(CWS) FOCUSED EQUITY ETF

CWS

Overview

The AdvisorShares Focused Equity ETF (NYSE Arca: CWS) seeks long-term capital appreciation. CWS aims to achieve its investment objective by investing primarily in a focused group of U.S. exchange-listed equity securities that the Portfolio Strategist believes have favorable fundamental attributes.

CWS’s investment strategy focuses on firms that are believed to be fundamentally sound and have shown consistent financial results and high earnings quality. The strategy may look for stocks with a strong history of sales and earnings growth, or companies that have steadily increased their earnings and dividends for several years. In addition, the Fund’s assets may be invested in lesser-known companies believed to have a unique opportunity for growth. At times, the CWS may buy certain out-of-favor stocks believed to be priced below their intrinsic value, as measured by the Advisor. Additionally, CWS’s strategy aims to keep the portfolio turnover low.

CWS’s principal investment strategy has been employed by the Portfolio Strategist, Eddy Elfenbein, since 2006 and is published annually as the Crossing Wall Street “Buy List.” The Buy List is a list of 20 stocks selected at the start of each year. The Buy List is then locked and sealed, and no changes can be made throughout the year. At the start of each year, only five stocks, just one-fourth of the Buy List, are replaced.

Symbol Exchange Inception Date CUSIP Indicative Value
CWS NYSE Arca 9/20/2016 00768Y560 CWS.IV
<strong>Why Invest in CWS?</strong>
  • As a Complement to any Broad-Based Index Fund – By their nature, index funds buy everything—the good, the bad and the ugly. The strategy at CWS is to avoid fundamentally weak companies and only invest in the “first in class” companies.
  • Low Turnover – The CWS strategy is focused on the long term. That’s why CWS aims to trade its positions as infrequently as possible. The fund’s goal is to hold a stock for as long as it can. CWS believes that a disciplined buy-and-hold strategy is ideal for riding out market storms.
  • Innovative Fulcrum Fee Structure – In a first for the ETF industry, the Portfolio Strategist of CWS has “skin in the game.” The Strategist’s compensation is directly tied to portfolio’s performance. Stronger outperformance is rewarded with a larger management fee while weak or underperformance is penalized with a smaller management fee.
  • Disciplined Stock-Picking Strategy – CWS is focused on a core group of outstanding companies, offering an attractive and simple way for investors to get instant exposure to a concentrated portfolio of companies with proven competitive advantages. As a Complement to any Broad-Based Index Fund – By their nature, index funds buy everything – the good, the bad and the ugly. The strategy at CWS is to avoid fundamentally weak companies and only invest in the “first in class” companies.
<strong>Where Can CWS Fit in a Traditional Portfolio?</strong>

As a potential source of alpha, CWS can serve as a complement or satellite equity holding alongside of broadly based domestic equity position.

<strong>Key Attributes</strong>
  1. Concentrated Portfolio – The Fund typically holds 25 stocks. By focusing on a small group of high-quality stocks, the Portfolio Manager feels that the portfolio can most efficiently exploit the advantages of owning top tier companies.
  2. Crossing Wall Street’s Buy List – CWS’s principal investment strategy is based on the Crossing Wall Street “Buy List,” an annual list of 25 stocks selected by the Portfolio Strategist that has been in place since 2006. Central to the Buy List is the concept that quality companies can outperform the broad market especially when implemented with a long term, patient focus.
  3. Bottom Up, Fundamental Stock Selection – CWS seeks to benefit from investing in the highest-quality companies. These are typically firms with proven managements, solid balance sheets and strong market positions. CWS stocks often have a long history of steadily rising sales, earnings and dividends.
  4. Disciplined and Patient Approach – The Portfolio Strategist understands that stock prices are much more volatile than their underlying fundamentals. That’s why CWS takes a long-term view. With longer holding periods, the CWS strategy seeks to benefit from the market’s well-known tendency to overact to any sign of trouble.
  5. Value Focus – CWS strives to buy the highest-quality stocks at the lowest possible prices. By focusing on value, the Fund aims to reduce its risk to broad-based market drops. A commitment to value also aids long-term capital appreciation.
<strong>About the Portfolio Strategist</strong>
Eddy J. Elfenbein
“Eddy” Elfenbein has been a leading writer in the financial community since starting the Crossing Wall Street (CWS) website and CWS “Buy List” in 2005 and 2006, respectively. He has been widely quoted in the business and financial media, including Barron’s and the Wall Street Journal. Mr. Elfenbein often appears on CNBC and Bloomberg, where he shares his insights on the market and the economy. He also authors the weekly “CWS Market Review” and the monthly “Growth Stock Advisor” newsletters. Mr. Elfenbein earned his undergraduate degree from Washington College and an MBA in Finance and Management from the University of Connecticut.
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Fund

Price History

As of 9/23/2021

NAV $47.80 Closing Price $47.78
Change $0.44 Close Change $0.43
Shares Outstanding 620,000 Volume 549
4PM Bid/Offer Midpoint $47.78 Premium Discount $-0.02
Assets Under Management $29,638,519.07 30-Day Median bid-ask Spread -
Premium/Discount Historical Data | NAV Historical Data | Daily Premium/Discount 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 8/31/2021

  NAV Market Price Return S&P 500 Index
1 Month 1.37 1.7 3.04
3 Months 5.15 5.29 7.95
YTD 12.6 11.95 21.58
1 Year 22.91 23.65 31.17
3 Years 14.29 14.33 18.07
Since Inception (9/20/2016, Annualized) 15.36 15.4 18.56

As of 6/30/2021

  NAV Market Price Return S&P 500 Index
1 Month 0.31 0.34 2.33
3 Months 4.76 4.43 8.55
YTD 7.42 6.7 15.25
1 Year 31.15 34.2 40.79
3 Years 14.86 14.9 18.67
Since Inception (9/20/2016, Annualized) 14.81 14.82 17.95

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.

