(HOLD) SAGE CORE RESERVES ETF

HOLD

Overview

The AdvisorShares Sage Core Reserves ETF (NYSE Arca: HOLD) seeks to preserve capital while maximizing income. HOLD seeks to achieve its investment objective by investing in a broad range of fixed-income securities, U.S. dollar- denominated investment grade debt securities, including mortgage- or asset-backed securities rated Baa- or higher. The average duration of the Fund will vary on the forecast for interest rates and will normally not exceed one year. HOLD is managed by Sage Advisory Services (“Portfolio Manager”). The Sage fixed-income investment process is based upon implementing a top-down approach focused on actively managing portfolio duration risk, yield curve positioning, market segment allocation, and security selection.

Symbol Exchange Inception Date CUSIP Indicative Value
HOLD NYSE Arca 1/14/2014 00768Y651 HOLD.IV
<strong>Why Invest in HOLD?</strong>
  • For a Potentially Higher Yield and Total Return – HOLD has the potential to deliver competitive returns compared to other liquid options while offering diversification and a risk profile consistent with short-term fixed income. HOLD will not seek to maintain stable values and offers no guarantees.
  • For Efficient & Scalable Cash Management Access – HOLD gives all investors access to the same quality of money management service that Sage has provided to their institutional and private clients for over 15 years, without needing to meet their minimum investment, along with the potential added benefits of the ETF structure, which include intraday trading and transparency.
  • For Diversification and Risk Management – HOLD may offer added diversification with a risk management process focused on minimizing volatility and maintaining liquidity in all environments.
<strong>Key Attributes</strong>
  1. Top-Down Approach – The portfolio manager’s fixed-income investment process is based upon implementing a top-down approach focused on actively managing portfolio duration risk, yield curve positioning, market segment allocation, and security selection.
  2. Low Duration – HOLD’s low average duration, targeted to be less than 1 year, may potentially make it less sensitive to interest rate changes than other bond ETFs with higher average durations.
  3. Flexible Mandate – The portfolio manager maintains the ability to add diversification, through flexible credit quality and expanded security categories, to manage risk and return.
  4. Active Risk Management – HOLD seeks to deliver efficient cash flows, with an emphasis on minimizing volatility and mitigation of risk in all market environments while seeking to maintain a high level of liquidity.
  5. Fixed Income Experience – The portfolio manager is an experienced fixed income manager with a long history of delivering solutions to the institutional marketplace. HOLD’s investment committee offers more than 150 years of combined investment experience.
<strong>About the Portfolio Managers</strong>

Mark C. MacQueen, Co-Founder, Executive Vice President Portfolio Management
Mr. MacQueen has more than 30 years of domestic and international portfolio management and institutional securities trading experience. He began his career as a member of the Institutional Government Securities Trading desk at Merrill Lynch Government Securities in New York. He was later assigned to the Institutional Fixed Income Trading desk in London as Vice President and Senior Trader responsible for managing the firm’s European-based risk capital position. Following his Merrill Lynch tenure, Mr. MacQueen joined APS Financial Corp. in Austin, Texas as Director of Fixed Income Portfolio Research. He went on to become a principal of the Tejas Securities Group as Director of Fixed Income Trading and Research. In 1996, Mr. MacQueen and Robert G. Smith, III, founded Sage Advisory Services, Ltd. Co. in Austin, Texas. Mr. MacQueen received a B.S. in Finance from the University of Delaware.

Thomas H. Urano, CFA, Principal and Managing Director
Mr. Urano is a member of the investment committee and brings over 15 years of experience and client account management and fixed income trading to the firm. He serves as a portfolio manager and senior trader for the taxable fixed income and equity strategies. Before joining Sage, Mr. Urano served as a Vice President on the institutional trading desk at Credit Suisse Asset Management in New York. In addition, he was a member of the fixed income portfolio analytics and accounting group for Morgan Keegan. He is also a Chartered Financial Analyst Charterholder and member of the CFA Institute. Mr. Urano received a B.A. in Economics from The University of Texas.

