(FWDB) FolioBeyond Smart Core Bond ETF

FWDB

Overview

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.

Robert M. Parker, CFA – Portfolio Manager
Rob Parker is the director of capital markets for AdvisorShares, where he oversees trading, portfolio management and fund operations activity for the firm. In managing FWDB, he leverages the research of Yung Lim and the FolioBeyond investment management team. Rob’s professional career has spanned over a decade and a half within the financial services industry, where he has worked across compliance, due diligence, and investment analysis as well as positions of senior portfolio manager and firm principal. Rob managed assets for a proprietary investment practice that he created after serving as senior portfolio manager at ProShares Advisors, where he managed leveraged, inverse, and long-short ETFs. Rob previously held positions held at Capital Financial Group, Wachovia Securities, The Advisors Group, and FOLIOfn, serving in a variety of analyst roles. He is a graduate of National University, earning a Bachelor of Science. He holds the Chartered Financial Analyst (CFA) designation and is a member of the CFA Society of Washington, DC.

Fund

Price History

As of 9/20/2019

NAV $26.01 Closing Price $25.96
Change $0.09 Close Change $0.01
Shares Outstanding 225,000.00 Volume 0
4PM Bid/Offer Midpoint $25.95 Premium Discount $-0.06
Assets Under Management $5,853,274.21

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 Barclays Capital Aggregate Bond Index
1 Month -0.38 -0.31 2.59
3 Months 2.07 1.95 4.11
YTD 8.80 8.79 9.10
1 Year 5.13 5.10 10.17
3 Years 3.27 3.26 3.09
5 Years 2.87 2.87 3.35
Since Inception (6/20/2011, Annualized) 3.62 3.61 3.42

As of 6/30/2019

  NAV Market Price Return Barclays Capital Aggregate Bond Index
1 Month 1.60 1.46 1.26
3 Months 2.66 2.81 3.08
YTD 8.30 8.28 6.11
1 Year 5.82 5.80 7.87
3 Years 3.85 3.82 2.31
5 Years 2.95 2.89 2.95
Since Inception (6/20/2011, Annualized) 3.64 3.63 3.14

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 FWDB REM 46435G342 ISHARES MORTGAGE REAL ESTATE 37,873.00 42.84 1,622,479.32 27.72% MF 1
FWDB SJNK 78468R408 SPDR BBG BARC ST HIGH YIELD 45,262.00 27.08 1,225,694.96 20.94% MF 1
FWDB HYD 92189H409 VANECK VECTORS HIGH-YIELD MU 18,680.00 64.38 1,202,618.40 20.55% MF 1
FWDB TLT 464287432 ISHARES 20+ YEAR TREASURY BOND ETF 3,907.00 141.89 554,364.23 9.47% MF 1
FWDB HYMB 78464A284 SPDR NUVEEN S&P HIGH YIELD M 8,927.00 59.22 528,656.94 9.03% MF 1
FWDB SHYG 46434V407 ISHARES 0-5 YR HY CORP BOND 10,986.00 46.56 511,508.16 8.74% MF 1
FWDB BKLN 46138G508 INVESCO SENIOR LOAN ETF 8,900.00 22.73 202,297.00 3.46% MF 1
FWDB X9USDBLFD BLACKROCK FEDERAL FD 30 INSTL 28,830.89 1.00 28,830.89 0.49% MM 0
FWDB CASH -23,326.12 100 -23,326.12 -0.40% CA

FUND

Characteristics

As of 07/31/2019

FWDB Sector Allocation

FUND

Fixed Income Attributes

As of 07/31/2019

Description Amount
30-Day SEC Subsidized Yield 4.98%
30-Day SEC Unsubsidized Yield 3.95%

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.

FUND

Fees & Expenses

Management Fee 0.50%
Other Expenses 0.72%
Acquired Fund Fees 0.46%
Gross Expenses Ratio 1.68%
Fee Waiver and/or Expense Reimbursement -0.27%
Net Expense Ratio 1.41%

*The Advisor has contractually agreed to keep net expenses from exceeding 0.95% of the Fund’s average daily net assets for at least one year from the date of the prospectus and for successive one-year periods thereafter unless the agreement is terminated. This agreement is limited to the Fund’s direct operating expenses and, therefore, does not apply to “Acquired Fund Fees and Expenses.”

