(SCAP) CORNERSTONE SMALL CAP ETF

SCAP

Overview

The AdvisorShares Cornerstone Small Cap ETF (NYSE Arca: SCAP) seeks to provide total return through long-term capital appreciation and current income. SCAP is managed by Cornerstone Investment Partners, LLC (“Portfolio Manager”). The Portfolio Manager seeks to achieve SCAP’s investment objective by investing in a diversified group of U.S.-traded equity securities, including common and preferred stock, ADRs, and publicly-traded REITs. Under normal circumstances, SCAP invests at least 80% of its net assets (plus any borrowings for investment purposes) in small cap securities. The Portfolio Manager defines a small cap company as one having a market capitalization less than the market cap of the largest company in the Russell 2000 Index at the time of acquisition. The Portfolio Manager seeks to benefit from the volatility of small cap stocks by participating in upside volatility while reducing exposure to downside volatility.

Symbol Exchange Inception Date CUSIP Indicative Value Options
SCAP NYSE Arca 7/6/2016 00768Y586 SCAP.IV No
<strong>Why Invest in SCAP?</strong>
  • For Equity Diversification – Small cap exposure can help diversify an equity portfolio by providing access to companies that are growing at a faster rate than large cap companies. Small cap equities also have had the tendency to make major turns in their respective cycles at different times which can help reduce volatility. Additionally, small cap company businesses tend to be more domestic oriented which insulates them from changes in currency market trends.
  • For an Active Management Advantage – Not all 2000 companies in the popular Russell benchmark index are worthy of buying. An index includes stocks with favorable valuations, favorable earnings trends and favorable free cash flow, but also must include stocks with unfavorable attributes. The Portfolio Manager’s multi-factor approach helps identify attractive companies with improving fundamentals.
  • As a Complement to Index Based Exposure – SCAP differs from benchmark indexes in terms of sector weightings, market cap statistics, valuation and other traditional measures of equity analysis, which can help reduce correlation.
<strong>Where Can SCAP Fit in a Traditional Portfolio?</strong>

SCAP can serve as a core allocation of small cap equities and offers investors an alternative to index-based small cap exposure. Investors who want small cap don’t necessarily want market cap weighted funds which tend to be dominated by one or two sectors.

<strong>Key Attributes</strong>
  1. Disciplined Investment Philosophy – The Portfolio Manager’s investment philosophy is based on the view that the market often misprices fundamental improvements and is slow to recognize improving fundamentals, particularly in small cap stocks.
  2. Multi-Factor Security Selection – In selecting securities for SCAP, the Portfolio Manager considers many factors such as improvements in earnings estimates, positive earnings surprises, tangible book value and financial flexibility measured by a company’s ability to fund operations out of free cash flow.
  3. Elimination of Unqualified Companies – While the portfolio is diversified, unlike an index, the Portfolio Manager eliminates those companies with weak fundamentals as part of the security selection process.
  4. Quarterly Reconstitution – The portfolio is partly reconstituted each quarter, which ensures it responds to changes in market conditions and targets the most attractive securities, while limiting annual turnover.
  5. Focused Experience – The Portfolio Manager is comprised of veteran investors who have worked together for many years, adhering to the same disciplined investment philosophy.
<strong>About the Portfolio Managers</strong>

John Campbell, CFA
John serves as Chief Investment Officer and is a Partner for Cornerstone. He is a member of the Board of Directors. John had a 12 year tenure at Invesco Capital Management where he was a Global Partner and Portfolio Manager. In his last five years, John was in charge of managing Invesco Capital US Large Cap Value portfolio. He was also one of five members of the International Investment Committee, which managed over $15 Billion in assets. John graduated from State University of New York at Fredonia in 1981 with a degree in business finance. In the past he has been a CFA review course instructor, test grader, and exam writer.

Dean W. Morris, CFA
Dean is a Partner for Cornerstone and is responsible for research and portfolio management. Prior to Cornerstone, Dean was a Partner and Senior Director at Invesco Capital Management for 10 years. Dean co-managed the Invesco Capital Management U.S. Large Cap Value Portfolio with John Campbell for five years, in addition to providing research on U.S. financial stocks. Dean is a graduate of Williams College and holds an MBA from the University of Chicago.

Rick M. Van Nostrand, CFA
Rick is a Partner for Cornerstone and is responsible for research and portfolio management. He is a member of the Operating Committee. Prior to Cornerstone, Rick was a voting member of the investment committee at EARNEST Partners and served on the Fundamental Value product at Invesco Capital Management. He earned a MBA with a concentration in Finance from the Wharton School at the University of Pennsylvania, and holds a Bachelor of Science in Computer Science Engineering from Southern Methodist University.