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Fund

Price History

As of 7/10/2020

NAV $98.59 Closing Price $98.62
Change $0.00 Close Change $0.70
Shares Outstanding 1,025,000 Volume 100,000
4PM Bid/Offer Midpoint $98.62 Premium Discount $0.03
Assets Under Management $101,053,942.60

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 6/30/2020

  NAV Market Price Return Barclays US Treasury Bill 1-3 Month Index
1 Month 0.42 0.43 0.01
3 Months 2.76 2.53 0.02
YTD -0.49 -0.58 0.49
1 Year 0.83 0.75 1.47
3 Years 1.65 1.61 1.68
5 Years 1.37 1.35 1.12
Since Inception (1/14/2014, Annualized) 1.08 1.06 6.18

As of 6/30/2020

  NAV Market Price Return Barclays US Treasury Bill 1-3 Month Index
1 Month 0.42 0.43 0.01
3 Months 2.76 2.53 0.02
YTD -0.49 -0.58 0.49
1 Year 0.83 0.75 1.47
3 Years 1.65 1.61 1.68
5 Years 1.37 1.35 1.12
Since Inception (1/14/2014, Annualized) 1.08 1.06 6.18

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 7/13/2020

Date Account Symbol Stock Ticker Security Number Security Description Shares/Par (Full) Price (Base) Traded Market Value (Base) Portfolio Weight % Asset Group
07/10/2020 HOLD 912828P87 US TREASURY N/B 1.125 2/28/2021 5,628,000.00 100.62 5,663,065.09 5.60% TN
912828Q37 US TREASURY N/B 1.25 3/31/2021 5,618,000.00 100.8 5,662,768.44 5.60% TN
912828Q78 US TREASURY N/B 1.375 4/30/2021 3,738,000.00 100.98 3,774,795.94 3.74% TN
912828ZK9 US TREASURY FRN FRN 4/30/2022 2,950,000.00 100.08 2,952,356.96 2.92% TN
06051GHH5 BANK OF AMERICA CORP 3.499 5/17/2022 2,813,000.00 102.37 2,879,627.34 2.85% B
281020AL1 EDISON INTERNATIONAL 2.4 9/15/2022 2,415,000.00 101.48 2,450,689.84 2.42% B
674599CU7 OCCIDENTAL PETROLEUM COR 2.6 8/13/2021 2,265,000.00 97.83 2,215,815.55 2.19% B
02582JHJ2 AMXCA 2017-6 A 2.04 5/15/2023 2,150,000.00 100.46 2,159,920.53 2.14% MR
28414HAF0 ELANCO ANIMAL HEALTH INC 4.662 8/27/2021 1,890,000.00 103.32 1,952,738.55 1.93% B
225433AK7 CRED SUIS GP FUN LTD 3.125 12/10/2020 1,920,000.00 101.04 1,940,028.90 1.92% FB
42824CAG4 HP ENTERPRISE CO 3.6 10/15/2020 1,914,000.00 100.56 1,924,636.17 1.90% B
247361ZL5 DELTA AIR LINES INC 2.6 12/4/2020 1,930,000.00 99.25 1,915,524.56 1.90% B
37045VAM2 GENERAL MOTORS CO FRN 8/7/2020 1,907,000.00 99.99 1,906,765.02 1.89% B
118230AJ0 BUCKEYE PARTNERS LP 4.875 2/1/2021 1,910,000.00 99.81 1,906,418.75 1.89% B
747262AK9 QVC INC 4.375 3/15/2023 1,870,000.00 100.75 1,884,025.00 1.86% B
494550BT2 KINDER MORGAN ENER PART 3.5 3/1/2021 1,670,000.00 101.26 1,691,083.85 1.67% B
14041NFN6 COMET 2017-A4 A4 1.99 7/17/2023 1,660,000.00 100.29 1,664,894.34 1.65% MR
38141GWG5 GOLDMAN SACHS GROUP INC 2.6 12/27/2020 1,632,000.00 100.97 1,647,834.66 1.63% B
036752AE3 ANTHEM INC 2.5 11/21/2020 1,555,000.00 100.73 1,566,370.02 1.55% B
459745GF6 INTL LEASE FINANCE CORP 8.25 12/15/2020 1,437,000.00 102.6 1,474,310.93 1.46% B
