(ACT) ADVISORSHARES VICE ETF

ACT

Overview

Diversification stands among the most important attributes of an investment portfolio. While finding true negative or non-correlation among investments remains challenging, building a diversified portfolio during a normal market environment can allow an easier path. Recessions represent a natural and cyclical part of markets. Consumer spending slows significantly during recessionary environments: no new cars, less retail purchases and generally less of everything. However, even in the toughest economic environments, people still historically spend on their leisure, habits and vices. Alcohol and tobacco have been often viewed as potentially recession-resistant areas simply because individuals take pleasure in such related activities during both good times and bad times.

The investment thesis of the AdvisorShares Vice ETF (Ticker: ACT) believes that investing in select alcohol and tobacco companies will provide continued growth and long-term performance across all types of market environments. With evolving societal and regulatory landscapes, the upside potential of cannabis as a new investment avenue has emerged to complement the historically resilient characteristics of alcohol and tobacco. While cannabis represents a new investment frontier, proper caution and due diligence must be exercised surrounding its regulations and risks. ACT only invests in cannabis-related companies conducting federally legal business per the United States government.



Symbol Exchange Inception Date CUSIP Indicative Value
ACT Nasdaq 12/12/2017 007768Y206 ACT IV
<strong>Why Invest in ACT?</strong>
  • Historical Steadiness Complemented by Upside Potential – Alcohol and tobacco possess an established history of delivering attractive returns through multiple market cycles. The emergence of select cannabis-related companies and their growth potential adds a compelling element to an investment theme historically resilient to market drawdowns and recessionary environments.
  • Alcohol and Tobacco’s Attractive Profit Margins – Tobacco products still possess among the highest profit margins of consumer products despite less people smoking and heavily restricted advertising. Alcohol-related companies are also known for providing competitive profit margins among consumer products.
  • Only ETF with Concentrated Exposure to Emerging Investment Theme – ACT is the only ETF, including passively managed strategies, that provides concentrated exposure to select companies associated with alcohol, cannabis and tobacco. The fully transparent ETF structure delivers this emerging investment theme with intraday liquidity as well as enhanced operational and tax efficiency for its shareholders.
  • Experienced Portfolio Management Team -ACT’s portfolio management team carries extensive experience in the capital markets and an established expertise of investing in this area of the equity markets, including as the original portfolio manager of the Vice Fund mutual fund and managing other well-regarded investment strategies.
<strong>Where Does ACT Fit in a Traditional Portfolio?</strong>

ACT can deliver an alpha-seeking complement or satellite equity holding to a broad-based equity allocation. ACT seeks direct exposure to select leaders within the alcohol and tobacco industries complemented by the emerging upside of U.S. federally legal cannabis-related companies.

<strong>Key Attributes</strong>
  • Durable Moat Advantage – Select alcohol and tobacco companies may carry a competitive advantage operating within heavily regulated industries, reinforced by an established record of performance across multiple market and economic environments.
  • Equity Market’s Top Dividend Payers – The largest alcohol and tobacco companies are among the equity market’s top dividend payers, exhibiting an attractive history of consistent growth and increasing dividends that can enhance the portfolio’s total return.
  • Emerging Growth Opportunity -Cannabis-related equities span multiple industries including agriculture, biotechnology, pharmaceutical, real estate, retail, finance and other medical applications. The portfolio manager believes that an evolving landscape of select, U.S. federally legal cannabis-related companies across various formats provides upside potential that may lead to attractive growth opportunities.
  • Merger & Acquisition Potential -Due to their emerging growth opportunity, companies involved in cannabis-related business on a U.S. federally legal level may benefit from potential merger and acquisition activity as the market evolves and matures.
<strong>About the Portfolio Manager</strong>

Dan Ahrens
Dan Ahrens is managing director and chief operating officer of AdvisorShares. Dan carries over two decades of experience in the financial services industry serving in a variety of senior-level capacities. He founded Ahrens Advisors, L.P., an SEC-registered investment advisor, where he was portfolio manager of the Ladenburg Thalmann Gaming and Casino Fund. Dan also served as president of the MUTUALS.com Funds, where he launched the Vice Fund (VICEX) and served as its original portfolio manager. He was also the portfolio manager of the Generation Wave Growth Fund (GWGFX). During that time, he was also president and chief compliance officer of Mutuals Advisors, Inc, and acted as president, treasurer and financial & operations officer of an affiliated broker dealer firm. Dan is the author of “Investing in Vice” (St. Martin’s Press, 2004) and has appeared prominently across financial media outlets and major national and trade publications. He earned a Bachelor in Business Administration in Finance from Texas Tech University.

