||||
Selected Data for a Share of Capital Stock Outstanding | ||||||||
Net Asset Value, Beginning of Year/Period | $ | 20.43 | $ | 25.09 | ||||
Investment Operations | ||||||||
Net Investment Income (Loss) (1) | (0.11 | ) | 0.01 | |||||
Net Realized and Unrealized Gain (Loss) | 7.55 | (4.67 | ) | |||||
Net Increase (Decrease) in Net Assets Resulting from Investment Operations (2) | 7.44 | (4.66 | ) | |||||
Distributions from Net Investment Income | (0.01 | ) | — | |||||
Total Distributions | (0.01 | ) | — | |||||
Net Asset Value, End of Year/Period | $ | 27.86 | $ | 20.43 | ||||
Market Value, End of Year/Period | $ | 27.90 | $ | 20.44 | ||||
Total Return | ||||||||
Total Investment Return Based on Net Asset Value (3) | 36.36 | % | (18.57 | )% | ||||
Total Investment Return Based on Market (3) | 36.52 | % | (18.53 | )% | ||||
Ratios/Supplemental Data | ||||||||
Net Assets, End of Year/Period (000’s omitted) | $ | 79,394 | $ | 39,333 | ||||
Ratio to Average Net Assets of: | ||||||||
Expenses, net of expense waivers and reimbursements (4) | 0.96 | % | 0.99 | % | ||||
Expenses, prior to expense waivers and reimbursements (4) | 0.91 | % | 1.19 | % | ||||
Net Investment Income (Loss) (4) | (0.42 | )% | 0.09 | % | ||||
Portfolio Turnover Rate (5) | 372 | % | 147 | % |
* | Commencement of operations. |
(1) | Based on average shares outstanding. |
(2) | The amount shown for a share distribution throughout the period may not correlate with the Statement 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. |
(3) | 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. |
(4) | Ratios of periods of less than one year have been annualized. Excludes expenses incurred by the underlying investments in other funds. |
(5) | Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as in-kind creations or redemptions of the Fund’s capital shares. |
Advisor | AdvisorShares Investments, LLC 4800 Montgomery Lane, Suite 150 Bethesda, Maryland 20814 |
Distributor | Foreside Fund Services, LLC Three Canal Plaza, Suite 100 Portland, Maine 04101 |
Legal Counsel | Morgan, Lewis & Bockius LLP 1111 Pennsylvania Avenue, NW Washington, DC 20004 |
Administrator, Custodian & Transfer Agent | The Bank of New York Mellon 240 Greenwich Street New York, New York 10286 |
Sub-advised by: Dorsey, Wright & Associates, LLC |
ADVISORSHARES TRUST 4800 Montgomery Lane ● Suite 150 Bethesda, Maryland 20814 www.advisorshares.com 877.843.3831 Prospectus dated November 1, 2021 |
SHAREHOLDER FEES (fees paid directly from your investment) | |
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment) | |
MANAGEMENT FEES | |
DISTRIBUTION (12b-1) FEES | |
OTHER EXPENSES | |
TOTAL ANNUAL OPERATING EXPENSES | |
FEE/EXPENSE RECAPTURE* | |
TOTAL ANNUAL OPERATING EXPENSES AFTER RECAPTURE |
* | AdvisorShares Investments, LLC (the “Advisor”) has contractually agreed to waive its fees and/or reimburse expenses to keep net expenses (excluding amounts payable pursuant to any plan adopted in accordance with Rule 12b-1, interest expense, taxes, brokerage commissions, acquired fund fees and expenses, other expenditures which are capitalized in accordance with generally accepted accounting principles, and extraordinary expenses) from exceeding 1.10% of the Fund’s average daily net assets |
1 YEAR | 3 YEARS | 5 YEARS | 10 YEARS | |
AdvisorShares Dorsey Wright ADR ETF | $ | $ | $ | $ |
1 |
2 |
3 |
Return | Quarter/Year | |||
- |
AdvisorShares Dorsey Wright ADR ETF | 1 Year | 5 Years | 10 Years | |||
Return After Taxes on Distributions and Sale of Fund Shares | ||||||
4 |
Name | Title |
AdvisorShares Investments, LLC | Advisor |
Dorsey, Wright & Associates, LLC | Sub-Advisor |
Name and Title | Length of Service with Sub-Advisor |
John G. Lewis , Senior Vice President & Senior Portfolio Manager | since June 2002 |
5 |
6 |
7 |
8 |
9 |
10 |
11 |
12 |
● | the Fund makes distributions; |
● |
you sell Fund shares; and |
● |
you purchase or redeem Creation Units ( authorized participants only). |
● |
The Fund intends to distribute, at least annually, substantially all of its net investment income and net capital gains income. |
13 |
● |
The income dividends you receive from the Fund will be taxed as either ordinary income or “qualified dividend income.” For non-corporate shareholders, dividends reported by the Fund as qualified dividend income are generally eligible for reduced tax rates applicable to long-term capital gains, provided holding period and other requirements are met. Qualified dividend income generally is income derived from dividends paid by U.S. corporations or certain foreign corporations that are either incorporated in a U.S. possession or eligible for tax benefits under certain U.S. income tax treaties. In addition, dividends that the Fund receives in respect of stock of certain foreign corporations may be qualified dividend income if that stock is readily tradable on an established U.S. securities market. For such dividends to be taxed as qualified dividend income to a non-corporate shareholder, the Fund must satisfy certain holding period requirements with respect to the underlying stock and the non-corporate shareholder must satisfy holding period requirements with respect to his or her ownership of the Fund’s shares. Holding periods may be suspended for these purposes for stock that is hedged. income. |
● |
Corporate shareholders may be entitled to a dividends received deduction for the portion of dividends they receive that are attributable to dividends received by the Fund (directly or in some cases indirectly) from U.S. corporations, subject to certain limitations. The Fund’s investment strategies may significantly limit its ability to distribute dividends eligible for the dividends received deduction for corporate shareholders. |
● |
Taxes on distributions of capital gains (if any) are determined by how long the Fund owned the investments that generated them, rather than how long a shareholder has owned their shares. Sales of assets held by the Fund for more than one year generally result in long-term capital gains and losses, and sales of assets held by the Fund for one year or less generally result in short-term capital gains and losses. Distributions from the Fund’s short-term capital gains are generally taxable as ordinary income. Any distributions of net capital gain (the excess of the Fund’s net long-term capital gains over its net short-term capital losses) that you receive from the Fund generally are taxable as long-term capital gains regardless of how long you have owned your shares. Long-term capital gains are taxed to non-corporate shareholders at reduced tax rates. |
● |
Dividends and distributions are generally taxable to you whether you receive them in cash or reinvest them in additional shares. |
● |
In general, your distributions are subject to federal income tax for the year in which they are paid. However, distributions paid in January but declared by the Fund in October, November or December of the previous year may be taxable to you in the previous year. |
● |
Shortly after the close of each calendar year, the Fund will inform you of the amount of your ordinary income dividends, qualified dividend income, foreign tax credits, and net capital gain distributions received from the Fund. |
● |
You may wish to avoid investing in the Fund (or your broker) shortly before a dividend or other distribution, because such a distribution will generally be taxable even though it may economically represent a return of a portion of your investment. |
14 |
15 |
16 |
AdvisorShares Dorsey Wright ADR ETF |
Years Ended June 30, |
|||||||||||||||||||
2021 |
2020 |
2019 |
2018 |
2017 |
||||||||||||||||
Selected Data for a Share of Capital Stock Outstanding |
||||||||||||||||||||
Net Asset Value, Beginning of Year/Period |
$ |
53.25 |
$ |
49.75 |
$ |
53.34 |
$ |
46.56 |
$ |
39.06 |
||||||||||
Investment Operations |
||||||||||||||||||||
Net Investment Income (Loss) (1) |
0.27 |
(0.03 |
) |
0.23 |
0.55 |
0.68 |
||||||||||||||
Net Realized and Unrealized Gain (Loss) |
13.23 |
3.54 |
(3.51 |
) |
6.66 |
7.27 |
||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Investment Operations (2) |
13.50 |
3.51 |
(3.28 |
) |
7.21 |
7.95 |
||||||||||||||
Distributions from Net Investment Income |
(0.21 |
) |
(0.01 |
) |
(0.31 |
) |
(0.43 |
) |
(0.45 |
) |
||||||||||
Total Distributions |
(0.21 |
) |
(0.01 |
) |
(0.31 |
) |
(0.43 |
) |
(0.45 |
) |
||||||||||
Net Asset Value, End of Year/Period |
$ |
66.54 |
$ |
53.25 |
$ |
49.75 |
$ |
53.34 |
$ |
46.56 |
||||||||||
Market Value, End of Year/Period |
$ |
66.49 |
$ |
52.97 |
$ |
49.69 |
$ |
53.19 |
$ |
46.61 |
||||||||||
Total Return |
||||||||||||||||||||
Total Investment Return Based on Net Asset Value (3) |
25.39 |
% |
7.06 |
% |
(6.16 |
)% |
15.45 |
% |
20.43 |
% |
||||||||||
Total Investment Return Based on Market (3) |
25.95 |
% |
6.62 |
% |
(6.00 |
)% |
15.01 |
% |
20.55 |
% |
||||||||||
Ratios/Supplemental Data |
||||||||||||||||||||
Net Assets, End of Year/Period (000’s omitted) |
$ |
88,836 |
$ |
75,879 |
$ |
108,198 |
$ |
246,701 |
$ |
65,185 |
||||||||||
Ratio to Average Net Assets of: |
||||||||||||||||||||
Expenses, net of expense waivers and reimbursements (4) |
1.10 |
% |
1.02 |
% |
0.88 |
% |
1.02 |
% |
1.25 |
% |
||||||||||
Expenses, prior to expense waivers and reimbursements (4) |
0.96 |
% |
0.97 |
% |
1.07 |
% |
0.95 |
% |
1.43 |
% |
||||||||||
Net Investment Income (Loss) (4) |
0.44 |
% |
(0.06 |
)% |
0.47 |
% |
0.96 |
% |
1.55 |
% |
||||||||||
Portfolio Turnover Rate (5) |
85 |
% |
48 |
% |
120 |
% |
71 |
% |
108 |
% (6) |
(1) |
Based on average shares outstanding. |
(2) |
The amount shown for a share distribution throughout the period may not correlate with the Statement 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. |
(3) |
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. |
(4) |
Ratios of periods of less than one year have been annualized. Excludes expenses incurred by the underlying investments in other funds. |
(5) |
Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as in-kind creations or redemptions of the Fund’s capital shares. |
(6) |
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. |
17 |
Advisor |
AdvisorShares Investments, LLC 4800 Montgomery Lane, Suite 150 Bethesda, Maryland 20814 |
Sub-Advisor |
Dorsey, Wright & Associates, LLC 3300 W. Leigh Street Richmond, Virginia 23230 |
Distributor |
Foreside Fund Services, LLC Three Canal Plaza, Suite 100 Portland, Maine 04101 |
Legal Counsel |
Morgan, Lewis & Bockius LLP 1111 Pennsylvania Avenue, NW Washington, DC 20004 |
Administrator, Custodian & Transfer Agent |
The Bank of New York Mellon 240 Greenwich Street New York, New York 10286 |
18 |
NASDAQ Ticker: |
|
NASDAQ Ticker: |
![]() |
Sub-advised by: Dorsey, Wright & Associates, LLC |
ADVISORSHARES TRUST 4800 Montgomery Lane ● Suite 150 Bethesda, Maryland 20814 www.advisorshares.com 877.843.3831 |
Prospectus dated November 1, 2021 |
This Prospectus provides important information about the AdvisorShares Dorsey Wright Micro-Cap ETF and AdvisorShares Dorsey Wright Short ETF, each a series of AdvisorShares Trust. Before you invest, please read this Prospectus and the Funds’ Statement of Additional Information carefully and keep them for future reference. The shares of the Funds have not been approved or disapproved by the U.S. Securities and Exchange Commission nor has the U.S. Securities and Exchange Commission passed upon the accuracy or adequacy of this Prospectus. Any representation to the contrary is a criminal offense. |
SHAREHOLDER FEES (fees paid directly from your investment) |
|
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment) |
|
MANAGEMENT FEES |
|
DISTRIBUTION (12b-1) FEES |
|
OTHER EXPENSES |
|
ACQUIRED FUND FEES AND EXPENSES (a) |
|
TOTAL ANNUAL OPERATING EXPENSES |
|
FEE WAIVER/EXPENSE REIMBURSEMENT (b) |
- |
TOTAL ANNUAL OPERATING EXPENSES AFTER FEE WAIVER/EXPENSE REIMBURSEMENT |
(a) | Total Annual Operating Expenses and Total Annual Operating Expenses After Fee Waiver/Expense Reimbursement in this fee table may not correlate to the expense ratios in the Fund’s financial highlights (and the Fund’s financial statements) because the financial highlights include only the Fund’s direct operating expenses and do not include Acquired Fund Fees and Expenses, which represent the Fund’s pro rata share of the fees and expenses of money market funds in which it invested as a temporary defensive measure. |
(b) | AdvisorShares Investments, LLC (the “Advisor”) has contractually agreed to waive its fees and/or reimburse expenses to keep net expenses (excluding amounts payable pursuant to any plan adopted in accordance with Rule 12b-1, interest expense, taxes, brokerage commissions, acquired fund fees and expenses, other expenditures which are capitalized in accordance with generally accepted accounting principles, and extraordinary expenses) from exceeding 1.25% of the Fund’s average daily net assets |
1 YEAR | 3 YEARS | 5 YEARS | 10 YEARS | |
AdvisorShares Dorsey Wright Micro-Cap ETF | $ | $ | $ | $ |
Return | Quarter/Year | |
- |
ADVISORSHARES DORSEY WRIGHT MICRO-CAP ETF | 1 Year | Since Inception ( |
Return After Taxes on Distributions | ||
Return After Taxes on Distributions and Sale of Fund Shares | ||
Russell Microcap Index (reflects no deduction for fees, expenses, or taxes) |
Name | Title |
AdvisorShares Investments, LLC | Advisor |
Dorsey, Wright & Associates, LLC | Sub-Advisor |
Name and Title | Length of Service with Sub-Advisor |
John G. Lewis, Senior Vice President & Senior Portfolio Manager | since June 2002 |
SHAREHOLDER FEES (fees paid directly from your investment) | ||
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment) | ||
MANAGEMENT FEES | ||
DISTRIBUTION (12b-1) FEES | ||
OTHER EXPENSES | ||
Short Interest Expenses | ||
Remaining Expenses | ||
ACQUIRED FUND FEES AND EXPENSES (a) | ||
TOTAL ANNUAL OPERATING EXPENSES | ||
FEE WAIVER/EXPENSE REIMBURSEMENT (b) | - | |
TOTAL ANNUAL OPERATING EXPENSES AFTER FEE WAIVER/EXPENSE REIMBURSEMENT |
(a) | Total Annual Operating Expenses and Total Annual Operating Expenses After Fee Waiver/Expense Reimbursement in this fee table may not correlate to the expense ratio in the Fund’s financial highlights (and the Fund’s financial statements) because the financial highlights include only the Fund’s direct operating expenses and do not include Acquired Fund Fees and Expenses, which represent the Fund’s pro rata share of the fees and expenses of the exchange-traded funds (each, an “ETF”) in which it invests. |
(b) | AdvisorShares Investments, LLC (the “Advisor”) has contractually agreed to waive its fees and/or reimburse expenses to keep net expenses (excluding amounts payable pursuant to any plan adopted in accordance with Rule 12b-1, interest expense, taxes, brokerage commissions, acquired fund fees and expenses, other expenditures which are capitalized in accordance with generally accepted accounting principles, and extraordinary expenses) from exceeding 1.25% of the Fund’s average daily net assets |
1 YEAR | 3 YEARS | 5 YEARS | 10 YEARS | |
AdvisorShares Dorsey Wright Short ETF | $ | $ | $ | $ |
Return | Quarter/Year | |
- |
ADVISORSHARES DORSEY WRIGHT SHORT ETF | 1 Year | Since Inception ( |
- | - | |
- | - | |
- | - | |
Name | Title |
AdvisorShares Investments, LLC | Advisor |
Dorsey, Wright & Associates, LLC | Sub-Advisor |
Name and Title | Length of Service with Sub-Advisor |
John G. Lewis, Senior Vice President & Senior Portfolio Manager | since June 2002 |
● |
a Fund makes distributions; |
● |
you sell Fund shares; and |
● |
you purchase or redeem Creation Units (authorized participants only). |
● |
Each Fund intends to distribute, at least annually, substantially all of its net investment income and net capital gains income. |
● |
Each Fund’s income distributions will generally be taxed to you as ordinary income or qualified dividend income. For non-corporate shareholders, dividends reported by the Fund as qualified dividend income are generally eligible for reduced tax rates applicable to long-term capital gains, provided holding period and other requirements are met. Qualified dividend income generally is income derived from dividends paid by U.S. corporations or certain foreign corporations that are either incorporated in a U.S. possession or eligible for tax benefits under certain U.S. income tax treaties. In addition, dividends that a Fund receives in respect of stock of certain foreign corporations may be qualified dividend income if that stock is readily tradable on an established U.S. securities market. For such dividends to be taxed as qualified dividend income to a non-corporate shareholder, a Fund must satisfy certain holding period requirements with respect to the underlying stock and the non-corporate shareholder must satisfy holding period requirements with respect to his or her ownership of the Fund’s shares. Holding periods may be suspended for these purposes for stock that is hedged. In general, dividends received by the Fund from another ETF taxable as a RIC may be distributed and reported as qualified dividend income by the Fund to the extent the dividend distributions are distributed and reported as qualified dividend income by the other ETF. A Fund’s investment strategies may limit its ability to distribute dividends eligible to be treated as qualified dividend income. |
● |
Corporate shareholders may be entitled to a dividends received deduction for the portion of dividends they receive that are attributable to dividends received by a Fund (directly or in some cases indirectly) from U.S. corporations, subject to certain limitations. A Fund’s investment strategies may limit its ability to distribute dividends eligible for the dividends received deduction for corporate shareholders. |
● |
Taxes on distributions of capital gains (if any) are determined by how long a Fund owned the investments that generated them, rather than how long a shareholder has owned their shares. Sales of assets held by a Fund for more than one year generally result in long-term capital gains and losses, and sales of assets held by a Fund for one year or less generally result in short-term capital gains and losses. Distributions from a Fund’s short-term capital gains are generally taxable as ordinary income. Any distributions of net capital gain (the excess of a Fund’s net long-term capital gains over its net short-term capital losses) that you receive from a Fund generally are taxable as long-term capital gains regardless of how long you have owned your shares. Long-term capital gains are taxed to non-corporate shareholders at reduced tax rates. |
● |
Dividends and distributions are generally taxable to you whether you receive them in cash or reinvest them in additional shares. |
● |
In general, your distributions are subject to federal income tax for the year in which they are paid. However, distributions paid in January but declared by a Fund in October, November or December of the previous year may be taxable to you in the previous year. |
● |
Shortly after the close of each calendar year, the Funds (or your broker) will inform you of the amount of your ordinary income dividends, qualified dividend income, foreign tax credits, and net capital gain distributions received from the Fund. |
● |
You may wish to avoid investing in a Fund shortly before a dividend or other distribution, because such a distribution will generally be taxable even though it may economically represent a return of a portion of your investment. |
AdvisorShares Dorsey Wright Micro-Cap ETF | Years Ended June 30, | For the period July 11, 2018* to June 30, 2019 | ||||||||||
2021 | 2020 | |||||||||||
Selected Data for a Share of Capital Stock Outstanding | ||||||||||||
Net Asset Value, Beginning of Year/Period | $ | 21.12 | $ | 23.04 | $ | 24.71 | ||||||
Investment Operations | ||||||||||||
Net Investment Loss (1) | (0.04 | ) | (0.01 | ) | (0.02 | ) | ||||||
Net Realized and Unrealized Gain (Loss) | 16.79 | (1.89 | ) | (1.65 | ) | |||||||
Net Increase (Decrease) in Net Assets Resulting from Investment Operations (2) | 16.75 | (1.90 | ) | (1.67 | ) | |||||||
Distributions from Net Investment Income | — | (0.02 | ) | — | ||||||||
Total Distributions | — | (0.02 | ) | — | ||||||||
Net Asset Value, End of Year/Period | $ | 37.87 | $ | 21.12 | $ | 23.04 | ||||||
Market Value, End of Year/Period | $ | 37.92 | $ | 20.80 | $ | 23.02 | ||||||
Total Return | ||||||||||||
Total Investment Return Based on Net Asset Value (3) | 79.33 | % | (8.26 | )% | (6.79 | )% | ||||||
Total Investment Return Based on Market (3) | 82.31 | % | (9.58 | )% | (6.86 | )% | ||||||
Ratios/Supplemental Data | ||||||||||||
Net Assets, End of Year/Period (000’s omitted) | $ | 8,899 | $ | 2,112 | $ | 2,304 | ||||||
Ratio to Average Net Assets of: | ||||||||||||
Expenses, net of expense waivers and reimbursements (4) | 1.25 | % | 1.17 | % | 0.99 | % | ||||||
Expenses, prior to expense waivers and reimbursements (4) | 3.17 | % | 4.98 | % | 4.79 | % | ||||||
Net Investment Loss (4) | (0.12 | )% | (0.05 | )% | (0.11 | )% | ||||||
Portfolio Turnover Rate (5) | 163 | % | 119 | % | 103 | % |
* | Commencement of operations. |
(1) | Based on average shares outstanding. |
(2) | The amount shown for a share distribution throughout the period may not correlate with the Statement 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. |
(3) | 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. |
(4) | Ratios of periods of less than one year have been annualized. Excludes expenses incurred by the underlying investments in other funds. |
(5) | Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as in-kind creations or redemptions of the Fund’s capital shares. |
AdvisorShares Dorsey Wright Short ETF | Years Ended June 30, | For the period July 11, 2018* to June 30, 2019 | ||||||||||
2021 | 2020 | |||||||||||
Selected Data for a Share of Capital Stock Outstanding | ||||||||||||
Net Asset Value, Beginning of Year/Period | $ | 19.33 | $ | 24.90 | $ | 25.00 | ||||||
Investment Operations | ||||||||||||
Net Investment Income (Loss) (1) | (0.46 | ) | (0.65 | ) | 0.13 | |||||||
Net Realized and Unrealized Loss | (10.28 | ) | (4.89 | ) | (0.19 | ) | ||||||
Net Decrease in Net Assets Resulting from Investment Operations (2) | (10.74 | ) | (5.54 | ) | (0.06 | ) | ||||||
Distributions from Net Investment Income | — | (0.03 | ) | (0.04 | ) | |||||||
Total Distributions | — | (0.03 | ) | (0.04 | ) | |||||||
Net Asset Value, End of Year/Period | $ | 8.59 | $ | 19.33 | $ | 24.90 | ||||||
Market Value, End of Year/Period | $ | 8.56 | $ | 19.36 | $ | 24.93 | ||||||
Total Return | ||||||||||||
Total Investment Return Based on Net Asset Value (3) | (55.58 | )% | (22.26 | )% | (0.27 | )% | ||||||
Total Investment Return Based on Market (3) | (55.79 | )% | (22.24 | )% | (0.18 | )% | ||||||
Ratios/Supplemental Data | ||||||||||||
Net Assets, End of Year/Period (000’s omitted) | $ | 25,164 | $ | 113,098 | $ | 24,281 | ||||||
Ratio to Average Net Assets of: | ||||||||||||
Expenses, net of expense waivers and reimbursements (4) | 3.48 | % (5) | 3.56 | % (5) | 2.70 | % (5) | ||||||
Expenses, prior to expense waivers and reimbursements (4) | 3.55 | % (5) | 3.56 | % (5) | 3.26 | % (5) | ||||||
Net Investment Income (Loss) (4) | (3.18 | )% | (2.58 | )% | 0.53 | % | ||||||
Portfolio Turnover Rate (6) | 243 | % | 555 | % | 357 | % |
* | Commencement of operations. |
(1) | Based on average shares outstanding. |
(2) | The amount shown for a share distribution throughout the period may not correlate with the Statement 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. |
(3) | 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. |
(4) | Ratios of periods of less than one year have been annualized. Excludes expenses incurred by the underlying investments in other funds. |
(5) | The expense ratio includes interest and dividend expenses on short sales of 2.46%, 2.47% and 1.71% for the period ended June 30, 2021, June 30, 2020 and June 30, 2019, respectively. |
(6) | 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. |
Advisor | AdvisorShares Investments, LLC 4800 Montgomery Lane, Suite 150 Bethesda, Maryland 20814 |
Sub-Advisor | Dorsey, Wright & Associates, LLC 3300 W. Leigh Street Richmond, Virginia 23230 |
Distributor | Foreside Fund Services, LLC Three Canal Plaza, Suite 100 Portland, Maine 04101 |
Legal Counsel | Morgan, Lewis & Bockius LLP 1111 Pennsylvania Avenue, NW Washington, DC 20004 |
Administrator, Custodian & Transfer Agent | The Bank of New York Mellon 240 Greenwich Street New York, New York 10286 |
NYSE Arca Ticker: |
Sub-advised by: DoubleLine Equity LP |
ADVISORSHARES TRUST 4800 Montgomery Lane ● Suite 150 Bethesda, Maryland 20814 www.advisorshares.com 877.843.3831 Prospectus dated November 1, 2021 |
This Prospectus provides important information about the AdvisorShares DoubleLine Value Equity ETF, a series of AdvisorShares Trust. Before you invest, please read this Prospectus and the Fund’s Statement of Additional Information carefully and keep them for future reference. The shares of the Fund have not been approved or disapproved by the U.S. Securities and Exchange Commission nor has the U.S. Securities and Exchange Commission passed upon the accuracy or adequacy of this Prospectus. Any representation to the contrary is a criminal offense. DoubleLine ® is a registered trademark of DoubleLine Capital LP. |
SHAREHOLDER FEES (fees paid directly from your investment) | |
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment) | |
MANAGEMENT FEES | |
DISTRIBUTION (12b-1) FEES | |
OTHER EXPENSES | |
ACQUIRED FUND FEES AND EXPENSES (a) | |
TOTAL ANNUAL OPERATING EXPENSES | |
FEE WAIVER/EXPENSE REIMBURSEMENT (b) | - |
TOTAL ANNUAL OPERATING EXPENSES AFTER FEE WAIVER/EXPENSE REIMBURSEMENT |
(a) |
(b) | AdvisorShares Investments, LLC (the “Advisor”) has contractually agreed to waive its fees and/or reimburse expenses to keep net expenses (excluding amounts payable pursuant to any plan adopted in accordance with Rule 12b-1, interest expense, taxes, brokerage commissions, acquired fund fees and expenses, other expenditures which are capitalized in accordance with generally accepted accounting principles, and extraordinary expenses) from exceeding 0.90% of the Fund’s average daily net assets |
1 |
1 YEAR | 3 YEARS | 5 YEARS | 10 YEARS | |
AdvisorShares DoubleLine Value Equity ETF | $ | $ | $ | $ |
2 |
3 |
Return | Quarter/Year | |||
- |
ADVISORSHARES DOUBLELINE VALUE EQUITY ETF | 1 Year | 5 Year | Since Inception ( | |||
4 |
Name | Title |
AdvisorShares Investments, LLC | Advisor |
DoubleLine Equity LP | Sub-Advisor |
Name and Title | Length of Service with Sub-Advisor |
Emidio Checcone , Portfolio Manager | since November 2014 |
Brian Ear , Portfolio Manager | since April 2016 |
5 |
● | Idea generation : The Sub-Advisor relies upon qualitative and quantitative screens that consider business and management quality, valuation characteristics, operating and stock price performance data, balance sheet and earnings quality information and technical factors, along with other statistical metrics. Investment candidates also surface through research on other companies, and through the Sub-Advisor’s interactions with other investment professionals within its network. |
6 |
● | Initial review : The Sub-Advisor further winnows the list of potential investments through thoughtful analysis of companies using qualitative indicators of business quality, financial statements and other fundamental data, valuation statistics and risk metrics. A preliminary valuation assessment is made, and if there is a sufficient price discount reflected in the current market price, and a reasonable belief that current market misperceptions will resolve over time, the investment idea will be put through more thorough analysis. |
● | In-depth fundamental analysis : The most intensive and time-consuming part of the Sub-Advisor’s research process, in-depth fundamental analysis seeks to obtain a deeper understanding of the company and the industry in which it operates, and to evaluate whether its current valuation represents a sufficiently meaningful discount to its intrinsic value, thereby conferring a margin of safety on the investment. The Sub-Advisor’s in-depth fundamental analysis focuses on a company’s competitive positioning, growth potential, future profitability, capital intensity, free cash flow and financial leverage. In performing this analysis, an analyst endeavors to deconstruct the company into its smallest operating components (e.g ., business segments) to achieve a more detailed understanding of the key value drivers of the underlying businesses within the company’s operations. The analyst also assesses competitive dynamics, barriers and risks within the industry. Insights achieved from this analysis inform the analyst’s assessment of the direction and sustainability of the company’s return on capital, growth and reinvestment opportunities. Throughout the process, the analyst evaluates business and financial risks, taking into account uncertainties arising from the lack of certain information. The culmination of the in-depth fundamental analysis is a research report, which reflects the analyst’s learnings, makes the investment case for a particular stock, and summarizes the key assumptions informing the Sub-Advisor’s independent assessment of the intrinsic value of that particular stock. |
● | Valuation methodology : The Sub-Advisor primarily relies on internal projections of a company’s financials, typically, over a forward five-year period to assess valuation. Earnings, growth and capital structure are expected to normalize at the end of the projection period. The Sub-Advisor approaches valuation mainly using two different methods. In one method, the Sub-Advisor applies a company’s historical valuation multiple relative to the market and industry peers to its forecasted financials to establish fair value. Alternatively, the Sub-Advisor also employs an internally-developed three-stage valuation model that discounts projected cash flows using a market-derived discount rate. Under the discounted cash flow approach, for most companies, the model assumes a process of mean reversion for growth and payout ratios, determined by GDP growth and prevailing returns on capital. For companies whose competitive advantage is sustainable, assumed growth rates and returns on capital may not revert to historical averages. The final stage determines the remaining terminal value based upon a low level of residual growth. |
● | Team review : Upon completion of research, if the analyst views a company as a compelling investment, a research report and valuation model is shared with the entire team and the idea is presented at a meeting, during which the investment thesis is reviewed, critical assumptions are scrutinized, a consistent level of skepticism is applied and consensus support for an investment recommendation may be generated. A position within the portfolio is initiated only if the idea remains compelling after a thorough team review of the research. |
7 |
8 |
9 |
10 |
11 |
12 |
● |
the Fund makes distributions; |
● |
you sell Fund shares; and |
● |
you purchase or redeem Creation Units (authorized participants only). |
13 |
● |
The Fund intends to distribute, at least annually, substantially all of its net investment income and net capital gains income. |
● |
The income dividends you receive from the Fund will be taxed as either ordinary income or “qualified dividend income.” For non-corporate shareholders, dividends reported by the Fund as qualified dividend income are generally eligible for reduced tax rates applicable to long-term capital gains, provided holding period and other requirements are met. Qualified dividend income generally is income derived from dividends paid by U.S. corporations or certain foreign corporations that are either incorporated in a U.S. possession or eligible for tax benefits under certain U.S. income tax treaties. In addition, dividends that the Fund receives in respect of stock of certain foreign corporations may be qualified dividend income if that stock is readily tradable on an established U.S. securities market. For such dividends to be taxed as qualified dividend income to a non-corporate shareholder, the Fund must satisfy certain holding period requirements with respect to the underlying stock and the non-corporate shareholder must satisfy holding period requirements with respect to his or her ownership of the Fund’s shares. Holding periods may be suspended for these purposes for stock that is hedged. |
● |
Corporate shareholders may be entitled to a dividends received deduction for the portion of dividends they receive that are attributable to dividends received by the Fund from U.S. corporations, subject to certain limitations. The Fund’s investment strategies may limit its ability to distribute dividends eligible for the dividends received deduction for corporate shareholders. |
● |
Taxes on distributions of capital gains (if any) are determined by how long the Fund owned the investments that generated them, rather than how long a shareholder has owned their shares. Sales of assets held by the Fund for more than one year generally result in long-term capital gains and losses, and sales of assets held by the Fund for one year or less generally result in short-term capital gains and losses. Distributions from the Fund’s short-term capital gains are generally taxable as ordinary income. Any distributions of net capital gain (the excess of the Fund’s net long-term capital gains over its net short-term capital losses) that you receive from the Fund generally are taxable as long-term capital gains regardless of how long you have owned your shares. Long-term capital gains are taxed to non-corporate shareholders at reduced tax rates. |
● |
Dividends and distributions are generally taxable to you whether you receive them in cash or reinvest them in additional shares. |
● |
In general, your distributions are subject to federal income tax for the year in which they are paid. However, distributions paid in January but declared by the Fund in October, November or December of the previous year may be taxable to you in the previous year. |
● |
Shortly after the close of each calendar year, the Fund (or your broker) will inform you of the amount of your ordinary income dividends, qualified dividend income, and net capital gain distributions received from the Fund. |
● |
You may wish to avoid investing in the Fund shortly before a dividend or other distribution, because such a distribution will generally be taxable even though it may economically represent a return of a portion of your investment. |
14 |
15 |
16 |
AdvisorShares DoubleLine Value Equity ETF |
Years Ended June 30, |
|||||||||||||||||||
2021 |
2020 |
2019 |
2018 |
2017 |
||||||||||||||||
Selected Data for a Share of Capital Stock Outstanding |
||||||||||||||||||||
Net Asset Value, Beginning of Year/Period |
$ |
66.37 |
$ |
68.21 |
$ |
67.88 |
$ |
66.23 |
$ |
55.56 |
||||||||||
Investment Operations |
||||||||||||||||||||
Net Investment Income (1) |
0.95 |
0.82 |
0.62 |
0.53 |
0.47 |
|||||||||||||||
Net Realized and Unrealized Gain (Loss) |
29.23 |
(1.84 |
) |
0.45 |
1.59 |
10.93 |
||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Investment Operations (2) |
30.18 |
(1.02 |
) |
1.07 |
2.12 |
11.40 |
||||||||||||||
Distributions from Net Investment Income |
(1.02 |
) |
(0.82 |
) |
(0.74 |
) |
(0.47 |
) |
(0.73 |
) |
||||||||||
Total Distributions |
(1.02 |
) |
(0.82 |
) |
(0.74 |
) |
(0.47 |
) |
(0.73 |
) |
||||||||||
Net Asset Value, End of Year/Period |
$ |
95.53 |
$ |
66.37 |
$ |
68.21 |
$ |
67.88 |
$ |
66.23 |
||||||||||
Market Value, End of Year/Period |
$ |
95.41 |
$ |
66.28 |
$ |
68.13 |
$ |
67.88 |
$ |
66.17 |
||||||||||
Total Return |
||||||||||||||||||||
Total Investment Return Based on Net Asset Value (3) |
45.78 |
% |
(1.63 |
)% |
1.74 |
% |
3.15 |
% |
20.55 |
% |
||||||||||
Total Investment Return Based on Market (3) |
45.79 |
% |
(1.65 |
)% |
1.63 |
% |
3.26 |
% |
20.52 |
% |
||||||||||
Ratios/Supplemental Data |
||||||||||||||||||||
Net Assets, End of Year/Period (000’s omitted) |
$ |
48,243 |
$ |
41,483 |
$ |
61,386 |
$ |
95,034 |
$ |
142,400 |
||||||||||
Ratio to Average Net Assets of: |
||||||||||||||||||||
Expenses, net of expense waivers and reimbursements (4) |
0.90 |
% |
0.90 |
% |
0.90 |
% |
0.87 |
% |
0.90 |
% |
||||||||||
Expenses, prior to expense waivers and reimbursements (4) |
1.05 |
% |
1.07 |
% |
1.17 |
% |
1.07 |
% |
1.07 |
% |
||||||||||
Net Investment Income (4) |
1.18 |
% |
1.18 |
% |
0.93 |
% |
0.77 |
% |
0.76 |
% |
||||||||||
Portfolio Turnover Rate (5) |
40 |
% |
93 |
% |
218 |
% |
171 |
% |
180 |
% |
(1) |
Based on average shares outstanding. |
(2) |
The amount shown for a share distribution throughout the period may not correlate with the Statement 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. |
(3) |
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. |
(4) |
Ratios of periods of less than one year have been annualized. Excludes expenses incurred by the underlying investments in other funds. |
(5) |
Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as in-kind creations or redemptions of the Fund’s capital shares. |
17 |
Advisor |
AdvisorShares Investments, LLC 4800 Montgomery Lane, Suite 150 Bethesda, Maryland 20814 |
Sub-Advisor |
DoubleLine Equity LP 505 North Brand Boulevard, Suite 860 Glendale, California 91203 |
Distributor |
Foreside Fund Services, LLC Three Canal Plaza, Suite 100 Portland, Maine 04101 |
Legal Counsel |
Morgan, Lewis & Bockius LLP 1111 Pennsylvania Avenue, NW Washington, DC 20004 |
Administrator, Custodian & Transfer Agent |
The Bank of New York Mellon 240 Greenwich Street New York, New York 10286 |
18 |
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NYSE Arca Ticker: |
Managed by:
AdvisorShares Investments, LLC
|
ADVISORSHARES TRUST 4800 Montgomery Lane ● Suite 150
Bethesda, Maryland 20814
www.advisorshares.com
877.843.3831
Prospectus dated November 1, 2021 This Prospectus provides important information about the AdvisorShares Focused Equity ETF, a series of AdvisorShares Trust. Before you invest, please read this Prospectus and the Fund’s Statement of Additional Information carefully and keep them for future reference.
