(FNG) NEW TECH AND MEDIA ETF

FNG

Overview

The industrial revolution ushered in a new age of economic growth and development. Historically, the advent of innovative ways to build and communicate have continued to drive the global economy forward. Breakthroughs from the invention of the light bulb, transportation advancements, assembly lines, the telephone, computer chips and the internet have accelerated the growth of new companies as the equity markets progress higher and higher. The AdvisorShares New Tech and Media ETF (Ticker: FNG) is an actively managed strategy designed to invest in the companies that are driving economic growth in the modern era, and can adapt to changing leadership by maintaining the ability to invest in the next generation of technology and media companies leading the equity markets.

FNG’s investment thesis believes that high-performing technology and media leaders, popularly characterized as “FANG,” will continue to provide superior long-term performance. These disruptive innovators have created, acquired and refined current business models more successfully than others in the technology and media industries, establishing them as leaders on the forward edge. The portfolio manager seeks to identify additional constituents with similar characteristics using technical analysis, sampling and broad-based fundamental reviews to enhance the exposure of the portfolio. This approach will be dynamic, enabling the portfolio management team to use a repeatable and scalable process that consistently seeks out the next industry leaders in technology and media as those faces change over time.

Symbol Exchange Inception Date CUSIP Indicative Value Options
FNG NYSE Arca 7/11/2017 00768Y552 FNG.IV Available
<strong>Why Invest in FNG?</strong>
  • Current Day Market Leaders -The companies among the high-performing technology and media leadership advance commerce forward and can outperform broad market benchmarks. These equities are also consistently increasing their market cap within broad-based indexes due to superior fundamentals and company management. FNG’s portfolio management team believes these leadership qualities will be maintained as long-term drivers of equity markets.
  • Ability to Diversify Among Tech & Media Leaders -The strong balance sheets and appetites for expansion that exist within the high-growth equity core creates a natural diversifying quality to the ETF’s portfolio. Notable company acquisitions by market leaders exemplify how owning outliers may return more than originally assumed. FNG seeks to fill the void for those investors that don’t want to rely on specific equity selection therefore minimizing company specific risk, but maintain an investment view on the overall technology, media and social media industries.
  • Exposure to Future Tech & Media Leaders -Before the FANG acronym became apropos, there were the Four Horsemen (Microsoft, Intel, Dell and Cisco), and long prior to that came the Nifty Fifty. Inevitably, if history provides any guide, new companies will emerge to assume the role of market leaders. Whether that evolves in months, years or decades, the actively managed ETF’s investment process is designed to identify these new constituents and seeks to maintain their performance within the portfolio. The actively managed aspect of FNG allows for evolution and relevance, as opposed to the constraints and staleness that can follow index-based ETFs.
<strong>Where Can FNG Fit in a Traditional Portfolio?</strong>

FNG can provide a high-growth complement or satellite equity holding to a broadbased equity allocation, while mitigating specific company risk for investors seeking efficient exposure to the market leaders and disruptive innovators among technology and technology-related companies.

<strong>Key Attributes</strong>
  1. Narrow & Concentrated Exposure -FNG’s portfolio management team seeks to provide a similar return stream to the performance of technology and media equity leaders as characterized by the FANG stocks acronym, representative of the first letters of Facebook, Amazon, Netflix and Google (now Alphabet), as well as Alibaba often providing an additional “A” to make the “FAANG” acronym.
  2. Actively Managed Access to Current & Future Leaders -The companies in FNG’s high-growth portfolio have demonstrated leadership in their respective industries. By investing in such disruptive innovators and similar-type companies, this portfolio maintains both a leadership and a leading-edge role.
  3. Adapts with Disruptive Innovators -FNG offers actively managed ETF access to this concentration of high-performing technology and media stocks allowing flexibility within its portfolio, unlike the restrictions of following an index.
  4. Economically Friendly Product -FNG delivers a more inclusive price point for investors seeking exposure to the this segment of the equity market along with added diversification benefits. An expensive entry for many of these equity behemoths can prevent investors from buying shares of the individual companies.
<strong>About Sabretooth Advisors, LLC.</strong>

Sabretooth Advisors is an RIA comprised of a seasoned group of ETF and Trading industry professionals with an average of 20 years of financial services experience. Sabretooth has an affiliation with three financial service firms (Precision Securities, 212 Capital Management and Street One Financial), which provides extended outreach to the capital markets and the investment community.

<strong>About the Portfolio Manager</strong>

Scott Freeze, Chief Investment Officer & Portfolio Manager
Mr. Freeze has been involved with ETFs since entering the financial services industry in the 1990s. Prior to joining the Sub-Advisor in 2017, he worked for The Vanguard Group as a Supervisor for Vanguard Brokerage Services before moving to Croix Securities in 2002 to develop an automated trading platform. Mr. Freeze worked at Knight Capital from 2003 to 2005 on the program/ETF desk and Miller Tanaka from 2005 to 2008. Mr. Freeze founded Street One Financial in September 2009 to service ETF users and traders.

Fund

Price History

As of 9/20/2019

NAV $10.84 Closing Price $10.70
Change $-0.06 Close Change $-0.08
Shares Outstanding 1,000,000.00 Volume 1,683
4PM Bid/Offer Midpoint $10.70 Premium Discount $-0.14
Assets Under Management $10,836,168.72

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 -8.47 -8.76 -1.58
3 Months -10.80 -11.26 6.87
YTD -24.59 -25.49 18.34
1 Year -47.98 -48.32 2.92
Since Inception (7/11/2017, Annualized) -21.94 -22.29 11.36

As of 6/30/2019

NAV Market Price Return S&P 500 Index
1 Month -2.62 -2.97 7.05
3 Months -21.18 -21.68 4.30
YTD -17.68 -18.53 18.54
1 Year -39.39 -39.89 10.42
Since Inception (7/11/2017, Annualized) -20.11 -20.43 12.49

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.

