ACT: 3rd Quarter 2020 Portfolio Manager Review
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. For the fund’s most recent standardized and month-end performance, please click www.advisorshares.com/etfs/act.
The third quarter of 2020 was very strong month for AdvisorShares Vice ETF. The Fund gained 14.71% on its net asset value (NAV) and 14.65% on its market price during that period. The S&P 500 was up 8.93%. October has started off solidly in VICE’s favor as well.
Contributors / Detractors
The Fund’s largest holding Boston Beer (NYSE: SAM) is one that I talk about a lot, and it has been a top performer gaining over 64% for the 3-month period. Some restaurant and entertainment companies we hold for significant alcohol sales were also quite good. RCI Hospitality Holdings (NASDAQ: RICK) gained over 47%. BJ’s Restaurants Inc. (NASDAQ: BJRI) gained more than 40%, and Darden Restaurants Inc (NYSE: DRI) gained almost 33%.
On the negative side, a small holding in alcohol company Ambev SA ADR (NYSE: ABEV) lost more than 14%. U.K. tobacco companies, British American Tobacco ADR (NYSE: BTI) and Imperial Brands PLC (OTC: IMBBY) each lost more than 5% for the period.
For those concerned about stock market volatility or stock market unpredictability around the Presidential Election, I’d like to suggest investing in those things that citizens seem to spend money on no matter what’s happening with the economy or politics – I mean vices like drinking, smoking, gambling and gaming.
As already announced, after November 1, 2020, AdvisorShares Vice ETF will change it’s listing venue to the New York Stock Exchange and have a new ticker symbol, VICE. The principal investment strategy will change somewhat at the same time to add various forms of gambling, online gaming, esports, and even more food and beverage.
Keep on eye on big things happening in VICE as we close out 2020!
|Ticker||Security Description||Portfolio Weight %|
|SAM||BOSTON BEER COMPANY INC-A||10.54%|
|TMO||THERMO FISHER SCIENTIFIC INC||8.27%|
|LVMUY||LVMH MOET HENNESSY-UNSP ADR||4.82%|
|TPB||TURNING POINT BRANDS INC||4.77%|
|NVS||NOVARTIS AG-SPONSORED ADR||4.47%|
|SMG||SCOTTS MIRACLE-GRO CO||4.16%|
As of 9.30.2020. Cash is excluded.
Please see our complete Fund holdings at advisorshares.com/etfs/act. The holdings details are updated each market day.
Past Manager Commentary