The shares of the Fund have not been approved or disapproved by the U.S. Securities and Exchange Commission nor has the U.S. Securities and Exchange Commission passed upon the accuracy or adequacy of this Prospectus. Any representation to the contrary is a criminal offense.
|
SHAREHOLDER FEES (fees paid directly from your investment) | |
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment) | |
MANAGEMENT FEES ( fluctuates based on the Fund’s performance relative to the S&P 500 Index ) | |
DISTRIBUTION (12b-1) FEES | |
OTHER EXPENSES | |
TOTAL ANNUAL OPERATING EXPENSES | |
FEE WAIVER/EXPENSE REIMBURSEMENT * | - |
TOTAL ANNUAL OPERATING EXPENSES AFTER FEE WAIVER/ EXPENSE REIMBURSEMENT |
* | AdvisorShares Investments, LLC (the “Advisor”) has contractually agreed to waive its fees and/or reimburse expenses to keep net expenses (excluding amounts payable pursuant to any plan adopted in accordance with Rule 12b-1, interest expense, taxes, brokerage commissions, acquired fund fees and expenses, other expenditures which are capitalized in accordance with generally accepted accounting principles, and extraordinary expenses) from exceeding a percentage of the Fund’s average daily net assets equal to the annual rate of the management fee, which can range from 0.65% to 0.85% due to a performance-based adjustment, |
1 YEAR | 3 YEARS | 5 YEARS | 10 YEARS | |
AdvisorShares Focused Equity ETF | $ | $ | $ | $ |
Return | Quarter/ Ye ar | ||
Highest Return | |||
Lowest Return | - |
ADVISORSHARES FOCUSED EQUITY ETF | 1 Year | Since Inception ( |
Return Before Taxes Based on NAV | ||
Return After Taxes on Distributions | ||
Return After Taxes on Distributions and Sale of Fund Shares | ||
S&P 500 Index (reflects no deduction for fees, expenses, or taxes) |
Name | Title |
AdvisorShares Investments, LLC | Advisor |
Name and Title | Length of Service with the Advisor |
Dan S. Ahrens, Managing Director, Chief Operating Officer and , Portfolio Manager | since November 2008 |
Base Fee | 0.75% |
Incremental Changes | 0.02% |
Performance to Benchmark | Advisory Fee |
2.00% | 0.85% |
1.50% | 0.83% |
1.25% | 0.81% |
1.00% | 0.79% |
0.50% | 0.77% |
+/- 0 | 0.75% |
-0.50% | 0.73% |
-1.00% | 0.71% |
-1.25% | 0.69% |
-1.50% | 0.67% |
-2.00% | 0.65% |
● | the Fund makes distributions; |
● | you sell Fund shares; and |
● | you purchase or redeem Creation Units (authorized participants only). |
● | The Fund intends to distribute, at least annually, substantially all of its net investment income and net capital gains income. |
● | The income dividends you receive from the Fund will be taxed as either ordinary income or “qualified dividend income.” For non-corporate shareholders, dividends reported by the Fund as qualified dividend income are generally eligible for reduced tax rates applicable to long-term capital gains, provided holding period and other requirements are met. Qualified dividend income generally is income derived from dividends paid by U.S. corporations or certain foreign corporations that are either incorporated in a U.S. possession or eligible for tax benefits under certain U.S. income tax treaties. In addition, dividends that the Fund receives in respect of stock of certain foreign corporations may be qualified dividend income if that stock is readily tradable on an established U.S. securities market. For such dividends to be taxed as qualified dividend income to a non-corporate shareholder, the Fund must satisfy certain holding period requirements with respect to the underlying stock and the non-corporate shareholder must satisfy holding period requirements with respect to his or her ownership of the Fund’s shares. Holding periods may be suspended for these purposes for stock that is hedged. |
● | Corporate shareholders may be entitled to a dividends-received deduction for the portion of dividends they receive that are attributable to dividends received by the Fund from U.S. corporations, subject to certain limitations. The Fund’s investment strategies may limit its ability to distribute dividends eligible for the dividends received deduction for corporate shareholders. |
● | Taxes on distributions of capital gains (if any) are determined by how long the Fund owned the investments that generated them, rather than how long a shareholder has owned their shares. Sales of assets held by the Fund for more than one year generally result in long-term capital gains and losses, and sales of assets held by the Fund for one year or less generally result in short-term capital gains and losses. Distributions from the Fund’s short-term capital gains are generally taxable as ordinary income. Any distributions of net capital gain (the excess of the Fund’s net long-term capital gains over its net short-term capital losses) that you receive from the Fund generally are taxable as long-term capital gains regardless of how long you have owned your shares. Long-term capital gains are taxed to non-corporate shareholders at reduced tax rates. |
● | Dividends and distributions are generally taxable to you whether you receive them in cash or reinvest them in additional shares. |
● | In general, your distributions are subject to federal income tax for the year in which they are paid. However, distributions paid in January but declared by the Fund in October, November or December of the previous year may be taxable to you in the previous year. |
● | Shortly after the close of each calendar year, the Fund (or your broker) will inform you of the amount of your ordinary income dividends, qualified dividend income, foreign tax credits and net capital gain distributions received from the Fund. |
● | You may wish to avoid investing in the Fund shortly before a dividend or other distribution, because such a distribution will generally be taxable even though it may economically represent a return of a portion of your investment. |
AdvisorShares Focused Equity ETF | Years Ended June 30, | For the period September 20, 2016* to June 30, 2017 | ||||||||||||||||||
2021 | 2020 | 2019 | 2018 | |||||||||||||||||
Selected Data for a Share of Capital Stock Outstanding | ||||||||||||||||||||
Net Asset Value, Beginning of Year/Period | $ | 35.67 | $ | 34.42 | $ | 31.80 | $ | 28.59 | $ | 25.00 | ||||||||||
Investment Operations | ||||||||||||||||||||
Net Investment Income (1) | 0.10 | 0.14 | 0.16 | 0.13 | 0.06 | |||||||||||||||
Net Realized and Unrealized Gain | 11.00 | 1.26 | 3.21 | 3.17 | 3.54 | |||||||||||||||
Net Increase in Net Assets Resulting from Investment Operations (2) | 11.10 | 1.40 | 3.37 | 3.30 | 3.60 | |||||||||||||||
Distributions from Net Investment Income | (0.12 | ) | (0.15 | ) | (0.16 | ) | (0.09 | ) | (0.01 | ) | ||||||||||
Distributions from Realized Capital Gains | — | — | (0.59 | ) | — | — | ||||||||||||||
Total Distributions | (0.12 | ) | (0.15 | ) | (0.75 | ) | (0.09 | ) | (0.01 | ) | ||||||||||
Net Asset Value, End of Year/Period | $ | 46.65 | $ | 35.67 | $ | 34.42 | $ | 31.80 | $ | 28.59 | ||||||||||
Market Value, End of Year/Period | $ | 46.68 | $ | 34.88 | $ | 34.31 | $ | 31.79 | $ | 28.59 | ||||||||||
Total Return | ||||||||||||||||||||
Total Investment Return Based on Net Asset Value (3) | 31.15 | % | 4.02 | % | 11.09 | % | 11.57 | % | 14.39 | % | ||||||||||
Total Investment Return Based on Market (3) | 34.20 | % | 2.06 | % | 10.74 | % | 11.51 | % | 14.40 | % | ||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||
Net Assets, End of Year/Period (000’s omitted) | $ | 28,921 | $ | 19,616 | $ | 17,211 | $ | 14,311 | $ | 12,150 | ||||||||||
Ratio to Average Net Assets of: | ||||||||||||||||||||
Expenses, net of expense waivers and reimbursements (4) | 0.66 | % | 0.77 | % | 0.72 | % | 0.68 | % | 0.75 | % | ||||||||||
Expenses, prior to expense waivers and reimbursements (4) | 1.19 | % | 1.43 | % | 1.63 | % | 1.39 | % | 2.04 | % | ||||||||||
Net Investment Income (4) | 0.24 | % | 0.41 | % | 0.49 | % | 0.42 | % | 0.28 | % | ||||||||||
Portfolio Turnover Rate (5) | 25 | % | 23 | % | 19 | % | 26 | % | 36 | % |
* | Commencement of operations. |
(1) | Based on average shares outstanding. |
(2) | The amount shown for a share distribution throughout the period may not correlate with the Statement 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. |
(3) | 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. |
(4) | Ratios of periods of less than one year have been annualized. Excludes expenses incurred by the underlying investments in other funds. |
(5) | Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as in-kind creations or redemptions of the Fund’s capital shares. |
Advisor | AdvisorShares Investments, LLC 4800 Montgomery Lane, Suite 150 Bethesda, Maryland 20814 |
Distributor | Foreside Fund Services, LLC Three Canal Plaza, Suite 100 Portland, Maine 04101 |
Legal Counsel | Morgan, Lewis & Bockius LLP 1111 Pennsylvania Avenue, NW Washington, DC 20004 |
Administrator, Custodian & Transfer Agent | The Bank of New York Mellon 240 Greenwich Street New York, New York 10286 |
NYSE Arca Ticker: |
Managed by: AdvisorShares Investments, LLC |
ADVISORSHARES TRUST 4800 Montgomery Lane ● Suite 150 Bethesda, Maryland 20814 www.advisorshares.com 877.843.3831 Prospectus dated November 1, 2021 This Prospectus provides important information about the AdvisorShares Hotel ETF, a series of AdvisorShares Trust. Before you invest, please read this Prospectus and the Fund’s Statement of Additional Information carefully and keep them for future reference. The shares of the Fund have not been approved or disapproved by the U.S. Securities and Exchange Commission nor has the U.S. Securities and Exchange Commission passed upon the accuracy or adequacy of this Prospectus. Any representation to the contrary is a criminal offense. |
SHAREHOLDER FEES (fees paid directly from your investment) | |
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment) | |
MANAGEMENT FEES | |
DISTRIBUTION (12b-1) FEES | |
OTHER EXPENSES | |
TOTAL ANNUAL OPERATING EXPENSES | |
FEE WAIVER/EXPENSE REIMBURSEMENT * | - |
TOTAL ANNUAL OPERATING EXPENSES AFTER FEE WAIVER/ EXPENSE REIMBURSEMENT |
* | AdvisorShares Investments, LLC (the “Advisor”) has contractually agreed to waive its fees and/or reimburse expenses to keep net expenses (excluding amounts payable pursuant to any plan adopted in accordance with Rule 12b-1, interest expense, taxes, brokerage commissions, acquired fund fees and expenses, other expenditures which are capitalized in accordance with generally accepted accounting principles, and extraordinary expenses) from exceeding 0.99% of the Fund’s average daily net assets |
1 YEAR | 3 YEARS | 5 YEARS | 10 YEARS | |
AdvisorShares Hotel ETF | $ | $ | $ | $ |
Name | Title |
AdvisorShares Investments, LLC | Advisor |
Name and Title | Length of Service with the Advisor |
Dan S. Ahrens, Managing Director, Chief Operating Officer & Portfolio Manager | since November 2008 |
● | the Fund makes distributions; |
● | you sell Fund shares; and |
● | you purchase or redeem Creation Units (authorized participants only). |
● | The Fund intends to distribute, at least annually, substantially all of its net investment income and net capital gains income. |
● | The income dividends you receive from the Fund will be taxed as either ordinary income or “qualified dividend income.” For non-corporate shareholders, dividends reported by the Fund as qualified dividend income are generally eligible for reduced tax rates applicable to long-term capital gains, provided holding period and other requirements are met. Qualified dividend income generally is income derived from dividends paid by U.S. corporations or certain foreign corporations that are either incorporated in a U.S. possession or eligible for tax benefits under certain U.S. income tax treaties. In addition, dividends that the Fund receives in respect of stock of certain foreign corporations may be qualified dividend income if that stock is readily tradable on an established U.S. securities market. For such dividends to be taxed as qualified dividend income to a non-corporate shareholder, the Fund must satisfy certain holding period requirements with respect to the underlying stock and the non-corporate shareholder must satisfy holding period requirements with respect to his or her ownership of the Fund’s shares. Holding periods may be suspended for these purposes for stock that is hedged. |
● | Corporate shareholders may be entitled to a dividends received deduction for the portion of dividends they receive that are attributable to dividends received by the Fund from U.S. corporations, subject to certain limitations. The Fund’s investment strategies may limit its ability to distribute dividends eligible for the dividends received deduction for corporate shareholders. |
● | Taxes on distributions of capital gains (if any) are determined by how long the Fund owned the investments that generated them, rather than how long a shareholder has owned their shares. Sales of assets held by the Fund for more than one year generally result in long-term capital gains and losses, and sales of assets held by the Fund for one year or less generally result in short-term capital gains and losses. Distributions from the Fund’s short-term capital gains are generally taxable as ordinary income. Any distributions of net capital gain (the excess of the Fund’s net long-term capital gains over its net short-term capital losses) that you receive from the Fund generally are taxable as long-term capital gains regardless of how long you have owned your shares. Long-term capital gains are taxed to non-corporate shareholders at reduced tax rates. |
● | Dividends and distributions are generally taxable to you whether you receive them in cash or reinvest them in additional shares. |
● | In general, your distributions are subject to federal income tax for the year in which they are paid. However, distributions paid in January but declared by the Fund in October, November or December of the previous year may be taxable to you in the previous year. |
● | Shortly after the close of each calendar year, the Fund (or your broker) will inform you of the amount of your ordinary income dividends, qualified dividend income, foreign tax credits and net capital gain distributions received from the Fund. |
● | You may wish to avoid investing in the Fund shortly before a dividend or other distribution, because such a distribution will generally be taxable even though it may economically represent a return of a portion of your investment. |
AdvisorShares Hotel ETF | For the period April 20, 2021* to June 30, 2021 | |||
Selected Data for a Share of Capital Stock Outstanding | ||||
Net Asset Value, Beginning of Year/Period | $ | 24.32 | ||
Investment Operations | ||||
Net Investment Income (1) | 0.13 | |||
Net Realized and Unrealized Gain | 0.07 | |||
Net Increase in Net Assets Resulting from Investment Operations (2) | 0.20 | |||
Net Asset Value, End of Year/Period | $ | 24.52 | ||
Market Value, End of Year/Period | $ | 24.56 | ||
Total Return | ||||
Total Investment Return Based on Net Asset Value (3) | 0.81 | % | ||
Total Investment Return Based on Market (3) | 0.99 | % | ||
Ratios/Supplemental Data | ||||
Net Assets, End of Year/Period (000’s omitted) | $ | 7,724 | ||
Ratio to Average Net Assets of: | ||||
Expenses, net of expense waivers and reimbursements (4) | 0.99 | % | ||
Expenses, prior to expense waivers and reimbursements (4) | 6.60 | % | ||
Net Investment Income (4) | 2.70 | % | ||
Portfolio Turnover Rate (5) | 21 | % |
* | Commencement of operations. |
(1) | Based on average shares outstanding. |
(2) | The amount shown for a share distribution throughout the period may not correlate with the Statement 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. |
(3) | 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. |
(4) | Ratios of periods of less than one year have been annualized. Excludes expenses incurred by the underlying investments in other funds. |
(5) | Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as in-kind creations or redemptions of the Fund’s capital shares. |
Advisor | AdvisorShares Investments, LLC 4800 Montgomery Lane, Suite 150 Bethesda, Maryland 20814 |
Distributor | Foreside Fund Services, LLC Three Canal Plaza, Suite 100 Portland, Maine 04101 |
Legal Counsel | Morgan, Lewis & Bockius LLP 1111 Pennsylvania Avenue, NW Washington, DC 20004 |
Administrator, Custodian & Transfer Agent | The Bank of New York Mellon 240 Greenwich Street New York, New York 10286 |
NYSE Arca Ticker: |
![]() |
Sub-advised by: Newfleet Asset Management |
ADVISORSHARES TRUST 4800 Montgomery Lane ● Suite 150 Bethesda, Maryland 20814 www.advisorshares.com 877.843.3831 Prospectus dated November 1, 2021 |
This Prospectus provides important information about the AdvisorShares Newfleet Multi-Sector Income ETF, a series of AdvisorShares Trust. Before you invest, please read this Prospectus and the Fund’s Statement of Additional Information carefully and keep them for future reference. The shares of the Fund have not been approved or disapproved by the U.S. Securities and Exchange Commission nor has the U.S. Securities and Exchange Commission passed upon the accuracy or adequacy of this Prospectus. Any representation to the contrary is a criminal offense. |
SHAREHOLDER FEES (fees paid directly from your investment) | |
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment) | |
MANAGEMENT FEES | |
DISTRIBUTION (12b-1) FEES | |
OTHER EXPENSES | |
ACQUIRED FUND FEES AND EXPENSES (a) | |
TOTAL ANNUAL OPERATING EXPENSES | |
FEE WAIVER/EXPENSE REIMBURSEMENT (b) | - |
TOTAL ANNUAL OPERATING EXPENSES AFTER FEE WAIVER/EXPENSE REIMBURSEMENT |
(a) | Total Annual Operating Expenses and Total Annual Operating Expenses After Fee Waiver/Expense Reimbursement in this fee table may not correlate to the expense ratios in the Fund’s financial highlights (and the Fund’s financial statements) because the financial highlights include only the Fund’s direct operating expenses and do not include Acquired Fund Fees and Expenses, which represent the Fund’s pro rata share of the fees and expenses of money market funds in which it invested as a temporary defensive measure. |
(b) | AdvisorShares Investments, LLC (the “Advisor”) has contractually agreed to waive its fees and/or reimburse expenses to keep net expenses (excluding amounts payable pursuant to any plan adopted in accordance with Rule 12b-1, interest expense, taxes, brokerage commissions, acquired fund fees and expenses, other expenditures which are capitalized in accordance with generally accepted accounting principles, and extraordinary expenses) from exceeding 0.75% of the Fund’s average daily net assets |
1 |
1 YEAR | 3 YEARS | 5 YEARS | 10 YEARS | |
AdvisorShares Newfleet Multi-Sector Income ETF | $ | $ | $ | $ |
● | Securities issued or guaranteed as to principal and interest by the U.S. Government, its agencies, authorities or instrumentalities, including collateralized mortgage obligations (“CMOs”), real estate mortgage investment conduits (“REMICs”) and other pass-through securities; |
● | Debt securities issued by foreign issuers, including foreign governments and their political subdivisions and issuers in emerging markets; |
● | Investment-grade securities issued primarily by U.S. issuers and secondarily by non-U.S. issuers; and |
● | High-yield debt instruments, including bank loans, which are generally floating-rate loans. |
2 |
3 |
4 |
Return | Quarter/ Ye ar | ||
Highest Return | |||
Lowest Return | - |
ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF | 1 Year | 5 Years | Since Inception ( | ||
Name | Title |
AdvisorShares Investments, LLC | Advisor |
Newfleet Asset Management, LLC | Sub-Advisor |
5 |
Name and Title | Length of Service with Sub-Advisor |
David L. Albrycht, CFA, President and Chief Investment Officer | since June 2011 |
Benjamin Caron, CFA, Senior Managing Director and Portfolio Manager | since June 2011 |
6 |
7 |
8 |
9 |
10 |
11 |
12 |
13 |
14 |
● |
the Fund makes distributions; |
● |
you sell Fund shares; and |
● |
you purchase or redeem Creation Units (authorized participants only). |
● |
The Fund intends to distribute, at least annually, substantially all of its net investment income and net capital gains income. |
● |
The Fund’s distributions from income and net short-term capital gains will generally be taxed to you as ordinary income. For non-corporate shareholders, dividends reported by the Fund as qualified dividend income are generally eligible for reduced tax rates applicable to long-term capital gains, provided holding period and other requirements are met. Qualified dividend income generally is income derived from dividends paid by U.S. corporations or certain foreign corporations that are either incorporated in a U.S. possession or eligible for tax benefits under certain U.S. income tax treaties. In addition, dividends that the Fund receives in respect of stock of certain foreign corporations may be qualified dividend income if that stock is readily tradable on an established U.S. securities market. For such dividends to be taxed as qualified dividend income to a non-corporate shareholder, the Fund must satisfy certain holding period requirements with respect to the underlying stock and the non-corporate shareholder must satisfy holding period requirements with respect to his or her ownership of the Fund’s shares. Holding periods may be suspended for these purposes for stock that is hedged. The Fund’s investment strategies will significantly limit its ability to distribute dividends eligible for treatment as qualified dividend income. |
15 |
● |
Corporate shareholders may be entitled to a dividends received deduction for the portion of dividends they receive that are attributable to dividends received by the Fund (directly or in some cases indirectly) from U.S. corporations, subject to certain limitations. The Fund’s investment strategies will significantly limit its ability to distribute dividends eligible for the dividends received deduction for corporate shareholders. |
● |
Taxes on distributions of capital gains (if any) are determined by how long the Fund owned the investments that generated them, rather than how long a shareholder has owned their shares. Sales of assets held by the Fund for more than one year generally result in long-term capital gains and losses, and sales of assets held by the Fund for one year or less generally result in short-term capital gains and losses. Distributions from the Fund’s short-term capital gains are generally taxable as ordinary income. Any distributions of net capital gain (the excess of the Fund’s net long-term capital gains over its net short-term capital losses) that you receive from the Fund generally are taxable as long-term capital gains regardless of how long you have owned your shares. Long-term capital gains are taxed to non-corporate shareholders at reduced tax rates. |
● |
Although the Fund may invest in municipal bonds (the interest upon which would be exempt from U.S. federal income tax if received by shareholders directly), Fund distributions attributable to that interest are not expected to be exempt from U.S. federal income tax. |
|
● |
Dividends and distributions are generally taxable to you whether you receive them in cash or reinvest them in additional shares. |
● |
In general, your distributions are subject to federal income tax for the year in which they are paid. However, distributions paid in January but declared by the Fund in October, November or December of the previous year may be taxable to you in the previous year. |
|
● |
Under recently issued final Treasury Regulations, a RIC that receives business interest income may pass through its net business interest income for purposes of the tax rules applicable to the interest expense limitations under Section 163(j) of the Internal Revenue Code. A RIC’s total “Section 163(j) Interest Dividend” for a tax year is limited to the excess of the RIC’s business interest income over the sum of its business interest expense and its other deductions properly allocable to its business interest income. A RIC may, in its discretion, designate all or a portion of ordinary dividends as Section 163(j) Interest Dividends, which would allow the recipient shareholder to treat the designated portion of such dividends as interest income for purposes of determining such shareholder’s interest expense deduction limitation under Section 163(j). This can potentially increase the amount of a shareholder’s interest expense deductible under Section 163(j). In general, to be eligible to treat a Section 163(j) Interest Dividend as interest income, you must have held your shares in the Fund for more than 180 days during the 361-day period beginning on the date that is 180 days before the date on which the share becomes ex-dividend with respect to such dividend. Section 163(j) Interest Dividends, if so designated by the Fund, will be reported to your financial intermediary or otherwise in accordance with the requirements specified by the Internal Revenue Service. |
● |
Shortly after the close of each calendar year, the Fund (or your broker) will inform you of the amount of your ordinary income dividends and net capital gain distributions received from the Fund. |
|
● | You may wish to avoid investing in the Fund shortly before a dividend or other distribution, because such a distribution will generally be taxable even though it may economically represent a return of a portion of your investment. |
16 |
17 |
18 |
AdvisorShares Newfleet Multi-Sector Income ETF | Years Ended June 30, | |||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Selected Data for a Share of Capital Stock Outstanding | ||||||||||||||||||||
Net Asset Value, Beginning of Year/Period | $ | 48.14 | $ | 48.44 | $ | 47.86 | $ | 48.68 | $ | 48.83 | ||||||||||
Investment Operations | ||||||||||||||||||||
Net Investment Income (1) | 0.78 | 1.21 | 1.35 | 1.05 | 0.74 | |||||||||||||||
Net Realized and Unrealized Gain (Loss) | 0.83 | (0.22 | ) | 0.65 | (0.62 | ) | 0.38 | |||||||||||||
Distributions of Net Realized Gains by other investment companies | — | — | — | — | 0.00 | (6) | ||||||||||||||
Net Increase in Net Assets Resulting from Investment Operations (2) | 1.61 | 0.99 | 2.00 | 0.43 | 1.12 | |||||||||||||||
Distributions from Net Investment Income | (0.90 | ) | (1.29 | ) | (1.42 | ) | (1.25 | ) | (1.27 | ) | ||||||||||
Total Distributions | (0.90 | ) | (1.29 | ) | (1.42 | ) | (1.25 | ) | (1.27 | ) | ||||||||||
Net Asset Value, End of Year/Period | $ | 48.85 | $ | 48.14 | $ | 48.44 | $ | 47.86 | $ | 48.68 | ||||||||||
Market Value, End of Year/Period | $ | 48.83 | $ | 48.17 | $ | 48.38 | $ | 47.79 | $ | 48.70 | ||||||||||
Total Return | ||||||||||||||||||||
Total Investment Return Based on Net Asset Value (3) | 3.36 | % | 2.10 | % | 4.27 | % | 0.87 | % | 2.30 | % | ||||||||||
Total Investment Return Based on Market (3) | 3.27 | % | 2.28 | % | 4.29 | % | 0.70 | % | 2.37 | % | ||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||
Net Assets, End of Year/Period (000’s omitted) | $ | 96,959 | $ | 57,767 | $ | 75,080 | $ | 155,529 | $ | 258,005 | ||||||||||
Ratio to Average Net Assets of: | ||||||||||||||||||||
Expenses, net of expense waivers and reimbursements (4) | 0.75 | % | 0.75 | % | 0.75 | % | 0.75 | % | 0.75 | % | ||||||||||
Expenses, prior to expense waivers and reimbursements (4) | 0.78 | % | 0.82 | % | 0.96 | % | 0.84 | % | 0.80 | % | ||||||||||
Net Investment Income (4) | 1.61 | % | 2.51 | % | 2.81 | % | 2.17 | % | 1.53 | % | ||||||||||
Portfolio Turnover Rate (5) | 95 | % | 63 | % | 40 | % | 66 | % | 63 | % |
(1) | Based on average shares outstanding. |
(2) | The amount shown for a share distribution throughout the period may not correlate with the Statement 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. |
(3) | 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. |
(4) | Ratios of periods of less than one year have been annualized. Excludes expenses incurred by the underlying investments in other funds. |
(5) | Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as in-kind creations or redemptions of the Fund’s capital shares. |
(6) | Amount represents less than $0.005 or 0.005%. |
19 |
Advisor | AdvisorShares Investments, LLC 4800 Montgomery Lane, Suite 150 Bethesda, Maryland 20814 |
Sub-Advisor | Newfleet Asset Management, LLC One Financial Plaza Hartford, Connecticut 06103 |
Distributor | Foreside Fund Services, LLC Three Canal Plaza, Suite 100 Portland, Maine 04101 |
Legal Counsel | Morgan, Lewis & Bockius LLP 1111 Pennsylvania Avenue, NW Washington, DC 20004 |
Administrator, Custodian & Transfer Agent | The Bank of New York Mellon 240 Greenwich Street New York, New York 10286 |
20 |
NYSE Arca Ticker: |
![]() |
Sub-advised by: CSM Advisors, LLC |
ADVISORSHARES TRUST 4800 Montgomery Lane ● Suite 150 Bethesda, Maryland 20814 www.advisorshares.com 877.843.3831 Prospectus dated November 1, 2021 This Prospectus provides important information about the AdvisorShares North Square McKee Core Reserves ETF, a series of AdvisorShares Trust. Before you invest, please read this Prospectus and the Fund’s Statement of Additional Information carefully and keep them for future reference. The shares of the Fund have not been approved or disapproved by the U.S. Securities and Exchange Commission nor has the U.S. Securities and Exchange Commission passed upon the accuracy or adequacy of this Prospectus. Any representation to the contrary is a criminal offense. |
SHAREHOLDER FEES (fees paid directly from your investment) | |
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment) | |
MANAGEMENT FEES | |
DISTRIBUTION (12b-1) FEES | |
OTHER EXPENSES | |
TOTAL ANNUAL OPERATING EXPENSES | |
FEE WAIVER/EXPENSE REIMBURSEMENT* | - |
TOTAL ANNUAL OPERATING EXPENSES AFTER FEE WAIVER/EXPENSE REIMBURSEMENT |
* | AdvisorShares Investments, LLC (the “Advisor”) has contractually agreed to waive its fees and/or reimburse expenses to keep net expenses (excluding amounts payable pursuant to any plan adopted in accordance with Rule 12b-1, interest expense, taxes, brokerage commissions, acquired fund fees and expenses, other expenditures which are capitalized in accordance with generally accepted accounting principles, and extraordinary expenses) from exceeding 0.35% of the Fund’s average daily net assets |
1 |
1 YEAR | 3 YEARS | 5 YEARS | 10 YEARS | |
AdvisorShares North Square McKee Core Reserves ETF | $ | $ | $ | $ |
2 |
3 |
Return | Quarter/Year | ||
- |
AdvisorShares North Square McKee Core Reserves ETF | 1 Year | 5 Years | Since Inception ( | ||
- | |||||
Return After Taxes on Distributions and Sale of Fund Shares | |||||
Bloomberg 1–3 Month U.S. Treasury Bill Index (reflects no deduction for fees, expenses, or taxes) |
4 |
Name | Title |
AdvisorShares Investments, LLC | Advisor |
CSM Advisors, LLC | Sub-Advisor |
Name and Title | Length of Service with Sub-Advisor |
Brian Allen, Senior Vice President | since March 2020 |
Bryan Johanson, Senior Vice President | since March 2020 |
Jack White, Senior Vice President | since March 2020 |
Andrew Faderewski, Vice President | since March 2020 |
5 |
6 |
7 |
8 |
9 |
10 |
11 |
12 |
● |
the Fund makes distributions; |
● |
you sell Fund shares; and |
● |
you purchase or redeem Creation Units (authorized participants only). |
13 |
● |
The Fund intends to distribute, at least annually, substantially all of its net investment income and net capital gains income. |
● |
The Fund’s distributions from income and net short-term capital gains will generally be taxed to you as ordinary income. For non-corporate shareholders, dividends reported by the Fund as qualified dividend income are generally eligible for reduced tax rates applicable to long-term capital gains, provided holding period and other requirements are met. Qualified dividend income generally is income derived from dividends paid by U.S. corporations or certain foreign corporations that are either incorporated in a U.S. possession or eligible for tax benefits under certain U.S. income tax treaties. In addition, dividends that the Fund receives in respect of stock of certain foreign corporations may be qualified dividend income if that stock is readily tradable on an established U.S. securities market. For such dividends to be taxed as qualified dividend income to a non-corporate shareholder, the Fund must satisfy certain holding period requirements with respect to the underlying stock and the non-corporate shareholder must satisfy holding period requirements with respect to his or her ownership of the Fund’s shares. Holding periods may be suspended for these purposes for stock that is hedged. In general, dividends received by the Fund from an ETP taxable as a RIC may be distributed and reported as qualified dividend income by the Fund to the extent the dividend distributions are distributed and reported as qualified dividend income by the ETP. The Fund’s investment strategies will significantly limit its ability to distribute dividends eligible for treatment as qualified dividend income . |
● |
Corporate shareholders may be entitled to a dividends received deduction for the portion of dividends they receive that are attributable to dividends received by the Fund (directly or in some cases indirectly) from U.S. corporations, subject to certain limitations. The Fund’s investment strategies will significantly limit its ability to distribute dividends eligible for the dividends received deduction for corporate shareholders. |
● |
Taxes on distributions of capital gains (if any) are determined by how long the Fund owned the investments that generated them, rather than how long a shareholder has owned their shares. Sales of assets held by the Fund for more than one year generally result in long-term capital gains and losses, and sales of assets held by the Fund for one year or less generally result in short-term capital gains and losses. Distributions from the Fund’s short-term capital gains are generally taxable as ordinary income. Any distributions of net capital gain (the excess of the Fund’s net long-term capital gains over its net short-term capital losses) that you receive from the Fund generally are taxable as long-term capital gains regardless of how long you have owned your shares. Long-term capital gains are taxed to non-corporate shareholders at reduced tax rates. |
● |
Although the Fund may invest in municipal bonds (the interest upon which would be exempt from U.S. federal income tax if received by shareholders directly), Fund distributions attributable to that interest are not expected to be exempt from U.S. federal income tax. |
● |
Dividends and distributions are generally taxable to you whether you receive them in cash or reinvest them in additional shares. |
● |
In general, your distributions are subject to federal income tax for the year in which they are paid. However, distributions paid in January but declared by the Fund in October, November or December of the previous year may be taxable to you in the previous year. |
● |
Under recently issued final Treasury Regulations, a RIC that receives business interest income may pass through its net business interest income for purposes of the tax rules applicable to the interest expense limitations under Section 163(j) of the Internal Revenue Code. A RIC’s total “Section 163(j) Interest Dividend” for a tax year is limited to the excess of the RIC’s business interest income over the sum of its business interest expense and its other deductions properly allocable to its business interest income. A RIC may, in its discretion, designate all or a portion of ordinary dividends as Section 163(j) Interest Dividends, which would allow the recipient shareholder to treat the designated portion of such dividends as interest income for purposes of determining such shareholder’s interest expense deduction limitation under Section 163(j). This can potentially increase the amount of a shareholder’s interest expense deductible under Section 163(j). In general, to be eligible to treat a Section 163(j) Interest Dividend as interest income, you must have held your shares in the Fund for more than 180 days during the 361-day period beginning on the date that is 180 days before the date on which the share becomes ex-dividend with respect to such dividend. Section 163(j) Interest Dividends, if so designated by the Fund, will be reported to your financial intermediary or otherwise in accordance with the requirements specified by the Internal Revenue Service. |
14 |
● |
Shortly after the close of each calendar year, the Fund (or your broker) will inform you of the amount of your ordinary income dividends, foreign tax credits, if any, and net capital gain distributions received from the Fund. |
● |
You may wish to avoid investing in the Fund shortly before a dividend or other distribution, because such a distribution will generally be taxable even though it may economically represent a return of a portion of your investment. |
15 |
AdvisorShares North Square McKee Core Reserves ETF (formerly AdvisorShares Sage Core Reserves ETF) |
Years Ended June 30, |
|||||||||||||||||||
2021 |
2020 |
2019 |
2018 |
2017 |
||||||||||||||||
Selected Data for a Share of Capital Stock Outstanding |
||||||||||||||||||||
Net Asset Value, Beginning of Year/Period |
$ |
98.46 |
$ |
99.64 |
$ |
99.21 |
$ |
99.43 |
$ |
99.43 |
||||||||||
Investment Operations |
||||||||||||||||||||
Net Investment Income (1) |
0.83 |
2.03 |
2.37 |
1.53 |
0.97 |
|||||||||||||||
Net Realized and Unrealized Gain (Loss) |
0.23 |
(1.19 |
) |
0.33 |
