(SSAM) Rockledge SectorSAM ETF

Overview

How SSAM Works

The AdvisorShares Rockledge SectorSAM ETF (SSAM) seeks to generate stable and consistent annual returns under all market conditions. The Fund seeks to accomplish this by investing primarily in both long and short positions in U.S. sector ETFs that offer diversified exposure to U.S. large capitalization sectors. SSAM is managed by Rockledge Advisors (“Portfolio Manager”).

The Portfolio Manager seeks to achieve the objective by employing an actively managed and diversified, equity sector rotation process. The Fund will be buying (being long) the sector ETFs that Rockledge forecasts to outperform the S&P 500 Index while also selling (being short) an equal dollar amount of sector ETFs that they forecast to underperform the S&P 500, based on a proprietary quantitative analysis known as the “Sector Scoring and Allocation Methodology” (SectorSAM). The Fund expects to hold equal amounts long and short, thus creating a dollar neutral portfolio.

Fund Documents

Long/Short Sector Allocation

Long Sector Allocation (as of 1/10/2012)

Short Sector Allocation (as of 1/10/2012)

SSAM in the News

01/31/2012 -

Gurvich, Alex. "Trading Like the Hedge Funds Do" seekingalpha.com.

01/17/2012 -

Lydon,Tom. "AdvisorShares Launches Active ETF" etftrends.com.

01/14/2012 - Coleman, Murray. "ETF Tests 'Absolute' Limits." http://online.barrons.com/article/SB50001424052748703535904577152832996107256.html

01/12/2012 -

Johnston, Michael. "AdvisorShares Rolls Out SectorSAM ETF (SSAM)" etfdb.com.

01/12/2012 -

Dutram, Eric. "AdvisorShares Launches Rockledge SectorSAM ETF (SSAM)" zacks.com.

Performance -Month-End

SSAM Performance History (%) as of 01/31/2012

	NAV	Market Price Return	S&P 500 Index
Since Inception (01/11/2012)	1.45	1.60	1.35

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Returns less than one year are not annualized.

Returns shown are for less than one month.

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

Why Invest in SSAM?

To Gain Exposure to Alternative Investments - SSAM may be suitable for investors wishing to access long and short alternative investment strategies. (The Fund may not be suitable for all investors.)
For a Hedged Equity Portfolio - SSAM may provide lower volatility than major US Large Capitalization benchmarks. An ETF with a hedged equity strategy and a dollar neutral portfolio like SSAM seeks to potentially generate positive returns in all market conditions.
For Access to a Strategy that is Non-Correlated to Equity Markets - SSAM seeks to provide non-correlated returns to long only equity strategies and provide broad diversification to a long only domestic equity strategy.
To Take Advantage of Divergent Sector Returns - The nine sector ETFs that correspond to the nine U.S. economic sectors can have widely different returns. The Fund seeks to identify which sectors will outperform the S&P 500 Index and which will underperform over a specified time period which can lead to cumulative returns.

5 Key Attributes

Sector Focus - Because the U.S. economy goes through various growth cycles, one sector may outperform another. The economic market and business cycles continuously provide relative sector return variation; meaning that by focusing on sectors, alpha may be available relative to the combined return of all the sectors, which is the S&P 500 Index.
Lower Risk Investing - Sector investing may provide a better risk/return profile by eliminating company-specific risks, since a sector ETF, as a basket of stocks is inherently diversified.
Quantitative Sector Investing Strategy - SectorSAM analysis provides for individual sector forecasts through an analysis of over two hundred fundamental, macroeconomic and technical factors that influence individual stock returns. This creates a basket of factors that are meaningful to each economic sector within the S&P 500 Index, which the portfolio manager analyzes for decisions on which undervalued sectors to buy and which overvalued sectors to sell.
Dollar Neutral - SSAM is normally, but not always, dollar neutral, meaning that the value of all long positions is equal to the value of all short positions. Being dollar neutral can reduce portfolio volatility. The short positions provide protection against market declines, and may offer the potential to generate positive returns when markets are falling if the short positions fall more than the long positions. Being dollar neutral reduces correlation to broad equity indices.
Sector Investing Expertise - The Portfolio Manager is highly qualified to manage sector strategies, based on their having managed institutional assets utilizing various sector rotation strategies, along with extensive institutional investment experience.

