SURE - AdvisorShares Insiders Advantage ETF

Find the Insider Advantage

Invest in firms reducing their equity float through buyback programs and insider buying

Symbol Exchange Inception Date CUSIP
SURE NYSE Arca 10/4/2011 00768Y818
<strong>About the ETF</strong>

Following a core investment philosophy that corporate insiders know their companies the best, the AdvisorShares Insider Advantage ETF (SURE) seeks to invest in the equities of companies actively trying to reduce their public equity float through well-executed stock buyback programs and corporate insider buying. Not only do buybacks and insider buying demonstrate that executives may see relative value in the firm’s stock, they also could create favorable shareholder market conditions through the reduction of publicly available shares (float shrink). SURE selects holdings using an active, quantitative, multi-factor model to identify companies shrinking float, lowering leverage, growing free cash flow, and providing dividends. SURE’s holdings are equal-weighted and reconstituted/rebalanced monthly.

<strong>What Is Float Shrink?</strong>

Public equity float refers to the portion of a company’s outstanding shares that is in the hands of public investors – as opposed to company officers, directors, or stockholders that hold controlling interests – and are available for trading in the open market. The float is calculated by subtracting restricted shares from outstanding shares. Float shrink occurs when there is a reduction of publicly available shares. 

Buybacks – action taken by a corporation to repurchase its own shares from the marketplace – are the most common cause of float shrink today and one of two ways a company can distribute profits to shareholders. Dividend payments are the second form. While firms may implement both, since 1997, share buybacks have surpassed cash dividends to become the dominant form of corporate payout in the U.S. Not only do buybacks avoid a stock price penalty if a firm cuts or ends a program, like dividends are subject to, but also provide a positive market impact by improving earnings and cash flow per share.

Insider buying – the purchase of shares in a corporation by a board member, officer, or executive within that company (i.e., corporate insider) – is another way that float shrink occurs. It may be a strong indicator that insiders are becoming more optimistic about the company’s future. Buying by corporate insiders is legal, highly regulated, publicly disclosed, and different from “insider trading” – the illegal act of buying or selling stock by someone who has privileged, non-public information about a company.

 

<strong>Why Invest?</strong>
  • Investing with Corporate Insiders – Top firm executives know more about the company’s fundamentals than the investing public. These insiders can influence their company’s share price by timing equity issuance and repurchase to the firm’s advantage. A well-implemented buyback program reduces publicly available shares and can increase the stock’s price. Additionally, corporate insider buying can be a bullish signal that the stock is underpriced by the market.
  • Conscientious Float Shrink – Investing solely in stock buybacks can be problematic. SURE employs a comprehensive, multi-factor strategy to assess if a firm is reducing their float in a well-planned manner, analyzing free cash flow, profitability, leverage reduction, dividend yield, net buybacks and insider buying.
  • Disciplined Growth – A quantitative, actively managed, equal weight investment strategy focused on long-term growth. 

 

<strong>Key Attributes</strong>
  • Float Shrink – Corporate insiders have better information than the investing public and know their companies the best. Stock buyback programs and insider buying not only show that corporate insiders see relative value in investing in their own equity securities, but also create favorable market conditions for shareholders by reducing the number of publicly traded shares and improving earnings and cash flow per share. 
  • Extensive Stock Screening – SURE’s portfolio manager screens approximately 3,000 companies and looks for the following characteristics when selecting stocks: shareholder-friendliness (measured by float shrink and dividend yield), profitability (measured by free cash flow), solid balance sheet (measured by outstanding leverage).
  • Equal Weight Investing – In a market-cap weighted portfolio, a small number of the largest companies receive the heaviest allocations and overvalued components are overweighted relative to undervalued components. By contrast, with an equal weight strategy, the bias to the largest companies is removed; a buy low, sell high discipline is regularly followed with periodic rebalancing; and reallocation to undervalued stocks may provide the opportunity to capture long-term equity performance.
  • Actively Managed ETF Structure – SURE is different from other buyback-focused investments that follow passive, market-cap weighted indexes and only reconstitute annually. SURE re-evaluates its investable universe and existing holdings monthly – adding or removing stocks and returning each security to an equal-weight allocation – allowing SURE to react more quickly to changes in buyback programs, acquisition announcements, etc. An ETF structure allows for better tax efficiency than mutual funds or than investing in the underlying stocks directly.
<strong>Where Can SURE Fit in a Traditional Portfolio?</strong>

SURE can serve as a thematic investment or a complement to a dividend investing or market-cap weighted core strategy.

