This supplement provides new and additional information beyond that contained in the Summary Prospectus and Prospectus for the AdvisorShares Pure Cannabis ETF (the “Fund”) and should be read in conjunction with those documents.
Effective immediately, to gain additional exposure to
cannabis investments, the Fund will invest in the AdvisorShares Pure US Cannabis ETF, an affiliated exchange-traded fund with substantially
similar principal investment strategies. With respect to such investment, AdvisorShares Investments, LLC (the “Advisor”), the
Fund’s investment adviser, will contractually waive from the Fund’s advisory fee the amount of the affiliated fund’s advisory
fee so that the Fund does not pay its advisory fee to the Advisor and indirectly pay a portion of the affiliated fund’s advisory fee to the Advisor. In addition, the following specific changes are made to the Fund’s Summary Prospectus and Prospectus:
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Under “Principal Investment Strategies” on page 2, the second sentence of the first paragraph is replaced with the following: |
The Fund primarily invests in (i) exchange-listed equity securities, including common and preferred stock, of mid- and small-capitalization companies, (ii) total return swaps intended to provide exposure to such U.S. and foreign securities, and (iii) an affiliated ETF that invests in such securities in the U.S. market and in total return swaps intended to provide exposure to such securities.
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The following risk information is added under “Principal Risks of Investing in the Fund,” which begins on page 3: |
ETF Investment Risk.
Through its investments in an affiliated ETF, the Fund is subject to the risks associated with the ETFs’ investments, including the possibility that the value of the securities held by an ETF could decrease. These risks include any combination of the risks described in this section (other than the foreign investment risk). Moreover, when the Fund invests in the ETF, in addition to directly bearing the expenses associated with its own operations, the Fund will
bear the applicable pro
rata portion of the ETF’s expenses.
ETF Investment Risk.
The Fund is subject to the same risks as the underlying affiliated ETF. While the risks of owning shares of an ETF generally reflect the risks of owning the underlying securities of the ETF, lack of liquidity in an ETF can result in its value being more volatile than the underlying portfolio securities. ETFs also may trade below their NAV or at a discount, which may adversely affect the Fund’s performance. Moreover, when the Fund invests in the ETF, in addition to directly bearing the expenses associated with its own operations, the Fund will
bear the applicable pro
rata portion of the ETF’s expenses. Consequently, an investment in the Fund entails more direct and indirect expenses than a direct investment in the underlying ETF. Under normal market conditions, the Fund will purchase shares of or interest in the ETF in the secondary market.