About the Portfolio Manager

Alex Gurvich – Managing Partner & Portfolio Manager
Alex Gurvich cofounded The Rockledge Group and Rockledge Advisors and has been managing these strategies for the past seven years. Prior to founding The Rockledge Group LLC, Mr. Gurvich was a venture capitalist with General Electric’s GE Capital. Mr. Gurvich started his business career as a management consultant with Bain & Company. Before business school, Mr. Gurvich worked as an engineer/physicist, with a French high tech scientific instrumentation start up, and had worked in the medical physics laboratory at Harvard University.

Mr. Gurvich holds a BA in Physics from the University of Chicago and two Masters Degrees – a MBA from INSEAD and a MS in Financial Engineering from New York University Polytechnic Institute. He is also a graduate of the Venture Capital Institute. He is currently a candidate for PhD in the Financial Engineering program at Stevens Institute of Technology. Mr. Gurvich is an Adjunct Professor of Finance at Pace University, Lubin School of Business.

There is no guarantee that the Fund will achieve its investment objective. An investment in the Fund is subject to risk, including the possible loss of principal amount invested. Other Fund risks include allocation risk, market risk, short sale risk, liquidity risk and trading risk. The Fund will be subject to the risks associated the Underlying ETFs’ or ETP’s investments such as concentration risk, “growth” investing risk, Large, Mid and Small-Cap risk, tracking error risk, “value” investing risk, and investment risk. Newly organized, the Fund has no trading history and there can be no assurance that active trading markets will be developed or maintained.

Diversification and Sector investing do not guarantee a profit nor do they eliminate the risk of loss of principal.

The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks. One cannot invest directly in an index. Alpha is a measure of performance on a risk-adjusted basis. Correlation is a statistical measure of how two securities move in relation to each other. A long position is the purchase of an investment with the expectation that it will rise in value. A short position is the sale of a borrowed investment with the expectation that it will decline in value.

Fund Basics

Symbol

SSAM
Exchange

NYSE
Inception Date

01/11/2012
CUSIP

00768Y792
Indicative Value

SSAM.IV

Price History

As of: 02/21/2012

NAV	$26.34	Closing Price	$26.29
Change	$0.22	Change	$0.19
Shares Outstanding	100,000	Volume	100
4PM Bid/Offer Midpoint	$26.35	Premium/Discount	$0.01
Assets Under Management	$2,634,121.66
Premium/Discount Historical Data

Top 5 Long Holdings (Log in above to view all holdings)

As of: 02/21/2012

Ticker	Name	Weight
XLK	TECHNOLOGY SELECT SECTOR SPDR	35.37%
XLE	ENERGY SELECT SECTOR SPDR	34.36%
XLB	MATERIALS SELECT SECTOR SPDR	33.86%

Top 5 Short Holdings (Log in above to view all holdings)

As of: 02/21/2012

Ticker	Name	Weight
XLF	FINANCIAL SELECT SECTOR SPDR FUND	-21.91%
XLP	CONSUMER STAPLES SELECT SECTOR SPDR	-17.93%
XLV	HEALTH CARE SELECT SECTOR SPDR	-16.85%
XLY	CONSUMER DISCRETIONARY SELECT SECTOR SPDR	-16.50%
XLI	INDUSTRIAL SELECT SECTOR SPDR	-15.56%

Shares are bought and sold at market price (closing price) not NAV and are not individually redeemed from the Fund. Market price returns are based on the midpoint of the bid/ask spread at 4:00 pm Eastern Time (when NAV is normally determined), and do not represent the return you would receive if you traded at other times. Holdings and allocations are subject to risks and to change. A holding identified with an "MM" at the end of its name indicates it is a Money Market fund.

Fees & Expenses

Management Fee

1.25%
Other Expenses

0.55%
Gross Expense Ratio

1.80%
Fee Waiver and/or Expense Reimbursement

0.30%
Net Expense Ratio

1.50%*

*The Advisor has contractually agreed to keep the Fund’s Total Annual Fund Operating Expenses from exceeding 1.50% for at least a year from the date of the Prospectus.