(0.16 |
) |
0.11 |
|||||||||||||
Net Increase in Net Assets Resulting from Investment Operations (2) |
1.06 |
0.84 |
2.70 |
1.37 |
1.08 |
|||||||||||||||
Distributions from Net Investment Income |
(0.84 |
) |
(2.02 |
) |
(2.27 |
) |
(1.59 |
) |
(1.08 |
) |
||||||||||
Total Distributions |
(0.84 |
) |
(2.02 |
) |
(2.27 |
) |
(1.59 |
) |
(1.08 |
) |
||||||||||
Net Asset Value, End of Year/Period |
$ |
98.68 |
$ |
98.46 |
$ |
99.64 |
$ |
99.21 |
$ |
99.43 |
||||||||||
Market Value, End of Year/Period |
$ |
98.68 |
$ |
98.35 |
$ |
99.61 |
$ |
99.19 |
$ |
99.44 |
||||||||||
Total Return |
||||||||||||||||||||
Total Investment Return Based on Net Asset Value (3) |
1.09 |
% |
0.83 |
% |
2.74 |
% |
1.38 |
% |
1.08 |
% |
||||||||||
Total Investment Return Based on Market (3) |
1.21 |
% |
0.75 |
% |
2.74 |
% |
1.34 |
% |
0.88 |
% |
||||||||||
Ratios/Supplemental Data |
||||||||||||||||||||
Net Assets, End of Year/Period (000’s omitted) |
$ |
42,432 |
$ |
100,921 |
$ |
72,240 |
$ |
52,087 |
$ |
84,519 |
||||||||||
Ratio to Average Net Assets of: |
||||||||||||||||||||
Expenses, net of expense waivers and reimbursements (4) |
0.35 |
% |
0.35 |
% |
0.35 |
% |
0.35 |
% |
0.35 |
% |
||||||||||
Expenses, prior to expense waivers and reimbursements (4) |
0.57 |
% |
0.53 |
% |
0.65 |
% |
0.65 |
% |
0.50 |
% |
||||||||||
Net Investment Income (4) |
0.84 |
% |
2.05 |
% |
2.39 |
% |
1.53 |
% |
0.97 |
% |
||||||||||
Portfolio Turnover Rate (5) |
103 |
% |
101 |
% |
91 |
% |
74 |
% |
81 |
% |
(1) |
Based on average shares outstanding. |
(2) |
The amount shown for a share distribution throughout the period may not correlate with the Statement 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. |
(3) |
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. |
(4) |
Ratios of periods of less than one year have been annualized. Excludes expenses incurred by the underlying investments in other funds. |
(5) |
Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as in-kind creations or redemptions of the Fund’s capital shares. |
17 |
Advisor |
AdvisorShares Investments, LLC 4800 Montgomery Lane, Suite 150 Bethesda, Maryland 20814 |
Sub-Advisor |
CSM Advisors, LLC 420 Fort Duquesne Boulevard Pittsburgh, Pennsylvania 15222 |
Distributor |
Foreside Fund Services, LLC Three Canal Plaza, Suite 100 Portland, Maine 04101 |
Legal Counsel |
Morgan, Lewis & Bockius LLP 1111 Pennsylvania Avenue, NW Washington, DC 20004 |
Administrator, Custodian & Transfer Agent |
The Bank of New York Mellon 240 Greenwich Street New York, New York 10286 |
18 |
Sub-advised by: CSM Advisors, LLC |
ADVISORSHARES TRUST 4800 Montgomery Lane ● Suite 150 Bethesda, Maryland 20814 www.advisorshares.com 877.843.3831 Prospectus dated November 1, 2021 |
SHAREHOLDER FEES (fees paid directly from your investment) | |
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment) | |
MANAGEMENT FEES (a) | |
DISTRIBUTION (12b-1) FEES | |
OTHER EXPENSES | |
TOTAL ANNUAL OPERATING EXPENSES | |
FEE WAIVER/EXPENSE REIMBURSEMENT (b) | - |
TOTAL ANNUAL OPERATING EXPENSES AFTER FEE WAIVER/EXPENSE REIMBURSEMENT |
(a) | Restated to reflect current fees. |
(b) | AdvisorShares Investments, LLC (the “Advisor”) has contractually agreed to waive its fees and/or reimburse expenses to keep net expenses (excluding amounts payable pursuant to any plan adopted in accordance with Rule 12b-1, interest expense, taxes, brokerage commissions, acquired fund fees and expenses, other expenditures which are capitalized in accordance with generally accepted accounting principles, and extraordinary expenses) from exceeding 0.47% of the Fund’s average daily net assets |
1 |
1 YEAR | 3 YEARS | 5 YEARS | 10 YEARS | |
AdvisorShares North Square McKee ESG Core Bond ETF | $ | $ | $ | $ |
2 |
3 |
4 |
Return | Quarter/Year | |
- |
ADVISORSHARES NORTH SQUARE MCKEE ESG CORE BOND ETF | 1 Year | 5 Year | Since Inception ( | ||
Return Before Taxes Based on NAV | - | ||||
Return After Taxes on Distributions | |||||
Return After Taxes on Distributions and Sale of Fund Shares | |||||
Bloomberg U.S. Aggregate Bond Index (reflects no deduction for fees, expenses or taxes) |
Name | Title |
AdvisorShares Investments, LLC | Advisor |
CSM Advisors, LLC | Sub-Advisor |
5 |
Name and Title | Length of Service with the Sub-Advisor |
Brian Allen , Senior Vice President | since March 2020 |
Bryan Johanson , Senior Vice President | since March 2020 |
Jack White , Senior Vice President | since March 2020 |
Andrew Faderewski , Vice President | since March 2020 |
6 |
7 |
8 |
9 |
10 |
11 |
12 |
13 |
14 |
● | the Fund makes distributions; |
● | you sell Fund shares; and |
● | you purchase or redeem Creation Units (authorized participants only). |
● | The Fund intends to distribute, at least annually, substantially all of its net investment income and net capital gains income. |
● | The Fund’s distributions from income and net short-term capital gains will generally be taxed to you as ordinary income. For non-corporate shareholders, dividends reported by the Fund as qualified dividend income are generally eligible for reduced tax rates applicable to long-term capital gains, provided holding period and other requirements are met. Qualified dividend income generally is income derived from dividends paid by U.S. corporations or certain foreign corporations that are either incorporated in a U.S. possession or eligible for tax benefits under certain U.S. income tax treaties. In addition, dividends that the Fund receives in respect of stock of certain foreign corporations may be qualified dividend income if that stock is readily tradable on an established U.S. securities market. For such dividends to be taxed as qualified dividend income to a non-corporate shareholder, the Fund must satisfy certain holding period requirements with respect to the underlying stock and the non-corporate shareholder must satisfy holding period requirements with respect to his or her ownership of the Fund’s shares. Holding periods may be suspended for these purposes for stock that is hedged. In general, dividends received by the Fund from an ETP taxable as a RIC may be distributed and reported as qualified dividend income by the Fund to the extent the dividend distributions distributed and reported as qualified dividend income by the ETP. The Fund’s investment strategies will significantly limit its ability to report distributions as qualified dividend income. |
15 |
● | Corporate shareholders may be entitled to a dividends received deduction for the portion of dividends they receive that are attributable to dividends received by the Fund (directly or in some cases indirectly) from U.S. corporations, subject to certain limitations. Certain of the Fund’s investment strategies will significantly limit its ability to report distributions as eligible for the dividends received deduction. |
● | Taxes on distributions of capital gains (if any) are determined by how long the Fund owned the investments that generated them, rather than how long a shareholder has owned their shares. Sales of assets held by the Fund for more than one year generally result in long-term capital gains and losses, and sales of assets held by the Fund for one year or less generally result in short-term capital gains and losses. Distributions from the Fund’s short-term capital gains are generally taxable as ordinary income. Any distributions of net capital gain (the excess of the Fund’s net long-term capital gains over its net short-term capital losses) that you receive from the Fund generally are taxable as long-term capital gains regardless of how long you have owned your shares. Long-term capital gains are taxed to non-corporate shareholders at reduced tax rates. |
● | Although the Fund may invest in municipal bonds (the interest upon which would be exempt from U.S. federal income tax if received by shareholders directly), Fund distributions attributable to that interest are not expected to be exempt from U.S. federal income tax. |
● | Dividends and distributions are generally taxable to you whether you receive them in cash or reinvest them in additional shares. |
● | In general, your distributions are subject to federal income tax for the year in which they are paid. However, distributions paid in January but declared by the Fund in October, November or December of the previous year may be taxable to you in the previous year. |
● | Under recently issued final Treasury Regulations, a RIC that receives business interest income may pass through its net business interest income for purposes of the tax rules applicable to the interest expense limitations under Section 163(j) of the Internal Revenue Code. A RIC’s total “Section 163(j) Interest Dividend” for a tax year is limited to the excess of the RIC’s business interest income over the sum of its business interest expense and its other deductions properly allocable to its business interest income. A RIC may, in its discretion, designate all or a portion of ordinary dividends as Section 163(j) Interest Dividends, which would allow the recipient shareholder to treat the designated portion of such dividends as interest income for purposes of determining such shareholder’s interest expense deduction limitation under Section 163(j). This can potentially increase the amount of a shareholder’s interest expense deductible under Section 163(j). In general, to be eligible to treat a Section 163(j) Interest Dividend as interest income, you must have held your shares in the Fund for more than 180 days during the 361-day period beginning on the date that is 180 days before the date on which the share becomes ex-dividend with respect to such dividend. Section 163(j) Interest Dividends, if so designated by the Fund, will be reported to your financial intermediary or otherwise in accordance with the requirements specified by the Internal Revenue Service. |
● | Shortly after the close of each calendar year, the Fund (or your broker) will inform you of the amount of your ordinary income dividends, qualified dividend income, foreign tax credits, and net capital gain distributions received from the Fund. |
16 |
● | You may wish to avoid investing in the Fund shortly before a dividend or other distribution, because such a distribution will generally be taxable even though it may economically represent a return of a portion of your investment. |
17 |
18 |
AdvisorShares North Square McKee ESG Core Bond Fund (formerly AdvisorShares FolioBeyond Smart Core Bond ETF) | Years Ended June 30, | |||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Selected Data for a Share of Capital Stock Outstanding | ||||||||||||||||||||
Net Asset Value, Beginning of Year/Period | $ | 25.58 | $ | 25.71 | $ | 25.39 | $ | 25.88 | $ | 25.61 | ||||||||||
Investment Operations | ||||||||||||||||||||
Net Investment Income (1) | 0.43 | 0.81 | 1.04 | 0.90 | 0.81 | |||||||||||||||
Net Realized and Unrealized Gain (Loss) | 0.36 | (0.10 | ) | 0.38 | (0.50 | ) | 0.25 | |||||||||||||
Distributions of Net Realized Gains by other investment companies | 0.08 | — | — | — | 0.01 | |||||||||||||||
Net Increase in Net Assets Resulting from Investment Operations (2) | 0.87 | 0.71 | 1.42 | 0.40 | 1.07 | |||||||||||||||
Distributions from Net Investment Income | (0.49 | ) | (0.84 | ) | (1.10 | ) | (0.89 | ) | (0.80 | ) | ||||||||||
Total Distributions | (0.49 | ) | (0.84 | ) | (1.10 | ) | (0.89 | ) | (0.80 | ) | ||||||||||
Net Asset Value, End of Year/Period | $ | 25.96 | $ | 25.58 | $ | 25.71 | $ | 25.39 | $ | 25.88 | ||||||||||
Market Value, End of Year/Period | $ | 25.96 | $ | 25.57 | $ | 25.70 | $ | 25.38 | $ | 25.89 | ||||||||||
Total Return | ||||||||||||||||||||
Total Investment Return Based on Net Asset Value (3) | 3.44 | % | 2.73 | % | 5.82 | % | 1.55 | % | 4.23 | % | ||||||||||
Total Investment Return Based on Market (3) | 3.46 | % | 2.75 | % | 5.80 | % | 1.47 | % | 4.24 | % | ||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||
Net Assets, End of Year/Period (000’s omitted) | $ | 5,581 | $ | 8,312 | $ | 5,785 | $ | 18,405 | $ | 17,466 | ||||||||||
Ratio to Average Net Assets of: (6) | ||||||||||||||||||||
Expenses, net of expense waivers and reimbursements (4) | 0.95 | % | 0.95 | % | 0.95 | % | 0.95 | % | 0.95 | % | ||||||||||
Expenses, prior to expense waivers and reimbursements (4) | 2.15 | % | 1.50 | % | 1.49 | % | 1.22 | % | 1.20 | % | ||||||||||
Net Investment Income (4) | 1.65 | % | 3.14 | % | 4.14 | % | 3.47 | % | 3.15 | % | ||||||||||
Portfolio Turnover Rate (5) | 256 | % | 765 | % | 150 | % | 39 | % | 21 | % |
(1) | Based on average shares outstanding. |
(2) | The amount shown for a share distribution throughout the period may not correlate with the Statement 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. |
(3) | 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. |
(4) | Ratios of periods of less than one year have been annualized. Excludes expenses incurred by the underlying investments in other funds. |
(5) | Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as in-kind creations or redemptions of the Fund’s capital shares. |
(6) | The Fund invests in other funds and indirectly bear their proportionate shares of fees and expenses incurred by the funds in which the Fund is invested. These ratios do not include these indirect fees and expenses. |
19 |
Advisor | AdvisorShares Investments, LLC 4800 Montgomery Lane, Suite 150 Bethesda, Maryland 20814 |
Sub-Advisor | CSM Advisors, LLC 420 Fort Duquesne Boulevard Pittsburgh, Pennsylvania 15222 |
Distributor | Foreside Fund Services, LLC Three Canal Plaza, Suite 100 Portland, Maine 04101 |
Legal Counsel | Morgan, Lewis & Bockius LLP 1111 Pennsylvania Avenue, NW Washington, DC 20004 |
Administrator, Custodian & Transfer Agent | The Bank of New York Mellon 240 Greenwich Street New York, New York 10286 |
20 |
Managed by: AdvisorShares Investments, LLC |
ADVISORSHARES TRUST 4800 Montgomery Lane ● Suite 150 Bethesda, Maryland 20814 www.advisorshares.com 877.843.3831 Prospectus dated November 1, 2021 |
SHAREHOLDER FEES (fees paid directly from your investment) | |
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment) | |
MANAGEMENT FEES | |
DISTRIBUTION (12b-1) FEES | |
OTHER EXPENSES | |
ACQUIRED FUND FEES AND EXPENSES (a) | |
TOTAL ANNUAL OPERATING EXPENSES | |
FEE/EXPENSE RECAPTURE (b) | |
TOTAL ANNUAL OPERATING EXPENSES AFTER RECAPTURE |
(a) | Total Annual Operating Expenses and Total Annual Operating Expenses After Fee Waiver/Expense Reimbursement in this fee table may not correlate to the expense ratios in the Fund’s financial highlights (and the Fund’s financial statements) because the financial highlights include only the Fund’s direct operating expenses and do not include Acquired Fund Fees and Expenses, which represent the Fund’s pro rata share of the fees and expenses of money market funds in which it invested. |
(b) | AdvisorShares Investments, LLC (the “Advisor”) has contractually agreed to waive its fees and/or reimburse expenses to keep net expenses (excluding amounts payable pursuant to any plan adopted in accordance with Rule 12b-1, interest expense, taxes, brokerage commissions, acquired fund fees and expenses, other expenditures which are capitalized in accordance with generally accepted accounting principles, and extraordinary expenses) from exceeding 0.74% of the Fund’s average daily net assets |
1 |
1 YEAR | 3 YEARS | 5 YEARS | 10 YEARS | |
AdvisorShares Pure Cannabis ETF | $ | $ | $ | $ |
2 |
3 |
4 |
5 |
6 |
Return | Quarter/Year | ||
- |
ADVISORSHARES PURE CANNABIS ETF | 1 Year | Since Inception ( |
Return Before Taxes Based on NAV | - | |
Return After Taxes on Distributions | - | |
Return After Taxes on Distributions and Sale of Fund Shares | - | |
S&P 500 Index (reflects no deduction for fees, expenses, or taxes) |
Name | Title |
AdvisorShares Investments, LLC | Advisor |
Name and Title | Length of Service with the Advisor |
Dan S. Ahrens, Managing Director, Chief Operating Officer & Portfolio Manager | since November 2008 |
7 |
8 |
9 |
10 |
11 |
12 |
13 |
14 |
15 |
16 |
● | the Fund makes distributions; |
● | you sell Fund shares; and |
● | you purchase or redeem Creation Units (authorized participants only). |
● | The Fund intends to distribute, at least annually, substantially all of its net investment income and net capital gains income. |
● | The Fund’s distributions from income and net short-term capital gains will generally be taxed to you as ordinary income. For non-corporate shareholders, dividends reported by the Fund as qualified dividend income are generally eligible for reduced tax rates applicable to long-term capital gains, provided holding period and other requirements are met. Qualified dividend income generally is income derived from dividends paid by U.S. corporations or certain foreign corporations that are either incorporated in a U.S. possession or eligible for tax benefits under certain U.S. income tax treaties. In addition, dividends that the Fund receives in respect of stock of certain foreign corporations may be qualified dividend income if that stock is readily tradable on an established U.S. securities market. For such dividends to be taxed as qualified dividend income to a non-corporate shareholder, the Fund must satisfy certain holding period requirements with respect to the underlying stock and the non-corporate shareholder must satisfy holding period requirements with respect to his or her ownership of the Fund’s shares. Holding periods may be suspended for these purposes for stock that is hedged. |
● | Corporate shareholders may be entitled to a dividends received deduction for the portion of dividends they receive that are attributable to dividends received by the Fund from U.S. corporations, subject to certain limitations. |
17 |
● | Taxes on distributions of capital gains (if any) are determined by how long the Fund owned the investments that generated them, rather than how long a shareholder has owned their shares. Sales of assets held by the Fund for more than one year generally result in long-term capital gains and losses, and sales of assets held by the Fund for one year or less generally result in short-term capital gains and losses. Distributions from the Fund’s short-term capital gains are generally taxable as ordinary income. Any distributions of net capital gain (the excess of the Fund’s net long-term capital gains over its net short-term capital losses) that you receive from the Fund generally are taxable as long-term capital gains regardless of how long you have owned your shares. Long-term capital gains are taxed to non-corporate shareholders at reduced tax rates. |
● | Dividends and distributions are generally taxable to you whether you receive them in cash or reinvest them in additional shares. |
● | In general, your distributions are subject to federal income tax for the year in which they are paid. However, distributions paid in January but declared by the Fund in October, November or December of the previous year may be taxable to you in the previous year. |
● | Shortly after the close of each calendar year, the Fund (or your broker) will inform you of the amount of your ordinary income dividends, qualified dividend income, foreign tax credits and net capital gain distributions received from the Fund. |
● | You may wish to avoid investing in the Fund shortly before a dividend or other distribution, because such a distribution will generally be taxable even though it may economically represent a return of a portion of your investment. |
18 |
19 |
20 |
AdvisorShares Pure Cannabis ETF | Years Ended June 30, | For the period April 17, 2019* to June 30, 2019 | ||||||||||
2021 | 2020 | |||||||||||
Selected Data for a Share of Capital Stock Outstanding | ||||||||||||
Net Asset Value, Beginning of Year/Period | $ | 10.17 | $ | 22.99 | $ | 25.00 | ||||||
Investment Operations | ||||||||||||
Net Investment Income (1) | 0.04 | 0.70 | 0.06 | |||||||||
Net Realized and Unrealized Gain (Loss) | 11.05 | (12.75 | ) | (2.07 | ) | |||||||
Net Increase (Decrease) in Net Assets Resulting from Investment Operations (2) | 11.09 | (12.05 | ) | (2.01 | ) | |||||||
Distributions from Net Investment Income | (0.11 | ) | (0.70 | ) | — | |||||||
Distributions from Realized Capital Gains | — | (0.07 | ) | — | ||||||||
Total Distributions | (0.11 | ) | (0.77 | ) | — | |||||||
Net Asset Value, End of Year/Period | $ | 21.15 | $ | 10.17 | $ | 22.99 | ||||||
Market Value, End of Year/Period | $ | 21.12 | $ | 10.18 | $ | 23.02 | ||||||
Total Return | ||||||||||||
Total Investment Return Based on Net Asset Value (3) | 109.96 | % | (52.76 | )% | (8.06 | )% | ||||||
Total Investment Return Based on Market (3) | 109.35 | % | (52.70 | )% | (7.92 | )% | ||||||
Ratios/Supplemental Data | ||||||||||||
Net Assets, End of Year/Period (000’s omitted) | $ | 354,408 | $ | 45,503 | $ | 59,762 | ||||||
Ratio to Average Net Assets of: | ||||||||||||
Expenses, net of expense waivers and reimbursements (4) | 0.74 | % | 0.74 | % | 0.74 | % | ||||||
Expenses, prior to expense waivers and reimbursements (4) | 0.69 | % | 1.17 | % | 1.10 | % | ||||||
Net Investment Income (4) | 0.21 | % | 5.67 | % | 1.35 | % | ||||||
Portfolio Turnover Rate (5) | 46 | % | 59 | % | 26 | % |
* | Commencement of operations. |
(1) | Based on average shares outstanding. |
(2) | The amount shown for a share distribution throughout the period may not correlate with the Statement 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. |
(3) | 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. |
(4) | Ratios of periods of less than one year have been annualized. Excludes expenses incurred by the underlying investments in other funds. |
(5) | Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as in-kind creations or redemptions of the Fund’s capital shares. |
21 |
Advisor | AdvisorShares Investments, LLC 4800 Montgomery Lane, Suite 150 Bethesda, Maryland 20814 |
Distributor | Foreside Fund Services, LLC Three Canal Plaza, Suite 100 Portland, Maine 04101 |
Legal Counsel | Morgan, Lewis & Bockius LLP 1111 Pennsylvania Avenue, NW Washington, DC 20004 |
Administrator, Custodian & Transfer Agent | The Bank of New York Mellon 240 Greenwich Street New York, New York 10286 |
22 |
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NYSE Arca Ticker: |
Managed by: AdvisorShares Investments, LLC |
ADVISORSHARES TRUST 4800 Montgomery Lane ● Suite 150 Bethesda, Maryland 20814 www.advisorshares.com 877.843.3831 Prospectus dated November 1, 2021 This Prospectus provides important information about the AdvisorShares Pure US Cannabis ETF, a series of AdvisorShares Trust. Before you invest, please read this Prospectus and the Fund’s Statement of Additional Information carefully and keep them for future reference. The shares of the Fund have not been approved or disapproved by the U.S. Securities and Exchange Commission nor has the U.S. Securities and Exchange Commission passed upon the accuracy or adequacy of this Prospectus. Any representation to the contrary is a criminal offense. |
SHAREHOLDER FEES (fees paid directly from your investment) | |
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment) | |
MANAGEMENT FEES | |
DISTRIBUTION (12b-1) FEES | |
OTHER EXPENSES | |
ACQUIRED FUND FEES AND EXPENSES* | |
TOTAL ANNUAL OPERATING EXPENSES |
* | Total Annual Operating Expenses in this fee table may not correlate to the expense ratio in the Fund’s financial highlights (and the Fund’s financial statements) because the financial highlights include only the Fund’s direct operating expenses and do not include Acquired Fund Fees and Expenses, which represent the Fund’s pro rata share of the fees and expenses of the money market funds in which it invested. |
1 YEAR | 3 YEARS | 5 YEARS | 10 YEARS | |
AdvisorShares Pure US Cannabis ETF | $ | $ | $ | $ |
Name | Title |
AdvisorShares Investments, LLC | Advisor |
Name and Title | Length of Service with the Advisor |
Dan S. Ahrens, Managing Director, Chief Operating Officer & Portfolio Manager | since November 2008 |
● | the Fund makes distributions; |
● | you sell Fund shares; and |
● | you purchase or redeem Creation Units (authorized participants only). |
● | The Fund intends to distribute, at least annually, substantially all of its net investment income and net capital gains income. |
● | The Fund’s distributions from income and net short-term capital gains will generally be taxed to you as ordinary income. For non-corporate shareholders, dividends reported by the Fund as qualified dividend income are generally eligible for reduced tax rates applicable to long-term capital gains, provided holding period and other requirements are met. Qualified dividend income generally is income derived from dividends paid by U.S. corporations or certain foreign corporations that are either incorporated in a U.S. possession or eligible for tax benefits under certain U.S. income tax treaties. In addition, dividends that the Fund receives in respect of stock of certain foreign corporations may be qualified dividend income if that stock is readily tradable on an established U.S. securities market. For such dividends to be taxed as qualified dividend income to a non-corporate shareholder, the Fund must satisfy certain holding period requirements with respect to the underlying stock and the non-corporate shareholder must satisfy holding period requirements with respect to his or her ownership of the Fund’s shares. Holding periods may be suspended for these purposes for stock that is hedged. |
● | Corporate shareholders may be entitled to a dividends received deduction for the portion of dividends they receive that are attributable to dividends received by the Fund from U.S. corporations, subject to certain limitations. |
● | Taxes on distributions of capital gains (if any) are determined by how long the Fund owned the investments that generated them, rather than how long a shareholder has owned their shares. Sales of assets held by the Fund for more than one year generally result in long-term capital gains and losses, and sales of assets held by the Fund for one year or less generally result in short-term capital gains and losses. Distributions from the Fund’s short-term capital gains are generally taxable as ordinary income. Any distributions of net capital gain (the excess of the Fund’s net long-term capital gains over its net short-term capital losses) that you receive from the Fund generally are taxable as long-term capital gains regardless of how long you have owned your shares. Long-term capital gains are taxed to non-corporate shareholders at reduced tax rates. |
● | Dividends and distributions are generally taxable to you whether you receive them in cash or reinvest them in additional shares. |
● | In general, your distributions are subject to federal income tax for the year in which they are paid. However, distributions paid in January but declared by the Fund in October, November or December of the previous year may be taxable to you in the previous year. |
● | Shortly after the close of each calendar year, the Fund (or your broker) will inform you of the amount of your ordinary income dividends, qualified dividend income, foreign tax credits and net capital gain distributions received from the Fund. |
● | You may wish to avoid investing in the Fund shortly before a dividend or other distribution, because such a distribution will generally be taxable even though it may economically represent a return of a portion of your investment. |
AdvisorShares Pure US Cannabis ETF | For the period September 1, 2020* to June 30, 2021 | |||
Selected Data for a Share of Capital Stock Outstanding | ||||
Net Asset Value, Beginning of Year/Period | $ | 25.00 | ||
Investment Operations | ||||
Net Investment Loss (1) | (0.17 | ) | ||
Net Realized and Unrealized Gain | 15.39 | |||
Net Increase in Net Assets Resulting from Investment Operations (2) | 15.22 | |||
Net Asset Value, End of Year/Period | $ | 40.22 | ||
Market Value, End of Year/Period | $ | 40.08 | ||
Total Return | ||||
Total Investment Return Based on Net Asset Value (3) | 60.86 | % | ||
Total Investment Return Based on Market (3) | 60.32 | % | ||
Ratios/Supplemental Data | ||||
Net Assets, End of Year/Period (000’s omitted) | $ | 950,694 | ||
Ratio to Average Net Assets of: | ||||
Expenses, net of expense waivers and reimbursements (4) | 0.69 | % | ||
Expenses, prior to expense waivers and reimbursements (4) | 0.69 | % | ||
Net Investment Loss (4) | (0.49 | )% | ||
Portfolio Turnover Rate (5) | 68 | % |
* | Commencement of operations. |
(1) | Based on average shares outstanding. |
(2) | The amount shown for a share distribution throughout the period may not correlate with the Statement 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. |
(3) | 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. |
(4) | Ratios of periods of less than one year have been annualized. Excludes expenses incurred by the underlying investments in other funds. |
(5) | Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as in-kind creations or redemptions of the Fund’s capital shares. |
Advisor | AdvisorShares Investments, LLC 4800 Montgomery Lane, Suite 150 Bethesda, Maryland 20814 |
Distributor | Foreside Fund Services, LLC Three Canal Plaza, Suite 100 Portland, Maine 04101 |
Legal Counsel | Morgan, Lewis & Bockius LLP 1111 Pennsylvania Avenue, NW Washington, DC 20004 |
Administrator, Custodian & Transfer Agent | The Bank of New York Mellon 240 Greenwich Street New York, New York 10286 |
SHAREHOLDER FEES (fees paid directly from your investment) | |
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment) | |
MANAGEMENT FEES (a) | |
DISTRIBUTION (12b-1) FEES | |
OTHER EXPENSES | |
ACQUIRED FUND FEES AND EXPENSES (b) | |
TOTAL ANNUAL OPERATING EXPENSES | |
FEE WAIVER/EXPENSE REIMBURSEMENT (c) | - |
TOTAL ANNUAL OPERATING EXPENSES AFTER FEE WAIVER/EXPENSE REIMBURSEMENT |
(a) | The management fee above reflects the base fee. Actual management fees may be higher or lower depending on the Fund’s performance compared to its performance benchmark and can range from 0.64% to 0.84%. |
(b) |
(c) | AdvisorShares Investments, LLC (the “Advisor”) has contractually agreed to waive its fees and/or reimburse expenses to keep net expenses (excluding amounts payable pursuant to any plan adopted in accordance with Rule 12b-1, interest expense, taxes, brokerage commissions, acquired fund fees and expenses, other expenditures which are capitalized in accordance with generally accepted accounting principles, and extraordinary expenses) from exceeding 0.99% of the Fund’s average daily net assets |
1 |
1 YEAR | 3 YEARS | 5 YEARS | 10 YEARS | |
AdvisorShares Q Portfolio Blended Allocation ETF | $ | $ | $ | $ |
2 |
3 |
● | Commodity Risk. The commodities industries can be significantly affected by the level and volatility of commodity prices, world events including international monetary and political developments, import controls and worldwide competition, exploration and production spending, and tax and other government regulations and economic conditions. |
● | Concentration Risk . An ETF may, at various times, concentrate in the securities of a particular industry, group of industries, or sector, and when a fund is over-weighted in an industry, group of industries, or sector, it may be more sensitive to any single economic, business, political, or regulatory occurrence than a fund that is not over-weighted in an industry, group of industries, or sector. |
● | Credit Risk . Certain of the ETFs are subject to the risk that a decline in the credit quality of a portfolio investment or reference asset could cause the ETF’s share price to fall. The ETFs could lose money if the issuer or guarantor of a portfolio investment or the counterparty to a derivatives contract fails to make timely principal or interest payments or otherwise honor its obligations. |
● | Equity Risk . The prices of equity securities rise and fall daily. These price movements may result from factors affecting individual issuers, industries or the stock market as a whole. In addition, equity markets tend to move in cycles which may cause stock prices to fall over short or extended periods of time. |
● | Fixed Income Securities Risk . An ETF’s investments in, or exposure to, fixed income securities are subject to the risk that the securities may be paid off earlier or later than expected. Either situation could cause the ETF to hold securities paying lower- than-market rates of interest, which could hurt the Fund’s yield or share price. |
● | Foreign Securities Risk . An ETF’s investments in, or exposure to, foreign issuers involve certain risks including, but not limited to, risks of adverse changes in foreign economic, political, regulatory and other conditions, or changes in currency exchange rates or exchange control regulations (including limitations on currency movements and exchanges). In certain countries, legal remedies available to investors may be more limited than those available with respect to investments in the United States. In addition, the securities of some foreign companies may be less liquid and, at times, more volatile than securities of comparable U.S. companies. |
4 |
● | High-Yield Risk . An ETF may invest in, or be exposed to, high-yield securities and unrated securities of similar credit quality (commonly known as “junk bonds”). High-yield securities generally pay higher yields (greater income) than investment in higher quality securities; however, high-yield securities and junk bonds may be subject to greater levels of interest rate, credit and liquidity risk than funds that do not invest in such securities, and are considered predominantly speculative with respect to an issuer’s continuing ability to make principal and interest payments. |
● | Income Risk . An ETF may derive dividend and interest income from certain of its investments. This income can vary widely over the short- and long-term. If prevailing market interest rates drop, distribution rates of an ETF’s income producing investments may decline which then may adversely affect the Fund’s value. |
● | Interest Rate Risk . An ETF’s investments in or exposure to fixed income securities are subject to the risk that interest rates rise and fall over time. As with any investment whose yield reflects current interest rates, an ETF’s yield will change over time. During periods when interest rates are low, an ETF’s yield (and total return) also may be low. To the extent that the investment advisor or issuer of an ETF anticipates interest rate trends imprecisely, the ETF could miss yield opportunities or its share price could fall. |
● | U.S. Government Securities Risk . U.S. government securities are subject to price fluctuations and to default in the event that an agency or instrumentality defaults on an obligation not backed by the full faith and credit of the United States. |
Name | Title |
AdvisorShares Investments, LLC | Advisor |
ThinkBetter, LLC | Sub-Advisor |
Name and Title | Length of Service with the Sub-Advisor |
Ron Piccinini, Ph.D, Chief Investment Officer | since May 2019 |
5 |
6 |
SHAREHOLDER FEES (fees paid directly from your investment) | |
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment) | |
MANAGEMENT FEES (a) | |
DISTRIBUTION (12b-1) FEES | |
OTHER EXPENSES | |
ACQUIRED FUND FEES AND EXPENSES (b) | |
TOTAL ANNUAL OPERATING EXPENSES | |
FEE WAIVER/EXPENSE REIMBURSEMENT (c) | - |
TOTAL ANNUAL OPERATING EXPENSES AFTER FEE WAIVER/EXPENSE REIMBURSEMENT |
(a) | The management fee above reflects the base fee. Actual management fees may be higher or lower depending on the Fund’s performance compared to its performance benchmark and can range from 0.90% to 1.10%. |
(b) |
(c) | AdvisorShares Investments, LLC (the “Advisor”) has contractually agreed to waive its fees and/or reimburse expenses to keep net expenses (excluding amounts payable pursuant to any plan adopted in accordance with Rule 12b-1, interest expense, taxes, brokerage commissions, acquired fund fees and expenses, other expenditures which are capitalized in accordance with generally accepted accounting principles, and extraordinary expenses) from exceeding 1.45% of the Fund’s average daily net assets |
7 |
1 YEAR | 3 YEARS | 5 YEARS | 10 YEARS | |
AdvisorShares Q Dynamic Growth ETF | $ | $ | $ | $ |
8 |
9 |
● | Commodity Risk. The commodities industries can be significantly affected by the level and volatility of commodity prices, world events including international monetary and political developments, import controls and worldwide competition, exploration and production spending, and tax and other government regulations and economic conditions. |
● | Concentration Risk . An ETF may, at various times, concentrate in the securities of a particular industry, group of industries, or sector, and when a fund is over-weighted in an industry, group of industries, or sector, it may be more sensitive to any single economic, business, political, or regulatory occurrence than a fund that is not over-weighted in an industry, group of industries, or sector. |
● | Credit Risk . Certain of the ETFs are subject to the risk that a decline in the credit quality of a portfolio investment or reference asset could cause the ETF’s share price to fall. The ETFs could lose money if the issuer or guarantor of a portfolio investment or the counterparty to a derivatives contract fails to make timely principal or interest payments or otherwise honor its obligations. |
