LETB: 1st 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/letb.
The AdvisorShares Let Bob AI Powered Momentum ETF (LETB) generated a 0.80% return compared to a 7.50% return for the broad market, as measured by the S&P 500 Index, during the fourth quarter.
Since its inception in early Feb. 2022, LETB generated a -7.16% return vs -6.45% for the S&P 500, -7.25% for the Russell 3000 Index, and -9.11% for the Russell 2000 Index.
During, Q1 2023, we remained 100% cash. The Federal Reserve continues to raise rates. The SVB & Signature Bank situation began to unwind in March as fears were reminiscent of the 2008 financial crisis.
The first quarter of 2023 was a wild and eventful time for the markets. Bank failures, inflation, Fed rate hikes & labor market cooldown. The year began with optimism in January then the banking crisis had investors on edge. There are 186 banks across the country that could fail if half of their depositors quickly withdraw their funds, a new study published on the Social Science Research Network found.
We purchased 0 stocks in Q1. We are currently 100% in cash at the end of the quarter.
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As of 03.31.2023. Subject to change.
As of 03.31.2023. Subject to change.
Most of the US large cap equity gains have been driven by just a handful of mega cap tech names. If we remove those mega cap stocks, the S&P 500 is only slightly up 1% for the past quarter. We are patiently waiting for the market to break out of this consolidation range. The key variable for investors to weigh will be the impact of the banking crisis on this quarter’s earnings.
Let Bob, LLC
AdvisorShares Let Bob AI Powered Momentum ETF (LETB) Portfolio Manager
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. The Advisor continuously evaluates the Fund’s holdings, purchases and sales with a goal of achieving its investment objective, which is not guaranteed, and judgments about the markets, the economy, or companies may not anticipate actual market movements, economic conditions, or company performance. Security prices of small and mid-cap companies may be more volatile than those of larger companies and therefore the Fund’s share price may be more volatile than those of funds that invest a larger percentage of their assets in securities issued by larger-cap companies.
Model and Data Risk: 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 Fund may experience relatively high portfolio turnover, which may result in increased transaction costs and performance that is lower than expected.
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.