<strong>About the Portfolio Strategist</strong>

Minyi Chen, Portfolio Strategist

Minyi Chen, CFA is the founder and CEO of Qubed Capital, a registered investment advisor founded in 2015 and based in Oakland, California. For over a decade, Mr. Chen has been providing quantitative financial research and analysis along with proprietary investment models to both retail and institutional investors. In the past, Mr. Chen has served as a portfolio manager of the AdvisorShares TrimTabs Float Shrink ETF (ticker: TTFS) and the TrimTabs International Free-Cash-Flow ETF (ticker: FCFI).

 

 

SURE Overview 

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SURE Overview

  Get a quick and easy introduction to the SURE ETF.

Fund

Price History

Fund Data

6/13/2024
NAV $112.38
Change $-0.40
Shares Outstanding 420,000
Assets Under Management $47,200,696.89

 

 

 

 

Market Data

6/13/2024
Closing Price $112.44
Close Change $-0.40
Volume 585

Regulatory Data

6/13/2024
Premium Discount $-0.0700
30-Day Median bid-ask Spread 0.370000
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 5/31/2024

SURE Market Capitalization

Source: Morningstar & AdvisorShares

SURE Sector Allocation

FUND

Performance

As of 5/31/2024

  NAV Market Price Return Russell 1000 Value Russell 3000 Index
1 Month 3.71 3.65 3.17 4.72
3 Months 2.80 2.75 3.70 3.34
YTD 9.10 8.98 7.64 10.41
1 Year 33.24 33.44 21.71 27.57
3 Years 6.84 6.87 5.45 7.81
5 Years 13.52 13.51 10.74 14.98
10 Years 9.60 9.59 8.61 12.08
Since Inception (10/04/2011, Annualized) 13.39 13.38 12.18 14.78

As of 3/31/2024

  NAV Market Price Return Russell 1000 Value Russell 3000 Index
1 Month 5.39 5.33 5 3.23
3 Months 11.84 11.72 8.99 10.02
YTD 11.84 11.72 8.99 10.02
1 Year 31.52 31.47 20.27 29.29
3 Years 10.55 10.63 8.11 9.75
5 Years 13.68 13.66 10.32 14.32
10 Years 10.13 10.11 9.01 12.32
Since Inception (10/04/2011, Annualized) 13.8 13.8 12.46 14.98

As of 5/31/2024

  NAV Market Price Return Russell 1000 Value Russell 3000 Index
1 Month 3.71 3.65 3.17 4.72
3 Months 2.80 2.75 3.70 3.34
YTD 9.10 8.98 7.64 10.14
1 Year 33.24 33.44 21.71 27.57
Since 9/1/2022, Annualized 18.69 18.84 12.44 34.88

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.

*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.

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. One cannot invest directly in an index. The Russell 1000 Index represents the top 1000 companies by market capitalization in the United States. The index is a subset of the Russell 3000 Index. The Russell 3000 Index is broad market, capitalization-weighted index comprised of the largest 3,000 U.S. companies and represents 98% of the investable U.S. equity market. 

