(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 manager believes have favorable fundamental attributes.

The Advisor may use a variety of methods for security selection and will seek to focus on firms that are fundamentally sound and have shown consistency in their financial results and high earnings quality. The Advisor 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 Advisor may invest the Fund’s assets in lesser-known companies that the Advisor believes have a unique opportunity for growth. At times, the Advisor may buy certain out-of-favor stocks believed to be priced below their intrinsic value, as measured by the Advisor. Additionally, the Advisor aims to keep the portfolio turnover low.

CWS’s principal investment strategy has been employed by the portfolio manager, Eddy Elfenbein, since 2006 and is published annually as the Crossing Wall Street “Buy List.” The Buy List is a list of 25 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. Each year, only five stocks, just one-fifth of the Buy List, have been replaced.



Symbol Exchange Inception Date CUSIP Indicative Value
CWS NYSE Arca 09/20/2016 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 manager of CWS has “skin in the game.” The manager’s compensation is directly tied to portfolio’s performance. Stronger out-performance is rewarded with a larger management fee while weak or under-performance is penalized with a smaller management fee.
  • Disciplined Stock-Picking Strategy – CWS is focused on a core group of outstanding companies. The Portfolio Manager believes that CWS offers an attractive and simple way for an investor to get instant exposure to a concentrated portfolio of companies with proven competitive advantages.
<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 Manager 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 Manager 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 Manager</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 9/20/2019

NAV $35.38 Closing Price $35.75
Change $-0.23 Close Change $-0.09
Shares Outstanding 500,000.00 Volume 4,866
4PM Bid/Offer Midpoint $35.45 Premium Discount $0.07
Assets Under Management $17,689,591.15

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. 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

Performance

As of 8/31/2019

NAV Market Price Return S&P 500 Index
1 Month 0.03 -0.28 -1.58
3 Months 7.02 6.06 6.87
YTD 22.30 21.73 18.34
1 Year 6.36 6.12 2.92
Since Inception (9/20/2016, Annualized) 13.30 13.22 13.47

As of 6/30/2019

NAV Market Price Return S&P 500 Index
1 Month 5.04 3.94 7.05
3 Months 6.25 5.93 4.30
YTD 20.04 19.30 18.54
1 Year 11.09 10.74 10.42
Since Inception (9/20/2016, Annualized) 13.40 13.26 14.42

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.

Top Ten

Holdings

As of 9/20/2019

Date Account Symbol Stock Ticker Security Number Security Shares Price Market Value Weight % Asset Group
09/20/2019 CWS MCO 615369105 MOODY'S CORP 4,120.00 214.08 882,009.60 4.99% S 1
CWS DHR 235851102 DANAHER CORP 5,639.00 146.47 825,944.33 4.67% S 1
CWS SYK 863667101 STRYKER CORP 3,719.00 221.20 822,642.80 4.65% S 1
CWS HSY 427866108 HERSHEY CO/THE 5,285.00 153.94 813,572.90 4.60% S 1
CWS FISV 337738108 FISERV INC 7,790.00 104.08 810,783.20 4.58% S 1
CWS FDS 303075105 FACTSET RESEARCH SYSTEMS INC 2,834.00 282.29 800,009.86 4.52% S 1
CWS SHW 824348106 SHERWIN-WILLIAMS CO/THE 1,451.00 550.54 798,833.54 4.52% S 1
CWS CERN 156782104 CERNER CORP 10,988.00 68.44 752,018.72 4.25% S 1
CWS BR 11133T103 BROADRIDGE FINANCIAL SOLUTIO 5,870.00 126.71 743,787.70 4.20% S 1
CWS RTN 755111507 RAYTHEON COMPANY 3,762.00 194.93 733,326.66 4.15% S 1
CWS GL 37959E102 GLOBE LIFE INC 7,684.00 94.65 727,290.60 4.11% S 1
CWS ROST 778296103 ROSS STORES INC 6,853.00 104.75 717,851.75 4.06% S 1
CWS ICE 45866F104 INTERCONTINENTAL EXCHANGE IN 7,693.00 92.33 710,294.69 4.02% S 1
CWS DIS 254687106 WALT DISNEY CO/THE 5,313.00 132.27 702,750.51 3.97% S 1
CWS RPM 749685103 RPM INTERNATIONAL INC 9,738.00 68.43 666,371.34 3.77% S 1
CWS AFL 001055102 AFLAC INC 12,783.00 51.97 664,332.51 3.76% S 1
CWS BDX 075887109 BECTON DICKINSON AND CO 2,582.00 253.55 654,666.10 3.70% S 1
CWS SBNY 82669G104 SIGNATURE BANK 5,362.00 119.65 641,563.30 3.63% S 1
CWS SJM 832696405 JM SMUCKER CO/THE 5,883.00 107.81 634,246.23 3.59% S 1
CWS CHD 171340102 CHURCH & DWIGHT CO INC 8,669.00 72.80 631,103.20 3.57% S 1
CWS CBPX 211171103 CONTINENTAL BUILDING PRODUCTS INC 22,166.00 27.24 603,801.84 3.41% S 1
CWS CHKP M22465104 CHECK POINT SOFTWARE TECH 5,423.00 108.90 590,564.70 3.34% FS 1
CWS HRL 440452100 HORMEL FOODS CORP 13,242.00 42.94 568,611.48 3.21% S 1
CWS CTSH 192446102 COGNIZANT TECH SOLUTIONS-A 9,013.00 61.80 557,003.40 3.15% S 1
CWS EGBN 268948106 EAGLE BANCORP INC 11,614.00 44.31 514,616.34 2.91% S 1
CWS X9USDBLYT BLACKROCK TREASURY TRUST INSTL 62 172,436.81 1.00 172,436.81 0.97% MM 0
CWS CASH (51,297.91) 100.00 (51,297.91) -0.29% CA 0

FUND

Characteristics

As of 08/31/2019

CWS Market Cap

CWS Fulcrum Fee

CWS Sector Allocation

FUND

Fees & Expenses

Management Fee 0.68%
Other Expenses 0.71%
Gross Expenses Ratio 1.39%
Fee Waver and/or Expenses Reimbursement -0.71%
Net Expense Ratio 0.68%*

*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 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

Ex-Date Record Date Pay Date Cash Div ST Cap Gain LT Cap Gain Return of Capital Total Distribution (per share) CWS
12/27/2019 12/30/2019 - - - - -
12/27/2018 12/28/2018 12/31/2018 $0.7502 $0.2232 $0.3718 $0.0000 $0.7502
12/27/2017 12/28/2017 12/29/2017 $0.8982 $0.0000 $0.0000 $0.0000 $0.0898
12/23/2016 12/28/2016 12/30/2016 $0.0088 $0.0000 $0.0000 $0.0000 $0.0088
  • 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.