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) FWDB
12/27/2019 12/30/2019 - - - - -
11/26/2019 11/27/2019 - - - - -
10/28/2019 10/29/2019 - - - - -
09/25/2019 09/26/2019 - - - - -
08/27/2019 08/28/2019 08/29/2019 $0.06027 $0.00 $0.00 $0.00 $0.06027
07/26/2019 07/29/2019 07/30/2019 $0.05267 $0.00 $0.00 $0.00 $0.05267
06/25/2019 06/26/2019 06/28/2019 $0.07135 $0.00 $0.00 $0.00 $0.07135
05/28/2019 05/29/2019 05/31/2019 $0.06979 $0.00 $0.00 $0.00 $0.06979
04/25/2019 04/26/2019 04/30/2019 $0.13524 $0.00 $0.00 $0.00 $0.13524
03/26/2019 03/27/2019 03/29/2019 $0.05490 $0.00 $0.00 $0.00 $0.05490
02/27/2019 02/26/2019 02/28/2019 $0.09991 $0.00 $0.00 $0.00 $0.09991
01/28/2019 01/29/2019 01/31/2019 $0.05980 $0.00 $0.00 $0.00 $0.05980
12/27/2018 12/28/2018 12/31/2018 $0.21309 $0.00 $0.00 $0.00 $0.21309
11/27/2018 11/28/2018 11/30/2018 $0.08102 $0.00 $0.00 $0.00 $0.08102
10/26/2018 10/29/2018 10/31/2018 $0.08280 $0.00 $0.00 $0.00 $0.08280
09/26/2018 09/27/2018 09/28/2018 $0.07112 $0.00 $0.00 $0.00 $0.07112
08/27/2018 08/28/2018 08/31/2018 $0.07137 $0.00 $0.00 $0.00 $0.07137
07/26/2018 07/27/2018 07/31/2018 $0.08970 $0.00 $0.00 $0.00 $0.08970
06/25/2018 06/26/2018 06/29/2018 $0.05981 $0.00 $0.00 $0.00 $0.05981
05/25/2018 05/29/2018 05/31/2018 $0.05280 $0.00 $0.00 $0.00 $0.05280
04/25/2018 04/26/2018 04/30/2018 $0.07451 $0.00 $0.00 $0.00 $0.07451
03/26/2018 03/27/2018 03/29/2018 $0.07236 $0.00 $0.00 $0.00 $0.07236
02/26/2018 02/27/2018 02/28/2018 $0.06982 $0.00 $0.00 $0.00 $0.06982
01/26/2018 01/29/2018 01/31/2018 $0.04004 $0.00 $0.00 $0.00 $0.04004
12/27/2017 12/28/2017 12/29/2017 $0.15045 $0.00 $0.00 $0.00 $0.15045
11/28/2017 11/29/2017 11/30/2017 $0.06965 $0.00 $0.00 $0.00 $0.06965
10/27/2017 10/30/2017 10/31/2017 $0.07670 $0.00 $0.00 $0.00 $0.07670
09/26/2017 09/27/2017 09/29/2017 $0.07043 $0.00 $0.00 $0.00 $0.07043
08/25/2017 08/29/2017 08/31/2017 $0.07108 $0.00 $0.00 $0.00 $0.07108
07/26/2017 07/28/2017 07/31/2017 $0.08397 $0.00 $0.00 $0.00 $0.08397
06/23/2017 06/28/2017 06/30/2017 $0.06664 $0.00 $0.00 $0.00 $0.06664
05/23/2017 05/26/2017 05/31/2017 $0.07443 $0.00 $0.00 $0.00 $0.07443
04/21/2017 04/26/2017 04/28/2017 $0.05085 $0.00 $0.00 $0.00 $0.05085
03/24/2017 03/28/2017 03/31/2017 $0.06088 $0.00 $0.00 $0.00 $0.06088
02/23/2017 02/27/2017 02/28/2017 $0.04998 $0.00 $0.00 $0.00 $0.04998
01/25/2017 01/27/2017 01/31/2017 $0.00460 $0.00 $0.00 $0.00 $0.00460
12/23/2016 12/28/2016 12/30/2016 $0.16240 $0.00 $0.00 $0.00 $0.16240
11/23/2016 11/28/2016 11/30/2016 $0.06530 $0.00 $0.00 $0.00 $0.06530
10/25/2016 10/27/2016 10/31/2016 $0.07240 $0.00 $0.00 $0.00 $0.07240
09/26/2016 09/28/2016 09/30/2016 $0.06550 $0.00 $0.00 $0.00 $0.06550
08/25/2016 08/29/2016 08/31/2016 $0.06990 $0.00 $0.00 $0.00 $0.06990
07/25/2016 07/27/2016 07/29/2016 $0.05290 $0.00 $0.00 $0.00 $0.05290
06/24/2016 06/28/2016 06/30/2016 $0.06180 $0.00 $0.00 $0.00 $0.06180
05/24/2016 05/26/2016 05/31/2016 $0.06710 $0.00 $0.00 $0.00 $0.06710