Fund

Holdings

As of

Excel    CSV

Date Account Symbol Stock Ticker Security ID Security Description Shares Share Price Market Value Portfolio Weight Asset Group
06/13/2024 SURE AAPL 037833100 APPLE INC 2,788 214.24 597,301.12 1.26% S
KLAC 482480100 KLA CORP 715 830.03 593,471.45 1.26% S
AVGO 11135F101 BROADCOM INC 346 1,678.99 580,930.54 1.23% S
AMAT 038222105 APPLIED MATERIALS INC 2,402 237.55 570,595.10 1.21% S
IDCC 45867G101 INTERDIGITAL INC 4,688 117.50 550,840.00 1.17% S
LRCX 512807108 LAM RESEARCH CORP 527 1,038.50 547,289.50 1.16% S
CTS 126501105 CTS CORP 10,452 51.66 539,950.32 1.14% S
BDC 077454106 BELDEN INC 5,498 97.80 537,704.40 1.14% S
MUSA 626755102 MURPHY USA INC 1,116 478.52 534,028.32 1.13% S
WING 974155103 WINGSTOP INC 1,300 406.80 528,840.00 1.12% S
LDOS 525327102 LEIDOS HOLDINGS INC 3,662 144.15 527,877.30 1.12% S
NRG 629377508 NRG ENERGY INC 6,544 79.38 519,462.72 1.10% S
VST 92840M102 VISTRA CORP 5,869 88.40 518,819.60 1.10% S
RL 751212101 RALPH LAUREN CORP 2,784 186.30 518,659.20 1.10% S
DPZ 25754A201 DOMINO'S PIZZA INC 976 528.75 516,060.00 1.09% S
TMUS 872590104 T-MOBILE US INC 2,940 175.11 514,823.40 1.09% S
WAB 929740108 WABTEC CORP 3,146 163.43 514,150.78 1.09% S
OC 690742101 OWENS CORNING 2,832 181.19 513,130.08 1.09% S
CSL 142339100 CARLISLE COS INC 1,232 413.59 509,542.88 1.08% S
DD 26614N102 DUPONT DE NEMOURS INC 6,330 80.08 506,906.40 1.07% S
ROST 778296103 ROSS STORES INC 3,468 145.65 505,114.20 1.07% S
NYT 650111107 NEW YORK TIMES CO-A 9,981 49.95 498,550.95 1.06% S
HLT 43300A203 HILTON WORLDWIDE HOLDINGS IN 2,350 211.64 497,354.00 1.05% S
CL 194162103 COLGATE-PALMOLIVE CO 5,232 94.76 495,784.32 1.05% S
RMD 761152107 RESMED INC 2,332 212.38 495,270.16 1.05% S
EA 285512109 ELECTRONIC ARTS INC 3,638 135.87 494,295.06 1.05% S
KBH 48666K109 KB HOME 7,100 69.47 493,237.00 1.04% S
PJT 69343T107 PJT PARTNERS INC - A 4,854 101.41 492,244.14 1.04% S
GM 37045V100 GENERAL MOTORS CO 10,285 47.65 490,080.25 1.04% S
GOOGL 02079K305 ALPHABET INC-CL A 2,797 175.16 489,922.52 1.04% S
VSEC 918284100 VSE CORP 5,988 81.71 489,279.48 1.04% S
SPG 828806109 SIMON PROPERTY GROUP INC 3,214 151.87 488,110.18 1.03% S
EBAY 278642103 EBAY INC 9,084 53.69 487,719.96 1.03% S
BGC 088929104 BGC GROUP INC-A 59,552 8.10 482,371.20 1.02% S
MTG 552848103 MGIC INVESTMENT CORP 22,932 20.96 480,654.72 1.02% S
RTX 75513E101 RTX CORP 4,572 105.03 480,197.16 1.02% S
MO 02209S103 ALTRIA GROUP INC 10,475 45.75 479,231.25 1.01% S
PHM 745867101 PULTEGROUP INC 4,141 115.47 478,161.27 1.01% S
META 30303M102 META PLATFORMS INC-CLASS A 948 504.10 477,886.80 1.01% S
NMRK 65158N102 NEWMARK GROUP INC-CLASS A 46,982 10.09 474,048.38 1.00% S
NHI 63633D104 NATL HEALTH INVESTORS INC 7,175 65.99 473,478.25 1.00% S
AYI 00508Y102 ACUITY BRANDS INC 1,826 259.23 473,353.98 1.00% S
GHC 384637104 GRAHAM HOLDINGS CO-CLASS B 664 709.41 471,048.24 1.00% S
LEN 526057104 LENNAR CORP-A 3,028 155.04 469,461.12 0.99% S