294429AM7 EQUIFAX INC 3.6 8/15/2021 1,420,000.00 103.36 1,467,769.01 1.45% B
172967LB5 CITIGROUP INC FRN 12/8/2021 1,433,000.00 100.89 1,445,696.11 1.43% B
24702RAQ4 DELL INC 4.625 4/1/2021 1,415,000.00 101.74 1,439,585.63 1.42% B
00206RDV1 AT&T INC FRN 7/15/2021 1,425,000.00 100.81 1,436,492.30 1.42% B
00912XBE3 AIR LEASE CORP 3.5 1/15/2022 1,420,000.00 101.07 1,435,240.15 1.42% B
279158AC3 ECOPETROL SA 5.875 9/18/2023 1,320,000.00 108.14 1,427,507.40 1.41% FB
20030NBD2 COMCAST CORP 3.125 7/15/2022 1,350,000.00 105.56 1,425,122.80 1.41% B
72650RAZ5 PLAINS ALL AMER PIPELINE 3.65 6/1/2022 1,182,000.00 102.43 1,210,711.09 1.20% B
85207UAE5 SPRINT CORP 7.25 9/15/2021 1,140,000.00 105.1 1,198,185.60 1.19% B
25272KAD5 DELL INT LLC / EMC CORP 4.42 6/15/2021 1,035,000.00 102.82 1,064,167.62 1.05% B
98162HAB6 WOLS 2020-A A2 1.71 11/15/2022 1,030,000.00 100.91 1,039,395.45 1.03% MR
14316LAB9 CARMX 2019-2 A2A 2.69 7/15/2022 1,016,489.78 100.84 1,025,030.63 1.01% MR
981464EY2 WFNMT 2015-B A 2.55 6/17/2024 997,000.00 100.18 998,775.06 0.99% MR
02005AGU6 AMOT 2018-2 A 3.29 5/15/2023 975,000.00 102.2 996,424.36 0.99% MR
29364GAH6 ENTERGY CORP 4 7/15/2022 930,000.00 106.32 988,746.76 0.98% B
88167AAC5 TEVA PHARMACEUTICALS NE 2.2 7/21/2021 1,000,000.00 98.6 986,025.00 0.98% FB
912828WC0 US TREASURY N/B 1.75 10/31/2020 969,000.00 100.47 973,572.36 0.96% TN
718546AS3 PHILLIPS 66 FRN 2/26/2021 970,000.00 99.98 969,789.06 0.96% B
04010LAR4 ARES CAPITAL CORP 3.625 1/19/2022 946,000.00 101.99 964,819.90 0.95% B
404280AN9 HSBC HOLDINGS PLC 4 3/30/2022 910,000.00 105.7 961,910.59 0.95% FB
29379VAP8 ENTERPRISE PRODUCTS OPER 5.2 9/1/2020 955,000.00 100.62 960,946.69 0.95% B
05946NAJ4 BANCO BRADESCO (CAYMAN) 5.9 1/16/2021 940,000.00 101.78 956,694.40 0.95% FB
172967KB6 CITIGROUP INC 2.65 10/26/2020 940,000.00 100.63 945,948.40 0.94% B
17305EGK5 CCCIT 2018-A1 A1 2.49 1/20/2023 935,000.00 101.13 945,580.09 0.94% MR
254683BU8 DCENT 2016-A3 A3 1.85 10/16/2023 840,000.00 101.14 849,597.00 0.84% MR
14314AAC3 CARMX 2018-1 A3 2.48 11/15/2022 827,627.43 101.06 836,380.75 0.83% MR
22003BAJ5 CORPORATE OFFICE PROP LP 3.7 6/15/2021 783,000.00 101.62 795,716.49 0.79% B
233851DC5 DAIMLER FINANCE NA LLC FRN 2/22/2021 780,000.00 99.74 777,977.83 0.77% FB
71654QAX0 PETROLEOS MEXICANOS 5.5 1/21/2021 775,000.00 100.27 777,115.75 0.77% FB
713448DC9 PEPSICO INC 2.15 10/14/2020 750,000.00 100.32 752,390.57 0.74% B
36254MAF5 GMCAR 2017-3A B 2.33 3/16/2023 735,000.00 101.09 743,000.33 0.74% MR
44614DAD9 HUNT 2016-1 A4 1.93 4/15/2022 730,995.94 100.01 731,060.56 0.72% MR
444859BH4 HUMANA INC 2.5 12/15/2020 705,000.00 100.8 710,640.32 0.70% B
25470XAE5 DISH DBS CORP 6.75 6/1/2021 654,000.00 102.19 668,348.76 0.66% B
30212PAH8 EXPEDIA GROUP INC 5.95 8/15/2020 660,000.00 100.24 661,605.98 0.65% B
