EATZ: 3rd Quarter 2021 Portfolio Manager 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/eatz.

Commentary

​For the 3rd quarter, the AdvisorShares Restaurant ETF (EATZ) returned -5.39% on its net asset value (NAV) and -5.28% on its market price. The Fund launched on April 20, 2021 and in that short period through September 30,2021, it had a loss of -6.34% (NAV) and -6.24% (market price), as COVID and employment concerns have continued to weigh on the restaurant industry.

While the Fund’s overall performance is largely tied to the success of the restaurant industry, we aim for relative outperformance through good individual security selection and successful trading. We remain bullish on the longer-term prospects for restaurant performance.

New Positions:

Only a couple of new additions were made to the portfolio during the quarter: One Group Hospitality (NASDAQ: STKS) and Cracker Barrel (NASDAQ: CBRL). Over the course of the three-month period, we added onto multiple positions while trimming others.

Contributors / Detractors:

During this continued difficult time for the industry, the losers definitely outnumbered the winners. Most regular dining chains were down, while a few bright spots came from some entertainment-focused establishments and a few specialty restaurants.

Top Holdings

Ticker Security Description Portfolio Weight %
RICK RCI HOSPITALITY HOLDINGS INC 6.40%
YUM YUM! BRANDS INC 5.66%
PZZA PAPA JOHN’S INTL INC 5.59%
CHUY CHUY’S HOLDINGS INC 5.37%
DPZ DOMINO’S PIZZA INC 4.90%
BLMN BLOOMIN’ BRANDS INC 4.87%
SBUX STARBUCKS CORP 4.38%
JACK JACK IN THE BOX INC 4.21%
DRI DARDEN RESTAURANTS INC 4.19%
FRGI FIESTA RESTAURANT GROUP 4.19%

As of 9.30.2021. Cash is not included. Subject to change.

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

 

Cheers,

Dan Ahrens
AdvisorShares
AdvisorShares Restaurant ETF (EATZ) 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.

The success of companies owning and operating restaurants depends heavily on disposable household income and consumer spending, and changes in demographics and consumer preferences can affect the success of such companies. These companies may be subject to severe competition, which may have an adverse impact on their profitability. In addition, restaurants may be affected by nutritional and health concerns, and federal, state and local food inspection and processing controls. Changes in labor laws and other labor issues, such as increased labor costs, could adversely affect the financial performance of such companies