● | Equity Risk . The prices of equity securities rise and fall daily. These price movements may result from factors affecting individual issuers, industries or the stock market as a whole. In addition, equity markets tend to move in cycles which may cause stock prices to fall over short or extended periods of time. |
● | Fixed Income Securities Risk . An ETF’s investments in, or exposure to, fixed income securities are subject to the risk that the securities may be paid off earlier or later than expected. Either situation could cause the ETF to hold securities paying lower- than-market rates of interest, which could hurt the Fund’s yield or share price. |
● | Foreign Securities Risk . An ETF’s investments in, or exposure to, foreign issuers involve certain risks including, but not limited to, risks of adverse changes in foreign economic, political, regulatory and other conditions, or changes in currency exchange rates or exchange control regulations (including limitations on currency movements and exchanges). In certain countries, legal remedies available to investors may be more limited than those available with respect to investments in the United States. In addition, the securities of some foreign companies may be less liquid and, at times, more volatile than securities of comparable U.S. companies. |
● | High-Yield Risk . An ETF may invest in, or be exposed to, high-yield securities and unrated securities of similar credit quality (commonly known as “junk bonds”). High-yield securities generally pay higher yields (greater income) than investment in higher quality securities; however, high-yield securities and junk bonds may be subject to greater levels of interest rate, credit and liquidity risk than funds that do not invest in such securities, and are considered predominantly speculative with respect to an issuer’s continuing ability to make principal and interest payments. |
● | Income Risk . An ETF may derive dividend and interest income from certain of its investments. This income can vary widely over the short- and long-term. If prevailing market interest rates drop, distribution rates of an ETF’s income producing investments may decline which then may adversely affect the Fund’s value. |
● | Interest Rate Risk . An ETF’s investments in or exposure to fixed income securities are subject to the risk that interest rates rise and fall over time. As with any investment whose yield reflects current interest rates, an ETF’s yield will change over time. During periods when interest rates are low, an ETF’s yield (and total return) also may be low. To the extent that the investment advisor or issuer of an ETF anticipates interest rate trends imprecisely, the ETF could miss yield opportunities or its share price could fall. |
● | U.S. Government Securities Risk . U.S. government securities are subject to price fluctuations and to default in the event that an agency or instrumentality defaults on an obligation not backed by the full faith and credit of the United States. |
10 |
Name | Title |
AdvisorShares Investments, LLC | Advisor |
ThinkBetter, LLC | Sub-Advisor |
Name and Title | Length of Service with Sub-Advisor |
Ron Piccinini, Ph.D , Chief Investment Officer | since May 2019 |
11 |
12 |
13 |
14 |
15 |
16 |
17 |
Base Fee |
0.74% |
Incremental Changes |
0.02% |
Performance to Benchmark |
Advisory Fee |
2.00% |
0.84% |
1.50% |
0.82% |
1.25% |
0.80% |
1.00% |
0.78% |
0.50% |
0.76% |
+/- 0 |
0.74% |
-0.50% |
0.72% |
-1.00% |
0.70% |
-1.25% |
0.68% |
-1.50% |
0.66% |
-2.00% |
0.64% |
Base Fee |
1.00% |
Incremental Changes |
0.02% |
Performance to Benchmark |
Advisory Fee |
2.00% |
1.10% |
1.50% |
1.08% |
1.25% |
1.06% |
1.00% |
1.04% |
0.50% |
1.02% |
+/- 0 |
1.00% |
-0.50% |
0.98% |
-1.00% |
0.96% |
-1.25% |
0.94% |
-1.50% |
0.92% |
-2.00% |
0.90% |
18 |
19 |
20 |
21 |
● |
a Fund makes distributions; |
● |
you sell Fund shares; and |
● |
you purchase or redeem Creation Units (authorized participants only). |
● |
Each Fund intends to distribute, at least annually, substantially all of its net investment income and net capital gains income. |
● |
The income dividends you receive from a Fund will generally be taxed to you as either ordinary income or “qualified dividend income.” For non-corporate shareholders, dividends reported by a Fund as qualified dividend income are generally eligible for reduced tax rates applicable to long-term capital gains, provided holding period and other requirements are met. Qualified dividend income generally is income derived from dividends paid by U.S. corporations or certain foreign corporations that are either incorporated in a U.S. possession or eligible for tax benefits under certain U.S. income tax treaties. In addition, dividends that a Fund receives in respect of stock of certain foreign corporations may be qualified dividend income if that stock is readily tradable on an established U.S. securities market. For such dividends to be taxed as qualified dividend income to a non-corporate shareholder, a Fund must satisfy certain holding period requirements with respect to the underlying stock and the non-corporate shareholder must satisfy holding period requirements with respect to his or her ownership of the Fund’s shares. Holding periods may be suspended for these purposes for stock that is hedged. In general, dividends received by a Fund from an ETF taxable as a RIC may be distributed and reported as qualified dividend income by the Fund to the extent of the dividend distributions distributed and reported as qualified dividend income by the ETF. The Funds’ investment strategies will significantly limit their ability to report distributions as qualified dividend income. |
● |
Corporate shareholders may be entitled to a dividends received deduction for the portion of dividends they receive that are attributable to dividends received by a Fund (directly or in some cases indirectly) from U.S. corporations, subject to certain limitations. The Funds’ investment strategies will significantly limit their ability to report distributions as eligible for the dividends received deduction. |
● |
Taxes on distributions of capital gains (if any) are determined by how long a Fund owned the investments that generated them, rather than how long a shareholder has owned their shares. Sales of assets held by a Fund for more than one year generally result in long-term capital gains and losses, and sales of assets held by a Fund for one year or less generally result in short-term capital gains and losses. Distributions from a Fund’s short-term capital gains are generally taxable as ordinary income. Any distributions of net capital gain (the excess of a Fund’s net long-term capital gains over its net short-term capital losses) that you receive from a Fund generally are taxable as long-term capital gains regardless of how long you have owned your shares. Long-term capital gains are taxed to non-corporate shareholders at reduced tax rates. |
22 |
● |
Dividends and distributions are generally taxable to you whether you receive them in cash or reinvest them in additional shares. |
● |
In general, your distributions are subject to federal income tax for the year in which they are paid. However, distributions paid in January but declared by a Fund in October, November or December of the previous year may be taxable to you in the previous year. |
● |
Under recently issued final Treasury Regulations, a RIC that receives business interest income may pass through its net business interest income for purposes of the tax rules applicable to the interest expense limitations under Section 163(j) of the Internal Revenue Code. A RIC’s total “Section 163(j) Interest Dividend” for a tax year is limited to the excess of the RIC’s business interest income over the sum of its business interest expense and its other deductions properly allocable to its business interest income. A RIC may, in its discretion, designate all or a portion of ordinary dividends as Section 163(j) Interest Dividends, which would allow the recipient shareholder to treat the designated portion of such dividends as interest income for purposes of determining such shareholder’s interest expense deduction limitation under Section 163(j). This can potentially increase the amount of a shareholder’s interest expense deductible under Section 163(j). In general, to be eligible to treat a Section 163(j) Interest Dividend as interest income, you must have held your shares in a Fund for more than 180 days during the 361-day period beginning on the date that is 180 days before the date on which the share becomes ex-dividend with respect to such dividend. Section 163(j) Interest Dividends, if so designated by a Fund, will be reported to your financial intermediary or otherwise in accordance with the requirements specified by the Internal Revenue Service. |
● |
Shortly after the close of each calendar year, each Fund in which you invest (or your broker) will inform you of the amount of your ordinary income dividends, qualified dividend income, foreign tax credits, and net capital gain distributions received from the Fund. |
● |
You may wish to avoid investing in a Fund shortly before a dividend or other distribution, because such a distribution will generally be taxable even though it may economically represent a return of a portion of your investment. |
23 |
24 |
25 |
AdvisorShares Q Portfolio Blended Allocation ETF | For the period December 28, 2020* to June 30, 2021 | |||
Selected Data for a Share of Capital Stock Outstanding | ||||
Net Asset Value, Beginning of Year/Period | $ | 25.00 | ||
Investment Operations | ||||
Net Investment Income (1) | 0.01 | |||
Net Realized and Unrealized Gain | 0.76 | |||
Distributions of Net Realized Gains by other investment companies | 0.00 | (7) | ||
Net Increase in Net Assets Resulting from Investment Operations (2) | 0.77 | |||
Net Asset Value, End of Year/Period | $ | 25.77 | ||
Market Value, End of Year/Period | $ | 25.76 | ||
Total Return | ||||
Total Investment Return Based on Net Asset Value (3) | 3.07 | % | ||
Total Investment Return Based on Market (3) | 3.04 | % | ||
Ratios/Supplemental Data | ||||
Net Assets, End of Year/Period (000’s omitted) | $ | 3,479 | ||
Ratio to Average Net Assets of: (4) | ||||
Expenses, net of expense waivers and reimbursements (5) | 0.99 | % | ||
Expenses, prior to expense waivers and reimbursements (5) | 3.59 | % | ||
Net Investment Income (5) | 0.04 | % | ||
Portfolio Turnover Rate (6) | 248 | % |
* | Commencement of operations. |
(1) | Based on average shares outstanding. |
(2) | The amount shown for a share distribution throughout the period may not correlate with the Statement 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. |
(3) | 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. |
(4) | The Fund invests in other funds and indirectly bear their proportionate shares of fees and expenses incurred by the funds in which the Fund is invested. These ratios do not include these indirect fees and expenses. |
(5) | Ratios of periods of less than one year have been annualized. Excludes expenses incurred by the underlying investments in other funds. |
(6) | 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. |
(7) | Amount represents less than $0.005 or 0.005%. |
AdvisorShares Q Dynamic Growth ETF | For the period December 28, 2020* to June 30, 2021 | |||
Selected Data for a Share of Capital Stock Outstanding | ||||
Net Asset Value, Beginning of Year/Period | $ | 25.00 | ||
Investment Operations | ||||
Net Investment Loss (1) | (0.09 | ) | ||
Net Realized and Unrealized Gain | 3.21 | |||
Net Increase in Net Assets Resulting from Investment Operations (2) | 3.12 | |||
Net Asset Value, End of Year/Period | $ | 28.12 | ||
Market Value, End of Year/Period | $ | 28.13 | ||
Total Return | ||||
Total Investment Return Based on Net Asset Value (3) | 12.50 | % | ||
Total Investment Return Based on Market (3) | 12.52 | % | ||
Ratios/Supplemental Data | ||||
Net Assets, End of Year/Period (000’s omitted) | $ | 68,763 | ||
Ratio to Average Net Assets of: (4) | ||||
Expenses, net of expense waivers and reimbursements (5) | 1.43 | % | ||
Expenses, prior to expense waivers and reimbursements (5) | 1.49 | % | ||
Net Investment Loss (5) | (0.65 | )% | ||
Portfolio Turnover Rate (6) | 61 | % |
* | Commencement of operations. |
(1) | Based on average shares outstanding. |
(2) | The amount shown for a share distribution throughout the period may not correlate with the Statement 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. |
(3) | 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. |
(4) | The Fund invests in other funds and indirectly bear their proportionate shares of fees and expenses incurred by the funds in which the Fund is invested. These ratios do not include these indirect fees and expenses. |
(5) | Ratios of periods of less than one year have been annualized. Excludes expenses incurred by the underlying investments in other funds. |
(6) | 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. |
27 |
Advisor | AdvisorShares Investments, LLC 4800 Montgomery Lane, Suite 150 Bethesda, Maryland 20814 |
Sub-Advisor | ThinkBetter, LLC 1924 South Osprey Avenue, Suite 202 Sarasota, Florida 34239 |
Distributor | Foreside Fund Services, LLC Three Canal Plaza, Suite 100 Portland, Maine 04101 |
Legal Counsel | Morgan, Lewis & Bockius LLP 1111 Pennsylvania Avenue, NW Washington, DC 20004 |
Administrator, Custodian & Transfer Agent | The Bank of New York Mellon 240 Greenwich Street New York, New York 10286 |
28 |
SHAREHOLDER FEES (fees paid directly from your investment) | ||
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment) | ||
MANAGEMENT FEES | ||
DISTRIBUTION (12b-1) FEES | ||
OTHER EXPENSES | ||
Short Interest Expenses | ||
Remaining Expenses | ||
ACQUIRED FUND FEES AND EXPENSES* | ||
TOTAL ANNUAL OPERATING EXPENSES |
* |
1 YEAR | 3 YEARS | 5 YEARS | 10 YEARS | |
AdvisorShares Ranger Equity Bear ETF | $ | $ | $ | $ |
Return | Quarter/ Year | |
Highest Return | ||
Lowest Return | - |
ADVISORSHARES RANGER EQUITY BEAR ETF | 1 Year | 5 Year | Since Inception ( | ||
Return Before Taxes Based on NAV | - | - | - | ||
Return After Taxes on Distributions | - | - | - | ||
Return After Taxes on Distributions and Sale of Fund Shares | - | - | - | ||
S&P 500 Index (reflects no deduction for fees, expenses, or taxes) |
Name |
Title |
AdvisorShares Investments, LLC | Advisor |
Ranger Alternative Management, L.P . |
Sub-Advisor
|
Name and Title |
Length of Service with Sub-Advisor |
|
John Del Vecchio, CFA, Portfolio Manager Brad H. Lamensdorf, Portfolio Manager, Trading and Market Strategist |
since August 2007
since February 2009
|
· |
quality and sustainability of revenue, as indicated by extended payment terms, changes in revenue policies or other factors; |
· |
deterioration of cash flows or declining quality of earnings; reserve reversals or an increase in “soft” assets which could indicate the capitalization of expenses; and |
· |
an analysis of irregular items affecting operating or gross margins including inventory, payables and taxes. |
· |
poor corporate governance or significant related party transactions; |
· |
heavy insider selling; and |
· |
unique competitive challenges that might make for a more compelling short position. |
· |
Opportunity Set – Stocks are assessed on individual merits and relative to both existing holdings and other stocks competing for inclusion. |
· |
Valuation/Catalyst – Valuation metrics are used to a lesser extent in assessing short positions. But, qualifying the impact of red flags on the reported earnings to determine the magnitude of the differences between the reported earnings per share and an estimate of the sustainability of earnings is very important. |
· |
Technical Factors – Technical factors are considered in conjunction with fundamental factors to determine the appropriate initial weighting at the entry point into the portfolio. Technical analysis is important to a short portfolio, as the Sub-Advisor generally avoids initiating short positions in stocks making all-time price highs, 52-week highs in price, or in strong upward trends which may capture the attention of short-term and momentum traders. In general, the Sub-Advisor seeks to identify stocks with prices beginning to under-perform the market, show distribution or stall its price ascent prior to inclusion into the Fund’s portfolio. |
· |
the Fund makes distributions; |
· |
you sell Fund shares; and |
· |
you purchase or redeem Creation Units (authorized participants only). |
· |
The Fund intends to distribute, at least annually, substantially all of its net investment income and net capital gains income. |
· |
The Fund’s distributions from income and net short-term capital gains will generally be taxed to you as ordinary income. For non-corporate shareholders, dividends reported by the Fund as qualified dividend income are generally eligible for reduced tax rates applicable to long-term capital gains, provided holding period and other requirements are met. Qualified dividend income generally is income derived from dividends paid by U.S. corporations or certain foreign corporations that are either incorporated in a U.S. possession or eligible for tax benefits under certain U.S. income tax treaties. In addition, dividends that the Fund receives in respect of stock of certain foreign corporations may be qualified dividend income if that stock is readily tradable on an established U.S. securities market. For such dividends to be taxed as qualified dividend income to a non-corporate shareholder, the Fund must satisfy certain holding period requirements with respect to the underlying stock and the non-corporate shareholder must satisfy holding period requirements with respect to his or her ownership of the Fund’s shares. Holding periods may be suspended for these purposes for stock that is hedged. In general, dividends received by the Fund from an ETP taxable as a RIC may be distributed and reported as qualified dividend income by the Fund to the extent the dividend distributions are distributed and reported as qualified dividend income by the ETP. The Fund’s investment strategies will significantly limit its ability to distribute dividends eligible for treatment as qualified dividend income. |
· |
Corporate shareholders may be entitled to a dividends received deduction for the portion of dividends they receive that are attributable to dividends received by the Fund (directly or in some cases indirectly) from U.S. corporations, subject to certain limitations. The Fund’s investment strategies will significantly limit its ability to distribute dividends eligible for the dividends received deduction for corporate shareholders. |
· |
Dividends and distributions are generally taxable to you whether you receive them in cash or reinvest them in additional shares. |
· |
In general, your distributions are subject to federal income tax for the year in which they are paid. However, distributions paid in January but declared by the Fund in October, November or December of the previous year may be taxable to you in the previous year. |
· |
Shortly after the close of each calendar year, the Fund (or your broker) will inform you of the amount of your ordinary income dividends, qualified dividend income, and net capital gain distributions received from the Fund. |
· |
You may wish to avoid investing in the Fund shortly before a dividend or other distribution, because such a distribution will generally be taxable even though it may economically represent a return of a portion of your investment. |
AdvisorShares Ranger Equity Bear ETF (1) | Years Ended June 30, | |||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Selected Data for a Share of Capital Stock Outstanding | ||||||||||||||||||||
Net Asset Value, Beginning of Year/Period | $ | 48.55 | $ | 63.84 | $ | 78.01 | $ | 85.65 | $ | 106.05 | ||||||||||
Investment Operations | ||||||||||||||||||||
Net Investment Income (Loss) (2) | (1.59 | ) | (0.64 | ) | 0.13 | (1.34 | ) | (2.00 | ) | |||||||||||
Net Realized and Unrealized Loss | (23.96 | ) | (14.55 | ) | (14.30 | ) | (6.30 | ) | (18.40 | ) | ||||||||||
Distributions of Net Realized Gains by other investment companies | 0.00 | (3) | — | — | — | — | ||||||||||||||
Net Decrease in Net Assets Resulting from Investment Operations (4) | (25.55 | ) | (15.19 | ) | (14.17 | ) | (7.64 | ) | (20.40 | ) | ||||||||||
Distributions from Net Investment Income | — | (0.10 | ) | — | — | — | ||||||||||||||
Total Distributions | — | (0.10 | ) | — | — | — | ||||||||||||||
Net Asset Value, End of Year/Period | $ | 23.00 | $ | 48.55 | $ | 63.84 | $ | 78.01 | $ | 85.65 | ||||||||||
Market Value, End of Year/Period | $ | 23.00 | $ | 48.50 | $ | 63.90 | $ | 77.80 | $ | 85.50 | ||||||||||
Total Return | ||||||||||||||||||||
Total Investment Return Based on Net Asset Value (5) | (52.62 | )% | (23.79 | )% | (18.16 | )% | (8.92 | )% | (19.24 | )% | ||||||||||
Total Investment Return Based on Market (5) | (52.58 | )% | (23.94 | )% | (17.87 | )% | (9.01 | )% | (19.42 | )% | ||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||
Net Assets, End of Year/Period (000’s omitted) | $ | 50,655 | $ | 162,019 | $ | 135,814 | $ | 133,587 | $ | 174,504 | ||||||||||
Ratio to Average Net Assets of: | ||||||||||||||||||||
Expenses, net of expense waivers and reimbursements (6) | 4.90 | % (7) | 3.10 | % (7) | 2.94 | % (7) | 2.52 | % (7) | 2.67 | % (7) | ||||||||||
Expenses, prior to expense waivers and reimbursements (6) | 4.90 | % (7) | 3.10 | % (7) | 2.94 | % (7) | 2.52 | % (7) | 2.67 | % (7) | ||||||||||
Net Investment Income (Loss) (6) | (4.49 | )% | (1.07 | )% | 0.18 | % | (1.63 | )% | (2.15 | )% | ||||||||||
Portfolio Turnover Rate (8) | 669 | % | 593 | % | 338 | % | 301 | % | 245 | % |
(1) | After the close of business on February 5, 2021, the Fund’s applicable class underwent a reverse stock split. The per share data presented here has been retroactively adjusted to reflect this split. See Note 1 of the Notes to Financial Statements. |
(2) | Based on average shares outstanding. |
(3) | Amount represents less than $0.005 or 0.005%. |
(4) | The amount shown for a share distribution throughout the period may not correlate with the Statement 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. |
(5) | 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. |
(6) | Ratios of periods of less than one year have been annualized. Excludes expenses incurred by the underlying investments in other funds. |
(7) | The expense ratio includes interest and dividend expenses on short sales of 3.14%, 1.42%, 1.22%, 0.84%, and 1.03% for the periods ended June 30, 2021, June 30, 2020, June 30, 2019, June 30, 2018, and June 30, 2017, respectively. |
(8) | 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. |
Advisor | AdvisorShares Investments, LLC 4800 Montgomery Lane, Suite 150 Bethesda, Maryland 20814 |
Sub-Advisor | Ranger Alternative Management, L.P. 2828 N. Harwood Street, Suite 1900 Dallas, Texas 75201 |
Distributor | Foreside Fund Services, LLC Three Canal Plaza, Suite 100 Portland, Maine 04101 |
Legal Counsel | Morgan, Lewis & Bockius LLP 1111 Pennsylvania Avenue, NW Washington, DC 20004 |
Administrator, Custodian & Transfer Agent | The Bank of New York Mellon 240 Greenwich Street New York, New York 10286 |
NYSE Arca Ticker: |
Managed by: AdvisorShares Investments, LLC |
ADVISORSHARES TRUST 4800 Montgomery Lane ● Suite 150 Bethesda, Maryland 20814 www.advisorshares.com 877.843.3831 Prospectus dated November 1, 2021 This Prospectus provides important information about the AdvisorShares Restaurant ETF, a series of AdvisorShares Trust. Before you invest, please read this Prospectus and the Fund’s Statement of Additional Information carefully and keep them for future reference. The shares of the Fund have not been approved or disapproved by the U.S. Securities and Exchange Commission nor has the U.S. Securities and Exchange Commission passed upon the accuracy or adequacy of this Prospectus. Any representation to the contrary is a criminal offense. |
SHAREHOLDER FEES (fees paid directly from your investment) | |
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment) | |
MANAGEMENT FEES | |
DISTRIBUTION (12b-1) FEES | |
OTHER EXPENSES | |
TOTAL ANNUAL OPERATING EXPENSES | |
FEE WAIVER/EXPENSE REIMBURSEMENT * | - |
TOTAL ANNUAL OPERATING EXPENSES AFTER FEE WAIVER/EXPENSE REIMBURSEMENT |
* | AdvisorShares Investments, LLC (the “Advisor”) has contractually agreed to waive its fees and/or reimburse expenses to keep net expenses (excluding amounts payable pursuant to any plan adopted in accordance with Rule 12b-1, interest expense, taxes, brokerage commissions, acquired fund fees and expenses, other expenditures which are capitalized in accordance with generally accepted accounting principles, and extraordinary expenses) from exceeding 0.99% of the Fund’s average daily net assets |
1 YEAR | 3 YEARS | 5 YEARS | 10 YEARS | |
AdvisorShares Restaurant ETF | $ | $ | $ | $ |
1 |
2 |
3 |
Name | Title |
AdvisorShares Investments, LLC | Advisor |
4 |
Name and Title | Length of Service with the Advisor |
Dan S. Ahrens, Managing Director, Chief Operating Officer & Portfolio Manager | since November 2008 |
5 |
6 |
7 |
8 |
9 |
10 |
11 |
12 |
● | the Fund makes distributions; |
● | you sell Fund shares; and |
● | you purchase or redeem Creation Units (authorized participants only). |
● | The Fund intends to distribute, at least annually, substantially all of its net investment income and net capital gains income. |
● | The Fund’s distributions from income and net short-term capital gains will generally be taxed to you as ordinary income. For non-corporate shareholders, dividends reported by the Fund as qualified dividend income are generally eligible for reduced tax rates applicable to long-term capital gains, provided holding period and other requirements are met. Qualified dividend income generally is income derived from dividends paid by U.S. corporations or certain foreign corporations that are either incorporated in a U.S. possession or eligible for tax benefits under certain U.S. income tax treaties. In addition, dividends that the Fund receives in respect of stock of certain foreign corporations may be qualified dividend income if that stock is readily tradable on an established U.S. securities market. For such dividends to be taxed as qualified dividend income to a non-corporate shareholder, the Fund must satisfy certain holding period requirements with respect to the underlying stock and the non-corporate shareholder must satisfy holding period requirements with respect to his or her ownership of the Fund’s shares. Holding periods may be suspended for these purposes for stock that is hedged. |
13 |
● | Corporate shareholders may be entitled to a dividends-received deduction for the portion of dividends they receive that are attributable to dividends received by the Fund from U.S. corporations, subject to certain limitations. The Fund’s investment strategies may limit its ability to distribute dividends eligible for the dividends received deduction for corporate shareholders. |
● | Taxes on distributions of capital gains (if any) are determined by how long the Fund owned the investments that generated them, rather than how long a shareholder has owned their shares. Sales of assets held by the Fund for more than one year generally result in long-term capital gains and losses, and sales of assets held by the Fund for one year or less generally result in short-term capital gains and losses. Distributions from the Fund’s short-term capital gains are generally taxable as ordinary income. Any distributions of net capital gain (the excess of the Fund’s net long-term capital gains over its net short-term capital losses) that you receive from the Fund generally are taxable as long-term capital gains regardless of how long you have owned your shares. Long-term capital gains are taxed to non-corporate shareholders at reduced tax rates. |
● | Dividends and distributions are generally taxable to you whether you receive them in cash or reinvest them in additional shares. |
● | In general, your distributions are subject to federal income tax for the year in which they are paid. However, distributions paid in January but declared by the Fund in October, November or December of the previous year may be taxable to you in the previous year. |
● | Shortly after the close of each calendar year, the Fund (or your broker) will inform you of the amount of your ordinary income dividends, qualified dividend income, foreign tax credits and net capital gain distributions received from the Fund. |
● | You may wish to avoid investing in the Fund shortly before a dividend or other distribution, because such a distribution will generally be taxable even though it may economically represent a return of a portion of your investment. |
14 |
15 |
AdvisorShares Restaurant ETF | For the period April 20, 2021* to June 30, 2021 | |||
Selected Data for a Share of Capital Stock Outstanding | ||||
Net Asset Value, Beginning of Year/Period | $ | 24.69 | ||
Investment Operations | ||||
Net Investment Income (1) | (0.00 | ) (2) | ||
Net Realized and Unrealized Loss | (0.25 | ) | ||
Net Decrease in Net Assets Resulting from Investment Operations (3) | (0.25 | ) | ||
Net Asset Value, End of Year/Period | $ | 24.44 | ||
Market Value, End of Year/Period | $ | 24.44 | ||
Total Return | ||||
Total Investment Return Based on Net Asset Value (4) | (1.01 | )% | ||
Total Investment Return Based on Market (4) | (1.01 | )% | ||
Ratios/Supplemental Data | ||||
Net Assets, End of Year/Period (000’s omitted) | $ | 5,988 | ||
Ratio to Average Net Assets of: | ||||
Expenses, net of expense waivers and reimbursements (5) | 0.99 | % | ||
Expenses, prior to expense waivers and reimbursements (5) | 7.93 | % | ||
Net Investment Loss (5) | (0.03 | )% | ||
Portfolio Turnover Rate (6) | 26 | % |
* | Commencement of operations. |
(1) | Based on average shares outstanding. |
(2) | Amount represents less than $0.005 or 0.005%. |
(3) | The amount shown for a share distribution throughout the period may not correlate with the Statement 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. |
(4) | 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. |
(5) | Ratios of periods of less than one year have been annualized. Excludes expenses incurred by the underlying investments in other funds. |
(6) | 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. |
16 |
Advisor | AdvisorShares Investments, LLC 4800 Montgomery Lane, Suite 150 Bethesda, Maryland 20814 |
Distributor | Foreside Fund Services, LLC Three Canal Plaza, Suite 100 Portland, Maine 04101 |
Legal Counsel | Morgan, Lewis & Bockius LLP 1111 Pennsylvania Avenue, NW Washington, DC 20004 |
Administrator, Custodian & Transfer Agent | The Bank of New York Mellon 240 Greenwich Street New York, New York 10286 |
17 |
Sub-advised by: ChangePath, LLC |
ADVISORSHARES TRUST 4800 Montgomery Lane ● Suite 150 Bethesda, Maryland 20814 www.advisorshares.com 877.843.3831 Prospectus dated November 1, 2021 |
SHAREHOLDER FEES (fees paid directly from your investment) | |
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment) | |
MANAGEMENT FEES | |
DISTRIBUTION (12b-1) FEES | |
OTHER EXPENSES | |
ACQUIRED FUND FEES AND EXPENSES (a) | |
TOTAL ANNUAL OPERATING EXPENSES | |
FEE WAIVER/EXPENSE REIMBURSEMENT (b) | - |
TOTAL ANNUAL OPERATING EXPENSES AFTER FEE WAIVER/EXPENSE REIMBURSEMENT |
(a) | Total Annual Operating Expenses and Total Annual Operating Expenses After Fee Waiver/Expense Reimbursement in this fee table may not correlate to the expense ratios in the Fund’s financial highlights (and the Fund’s financial statements) because the financial highlights include only the Fund’s direct operating expenses and do not include Acquired Fund Fees and Expenses, which represent the Fund’s pro rata share of the fees and expenses of the exchange-traded funds (each, an “ETF”) in which it invests. |
(b) | AdvisorShares Investments, LLC (the “Advisor”) has contractually agreed to waive its fees and/or reimburse expenses to keep net expenses (excluding amounts payable pursuant to any plan adopted in accordance with Rule 12b-1, interest expense, taxes, brokerage commissions, acquired fund fees and expenses, other expenditures which are capitalized in accordance with generally accepted accounting principles, and extraordinary expenses) from exceeding 1.85% of the Fund’s average daily net assets |
1 |
1 YEAR | 3 YEARS | 5 YEARS | 10 YEARS | |
AdvisorShares STAR Global Buy-Write ETF | $ | $ | $ | $ |
2 |
● | Options Risk . Writing and purchasing call and put options are highly specialized activities and entail greater than ordinary investment risks. The value of the Fund’s positions in options fluctuates in response to changes in the value of the underlying security. The Fund also risks losing all or part of the cash paid for purchasing call and put options. Fund assets covering written options cannot be sold while the option is outstanding, unless replaced with similar assets. As a result, there is a possibility that segregation of a large percentage of the Fund’s assets could affect its portfolio management as well as the ability of the Fund to meet other current obligations. |
3 |
● | Commodity Risk . An ETP’s investment in commodities or commodity-linked derivative instruments may subject the ETP (and indirectly the Fund) to greater volatility than investments in traditional securities, particularly if the instruments involve leverage. The value of commodities and commodity-linked derivative instruments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments. |
● | Concentration Risk . An ETP may, at various times, concentrate in the securities or commodities of a particular industry, group of industries, market sector or geographic region. To the extent an ETP’s investments are so concentrated, the Fund may be adversely affected by political, regulatory, and market conditions affecting the particular industry, group of industries, market sector or geographic region. |
● | Counterparty Risk . Commodity-linked derivatives, repurchase agreements, swap agreements and other forms of financial instruments that involve counterparties subject an ETP to the risk that the counterparty could default on its obligations under the agreement, either through the counterparty’s bankruptcy or failure to perform its obligations. |
● | Credit Risk . Certain of the ETPs are subject to the risk that a decline in the credit quality of a portfolio investment or a counterparty to a portfolio investment could cause the ETP’s share price to fall. The ETPs could lose money if the issuer or guarantor of a portfolio investment or the counterparty to a derivatives contract fails to make timely principal or interest payments or otherwise honor its obligations. |
● | Emerging Markets Risk . There is an increased risk of price volatility associated with an ETP’s investments in, or exposure to, emerging market countries, which may be magnified by currency fluctuations relative to the U.S. dollar. |
● | Equity Risk . The prices of equity securities in which an ETP invests or is exposed to rise and fall daily. These price movements may result from factors affecting individual issuers, industries or the securities market as a whole. |
● | Foreign Currency Risk . Currency movements may negatively impact the value of an ETP portfolio security even when there is no change in the value of the security in the issuer’s home country. Certain ETPs may not hedge against the risk of currency exchange rate fluctuations, while other ETPs may if there is volatility in currency exchange rates. |
● | Foreign Securities Risk . An ETP’s investments in, or exposure to, foreign issuers involve certain risks including, but not limited to, risks of adverse changes in foreign economic, political, regulatory and other conditions, or changes in currency exchange rates or exchange control regulations (including limitations on currency movements and exchanges). In certain countries, legal remedies available to investors may be more limited than those available with respect to investments in the United States. In addition, the securities of some foreign companies may be less liquid and, at times, more volatile than securities of comparable U.S. companies. |
● | Large-Capitalization Risk . An ETP may invest in large-capitalization companies. Returns on investments in stocks of large U.S. companies could trail the returns on investments in stocks of small- and mid-cap companies or the market as a whole. |
● | Mid-Capitalization Risk . An ETP may invest in mid-capitalization companies. Mid-cap companies may be more volatile and more likely than large-cap companies to have limited product lines, markets, or financial resources, and to depend on a few key employees. Returns on investments in stocks of mid-cap companies could trail the returns on investments in stocks of large-cap companies or the equity market as a whole. |
4 |
● | Small-Capitalization Risk . An ETP may invest in small-capitalization companies. Small-cap companies may be more vulnerable than larger, more established organizations to adverse business or economic developments. In particular, small-cap companies may have limited product lines, markets, and financial resources and may be dependent upon a relatively small management group. These securities may be listed on an exchange or trade over-the-counter, and may or may not pay dividends. During a period when the performance of small-cap stocks falls behind that of other types of investments, such as large-cap stocks, the ETP’s performance could be adversely affected. |
