(FWDB) FolioBeyond Smart Core Bond ETF



AdvisorShares is pleased to welcome FolioBeyond as the new research strategist for FWDB with this ETF’s recent portfolio management transition. While the ETF’s name has changed, both FWDB’s investment objective and ticker symbol remain the same. Learn more about FWDB’s institutional-quality investment approach and how it remains a compelling, core strategy for global bond diversification.

FolioBeyond represents the next generation, institutional-quality quantitative asset management platform – intersecting a deeply experienced investment team rooted in fixed income markets with state-of-the-art financial technology. Their forward-looking integration provides a dynamic, core bond strategy enhanced by ETF structural attributes including operational and tax efficiencies.

The AdvisorShares FolioBeyond Smart Core Bond ETF (Ticker: FWDB) features their institutional-quality portfolio management employing a quantitative process that invests without selection bias, seeking investment results that exceed the price and yield performance of its benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index. FWDB utilizes FolioBeyond’s advanced asset allocation process which actively invests across 20-plus distinct bond classes that cover the major sectors of the global investable fixed income universe. FWDB’s dynamic approach evaluates a multitude of factors including value measures, momentum, correlation effects and implied volatility levels to invest opportunistically and optimize risk management for its underlying portfolio.

Symbol Exchange Inception Date CUSIP Indicative Value
FWDB NYSE Arca 6/20/2011 00768Y834 FWDB.IV
<strong>Why Invest in FWDB?</strong>
  • Portfolio Diversification – FWDB spreads its investment risk by allocating across a subset of 20-plus different bond classes which seeks to mitigate risk and deliver attractive diversification benefits not found in funds that follow the Bloomberg Barclays U.S. Aggregate Bond Index.
  • Alpha-Seeking, Quantitative Approach – Leveraging FolioBeyond’s optimization framework, FWDB’s forward-looking core bond strategy invests dynamically and without selection bias to better capture value and momentum factors while maintaining comparable risk targets relative to its benchmark.
  • Simplified Fixed Income Solution – FWDB delivers a simplified approach to fixed income investing and is designed for advisors and investors seeking a core, standalone strategy that invests across most major bond classes.
<strong>Key Attributes</strong>
  1. Optimization Framework – FWDB utilizes FolioBeyond’s advanced optimization framework which is built from over 100 years of combined experience in investment management and financial technology. The proprietary framework analyzes risk-adjusted return projections to capture the key attributes of its investable bond universe taking account of essential factors including value and momentum.
  2. Active Allocation – FWDB can dynamically invest across 20-plus distinct fixed income classes including treasuries, agencies, corporates, bank loans, mortgage-backed securities, commercial mortgage-backed securities, municipal bonds, treasury inflation protected securities, international bonds (both developed and emerging market), and real estate investment trusts. The portfolio actively maintains exposure typically among five to ten bond classes primarily using liquid ETFs.
  3. Risk Management – FWDB utilizes rigorous risk management that customizes constraints and estimates return volatility based on a combination of implied and historical volatility measures, and determines correlations across all asset classes with controlled downside risk in stressed environments.
  4. Operational & Tax Efficiency – Fully transparent FWDB incorporates tax efficiency practices in its allocation process to enhance the fund’s return.
<strong>About the Portfolio Manager</strong>
As the firm’s name suggests, its mission goes far beyond traditional asset managers in delivering a transparent, cost-effective, and customercentric experience. The overall goal is to provide advanced asset management solutions that leverage automation and technology. FolioBeyond was created by entrepreneurs and experts in investment management and financial technology. But most importantly, FolioBeyond is designed by experienced professionals who saw flaws in existing automated services and quantitative practices as well as inefficiencies in traditional wealth management platforms. FolioBeyond seeks to provide a high quality alternative by creating a service based on accuracy, transparency and no hidden fees or any secret agendas in helping institutions, advisors and individual investors reach their financial goals.

