QPX: 3rd Quarter 2024 Portfolio Review
Portfolio Strategy
Portfolio Review
For the third quarter of 2024, QPX finished behind of its benchmark, the S&P 500 Index.
QPX was mainly invested in the technology, healthcare, and consumer discretionary, as this exposure has a much higher risk/reward characteristics than other segments of the market per the portfolio manager’s models.
One of the explanatory variables was the choice of investment vehicle to get exposure to the technology sector. Indeed, there is currently a large difference in performance amongst different technology ETFs, explained by their concentration limits on single-stock, such as Nividia (NVDA). We believe that the underperforming result year to date do not invalidate the allocation model, and highlights the risks lying in the execution of the strategy. Lesson learned.
During the third quarter, the QIX stayed below the Risk Level 2 volatility trigger. Therefore, there were no risk-off rebalancing allocation changes made in QPX during the period.
Top Holdings
| Ticker | Security Description | Portfolio Weight % |
| XLK | TECHNOLOGY SELECT SECT SPDR | 21.53% |
| XLP | CONSUMER STAPLES SPDR | 20.77% |
| XLY | CONSUMER DISCRETIONARY SELT | 20.54% |
| IYW | iShares USTechnology ETF | 20.06% |
| XLC | COMM SERV SELECT SECTOR SPDR | 9.11% |
| XLV | HEALTH CARE SELECT SECTOR | 6.11% |
As of 9.30.2024. Cash not included. Subject to change.
Respectfully,
Ron Piccinini
ThinkBetter, LLC
AdvisorShares Q Dynamic Growth ETF (QPX) Portfolio Strategist
Management Fee
The portfolio strategist of QPX has “skin in the game.” The strategist’s compensation is directly tied to the portfolio’s performance. Using the trailing 12-month returns of QPX vs. its S&P 500 Index benchmark, stronger outperformance is rewarded with a larger management fee while weaker underperformance is penalized with a smaller management fee. The QPX fulcrum fee was 0.90% during July, August, and September 2024. After the Fund’s September performance, the QPX fulcrum fee will be 0.90% for October 2024.
Past Commentary
Definitions:
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 or summary 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.
Investing involves risk Including possible loss of principal.
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.