GK: 2nd Quarter 2023 Portfolio 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/gk.


The AdvisorShares Gerber Kawasaki ETF (ticker: GK) had a good second quarter which was mostly from gains achieved during the month of June. The first two months of the quarter were mostly churning through the gains we made in Q1.

In June, as rates declined and the AI mega theme took hold, we made, in our opinion, some great gains. The gains were led by positions in the semiconductor industry such as Nvidia and ON Semiconductor. Nvidia gained a tremendous amount of value based off the perception of rapid growth due to AI innovation. Nvidia has being a top holding in GK and has been a great benefit to our shareholders. ON Semiconductor which is more related to the electric vehicle (EV) industry also performed well. Other portfolio holdings also rallied in June based on the perception of a strong consumer buying and the un-likelihood of a recession in the second half of the year. Good results from MGM also helped in June as visitors return to Las Vegas and the travel leisure market continues to grow.

One area that did not perform as well in Q2 was our position in the solar power area. Solar has been a very difficult investment this year for the fund. Our focus on climate investing includes solar and our positions in Enphase and Solaredge declined dramatically. Additionally, we exited our position in Nextera Energy. Although we are very bullish on solar long term, many factors have affected its profitability on the short-term including higher interest rates which have slowed down solar additions. We believe our solar positions will recover value rapidly when rates normalize over the next year or so.

Interest rates continue to play a role in many of our positions including Lennar in the home building area and Tesla / Polestar in the EV area. Because these are interest rate sensitive businesses, they are affected more by Federal Reserve action than other companies. Rates have stayed relatively under control this year so in Q2 we did not see a negative impact from them on our investments. In Q3, while we anticipate potentially higher rates which could impact these positions, we view this as a short term move in long rates and that ultimately we believe lower rates will return over the next several years.

The fund was up over 5.3% (market) in Q2 and is up over 19% in the first half of the year. We are pleased with the results so far as we are outpacing the S&P 500 through the first half of 2023. We are working very hard to recover losses in the fund due to the poor timing of the start of the fund towards the top of the market in 2021. We feel confident as we enter the new bull cycle that our investors will be rewarded for focusing on our mega themes: technology and AI, climate change,  the consumer and beyond. We are looking forward to the rest of the year to achieving results for our shareholders.

Top Holdings

Ticker Security Description Portfolio Weight %

As of 06.30.2023. Cash is not included. Subject to change.  

Ross Gerber | Gerber Kawasaki | President and CEO
AdvisorShares Gerber Kawasaki ETF (GK) Portfolio Manager


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.

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. Investing in mid and small capitalization companies may be riskier and more volatile than large cap companies. Because it intends to invest in value stocks, the Fund could suffer losses or produce poor results relative to other funds, even in a rising market, if the Sub-Advisor’s assessment of a company’s value or prospects for exceeding earnings expectations or market conditions is incorrect. Other Fund risks include market risk, equity risk, large cap risk, liquidity risk and trading risk. Please see prospectus for details regarding risk. 

Investing involves risk including possible loss of principal. The Sub-Advisor’s judgment about the markets, the economy, or companies may not anticipate actual market movements, economic conditions or company performance, and these factors may affect the return on your investment. When models and data prove to be incorrect or incomplete, any decisions made in reliance thereon expose the Fund to potential risks. In addition, the use of predictive models has inherent risk. Because predictive models are usually constructed based on historical data supplied by third parties, the success of relying on such models may depend heavily on the accuracy and reliability of the supplied historical data. The prices of growth stocks are based largely on projections of the issuer’s future earnings and revenues. If a company’s earnings or revenues fall short of expectations, its stock price may fall dramatically.

Companies involved in the cannabis industry face competition, may have limited access to banks, limited resources due to litigation and are dependent on receiving necessary permits and authorizations to engage in medical cannabis research or to cultivate, possess or distribute cannabis. The possession and use of cannabis, even for medical purposes, is illegal under federal and certain states’ laws, which may negatively impact the value of the Fund’s investments.

The value of stocks of technology companies tend to be more volatile than the overall market and are vulnerable to rapid changes in technology, rapid product obsolescence, the loss of patent, copyright and trademark protections and government regulation and competition. The expansion of online gambling (both regulated and unregulated), including the award of additional licenses or expansion or relocation of existing gambling companies, and competition from other leisure and entertainment activities, could impact these companies’ finances. Companies within the biotech industry invest heavily in research and development, which may not lead to commercially successful products.

Diversification does not guarantee favorable returns. While the fund invests across multiple thematic trends it is considered a “non-diversified fund” under federal law, the Fund may invest a greater percentage of its assets in a particular issuer and hold a smaller number of portfolios securities.

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.

The views in this commentary are those of the portfolio manager and may not reflect his views on the date this material is distributed or anytime thereafter. These views are intended to assist shareholders in understanding their investments and do not constitute investment advice.