JBL 466313103 JABIL INC 3,868 121.10 468,414.80 0.99% S
PVH 693656100 PVH CORP 4,122 113.22 466,692.84 0.99% S
MAR 571903202 MARRIOTT INTERNATIONAL -CL A 1,938 240.47 466,030.86 0.99% S
CHD 171340102 CHURCH & DWIGHT CO INC 4,376 106.48 465,956.48 0.99% S
MRO 565849106 MARATHON OIL CORP 16,800 27.68 465,024.00 0.98% S
TMO 883556102 THERMO FISHER SCIENTIFIC INC 810 572.63 463,830.30 0.98% S
GNTX 371901109 GENTEX CORP 13,430 34.53 463,737.90 0.98% S
SCS 858155203 STEELCASE INC-CL A 37,604 12.33 463,657.32 0.98% S
HIG 416515104 HARTFORD FINANCIAL SVCS GRP 4,640 99.72 462,700.80 0.98% S
LNG 16411R208 CHENIERE ENERGY INC 2,905 159.22 462,534.10 0.98% S
COLM 198516106 COLUMBIA SPORTSWEAR CO 5,643 81.87 461,992.41 0.98% S
AWI 04247X102 ARMSTRONG WORLD INDUSTRIES 4,004 115.02 460,540.08 0.98% S
V 92826C839 VISA INC-CLASS A SHARES 1,695 271.19 459,667.05 0.97% S
LBRT 53115L104 LIBERTY ENERGY INC 20,610 22.21 457,748.10 0.97% S
STR 82983N108 SITIO ROYALTIES CORP-A 19,933 22.90 456,465.70 0.97% S
UTZ 918090101 UTZ BRANDS INC 25,492 17.85 455,032.20 0.96% S
GE 369604301 GENERAL ELECTRIC CO 2,920 155.69 454,614.80 0.96% S
GFF 398433102 GRIFFON CORP 6,789 66.83 453,708.87 0.96% S
BALL 058498106 BALL CORP 6,819 66.22 451,554.18 0.96% S
MET 59156R108 METLIFE INC 6,542 68.66 449,173.72 0.95% S
MLM 573284106 MARTIN MARIETTA MATERIALS 791 567.80 449,129.80 0.95% S
MA 57636Q104 MASTERCARD INC - A 1,007 445.00 448,115.00 0.95% S
BCC 09739D100 BOISE CASCADE CO 3,418 130.50 446,049.00 0.94% S
GWW 384802104 WW GRAINGER INC 483 921.07 444,876.81 0.94% S
AIG 026874784 AMERICAN INTERNATIONAL GROUP 5,999 74.11 444,585.89 0.94% S
OMC 681919106 OMNICOM GROUP 4,961 89.39 443,463.79 0.94% S
OLN 680665205 OLIN CORP 8,628 51.37 443,220.36 0.94% S
SM 78454L100 SM ENERGY CO 9,368 47.20 442,169.60 0.94% S
BWXT 05605H100 BWX TECHNOLOGIES INC 4,962 89.02 441,717.24 0.94% S
PTEN 703481101 PATTERSON-UTI ENERGY INC 43,680 10.10 441,168.00 0.93% S
AXP 025816109 AMERICAN EXPRESS CO 1,973 222.19 438,380.87 0.93% S
CI 125523100 THE CIGNA GROUP 1,311 334.15 438,070.65 0.93% S
CMC 201723103 COMMERCIAL METALS CO 8,546 51.17 437,298.82 0.93% S
BG H11356104 BUNGE GLOBAL SA 4,239 103.14 437,210.46 0.93% FS
AMG 008252108 AFFILIATED MANAGERS GROUP 2,872 152.01 436,572.72 0.92% S
MGY 559663109 MAGNOLIA OIL & GAS CORP - A 17,982 24.20 435,164.40 0.92% S
ALSN 01973R101 ALLISON TRANSMISSION HOLDING 5,832 74.25 433,026.00 0.92% S
CTVA 22052L104 CORTEVA INC 8,390 51.58 432,756.20 0.92% S
WU 959802109 WESTERN UNION CO 34,479 12.46 429,608.34 0.91% S
EXP 26969P108 EAGLE MATERIALS INC 1,856 230.92 428,587.52 0.91% S
WYNN 983134107 WYNN RESORTS LTD 4,688 90.49 424,217.12 0.90% S
VLO 91913Y100 VALERO ENERGY CORP 2,807 149.82 420,544.74 0.89% S
CAT 149123101 CATERPILLAR INC 1,280 326.36 417,740.80 0.88% S
STLD 858119100 STEEL DYNAMICS INC 3,438 121.42 417,441.96 0.88% S
EOG 26875P101 EOG RESOURCES INC 3,458 119.10 411,847.80 0.87% S
TEX 880779103 TEREX CORP 7,502 54.76 410,809.52 0.87% S
