(DBLV) DOUBLELINE VALUE EQUITY ETF
Domestic Large Cap Value
Overall rating as of 8/31/2019 based on risk adjusted returns of 368 funds
Sub-advisor DoubleLine Equity LP actively manages the AdvisorShares DoubleLine Value Equity ETF (DBLV) under a fundamental value strategy. Fundamental value investing targets two opportunity sets which arise when the market temporarily prices the equity of companies below intrinsic value: classic value and quality value common stocks.
DBLV seeks to deliver capital appreciation and attractive risk-adjusted returns over full market cycles. Under DBLV’s fundamental value strategy, the investment team seeks to invest in classic value opportunities in low-multiple stocks of companies with temporarily depressed earnings and in quality value opportunities in durable or disruptor franchises. Quality value opportunities often are invisible under a classic value lens.
The investment team employs a rigorous, thoughtful and repeatable fundamental research process to determine the intrinsic value of potential target companies, uncover mispricing opportunities and construct a portfolio concentrated in typically 35 to 50 well-understood classic value and quality value stocks. The strategy invests in companies with market capitalizations of at least $2 billion, but the portfolio primarily comprises stocks of large-cap companies. The team works to maintain high active share and low portfolio turnover.
|Symbol||Exchange||Inception Date||CUSIP||Indicative Value|
<strong>Why Invest in DBLV?</strong>
- Prospective Return to Value’s Historic Attractiveness – Value investing has a long, established history of providing attractive risk-adjusted returns relative to other investment styles. This can be especially true when rates are rising and central banks are employing quantitative tightening, a macroeconomic phase that the investment team believes is under way.
- Differentiated Investment Strategy & Process – The fundamental value strategy implemented in DBLV includes classic value stocks and enlarges the investment opportunities to include quality value stocks. The investment team has the in-depth research process required to execute its differentiated investment strategy. This allows them to find value in an economy being transformed by the disruptive competitive impacts of the digital economy and related technological change. While such creative destruction has disadvantaged the performance of more classic value approaches, it can potentially create attractive opportunities for DBLV.
- Leading Investment Firm – DoubleLine delivers a unique combination of reputation, resources, portfolio management expertise and investment experience navigating market and credit cycles, which makes the firm well-adept at assessing risks and discovering opportunities across markets and asset classes. The portfolio management team leverages this wider array of talent and resources to enhance their investment insights and acumen.
- Core Equity Diversification – Investing in a disciplined, value strategy can serve as part of a core domestic equity allocation, thereby helping further diversify manager and strategy risk, and potentially reducing overall portfolio risk.
<strong>Where Can DBLV Fit in a Traditional Portfolio?</strong>
DBLV can serve as part of a core domestic equity allocation, or as a fundamental, alpha-seeking complement to market cap, growth, or technical allocations within an equity investment portfolio.
- Thoughtful Approach to Value – Value investing is a timeless discipline that can yield attractive risk-adjusted returns when consistently and intelligently applied over long periods of time. DBLV’s fundamental value investment strategy involves discovering mispricing opportunities caused by cognitive biases across a broader set of investment opportunities, enlarging the opportunity set beyond classic value set-ups of deeply underpriced cyclical companies to also include quality value set-ups in powerful franchises.
- Robust, Repeatable Research Process – The investment team’s independent assessment of the intrinsic value of a company’s equity is established and tested in light of detailed due diligence, sound judgment, and a long-term time horizon. This process generates a candidate for investment when the team identifies a meaningful discount, which includes an adequate margin of safety. This data-driven research process is consistently applied in an effort to ensure objective evaluation and comparability of investment opportunities.
- Concentrated Portfolio on Best Ideas – The management team seeks to concentrate their investment portfolio on typically 35-50 of their best ideas, mostly comprised of large market capitalization U.S.-traded equities. Such focus ensures that portfolio holdings are well-understood and the team’s best ideas are not diluted. The team seeks to construct the portfolio from a broad variety of investment ideas and industries to achieve diversification.
- Active Risk Management – Viewing risk as permanent business impairment rather than stock price volatility, the investment team seeks to deliver attractive risk-adjusted returns by maintaining discipline to minimize emotions and mistakes. Share price declines are driven by market perceptions of risk which at times are mistaken. The team does not react simplistically to price changes. Instead, they seek to maintain an objective assessment of the business risks. This means reaching decisions from detailed fundamental analysis, portfolio risk management guidelines and macroeconomic considerations.