86562MAD2 SUMITOMO MITSUI FINL GRP FRN 3/9/2021 615,000.00 100.97 620,967.97 0.61% FB
0258M0DY2 AMERICAN EXPRESS CREDIT FRN 9/14/2020 611,000.00 100.09 611,519.70 0.61% B
59261AA98 MET TRANSPRTN AUTH-E 4 9/1/2020 585,000.00 100.16 585,912.60 0.58% M
294429AP0 EQUIFAX INC FRN 8/15/2021 570,000.00 99.96 569,748.70 0.56% B
62854AAM6 MYLAN NV 3.15 6/15/2021 550,000.00 102.02 561,131.27 0.56% B
44891EAE9 HART 2016-B B 1.82 11/15/2022 520,000.00 100.53 522,755.01 0.52% MR
55279HAS9 MANUF & TRADERS TRUST CO FRN 1/25/2021 520,000.00 100.12 520,611.34 0.52% B
646136XT3 NJ ST TRANSN-BAB-C 6.104 12/15/2028 500,000.00 102.17 510,835.00 0.51% M
29273RAN9 ENERGY TRANSFER OPERATNG 4.65 6/1/2021 500,000.00 102.03 510,129.84 0.50% B
983919AH4 XILINX INC 3 3/15/2021 500,000.00 101.57 507,863.16 0.50% B
94974BGR5 WELLS FARGO & COMPANY 2.55 12/7/2020 500,000.00 100.89 504,440.55 0.50% B
98956PAP7 ZIMMER BIOMET HOLDINGS FRN 3/19/2021 485,000.00 100 485,020.43 0.48% B
62912XAE4 NGPL PIPECO LLC 4.375 8/15/2022 465,000.00 103.3 480,347.07 0.48% B
026874CX3 AMERICAN INTL GROUP 3.375 8/15/2020 473,000.00 100.25 474,162.53 0.47% B
80284YAF1 SDART 2017-3 C 2.76 12/15/2022 469,826.99 100.38 471,633.47 0.47% MR
46623EKG3 JPMORGAN CHASE & CO 2.295 8/15/2021 470,000.00 100.17 470,779.59 0.47% B
36255KAG6 GMALT 2018-2 C 3.5 4/20/2022 437,000.00 100.89 440,889.96 0.44% MR
037833DJ6 APPLE INC 2 11/13/2020 410,000.00 100.56 412,299.33 0.41% B
05522RCZ9 BACCT 2018-A2 A2 3 9/15/2023 375,000.00 102.01 382,546.58 0.38% MR
83407AAA0 SCLP 2020-1 A 2.02 1/25/2029 356,247.76 101.09 360,142.83 0.36% MR
07330NAJ4 TRUIST BANK 2.85 4/1/2021 311,000.00 101.53 315,743.97 0.31% B
07274NAC7 BAYER US FINANCE II LLC FRN 6/25/2021 260,000.00 100.06 260,158.62 0.26% FB
375558BB8 GILEAD SCIENCES INC 2.55 9/1/2020 255,000.00 100.3 255,755.90 0.25% B
05369AAE1 AVIATION CAPITAL GROUP FRN 7/30/2021 270,000.00 94.47 255,059.06 0.25% B
6174467P8 MORGAN STANLEY 5.5 7/24/2020 250,000.00 100.14 250,344.26 0.25% B
294429AK1 EQUIFAX INC 2.3 6/1/2021 200,000.00 101.43 202,867.99 0.20% B
370334CD4 GENERAL MILLS INC 3.2 4/16/2021 160,000.00 102.11 163,376.15 0.16% B
92348PAA0 VZOT 2017-2A A 1.92 12/20/2021 139,975.07 100.05 140,042.70 0.14% MR
46625HNX4 JPMORGAN CHASE & CO 2.55 10/29/2020 120,000.00 100.47 120,567.51 0.12% B
3136AQV72 FNA 2016-M1 A1 2.428 1/25/2026 116,314.47 101.97 118,607.05 0.12% FM
98163EAB2 WOART 2018-C A2 2.8 1/18/2022 110,280.43 100.03 110,317.08 0.11% MR
43814TAC6 HAROT 2017-1 A3 1.72 7/21/2021 55,175.71 100.12 55,239.93 0.05% MR
06406FAB9 BANK OF NY MELLON CORP 2.05 5/3/2021 10,000.00 101.19 10,119.24 0.01% B
31398VEH5 FHR 3645 ED 2.5 12/15/2020 445.7 100.04 445.88 0.00% FH
X9USDJPMR JP MORGAN USD GOVT MONEY MARKET INSTL 3,358,792.20 1 3,358,792.20 3.32% MM
CASH 637,388.62 100 637,388.62 0.63% CA