● | Tracking Error Risk. Tracking error can arise due to factors such as the effect of transaction fees and expenses incurred by an ETP, changes in composition of the ETP’s benchmark, and the ability of the ETP manager or sponsor to successfully implement his or her investment strategy. |
5 |
Return | Quarter/ Ye ar | ||
Highest Return | |||
Lowest Return | - |
ADVISORSHARES STAR GLOBAL BUY-WRITE ETF | 1 Year | 5 Years | Since Inception ( | |
Return After Taxes on Distributions | ||||
Return After Taxes on Distributions and Sale of Fund Shares | ||||
MSCI All Country World Index (Net) (reflects no deduction for fees, expenses, or taxes) |
6 |
Name | Title |
AdvisorShares Investments, LLC | Advisor |
ChangePath, LLC | Sub-Advisor |
Name and Title | Length of Service with Sub-Advisor |
Kenneth R. Hyman, SVP Business Development | since October 2020 |
Robert Kellogg, CFA, Investment Officer and Head of Financial Planning | since December 2018 |
Rebecca M. Valdez, Portfolio Manager | since October 2020 |
7 |
8 |
9 |
10 |
11 |
12 |
13 |
14 |
15 |
16 |
17 |
18 |
● | the Fund makes distributions; |
● | you sell Fund shares; and |
● | you purchase or redeem Creation Units (authorized participants only). |
● | The Fund intends to distribute, at least annually, substantially all of its net investment income and net capital gains income. |
● | The Fund’s distributions from income and net short-term capital gains will generally be taxed to you as ordinary income. For non-corporate shareholders, dividends reported by the Fund as qualified dividend income are generally eligible for reduced tax rates applicable to long-term capital gains, provided holding period and other requirements are met. Qualified dividend income generally is income derived from dividends paid by U.S. corporations or certain foreign corporations that are either incorporated in a U.S. possession or eligible for tax benefits under certain U.S. income tax treaties. In addition, dividends that the Fund receives in respect of stock of certain foreign corporations may be qualified dividend income if that stock is readily tradable on an established U.S. securities market. For such dividends to be taxed as qualified dividend income to a non-corporate shareholder, the Fund must satisfy certain holding period requirements with respect to the underlying stock and the non-corporate shareholder must satisfy holding period requirements with respect to his or her ownership of the Fund’s shares. Holding periods may be suspended for these purposes for stock that is hedged. In general, dividends received by the Fund from an ETP taxable as a RIC may be distributed and reported as qualified dividend income by the Fund to the extent the dividend distributions are distributed and reported as qualified dividend income by the ETP. The Fund’s investment strategies may limit its ability to distribute dividends eligible for treatment as qualified dividend income. |
● | Corporate shareholders may be entitled to a dividends received deduction for the portion of dividends they receive that are attributable to dividends received by the Fund (directly or in some cases indirectly) from U.S. corporations, subject to certain limitations. The Fund’s investment strategies may limit its ability to distribute dividends eligible to for the dividends received deduction for corporate shareholders. |
● | Taxes on distributions of capital gains (if any) are determined by how long the Fund owned the investments that generated them, rather than how long a shareholder has owned their shares. Sales of assets held by the Fund for more than one year generally result in long-term capital gains and losses, and sales of assets held by the Fund for one year or less generally result in short-term capital gains and losses. Distributions from the Fund’s short-term capital gains are generally taxable as ordinary income. Any distributions of net capital gain (the excess of the Fund’s net long-term capital gains over its net short-term capital losses) that you receive from the Fund generally are taxable as long-term capital gains regardless of how long you have owned your shares. Long-term capital gains are taxed to non-corporate shareholders at reduced tax rates. |
● | Dividends and distributions are generally taxable to you whether you receive them in cash or reinvest them in additional shares. |
● | In general, your distributions are subject to federal income tax for the year in which they are paid. However, distributions paid in January but declared by the Fund in October, November or December of the previous year may be taxable to you in the previous year. |
● | Shortly after the close of each calendar year, the Fund (or your broker) will inform you of the amount of your ordinary income dividends, qualified dividend income, foreign tax credits, and net capital gain distributions received from the Fund. |
● | You may wish to avoid investing in the Fund shortly before a dividend or other distribution, because such a distribution will generally be taxable even though it may economically represent a return of a portion of your investment. |
19 |
20 |
21 |
AdvisorShares STAR Global Buy-Write ETF | Years Ended June 30, | |||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Selected Data for a Share of Capital Stock Outstanding | ||||||||||||||||||||
Net Asset Value, Beginning of Year/Period | $ | 32.20 | $ | 32.28 | $ | 30.99 | $ | 29.13 | $ | 26.77 | ||||||||||
Investment Operations | ||||||||||||||||||||
Net Investment Income (Loss) (1) | (0.16 | ) | 0.09 | 0.13 | 0.11 | 0.09 | ||||||||||||||
Net Realized and Unrealized Gain (Loss) | 7.89 | (0.02 | ) | 1.29 | 1.75 | 2.48 | ||||||||||||||
Distributions of Net Realized Gains by other investment companies | 0.00 | (6) | — | — | 0.00 | (6) | 0.01 | |||||||||||||
Net Increase in Net Assets Resulting from Investment Operations (2) | 7.73 | 0.07 | 1.42 | 1.86 | 2.58 | |||||||||||||||
Distributions from Net Investment Income | (0.10 | ) | (0.15 | ) | (0.13 | ) | — | (0.22 | ) | |||||||||||
Total Distributions | (0.10 | ) | (0.15 | ) | (0.13 | ) | — | (0.22 | ) | |||||||||||
Net Asset Value, End of Year/Period | $ | 39.83 | $ | 32.20 | $ | 32.28 | $ | 30.99 | $ | 29.13 | ||||||||||
Market Value, End of Year/Period | $ | 39.83 | $ | 32.25 | $ | 32.19 | $ | 31.01 | $ | 29.13 | ||||||||||
Total Return | ||||||||||||||||||||
Total Investment Return Based on Net Asset Value (3) | 24.04 | % | 0.20 | % | 4.62 | % | 6.41 | % | 9.70 | % | ||||||||||
Total Investment Return Based on Market (3) | 23.86 | % | 0.63 | % | 4.27 | % | 6.45 | % | 9.74 | % | ||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||
Net Assets, End of Year/Period (000’s omitted) | $ | 18,323 | $ | 12,882 | $ | 14,527 | $ | 17,047 | $ | 17,477 | ||||||||||
Ratio to Average Net Assets of: (7) | ||||||||||||||||||||
Expenses, net of expense waivers and reimbursements (4) | 1.85 | % | 1.85 | % | 1.85 | % | 1.85 | % | 1.85 | % | ||||||||||
Expenses, prior to expense waivers and reimbursements (4) | 2.48 | % | 2.20 | % | 2.34 | % | 2.18 | % | 2.14 | % | ||||||||||
Net Investment Income (Loss) (4) | (0.43 | )% | 0.26 | % | 0.43 | % | 0.38 | % | 0.32 | % | ||||||||||
Portfolio Turnover Rate (5) | 55 | % | 47 | % | 49 | % | 12 | % | 26 | % |
(1) | Based on average shares outstanding. |
(2) | The amount shown for a share distribution throughout the period may not correlate with the Statement 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. |
(3) | 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. |
(4) | Ratios of periods of less than one year have been annualized. Excludes expenses incurred by the underlying investments in other funds. |
(5) | Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as in-kind creations or redemptions of the Fund’s capital shares. |
(6) | Amount represents less than $0.005 or 0.005%. |
(7) | The Fund invests in other funds and indirectly bear their proportionate shares of fees and expenses incurred by the funds in which the Fund is invested. These ratios do not include these indirect fees and expenses. |
22 |
Advisor | AdvisorShares Investments, LLC 4800 Montgomery Lane, Suite 150 Bethesda, Maryland 20814 |
Sub-Advisor | ChangePath, LLC 11460 Tomahawk Creek Parkway, Suite 200 Leawood, Kansas 66211 |
Distributor | Foreside Fund Services, LLC Three Canal Plaza, Suite 100 Portland, Maine 04101 |
Legal Counsel | Morgan, Lewis & Bockius LLP 1111 Pennsylvania Avenue, NW Washington, DC 20004 |
Administrator, Custodian & Transfer Agent | The Bank of New York Mellon 240 Greenwich Street New York, New York 10286 |
23 |
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NYSE Arca Ticker: |
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Managed by: AdvisorShares Investments, LLC |
ADVISORSHARES TRUST 4800 Montgomery Lane ● Suite 150 Bethesda, Maryland 20814 www.advisorshares.com 877.843.3831 Prospectus dated November 1, 2021 This Prospectus provides important information about the AdvisorShares Vice ETF, a series of AdvisorShares Trust. Before you invest, please read this Prospectus and the Fund’s Statement of Additional Information carefully and keep them for future reference. The shares of the Fund have not been approved or disapproved by the U.S. Securities and Exchange Commission nor has the U.S. Securities and Exchange Commission passed upon the accuracy or adequacy of this Prospectus. Any representation to the contrary is a criminal offense. |
SHAREHOLDER FEES (fees paid directly from your investment) | |
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment) | |
MANAGEMENT FEES | |
DISTRIBUTION (12b-1) FEES | |
OTHER EXPENSES | |
TOTAL ANNUAL OPERATING EXPENSES | |
FEE WAIVER/EXPENSE REIMBURSEMENT* | - |
TOTAL ANNUAL OPERATING EXPENSES AFTER FEE WAIVER/EXPENSE REIMBURSEMENT |
* | AdvisorShares Investments, LLC (the “Advisor”) has contractually agreed to waive its fees and/or reimburse expenses to keep net expenses (excluding amounts payable pursuant to any plan adopted in accordance with Rule 12b-1, interest expense, taxes, brokerage commissions, acquired fund fees and expenses, other expenditures which are capitalized in accordance with generally accepted accounting principles, and extraordinary expenses) from exceeding 0.99% of the Fund’s average daily net assets |
1 YEAR | 3 YEARS | 5 YEARS | 10 YEARS | |
AdvisorShares Vice ETF | $ | $ | $ | $ |
Return | Quarter/Year | ||
- |
ADVISORSHARES VICE ETF | 1 Year | Since Inception ( |
Return Before Taxes Based on NAV | ||
Return After Taxes on Distributions | ||
Return After Taxes on Distributions and Sale of Fund Shares | ||
S&P 500 Index (reflects no deduction for fees, expenses, or taxes) |
Name | Title |
AdvisorShares Investments, LLC | Advisor |
Name and Title | Length of Service with the Advisor |
Dan S. Ahrens, Managing Director, Chief Operating Officer & Portfolio Manager | since November 2008 |
● | the Fund makes distributions; |
● | you sell Fund shares; and |
● | you purchase or redeem Creation Units (authorized participants only). |
● | The Fund intends to distribute, at least annually, substantially all of its net investment income and net capital gains income. |
● | The Fund’s distributions from income and net short-term capital gains will generally be taxed to you as ordinary income. For non-corporate shareholders, dividends reported by the Fund as qualified dividend income are generally eligible for reduced tax rates applicable to long-term capital gains, provided holding period and other requirements are met. Qualified dividend income generally is income derived from dividends paid by U.S. corporations or certain foreign corporations that are either incorporated in a U.S. possession or eligible for tax benefits under certain U.S. income tax treaties. In addition, dividends that the Fund receives in respect of stock of certain foreign corporations may be qualified dividend income if that stock is readily tradable on an established U.S. securities market. For such dividends to be taxed as qualified dividend income to a non-corporate shareholder, the Fund must satisfy certain holding period requirements with respect to the underlying stock and the non-corporate shareholder must satisfy holding period requirements with respect to his or her ownership of the Fund’s shares. Holding periods may be suspended for these purposes for stock that is hedged. |
● | Corporate shareholders may be entitled to a dividends received deduction for the portion of dividends they receive that are attributable to dividends received by the Fund from U.S. corporations, subject to certain limitations. |
● | Taxes on distributions of capital gains (if any) are determined by how long the Fund owned the investments that generated them, rather than how long a shareholder has owned their shares. Sales of assets held by the Fund for more than one year generally result in long-term capital gains and losses, and sales of assets held by the Fund for one year or less generally result in short-term capital gains and losses. Distributions from the Fund’s short-term capital gains are generally taxable as ordinary income. Any distributions of net capital gain (the excess of the Fund’s net long-term capital gains over its net short-term capital losses) that you receive from the Fund generally are taxable as long-term capital gains regardless of how long you have owned your shares. Long-term capital gains are taxed to non-corporate shareholders at reduced tax rates. |
● | Dividends and distributions are generally taxable to you whether you receive them in cash or reinvest them in additional shares. |
● | In general, your distributions are subject to federal income tax for the year in which they are paid. However, distributions paid in January but declared by the Fund in October, November or December of the previous year may be taxable to you in the previous year. |
● | Shortly after the close of each calendar year, the Fund (or your broker) will inform you of the amount of your ordinary income dividends, qualified dividend income, foreign tax credits and net capital gain distributions received from the Fund. |
● | You may wish to avoid investing in the Fund shortly before a dividend or other distribution, because such a distribution will generally be taxable even though it may economically represent a return of a portion of your investment. |
AdvisorShares Vice ETF | Years Ended June 30, | For the period December 12, 2017* to June 30, 2018 | ||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||
Selected Data for a Share of Capital Stock Outstanding | ||||||||||||||||
Net Asset Value, Beginning of Year/Period | $ | 22.81 | $ | 25.11 | $ | 25.60 | $ | 25.00 | ||||||||
Investment Operations | ||||||||||||||||
Net Investment Income (1) | 0.19 | 0.42 | 0.45 | 0.23 | ||||||||||||
Net Realized and Unrealized Gain (Loss) | 13.44 | (2.10 | ) | (0.57 | ) | 0.41 | ||||||||||
Net Increase (Decrease) in Net Assets Resulting from Investment Operations (2) | 13.63 | (1.68 | ) | (0.12 | ) | 0.64 | ||||||||||
Distributions from Net Investment Income | (0.37 | ) | (0.62 | ) | (0.37 | ) | (0.04 | ) | ||||||||
Total Distributions | (0.37 | ) | (0.62 | ) | (0.37 | ) | (0.04 | ) | ||||||||
Net Asset Value, End of Year/Period | $ | 36.07 | $ | 22.81 | $ | 25.11 | $ | 25.60 | ||||||||
Market Value, End of Year/Period | $ | 36.06 | $ | 22.80 | $ | 25.12 | $ | 25.68 | ||||||||
Total Return | ||||||||||||||||
Total Investment Return Based on Net Asset Value (3) | 59.98 | % | (6.91 | )% | (0.22 | )% | 2.58 | % | ||||||||
Total Investment Return Based on Market (3) | 60.05 | % | (6.99 | )% | (0.50 | )% | 2.89 | % | ||||||||
Ratios/Supplemental Data | ||||||||||||||||
Net Assets, End of Year/Period (000’s omitted) | $ | 13,889 | $ | 9,126 | $ | 13,183 | $ | 12,800 | ||||||||
Ratio to Average Net Assets of: | ||||||||||||||||
Expenses, net of expense waivers and reimbursements (4) | 0.99 | % | 0.90 | % | 0.75 | % | 0.75 | % | ||||||||
Expenses, prior to expense waivers and reimbursements (4) | 1.71 | % | 1.59 | % | 1.43 | % | 2.18 | % | ||||||||
Net Investment Income (4) | 0.63 | % | 1.77 | % | 1.79 | % | 1.64 | % | ||||||||
Portfolio Turnover Rate (5) | 125 | % | 41 | % | 76 | % | 25 | % |
* |
Commencement of operations. |
(1) |
Based on average shares outstanding. |
(2) |
The amount shown for a share distribution throughout the period may not correlate with the Statement 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. |
(3) |
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. |
(4) |
Ratios of periods of less than one year have been annualized. Excludes expenses incurred by the underlying investments in other funds. |
(5) |
Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as in-kind creations or redemptions of the Fund’s capital shares . |
Advisor |
AdvisorShares Investments, LLC 4800 Montgomery Lane, Suite 150
Bethesda, Maryland 20814
|
Distributor |
Foreside Fund Services, LLC Three Canal Plaza, Suite 100
Portland, Maine 04101
|
Legal Counsel |
Morgan, Lewis & Bockius LLP 1111 Pennsylvania Avenue, NW
Washington, DC 20004
|
Administrator, Custodian & Transfer Agent |
The Bank of New York Mellon 240 Greenwich Street
New York, New York 10286
|
Fund |
Advisor/Sub-Advisor |
AdvisorShares Alpha DNA Equity Sentiment ETF |
AdvisorShares Investments, LLC/
Alpha DNA Investment Management, LLC
|
AdvisorShares Dorsey Wright Alpha Equal Weight ETF |
AdvisorShares Investments, LLC |
AdvisorShares Dorsey Wright FSM All Cap World ETF |
AdvisorShares Investments, LLC |
AdvisorShares Dorsey Wright FSM US Core ETF |
AdvisorShares Investments, LLC |
AdvisorShares Dorsey Wright ADR ETF |
AdvisorShares Investments, LLC/
Dorsey, Wright & Associates, LLC
|
AdvisorShares Dorsey Wright Micro-Cap ETF |
AdvisorShares Investments, LLC/
Dorsey, Wright & Associates, LLC
|
AdvisorShares Dorsey Wright Short ETF |
AdvisorShares Investments, LLC/
Dorsey, Wright & Associates, LLC
|
AdvisorShares DoubleLine Value Equity ETF |
AdvisorShares Investments, LLC/
DoubleLine Equity LP
|
AdvisorShares Focused Equity ETF |
AdvisorShares Investments, LLC |
AdvisorShares Hotel ETF |
AdvisorShares Investments, LLC |
AdvisorShares Newfleet Multi-Sector Income ETF |
AdvisorShares Investments, LLC/
Newfleet Asset Management, LLC
|
Fund |
Advisor/Sub-Advisor |
AdvisorShares North Square McKee Core Reserves ETF |
AdvisorShares Investments, LLC/
CSM Advisors, LLC
|
AdvisorShares North Square McKee ESG Core Bond ETF |
AdvisorShares Investments, LLC/
CSM Advisors, LLC
|
AdvisorShares Pure Cannabis ETF |
AdvisorShares Investments, LLC |
AdvisorShares Pure US Cannabis ETF |
AdvisorShares Investments, LLC |
AdvisorShares Q Dynamic Growth ETF |
AdvisorShares Investments, LLC/
ThinkBetter, LLC
|
AdvisorShares Q Portfolio Blended Allocation ETF |
AdvisorShares Investments, LLC/
ThinkBetter, LLC
|
AdvisorShares Ranger Equity Bear ETF |
AdvisorShares Investments, LLC/
Ranger Alternative Management, L.P.
|
AdvisorShares Restaurant ETF |
AdvisorShares Investments, LLC |
AdvisorShares STAR Global Buy-Write ETF |
AdvisorShares Investments, LLC/
ChangePath, LLC
|
AdvisorShares Vice ETF |
AdvisorShares Investments, LLC |
● | Inflation . Exchange rates change to reflect changes in a currency’s buying power. Different countries experience different inflation rates due to different monetary and fiscal policies, different product and labor market conditions, and a host of other factors. |
● | Trade Deficits . Countries with trade deficits tend to experience a depreciating currency. Inflation may be the cause of a trade deficit, making a country’s goods more expensive and less competitive and so reducing demand for its currency. |
● | Interest Rates . High interest rates may raise currency values in the short term by making such currencies more attractive to investors. However, since high interest rates are often the result of high inflation, long-term results may be the opposite. |
● | Budget Deficits and Low Savings Rates . Countries that run large budget deficits and save little of their national income tend to suffer a depreciating currency because they are forced to borrow abroad to finance their deficits. Payments of interest on this debt can inundate the currency markets with the currency of the debtor nation. Budget deficits also can indirectly contribute to currency depreciation if a government chooses inflationary measures to cope with its deficits and debts. |
● | Political Factors . Political instability in a country can cause a currency to depreciate. Demand for a certain currency may fall if a country appears a less desirable place in which to invest and do business. |
● | Government Control . Through their own buying and selling of currencies, the world’s central banks sometimes manipulate exchange rate movements. In addition, governments occasionally issue statements to influence people’s expectations about the direction of exchange rates, or they may instigate policies with an exchange rate target as the goal. The value of a Fund’s investments is calculated in U.S. dollars each day that the New York Stock Exchange (“NYSE”) is open for business. As a result, to the extent that a Fund’s assets are invested in instruments denominated in foreign currencies and the currencies appreciate relative to the U.S. dollar, the Fund’s NAV as expressed in U.S. dollars (and, therefore, the value of your investment) should increase. If the U.S. dollar appreciates relative to the other currencies, the opposite should occur. The currency-related gains and losses experienced by the Fund will be based on changes in the value of portfolio securities attributable to currency fluctuations only in relation to the original purchase price of such securities as stated in U.S. dollars. Gains or losses on shares of the Fund will be based on changes attributable to fluctuations in the NAV of such shares, expressed in U.S. dollars, in relation to the original U.S. dollar purchase price of the shares. The amount of appreciation or depreciation in the Fund’s assets also will be affected by the net investment income generated by the money market instruments in which the Fund invests and by changes in the value of the securities that are unrelated to changes in currency exchange rates. |
● | Common Stock. Common stock represents an equity or ownership interest in an issuer. In the event an issuer is liquidated or declares bankruptcy, the claims of owners of bonds and preferred stock take precedence over the claims of those who own common stock. |
● | Preferred Stock. Preferred stock represents an equity or ownership interest in an issuer that pays dividends at a specified rate and that has precedence over common stock in the payment of dividends. In the event an issuer is liquidated or declares bankruptcy, the claims of owners of bonds take precedence over the claims of those who own preferred and common stock. |
● | Warrants. Warrants are instruments that entitle the holder to buy an equity security at a specific price for a specific period of time. Changes in the value of a warrant do not necessarily correspond to changes in the value of its underlying security. The price of a warrant may be more volatile than the price of its underlying security, and a warrant may offer greater potential for capital appreciation as well as capital loss. Warrants do not entitle a holder to dividends or voting rights with respect to the underlying security and do not represent any rights in the assets of the issuing company. A warrant ceases to have value if it is not exercised prior to its expiration date. These factors can make warrants more speculative than other types of investments. |
● | Convertible Securities. Convertible securities are bonds, debentures, notes, preferred stocks or other securities that may be converted or exchanged (by the holder or by the issuer) into shares of the underlying common stock (or cash or securities of equivalent value) at a stated exchange ratio. A convertible security may also be called for redemption or conversion by the issuer after a particular date and under certain circumstances (including a specified price) established upon issue. If a convertible security held by a Fund is called for redemption or conversion, the Fund could be required to tender it for redemption, convert it into the underlying common stock, or sell it to a third-party. |
● | Small and Medium Capitalization Companies. Investing in equity securities of small and medium capitalization companies often involves greater risk than is customarily associated with investments in larger capitalization companies. This increased risk may be due to the greater business risks of smaller size, limited markets and financial resources, narrow product lines and frequent lack of depth of management. The securities of smaller companies are often traded in the over-the-counter market and even if listed on a national securities exchange may not be traded in volumes typical for that exchange. Consequently, the securities of smaller companies are less likely to be liquid, may have limited market stability, and may be subject to more abrupt or erratic market movements than securities of larger, more established growth companies or the market averages in general. |
● | Large Capitalization Companies. Investments in large capitalization companies may go in and out of favor based on market and economic conditions and may underperform other market segments. Some large capitalization companies may be unable to respond quickly to new competitive challenges, such as changes in technology and consumer tastes, and may not be able to attain the high growth rate of successful smaller companies, especially during extended periods of economic expansion. As such, returns on investments in stocks of large capitalization companies could trail the returns on investments in stocks of small and mid capitalization companies. |
● | Master Limited Partnerships (“MLPs”). MLPs are limited partnerships in which the ownership units are publicly traded. MLP units are registered with the SEC and are freely traded on a securities exchange or in the over-the-counter market. MLPs often own several properties or businesses (or own interests) that are related to real estate development and oil and gas industries, but they also may finance motion pictures, research and development and other projects. Generally, an MLP is operated under the supervision of one or more managing general partners. Limited partners are not involved in the day-to-day management of the partnership. |
● | Rights. A right is a privilege granted to existing shareholders of a corporation to subscribe to shares of a new issue of common stock before it is issued. Rights normally have a short life of usually two to four weeks, are freely transferable and entitle the holder to buy the new common stock at a lower price than the public offering price. An investment in rights may entail greater risks than certain other types of investments. Generally, rights do not carry the right to receive dividends or exercise voting rights with respect to the underlying securities, and they do not represent any rights in the assets of the issuer. In addition, their value does not necessarily change with the value of the underlying securities, and they cease to have value if they are not exercised on or before their expiration date. Investing in rights increases the potential profit or loss to be realized from the investment as compared with investing the same amount in the underlying securities. |
● | Investments in Foreign Equity Securities. A Fund may invest in the equity securities of foreign issuers, including the securities of foreign issuers in emerging countries. Emerging or developing markets exist in countries that are considered to be in the initial stages of industrialization. The risks of investing in these markets are similar to the risks of international investing in general, although the risks are greater in emerging and developing markets. Countries with emerging or developing securities markets tend to have economic structures that are less stable than countries with developed securities markets. This is because their economies may be based on only a few industries and their securities markets may trade a small number of securities. Prices on these exchanges tend to be volatile, and securities in these countries historically have offered greater potential for gain (as well as loss) than securities of companies located in developed countries. |
● | Duration. Duration is a measure of the expected change in value of a fixed income security for a given change in interest rates. For example, if interest rates changed by one percent, the value of a security having an effective duration of two years generally would vary by two percent. Duration takes the length of the time intervals between the present time and time that the interest and principal payments are scheduled, or in the case of a callable bond, expected to be received, and weighs them by the present values of the cash to be received at each future point in time. |
● | Creditor Liability and Participation on Creditors Committees. Generally, when a fund holds bonds or other similar fixed income securities of an issuer, the fund becomes a creditor of the issuer. If a Fund is a creditor of an issuer it, may be subject to challenges related to the securities that it holds, either in connection with the bankruptcy of the issuer or in connection with another action brought by other creditors of the issuer, shareholders of the issuer or the issuer itself. A Fund may from time to time participate on committees formed by creditors to negotiate with the management of financially troubled issuers of securities held by the Fund. Such participation may subject a Fund to expenses such as legal fees and may make the Fund an “insider” of the issuer for purposes of the federal securities laws, and therefore may restrict the Fund’s ability to trade in or acquire additional positions in a particular security when it might otherwise desire to do so. Participation by a Fund on such committees also may expose the Fund to potential liabilities under the federal bankruptcy laws or other laws governing the rights of creditors and debtors. A Fund will participate on such committees only when its Sub-Advisor believes that such participation is necessary or desirable to enforce the Fund’s rights as a creditor or to protect the value of securities held by the Fund. Further, a Sub-Advisor has the authority to represent the Trust, or its Fund, on creditors committees or similar committees and generally with respect to challenges related to the securities held by the Fund relating to the bankruptcy of an issuer or in connection with another action brought by other creditors of the issuer, shareholders of the issuer or the issuer itself. |
● | Variable and Floating Rate Securities. Variable and floating rate instruments involve certain obligations that may carry variable or floating rates of interest, and may involve a conditional or unconditional demand feature. Such instruments bear interest at rates which are not fixed, but which vary with changes in specified market rates or indices. The interest rates on these securities may be reset daily, weekly, quarterly, or some other reset period, and may have a set floor or ceiling on interest rate changes. There is a risk that the current interest rate on such obligations may not accurately reflect existing market interest rates. A demand instrument with a demand notice exceeding seven days may be considered illiquid if there is no secondary market for such security. |
● | Bank Obligations. Bank obligations may include certificates of deposit, bankers’ acceptances, and fixed time deposits. Certificates of deposit are negotiable certificates issued against funds deposited in a commercial bank for a definite period of time and earning a specified return. Bankers’ acceptances are negotiable drafts or bills of exchange, normally drawn by an importer or exporter to pay for specific merchandise, which are “accepted” by a bank, meaning, in effect, that the bank unconditionally agrees to pay the face value of the instrument on maturity. Fixed time deposits are bank obligations payable at a stated maturity date and bearing interest at a fixed rate. Fixed time deposits may be withdrawn on demand by the investor, but may be subject to early withdrawal penalties which vary depending upon market conditions and the remaining maturity of the obligation. There are no contractual restrictions on the right to transfer a beneficial interest in a fixed time deposit to a third-party, although there is no market for such deposits. A Fund will not invest in fixed time deposits which (1) are not subject to prepayment or (2) provide for withdrawal penalties upon prepayment (other than overnight deposits) if, in the aggregate, more than 15% of its net assets would be invested in such deposits, repurchase agreements with remaining maturities of more than seven days and other illiquid assets. Subject to the Trust’s limitation on concentration, as described in the “Investment Restrictions” section below, there is no limitation on the amount of a Fund’s assets which may be invested in obligations of foreign banks which meet the conditions set forth herein. |
● | Corporate Debt Securities. Each Fund and certain of the underlying ETPs may, and the AdvisorShares Newfleet Multi-Sector Income ETF intends to, invest in corporate debt securities representative of one or more high yield bond or credit derivative indices, which may change from time to time. Selection will generally be dependent on independent credit analysis or fundamental analysis performed by the Fund’s Sub-Advisor. A Fund may invest in all grades of corporate debt securities, including below investment-grade securities, as discussed below. See Appendix A for a description of corporate bond ratings. A Fund also may invest in unrated securities. |
● | Below Investment-Grade Debt Securities. Each Fund and certain of the underlying ETPs may, and the AdvisorShares Newfleet Multi-Sector Income ETF intends to, invest in below investment-grade securities. Below investment-grade securities, also referred to as “high yield securities” or “junk bonds,” are debt securities that are rated lower than the four highest rating categories by a nationally recognized statistical rating organization (for example, lower than Baa3 by Moody’s Investors Service, Inc. or (“Moody’s”) lower than BBB- by Standard & Poor’s (“S&P”)) or are determined to be of comparable quality by the Fund’s Sub-Advisor. These securities are generally considered to be, on balance, predominantly speculative with respect to capacity to pay interest and repay principal in accordance with the terms of the obligation, and will generally involve more credit risk than securities in the investment-grade categories. Investment in these securities generally provides greater income and increased opportunity for capital appreciation than investments in higher quality securities, but they also typically entail greater price volatility and principal and income risk. |
● | Unrated Debt Securities. Each Fund and certain of the underlying ETPs may, and the AdvisorShares Newfleet Multi-Sector Income ETF intends to, invest in unrated debt securities. Unrated debt, while not necessarily lower in quality than rated securities, may not have as broad a market. Because of the size and perceived demand for the issue, among other factors, certain issuers may decide not to pay the cost of getting a rating for their bonds. The creditworthiness of the issuer, as well as any financial institution or other party responsible for payments on the security, will be analyzed to determine whether to purchase unrated bonds. |
● | Commercial Paper. Each Fund and certain of the ETPs may, and the AdvisorShares Newfleet Multi-Sector Income ETF intends to, invest in commercial paper. Commercial paper is a short-term obligation with a maturity ranging from one to 270 days issued by banks, corporations and other borrowers. Such investments are unsecured and usually discounted. Each Fund may invest in commercial paper rated A-1 or A-2 by S&P or Prime-1 or Prime-2 by Moody’s. |
● | Inflation-Indexed Bonds. Each Fund and certain of the ETPs may invest in inflation-indexed bonds, which are fixed income securities whose principal value is periodically adjusted according to the rate of inflation. Two structures are common. The U.S. Treasury and some other issuers use a structure that accrues inflation into the principal value of the bond. Most other issuers pay out the Consumer Price Index (“CPI”) accruals as part of a semiannual coupon. |
● | Mortgage Pass-Through Securities. Each Fund and certain of the underlying ETPs may invest in mortgage pass-through securities. Interests in pools of mortgage-related securities differ from other forms of debt securities, which normally provide for periodic payment of interest in fixed amounts with principal payments at maturity or specified call dates. Instead, these securities provide a monthly payment which consists of both interest and principal payments. In effect, these payments are a “pass-through” of the monthly payments made by the individual borrowers on their residential or commercial mortgage loans, net of any fees paid to the issuer or guarantor of such securities. Additional payments are caused by repayments of principal resulting from the sale of the underlying property, refinancing or foreclosure, net of fees or costs which may be incurred. Some mortgage-related securities (such as securities issued by the Government National Mortgage Association (“Ginnie Mae”)) are described as “modified pass-through.” These securities entitle the holder to receive all interest and principal payments owed on the mortgage pool, net of certain fees, at the scheduled payment dates regardless of whether or not the mortgagor actually makes the payment. |