Robert M. Parker, CFA
Rob Parker is the director of capital markets for AdvisorShares, where he oversees trading, portfolio management and fund operations activity for the firm. Rob’s professional career has spanned over a decade and a half within the financial services industry, where he has worked across compliance, due diligence, and investment analysis as well as positions of senior portfolio manager and firm principal. Rob managed assets for a proprietary investment practice that he created after serving as senior portfolio manager at ProShares Advisors, where he managed leveraged, inverse, and long-short ETFs. Rob previously held positions held at Capital Financial Group, Wachovia Securities, The Advisors Group, and FOLIOfn, serving in a variety of analyst roles. He is a graduate of National University, earning a Bachelor of Science. He holds the Chartered Financial Analyst (CFA) designation and is a member of the CFA Society of Washington, DC.

 

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Fund

Price History

As of 10/14/2019

NAV $23.44 Closing Price $23.45
Change $0.14 Close Change $0.20
Shares Outstanding 525,000 Volume 836
4PM Bid/Offer Midpoint $23.45 Premium Discount $0.01
Assets Under Management $12,304,637.44    

Premium/Discount Historical Data | NAV Historical Data

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.

FUND

Performance

As of 9/30/2019

NAV Market Price Return S&P 500
1 Month -2.00 -1.99 1.87
3 Months -5.86 -5.93 1.70
YTD 9.86 10.01 20.55
1 Year -10.88 -11.18 4.25
Since Inception (12/12/2017, Annualized) -2.04 -2.07 8.48

As of 9/30/2019

NAV Market Price Return S&P 500
1 Month -2.00 -1.99 1.87
3 Months -5.86 -5.93 1.70
YTD 9.86 10.01 20.55
1 Year -10.88 -11.18 4.25
Since Inception (12/12/2017, Annualized) -2.04 -2.07 8.48

Performance data quoted represents past performance and is no guarantee of future results. All Fund data and performance data quoted is believed to be accurate, and unless otherwise stated, is sourced from the Fund administrator, the Advisor’s or Sub-Advisor’s proprietary data, and Morningstar. 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.

Fund

Holdings

As of 10/15/2019

Date Account Symbol Stock Ticker Security Number Security Shares Price Market Value Weight % Asset Group
10/15/2019 ACT TMO 883556102 THERMO FISHER SCIENTIFIC INC 2,577 286.02 737,073.54 5.99% S 1
ABT 002824100 ABBOTT LABORATORIES 8,419 81.98 690,189.62 5.61% S 1
SAM 100557107 BOSTON BEER COMPANY INC-A 1,640 387.73 635,877.20 5.17% S 1
NVS 66987V109 NOVARTIS AG-SPONSORED ADR 7,068 86.70 612,795.60 4.98% FS 1
ABBV 00287Y109 ABBVIE INC 8,117 74.50 604,716.50 4.91% S 1
CTLT 148806102 CATALENT INC 12,197 49.20 600,092.40 4.88% S 1
SMG 810186106 SCOTTS MIRACLE-GRO CO 5,846 101.21 591,673.66 4.81% S 1
LVMUY 502441306 LVMH MOET HENNESSY-UNSP ADR 7,029 84.17 591,630.93 4.81% FS 1
BJRI 09180C106 BJ'S RESTAURANTS INC 16,453 34.77 572,070.81 4.65% S 1
ABEV 02319V103 AMBEV SA-ADR 121,423 4.52 548,831.96 4.46% FS 1
BF/B 115637209 BROWN-FORMAN CORP-CLASS B 8,433 62.84 529,929.72 4.31% S 1
DRI 237194105 DARDEN RESTAURANTS INC 4,704 110.29 518,804.16 4.22% S 1
PM 718172109 PHILIP MORRIS INTERNATIONAL 6,386 78.32 500,151.52 4.06% S 1
MO 02209S103 ALTRIA GROUP INC 9,638 43.43 418,578.34 3.40% S 1
BTI 110448107 BRITISH AMERICAN TOB-SP ADR 11,106 34.60 384,267.60 3.12% FS 1
PLAY 238337109 DAVE & BUSTER'S ENTERTAINMEN 9,005 38.17 343,720.85 2.79% S 1
UVV 913456109 UNIVERSAL CORP/VA 6,458 52.94 341,886.52 2.78% S 1
TPB 90041L105 TURNING POINT BRANDS INC 15,069 22.38 337,244.22 2.74% S 1
VGR 92240M108 VECTOR GROUP LTD 29,368 11.27 330,977.36 2.69% S 1
IMBBY 45262P102 IMPERIAL BRANDS PLC-SPON ADR 12,215 23.58 288,029.70 2.34% FS 1
STZ 21036P108 CONSTELLATION BRANDS INC-A 1,396 196.76 274,676.96 2.23% S 1
DEO 25243Q205 DIAGEO PLC-SPONSORED ADR 1,623 162.24 263,315.52 2.14% FS 1
RICK 74934Q108 RCI HOSPITALITY HOLDINGS INC 12,990 19.51 253,434.90 2.06% S 1
BREW 224122101 CRAFT BREW ALLIANCE INC 27,803 8.45 234,935.35 1.91% S 1
NBEV 64157V108 NEW AGE BEVERAGES CORP 84,095 2.74 230,420.30 1.87% S 1
MGPI 55303J106 MGP INGREDIENTS INC 4,820 47.17 227,359.40 1.85% S 1
BUD 03524A108 ANHEUSER-BUSCH INBEV-SPN ADR 2,312 92.08 212,888.96 1.73% FS 1
TAP 60871R209 MOLSON COORS BREWING CO -B 3,541 56.68 200,703.88 1.63% S 1
PDRDY 714264207 PERNOD RICARD SA UNSPON ADR 4,375 37.05 162,093.75 1.32% FS 1
X9USDBLYT BLACKROCK TREASURY TRUST INSTL 62 86,331 1.00 86,330.88 0.70% MM 1
CASH (20,312.64) 100.00 (20,312.64) -0.17% CA 0