04/25/2016 04/27/2016 04/29/2016 $0.06370 $0.00 $0.00 $0.00 $0.06370
03/24/2016 03/29/2016 03/31/2016 $0.06820 $0.00 $0.00 $0.00 $0.06820
02/23/2016 02/25/2016 02/29/2016 $0.05050 $0.00 $0.00 $0.00 $0.05050
01/25/2016 01/27/2016 01/29/2016 $0.01110 $0.00 $0.00 $0.00 $0.01110
12/24/2015 12/29/2015 12/31/2015 $0.14920 $0.00 $0.00 $0.00 $0.14900
11/23/2015 11/25/2015 11/30/2015 $0.05500 $0.00 $0.00 $0.00 $0.05500
10/26/2015 10/28/2015 10/30/2015 $0.05670 $0.00 $0.00 $0.00 $0.05700
09/24/2015 09/28/2015 09/30/2015 $0.06380 $0.00 $0.00 $0.00 $0.06400
08/25/2015 08/27/2015 08/31/2015 $0.05420 $0.00 $0.00 $0.00 $0.05400
07/24/2015 07/28/2015 06/30/2015 $0.05920 $0.00 $0.00 $0.00 $0.05900
06/24/2015 06/26/2015 06/30/2015 $0.05920 $0.00 $0.00 $0.00 $0.05900
05/22/2015 05/27/2015 05/29/2015 $0.05520 $0.00 $0.00 $0.00 $0.05500
04/24/2015 04/28/2015 04/30/2015 $0.05270 $0.00 $0.00 $0.00 $0.05300
03/25/2015 03/27/2015 03/31/2015 $0.05750 $0.00 $0.00 $0.00 $0.05800
02/23/2015 02/25/2015 02/27/2015 $0.05510 $0.00 $0.00 $0.00 $0.05500
01/26/2015 01/28/2015 01/30/2015 $0.04480 $0.00 $0.00 $0.00 $0.04500
12/24/2014 12/29/2014 12/31/2014 $0.13100 $0.00 $0.00 $0.00 $0.13100
11/21/2014 11/25/2014 11/28/2014 $0.06100 $0.00 $0.00 $0.00 $0.06100
10/27/2014 10/29/2014 10/31/2014 $0.05400 $0.00 $0.00 $0.00 $0.05000
09/24/2014 09/26/2014 09/30/2014 $0.07400 $0.00 $0.00 $0.00 $0.07400
08/25/2014 08/27/2014 08/29/2014 $0.06500 $0.00 $0.00 $0.00 $0.06500
07/25/2014 07/29/2014 07/31/2014 $0.06900 $0.00 $0.00 $0.00 $0.06900
06/24/2014 06/26/2014 06/30/2014 $0.07800 $0.00 $0.00 $0.00 $0.07800
05/23/2014 05/28/2014 05/30/2014 $0.06600 $0.00 $0.00 $0.00 $0.06600
04/24/2014 04/28/2014 04/30/2014 $0.07400 $0.00 $0.00 $0.00 $0.07400
03/25/2014 03/27/2014 03/31/2014 $0.07500 $0.00 $0.00 $0.00 $0.07500
02/24/2014 02/26/2014 02/28/2014 $0.06400 $0.00 $0.00 $0.00 $0.06400
01/27/2014 01/29/2014 01/31/2014 $0.01500 $0.00 $0.00 $0.00 $0.01500
12/24/2013 12/27/2013 12/31/2013 $0.15900 $0.00 $0.00 $0.00 $0.15900
11/22/2013 11/26/2013 11/29/2013 $0.06700 $0.00 $0.00 $0.00 $0.06700
10/25/2013 10/29/2013 10/31/2013 $0.06700 $0.00 $0.00 $0.00 $0.06700
09/24/2013 09/26/2013 09/30/2013 $0.07300 $0.00 $0.00 $0.00 $0.07300
08/26/2013 08/28/2013 08/30/2013 $0.05800 $0.00 $0.00 $0.00 $0.05800
07/25/2013 07/29/2013 07/31/2013 $0.05800 $0.00 $0.00 $0.00 $0.05800
06/24/2013 06/26/2013 06/28/2013 $0.06300 $0.00 $0.00 $0.00 $0.06300
05/24/2013 05/29/2013 05/31/2013 $0.04800 $0.00 $0.00 $0.00 $0.04800
04/24/2013 04/26/2013 04/30/2013 $0.05800 $0.00 $0.00 $0.00 $0.05800
03/22/2013 03/26/2013 03/28/2013 $0.05500 $0.00 $0.00 $0.00 $0.05500
02/22/2013 02/26/2013 02/28/2013 $0.05600 $0.00 $0.00 $0.00 $0.05600
01/25/2013 01/29/2013 01/31/2013 $0.08600 $0.00 $0.00 $0.00 $0.08600
12/24/2012 12/27/2012 12/31/2012 $0.08000 $0.00 $0.00 $0.00 $0.08000
11/26/2012 11/28/2012 11/30/2012 $0.05100 $0.00 $0.00 $0.00 $0.05100
10/25/2012 10/29/2012 10/31/2012 $0.05600 $0.00 $0.00 $0.00 $0.05600