● | Agency Mortgage-Related Securities. Each Fund and certain of the underlying ETPs may invest in agency mortgage-related securities. The principal governmental guarantor of mortgage-related securities is Ginnie Mae. Ginnie Mae is a wholly owned United States government corporation within the Department of Housing and Urban Development. Ginnie Mae is authorized to guarantee, with the full faith and credit of the United States government, the timely payment of principal and interest on securities issued by institutions approved by Ginnie Mae (such as savings and loan institutions, commercial banks and mortgage bankers) and backed by pools of mortgages insured by the Federal Housing Administration (the “FHA”), or guaranteed by the Department of Veterans Affairs (the “VA”). |
● | Privately Issued Mortgage-Related Securities. Each Fund and certain of the underlying ETPs may invest in privately issued mortgage-related securities. Commercial banks, savings and loan institutions, private mortgage insurance companies, mortgage bankers and other secondary market issuers also create pass-through pools of conventional residential mortgage loans. Such issuers may be the originators and/or servicers of the underlying mortgage loans as well as the guarantors of the mortgage-related securities. Pools created by such non-governmental issuers generally offer a higher rate of interest than government and government-related pools because there are no direct or indirect government or agency guarantees of payments in the former pools. However, timely payment of interest and principal of these pools may be supported by various forms of insurance or guarantees, including individual loan, title, pool and hazard insurance and letters of credit, which may be issued by governmental entities or private insurers. Such insurance and guarantees and the creditworthiness of the issuers thereof will be considered in determining whether a mortgage-related security meets the Trust’s investment quality standards. There can be no assurance that insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. A Fund may buy mortgage-related securities without insurance or guarantees if, through an examination of the loan experience and practices of the originators/servicers and poolers, its Sub-Advisor determines that the securities meet the Trust’s quality standards. Securities issued by certain private organizations may not be readily marketable. A Fund will not purchase mortgage-related securities or any other assets which, in its Sub-Advisor’s opinion, are illiquid if, as a result, more than 15% of the Fund’s net assets will be invested in illiquid securities. |
● | Collateralized Mortgage Obligations (“CMOs”). Each Fund and certain of the underlying ETPs may invest in CMOs, which are debt obligations of a legal entity that are collateralized by mortgages and divided into classes. Similar to a bond, interest and prepaid principal is paid, in most cases, on a monthly basis. CMOs may be collateralized by whole mortgage loans or private mortgage bonds, but are more typically collateralized by portfolios of mortgage pass-through securities guaranteed by Ginnie Mae, Freddie Mac, or Fannie Mae, and their income streams. |
● | Commercial Mortgage-Backed Securities. Each Fund and certain of the underlying ETPs may invest in commercial mortgage-backed securities, which include securities that reflect an interest in, and are secured by, mortgage loans on commercial real property. Many of the risks of investing in commercial mortgage-backed securities reflect the risks of investing in the real estate securing the underlying mortgage loans. These risks reflect the effects of local and other economic conditions on real estate markets, the ability of tenants to make loan payments, and the ability of a property to attract and retain tenants. Commercial mortgage-backed securities may be less liquid and exhibit greater price volatility than other types of mortgage- or asset-backed securities. |
● | Other Mortgage-Related Securities. Each Fund and certain of the underlying ETPs may invest in other mortgage-related securities, which include securities other than those described above that directly or indirectly represent a participation in, or are secured by and payable from, mortgage loans on real property, including mortgage dollar rolls, CMO residuals or stripped mortgage-backed securities (“SMBS”). Other mortgage-related securities may be equity or debt securities issued by agencies or instrumentalities of the U.S. Government or by private originators of, or investors in, mortgage loans, including savings and loan associations, homebuilders, mortgage banks, commercial banks, investment banks, partnerships, trusts and special purpose entities of the foregoing. |
● | CMO Residuals. Each Fund and certain of the underlying ETPs may invest in CMO residuals, which are mortgage securities issued by agencies or instrumentalities of the U.S. Government or by private originators of, or investors in, mortgage loans, including savings and loan associations, homebuilders, mortgage banks, commercial banks, investment banks and special purpose entities of the foregoing. |
● | Adjustable Rate Mortgage-Backed Securities (“ARMBSs”). Each Fund and certain of the underlying ETPs may invest in ARMBSs, which have interest rates that reset at periodic intervals. Acquiring ARMBSs permits a Fund to participate in increases in prevailing current interest rates through periodic adjustments in the coupons of mortgages underlying the pool on which ARMBSs are based. Such ARMBSs generally have higher current yield and lower price fluctuations than is the case with more traditional fixed income debt securities of comparable rating and maturity. In addition, when prepayments of principal are made on the underlying mortgages during periods of rising interest rates, a Fund can reinvest the proceeds of such prepayments at rates higher than those at which they were previously invested. Mortgages underlying most ARMBSs, however, have limits on the allowable annual or lifetime increases that can be made in the interest rate that the mortgagor pays. Therefore, if current interest rates rise above such limits over the period of the limitation, a Fund, when holding an ARMBS, does not benefit from further increases in interest rates. Moreover, when interest rates are in excess of coupon rates (i.e. , the rates being paid by mortgagors) of the mortgages, ARMBSs behave more like fixed income securities and less like adjustable rate securities and are subject to the risks associated with fixed income securities. In addition, during periods of rising interest rates, increases in the coupon rate of adjustable rate mortgages generally lag current market interest rates slightly, thereby creating the potential for capital depreciation on such securities. |
● | Stripped Mortgage-Backed Securities (“SMBSs”). Each Fund and certain of the underlying ETPs may invest in SMBS, which are derivative multi-class mortgage securities. SMBSs may be issued by agencies or instrumentalities of the U.S. Government, or by private originators of, or investors in, mortgage loans, including savings and loan associations, mortgage banks, commercial banks, investment banks and special purpose entities of the foregoing. |
● | Asset-Backed Securities (“ABSs”). Each Fund and certain of the underlying ETPs may invest in ABSs, which are bonds backed by pools of loans or other receivables. ABSs are created from many types of assets, including auto loans, credit card receivables, home equity loans, and student loans. ABSs are issued through special purpose vehicles that are bankruptcy remote from the issuer of the collateral. The credit quality of an ABS transaction depends on the performance of the underlying assets. To protect ABS investors from the possibility that some borrowers could miss payments or even default on their loans, ABSs include various forms of credit enhancement. Some ABSs, particularly home equity loan transactions, are subject to interest-rate risk and prepayment risk. A change in interest rates can affect the pace of payments on the underlying loans, which in turn, affects total return on the securities. ABSs also carry credit or default risk. If many borrowers on the underlying loans default, losses could exceed the credit enhancement level and result in losses to investors in an ABS transaction. Finally, ABSs have structure risk due to a unique characteristic known as early amortization, or early payout, risk. Built into the structure of most ABSs are triggers for early payout, designed to protect investors from losses. These triggers are unique to each transaction and can include a big rise in defaults on the underlying loans, a sharp drop in the credit enhancement level, or even the bankruptcy of the originator. Once early amortization begins, all incoming loan payments (after expenses are paid) are used to pay investors as quickly as possible based upon a predetermined priority of payment. Consistent with a Fund’s investment objectives and policies, its Sub-Advisor also may invest in other types of ABSs. |
● | Collateralized Bond Obligation (“CBO”), Collateralized Loan Obligation (“CLO”) and Other Collateralized Debt Obligation (“CDO”). Each Fund and certain of the underlying ETPs may invest in each of collateralized bond obligations, collateralized loan obligations, other collateralized debt obligations and other similarly structured securities. CBOs, CLOs and other CDOs are types of asset-backed securities. A CBO is a trust which is often backed by a diversified pool of high risk, below investment-grade fixed income securities. The collateral can be from many different types of fixed income securities such as high yield debt, residential privately issued mortgage-related securities, commercial privately issued mortgage-related securities, trust preferred securities and emerging market debt. A CLO is a trust typically collateralized by a pool of loans, which may include, among others, domestic and foreign senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated below investment-grade or equivalent unrated loans. Other CDOs are trusts backed by other types of assets representing obligations of various parties. CBOs, CLOs and other CDOs may charge management fees and administrative expenses. |
1. | Borrow money, except to the extent permitted by the 1940 Act, the rules and regulations thereunder and any applicable exemptive relief. The 1940 Act presently allows a fund to (1) borrow from any bank (including pledging, mortgaging or hypothecating assets) in an amount up to 33 1/3 % of its total assets, (2) borrow money for temporary purposes in an amount not exceeding 5% of the value of the Fund’s total assets at the time of the loan, and (3) enter into reverse repurchase agreements. |
2. | Make loans, except as permitted under the 1940 Act, the rules and regulations thereunder and any applicable exemptive relief. |
3. | Purchase or sell real estate, except that, to the extent permitted by applicable law, a Fund may (a) invest in securities or other instruments directly or indirectly secured by real estate, and (b) invest in securities or other instruments issued by issuers that invest in real estate. |
4. | Issue senior securities, except to the extent permitted by the 1940 Act, the rules and regulations thereunder and any applicable exemptive relief. |
5. | Underwrite securities issued by others, except to the extent that a Fund may be considered an underwriter within the meaning of the Securities Act in the disposition of restricted securities or in connection with investments in other investment companies. |
6. | Purchase or sell commodities or commodity contracts unless acquired as a result of ownership of securities or other instruments issued by persons that purchase or sell commodities or commodities contracts; but this shall not prevent the Fund from purchasing, selling and entering into financial futures contracts (including futures contracts on indices of securities, interest rates and currencies), options on financial futures contracts (including futures contracts on indices of securities, interest rates and currencies), warrants, swaps, forward contracts, foreign currency spot and forward contracts or other derivative instruments that are not related to physical commodities. |
7. | Purchase or sell commodities or commodity contracts unless acquired as a result of ownership of securities or other instruments issued by persons that purchase or sell commodities or commodities contracts. |
8. | With respect to 75% of its total assets, (i) purchase securities of any issuer (except securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities or shares of investment companies) if, as a result, more than 5% of its total assets would be invested in the securities of such issuer, or (ii) acquire more than 10% of the outstanding voting securities of any one issuer. * |
9. | Invest more than 25% of its total assets in the securities of one or more issuers conducting their principal business activities in the same industry or group of industries. (The limitation against industry concentration does not apply to investments in securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities or to shares of investment companies; however, a Fund will not invest more than 25% of its total assets in any investment company that so concentrates.) * |
10. | Invest more than 25% of its total assets in the securities of one or more issuers conducting their principal business activities in the same industry or group of industries except that the Fund will concentrate ( i.e., invest more than 25% of its total assets) in the securities of issuers in the Hotels, Restaurants & Leisure Industry. (The limitation against industry concentration does not apply to investments in securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities, or to shares of investment companies; however, the Fund will not invest more than 25% of its net assets in any investment company that so concentrates.)* |
11. | Invest more than 25% of its total assets in the securities of one or more issuers conducting their principal business activities in the same industry or group of industries except that the Fund will concentrate ( i.e. , invest more than 25% of its total assets) in the securities of issuers in the Pharmaceuticals, Biotechnology & Life Sciences Industry Group. (The limitation against industry concentration does not apply to investments in securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities, or to shares of investment companies; however, the Fund will not invest more than 25% of its net assets in any investment company that so concentrates.)* |
12. | Invest more than 25% of its total assets in the securities of one or more issuers conducting their principal business activities in the same industry or group of industries except that the Fund will concentrate ( i.e. , invest more than 25% of its total assets) in the securities of issuers in the Food, Beverage & Tobacco Industry Group. (The limitation against industry concentration does not apply to investments in securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities or to shares of investment companies; however, the Fund will not invest more than 25% of its total assets in any investment company that so concentrates.)* |
1. | Without providing 60 days notice to shareholders, change its investment strategy to invest, under normal circumstances, at least 80% of its total assets in ADRs and securities that have economic characteristics similar to ADRs. |
2. | Without providing 60 days notice to shareholders, change its investment strategy to invest, under normal circumstances, at least 80% of its net assets (plus any borrowings for investment purposes) in US investments. |
3. | Without providing 60 days notice to shareholders, change its investment strategy to invest, under normal circumstances, at least 80% of its net assets (plus any borrowings for investment purposes) in micro-cap securities. |
4. | Without providing 60 days notice to shareholders, change its investment strategy to invest, under normal circumstances, at least 80% of its net assets (plus any borrowings for investment purposes) in investments that create or result in short exposure to U.S. equity securities. |
5. | Without providing 60 days notice to shareholders, change its investment strategy to invest, under normal circumstances, at least 80% of its net assets (plus any borrowings for investment purposes) in equity securities. |
6. | Without providing 60 days notice to shareholders, change its investment strategy to invest, under normal circumstances, at least 80% of its net assets (plus any borrowings for investment purposes) in securities of companies that derive at least 50% of their net revenue from the hotel business. |
7. | Invest in other investment company securities in reliance on Section 12(d)(1)(F) or Section 12(d)(1)(G) of the 1940 Act. |
8. | Without providing 60 days notice to shareholders, change its investment strategy to invest, under normal circumstances, at least 80% of its net assets (plus any borrowings for investment purposes) in bonds subject to ESG criteria. |
9. |
Without providing 60 days notice to shareholders, change its investment strategy to invest, under normal circumstances, at least 80% of its net assets (plus any borrowings for investment purposes) in securities of companies that derive at least 50% of their net revenue from the marijuana and hemp business and in derivatives or other instruments that have economic characteristics similar to such securities. |
10. |
Without providing 60 days notice to shareholders, change its investment strategy to invest, under normal circumstances, at least 80% of its net assets (plus any borrowings for investment purposes) in securities of companies that derive at least 50% of their net revenue from the marijuana and hemp business in the United States and in derivatives or other instruments that have economic characteristics similar to such securities. |
11. |
Without providing 60 days notice to shareholders, change its investment strategy to invest, under normal circumstances, at least 80% of its net assets (plus any borrowings for investment purposes) in securities of companies that derive at least 50% of their net revenue from the restaurant business. |
12. |
Without providing 60 days notice to shareholders, change its investment strategy to invest, under normal circumstances, at least 80% of its net assets (plus any borrowings for investment purposes) in short positions in equity securities. |
13. |
Without providing 60 days notice to shareholders, change its investment strategy to invest, under normal circumstances, at least 80% of its net assets (plus any borrowings for investment purposes) in securities of (i) companies that derive at least 50% of their net revenue from tobacco and alcoholic beverages, (ii) companies that derive at least 50% of their net revenue from the food and beverage industry, and (iii) companies that derive at least 50% of their net revenue from gaming activities . |
● | ordinary brokerage transactions through brokers or dealers (who may act as agents or principals) or directly to one or more purchasers; |
● | privately negotiated transactions; |
● | through the writing or settlement of options or other hedging transactions, whether such options are listed on an options exchange or otherwise; and |
● | any other method permitted pursuant to applicable law. |
Fund |
Fund Inception Date |
Aggregate Brokerage Commissions Paid During Fiscal Years Ended June 30 |
||
2021 |
2020 |
2019 |
||
AdvisorShares Alpha DNA Equity Sentiment ETF |
2/2/2021 |
$73,432 |
* |
* |
AdvisorShares Dorsey Wright Alpha Equal Weight ETF |
12/26/2019 |
$75,995 |
$10,316 |
* |
AdvisorShares Dorsey Wright FSM All Cap World ETF |
12/26/2019 |
$51,474 |
$7,689 |
* |
AdvisorShares Dorsey Wright FSM US Core ETF |
12/26/2019 |
$5,021 |
$10,627 |
* |
AdvisorShares Dorsey Wright ADR ETF |
7/20/2010 |
$81,512 |
$60,464 |
$148,948 |
AdvisorShares Dorsey Wright Micro-Cap ETF |
7/10/2018 |
$16,469 |
$4,681 |
$3,981 |
AdvisorShares Dorsey Wright Short ETF |
7/10/2018 |
$258,621 |
$595,938 |
$41,990 |
AdvisorShares DoubleLine Value Equity ETF |
10/4/2011 |
$13,351 |
$37,177 |
$49,484 |
AdvisorShares Focused Equity ETF |
9/20/2016 |
$1,292 |
$1,933 |
$868 |
AdvisorShares Hotel ETF |
4/20/2021 |
$1,459 |
* |
* |
AdvisorShares Newfleet Multi-Sector Income ETF |
3/19/2013 |
$174 |
$193 |
$0 |
AdvisorShares North Square McKee Core Reserves ETF |
1/14/2014 |
$26 |
$5,588 |
$0 |
AdvisorShares North Square McKee ESG Core Bond ETF |
6/20/2011 |
$6,567 |
$19,649 |
$12,756 |
AdvisorShares Pure Cannabis ETF |
4/17/2019 |
$273,521 |
$101,731 |
$30,526 |
AdvisorShares Pure US Cannabis ETF |
9/1/2020 |
$166,323 |
* |
* |
AdvisorShares Q Dynamic Growth ETF |
12/28/2020 |
$5,821 |
* |
* |
AdvisorShares Q Portfolio Blended Allocation ETF |
12/28/2020 |
$3,659 |
* |
* |
AdvisorShares Ranger Equity Bear ETF |
1/26/2011 |
$1,366,621 |
$2,305,938 |
$770,153 |
AdvisorShares Restaurant ETF |
4/20/2021 |
$1,171 |
* |
* |
AdvisorShares STAR Global Buy-Write ETF |
9/17/2012 |
$2,739 |
$7,568 |
$8,576 |
AdvisorShares Vice ETF |
12/11/2017 |
$10,203 |
$3,959 |
$7,699 |
Fund |
Total Dollar Amount of Brokerage Commissions In Connection With Research Services |
Total Dollar Amount of Transactions Involving Brokerage Commissions In Connection With Research Services |
AdvisorShares Ranger Equity Bear ETF |
$151,246.42 |
$388,193,099.38 |
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). |
23 |
None |
Independent Trustees |
||||
Elizabeth (“Betsy”) Piper/Bach 4800 Montgomery Lane, Suite 150 Bethesda, MD 20814 (1952) |
Trustee (no set term); served since 2009 |
President of ASAE Business Services, Inc. (2017-present), ASAE Insurance Company (2020-present), ASAE Investments, LLC (2018-present), ASAE Real Estate (2017-present) (ASAE (American Society of Association Executives) is a membership organization serving the association and non-profit community); President of P/B Wealth Consulting (2017-present); Vice-President/Chief Operating Officer of NADA Retirement Administrators, Inc. (National Automobile Dealers Association) (2009-2017). |
23 |
None |
William G. McVay 4800 Montgomery Lane, Suite 150 Bethesda, MD 20814 (1954) |
Trustee (no set term); served since 2011 |
Principal of Red Tortoise LLC (a boutique investment counseling firm) (May 2017-present); Founder of RDK Strategies, LLC (a firm providing investment management research and consulting solutions) (2007-present). |
23 |
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 |
Julio Lugo 51 Stonehedge Drive East Windsor, NJ 08520 (1963) |
Vice President (no set term); served since 2021 |
Head of Fund Operations of AdvisorShares Investments, LLC (2021-present); Vice President of the Trust (2021-present); President/Founder of ETP Consultants LLC (2020-2021); Principal of BNY Mellon Depositary Receipts (2004-2020). |
N/A |
N/A |
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 |
Dan Ahrens
2030 Modern Place
Dallas, TX 75214
(1966)
|
Secretary and 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).
|
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. |
Trustee Name |
Fund Name |
Dollar Range of Fund Shares |
Aggregate Dollar Range of Shares in All Registered Investment Companies Overseen by Trustee in Family of Investment Companies |
Interested Trustee |
|||
Noah Hamman |
AdvisorShares Alpha DNA Equity Sentiment ETF |
$50,001-$100,000 |
over $100,000 |
AdvisorShares Hotel ETF |
$10,001 - $50,000 |
||
AdvisorShares Pure US Cannabis ETF |
Over $100,000 |
||
AdvisorShares Q Dynamic Growth ETF |
$1-$10,000 |
||
AdvisorShares Q Portfolio Blended Allocation ETF |
$1-$10,000 |
||
AdvisorShares Focused Equity ETF |
$50,001-$100,000 |
||
$10,001 - $50,000 |
|||
AdvisorShares Vice ETF |
$50,001-$100,000 |
||
Independent Trustees |
|||
Elizabeth Piper/Bach |
AdvisorShares Dorsey Wright ADR ETF |
$1-$10,000 |
$10,001-$50,000 |
AdvisorShares DoubleLine Value Equity ETF |
$1-$10,000 |
||
AdvisorShares Pure US Cannabis ETF |
$1-$10,000 |
||
William G. McVay |
AdvisorShares DoubleLine Value Equity ETF |
$10,001-$50,000 |
$10,001-$50,000 |
Name of Trustee |
Aggregate Compensation From Trust |
Pension or Retirement Benefits Accrued as Part of Trust’s Expenses |
Estimated Annual Benefits Upon Retirement |
Total Compensation from Fund Complex* |
Interested Trustee |
||||
Noah Hamman |
$0 |
N/A |
N/A |
$0 |
Independent Trustees |
||||
Elizabeth Piper/Bach |
$48,750 |
N/A |
N/A |
$48,750 |
William G. McVay |
$45,000 |
N/A |
N/A |
$45,000 |
Fund |
Advisory Fee as a % of Average Daily Net Assets |
Maximum Annual Operating Expense Limit |
AdvisorShares Alpha DNA Equity Sentiment ETF |
0.76% |
1.35% |
AdvisorShares Dorsey Wright Alpha Equal Weight ETF |
0.75% |
0.99% |
AdvisorShares Dorsey Wright FSM All Cap World ETF |
0.75% |
0.99% |
AdvisorShares Dorsey Wright FSM US Core ETF |
0.75% |
0.99% |
AdvisorShares Dorsey Wright ADR ETF |
0.75% |
1.10% 1 |
AdvisorShares Dorsey Wright Micro-Cap ETF |
0.75% |
1.25% 2 |
AdvisorShares Dorsey Wright Short ETF |
0.75% |
1.25% 2 |
AdvisorShares DoubleLine Value Equity ETF |
0.70% |
0.90% |
AdvisorShares Hotel ETF |
0.60% |
0.99% |
AdvisorShares Newfleet Multi-Sector Income ETF |
0.50% |
0.75% |
AdvisorShares North Square McKee Core Reserves ETF |
0.30% |
0.35% |
AdvisorShares North Square McKee ESG Core Bond ETF |
0.24% 3 |
0.47% 4 |
AdvisorShares Pure Cannabis ETF |
0.60% |
0.74% |
AdvisorShares Pure US Cannabis ETF |
0.60% |
0.74% |
AdvisorShares Ranger Equity Bear ETF |
1.50% |
1.85% |
AdvisorShares Restaurant ETF |
0.60% |
0.99% |
AdvisorShares STAR Global Buy-Write ETF |
1.35% |
1.85% |
AdvisorShares Vice ETF |
0.60% |
0.99% 5 |
Fund |
Performance Benchmark |
Annual Advisory Fee Range |
AdvisorShares Focused Equity ETF |
S&P 500 Index |
0.65% to 0.85% |
AdvisorShares Q Portfolio Blended Allocation ETF |
Blended 60% S&P 500 Index/ 40% Bloomberg U.S. Aggregate Bond Index |
0.64% to 0.84% |
AdvisorShares Q Dynamic Growth ETF |
S&P 500 Index |
0.90% to 1.10% |
Base Fee |
0.75% |
Incremental Changes |
0.02% |
Performance to Benchmark |
Advisory Fee |
2.00% |
0.85% |
1.50% |
0.83% |
1.25% |
0.81% |
1.00% |
0.79% |
0.50% |
0.77% |
+/- 0 |
0.75% |
-0.50% |
0.73% |
-1.00% |
0.71% |
-1.25% |
0.69% |
-1.50% |
0.67% |
-2.00% |
0.65% |
Base Fee |
1.00% |
Incremental Changes |
0.02% |
Performance to Benchmark |
Advisory Fee |
2.00% |
1.10% |
1.50% |
1.08% |
1.25% |
1.06% |
1.00% |
1.04% |
0.50% |
1.02% |
+/- 0 |
1.00% |
-0.50% |
0.98% |
-1.00% |
0.96% |
-1.25% |
0.94% |
-1.50% |
0.92% |
-2.00% |
0.90% |
Base Fee |
0.74% |
Incremental Changes |
0.02% |
Performance to Benchmark |
Advisory Fee |
2.00% |
0.84% |
1.50% |
0.82% |
1.25% |
0.80% |
1.00% |
0.78% |
0.50% |
0.76% |
+/- 0 |
0.74% |
-0.50% |
0.72% |
-1.00% |
0.70% |
-1.25% |
0.68% |
-1.50% |
0.66% |
-2.00% |
0.64% |
Fund |
Maximum Annual Operating Expense Limit |
AdvisorShares Focused Equity ETF |
A percentage of the Fund’s average daily net assets equal to the annual rate of the advisory fee, which can range from 0.65% to 0.85% |
AdvisorShares Q Dynamic Growth ETF |
1.45% |
AdvisorShares Q Portfolio Blended Allocation ETF |
0.99% |
Fund |
Fund Inception Date |
Aggregate Advisory Fees |
Advisory Fees (Waived) and/or Recaptured |
Net Advisory Fees Paid |
||||||
2021 |
2020 |
2019 |
2021 |
2020 |
2019 |
2021 |
2020 |
2019 |
||
AdvisorShares Alpha DNA Equity Sentiment ETF |
2/2/21 |
$182,703 |
-- (1) |
-- (1) |
$0 |
-- (1) |
-- (1) |
$182,749 |
-- (1) |
-- (1) |
AdvisorShares Dorsey Wright Alpha Equal Weight ETF |
12/26/19 |
$498,812 |
$113,260 |
-- (1) |
$31,003 |
$(31,003) |
-- (1) |
$529,815 |
$82,257 |
-- (1) |
AdvisorShares Dorsey Wright FSM All Cap World ETF |
12/26/19 |
$954,277 |
$132,103 |
-- (1) |
$22,184 |
$(22,184) |
-- (1) |
$976,462 |
$109,919 |
-- (1) |
AdvisorShares Dorsey Wright FSM US Core ETF |
12/26/19 |
$527,379 |
$121,835 |
-- (1) |
$26,148 |
$(26,148) |
-- (1) |
$553,527 |
$95,687 |
-- (1) |
AdvisorShares Dorsey Wright ADR ETF |
7/20/10 |
$609,527 |
$735,743 |
$1,073,783 |
$115,324 |
$51,436 |
$(272,312) |
$724,851 |
$787,179 |
$801,471 |
AdvisorShares Dorsey Wright Micro-Cap ETF |
7/10/18 |
$32,289 |
$15,224 |
$17,006 |
$(82,864) |
$(77,363) |
$(86,234) |
$(50,576) |
$(62,139) |
$(69,228) |
AdvisorShares Dorsey Wright Short ETF |
7/10/18 |
$440,092 |
$440,572 |
$92,884 |
$(42,680) |
$143,291 |
$(70,194) |
$397,412 |
$583,863 |
$22,690 |
AdvisorShares DoubleLine Value Equity ETF |
10/4/11 |
$318,423 |
$379,112 |
$577,325 |
$(67,609) |
$(91,371) |
$(200,619) |
$250,814 |
$287,741 |
$376,706 |
AdvisorShares Focused Equity ETF |
9/20/16 |
$156,639 |
$146,061 |
$109,894 |
$(125,958) |
$(125,699) |
$(136,738) |
$30,681 |
$20,363 |
$(26,843) |
AdvisorShares Hotel ETF |
4/20/21 |
$5,057 |
-- (1) |
-- (1) |
$(47,305) |
-- (1) |
-- (1) |
$(42,248) |
-- (1) |
-- (1) |
AdvisorShares Newfleet Multi-Sector Income ETF |
3/19/13 |
$371,877 |
$339,067 |
$713,961 |
$(21,007) |
$(50,459) |
$(249,159) |
$350,870 |
$288,608 |
$464,803 |
AdvisorShares North Square McKee Core Reserves ETF |
1/14/14 |
$219,621 |
$283,646 |
$194,834 |
$(158,115) |
$(165,567) |
$(192,747) |
$61,506 |
$118,079 |
$2,087 |
Fund |
Fund Inception Date |
Aggregate Advisory Fees |
Advisory Fees (Waived) and/or Recaptured |
Net Advisory Fees Paid |
||||||
2021 |
2020 |
2019 |
2021 |
2020 |
2019 |
2021 |
2020 |
2019 |
||
AdvisorShares North Square McKee ESG Core Bond ETF |
6/20/11 |
$33,129 |
$35,750 |
$77,069 |
$(79,609) |
$(39,057) |
$(82,792) |
$(46,480) |
$(3,307) |
$(5,724) |
AdvisorShares Pure Cannabis ETF |
4/17/19 |
$1,280,905 |
$273,012 |
$54,843 |
$115,083 |
$(196,096) |
$(33,071) |
$1,395,987 |
$76,916 |
$21,771 |
AdvisorShares Pure US Cannabis ETF |
9/1/20 |
$2,815,553 |
-- (1) |
-- (1) |
$(16,091) |
-- (1) |
-- (1) |
$2,799,462 |
-- (1) |
-- (1) |
AdvisorShares Q Dynamic Growth ETF |
12/28/20 |
$177,872 |
-- (1) |
-- (1) |
$(10,281) |
-- (1) |
-- (1) |
$167,591 |
-- (1) |
-- (1) |
AdvisorShares Q Portfolio Blended Allocation ETF |
12/28/20 |
$20,445 |
-- (1) |
-- (1) |
$(71,767) |
-- (1) |
-- (1) |
$(51,322) |
-- (1) |
-- (1) |
AdvisorShares Ranger Equity Bear ETF |
1/26/11 |
$1,364,707 |
$2,202,563 |
$2,016,364 |
$0 |
$0 |
$0 |
$1,364,707 |
$2,202,563 |
$2,016,364 |
AdvisorShares Restaurant ETF |
4/20/21 |
$4,134 |
-- (1) |
-- (1) |
$(47,820) |
-- (1) |
-- (1) |
$(43,686) |
-- (1) |
-- (1) |
AdvisorShares STAR Global Buy-Write ETF |
9/17/12 |
$168,072 |
$187,760 |
$212,563 |
$(78,833) |
$(49,370) |
$(77,386) |
$89,239 |
$138,391 |
$135,178 |
AdvisorShares Vice ETF |
12/12/17 |
$69,820 |
$69,336 |
$79,129 |
$(83,764) |
$(79,288) |
$(89,372) |
$(13,945) |
$(9,952) |
$(10,243) |
Fund |
Fund Inception Date |
Sub-Advisor |
Sub-Advisory Fee Rate |
Sub-Advisory Fees Paid for the Fiscal Years Ended June 30 |
||
2021 |
2020 |
2019 |
||||
AdvisorShares Alpha DNA Equity Sentiment ETF |
2/2/21 |
Alpha DNA Investment Management, LLC |
0.45% |
$83,081.22 |
(1) |
(1) |
AdvisorShares Dorsey Wright ADR ETF |
7/20/10 |
Dorsey, Wright & Associates, LLC |
0.25% |
$200,107.40 |
$251,583.07 |
$357,928.33 |
AdvisorShares Dorsey Wright Micro-Cap ETF |
7/10/18 |
Dorsey, Wright & Associates, LLC |
0.25% |
$9,371.24 |
$1,817.97 |
$3519.03 |
AdvisorShares Dorsey Wright Short ETF |
7/10/18 |
Dorsey, Wright & Associates, LLC |
0.25% |
$162,234.82 |
$100,642.25 |
$10,410.17 |
AdvisorShares DoubleLine Value Equity ETF |
10/4/11 |
DoubleLine Equity LP |
0.35% |
$126,444.76 |
$139,596.39 |
$214,878.30 |
AdvisorShares Newfleet Multi-Sector Income ETF |
3/19/13 |
Newfleet Asset Management, LLC |
0.25% |
$190,199.84 |
$131,440.95 |
$271,783.21 |
AdvisorShares North Square McKee Core Reserves ETF |
1/14/14 |
CSM Advisors, LLC |
0.12% (2) |
$42,507.28 |
$52,057.57 |
$11,789.54 |
AdvisorShares North Square McKee ESG Core Bond ETF |
6/20/11 |
CSM Advisors, LLC |
0.12% |
(3) |
(3) |
(3) |
AdvisorShares Q Dynamic Growth ETF |
12/28/20 |
ThinkBetter, LLC |
0.65% |
$27,904.32 |
(1) |
(1) |
AdvisorShares Q Portfolio Blended Allocation ETF |
12/28/20 |
ThinkBetter, LLC |
0.50% |
$0 |
(1) |
(1) |
AdvisorShares Ranger Equity Bear ETF |
1/26/11 |
Ranger Alternative Management, L.P. |
1.00% |
$989,979.42 |
$1,463,948.66 |
$1,344,242.28 |
AdvisorShares STAR Global Buy-Write ETF |
9/17/12 |
ChangePath, LLC |
0.85% |
$48,282.74 (4) |
$64,268.68 (4) |
$68,058.38 (4) |
(1) | Not in operation for the period. |
(2) |
Effective November 1, 2021, the Fund’s sub-advisory fee was changed from 0.15% to 0.12% of the Fund’s daily net assets. The fees reflected prior to June 30, 2021 represent the sub-advisory fees paid to Sage Advisory Services, Ltd. Co., the Fund’s former investment sub-advisor. |
(3) | Not engaged in a sub-advisory arrangement for the period. |
(4) | The fees reflected prior to November 25, 2020 represent the sub-advisory fees paid to Partnervest Advisory Services, LLC, the Fund's former investment sub-advisor. |
Base Fee |
0.50% |
Incremental Changes |
0.02% |
Performance to Benchmark |
Sub-Advisory Fee |
2.00% |
0.60% |
1.50% |
0.58% |
1.25% |
0.56% |
1.00% |
0.54% |
0.50% |
0.52% |
+/- 0 |
0.50% |
-0.50% |
0.48% |
-1.00% |
0.46% |
-1.25% |
0.44% |
-1.50% |
0.42% |
-2.00% |
0.40% |
Base Fee |
0.65% |
Incremental Changes |
0.02% |
Performance to Benchmark |
Sub-Advisory Fee |
2.00% |
0.75% |
1.50% |
0.73% |
1.25% |
0.71% |
1.00% |
0.69% |
0.50% |
0.67% |
+/- 0 |
0.65% |
-0.50% |
0.63% |
-1.00% |
0.61% |
-1.25% |
0.59% |
-1.50% |
0.57% |
-2.00% |
0.55% |
Fund |
Portfolio Manager(s) |
AdvisorShares Alpha DNA Equity Sentiment ETF |
Wayne Ferbert |
Fund |
Portfolio Manager(s) |
AdvisorShares Dorsey Wright Alpha Equal Weight ETF |
Dan S. Ahrens |
AdvisorShares Dorsey Wright FSM All Cap World ETF |
Dan S. Ahrens |
AdvisorShares Dorsey Wright FSM US Core ETF |
Dan S. Ahrens |
AdvisorShares Dorsey Wright ADR ETF |
John G. Lewis |
AdvisorShares Dorsey Wright Micro-Cap ETF |
John G. Lewis |
AdvisorShares Dorsey Wright Short ETF |
John G. Lewis |
AdvisorShares DoubleLine Value Equity ETF |
Emidio Checcone
Brian Ear
|
AdvisorShares Focused Equity ETF |
Dan S. Ahrens |
AdvisorShares Hotel ETF |
Dan S. Ahrens |
AdvisorShares Newfleet Multi-Sector Income ETF |
David L. Albrycht
Benjamin Caron
|
AdvisorShares North Square McKee Core Reserves ETF |
Brian Allen
Bryan Johanson
Jack White
Andrew Faderewski
|
AdvisorShares North Square McKee ESG Core Bond ETF |
Brian Allen
Bryan Johanson
Jack White
Andrew Faderewski
|
AdvisorShares Pure Cannabis ETF |
Dan S. Ahrens |
AdvisorShares Pure Cannabis ETF |
Dan S. Ahrens |
AdvisorShares Q Dynamic Growth ETF |
Ron Piccinini |
AdvisorShares Q Portfolio Blended Allocation ETF |
Ron Piccinini |
AdvisorShares Ranger Equity Bear ETF |
John Del Vecchio
Brad H. Lamensdorf
|
AdvisorShares Restaurant ETF |
Dan S. Ahrens |
AdvisorShares STAR Global Buy-Write ETF |
Kenneth R. Hyman
Robert Kellogg
Rebecca M. Valdez
|
AdvisorShares Vice ETF |
Dan S. Ahrens |
● | AdvisorShares Investments, LLC – AdvisorShares Dorsey Wright Alpha Equal Weight ETF, AdvisorShares Dorsey Wright FSM All Cap World ETF, AdvisorShares Dorsey Wright FSM US Core ETF, AdvisorShares Focused Equity ETF, AdvisorShares Hotel ETF, AdvisorShares Pure Cannabis ETF, AdvisorShares Pure US Cannabis ETF, AdvisorShares Restaurant ETF and AdvisorShares Vice ETF |
Portfolio Manager |
Dollar Range of Shares Owned in AdvisorShares Dorsey Wright Alpha Equal Weight ETF* |
Dollar Range of Shares Owned in AdvisorShares Dorsey Wright FSM All Cap World ETF* |
Dollar Range of Shares Owned in AdvisorShares Dorsey Wright FSM US Core ETF* |
Dollar Range of Shares Owned in AdvisorShares Focused Equity ETF* |
Dollar Range of Shares Owned in AdvisorShares Hotel ETF* |
Dollar Range of Shares Owned in AdvisorShares Pure Cannabis ETF* |
Dollar Range of Shares Owned in AdvisorShares Pure US Cannabis ETF* |
Dollar Range of Shares Owned in AdvisorShares Restaurant ETF* |
Dollar Range of Shares Owned in AdvisorShares Vice ETF* |
Dan S. Ahrens |
None |
None |
None |
None |
$1 - $10,000 |
$10,001 - $50,000 |
$10,001 - $50,000 |
$1 - $10,000 |
$10,001 - $50,000 |
● | Alpha DNA Investment Management, LLC – AdvisorShares Alpha DNA Equity Sentiment ETF |
Portfolio Manager |
Dollar Range of Shares Owned in the Fund* |
Wayne Ferbert |
$1 - $10,000 |
Total number of other accounts managed by Portfolio Manager(s) within each category below and the total assets in the accounts managed within each category below. |
||||||
Name |
Registered Investment Companies |
Other Pooled Investment Vehicles |
Other Accounts |
|||
Number of Accounts |
Total Assets (in millions) |
Number of Accounts |
Total Assets (in millions) |
Number of Accounts |
Total Assets (in millions) |
|
Wayne Ferbert |
0 |
$0 |
0 |
$0 |
575 |
$107,899,000 |
● | ChangePath, LLC – AdvisorShares STAR Global Buy-Write ETF |
Portfolio Manager |
Dollar Range of Shares Owned in the Fund* |
Kenneth R. Hyman |
$100,001 - $500,000 |
Robert Kellogg |
None |
Rebecca M. Valdez |
None |
Total number of other accounts managed by Portfolio Manager(s) within each category below and the total assets in the accounts managed within each category below. |