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

Characteristics

As of 09/30/2019

ACT Vice Sector Allocation

FUND

Fees & Expenses

Management Fee 0.60%
Other Expenses 1.58%
Gross Expenses Ratio 2.18%
Fee Waver and/or Expenses Reimbursement -1.43%
Net Expense Ratio 0.75%*

*The Advisor has contractually agreed to reduce its fees and/or reimburse expenses to keep net expenses from exceeding 0.75% of the Fund’s average daily net assets for at least one year from the date of the Prospectus.

Last Ten

Fund Distributions

Ex-Date Record Date Pay Date Cash Div ST Cap Gain LT Cap Gain Return of Capital Total Distribution (per share) ACT
12/27/2019 12/30/2019 - - - - -
12/27/2018 12/28/2018 12/31/2018 $0.36823 $0.0000 $0.0000 $0.0000 $0.36823
12/27/2017 12/28/2017 12/29/2017 $0.04477 $0.0000 $0.0000 $0.0000 $0.04477
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Contact Info

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Location

AdvisorShares Investments, LLC
4800 Montgomery Lane,
Suite 150
Bethesda, Maryland 20814

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ETF Symbols

 

AADRACT, CWS, DBLV, DWMC, DWSH, FLRT, FWDB, HDGE, HOLD, MINC, MJUS, SCAP, VEGA, YOLO

 

 

 

 

 

Privacy
Copyright © AdvisorShares 2019 • Foreside Fund Services, LLC Distributor

 

 

Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus and summary prospectus. Please read the prospectus and summary prospectus carefully before you invest. Foreside Fund Services, LLC, Distributor.

Investing involves risks including possible loss of principal. Cannabis-related companies are subject to various laws and regulations that may differ at the state/local and federal level. These laws and regulations may significantly affect a cannabis-related company’s ability to secure financing, impact the market for marijuana industry sales and services, and set limitations on marijuana use, production, transportation, and storage. In addition to regulatory action, litigation initiated by private citizens or companies could have a negative impact on the financial and/or operational status of cannabis-related companies. Pronouncements from the current Administration suggest the Department of Justice (“DOJ”) may push back against states where marijuana use and possession is legal, step up the enforcement of federal marijuana laws and the prosecution of nonviolent federal drug crimes and, in the event the Rohrabacher-Farr amendment is not renewed by Congress, begin using federal funds to prevent states from implementing laws that authorize medical marijuana use, possession, distribution, and cultivation. Such actions by the DOJ could produce a chilling effect on the industry’s growth and discourage banks from expanding their services to cannabis-related companies where such services are currently limited.

Companies in the food, beverage and tobacco industry are very competitive and subject to a number of risks. Demographic and product trends, changing consumer preferences, nutritional and health-related concerns, competitive pricing, marketing campaigns, environmental factors, adverse changes in general economic conditions, government regulation, food inspection and processing control, consumer boycotts, risks of product tampering, product liability claims, and the availability and expense of liability insurance can affect the demand for, and success of, such companies’ products in the marketplace. For a full summary of the risks please see the prospectus.

Definitions

Alpha, one of the most commonly quoted indicators of investment performance, is defined as the excess return on an investment relative to the return on a benchmark index.