FUND

Characteristics

As of 5/31/2020

Composite Quality Ratings provided by Sage Advisory Ltd Co., for the HOLD ETF reflect the underlying holdings of the ETF. Moody’s ratings of the underlying securities are used to calculate the Composite Quality. When Moody’s ratings are unavailable the S&P ratings of the underline securities are used. When neither Moody’s or S&P ratings are available the security is placed into a not rated category.

The credit ratings are published rankings based on detailed financial analyses by a credit bureau specifically as it relates the bond issue’s ability to meet debt obligations. The highest rating is AAA, and the lowest is D. Securities with credit ratings of BBB and above are considered investment grade.

FUND

Fixed Income Attributes

As of 5/31/2020

_ _ 5/31/2020
Duration 0.78
30-Day SEC Subsidized Yield 1.96%
30-Day SEC Unsubsidized Yield 2.16%

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 0.30%
Other Expenses 0.35%
Gross Expense Ratio 0.65%
Fee Waiver and/or Expense Reimbursement -0.30%
Net Expense Ratio 0.35%

*The Advisor has contractually agreed to keep net expenses from exceeding 0.35% 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

  • 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. Diversification and sector asset allocation do not guarantee a profit, nor do they eliminate the risk of loss of principal. An investment in the Fund is subject to risk, including the possible loss of principal amount invested. The Fund’s investment in fixed income securities will change in value in response to interest rate changes and other factors, such as the perception of the issuer’s creditworthiness. Fixed income securities with longer maturities are subject to greater price shifts as a result of interest rate changes than fixed income securities with shorter maturities. The Fund’s investments in high-yield securities or “junk bonds” are subject to a greater risk of loss of income and principal than higher grade debt securities. In addition the Fund is subject to leveraging risk which tends to exaggerate the effect of any increase or decrease in the value of the portfolio securities. The Fund is also subject to liquidity risk, issuer risk, foreign currency and investment risk, prepayment risk and trading risk. See prospectus for details regarding specific risks.