QPT - AdvisorShares Q Portfolio Blended Allocation ETF

Putting The Odds In Your Favor

Using heavy tail analysis to more precisely balance risk and reward.

Symbol Exchange Inception Date CUSIP Indicative Value
QPT NYSE Arca 12/28/2020 00768Y 446 QPT.IV
<strong>About The ETF</strong>
QPT is an actively managed asset allocation ETF seeking to outperform traditional balanced funds by investing in a variety of asset classes across market cap, duration, maturity, or credit quality. Using ETFs, QPT may invest in domestic, foreign, broad-market, and sector equities; government, municipal, and corporate fixed income; and gold, real-estate, or other commodities. Normally, QPT seeks to strike a balance between long term growth and market volatility by maximizing returns through ThinkBetter’s Q Methodology™, a proprietary risk management process. QPT’s portfolio asset allocation is calibrated to the expected drawdown of a typical balanced fund and is optimized on a regular basis. However, during periods of high market volatility, QPT can allocate to a more defensive portfolio and seek short-term fixed income returns. QPT’s market volatility indicator, the Q Implied Volatility Index™ (QIX), is reviewed daily which may result in mid-month allocation changes. Asset classes may be added or removed from QPT’s portfolio based on changing risk/reward characteristics.
<strong>About Q Methodology™</strong>
Q Methodology™ is a modern quantitative approach to assessing risk/reward and optimizing investment portfolios. The methodology is based on heavy-tail distribution mathematical analysis and focuses on estimating the downside of a portfolio (expected drawdown) under extreme but plausible stress (tail risk). Using high performance computing power, Q Methodology™ generates tens of thousands of portfolio simulations to identify the asset allocation offering the greatest return for a given level of risk. Simply put, we believe Q Methodology™ is “better math” for better investment management.
<strong>About the Q Implied Volatility Index™ (QIX)</strong>
QIX is a proprietary indicator designed to tactically and unemotionally identify market volatility and to help avoid drawdowns. When QIX indicates normal volatility, QPT has a balanced portfolio with equity and fixed income exposure; when QIX is high, QPT moves to a more defensive fixed income portfolio.
<strong>Why Invest in QPT?</strong>
  • Better Math: Better Management – Recognizing the flaws in Modern Portfolio Theory and other bell curve or Gaussian-based analysis, Q Methodology™ focuses on heavy-tail risk models in an effort to more accurately represent the frequency and impact of more severe losses in financial markets and to optimize risk accordingly.
  • Potential Risk Solution – Q Methodology™ uses modern financial theory and computing power to analyze tens of thousands of potential portfolio simulations and uncover which offers the highest expected return based on a pre-determined level of risk.
  • Flexible Unconstrained Portfolio – Utilizes a broad range of asset classes to optimally balance and avoid risk concentration in the portfolio.
  • Fulcrum Fee Structure – The portfolio manager’s compensation is directly tied to the portfolio’s performance. Stronger outperformance is rewarded with a larger management fee while weak or underperformance is penalized with a smaller management fee.
  • Tactical Defense Overlay – QPT seeks to participate in equity market upside while potentially limiting downside exposure caused by unusual market volatility. When QIX is high, QPT will move to a defensive fixed income allocation. Once QIX returns to normal levels, QPT will return to its balanced equity and fixed income-focused risk-optimized portfolio allocation.
<strong>Where Can QPT Fit in a Traditional Portfolio?</strong>
QPT can be used as a balanced core investment.
<strong>Key Attributes</strong>
  • Quantitative Management Process – QPT removes the emotion from the investment process by using a disciplined, repeatable quantitative process, Q Methodology™, to manage the portfolio.
  • Optimized Risk/Reward Portfolio – QPT targets historical expected drawdown periods of a typical balanced fund and optimizes its portfoli o using Q Methodology™ to identify the best risk/reward characteristics.
  • Operational & Tax Efficiency – QPT’s ETF structure allows for diverse asset class and security exposure in a single trade, as well as operational and tax efficiencies.
  • Defense Trigger – When triggered, QPT’s portfolio will tactically allocate to a more defensive portfolio and seek short-term fixed income returns until market volatility returns to normal.
<strong>About the Portfolio Manager</strong>

Ron Piccinini, Ph.D, Chief Investment Officer of ThinkBetter, LLC
Mr. Piccinini’s expertise is in quantitative analysis and business strategy. He wrote his dissertation on heavy-tailed distributions using neural networks in 2004. Mr. Piccinini developed and refined the Q Methodology™, a proprietary heavy tails risk analysis program used in the construction and ongoing management of QPT. He is also the author of the Q Implied Volatility Index ™ (QIX), which is used to measure market volatility and indicate trigger points for defensive portfolio positioning. He co-founded Prairie Smarts, LLC in 2012, a cloud-based risk analytics company that was eventually acquired in 2017 by Covisum. Mr. Piccinini earned a master’s degree from Strasbourg University and holds a Doctorate in Finance from the University of Nebraska-Lincoln. He has worked in various positions related to risk estimation and financial management systems since 2005, including at TD Ameritrade, First National Nebraska, Inc., and First National Bank of Omaha.

