SURE: 2nd Quarter 2025 Portfolio Review
Portfolio Review
The second quarter of 2025 proved to be a testament to the U.S. market’s resilience, as stocks shook off early jitters to post significant gains. After a brief downturn spurred by renewed tariff concerns, equities mounted a strong recovery, driven by a combination of robust corporate earnings, positive economic data, and an unprecedented wave of stock buybacks. This “Goldilocks” scenario—of growth that is not too hot to force the Fed’s hand on rates, yet strong enough to support corporate profits—provided fertile ground for the market’s advance.
A dominant theme supporting the market in the first half of 2025 was the staggering volume of corporate stock buybacks. Building on a record-breaking first quarter, the trend continued into the second quarter. New buyback programs announced in Q2 exceeded $435 billion, the highest level ever in any calendar quarter, as companies rushed to buy the dip amid the sell-off triggered after “Liberation Day.” This buyback bonanza has had a profound impact, most notably on earnings per share (EPS). By reducing the number of shares outstanding, companies have been able to mechanically boost their EPS figures, a key metric for investors. This has helped to sustain positive earnings growth even in the face of slowing revenue growth for some.
The technology sector, which added $146 billion in new buyback capacity in the previous quarter, has been the undisputed leader of this trend. Flush with cash, giants in the software and semiconductor industries have been aggressively buying back their own stock, signaling confidence in their future prospects and providing a strong floor for their share prices. The Financial sector has also been a major contributor this year. Following favorable stress test results, major banks announced significant increases in their capital return programs, including both dividends and buybacks, which helped propel the Financials sector to a strong quarterly gain. In fact, if we include the new buyback programs announced so far in July, the Financials sector is now leading all sectors with $345 billion year-to-date.
Source: Qubed Capital, LLC.
As we move into the second half of 2025, the market finds itself at a crossroads, with several key factors likely to influence its direction. The primary focus for investors in the coming months will undoubtedly be the Federal Reserve (Fed). After a series of aggressive rate hikes to combat inflation, the market is now pricing in a growing expectation of two rate cuts before the end of the year. The Fed, for its part, remains data-dependent, emphasizing that its decisions will be guided by incoming inflation and employment numbers.
The issue of tariffs and the broader U.S.-China trade relationship remains a wild card. The second quarter provided a stark reminder of how quickly trade-related headlines can inject volatility into the market. While a full-blown trade war has been averted for now, as the government has clinched trade deals with major trading partners, including Japan and the EU, underlying trade tensions persist. Any escalation, such as the imposition of new sectoral tariffs, could disrupt global supply chains, dampen corporate sentiment, and weigh on investor confidence. A de-escalation of trade tensions would be a significant positive catalyst for the market, while a renewed focus on protectionism would represent a key risk to the outlook. For now, the outlook appears cautiously optimistic.
Top Holdings
| Ticker | Security Description | Portfolio Weight % |
| SEIC | SEI INVESTMENTS COMPANY | 1.06% |
| PAGS | PAGSEGURO DIGITAL LTD-CL A | 1.06% |
| BYD | BOYD GAMING CORP | 1.05% |
| HLT | HILTON WORLDWIDE HOLDINGS IN | 1.05% |
| BDC | BELDEN INC | 1.04% |
| TKO | TKO GROUP HOLDINGS INC | 1.04% |
| RS | RELIANCE INC | 1.04% |
| BBWI | BATH & BODY WORKS INC | 1.03% |
| URI | UNITED RENTALS INC | 1.03% |
| MTG | MGIC INVESTMENT CORP | 1.03% |
As of 06.30.2025. Holdings are subject to change.
Respectfully,
Minyi Chen
Qubed Capital, LLC
AdvisorShares Insider Advantage ETF (SURE) Portfolio Strategist
Past Commentary
– A buyback (or repurchase) occurs when a company repurchases its own shares from the marketplace, reducing the number of shares outstanding.
– An insider is an officer, director, executive, entity, or individual that owns more than 10% of a publicly traded company’s shares.
– Insider buying is the legal purchase of shares in a firm by a corporate insider that is not based on non-public, material information and follows the U.S. Securities and Exchange Commission’s rules and reporting requirements.
– 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.
*On September 1, 2022, the AdvisorShares DoubleLine Value Equity ETF (the “Predecessor Fund”) was renamed the AdvisorShares Insider Advantage ETF. The Predecessor Fund had different portfolio managers and investment strategy than the AdvisorShares Insider Advantage ETF. Performance prior to September 1, 2022 reflects the Fund’s performance prior to the change in manager and investment strategy and may not be indicative of the Fund’s performance under the new manager and revised investment strategy. Performance since September 1, 2022 reflects actual AdvisorShares Insider Advantage ETF performance.
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 the Fund’s website at www.AdvisorShares.com. Please read the prospectus carefully before you invest. Foreside Fund Services, LLC, Distributor.
The Fund’s investment focus follows a core philosophy that corporate insiders know their companies best. The Advisor believes that insider buying and stock buyback programs not only show that corporate insiders see relative value in investing in their own company’s equity securities, but also create favorable market conditions by reducing public equity float (i.e., the share supply available to investors on the public secondary market). The Advisor allocates the Fund’s portfolio using research from a disciplined and quantitative proprietary model, the U.S. Insiders Edge Model, developed by Qubed Capital, LLC. In utilizing the model, the Advisor seeks to remove emotion from day-to-day decision-making by following a systematic process.
The Fund is an actively-managed exchange-traded fund (“ETF”) that seeks to achieve its investment objective by primarily investing in a portfolio of U.S. traded companies selected from a universe of the largest 3,000 U.S. equity securities based on market capitalization. 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.
The views in this commentary are those of the portfolio manager/strategist 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.