VEGA: 3rd Quarter 2026 Portfolio Review
Portfolio Update
| As of 09.30.2026 | 3Q 2026 | YTD |
| VEGA (Net Asset Value (NAV)) | -0.31% | 6.50% |
| VEGA (Market) | -0.38% | 6.70% |
| MSCI ACWI (All Cap World Index) | 1.60% | 13.03% |
| CBOE S&P 500 BuyWrite Index | 4.29% | 10.96% |
| Bloomberg U.S. Aggregate Bond Index | -3.51% | -2.91% |
AdvisorShares STAR GLOBAL Buy-Write ETF (VEGA) returns were flat in the 3rd quarter, weighed down by our allocation to fixed income which was weighed down by surging yields. Despite negative fixed income returns, VEGA’s fixed income allocation outperformed the Bloomberg U.S. Aggregate bond index over the quarter due to the portfolio’s lower duration profile. VEGA’s equity allocation benefited from an underweight to small cap stocks which were down -7.23% as measured by the Russell 2000, and overweight to domestic, large cap equities which was the strongest performing equity asset class over the measurement period.
Top Holdings
| Ticker | Security Description | Portfolio Weight % |
| SPY | SPDR S&P 500 ETF TRUST | 41.59% |
| IUSB | ISHARES CORE TOTAL BOND ETF | 16.31% |
| EFA | ISHARES MSCI EAFE ETF | 10.69% |
| DYNF | BLACKROCK US EQUITY FACTOR | 7.56% |
| GOVT | ISHARES US TREASURY BOND ETF | 5.92% |
| EEM | ISHARES MSCI EMERGING MARKET | 5.35% |
| IWP | ISHARES RUSSELL MID-CAP GROW | 3.90% |
| MBB | ISHARES MBS ETF | 3.60% |
As of 09.30.2026. Cash not included. Holdings subject to change.
Activity
Market Outlook
| Index Total Returns (%) | 3Q26 | YTD | 1 Yr | 3 Yr | 5 Yr |
| S&P 500 Index TR | 2.30 | 12.75 | 15.74 | 22.84 | 13.78 |
| DJ Industrial Average TR | -2.34 | 7.19 | 11.50 | 16.97 | 10.57 |
| NASDAQ Composite Index TR | 2.61 | 16.09 | 19.25 | 27.46 | 14.03 |
| Russell Mid Cap Index TR | -3.00 | 11.84 | 12.01 | 17.16 | 8.03 |
| Russell 2000 Index TR | -7.23 | 13.71 | 16.20 | 17.69 | 6.33 |
| MSCI Emerging Markets Index TR | -0.37 | 23.38 | 29.22 | 24.05 | 8.94 |
| MSCI EAFE Index TR | 0.80 | 10.33 | 15.69 | 18.36 | 9.32 |
| Bloomberg US Aggregate Bond Index TR | -3.51 | -2.91 | -1.84 | 4.05 | -0.64 |
As of 09.30.2026. Data is from Bloomberg. Returns over one year are annualized. TR = total return. Past performance is no guarantee of future results. It is not possible to invest directly in an index.
The third quarter narrative continued to be dominated by rising yields, particularly across the intermediate part of the yield curve. Rising yields don’t just affect fixed income prices, but they can also negatively impact equity valuations. The most pronounced effect of rising yields was felt in small cap stocks which are typically more rate sensitive than their larger cap counterparts. We also see the effects across rate sensitive sectors like financials, real estate, and utilities which were down -0.4%, -6.3%, and -12.4%, in the 3rd quarter respectively.2
Fixed income had a disappointing quarter with the Bloomberg U.S. Aggregate drawing down -3.5% on surging yields. The Federal Open Market Committee (FOMC) raised the target federal funds rate a quarter of a percent during their September meeting to a target range of 3.75 – 4.0 and signaled one more anticipated hike in 2026. The FOMC only has two more meetings, in October and December, and the market anticipates that the additional rate hike is more likely to occur in December so as not to interfere or give any external impression that it’s politically motivated around the November mid-terms.
Thank you for your continued trust in VEGA.
Matt Heimann, CFA Ken Hyman
CreativeOne Wealth, LLC
AdvisorShares STAR Global Buy-Wrtie ETF (VEGA) | Portfolio Managers
Past Commentary
Sources:
1. Data from Bloomberg L.P as of September 30, 2026. Returns over one year are annualized.
2. Data from Bloomberg L.P. from June 30, 2026, through September 30, 2026.
Past performance is no guarantee of future returns.
The graphs and charts in this commentary are for illustrative purposes only and not indicative of any actual investment. Index returns do not reflect any fees, expenses, or sales charges. Stocks are not guaranteed and have been more volatile than other asset classes. Historical returns were the result of certain market factors and events which may not be repeated in the future. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgement in determining whether investments are appropriate for clients.
The information here is not intended to constitute an investment recommendation or advice.