 

QPT Overview from Ron Piccinini

Get an introduction to the QPT ETF directly from the portfolio manager, Ron Piccinini.  

 

QPT Overview from Ron Piccinini

Get an introduction to the QPT ETF directly from the portfolio manager, Ron Piccinini.  

Fund

Price History

As of 10/14/2021

NAV $25.85 Closing Price $26.16
Change $0.23 Close Change $0.33
Shares Outstanding 140,000 Volume 0
4PM Bid/Offer Midpoint $26.16 Premium Discount $0.31
Assets Under Management $3,619,264.95 30-Day Median bid-ask Spread 0.2610479
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.

FUND

Characteristics

As of 9/30/2021

QPT Asset Allocation

FUND

Performance

As of 8/31/2021

NAV Market Price Return 60% S&P 500 Index/40% Bloomberg Barclays U.S. Aggregate Bond Index
1 Month 1.66 1.67 1.75
3 Months 8.94 9.01 5.4
YTD 7.15 7.18 12.23
Since Inception (12/28/2020, Annualized) 7.41 7.44 12.7

As of 6/30/2021

  NAV Market Price Return 60% S&P 500 Index/40% Bloomberg Barclays U.S. Aggregate Bond Index
1 Month 4.53 4.54 1.68
3 Months 8.37 8.37 5.84
YTD 2.82 2.79 8.28
Since Inception (12/28/2020, Annualized) 3.07 3.04 8.73

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.

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. The Bloomberg Barclays U.S. Agg Bond TR USD Index is an unmanaged index considered representative of the performance of the U.S. investment grade bond market. One cannot invest directly in an index.

Effective 8/4/2021, the funds strategy was changed to incorporate a defensive allocation trigger, measured by the QIX index. See prospectus for details.

 

Fund

Holdings

As of

Excel    CSV

Date Account Symbol Stock Ticker Security Number Security Description Shares/Par (Full) Price (Base) Traded Market Value (Base) Portfolio Weight % Asset Group
10/14/2021 QPT TLT 464287432 ISHARES 20+ YEAR TREASURY BO 9,305.00 145.88 1,357,413.40 37.07% MF
QQQ 46090E103 INVESCO QQQ TRUST SERIES 1 2,290.00 366.63 839,582.70 22.93% MF
XLK 81369Y803 TECHNOLOGY SELECT SECT SPDR 4,354.00 154.67 673,433.18 18.39% MF
PNQI 46137V530 INVESCO NASDAQ INTERNET ETF 1,543.00 246.95 381,043.85 10.41% MF
BLV 921937793 VANGUARD LONG-TERM BOND ETF 1,568.00 103.21 161,833.28 4.42% MF
VTI 922908769 VANGUARD TOTAL STOCK MKT ETF 664 229.37 152,301.68 4.16% MF
X9USDFIIN FIDELITY INSTL MMKT GOVT 57 101,971.69 1 101,971.69 2.79% MM
CASH -5,851.58 100 -5,851.58 -0.16% CA
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

Fees & Expenses

Management Fee 0.74%
Other Expenses 0.23%
Acquired Fund Fees 0.20%
Net Expense Ratio 1.17%

The management fee above reflects the base fee. Actual management fees may be higher or lower depending on the Fund’s performance compared to its performance benchmark and can range from 0.64% to 0.84%.

      • 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.
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      • Investing Involves Risk Including possible loss of principal.     
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      • There is no guarantee the Advisors investment strategy will be successful. 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’s particular allocations may have a significant effect on the Fund’s performance. Allocation risk is the risk that the selection of ETFs and the allocation of assets among such ETFs will cause the Fund to underperform other funds with a similar investment objective that do not allocate their assets in the same manner or the market as a whole. For a list of the asset class specific risks please see the prospectus.      
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  • Definitions   
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  • Tail risk is the possibility of an investment’s return moving significantly beyond expectations (i.e., more than three standard deviations from its mean). Expected drawdown is the maximum peak to trough capital loss over a full market cycle (as measured from January 2006 to March 2020).
  • Expected drawdown is the maximum peak to trough capital loss over a full market cycle (as measured from January 2006 to March 2020).