||||||
Name |
Registered Investment Companies |
Other Pooled Investment Vehicles |
Other Accounts |
|||
Number of Accounts |
Total Assets (in millions) |
Number of Accounts |
Total Assets (in millions) |
Number of Accounts |
Total Assets (in millions) |
|
Kenneth R. Hyman |
0 |
$0 |
0 |
$0 |
4081 |
$471,194 |
Robert Kellogg |
0 |
$0 |
0 |
$0 |
4081 |
$471,194 |
Rebecca M. Valdez |
0 |
$0 |
0 |
$0 |
4081 |
$471,194 |
For other accounts managed by Portfolio Manager(s) within each category below, number of accounts and the total assets in the accounts with respect to which the advisory fee is based on the performance of the account. |
||||||
Name |
Registered Investment Companies |
Other Pooled Investment Vehicles |
Other Accounts |
|||
Number of Accounts |
Total Assets (in millions) |
Number of Accounts |
Total Assets (in millions) |
Number of Accounts |
Total Assets (in millions) |
|
Kenneth R. Hyman |
0 |
$0 |
0 |
$0 |
1 |
$.269 |
Robert Kellogg |
0 |
$0 |
0 |
$0 |
1 |
$.269 |
Rebecca M. Valdez |
0 |
$0 |
0 |
$0 |
1 |
$.269 |
● | CSM Advisors, LLC – AdvisorShares North Square McKee Core Reserves ETF and AdvisorShares North Square McKee ESG Core Bond ETF |
Portfolio Manager |
Dollar Range of Shares Owned In AdvisorShares North Square McKee Core Reserves ETF* |
Dollar Range of Shares Owned In AdvisorShares North Square McKee ESG Core Bond ETF* |
Brian Allen |
None |
None |
Bryan Johanson |
None |
None |
Jack White |
None |
None |
Andrew Faderewski |
None |
None |
Total number of other accounts managed by Portfolio Manager(s) within each category below and the total assets in the accounts managed within each category below. |
||||||
Name |
Registered Investment Companies |
Other Pooled Investment Vehicles |
Other Accounts |
|||
Number of Accounts |
Total Assets (in millions) |
Number of Accounts |
Total Assets (in millions) |
Number of Accounts |
Total Assets (in millions) |
|
Brian Allen |
5 |
$868.80 |
1 |
$276.65 |
292 |
$7,071.94 |
Bryan Johanson |
5 |
$868.80 |
1 |
$276.65 |
292 |
$7,071.94 |
Jack White |
5 |
$868.80 |
1 |
$276.65 |
292 |
$7,071.94 |
Andrew Faderewski |
5 |
$868.80 |
1 |
$276.65 |
292 |
$7,071.94 |
For other accounts managed by Portfolio Manager(s) within each category below, number of accounts and the total assets in the accounts with respect to which the advisory fee is based on the performance of the account. |
||||||
Name |
Registered Investment Companies |
Other Pooled Investment Vehicles |
Other Accounts |
|||
Number of Accounts |
Total Assets |
Number of Accounts |
Total Assets |
Number of Accounts |
Total Assets |
|
Brian Allen |
0 |
$0 |
0 |
$0 |
1 |
$50.51 |
Bryan Johanson |
0 |
$0 |
0 |
$0 |
1 |
$50.51 |
Jack White |
0 |
$0 |
0 |
$0 |
1 |
$50.51 |
Andrew Faderewski |
0 |
$0 |
0 |
$0 |
1 |
$50.51 |
● | Dorsey, Wright & Associates, LLC – AdvisorShares Dorsey Wright ADR ETF, AdvisorShares Dorsey Wright Micro-Cap ETF and AdvisorShares Dorsey Wright Short ETF |
Portfolio Manager |
Dollar Range of Shares Owned In AdvisorShares Dorsey Wright ADR ETF* |
Dollar Range of Shares Owned In AdvisorShares Dorsey Wright Micro-Cap ETF* |
Dollar Range of Shares Owned In AdvisorShares Dorsey Wright Short ETF* |
John G. Lewis |
$100,001 - $500,000 |
$100,001 - $500,000 |
None |
Total number of other accounts managed by Portfolio Manager(s) within each category below and the total assets in the accounts managed within each category below. |
||||||
Name |
Registered Investment Companies |
Other Pooled Investment Vehicles |
Other Accounts |
|||
Number of Accounts |
Total Assets (in millions) |
Number of Accounts |
Total Assets (in millions) |
Number of Accounts |
Total Assets (in millions) |
|
John G. Lewis |
25 |
$5057.18 |
0 |
$0 |
10,506 |
$3,065.55 |
● | DoubleLine Equity LP – AdvisorShares DoubleLine Value Equity ETF |
Total number of other accounts managed by Portfolio Manager(s) within each category below and the total assets in the accounts managed within each category below. |
||||||
Name |
Registered Investment Companies |
Other Pooled Investment Vehicles |
Other Accounts |
|||
Number of Accounts |
Total Assets (in millions) |
Number of Accounts |
Total Assets (in millions) |
Number of Accounts |
Total Assets (in millions) |
|
Emidio Checcone |
2 |
$38,857,430 |
0 |
$0 |
0 |
$0 |
Brian Ear |
0 |
$0 |
0 |
$0 |
0 |
$0 |
● | Newfleet Asset Management, LLC – AdvisorShares Newfleet Multi-Sector Income ETF |
Portfolio Manager |
Dollar Range of Shares Owned in the Fund* |
David L. Albrycht |
None |
Benjamin Caron |
$10,001 - $50,000 |
Total number of other accounts managed by Portfolio Manager(s) within each category below and the total assets in the accounts managed within each category below. |
||||||
Name |
Registered Investment Companies |
Other Pooled Investment Vehicles |
Other Accounts |
|||
Number of Accounts |
Total Assets (in millions) |
Number of Accounts |
Total Assets (in millions) |
Number of Accounts |
Total Assets (in millions) |
|
David L. Albrycht |
15 |
$9,316 |
2 |
$100 |
0 |
$0 |
Benjamin Caron |
4 |
$1,237 |
0 |
$0 |
0 |
$0 |
For other accounts managed by Portfolio Manager(s) within each category below, number of accounts and the total assets in the accounts with respect to which the advisory fee is based on the performance of the account. |
||||||
Name |
Registered Investment Companies |
Other Pooled Investment Vehicles |
Other Accounts |
|||
Number of Accounts |
Total Assets (in millions) |
Number of Accounts |
Total Assets (in millions) |
Number of Accounts |
Total Assets (in millions) |
|
David L. Albrycht |
2 |
$288 |
0 |
$0 |
0 |
$0 |
Benjamin Caron |
0 |
$0 |
0 |
$0 |
0 |
$0 |
● | Ranger Alternative Management, LP – AdvisorShares Ranger Equity Bear ETF |
Portfolio Manager |
Dollar Range of Shares Owned in the Fund* |
John Del Vecchio |
$1 - $10,000 |
Brad H. Lamensdorf |
None |
Total number of other accounts managed by Portfolio Manager(s) within each category below and the total assets in the accounts managed within each category below. |
||||||
Name |
Registered Investment Companies |
Other Pooled Investment Vehicles |
Other Accounts |
|||
Number of Accounts |
Total Assets (in millions) |
Number of Accounts |
Total Assets (in millions) |
Number of Accounts |
Total Assets (in millions) |
|
John Del Vecchio |
0 |
$0 |
0 |
$0 |
0 |
$0 |
Brad H. Lamensdorf |
0 |
$0 |
0 |
$0 |
2 |
$2 |
For other accounts managed by Portfolio Manager(s) within each category below, number of accounts and the total assets in the accounts with respect to which the advisory fee is based on the performance of the account. |
||||||
Name |
Registered Investment Companies |
Other Pooled Investment Vehicles |
Other Accounts |
|||
Number of Accounts |
Total Assets (in millions) |
Number of Accounts |
Total Assets (in millions) |
Number of Accounts |
Total Assets (in millions) |
|
John Del Vecchio |
0 |
$0 |
0 |
$0 |
0 |
$0 |
Brad H. Lamensdorf |
0 |
$0 |
0 |
$0 |
2 |
$2 |
● | ThinkBetter, LLC – AdvisorShares Q Portfolio Blended Allocation ETF and AdvisorShares Q Dynamic Growth ETF |
Portfolio Manager |
Dollar Range of Shares Owned in the Fund* |
Ron Piccinini |
$50,001 - $100,000 |
Total number of other accounts managed by Portfolio Manager(s) within each category below and the total assets in the accounts managed within each category below. |
||||||
Name |
Registered Investment Companies |
Other Pooled Investment Vehicles |
Other Accounts |
|||
Number of Accounts |
Total Assets (in millions) |
Number of Accounts |
Total Assets (in millions) |
Number of Accounts |
Total Assets (in millions) |
|
Ron Piccinini |
0 |
$0 |
0 |
$0 |
11 |
$351,806,488.56 |
Fund |
Fund Inception Date |
Fiscal Year Ended June 30, 2021 |
Fiscal Year Ended June 30, 2020 |
Fiscal Year Ended June 30, 2019 |
AdvisorShares Alpha DNA Equity Sentiment ETF |
2/2/2021 |
$2,331 |
* |
* |
AdvisorShares Dorsey Wright Alpha Equal Weight ETF |
12/26/2019 |
$30,127 |
$7,160 |
* |
AdvisorShares Dorsey Wright FSM All Cap World ETF |
12/26/2019 |
$45,557 |
$6,816 |
* |
AdvisorShares Dorsey Wright FSM US Core ETF |
12/26/2019 |
$31,490 |
$6,822 |
* |
AdvisorShares Dorsey Wright ADR ETF |
7/20/2010 |
$69,062 |
$88,229 |
$86,538 |
AdvisorShares Dorsey Wright Micro-Cap ETF |
7/10/2018 |
$60,972 |
$45,445 |
$8,025 |
AdvisorShares Dorsey Wright Short ETF |
7/10/2018 |
$63,708 |
$47,058 |
$9,170 |
AdvisorShares DoubleLine Value Equity ETF |
1/4/2011 |
$66,146 |
$86,656 |
$75,500 |
AdvisorShares Focused Equity ETF |
9/20/2016 |
$65,334 |
$85,391 |
$63,003 |
AdvisorShares Hotel ETF |
4/20/2021 |
$6 |
* |
* |
AdvisorShares Newfleet Multi-Sector Income ETF |
3/19/2013 |
$66,748 |
$87,121 |
$75,500 |
AdvisorShares North Square McKee Core Reserves ETF |
1/14/2012 |
$67,420 |
$87,842 |
$75,500 |
AdvisorShares North Square McKee ESG Core Bond ETF |
6/20/2011 |
$43,606 |
$33,769 |
$75,500 |
AdvisorShares Pure Cannabis ETF |
4/17/2019 |
$53,278 |
$30,386 |
$0 |
AdvisorShares Pure US Cannabis ETF |
9/1/2020 |
$59,240 |
* |
* |
AdvisorShares Q Dynamic Growth ETF |
12/28/2020 |
$8,136 |
* |
* |
AdvisorShares Q Portfolio Blended Allocation ETF |
12/28/2020 |
$7,587 |
* |
* |
AdvisorShares Ranger Equity Bear ETF |
1/26/2011 |
$69,995 |
$91,940 |
$75,500 |
AdvisorShares Restaurant ETF |
4/20/2021 |
$6 |
* |
* |
AdvisorShares STAR Global Buy-Write ETF |
9/17/2012 |
$65,036 |
$85,226 |
$75,500 |
AdvisorShares Vice ETF |
12/12/2017 |
$64,974 |
$66,398 |
$23,733 |
AdvisorShares Alpha DNA Equity Sentiment ETF |
AdvisorShares Dorsey Wright Alpha Equal Weight ETF |
AdvisorShares Dorsey Wright FSM All Cap World ETF |
AdvisorShares Dorsey Wright FSM US Core ETF |
|
Gross income from securities lending activities |
$1,108 |
$4,719 |
$15,865 |
$36,107 |
Fees and/or compensation for securities lending activities and related services |
||||
Fees paid to securities lending agent from revenue split |
$(1,065) |
$(1,645) |
$(19,747) |
$(15,229) |
Fees paid for any cash collateral management service (including fees deducted from a pooled cash collateral reinvestment vehicle) that are not included in the revenue split |
- |
- |
- |
- |
AdvisorShares Alpha DNA Equity Sentiment ETF |
AdvisorShares Dorsey Wright Alpha Equal Weight ETF |
AdvisorShares Dorsey Wright FSM All Cap World ETF |
AdvisorShares Dorsey Wright FSM US Core ETF |
|
Administrative fees not included in revenue split |
- |
- |
- |
- |
Indemnification fee not included in revenue split |
- |
- |
- |
- |
Rebate (paid to borrower) |
- |
- |
- |
- |
Rebate (due from borrower) |
$2,444 |
$769 |
$49,961 |
$14,660 |
Other fees not included in revenue split (specify) |
- |
- |
- |
- |
Aggregate fees/compensation for securities lending activities |
$1,379 |
$(877) |
$30,214 |
$(569) |
Net income from securities lending activities |
$2,487 |
$3,842 |
$46,078 |
$35,538 |
AdvisorShares Dorsey Wright ADR ETF |
AdvisorShares Dorsey Wright Micro-Cap ETF |
AdvisorShares DoubleLine Value Equity ETF |
AdvisorShares Focused Equity ETF |
|
Gross income from securities lending activities |
$18,857 |
$2,864 |
$690 |
$2,470 |
Fees and/or compensation for securities lending activities and related services |
||||
Fees paid to securities lending agent from revenue split |
$(16,173) |
$(6,228) |
$(803) |
$(752) |
Fees paid for any cash collateral management service (including fees deducted from a pooled cash collateral reinvestment vehicle) that are not included in the revenue split |
- |
- |
- |
- |
Administrative fees not included in revenue split |
- |
- |
- |
- |
Indemnification fee not included in revenue split |
- |
- |
- |
- |
Rebate (paid to borrower) |
- |
- |
- |
- |
Rebate (due from borrower) |
$35,066 |
$17,917 |
$1,987 |
$39 |
Other fees not included in revenue split (specify) |
- |
- |
- |
- |
Aggregate fees/compensation for securities lending activities |
$18,893 |
$11,689 |
$1,184 |
$(713) |
Net income from securities lending activities |
$37,751 |
$14,553 |
$1,875 |
$1,756 |
AdvisorShares Hotel ETF |
AdvisorShares Newfleet Multi- Sector Income ETF |
AdvisorShares North Square McKee Core Reserves ETF |
AdvisorShares North Square McKee ESG Core Bond ETF |
|
Gross income from securities lending activities |
$41 |
$842 |
$1,511 |
$1,600 |
Fees and/or compensation for securities lending activities and related services |
||||
Fees paid to securities lending agent from revenue split |
$(26) |
$(969) |
$(912) |
$(7,742) |
Fees paid for any cash collateral management service (including fees deducted from a pooled cash collateral reinvestment vehicle) that are not included in the revenue split |
- |
- |
- |
- |
Administrative fees not included in revenue split |
- |
- |
- |
- |
Indemnification fee not included in revenue split |
- |
- |
- |
- |
Rebate (paid to borrower) |
- |
- |
- |
- |
Rebate (due from borrower) |
$46 |
$2,391 |
$1,528 |
$24,212 |
Other fees not included in revenue split (specify) |
- |
- |
- |
- |
Aggregate fees/compensation for securities lending activities |
$20 |
$1,422 |
$617 |
$16,470 |
Net income from securities lending activities |
$61 |
$2,264 |
$2,128 |
$18,070 |
AdvisorShares Pure Cannabis ETF |
AdvisorShares Pure US Cannabis ETF |
AdvisorShares Q Dynamic Growth ETF |
AdvisorShares Q Portfolio Blended Allocation ETF |
|
Gross income from securities lending activities |
$144,946 |
$16,282 |
$5,200 |
$1,127 |
Fees and/or compensation for securities lending activities and related services |
||||
Fees paid to securities lending agent from revenue split |
$(590,817) |
$(31,143) |
$(7,128) |
$(1,117) |
Fees paid for any cash collateral management service (including fees deducted from a pooled cash collateral reinvestment vehicle) that are not included in the revenue split |
- |
- |
- |
- |
Administrative fees not included in revenue split |
- |
- |
- |
- |
AdvisorShares Pure Cannabis ETF |
AdvisorShares Pure US Cannabis ETF |
AdvisorShares Q Dynamic Growth ETF |
AdvisorShares Q Portfolio Blended Allocation ETF |
|
Indemnification fee not included in revenue split |
- |
- |
- |
- |
Rebate (paid to borrower) |
$(1.70) |
- |
- |
- |
Rebate (due from borrower) |
$1,824,485 |
$87,535 |
$18,563 |
$2,598 |
Other fees not included in revenue split (specify) |
- |
- |
- |
- |
Aggregate fees/compensation for securities lending activities |
$1,233,666 |
$56,391 |
$11,434 |
$1,481 |
Net income from securities lending activities |
$1,378,612 |
$72,673 |
$16,635 |
$2,608 |
AdvisorShares Restaurant ETF |
AdvisorShares STAR Global Buy-Write ETF |
AdvisorShares Vice ETF |
||
Gross income from securities lending activities |
$23 |
$630 |
$1,708 |
|
Fees and/or compensation for securities lending activities and related services |
||||
Fees paid to securities lending agent from revenue split |
$(7) |
$698 |
$(2,363) |
|
Fees paid for any cash collateral management service (including fees deducted from a pooled cash collateral reinvestment vehicle) that are not included in the revenue split |
- |
- |
- |
|
Administrative fees not included in revenue split |
- |
- |
- |
|
Indemnification fee not included in revenue split |
- |
- |
- |
|
Rebate (paid to borrower) |
- |
- |
- |
|
Rebate (due from borrower) |
$1 |
$1,699 |
$6,172 |
|
Other fees not included in revenue split (specify) |
- |
- |
- |
|
Aggregate fees/compensation for securities lending activities |
$(6) |
$1,001 |
$3,809 |
|
Net income from securities lending activities |
$17 |
$1,630 |
$5,517 |
Fund |
Creation Transaction Fee* |
ALL FUNDS |
$500 |
Fund |
Redemption Transaction Fee* |
ALL FUNDS |
$500 |
DTC Participant |
Percentage Owned |
TD Ameritrade Clearing, Inc. 200 S 108 th Ave.Omaha, NE 68154 |
91.61% |
Charles Schwab & Co., Inc. 2423 E Lincoln Drive Phoenix, AZ 85016-1215 |
5.96% |
DTC Participant |
Percentage Owned |
National Financial Services LLC 499 Washington Blvd. Jersey City, NJ 07310 |
98.30% |
DTC Participant |
Percentage Owned |
National Financial Services LLC 499 Washington Blvd. Jersey City, NJ 07310 |
59.12% |
Raymond James & Associates, Inc. 880 Carilion Parkway Saint Petersburg, FL 33716 |
24.45% |
LPL Financial LLC 1055 LPL Way Fort Mill, SC 29715 |
6.49% |
DTC Participant |
Percentage Owned |
National Financial Services LLC 499 Washington Blvd. Jersey City, NJ 07310 |
93.96% |
DTC Participant |
Percentage Owned |
Wells Fargo Clearing Services, LLC 2801 Market Street St. Louis, MO 63103 |
16.80% |
Morgan Stanley Smith Barney LLC 1300 Thames St., 6 th Fl.Baltimore, MD 21231 |
13.87% |
National Financial Services LLC 499 Washington Blvd. Jersey City, NJ 07310 |
10.84% |
LPL Financial LLC 1055 LPL Way Fort Mill, SC 29715 |
9.14% |
Charles Schwab & Co., Inc. 2423 E Lincoln Drive Phoenix, AZ 85016-1215 |
7.97% |
TD Ameritrade Clearing, Inc. 200 S. 108 th Ave.Omaha, NE 68154 |
7.25% |
J.P. Morgan Securities LLC/JPMC 500 Stanton Christiana Rd. Newark, DE 19713 |
6.12% |
Raymond James & Associates, Inc. 880 Carilion Parkway Saint Petersburg, FL 33716 |
5.36% |
DTC Participant |
Percentage Owned |
National Financial Services LLC 499 Washington Blvd. Jersey City, NJ 07310 |
57.66% |
RBC Capital Markets, LLC 60 S, 6 th St.Minneapolis, MN 55402-4400 |
8.81% |
Pershing LLC One Pershing Plaza Jersey City, NJ 07399 |
7.77% |
Charles Schwab & Co., Inc. 2423 E Lincoln Drive Phoenix, AZ 85016-1215 |
7.61% |
TD Ameritrade Clearing, Inc. 200 S. 108 th Ave.Omaha, NE 68154 |
5.38% |
DTC Participant |
Percentage Owned |
Stifel, Nicolaus & Company, Inc 501 N Broadway One Financial Plaza St. Louis, MO 63102 |
16.32% |
RBC Capital Markets, LLC 60 S 6 th St.Minneapolis, MN 55402-4400 |
11.53% |
Pershing LLC One Pershing Plaza Jersey City, NJ 07399 |
11.19% |
Janney Montgomery Scott LLC C/O Mediant Communications Inc. 200 Regency Forest Drive Cary, NC 27518 |
10.32% |
National Financial Services LLC 499 Washington Blvd. Jersey City, NJ 07310 |
9.31% |
TD Ameritrade Clearing, Inc. 200 S 108 th Ave.Omaha, NE 68154-2631 |
9.17% |
Charles Schwab & Co., Inc. 2423 E Lincoln Drive Phoenix, AZ 85016-1215 |
8.46% |
E*TRADE Securities LLC 200 Hudson Street Suite 501 Jersey City, NJ 07311 |
6.47% |
DTC Participant |
Percentage Owned |
National Financial Services LLC 499 Washington Blvd. Jersey City, NJ 07310 |
19.91% |
Charles Schwab & Co., Inc. 2423 E Lincoln Drive Phoenix, AZ 85016-1215 |
17.40% |
TD Ameritrade Clearing, Inc. 200 S. 108 th Ave.Omaha, NE 68154 |
11.51% |
Pershing LLC One Pershing Plaza Jersey City, NJ 07399 |
7.74% |
Morgan Stanley Smith Barney LLC 1300 Thames St., 6 th Fl.Baltimore, MD 21231 |
5.39% |
LPL Financial LLC 1055 LPL Way Fort Mill, SC 29715 |
5.00% |
DTC Participant |
Percentage Owned |
TD Ameritrade Clearing, Inc. 200 S 108 th Ave.Omaha, NE 68154 |
25.46% |
National Financial Services LLC 499 Washington Blvd. Jersey City, NJ 07310 |
25.33% |
Charles Schwab & Co., Inc. 2423 E Lincoln Drive Phoenix, AZ 85016-1215 |
20.84% |
DTC Participant |
Percentage Owned |
TD Ameritrade Clearing, Inc. 200 S 108 th Ave.Omaha, NE 68154 |
37.79% |
National Financial Services LLC 499 Washington Blvd. Jersey City, NJ 07310 |
18.21% |
Charles Schwab & Co., Inc. 2423 E Lincoln Drive Phoenix, AZ 85016-1215 |
15.92% |
CIBC World Markets Inc. 22 Front Street Toronto, ON M5J 2W5, Canada |
6.44% |
DTC Participant |
Percentage Owned |
Raymond James & Associates, Inc. 880 Carilion Parkway Saint Petersburg, FL 33716 |
18.15% |
Charles Schwab & Co., Inc. 2423 E Lincoln Drive Phoenix, AZ 85016-1215 |
15.01% |
National Financial Services LLC 499 Washington Blvd. Jersey City, NJ 07310 |
13.15% |
Hilltop Securities Inc. 1201 Elm Street Suite 3500 Dallas, TX 75270 |
12.37% |
Pershing LLC One Pershing Plaza Jersey City, NJ 07399 |
10.46% |
TD Ameritrade Clearing, Inc. 200 S 108 th Ave.Omaha, NE 68154 |
10.04% |
RBC Capital Markets, LLC 60 S 6 th St.Minneapolis, MN 55402-4400 |
6.59% |
DTC Participant |
Percentage Owned |
BNY Mellon/RE MidCap SPDRS 525 William Penn Place Pittsburgh, PA 15259 |
75.00% |
BOFA Securities, Inc. 4804 Dear Lake Dr. E Jacksonville, FL 32246 |
9.70% |
LEK Securities Corporation 140 Broadway, 29 th Fl.New York, NY 10005 |
7.87% |
DTC Participant |
Percentage Owned |
Charles Schwab & Co., Inc. 2423 E Lincoln Drive Phoenix, AZ 85016-1215 |
27.84% |
TD Ameritrade Clearing, Inc. 200 S 108 th Ave.Omaha, NE 68154 |
15.85% |
JPMorgan Chase Bank, N.A. 500 Stanton Christiana Rd. Newark, DE 19713-2107 |
14.21% |
BofA Securities, Inc. 4804 Dear Lake Dr. E Jacksonville, FL 32246 |
9.19% |
Interactive Brokers LLC 2 Pickwick Plaza, 2 nd Fl.Greenwich, CT 06830 |
7.24% |
J.P. Morgan Securities LLC/JPMC 500 Stanton Christiana Rd. Newark, DE 19713 |
6.78% |
DTC Participant |
Percentage Owned |
National Financial Services LLC 499 Washington Blvd. Jersey City, NJ 07310 |
23.48% |
Charles Schwab & Co., Inc. 2423 E Lincoln Drive Phoenix, AZ 85016-1215 |
14.52% |
TD Ameritrade Clearing, Inc. 200 S 108 th Ave.Omaha, NE 68154 |
12.68% |
E*TRADE Securities LLC 200 Hudson Street Suite 501 Jersey City, NJ 07311 |
5.87% |
DTC Participant |
Percentage Owned |
National Financial Services LLC 499 Washington Blvd. Jersey City, NJ 07310 |
17.42% |
Charles Schwab & Co., Inc. 2423 E Lincoln Drive Phoenix, AZ 85016-1215 |
13.54% |
TD Ameritrade Clearing, Inc. 200 S 108 th Ave.Omaha, NE 68154 |
11.00% |
Morgan Stanley & Co. LLC 1300 Thames St. 5 th FloorBaltimore, MD 21231 |
6.46% |
BofA Securities, Inc. 4804 Dear Lake Dr. E Jacksonville, FL 32246 |
5.98% |
DTC Participant |
Percentage Owned |
TD Ameritrade Clearing, Inc. 200 S 108 th Ave.Omaha, NE 68154 |
51.03% |
Pershing LLC One Pershing Plaza Jersey City, NJ 07399 |
32.16% |
Charles Schwab & Co., Inc. 2423 E Lincoln Drive Phoenix, AZ 85016-1215 |
11.75% |
DTC Participant |
Percentage Owned |
Pershing LLC One Pershing Plaza Jersey City, NJ 07399 |
41.95% |
TD Ameritrade Clearing, Inc. 200 S 108 th Ave.Omaha, NE 68154 |
25.51% |
Charles Schwab & Co., Inc. 2423 E Lincoln Drive Phoenix, AZ 85016-1215 |
17.41% |
National Financial Services LLC 499 Washington Blvd. Jersey City, NJ 07310 |
11.28% |
DTC Participant |
Percentage Owned |
National Financial Services LLC 499 Washington Blvd. Jersey City, NJ 07310 |
12.55% |
Charles Schwab & Co., Inc. 2423 E Lincoln Drive Phoenix, AZ 85016-1215 |
11.08% |
TD Ameritrade Clearing, Inc. 200 S 108 th Ave.Omaha, NE 68154 |
10.65% |
Morgan Stanley Smith Barney LLC 1300 Thames St., 6 th Fl.Baltimore, MD 21231 |
10.60% |
Pershing LLC One Pershing Plaza Jersey City, NJ 07399 |
8.08% |
Stifel, Nicolaus & Company, Inc 501 N Broadway One Financial Plaza St. Louis, MO 63102 |
6.71% |
UBS Financial Services Inc. 1000 Harbor Blvd. Weehawken, NJ 07086 |
6.42% |
DTC Participant |
Percentage Owned |
National Financial Services LLC 499 Washington Blvd. Jersey City, NJ 07310 |
23.77% |
TD Ameritrade Clearing, Inc. 200 S 108 th Ave.Omaha, NE 68154 |
11.46% |
E*TRADE Securities LLC 200 Hudson Street Suite 501 Jersey City, NJ 07311 |
8.69% |
Citibank, N.A. 3801 Citibank Center B/3RD Floor/Zone 12 Tampa, FL 33610 |
8.39% |
BofA Securities, Inc. 4804 Dear Lake Dr. E Jacksonville, FL 32246 |
7.11% |
Charles Schwab & Co., Inc. 2423 E Lincoln Drive Phoenix, AZ 85016-1215 |
6.91% |
DTC Participant |
Percentage Owned |
Charles Schwab & Co., Inc. 2423 E Lincoln Drive Phoenix, AZ 85016-1215 |
49.94% |
TD Ameritrade Clearing, Inc. 200 S 108 th Ave.Omaha, NE 68154 |
32.28% |
Goldman Sachs & Co. LLC 30 Hudson St. Jersey City, NJ 07302 |
7.76% |
DTC Participant |
Percentage Owned |
National Financial Services LLC 499 Washington Blvd. Jersey City, NJ 07310 |
15.67% |
Charles Schwab & Co., Inc. 2423 E Lincoln Drive Phoenix, AZ 85016-1215 |
15.61% |
DTC Participant |
Percentage Owned |
TD Ameritrade Clearing, Inc. 200 S 108 th Ave.Omaha, NE 68154 |
14.17% |
Pershing LLC One Pershing Plaza Jersey City, NJ 07399 |
8.00% |
E*TRADE Securities LLC 200 Hudson Street Suite 501 Jersey City, NJ 07311 |
7.77% |
LPL Financial LLC 1055 LPL Way Fort Mill, SC 29715 |
6.34% |
Vanguard Marketing Corporation 14321 N. Northsight Blvd. Scottsdale, AZ 85260 |
6.07% |
● | Adopt and implement written policies and procedures that are reasonably designed to ensure that client securities are voted in the best interests of clients. Such policies must include how an adviser addresses material conflicts that may arise between an adviser's interests and those of its client(s); |
● | Disclose to clients how they may obtain information from the adviser with respect to the voting of proxies for their securities; |
● | Describe to clients a summary of its proxy voting policies and procedures and, upon request, furnish a copy to its clients; and |
● | Maintain certain records relating to the Adviser’s proxy voting activities. |
● | Maintain a copy of the current proxy voting procedures and any iterations thereof for the proper retention period. |
● | Ensure proxy voting performed by the Adviser on behalf of clients is pursuant to the proper written legal authority as provided for in the advisory agreement or other legally binding agreement. |
● | Review these proxy voting procedures no less frequently than annually to ensure they remain adequate and current. |
● | Maintain appropriate documentation with respect to proxies received including a copy of the proxy statement; |
● | Where it has responsibility to vote proxies on behalf of a particular client, the Adviser endeavors to vote such proxies without conflict and in the best interests of its clients. In the event of an Adviser conflict, Adviser will document the conflict, engage an impartial independent third party to fulfill the Adviser’s obligation, and document any third-party response along with any supporting documentation. |
● | Maintain a record of each vote cast and any documents supporting and memorializing the Adviser’s decision on how votes were cast. |
● | Retain a copy of any written request for information on how the advisor voted proxies on behalf of the client along with any written response to any request (whether written or oral) on how the adviser voted proxies on behalf of the requesting client. |
● | Obtain an undertaking from the third party that the third party can provide all required documentation promptly upon request; |
● | Rule 30b1-4 under the Investment Company Act requires registered investment companies to file their complete proxy voting records on “Form N-PX” for the 12-month period ended June 30 by August 31 of each year. Adviser will provide the necessary data to the appropriate Service Provider to allow for the timely filings of all such reports on Form N-PX. |
● | Ensure that voting guidelines for each Fund are adhered to; and |
● | Monitor the voting activities of the Voting Agent as described below. |
● | sampling of votes cast by the Voting Agent to confirm that the proxy guidelines selected by the Client are being followed; |
● | performing periodic due diligence on the Voting Agent to determine if the Voting Agent continues to have capacity and competency to carry out its proxy obligations; |
● | reviewing the Voting Agent’s policies and procedures, with a particular focus on those relating to identifying and addressing conflicts of interest and ensuring that current and accurate information is used in creating recommendations; |
● | inquiring as to the Voting Agent's compliance with relevant regulatory regimes; |
● | requesting that the Voting Agent notify Adviser if there is material change to its policies and procedures, particularly with respect to conflicts, or material business practices ( e.g. , entering or exiting new lines of business), and reviewing any such change; or |
● | participating in the Voting Agent’s policy formulation processes. |
· |
Voting Securities on loan |
● | Amendments to management incentive plans |
● | The authorization of additional common or preferred stock |
● | Initiation or termination of barriers to takeover or acquisition |
● | Mergers or acquisitions |
● | Changes in the state of incorporation |
● | Corporate reorganizations |
● | Term limits for board members |
· |
"Contested" director slates |
1. | Alpha DNA may disclose the existence and nature of the conflict to the client(s) owning the client the client Securities, and seek directions on how to vote the proxies; |
2. | Alpha DNA may abstain from voting, particularly if there are conflicting client interests (for example, where client accounts hold different Client Securities in a competitive merger situation); or |
3. |
Alpha DNA may follow the recommendations of an independent proxy voting service in voting the proxies. |
Objective |
Policy |
1. | Anti-takeover amendments such as fair price provisions and staggered board provisions. |
2. | Poison pill provisions designed to discourage another entity from seeking control. |
3. | Greenmail attempts. |
4. | Golden parachutes and related management entrenchment measures. |
Procedure |
1. | Upon receipt, all proxy material will be forwarded to a Senior Portfolio Manager (or delegate) for his/her review. Specifically, proxies will be reviewed for material conflicts of interest and in such cases will be addressed by the Compliance Department to ensure that resolutions are voted in the best interest of shareholders. |
2. | CS McKee will vote the resolutions according to the instructions of the Senior Portfolio Manager (or delegate). |
3. | If any proposals are considered to have a potentially negative impact on investment performance, the Senior Portfolio Manager (or delegate) will review the resolutions thoroughly with the Portfolio Manager responsible for the investment. |
4. | After this review, if the Senior Portfolio Manager (or delegate) determines that specific proposals could have a negative impact on investment performance, they will vote against those proposals. |
5. | The Senior Portfolio Manager (or delegate) will review any exceptional provisions which are of significant investment interest with the President before voting on those issues. |
6. | Copies of all proxy material, along with our voting record, will be maintained by CS McKee and can be obtained by emailing info@csmckee.com. |
7. | The Management Committee will review the proxy voting policies annually. |
● | The default will be for CS McKee to vote all proxies for securities that it currently owns that are received via mail or electronic proxy service. It is the client’s responsibility to make sure that proxies are forwarded to our attention. CS McKee does not reconcile shares voted against those owned by our clients. |
● | Clients must notify CS McKee in writing if they do not want us to vote proxies. These notifications will be kept on file. If CS McKee is not authorized to vote proxies, the client will receive their proxy statements directly from their custodian. |
● | Clients may direct CS McKee to vote any solicitation by contacting their relationship manager. |
● | How clients can obtain information from Dorsey Wright on how their securities were voted. |
● | Description of Institutional Shareholder Services’ proxy voting policies. The description will be a concise summary of the policies stated herein. |
● | Disclosure that a copy of Dorsey Wright’s complete policy on voting proxies is available upon request. |
● | If a client requests a copy of our complete proxy voting policy, we must supply it. |
● | Proxy voting records are maintained by Institutional Shareholder Services. |
Who: | CCO or Compliance Delegate |
What: | Proxy Voting Process as outsourced to Institutional Shareholder Services |
When: | Periodically monitor the voting of proxies (quarterly) |
How: | Receive verification from ISS |
Where: | Maintained in Compliance share drive. |
I. |
Background |
II. |
Issue |
III. |
Policy – Proxies and Corporate Actions; Role of Third-Party Proxy Agent |
IV. |
Proofs of Claim |
V. |
Class Actions Policy |
VI. |
Procedures for Lent Securities and Issuers in Share-blocking Countries |
VII. |
Proxy Voting Committee; Oversight |
VIII. |
Procedures for Material Conflicts of Interest |
IX. |
Procedures for Proxy Solicitation |
X. |
Additional Procedures for the Funds |
XI. |
Recordkeeping |
A. | DoubleLine must maintain the documentation described in this Policy for a period of not less than five (5) years from the end of the fiscal year during which the last entry was made on such record, the first two (2) years at its principal place of business. DoubleLine will be responsible for the following procedures and for ensuring that the required documentation is retained, including with respect to class action claims or corporate actions other than proxy voting. DoubleLine has engaged Glass Lewis to retain the aforementioned proxy voting records on behalf of DoubleLine (and its Clients). |
B. |
Client request to review proxy votes : |
C. |
Examples of proxy voting records: |
- | Documents prepared or created by DoubleLine in connection with DoubleLine’s reasonable investigation (or more detailed analysis) of a matter, or that were material to making a decision on how to vote, or that memorialized the basis for the decision. Documentation or notes or any communications received from third parties, other industry analysts, third party service providers, company’s management discussions, etc. that were material in the basis for the decision. |
XII. |
Disclosure |
● | For trustee nominees in uncontested elections |
● | For management nominees in contested elections |
● | For ratifying auditors, except against if the previous auditor was dismissed because of a disagreement with the company or if the fees for non-audit services exceed 51% of total fees |
● | For changing the company name |
● | For approving other business |
● | For adjourning the meeting |
● | For technical amendments to the charter and/or bylaws |
● | For approving financial statements |
● | For increasing authorized common stock |
● | For decreasing authorized common stock |
● | For amending authorized common stock |
● | For the issuance of common stock, except against if the issued common stock has superior voting rights |
● | For approving the issuance or exercise of stock warrants |
● | For authorizing preferred stock, except against if the board has unlimited rights to set the terms and conditions of the shares |
● | For increasing authorized preferred stock, except against if the board has unlimited rights to set the terms and conditions of the shares |
● | For decreasing authorized preferred stock |
● | For canceling a class or series of preferred stock |
● | For amending preferred stock |
● | For issuing or converting preferred stock, except against if the shares have voting rights superior to those of other shareholders |
● | For eliminating preemptive rights |
● | For creating or restoring preemptive rights |
● | Against authorizing dual or multiple classes of common stock |
● | For eliminating authorized dual or multiple classes of common stock |
● | For amending authorized dual or multiple classes of common stock |
● | For increasing authorized shares of one or more classes of dual or multiple classes of common stock, except against if it will allow the company to issue additional shares with superior voting rights |
● | For a stock repurchase program |
● | For a stock split |
● | For a reverse stock split, except against if the company does not intend to proportionally reduce the number of authorized shares |
● | For merging with or acquiring another company |
● | For recapitalization |
● | For restructuring the company |
● | For bankruptcy restructurings |
● | For liquidations |
● | For reincorporating in a different state |
● | For spinning off certain company operations or divisions |
● | For the sale of assets |
● | Against eliminating cumulative voting |
● | For adopting cumulative voting |
● | For limiting the liability of trustees |
● | For setting the board size |
● | For allowing the trustees to fill vacancies on the board without shareholder approval |
● | Against giving the board the authority to set the size of the board as needed without shareholder approval |
● | For a proposal regarding the removal of trustees, except against if the proposal limits the removal of trustees to cases where there is legal cause |
● | For non-technical amendments to the company’s certificate of incorporation, except against if an amendment would have the effect of reducing shareholders’ rights |
● | For non-technical amendments to the company’s bylaws, except against if an amendment would have the effect of reducing shareholder’s rights |
● | Against a classified board |
● | Against amending a classified board |
● | For repealing a classified board |
● | Against ratifying or adopting a shareholder rights plan (poison pill) |
● | Against redeeming a shareholder rights plan (poison pill) |
● | Against eliminating shareholders’ right to call a special meeting |
● | Against limiting shareholders’ right to call a special meeting |
● | For restoring shareholders’ right to call a special meeting |
● | Against eliminating shareholders’ right to act by written consent |
● | Against limiting shareholders’ right to act by written consent |
● | For restoring shareholders’ right to act by written consent |
● | Against establishing a supermajority vote provision to approve a merger or other business combination |
● | For amending a supermajority vote provision to approve a merger or other business combination, except against if the amendment would increase the vote required to approve the transaction |
● | For eliminating a supermajority vote provision to approve a merger or other business combination |
● | Against adopting supermajority vote requirements (lock-ins) to change certain bylaw or charter provisions |
● | Against amending supermajority vote requirements (lock-ins) to change certain bylaw or charter provisions |