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 FNG AMZN 023135106 AMAZON.COM INC 408.00 1,794.16 732,017.28 6.76% S 1
FNG CLDR 18914U100 CLOUDERA INC 60,000.00 9.01 540,600.00 4.99% S 1
FNG MSFT 594918104 MICROSOFT CORP 3,525.00 139.44 491,526.00 4.54% S 1
FNG MDB 60937P106 MONGODB INC 3,500.00 131.82 461,370.00 4.26% S 1
FNG AMD 007903107 ADVANCED MICRO DEVICES 14,633.00 30.05 439,721.65 4.06% S 1
FNG PAYC 70432V102 PAYCOM SOFTWARE INC 2,000.00 215.96 431,920.00 3.99% S 1
FNG TWLO 90138F102 TWILIO INC - A 3,716.00 114.22 424,441.52 3.92% S 1
FNG SHOP 82509L107 SHOPIFY INC - CLASS A 1,300.00 318.82 414,466.00 3.82% FS 1
FNG AYX 02156B103 ALTERYX INC - CLASS A 3,500.00 117.96 412,860.00 3.81% S 1
FNG NOW 81762P102 SERVICENOW INC 1,500.00 271.17 406,755.00 3.75% S 1
FNG AMRN 023111206 AMARIN CORP PLC -ADR 24,000.00 16.84 404,160.00 3.73% FS 1
FNG TTD 88339J105 TRADE DESK INC/THE -CLASS A 1,902.00 207.05 393,809.10 3.63% S 1
FNG VIPS 92763W103 VIPSHOP HOLDINGS LTD - ADR 40,000.00 9.75 390,000.00 3.60% FS 1
FNG ADBE 00724F101 ADOBE INC 1,400.00 277.91 389,074.00 3.59% S 1
FNG CRM 79466L302 SALESFORCE.COM INC 2,500.00 155.20 388,000.00 3.58% S 1
FNG ZEN 98936J101 ZENDESK INC 5,000.00 77.49 387,450.00 3.58% S 1
FNG NEWR 64829B100 NEW RELIC INC 6,000.00 63.22 379,320.00 3.50% S 1
FNG BIDU 056752108 BAIDU INC - SPON ADR 3,500.00 105.16 368,060.00 3.40% FS 1
FNG WDAY 98138H101 WORKDAY INC-CLASS A 2,100.00 174.97 367,437.00 3.39% S 1
FNG FB 30303M102 FACEBOOK INC-CLASS A 1,904.00 189.93 361,626.72 3.34% S 1
FNG ANET 40413106 ARISTA NETWORKS INC 1,500.00 240.06 360,090.00 3.32% S 1
FNG GOOG 02079K107 ALPHABET INC-CL C 286.00 1,229.93 351,759.98 3.25% S 1
FNG SINA G81477104 SINA CORP 8,000.00 42.56 340,480.00 3.14% FS 1
FNG STNE G85158106 STONECO LTD-A 9,406.00 36.03 338,898.18 3.13% FS 1
FNG VMW 928563402 VMWARE INC-CLASS A 2,000.00 150.78 301,560.00 2.78% S 1
FNG X9USDDGCM DREYFUS GOVT CASH MAN INS 607,727.56 1 607,727.56 5.61% MM 0
FNG CASH -49,181.39 100 -49,181.39 -0.45% CA 0

FUND

Characteristics

As of 08/31/2019

FNG Market Cap

FNG Sector Allocation

FNG Domestic vs International

FUND

Fees & Expenses

Management Fee 0.60%
Other Expenses 0.40%
Acquired Fund Fees 0.01%
Gross Expenses Ratio 1.01%
Fee Waiver and/or Expense Reimbursement -0.15%
Net Expense Ratio 1.86%

*The Advisor has contractually agreed to reduce its fees and/or reimburse expenses to keep net expenses from exceeding 0.85% of the Fund’s average daily net assets for at least one year from the date of the Prospectus.

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) FNG
12/27/2019 12/30/2019 - - - - -
12/27/2018 12/28/2018 12/31/2018 $0.00 $0.00 $0.00 $0.00 $0.0000
12/27/2017 12/28/2017 12/29/2017 $0.00 $0.00 $0.00 $0.00 $0.0000
  • 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.

    Investing involves risk including possible loss of principal. Computer software/services companies can be significantly affected by competitive pressures, aggressive pricing, technological developments, changing domestic demand, the ability to attract and retain skilled employees and availability and price of components. Many computer software/services companies rely on a combination of patents, copyrights, trademarks and trade secret laws to establish and protect their proprietary rights in their products and technologies. There can be no assurance that the steps taken by computer software/services companies to protect their proprietary rights will be adequate to prevent misappropriation of their technology or that competitors will not independently develop technologies that are substantially equivalent or superior to such companies’ technology. Stocks of technology companies and companies that rely heavily on technology, especially those of smaller, less-seasoned companies, tend to be more volatile than the overall market. Additionally, companies in the technology sector may face dramatic and often unpredictable changes in growth rates and competition for the services of qualified personnel. For other risks specific to the fund please read the prospectus.

    Shares are bought and sold at market price not net asset value (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.