- Long-Term Focus – Because mispricing opportunities often take years to resolve, the investment team takes a long-term view with regard to equity research and portfolio management. In other words, the team strives to look through short-term adverse market reactions and retain investment conviction through time. This longer-term orientation also supports high active share and low portfolio turnover, which can contribute to attractive risk-adjusted returns.
<strong>About the Portfolio Managers</strong>
Emidio Checcone, CFA
Mr. Checcone is a portfolio manager who oversees active equity strategies at DoubleLine. Mr. Checcone has nearly 20 years of professional investment experience. Before joining DoubleLine, Mr. Checcone worked as Portfolio Manager at Huber Capital Management and as Equity Research Analyst at PRIMECAP Management. He earned a Bachelor of Arts from Harvard College, a Master of Business Administration from Harvard Business School and a Juris Doctor from Harvard Law School. He holds the Chartered Financial Analyst (CFA) designation.
Brian Ear, CFA, CPA
Mr. Ear is a portfolio manager who oversees active equity strategies at DoubleLine. He has 20 years of professional investment experience. Before joining DoubleLine, Mr. Ear worked as Portfolio Manager at Palmyra Capital Advisors and in analyst roles at Hotchkis and Wiley Capital Management. He earned a Bachelor of Science from The Wharton School at The University of Pennsylvania. He holds the Chartered Financial Analyst (CFA) and Certified Public Accountant (CPA) designations.
As of 9/20/2019
|4PM Bid/Offer Midpoint||$70.72||Premium Discount||$0.10|
|Assets Under Management||$60,030,128.80|
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.
As of 8/31/2019
|NAV||Market Price Return||Russell 1000 Value|
|Since Inception (10/04/2011, Annualized)||13.92||13.94||13.37|
As of 6/30/2019
|NAV||Market Price Return||Russell 1000 Value|
|Since Inception (10/04/2011, Annualized)||14.00||13.99||14.00|
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.
*On October 11, 2018, the AdvisorShares Wilshire Buyback ETF (the “Predecessor Fund”) was renamed the AdvisorShares DoubleLine Value Equity ETF. The Predecessor Fund had different portfolio managers and investment strategy than the DoubleLine Value Equity ETF. Performance prior to October 12, 2018 reflects the Fund’s performance prior to the change in manager and investment strategy and may not be indicative of the Fund’s performance under the new manager and revised investment strategy. Performance since October 12, 2018 reflects actual DoubleLine Value Equity ETF performance.
As of 9/20/2019
|Date||Account Symbol||Stock Ticker||Security Number||Security||Shares||Price||Market Value||Weight %||Asset Group|
|09/20/2019||DBLV||VZ||92343V104||VERIZON COMMUNICATIONS INC||39,045.00||60.29||2,354,023.05||3.92%||S||1|
|DBLV||JPM||46625H100||JPMORGAN CHASE & CO||17,460.00||118.90||2,075,994.00||3.46%||S||1|
|DBLV||PM||718172109||PHILIP MORRIS INTERNATIONAL||25,841.00||71.20||1,839,879.20||3.06%||S||1|
|DBLV||AMT||03027X100||AMERICAN TOWER CORP||8,142.00||225.56||1,836,509.52||3.06%||S||1|
