BEDZ: 4th Quarter 2021 Portfolio 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/bedz.

Commentary

For the period of October 1 through December 31, 2021, the AdvisorShares Hotel ETF (BEDZ) gained 4.39% on its net asset value (NAV) and 4.51% on its market price. The Fund launched with an inception date of April 20, 2021. In the slightly over 8-month period since its launch, the Fund has returned 9.01% on its net asset value (NAV) and 9.10% on its market price. It’s quite obvious that COVID and employment concerns continue to weigh on the travel industry, but it does make us bullish for the future as we think these issues should pass at some point.

New Positions:

No new positions were added during the quarter.

Contributors / Detractors:

In last quarter’s comments, I mentioned that we had just added Bluegreen Vacations Holding Corporation (NYSE: BVH) and Golden Entertainment, Inc (NASDAQ: GDEN). Both are large holdings and were significant contributors, BVH up 18% and GDEN up 10%. Regional casino operator Full House Resorts (Nasdaq: FLL) was up over 35%.

The Fund only contained a couple stocks with negative returns for the quarter. Small holding Airbnb (NASDAQ ABNB) lost 3.51% and Century Casinos (NASDAQ: CNTY) lost 6.67%. The Fund is currently weighted most heavily toward leisure travel and casinos.

The Fund’s overall performance is largely tied to the success of the hotel industry, we plan for relative outperformance through good trading techniques and successful individual security selection among hotels and related areas.

Top Holdings

Ticker Security Description Portfolio Weight %
BVH BLUEGREEN VACATIONS HOLDING 8.44%
GDEN GOLDEN ENTERTAINMENT INC 6.42%
CHH CHOICE HOTELS INTL INC 6.24%
HGV HILTON GRAND VACATIONS INC 6.17%
GLPI GAMING AND LEISURE PROPERTIE 5.43%
MCRI MONARCH CASINO & RESORT INC 4.98%
WH WYNDHAM HOTELS & RESORTS INC 4.97%
FLL FULL HOUSE RESORTS INC 4.92%
VICI VICI PROPERTIES INC 4.60%
CNTY CENTURY CASINOS INC 4.50%

As of 12.31.2021. Cash is excluded. Subject to change.

Please see our complete Fund holdings at advisorshares.com/etfs/bedz. The holdings details are updated each market day.

 

Cheers,

Dan Ahrens
AdvisorShares
AdvisorShares Hotel ETF (BEDZ) Portfolio Manager

 

Past Manager Commentary

Definitions: 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.


Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained by visiting www.advisorshares.com. Please read the prospectus carefully before you invest. Foreside Fund Services, LLC, distributor. Investing involves risk including possible loss of principal. The hotels, restaurants & leisure industry is highly competitive and relies heavily on consumer spending for success. The prices of securities of companies in the industry may fluctuate widely due to general economic conditions, consumer spending and the availability of disposable income, changing consumer tastes and preferences and consumer demographics, in addition may be affected by the availability and expense of liability insurance. Legislative or regulatory changes and increased government supervision. Companies in the hotels, resorts & cruise lines sub-industry may be affected by unique supply and demand factors that do not apply to other sub-industries. Weak economic conditions in some parts of the world, changes in oil prices and currency values, political instability in some areas, and the uncertainty over how long any of these conditions could continue may have a negative impact on the lodging industry. As a result of such current economic conditions and uncertainty caused by the COVID-19 pandemic, the lodging industry may continue to experience weakened demand for occupancy in some markets.