Yung Lim – Research Strategist
Yung Lim is the CEO of FolioBeyond, LLC, where he manages the next generation, institutional-quality automated asset management platform. He has over thirty years of experience in the fixed income markets primarily focused on investment management, risk management, and quantitative trading strategies. During the past 16+ years at Treesdale Partners as co-founder, he has overseen the firm’s multi-manager and direct investment funds, managing alternative strategies for major institutional investors with peak AUM of $2.3 billion. Previously, Mr. Lim founded Pedestal in 1997 to provide a comprehensive electronic platform serving the mortgage market, funded by Reuters, Deutsche Bank, and Battery Ventures. He also was a senior consultant at Andrew Davidson & Co., a premier consulting firm specializing in structured products, where he advised major financial institutions and developed advanced analytical tools. Early in his career, Mr. Lim was a vice president at Merrill Lynch and in charge of its mortgage desk, typically overseeing $5 billion in inventory. Mr. Lim has co-authored a book on advanced valuation and analysis techniques for mortgage securities titled Collateralized Mortgage Obligations, by Davidson, Ho, and Lim. Mr. Lim has an M.B.A. from the University of Chicago and a B.S. in Electrical Engineering from the California Institute of Technology.

Dan Ahrens
Dan Ahrens is managing director and chief operating officer of AdvisorShares. Dan carries over two decades of experience in the financial services industry serving in a variety of senior-level capacities. He founded Ahrens Advisors, L.P., an SEC-registered investment advisor, where he was portfolio manager of the Ladenburg Thalmann Gaming and Casino Fund. Dan also served as president of the MUTUALS.com Funds, where he launched the Vice Fund (VICEX) and served as its original portfolio manager. He was also the portfolio manager of the Generation Wave Growth Fund (GWGFX). During that time, he was also president and chief compliance officer of Mutuals Advisors, Inc, and acted as president, treasurer and financial & operations officer of an affiliated broker dealer firm. Dan is the author of “Investing in Vice” (St. Martin’s Press, 2004) and has appeared prominently across financial media outlets and major national and trade publications. He earned a Bachelor in Business Administration in Finance from Texas Tech University.

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Price History

As of 10/29/2021

NAV $25.8 Closing Price $25.78
Change $-0.01 Close Change $-0.01
Shares Outstanding 125,000 Volume 8
4PM Bid/Offer Midpoint $25.78 Premium Discount $-0.02
Assets Under Management $3,224,415.07 30-Day Median bid-ask Spread 0.4636785
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.



As of 10/31/2021

  NAV Market Price Return Barclays Capital Aggregate Bond Index
1 Month -0.12 -0.07 -0.03
3 Months -0.52 -0.47 -1.08
YTD -0.13 -0.22 -1.58
1 Year 2.96 2.8 -0.48
3 Years 4.28 4.26 5.63
5 Years 3.39 3.37 3.1
10 Years 3.33 3.28 3
Since Inception (6/20/2011, Annualized) 3.43 3.42 3.22

As of 9/30/2021

  NAV Market Price Return Barclays Capital Aggregate Bond Index
1 Month -0.44 -0.44 -0.87
3 Months 0.37 0.25 0.05
YTD -0.01 -0.15 -1.55
1 Year 2.86 2.77 -0.9
3 Years 3.77 3.74 5.36
5 Years 3.18 3.16 2.94
10 Years 3.6 3.56 3.01
Since Inception (6/20/2011, Annualized) 3.47 3.46 3.25

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.



As of

Excel    CSV

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 7/31/2021

FWDB Sector Allocation


Fixed Income Attributes

As of

Date Description FWDB
09/30/2021 30-Day SEC Subsidized Yield 1.13%
30-Day SEC Unsubsidized Yield 1.13%

Past Performance is not indicative of future results. Duration is a measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. Duration is expressed as a number of years. Rising interest rates mean falling bond prices, while declining interest rates mean rising bond prices. 30–Day SEC Yield (Standardized Yield) is an annualized yield that is calculated by dividing the investment income earned by the Fund less expenses over the most recent 30-day period by the current maximum offering price. The Subsidized Yield reflects fee waivers and/or expense reimbursements recorded by the Fund during the period. Without waivers and/or reimbursements, yields would be reduced. The Unsubsidized Yield does not adjust for any fee waivers and/ or expense reimbursements in effect. If the Fund does not incur any fee waivers and/or expense reimbursements during the period, the 30-Day Subsidized Yield and 30-Day Unsubsidized Yield will be identical.