09/24/2012 09/26/2012 09/28/2012 $0.05400 $0.00 $0.00 $0.00 $0.05400
08/27/2012 08/29/2012 08/31/2012 $0.04900 $0.00 $0.00 $0.00 $0.04900
07/25/2012 07/27/2012 07/31/2012 $0.05100 $0.00 $0.00 $0.00 $0.05100
06/25/2012 06/27/2012 06/29/2012 $0.04800 $0.00 $0.00 $0.00 $0.04800
05/24/2012 05/29/2012 05/31/2012 $0.04900 $0.00 $0.00 $0.00 $0.04900
04/24/2012 04/26/2012 04/30/2012 $0.05300 $0.00 $0.00 $0.00 $0.05300
03/26/2012 03/28/2012 03/30/2012 $0.05400 $0.00 $0.00 $0.00 $0.05400
02/23/2012 02/27/2012 02/29/2012 $0.05200 $0.00 $0.00 $0.00 $0.05200
01/25/2012 01/27/2012 01/31/2012 $0.05900 $0.00 $0.00 $0.00 $0.05900
12/23/2011 12/28/2011 12/30/2011 $0.10300 $0.00 $0.00 $0.00 $0.10300
11/23/2011 11/28/2011 11/30/2011 $0.06000 $0.00 $0.00 $0.00 $0.06000
10/25/2011 10/27/2011 10/31/2011 $0.06000 $0.00 $0.00 $0.00 $0.06000
09/26/2011 09/28/2011 09/30/2011 $0.06000 $0.00 $0.00 $0.00 $0.06000
08/25/2011 08/29/2011 08/31/2011 $0.07000 $0.00 $0.00 $0.00 $0.07000
07/25/2011 07/27/2011 07/29/2011 $0.02000 $0.00 $0.00 $0.00 $0.02000
  • 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. ETNs have a maturity date and generally, are backed only by the creditworthiness of the issuer. The value of an ETN may be influenced by time to maturity, level of supply and demand for the ETN, volatility and lack of liquidity in the underlying market (e.g., the commodities market), changes in applicable interest rates, and changes in the issuer’s credit rating and economic, legal, political or geographic events that affect the market. Other Fund risks include market risk, equity risk, early closing risk, liquidity risk and trading risk. The Fund will be subject to the risks associated the Underlying ETFs’ or ETP’s investments such as commodity risk, concentration risk, credit risk, fixed income risk, high yield risk, income risk, interest rate risk, and investment risk.     
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  • Definitions   
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  • 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.     
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  • Average weighted coupon is generated by weighting the coupon of each bond by its relative size in the portfolio. Coupons are fixed percentages paid out on a fixed-income security on an annual basis.     
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  • Average yield to maturity represents the average YTM of the funds portfolio of bonds.   
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  • The Yield Curve is a graph that plots the yields of similar-quality bonds against their maturities, ranging from shortest to longest.   
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  • Yield to maturity (YTM) describes the rate of return an investor will receive if a long-term, interest-bearing security, such as a bond, is held to its maturity date.   
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