Mark Spatt, CFA
Mark is a Partner for Cornerstone and is responsible for research and portfolio management. Prior to Cornerstone, was an Associate at Centerview Capital, where he took an active role in sourcing, evaluating and monitoring the firm’s investments. Mark began his career as an investment banker at J.P. Morgan’s Mergers and Acquisitions Group in New York, advising large-cap clients on complex domestic and cross-border transactions. Mark is a graduate of Princeton University and earned an MBA, with honors, from the Wharton School at the University of Pennsylvania, double majoring in Operations and Management.

FP Content
Are you a Financial Professional? *
By selecting "yes," you certify you are a financial professional.
Filter Categories
Filter - All
Cannabis
FixedIncome
Manager Minute
ACT
AlphaCall
CWS
DBLV
FWDB
HDGE
HOLD
MINC
SCAP
VEGA
YOLO

Fund

Price History

As of 11/13/2019

NAV $35.88 Closing Price $35.85
Change $-0.14 Close Change $-0.28
Shares Outstanding 136,476 Volume 2
4PM Bid/Offer Midpoint $35.85 Premium Discount $-0.03
Assets Under Management $4,896,381.62

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 10/31/2019

  NAV Market Price Return Russell 2000 Index
1 Month 1.16 1.20 2.08
3 Months -4.97 -4.79 -2.40
YTD 8.43 7.83 14.18
1 Year -14.32 -14.11 -8.89
3 Years 8.57 8.63 8.23
5 Years 9.30 - 8.19
Since Inception (7/6/2016, Annualized) 12.91 11.14 10.66

As of 9/30/2019

  NAV Market Price Return Russell 2000 Index
1 Month 2.81 2.52 2.63
3 Months -1.62 -2.05 -0.40
YTD 11.47 10.55 17.18
1 Year -0.88 -1.13 4.90
3 Years 11.02 10.97 10.96
5 Years 8.48 - 7.37
Since Inception (7/6/2016, Annualized) 13.18 11.67 11.09

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.

*Simultaneous with the commencement of the Fund’s investment operations on July 7, 2016, a separate account (the “Predecessor Account”), which was managed by the same portfolio management team, converted into the Fund. The Predecessor Account began trading June 30, 2012. All performance prior to July 7, 2016 represents actual trading of the Predecessor Account and has not been restated to reflect the estimated total annual operating expenses of the Fund, which, if reflected, would lower returns. Performance after July 7, 2016 is reflective of the total annual operating expenses of the Fund.

 

Fund

Holdings

As of 11/13/2019

FUND

Characteristics

As of 09/30/2019

SCAP Sector Allocation

FUND

Fees & Expenses

Management Fee 0.65%
Other Expenses 2.74%
Gross Expense Ratio 3.39%
Fee Waiver and/or Expense Reimbursement -2.49%
Net Expense Ratio 0.90%

The Advisor has contractually agreed to reduce its fees and/or reimburse expenses to keep net expenses (excluding amounts payable pursuant to any plan adopted in accordance with Rule 12b-1, interest expense, taxes, brokerage commissions, acquired fund fees and expenses, other expenditures which are capitalized in accordance with generally accepted accounting principles, and extraordinary expenses) from exceeding 0.90% 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.

Last Ten

Fund Distributions

Ex-Date Record Date Pay Date Cash Div ST Cap Gain LT Cap Gain Return of Capital Total Distribution (per share) SCAP
12/27/2019 12/30/2019 - - - - -
12/27/2018 12/28/2018 12/31/2018 $0.05012 $0.00000 $0.00000 $0.00000 $0.05012
12/27/2017 12/28/2017 12/29/2017 $0.03170 $0.60722 $0.10171 $0.00000 $0.03170
12/23/2016 12/28/2016 12/30/2016 $0.03010 $0.00000 $0.00000 $0.00000 $0.03010
ddp-et-icon|et-icon-mail-alt|

Contact Info

ddp-et-icon|et-icon-pin-alt|

Location

AdvisorShares Investments, LLC
4800 Montgomery Lane,
Suite 150
Bethesda, Maryland 20814

ddp-et-icon|et-icon-datareport|

ETF Symbols

 

AADRACT, CWS, DBLV, DWMC, DWSH, FLRT, FWDB, HDGE, HOLD, MINC, MJUS, SCAP, VEGA, YOLO

 

 

 

 

 

Privacy
Copyright © AdvisorShares 2019 • Foreside Fund Services, LLC Distributor

 

 

  • 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. An investment in the Fund is subject to risk, including the possible loss of principal amount invested. Investing in small capitalization companies may be riskier and more volatile than large cap companies. Security prices of small-cap companies are generally more vulnerable than those of large-cap companies to adverse business and economic developments. Other Fund risks include market risk, equity risk, large cap risk, liquidity risk and trading risk. Please see prospectus for details regarding risk.