● | For eliminating supermajority vote requirements (lock-ins) to change certain bylaw or charter provisions |
● | Against expanding or clarifying the authority of the board of trustees to consider factors other than the interests of shareholders in assessing a takeover bid |
● | Against establishing a fair price provision |
● | Against amending a fair price provision |
● | For repealing a fair price provision |
● | For limiting the payment of greenmail |
● | Against adopting advance notice requirements |
● | For opting out of a state takeover statutory provision |
● | Against opt into a state takeover statutory provision |
● | For adopting a stock incentive plan for employees, except decide on a case-by-case basis if the plan dilution is more than 5% of outstanding common stock or if the potential dilution from all company plans, including the one proposed, is more than 10% of outstanding common stock |
● | For amending a stock incentive plan for employees, except decide on a case-by-case basis if the minimum potential dilution from all company plans, including the one proposed, is more than 10% of outstanding common stock |
● | For adding shares to a stock incentive plan for employees, except decide on a case-by-case basis if the plan dilution is more than 5% of outstanding common stock or if the potential dilution from all company plans, including the one proposed, is more than 10% of outstanding common stock |
● | For limiting per-employee option awards |
● | For extending the term of a stock incentive plan for employees |
● | Case-by-case on assuming stock incentive plans |
● | For adopting a stock incentive plan for non-employee trustees, except decide on a case-by-case basis if the plan dilution is more than 5% of outstanding common equity or if the minimum potential dilution from all plans, including the one proposed, is more than 10% of outstanding common equity |
● | For amending a stock incentive plan for non-employee trustees, except decide on a case-by-case basis if the minimum potential dilution from all plans, including the one proposed, is more than 10% of outstanding common equity |
● | For adding shares to a stock incentive plan for non-employee trustees, except decide on a case-by-case basis if the plan dilution is more than 5% of outstanding common equity or if the minimum potential dilution from all plans, including the one proposed, is more than 10% of the outstanding common equity |
● | For adopting an employee stock purchase plan, except against if the proposed plan allows employees to purchase stock at prices of less than 85% of the stock’s fair market value |
● | For amending an employee stock purchase plan, except against if the proposal allows employees to purchase stock at prices of less than 85% of the stock’s fair market value |
● | For adding shares to an employee stock purchase plan, except against if the proposed plan allows employees to purchase stock at prices of less than 85% of the stock’s fair market value |
● | For adopting a stock award plan, except decide on a case-by-case basis if the plan dilution is more than 5% of the outstanding common equity or if the minimum potential dilution from all plans, including the one proposed, is more than 10% of the outstanding common equity |
● | For amending a stock award plan, except against if the amendment shortens the vesting requirements or lessens the performance requirements |
● | For adding shares to a stock award plan, except decide on a case-by-case basis if the plan dilution is more than 5% of the outstanding common equity or if the minimum potential dilution from all plans, including the one proposed, is more than 10% of the outstanding common equity |
● | For adopting a stock award plan for non-employee trustees, except decide on a case-by-case basis if the plan dilution is more than 5% of the outstanding common equity or if the minimum potential dilution from all plans, including the one proposed, is more than 10% of the outstanding common equity |
● | For amending a stock award plan for non-employee trustees, except decide on a case-by-case basis if the minimum potential dilution from all plans is more than 10% of the outstanding common equity. |
● | For adding shares to a stock award plan for non-employee trustees, except decide on a case-by-case basis if the plan dilution is more than 5% of the outstanding common equity or if the minimum potential dilution from all plans, including the one proposed, is more than 10% of the outstanding common equity |
● | For approving an annual bonus plan |
● | For adopting a savings plan |
● | For granting a one-time stock option or stock award, except decide on a case-by-case basis if the plan dilution is more than 5% of the outstanding common equity |
● | For adopting a deferred compensation plan |
● | For approving a long-term bonus plan |
● | For approving an employment agreement or contract |
● | For amending a deferred compensation plan |
● | For amending an annual bonus plan |
● | For reapproving a stock option plan or bonus plan for purposes of OBRA |
● | For amending a long-term bonus plan |
● | For requiring shareholder ratification of auditors |
● | Against requiring the auditors to attend the annual meeting |
● | Against limiting consulting by auditors |
● | Against requiring the rotation of auditors |
● | Against restoring preemptive rights |
● | For asking the company to study sales, spin-offs, or other strategic alternatives |
● | For asking the board to adopt confidential voting and independent tabulation of the proxy ballots |
● | Against asking the company to refrain from counting abstentions and broker non-votes in vote tabulations |
● | Against eliminating the company’s discretion to vote unmarked proxy ballots. |
● | For providing equal access to the proxy materials for shareholders |
● | Against requiring a majority vote to elect trustees |
● | Against requiring the improvement of annual meeting reports |
● | Against changing the annual meeting location |
● | Against changing the annual meeting date |
● | Against asking the board to include more women and minorities as trustees. |
● | Against seeking to increase board independence |
● | Against limiting the period of time a trustee can serve by establishing a retirement or tenure policy |
● | Against requiring minimum stock ownership by trustees |
● | Against providing for union or employee representatives on the board of trustees |
● | For increasing disclosure regarding the board’s role in the development and monitoring of the company’s long-term strategic plan |
● | For creating a nominating committee of the board |
● | Against urging the creation of a shareholder committee |
● | Against asking that the chairman of the board of trustees be chosen from among the ranks of the non-employee trustees |
● | Against asking that a lead trustee be chosen from among the ranks of the non-employee trustees |
● | For adopting cumulative voting |
● | Against requiring trustees to place a statement of candidacy in the proxy statement |
● | Against requiring the nomination of two trustee candidates for each open board seat |
● | Against making trustees liable for acts or omissions that constitute a breach of fiduciary care resulting from a trustee’s gross negligence and/or reckless or willful neglect |
● | For repealing a classified board |
● | Against asking the board to redeem or to allow shareholders to vote on a poison pill shareholder rights plan |
● | Against repealing fair price provisions |
● | For restoring shareholders’ right to call a special meeting |
● | For restoring shareholders’ right to act by written consent |
● | For limiting the board’s discretion to issue targeted share placements or requiring shareholder approval before such block placements can be made |
● | For seeking to force the company to opt out of a state takeover statutory provision |
● | Against reincorporating the company in another state |
● | For limiting greenmail payments |
● | Against advisory vote on compensation |
● | Against restricting executive compensation |
● | For enhancing the disclosure of executive compensation |
● | Against restricting trustee compensation |
● | Against capping executive pay |
● | Against calling for trustees to be paid with company stock |
● | Against calling for shareholder votes on executive pay |
● | Against calling for the termination of trustee retirement plans |
● | Against asking management to review, report on, and/or link executive compensation to non-financial criteria, particularly social criteria |
● | Against seeking shareholder approval to reprice or replace underwater stock options |
● | For banning or calling for a shareholder vote on future golden parachutes |
● | Against seeking to award performance-based stock options |
● | Against establishing a policy of expensing the costs of all future stock options issued by the company in the company’s annual income statement |
● | Against requesting that future executive compensation be determined without regard to any pension fund income |
● | Against approving extra benefits under Supplemental Executive Retirement Plans (SERPs) |
● | Against requiring option shares to be held |
● | For creating a compensation committee |
● | Against requiring that the compensation committee hire its own independent compensation consultants-separate from the compensation consultants working with corporate management-to assist with executive compensation issues |
● | For increasing the independence of the compensation committee |
● | For increasing the independence of the audit committee |
● | For increasing the independence of key committees |
● | Against asking the company to develop or report on human rights policies |
● | Against asking the company to limit or end operations in Burma |
● | For asking management to review operations in Burma |
● | For asking management to certify that company operations are free of forced labor |
● | Against asking management to implement and/or increase activity on each of the principles of the U.S. Business Principles for Human Rights of Workers in China. |
● | Against asking management to develop social, economic, and ethical criteria that the company could use to determine the acceptability of military contracts and to govern the execution of the contracts |
● | Against asking management to create a plan of converting the company’s facilities that are dependent on defense contracts toward production for commercial markets |
● | Against asking management to report on the company’s government contracts for the development of ballistic missile defense technologies and related space systems |
● | Against asking management to report on the company’s foreign military sales or foreign offset activities |
● | Against asking management to limit or end nuclear weapons production |
● | Against asking management to review nuclear weapons production |
● | Against asking the company to establish shareholder-designated contribution programs |
● | Against asking the company to limit or end charitable giving |
● | For asking the company to increase disclosure of political spending and activities |
● | Against asking the company to limit or end political spending |
● | For requesting disclosure of company executives’ prior government service |
● | Against requesting affirmation of political nonpartisanship |
● | For asking management to report on or change tobacco product marketing practices, except against if the proposal calls for action beyond reporting |
● | Against severing links with the tobacco industry |
● | Against asking the company to review or reduce tobacco harm to health |
● | For asking management to review or promote animal welfare, except against if the proposal calls for action beyond reporting |
● | For asking the company to report or take action on pharmaceutical drug pricing or distribution, except against if the proposal asks for more than a report |
● | Against asking the company to take action on embryo or fetal destruction |
● | For asking the company to review or report on nuclear facilities or nuclear waste, except against if the proposal asks for cessation of nuclear-related activities or other action beyond reporting |
● | For asking the company to review its reliance on nuclear and fossil fuels, its development or use of solar and wind power, or its energy efficiency, except vote against if the proposal asks for more than a report. |
● | Against asking management to endorse the Ceres principles |
● | For asking the company to control generation of pollutants, except against if the proposal asks for action beyond reporting or if the company reports its omissions and plans to limit their future growth or if the company reports its omissions and plans to reduce them from established levels |
● | For asking the company to report on its environmental impact or plans, except against if management has issued a written statement beyond the legal minimum |
● | For asking management to report or take action on climate change, except against if management acknowledges a global warming threat and has issued company policy or if management has issued a statement and committed to targets and timetables or if the company is not a major emitter of greenhouse gases |
● | For asking management to report on, label, or restrict sales of bioengineered products, except against if the proposal asks for action beyond reporting or calls for a moratorium on sales of bioengineered products |
● | Against asking the company to preserve natural habitat |
● | Against asking the company to review its developing country debt and lending criteria and to report to shareholders on its findings |
● | Against requesting the company to assess the environmental, public health, human rights, labor rights, or other socioeconomic impacts of its credit decisions |
● | For requesting reports and/or reviews of plans and/or policies on fair lending practices, except against if the proposal calls for action beyond reporting |
● | Against asking the company to establish committees to consider issues related to facilities closure and relocation of work |
● | For asking management to report on the company’s affirmative action policies and programs, including releasing its EEO-1 forms and providing statistical data on specific positions within the company, except against if the company releases its EEO-1 reports |
● | Against asking management to drop sexual orientation from EEO policy |
● | Against asking management to adopt a sexual orientation non-discrimination policy |
● | For asking management to report on or review Mexican operations |
● | Against asking management to adopt standards for Mexican operations |
● | Against asking management to review or implement the MacBride principles |
● | Against asking the company to encourage its contractors and franchisees to implement the MacBride principles |
● | For asking management to report on or review its global labor practices or those of its contractors, except against if the company already reports publicly using a recognized standard or if the resolution asks for more than a report |
● | Against asking management to adopt, implement, or enforce a global workplace code of conduct based on the International Labor Organization’s core labor conventions |
● | For requesting reports on sustainability, except against if the company has already issued a report in GRI format |
1. | When a client has informed Newfleet that it wishes to retain the right to vote the proxy (under such situations, Newfleet will instruct the custodian to send the proxy material directly to the client); |
2. | When the Newfleet deems the cost of voting would exceed any anticipated benefit to the client; |
3. | When a proxy is received for a client account that has been terminated with the Newfleet; |
4. | When a proxy is received for a security the Newfleet no longer manages (i.e., the Newfleet had previously sold the entire position); and/or |
5. | When the exercise of voting rights could restrict the ability of an account's portfolio manager to freely trade the security in question (as is the case, for example, in certain foreign jurisdictions known as "blocking markets"). |
1) | A copy of these policies and procedures; |
2) | A copy of each proxy statement the firm receives regarding client’s securities; and |
3) | A record of each vote cast by the firm on behalf of a client. |
● |
Maintain or strengthen the shared interests of stockholders and management; |
● |
Increase shareholder value; and/or |
● |
Maintain or increase shareholder rights generally. |
● |
If the proposal that is the subject of the proposed conflict is specifically addressed in these Proxy Voting Policies and Procedures , we may vote the proxy in accordance with such pre-determined policies and guidelines, provided that such pre-determined policy involves little discretion on our part and increases shareholder value; |
● |
We may engage an independent third-party to determine how the proxy should be voted; or |
● |
We may establish an ethical wall or other informational barriers between the person(s) that are involved in the potential conflict and the person(s) making the voting decision in order to insulate the potential conflict from the decision maker. |
● |
ChangePath will attempt to consider all aspects of the vote that could affect the value of the issuer or that of the client; |
● |
ChangePath will vote in a manner that it believes is consistent with the client’s stated objectives; and |
● |
ChangePath will generally vote in accordance with the recommendation of the issuing company’s management on routine and administrative matters, unless the Firm has a particular reason to vote to the contrary. |
● |
ChangePath will vote proxies for assets maintained in funds sub-advised by ChangePath (e.g., VEGA) in accordance with the requirements of the Sub-Advisory Agreement between ChangePath and the fund’s investment adviser. |
● |
With some ERISA accounts, ChangePath may vote proxies if the Investment Advisory Agreement states that the advisor will vote proxies. |
● |
Under some Sub-Advisory Agreement(s), ChangePath may be responsible for reviewing proxy solicitation materials or voting and handling proxies in relation to the securities held as assets. |
Item 28 . |
Exhibits |
Item 29. |
Persons Controlled by or under Common Control with the Fund |
Item 30. |
Indemnification |
(a) |
Subject to the exceptions and limitations contained in paragraph (b) below: |
(b) |
No indemnification shall be provided hereunder to a Covered Person: |
(c) |
The rights of indemnification herein provided may be insured against by policies maintained by the Trust, shall be severable, shall not be exclusive of or affect any other rights to which any Covered Person may now or hereafter be entitled, shall continue as to a person who has ceased to be a Covered Person and shall inure to the benefit of the heirs, executors, and administrators of such a person. Nothing contained herein shall affect any rights to indemnification to which Trust personnel, other than Covered Persons, and other persons may be entitled by contract or otherwise under law. |
(d) |
To the maximum extent permitted by applicable law, expenses in connection with the preparation and presentation of a defense to any claim, action, suit, or proceeding of the character described in paragraph (a) of Section 9.02 of the Declaration of Trust may be paid by the Trust or Series from time to time prior to final disposition thereof upon receipt of any undertaking by or on behalf of such Covered Person that such amount will be paid over by him to the Trust or Series if it ultimately is determined that he is not entitled to indemnification under Section 9.02 of the Declaration of Trust; provided, however, that either (a) such Covered Person shall have provided appropriate security for such undertaking, (b) the Trust is insured against losses arising out of any such advance payments, or (c) either a majority of the Trustees who are neither Interested Persons of the Trust nor parties to the matter, or independent legal counsel in a written opinion, shall have determined, based upon a review of readily-available facts (as opposed to a full trial-type inquiry or investigation), that there is a reason to believe that such Covered Person will be found entitled to indemnification under Section 9.02 of the Declaration of Trust. |
Item 31 . |
Business and Other Connections of the Investment Adviser |
Name and Position with ChangePath |
Name of Other Company |
Connection with Other Company |
Kenneth Hyman, Sr. VP of Business Development |
Partnervest Advisory Services, LLC |
President/CEO |
Name and Position with DoubleLine |
Name of Other Company | Connection with Other Company |
Jeffrey Gundlach, Executive Committee | DoubleLine Capital LP | Executive Committee |
Henry Chase, Executive Committee | DoubleLine Capital LP | Executive Committee |
Earl Lariscy, Executive Committee | DoubleLine Capital LP | Executive Committee |
Ronald Redell, Executive Committee | DoubleLine Capital LP | Executive Committee |
Cris Santa Ana III, Executive Committee | DoubleLine Capital LP | Executive Committee |
Barbara Van Every, Executive Committee | DoubleLine Capital LP | Executive Committee |
Casey Moore, Executive Committee | DoubleLine Capital LP | Executive Committee |
Jeffrey Sherman, Executive Committee | DoubleLine Capital LP | Executive Committee |
Youse Guia, Chief Compliance Officer, Executive Committee | DoubleLine Capital LP | Chief Compliance Officer, Executive Committee |
Joan Elam, Executive Committee | DoubleLine Capital LP | Executive Committee |
Patrick Townzen, Executive Committee | DoubleLine Capital LP | Executive Committee |
Name and Position with Gerber Kawasaki | Name of Other Company | Connection with Other Company |
Ross Gerber, President, Chief Executive Officer & Chief Investment Officer | Cocoon Malibu LLC | Managing Member |
Name and Position with Morgan Creek | Name of Other Company | Connection with Other Company |
[-] | [-] | [-] |
Name and Position with Poseidon | Name of Other Company | Connection with Other Company |
[-] | [-] | [-] |
Name and Position with Ranger | Name of Other Company | Connection with Other Company |
John Del Vecchio, Portfolio Manager | Parabolix Research Incorporated | President |
Index Deletion Strategies, LLC | Managing Member | |
17 Middle Pines, LLC | Member | |
Brad Lamensdorf, Portfolio Manager, Trading and Market Strategist | BHL Advisors, LLC | Managing Member & Portfolio Manager |
LMTR, LLC | Principal | |
Active Alts, Inc. | CEO & Portfolio Manager |
Name and Position with ThinkBetter | Name of Other Company | Connection with Other Company |
Renaud (Ron) Piccinini, Member | The Q Consulting Group, LLC | President |
ThinkBetter Holdings, LLC | Managing Member | |
Peach Financial Consulting | Owner / Chief Executive Officer | |
Edward C. Bertelsen, Chief Executive Officer | ThinkBetter Holdings, LLC | Chief Executive Officer |
The Q Consulting Group, LLC | Chief Executive Officer | |
Teresa A. Koncick, Member | ThinkBetter Holdings, LLC | Member |
The Q Consulting Group, LLC | General Counsel | |
SunCoast Blood Centers Board | Member | |
Christian C. Bertelsen, Member | ThinkBetter Holdings, LLC | Member |
Item 32. |
Foreside Fund Services, LLC |
(a) |
Foreside Fund Services, LLC (the “Distributor”) serves as principal underwriter for the following investment companies registered under the Investment Company Act of 1940, as amended: |
1. | ABS Long/Short Strategies Fund |
2. | Absolute Shares Trust |
3. | AdvisorShares Trust |
4. | AFA Multi-Manager Credit Fund |
5. | AGF Investments Trust (f/k/a FQF Trust) |
6. | AIM ETF Products Trust |
7. | Alexis Practical Tactical ETF, Series of Listed Funds Trust |
8. | AlphaCentric Prime Meridian Income Fund |
9. | American Century ETF Trust |
10. | American Customer Satisfaction ETF, Series of ETF Series Solutions |
11. | Amplify ETF Trust |
12. | ARK ETF Trust |
13. | ASYMmetric ETFs Trust |
14. | Bluestone Community Development Fund (f/k/a The 504 Fund) |
15. | Braddock Multi-Strategy Income Fund, Series of Investment Managers Series Trust |
16. | Bridgeway Funds, Inc. |
17. | Brinker Capital Destinations Trust |
18. | Brookfield Real Assets Income Fund Inc. |
19. | Cabot Equity Growth ETF, Series of Listed Funds Trust |
20. | Calamos Convertible and High Income Fund |
21. | Calamos Convertible Opportunities and Income Fund |
22. | Calamos Dynamic Convertible and Income Fund |
23. | Calamos Global Dynamic Income Fund |
24. | Calamos Global Total Return Fund |
25. | Calamos Strategic Total Return Fund |
26. | Carlyle Tactical Private Credit Fund |
27. | Center Coast Brookfield MLP & Energy Infrastructure Fund |
28. | Changebridge Capital Long/Short ETF, Series of Listed Funds Trust |
29. | Changebridge Capital Sustainable Equity ETF, Series of Listed Funds Trust |
30. | Cliffwater Corporate Lending Fund |
31. | Cliffwater Enhanced Lending Fund |
32. | Cohen & Steers Infrastructure Fund, Inc. |
33. | CornerCap Group of Funds |
34. | CrossingBridge Pre-Merger SPAC ETF, Series of Trust for Professional Managers |
35. | Davis Fundamental ETF Trust |
36. | Defiance Hotel, Airline, and Cruise ETF, Series of ETF Series Solutions |
37. | Defiance Nasdaq Junior Biotechnology ETF, Series of ETF Series Solutions |
38. | Defiance Next Gen Altered Experience ETF, Series of ETF Series Solutions |
39. | Defiance Next Gen Big Data ETF, Series of ETF Series Solutions |
40. | Defiance Next Gen Connectivity ETF, Series of ETF Series Solutions |
41. | Defiance Next Gen H2 ETF, Series of ETF Series Solutions |
42. | Defiance Next Gen SPAC Derived ETF, Series of ETF Series Solutions |
43. | Defiance Quantum ETF, Series of ETF Series Solutions |
44. | Direxion Shares ETF Trust |
45. | DoubleLine Opportunistic Credit Fund |
46. | Eaton Vance NextShares Trust |
47. | Eaton Vance NextShares Trust II |
48. | EIP Investment Trust |
49. | Ellington Income Opportunities Fund |
50. | EntrepreneurShares Series Trust |
51. | Esoterica Thematic ETF Trust |
52. | ETF Opportunities Trust |
53. | Evanston Alternative Opportunities Fund |
54. | Exchange Listed Funds Trust (f/k/a Exchange Traded Concepts Trust II) |
55. | Fat Tail Risk ETF, Series of Collaborative Investment Series Trust |
56. | Fiera Capital Series Trust |
57. | FlexShares Trust |
58. | FOMO ETF, Series of Collaborative Investment Series Trust |
59. | Forum Funds |
60. | Forum Funds II |
61. | Friess Small Cap Growth Fund, Series of Managed Portfolio Series |
62. | Guinness Atkinson Funds |
63. | Harbor ETF Trust |
64. | Horizon Kinetics Inflation Beneficiaries ETF, Series of Listed Funds Trust |
65. | Infinity Core Alternative Fund |
66. | Infusive US Trust |
67. | Innovator ETFs Trust |
68. | Ironwood Institutional Multi-Strategy Fund LLC |
69. | Ironwood Multi-Strategy Fund LLC |
70. | John Hancock Exchange-Traded Fund Trust |
71. | Mairs & Power Funds Trust |
72. | Mairs & Power Minnesota Municipal Bond ETF, Series of Trust for Professional Managers |
73. | Manor Investment Funds |
74. | Moerus Worldwide Value Fund, Series of Northern Lights Fund Trust IV |
75. | Morgan Creek - Exos SPAC Originated ETF, Series of Listed Funds Trust |
76. | Morningstar Funds Trust |
77. | OSI ETF Trust |
78. | Overlay Shares Core Bond ETF, Series of Listed Funds Trust |
79. | Overlay Shares Foreign Equity ETF, Series of Listed Funds Trust |
80. | Overlay Shares Hedged Large Cap Equity ETF, Series of Listed Funds Trust |
81. | Overlay Shares Large Cap Equity ETF, Series of Listed Funds Trust |
82. | Overlay Shares Municipal Bond ETF, Series of Listed Funds Trust |
83. | Overlay Shares Short Term Bond ETF, Series of Listed Funds Trust |
84. | Overlay Shares Small Cap Equity ETF, Series of Listed Funds Trust |
85. | Pacific Global ETF Trust |
86. | Palmer Square Opportunistic Income Fund |
87. | Partners Group Private Income Opportunities, LLC |
88. | PENN Capital Funds Trust |
89. | Performance Trust Mutual Funds, Series of Trust for Professional Managers |
90. | Philotimo Focused Growth and Income Fund, Series of World Funds Trust |
91. | Plan Investment Fund, Inc. |
92. | PMC Funds, Series of Trust for Professional Managers |
93. | Point Bridge GOP Stock Tracker ETF, Series of ETF Series Solutions |
94. | Putnam ETF Trust |
95. | Quaker Investment Trust |
96. | Rareview Dynamic Fixed Income ETF, Series of Collaborative Investment Series Trust |
97. | Rareview Tax Advantaged Income ETF, Series of Collaborative Investment Series Trust |
98. | Renaissance Capital Greenwich Funds |
99. | Revere Sector Opportunity ETF, Series of Collaborative Investment Series Trust |
100. | Reverse Cap Weighted U.S. Large Cap ETF, Series of ETF Series Solutions |
101. | RMB Investors Trust (f/k/a Burnham Investors Trust) |
102. | Robinson Opportunistic Income Fund, Series of Investment Managers Series Trust |
103. | Robinson Tax Advantaged Income Fund, Series of Investment Managers Series Trust |
104. | Roundhill BITKRAFT Esports & Digital Entertainment ETF, Series of Listed Funds Trust |
105. | Roundhill MVP ETF, Series of Listed Funds Trust |
106. | Roundhill Sports Betting & iGaming ETF, Series of Listed Funds Trust |
107. | Roundhill Streaming Services & Technology ETF, Series of Listed Funds Trust |
108. | Salient MF Trust |
109. | Securian AM Balanced Stabilization Fund, Series of Investment Managers Series Trust |
110. | Securian AM Equity Stabilization Fund, Series of Investment Managers Series Trust |
111. | Securian AM Real Asset Income Fund, Series of Investment Managers Series Trust |
112. | SHP ETF Trust |
113. | Six Circles Trust |
114. | Sound Shore Fund, Inc. |
115. | Spear Alpha ETF, Series of Listed Funds Trust |
116. | Strategy Shares |
117. | Swan Hedged Equity US Large Cap ETF, Series of Listed Funds Trust |
118. | Syntax ETF Trust |
119. | The Active Dividend Stock ETF, Series of Collaborative Investment Series Trust |
120. | The Chartwell Funds |
121. | The Community Development Fund |
122. | The De-SPAC ETF, Series of Collaborative Investment Series Trust |
123. | The Private Shares Fund (f/k/a SharesPost 100 Fund) |
124. | The Relative Value Fund |
125. | The Short De-SPAC ETF, Series of Collaborative Investment Series Trust |
126. | The SPAC and New Issue ETF, Series of Collaborative Investment Series Trust |
127. | Third Avenue Trust |
128. | Third Avenue Variable Series Trust |
129. | Tidal ETF Trust |
130. | TIFF Investment Program |
131. | Timothy Plan High Dividend Stock Enhanced ETF, Series of The Timothy Plan |
132. | Timothy Plan High Dividend Stock ETF, Series of The Timothy Plan |
133. | Timothy Plan International ETF, Series of The Timothy Plan |
134. | Timothy Plan US Large/Mid Core Enhanced ETF, Series of The Timothy Plan |
135. | Timothy Plan US Large/Mid Cap Core ETF, Series of The Timothy Plan |
136. | Timothy Plan US Small Cap Core ETF, Series of The Timothy Plan |
137. | Transamerica ETF Trust |
138. | Trend Aggregation ESG ETF, Series of Collaborative Investment Series Trust |
139. | TrueShares AI & Deep Learning ETF, Series of Listed Funds Trust |
140. | TrueShares ESG Active Opportunities ETF, Series of Listed Funds Trust |
141. | TrueShares Low Volatility Equity Income ETF, Series of Listed Funds Trust |
142. | TrueShares Structured Outcome (April) ETF, Series of Listed Funds Trust |
143. | TrueShares Structured Outcome (August) ETF, Series of Listed Funds Trust |
144. | TrueShares Structured Outcome (December) ETF, Series of Listed Funds Trust |
145. | TrueShares Structured Outcome (February) ETF, Series of Listed Funds Trust |
146. | TrueShares Structured Outcome (January) ETF, Series of Listed Funds Trust |
147. | TrueShares Structured Outcome (July) ETF, Series of Listed Funds Trust |
148. | TrueShares Structured Outcome (June) ETF, Series of Listed Funds Trust |
149. | TrueShares Structured Outcome (March) ETF, Series of Listed Funds Trust |
150. | TrueShares Structured Outcome (May) ETF, Listed Funds Trust |
151. | TrueShares Structured Outcome (November) ETF, Series of Listed Funds Trust |
152. | TrueShares Structured Outcome (October) ETF, Series of Listed Funds Trust |
153. | TrueShares Structured Outcome (September) ETF, Series of Listed Funds Trust |
154. | U.S. Global Investors Funds |
155. | Variant Alternative Income Fund |
156. | VictoryShares Developed Enhanced Volatility Wtd ETF, Series of Victory Portfolios II |
157. | VictoryShares Dividend Accelerator ETF, Series of Victory Portfolios II |
158. | VictoryShares Emerging Market High Div Volatility Wtd ETF, Series of Victory Portfolios II |
159. | VictoryShares International High Div Volatility Wtd ETF, Series of Victory Portfolios II |
160. | VictoryShares International Volatility Wtd ETF, Series of Victory Portfolios II |
161. | VictoryShares NASDAQ Next 50 ETF, Series of Victory Portfolios II |
162. | VictoryShares Protect America ETF, Series of Victory Portfolios II |
163. | VictoryShares Top Veteran Employers ETF, Series of Victory Portfolios II |
164. | VictoryShares US 500 Enhanced Volatility Wtd ETF, Series of Victory Portfolios II |
165. | VictoryShares US 500 Volatility Wtd ETF, Series of Victory Portfolios II |
166. | VictoryShares US Discovery Enhanced Volatility Wtd ETF, Series of Victory Portfolios II |
167. | VictoryShares US EQ Income Enhanced Volatility Wtd ETF, Series of Victory Portfolios II |
168. | VictoryShares US Large Cap High Div Volatility Wtd ETF, Series of Victory Portfolios II |
169. | VictoryShares US Multi-Factor Minimum Volatility ETF, Series of Victory Portfolios II |
170. | VictoryShares US Small Cap High Div Volatility Wtd ETF, Series of Victory Portfolios II |
171. | VictoryShares US Small Cap Volatility Wtd ETF, Series of Victory Portfolios II |
172. | VictoryShares USAA Core Intermediate-Term Bond ETF, Series of Victory Portfolios II |
173. | VictoryShares USAA Core Short-Term Bond ETF, Series of Victory Portfolios II |
174. | VictoryShares USAA MSCI Emerging Markets Value Momentum ETF, Series of Victory Portfolios II |
175. | VictoryShares USAA MSCI International Value Momentum ETF, Series of Victory Portfolios II |
176. | VictoryShares USAA MSCI USA Small Cap Value Momentum ETF, Series of Victory Portfolios II |
177. | VictoryShares USAA MSCI USA Value Momentum ETF, Series of Victory Portfolios II |
178. | West Loop Realty Fund, Series of Investment Managers Series Trust (f/k/a Chilton Realty Income & Growth Fund) |
179. | WisdomTree Trust |
180. | WST Investment Trust |
181. | XAI Octagon Floating Rate & Alternative Income Term Trust |
Item 32(b) | The following are the Officers and Manager of the Distributor, the Registrant’s underwriter. The Distributor’s main business address is Three Canal Plaza, Suite 100, Portland, Maine 04101. |
Name |
Address |
Position with Underwriter |
Position with Registrant |
Richard J. Berthy |
Three Canal Plaza, Suite 100, Portland, ME 04101 |
President, Treasurer and Manager |
None |
Mark A. Fairbanks |
Three Canal Plaza, Suite 100, Portland, ME 04101 |
Vice President |
None |
Teresa Cowan |
111 E. Kilbourn Avenue, Suite 2200, Milwaukee, WI 53202 |
Vice President |
None |
Jennifer K. DiValerio |
899 Cassatt Road, 400 Berwyn Park, Suite 110, Berwyn, PA 19312 |
Vice President |
None |
Nanette K. Chern |
Three Canal Plaza, Suite 100, Portland, ME 04101 |
Vice President and Chief Compliance Officer |
None |
Jennifer E. Hoopes |
Three Canal Plaza, Suite 100, Portland, ME 04101 |
Secretary |
None |
Item 32(c) | Not applicable. |
Item 33 . |
Location of Accounts and Records |
(a) | Registrant: |
c/o AdvisorShares Investments, LLC | |
4800 Montgomery Lane, Suite 150 | |
Bethesda, Maryland 20814 |
(b) | Adviser: |
AdvisorShares Investments, LLC | |
4800 Montgomery Lane, Suite 150 | |
Bethesda, Maryland 20814 |
(c) | Sub-Advisers: |
Alpha DNA Investment Management, LLC 8860 Columbia 100 Parkway, Suite 301 Columbia, Maryland 21045 |
|
ChangePath, LLC | |
11460 Tomahawk Creek Parkway, Suite 200 | |
Leawood, Kansas 66211 | |
CSM Advisors, LLC | |
420 Fort Duquesne Boulevard | |
Pittsburgh, Pennsylvania 15222 | |
Dorsey, Wright & Associates, LLC | |
3300 W. Leigh Street | |
Richmond, Virginia 23230 | |
DoubleLine Equity LP | |
505 North Brand Boulevard, Suite 860 | |
Glendale, California 91203 | |
Gerber Kawasaki, Inc. | |
2716 Ocean Park Boulevard | |
Santa Monica, California 90405 | |
Morgan Creek Capital Management, LLC | |
301 West Barbee Chapel Road, Suite 200 | |
Chapel Hill, North Carolina 27517 | |
Newfleet Asset Management, LLC | |
One Financial Plaza | |
Hartford, Connecticut 06103 | |
Poseidon Investment Management, LLC | |
330 Fell Street, Suite 200 | |
San Francisco, California 94102 | |
Ranger Alternative Management L.P. | |
2828 N. Harwood Street, Suite 1900 | |
Dallas, Texas 75201 | |
ThinkBetter, LLC 1924 South Osprey Avenue, Suite 202 Sarasota, Florida 34239 |
|
(d) | Principal Underwriter: |
Foreside Fund Services, LLC | |
Three Canal Plaza, Suite 100 | |
Portland, Maine 04101 | |
(e) | Custodian and Administrator: |
The Bank of New York Mellon | |
240 Greenwich Street | |
New York, New York 10286 |
Item 34 . |
Management Services |
Item 35 . |
Undertakings |
AdvisorShares Trust |
||
/s/ Noah Hamman |
||
Noah Hamman |
||
President |
Signature |
Title |
Date |
||
/s/ Noah Hamman |
Trustee and President |
October 29, 2021 |
||
Noah Hamman |
||||
* |
Trustee |
October 29, 2021 |
||
Elizabeth Piper/Bach |
||||
* |
Trustee |
October 29, 2021 |
||
William G. McVay |
||||
* |
Treasurer |
October 29, 2021 |
||
Dan Ahrens |
||||
/s/ Noah Hamman |
||||
* Noah Hamman, Power of Attorney |