DOX G02602103 AMDOCS LTD 5,362 75.81 406,493.22 0.86% FS
PSX 718546104 PHILLIPS 66 2,950 137.67 406,126.50 0.86% S
NUE 670346105 NUCOR CORP 2,609 154.12 402,099.08 0.85% S
MPC 56585A102 MARATHON PETROLEUM CORP 2,346 170.51 400,016.46 0.85% S
COP 20825C104 CONOCOPHILLIPS 3,584 110.89 397,429.76 0.84% S
HOG 412822108 HARLEY-DAVIDSON INC 11,682 33.15 387,258.30 0.82% S
PBF 69318G106 PBF ENERGY INC-CLASS A 8,277 44.95 372,051.15 0.79% S
ODFL 679580100 OLD DOMINION FREIGHT LINE 2,148 172.91 371,410.68 0.79% S
WNC 929566107 WABASH NATIONAL CORP 17,660 20.96 370,153.60 0.78% S
KLG 92942W107 WK KELLOGG CO 19,828 17.88 354,524.64 0.75% S
X9USDBLYT BLACKROCK TREASURY TRUST INSTL 62 255,507.75 1.00 255,507.75 0.54% MM
CASH 198,587.9 100.00 198,587.90 0.42% 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.

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FUND

Fees & Expenses

Management Fee 0.70%
Total Annual Operating Expenses 1.05%
Fee Waiver/Expense Reimbursement* -0.15%
Total Annual Operating Expenses After Waiver/Reimbursement 0.90%

*The Advisor has contractually agreed to keep net expenses from exceeding 0.90% of the Fund’s average daily net assets for at least one year from the date of the prospectus. For more information, please read the full prospectus.

Last Ten

Fund Distributions

  • 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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  • 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.
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  • 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.
  •  
  • Definitions   
    A buyback occurs when a company repurchases its own shares from the marketplace, reducing the number of shares outstanding.
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  • Equity float is the portion of a company’s outstanding shares that is in the hands of public investors, as opposed to company officers, directors, or stockholders that hold controlling interests that have trading restrictions.
  •     
  • Float shrink is a reduction in the number of a company’s shares available for trading.
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  • Free cash flow represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. It is a measure of profitability and represents the cash available for the company to repay creditors and pay out dividends and interest to investors.
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  • An insider is an officer, director, executive, entity, or individual that owns more than 10% of a publicly traded company’s shares.
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  • 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. 
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  • Insider trading is the illegal trading a publicly traded company’s security by anyone who has non-public, material information about that security before the information becomes public.