|DBLV||GOOGL||02079K305||ALPHABET INC-CL A||1,331.00||1,229.84||1,636,917.04||2.73%||S||1|
|DBLV||AZN||046353108||ASTRAZENECA PLC-SPONS ADR||36,198.00||45.18||1,635,425.64||2.72%||FS||1|
|DBLV||PNC||693475105||PNC FINANCIAL SERVICES GROUP||11,423.00||140.88||1,609,272.24||2.68%||S||1|
|DBLV||USFD||912008109||US FOODS HOLDING CORP||34,948.00||42.81||1,496,123.88||2.49%||S||1|
|DBLV||CMCSA||20030N101||COMCAST CORP-CLASS A||30,958.00||46.36||1,435,212.88||2.39%||S||1|
|DBLV||BAC||060505104||BANK OF AMERICA CORP||47,416.00||29.59||1,403,039.44||2.34%||S||1|
|DBLV||UTX||913017109||UNITED TECHNOLOGIES CORP||10,316.00||135.57||1,398,540.12||2.33%||S||1|
|DBLV||AEP||025537101||AMERICAN ELECTRIC POWER||14,331.00||93.18||1,335,362.58||2.22%||S||1|
|DBLV||XEL||98389B100||XCEL ENERGY INC||20,421.00||64.62||1,319,605.02||2.20%||S||1|
|DBLV||NVS||66987V109||NOVARTIS AG-SPONSORED ADR||14,703.00||87.07||1,280,190.21||2.13%||FS||1|
|DBLV||CVS||126650100||CVS HEALTH CORP||19,592.00||64.30||1,259,765.60||2.10%||S||1|
|DBLV||DG||256677105||DOLLAR GENERAL CORP||7,965.00||156.23||1,244,371.95||2.07%||S||1|
|DBLV||GS||38141G104||GOLDMAN SACHS GROUP INC||5,810.00||213.74||1,241,829.40||2.07%||S||1|
|DBLV||TJX||872540109||TJX COMPANIES INC||22,612.00||54.81||1,239,363.72||2.06%||S||1|
|DBLV||BK||064058100||BANK OF NEW YORK MELLON CORP||26,588.00||46.38||1,233,151.44||2.05%||S||1|
|DBLV||GD||369550108||GENERAL DYNAMICS CORP||6,543.00||187.37||1,225,961.91||2.04%||S||1|
|DBLV||BABA||01609W102||ALIBABA GROUP HOLDING-SP ADR||6,646.00||182.51||1,212,961.46||2.02%||FS||1|
|DBLV||TXN||882508104||TEXAS INSTRUMENTS INC||9,405.00||126.67||1,191,331.35||1.98%||S||1|
|DBLV||PXD||723787107||PIONEER NATURAL RESOURCES CO||8,502.00||134.34||1,142,158.68||1.90%||S||1|
|DBLV||INFO||G47567105||IHS MARKIT LTD||15,686.00||67.36||1,056,608.96||1.76%||FS||1|
|DBLV||EOG||26875P101||EOG RESOURCES INC||12,599.00||81.00||1,020,519.00||1.70%||S||1|
|DBLV||ICE||45866F104||INTERCONTINENTAL EXCHANGE IN||10,130.00||92.33||935,302.90||1.56%||S||1|
|DBLV||MSI||620076307||MOTOROLA SOLUTIONS INC||5,395.00||166.21||896,702.95||1.49%||S||1|
|DBLV||NOC||666807102||NORTHROP GRUMMAN CORP||2,036.00||368.18||749,614.48||1.25%||S||1|
|DBLV||FIS||31620M106||FIDELITY NATIONAL INFO SERV||5,552.00||131.81||731,809.12||1.22%||S||1|
|DBLV||CXO||20605P101||CONCHO RESOURCES INC||9,487.00||73.23||694,733.01||1.16%||S||1|
|DBLV||BAYRY||072730302||BAYER AG-SPONSORED ADR||35,183.00||18.51||651,237.33||1.08%||FS||1|
|DBLV||MRO||565849106||MARATHON OIL CORP||47,962.00||13.18||632,139.16||1.05%||S||1|
|DBLV||WLTW||G96629103||WILLIS TOWERS WATSON PLC||3,146.00||196.37||617,780.02||1.03%||FS||1|
|DBLV||FB||30303M102||FACEBOOK INC-CLASS A||3,233.00||189.93||614,043.69||1.02%||S||1|
|DBLV||GM||37045V100||GENERAL MOTORS CO||15,496.00||37.37||579,085.52||0.96%||S||1|
|DBLV||X9USDWELL||WELLS FARGO GOVT M MKT IN 1751||1,743,825.25||1.00||1,743,825.25||2.90%||MM||0|
As of 08/31/2019
DBLV Sector Allocation
DBLV Sector Allocation
Fees & Expenses
|Gross Expenses Ratio||0.90%|
|Net Expense Ratio||0.90%|
|Ex-Date||Record Date||Pay Date||Cash Div||ST Cap Gain||LT Cap Gain||Return of Capital||Total Distribution (per share)||DBLV|