(VEGA) STAR Global Buy-Write ETF


How VEGA Works

The AdvisorShares STAR Global Buy-Write ETF (NYSE Arca: VEGA) seeks consistent repeatable returns across all market cycles. VEGA is sub-advised by Partnervest Advisory Services, LLC (“Portfolio Manager”). The Portfolio Manager seeks to achieve the investment objective by using a proprietary strategy known as Volatility Enhanced Global Appreciation (“VEGA”). VEGA is primarily a “fund of funds” and employs a “Buy-Write” or “Covered Call” overlay for its global allocation strategy using Exchange Traded Products (ETPs).

According to the internal benchmark policy, the Portfolio Manager will use both ETFs and individual equities to implement its tactical allocation strategy in which the volatility of each of the underlying positions determines the amount of option hedging. During periods of high volatility, the Portfolio Manager will write (or sell) a call option against some of its positions in order to hedge downside risk, while generating an income stream from the sale of options. At any given time, approximately 60% to 85% of VEGA’s positions will have covered options. Additionally when volatility is low, the portfolio manager buys protective put options to manage downside risk.

Fund Documents

Portfolio Manager Commentaries

VEGA in the News

12/30/2014 -

AdvisorShares Press Release, AdvisorShares Announces December 2014 Distributions

12/31/2013 -

AdvisorShares Press Release, AdvisorShares Announces December 2013 Distributions

10/30/2013 - Coleman, Murray. "Income-Hungry Investors Turn to Stock Options."
05/02/2013 - "Tomorrow in :30: All Eyes on Employment & The Market."
02/26/2013 - Witkowski, Wallace. "VIX retreats sharply after spike; its ETFs fare better."

Performance -Month-End

VEGA Performance History (%) as of 09/30/2015
 NAVMarket Price ReturnMSCI World Index
1 Month-1.96-1.80-3.69
3 Months-5.75-5.82-8.45
1 Year-3.95-3.87-5.09
2 Years1.781.703.19
3 Years0.600.568.58
Since Inception

Performance -Quarter-End

VEGA Performance History (%) as of 09/30/2015
 NAVMarket Price ReturnMSCI World Index
1 Month-1.96-1.80-3.69
3 Months-5.75-5.82-8.45
1 Year-3.95-3.87-5.09
2 Years1.781.703.19
3 Years0.600.568.58
Since Inception

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.

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

Fund Distributions

Ex-DateRecord DatePay DateCash DivST Cap GainLT Cap GainReturn of CapitalTotal Distribution
$0.00$0.00$0.00$0.00$0.00/per share
$0.00$0.00$0.00$0.00$0.00/per share
$0.167$0.031$0.00$0.00$0.198/per share

Why Invest in VEGA?

  • Low Volatility Risk Managed Solution - The asset allocation, option writing decisions, and overall portfolio put protection is heavily driven by volatility. When added to a traditional investment portfolio, VEGA will attempt to manage downside risk while seeking to gain as much of the upside growth as possible.
  • For a Total Return Solution - The performance for VEGA will be driven by both equity growth and income; additionally, option income may provide additional return diversification to the overall total return of the portfolio.

5 Key Attributes

  1. Tactical - The asset allocation of the portfolio is tactically managed based on the volatility of the underlying asset classes. This tactical allocation provides a secondary form of managing risk in the portfolio.
  2. Options Hedging - As markets drop, the levels of implied volatility increase. Higher implied volatility results in higher than average option premiums that can offset downside moves, and VEGA will employ a higher percentage of hedging. When volatility is low, long term protective puts can be employed to protect in severe downward spikes. Volatility-based reinvesting insures a buy low, sell high discipline using a portion of the earned option income.
  3. Harnessing Volatility - Option premiums are used to seek to enhance the VEGA portfolio by writing call options on the ETF positions, in an effort to create less dependence on markets for returns during market downturns. Volatility may allow investors to add to their return when options are not exercised.
  4. Total Return Solution - The Portfolio Manager believes that VEGA can structure a target outcome, through an option overlay strategy on a global allocation strategy to generate returns.
  5. Income - The overwrite options strategy seeks to generate a return stream in the form of option premiums that accrue independently of the underlying investments and are not subject to equity risk.

About the Portfolio Managers

James G. Herrell, CFA, Director of Investments
Mr. Herrell has spent 21 years in the asset management industry. He specializes in alternative assets, particularly hedged and absolute return strategies. In 1991, he became a partner and head trader at Strome & Co. in Santa Monica. In addition, he helped manage $25 million for George Soros’ Quasar Fund. Management expertise coupled with opportunistic investing across a broad spectrum of global markets enabled the fund to grow its assets from $50 million to more than $1.1 billion by the end of 1994. Relocating to Santa Barbara, Mr. Herrell managed $250 million for the Trust & Investment division at Pacific Capital Bancorp, covering high net worth and institutional clients. He joined Partnervest in July 2008, and developed and manages the Structured Target Return Program.

Kenneth R. Hyman, President and Chief Executive Officer
Kenneth R. Hyman founded Partnervest in 2001 and is responsible for the direction and oversight of Partnervest’s business, financial, and operational affairs. He also serves as Co-Portfolio Manager and member of the Investment Management Committee overseeing the STAR Asset Management program. Established in 2001, the Sub-Advisor provides investment management solutions to investors and the advisors that serve them. Prior to establishing Partnervest, Mr. Hyman was the Senior Executive and Financial Officer for Integral Securities, Inc. and Integral Securities Europe Ltd. Prior to Partnervest and Integral, Mr. Hyman was the Managing Principal and Chief Operating Officer of Mercer Global Securities and the Director of Operations for Mercer Global Advisors, one of the nation’s largest fee-only financial planning and investment management firms. He was also the Vice-President of Trading for Associated Financial Group, a financial services company providing support to more than 328 representatives in over 179 branch and satellite offices.


Morningstar Rating ™

10 Yr 5 Yr 3 Yr Overall Category # in Overall Category
N/A N/A Large Blend 1437
Overall Morningstar rating is derived from a weighted average of the fund's 3-, 5-, and 10- year (if applicable) risk-adjusted returns as of 09/30/2015. Category consists of 1437 funds in 3 year, 1280 in 5 year, and 892 in 10 year.

Manager Minutes, September 2015

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Price History

As of: 10/07/2015
NAV$25.84Closing Price$25.77
Shares Outstanding950,000Volume7,820
4PM Bid/Offer Midpoint$25.66Premium/Discount$-0.18
Assets Under Management$24,549,303.13
Premium/Discount Historical Data


Top Holdings

As of: 10/07/2015
Ticker Name Weight

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.

Fund Basics

  • Symbol


  • Exchange

    NYSE Arca

  • Inception Date




  • Indicative Value


  • Options


Fees & Expenses

  • Management Fee


  • Other Expenses


  • Acquired Fund Fees


  • Gross Expense Ratio


  • Fee Waiver and/or Expense Reimbursement


  • Net Expense Ratio


  • *The Advisor has contractually agreed to keep net expenses from exceeding 1.85% of the Fund’s average daily net assets for at least a year from the date of the prospectus and for an indefinite period thereafter subject to annual reapproval of the agreement by the Board of Trustees. This agreement is limited to the Fund’s direct operating expenses and, therefore, does not apply to “Acquired Fund Fees and Expenses.”