Returns are based on the S&P 500 Total Return Index, an unmanaged, capitalization-weighted index that measures the performance of 500 large capitalization domestic stocks representing all major industries. Indices do not include fees or operating expenses and are not available for actual investment. The hypothetical performance calculations are shown for illustrative purposes only and are not meant to be representative of actual results while investing over the time periods shown. The hypothetical performance calculations for the respective strategies are shown gross of fees. If fees were included returns would be lower. Hypothetical performance returns reflect the reinvestment of all dividends. The hypothetical performance results have certain inherent limitations. Unlike an actual performance record, they do not reflect actual trading, liquidity constraints, fees and other costs. Also, since the trades have not actually been executed, the results may have under- or overcompensated for the impact of certain market factors such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. Returns will fluctuate and an investment upon redemption may be worth more or less than its original value. Past performance is not indicative of future returns. An individual cannot invest directly in an index.
This material has been prepared for information and educational purposes and should not be construed as a solicitation for the purchase or sell of any investment. The content is developed from sources believed to be reliable. This information is not intended to be investment, legal or tax advice. Investing involves risk, including the loss of principal. No investment strategy can guarantee a profit or protect against loss in a period of declining values.
Investment advisory services offered by duly registered individuals on behalf of CreativeOne Wealth, LLC a Registered Investment Adviser. 6330 Sprint Parkway, Suite 400, Overland Park, KS 66211
Definitions:
bp or Basis point is one hundredth of a percentage point (0.01%).
The Bloomberg US Aggregate Bond Index broadly tracks the performance of the U.S. investment-grade bond market. and is comprised of investment-grade government and corporate bonds.
The BXM Index or CBOE S&P 500 BuyWrite Index is designed to measure the total rate of return of a hypothetical “buy-write”, or “covered call”, strategy on the S&P 500 Index.
A covered call option involves holding a long position in a particular asset, in this case shares of an ETP, and writing a call option on that same asset with the goal of realizing additional income from the option premium.
Delta, in options trading, is a risk metric that measures the sensitivity of an option’s price relative to changes in the price of its underlying asset.
The Dow Jones Industrial Average is a stock market index that tracks 30 large, publicly-owned blue-chip companies trading on the New York Stock Exchange and Nasdaq.
The MSCI ACWI (All Country World Index) is is an unmanaged free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets.
The MSCI EAFE Index is a broad market index of over 900 stocks located within 21 countries in Europe, Australasia, and the Middle East and is often used as a benchmark for global developed market equities.
The MSCI Emerging Markets Index is used to measure the financial performance of mid- and large-cap companies in fast-growing economies in 25 countries throughout the world.
The Nasdaq Composite Index is a market capitalization-weighted index of more than 3,700 stocks listed on the Nasdaq stock exchange which is heavily weighted to the technology sector.
An option is a privilege, sold by one party to another that gives the buyer the right, but not the obligation, to buy (call) or sell (put) a stock at an agreed upon price within a certain period or on a specific date.
Exercising an option means to put into effect the right specified in the option contract.
An option premium is income received by an investor who sells or “writes” an option contract to another party.
A call option is considered Out Of The Money when the call option’s strike price is higher than the prevailing market price of the underlying stock.
A put option is considered Out Of The Money when the put option’s strike price is lower than the prevailing market price of the underlying stock.
A protective put is an option strategy which entails buying shares of a security and, at the same time, enough put options to cover those shares. This can act as a hedge on the invested security, since matching puts with shares of the stock can limit the downside (due to the nature of puts).
A put option is a contract that gives the owner of the option the right to sell a specified amount of the asset underlying the option at a specified price within a specified time.
The Russell 2000 Index refers to a stock market index that measures the performance of the 2,000 smaller companies included in the Russell 3000 Index and is widely regarded as a bellwether of the U.S. economy because of its focus on smaller companies that focus on the U.S. market.
The Russell Midcap Index is a stock market index that measures performance of the 800 smallest companies in the Russell 1000 Index.
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.
A short position is the sale of a borrowed investment with the expectation that it will decline in value.
Volatility is a statistical measure of the dispersion of returns for a given security or market index. Volatility can either be measured by using the standard deviation or variance between returns from that same security or market index. Commonly, the higher the volatility, the riskier the security.
Implied Volatility is the estimated volatility of a security’s price. In general, implied volatility increases when the market is bearish and decreases when the market is bullish. This is due to the common belief that bearish markets are more risky than bullish markets.
The CBOE Volatility Index (VIX) shows the market’s expectation of 30-day volatility. It is constructed using the implied volatilities of a wide range of S&P 500 index options. This volatility is meant to be forward looking and is calculated from both calls and puts. The VIX is a widely used measure of market risk and is often referred to as the “investor fear gauge”. The VIX is a contrarian sentiment indicator that helps to determine when there is too much optimism or fear in the market.
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.
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. Other Fund risks included: allocation risk; derivative risk; early closing risk; Exchange Traded Note risk; liquidity risk, market risk; trading risk; commodity risk; concentration risk; counterparty risk; credit risk; emerging markets and foreign securities risk; foreign currency risk; large-, mid- and small- cap stock risk. Please see the prospectus for detailed information regarding risk. The Fund is also subject to options risk. Writing and purchasing call and put options are specialized activities and entail greater than ordinary investment risk. The value of the Fund’s positions in options fluctuates in response to the changes in value of the underlying security. The Fund also risks losing all or part of the cash paid for purchasing call and put options. The Fund may not be suitable for all investors.
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 change.
The views in this commentary are those of the portfolio manager and many not reflect his views on the date this material is distributed or any time thereafter. These views are intended to assist shareholders in understanding their investments and do not constitute investment advice.