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.

Fund

Holdings

As of

Excel    CSV

Date Account Symbol Stock Ticker Security Number Security Description Shares/Par (Full) Price (Base) Traded Market Value (Base) Portfolio Weight % Asset Group
09/24/2021 CWS DHR 235851102 DANAHER CORP 4,816.00 324.5 1,562,792.00 5.27% S
MIDD 596278101 MIDDLEBY CORP 8,211.00 173.77 1,426,825.47 4.81% S
TMO 883556102 THERMO FISHER SCIENTIFIC INC 2,283.00 609.78 1,392,127.74 4.69% S
MCO 615369105 MOODY'S CORP 3,684.00 376.27 1,386,178.68 4.67% S
TREX 89531P105 TREX COMPANY INC 12,658.00 107.3 1,358,203.40 4.58% S
ZTS 98978V103 ZOETIS INC 6,463.00 204.73 1,323,169.99 4.46% S
SHW 824348106 SHERWIN-WILLIAMS CO/THE 4,391.00 291.8 1,281,293.80 4.32% S
AFL 001055102 AFLAC INC 24,123.00 52.63 1,269,593.49 4.28% S
HSY 427866108 HERSHEY CO/THE 7,040.00 174.04 1,225,241.60 4.13% S
SYK 863667101 STRYKER CORP 4,390.00 276.64 1,214,449.60 4.09% S
ABT 002824100 ABBOTT LABORATORIES 9,764.00 124.37 1,214,348.68 4.09% S
FDS 303075105 FACTSET RESEARCH SYSTEMS INC 3,198.00 372.78 1,192,150.44 4.02% S
BR 11133T103 BROADRIDGE FINANCIAL SOLUTIO 6,967.00 169.01 1,177,492.67 3.97% S
ICE 45866F104 INTERCONTINENTAL EXCHANGE IN 9,338.00 119.74 1,118,132.12 3.77% S
SLGN 827048109 SILGAN HOLDINGS INC 28,746.00 38.88 1,117,644.48 3.77% S
HEI 422806109 HEICO CORP 8,056.00 134.7 1,085,143.20 3.66% S
ANSS 03662Q105 ANSYS INC 2,894.00 361.55 1,046,325.70 3.53% S
FISV 337738108 FISERV INC 9,370.00 109.74 1,028,263.80 3.47% S
DIS 254687106 WALT DISNEY CO/THE 5,802.00 176 1,021,152.00 3.44% S
CHD 171340102 CHURCH & DWIGHT CO INC 12,203.00 82.98 1,012,604.94 3.41% S
ROST 778296103 ROSS STORES INC 8,664.00 115.99 1,004,937.36 3.39% S
SCL 858586100 STEPAN CO 9,004.00 111.36 1,002,685.44 3.38% S
CERN 156782104 CERNER CORP 13,612.00 72.98 993,403.76 3.35% S
MLR 600551204 MILLER INDUSTRIES INC/TENN 28,050.00 34.96 980,628.00 3.31% S
CHKP M22465104 CHECK POINT SOFTWARE TECH 7,932.00 117.47 931,772.04 3.14% FS
X9USDBLYT BLACKROCK TREASURY TRUST INSTL 62 330,610.02 1 330,610.02 1.11% MM
CASH -26,608.62 100 -26,608.62 -0.09% CA

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 7/31/2021

CWS Market Cap

CWS Sector Allocation

CWS Fulcrum Fee

FUND

Fees & Expenses

Management Fee 0.77%
Other Expenses 0.78%
Gross Expenses Ratio 1.43%
Fee Waver and/or Expenses Reimbursement -0.66%
Net Expense Ratio 0.77%*

The Fund’s base management fee is 0.75% and will increase or decrease based on the trailing 12-month net returns of CWS compared to its benchmark. The Advisor has contractually agreed to reduce its fees and/or reimburse expenses to keep net expenses (excluding amounts payable pursuant to any plan adopted in accordance with Rule 12b-1, interest expense, taxes, brokerage commissions, acquired fund fees and expenses, other expenditures which are capitalized in accordance with generally accepted accounting principles, and extraordinary expenses) from exceeding a percentage of the Fund’s average daily net assets equal to the annual rate of the management fee, which can range from 0.65% to 0.85%, for at least one year from the date of the Prospectus. See the Prospectus for information.

 

Last Ten

Fund Distributions

  • 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 the Fund’s website at www.AdvisorShares.com. Please read the prospectus carefully before you invest. Foreside Fund Services, LLC, Distributor.

    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. The prices of equity securities rise and fall daily. These price movements may result from factors affecting individual issuers, industries or the stock market as a whole. Shares of the Fund may trade above or below their net asset value (“NAV”). The trading price of the Fund’s shares may deviate significantly from their NAV during periods of market volatility. There can be no assurance that an active trading market for the Fund’s shares will develop or be maintained.In addition, equity markets tend to move in cycles which may cause stock prices to fall over short or extended periods of time. Other Fund risks include market risk, liquidity risk, large cap, mid cap, and small cap risk. Please see prospectus for details regarding risk.

    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.