VEGA - STAR GLOBAL BUY-WRITE ETF

Low Volatility, Moderate Risk, Global Balanced Portfolio

 

Symbol Exchange Inception Date CUSIP NAV
VEGA NYSE Arca 9/17/2012 00768Y768 VEGA.NV

<strong>About the ETF</strong>

The AdvisorShares STAR Global Buy-Write ETF (NYSE Arca: VEGA) is a low volatility, moderate risk, global balanced portfolio that strategically allocates to the capital markets and tactically overweights regions, sectors, or securities. VEGA also employs option strategies to create additional sources of income for total return and risk management. The Portfolio Manager writes (sells) covered call options against a portion of its underlying equity holdings. This extra source of income from the cover calls, along with the bond interest and equity dividends collected on the portfolio, can assist in hedging downside risk. This collective income stream also serves as the “funding source” for an internal systematic reinvestment strategy called Volatility Based Reinvestment (VBR). When equity volatility is high, as gauged by the VIX’s 200-day moving average, VEGA reinvests its cash positions back into the capital markets. When volatility is low, the Portfolio Manager may allocate a portion of VEGA’s cash position to protective put options for downside risk management. Over the long term, VEGA’s risk objective is a 0.65 beta of the S&P 500 Index.

<strong>Why Invest in VEGA?</strong>
  • A Lower Volatility, Risk Managed Solution – VEGA’s global balanced approach achieves its low volatile mandate by 1) developing a strategic asset allocation to the equity and fixed income markets; 2) tactically overweighting the portfolio to regions, sectors, or securities; and 3) employing multiple option strategies to enhance income streams and manage downside risk. 
  • Total Return Solution – Performance for VEGA is driven by collecting multiple sources of income from bond interest, equity dividends, and option premium, as well as from potential capital appreciation of its portfolio allocations. Additionally, VEGA’s option strategies for managing risk during market drawdowns are intended to contribute to its total return.
  • Alternatives Solution – Highlighting the varying option strategies, VEGA can be part of an alternative sleeve within a portfolio. Selling covered calls creates an additional source of portfolio income and buying protective puts may enhance the portfolio’s risk metrics.
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<strong>Where Can VEGA Fit in a Traditional Portfolio?</strong>

VEGA can serve as a core holding or as an alternatives sleeve within a portfolio.

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<strong>Key Attributes</strong>
  • Asset Allocation – The strategy’s global balanced approach tactically allocates to bonds, equities, and alternatives through broad market ETFs and strategically overweights regions, sectors, or individual securities. Asset allocation is the first step in managing the portfolio’s overall risk objective to a 0.65 beta of the S&P 500 Index.
  • Option Strategies for Income – The Portfolio Manager actively manages a covered call strategy on the portfolio’s equity holdings to add an additional income source to the bond interest and equity dividends. The cash collected from the combined income sources accumulates and serves as a second component to VEGA’s overall risk management objective of 0.65 beta to the S&P 500 Index. This income “self -funds” VEGA’s internal Volatility Based Reinvestment (VBR) strategy: a systematic buy-low reinvestment strategy triggered by market volatility, as measured by the VIX.
  • Option Strategies for Protection – Using the cash position that accumulates from the collection of bond interest, equity dividends, and option premium, the Portfolio Manager may purchase “protective puts” on up to 25% of VEGA’s notional value. This is a third step towards managing the portfolio’s overall risk objective to a 0.65 beta of the S&P 500 Index.
  • Harnessing Volatility – Movements in price, whether in an upward or downward manner, can be captured through the use of option contracts and be additive to total return. When volatility is high, option premiums rise and writing contracts (sell) can add to the portfolio’s income stream by collecting premium. When volatility is low, purchasing long term protective puts can be a risk management tool designed to reduce the portfolio’s downside participation.
  • Total Return Solution – Performance for VEGA will be driven by collecting multiple sources of income from bond interest, equity dividends, and option premium and from capital appreciation of its portfolio holdings. Additionally, VEGA’s option strategies for managing risk during market drawdowns are intended to contribute to its total return over a market cycle.
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<strong>About the Portfolio Manager</strong>

Kenneth R. Hyman, Portfolio Manager
Mr. Hyman serves as an Executive Vice President and portfolio manager for the Sub-Advisor, CreativeOne Wealth. Mr. Hyman joined the Sub-Advisor in October 2020 after the Sub-Advisor acquired substantially all the assets of Partnervest Financial Group LLC and its subsidiaries, including Partnervest Advisory Services, LLC, the former sub-advisor to VEGA. Mr. Hyman founded Partnervest Financial Group, LLC in 2001 and was responsible for the direction and oversight of its business affairs and served as a portfolio manager and member of the Investment Management Committee. Mr. Hyman also provided consulting services to Elysian Capital Holdings LLC, an equity owner of Partnervest and served as the Chief Compliance Officer of Elysian’s subsidiaries. Prior to establishing Partnervest Financial Group, LLC, Mr. Hyman was the Senior Executive and Financial Officer for Integral Securities, Inc. and Integral Securities Europe Ltd., the Managing Principal and Chief Operating Officer of Mercer Global Securities and the Director of Operations for Mercer Global Advisors, and the Vice President of trading for Associated Financial Group.

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VEGA Overview 

Get an introduction to the VEGA ETF directly from the portfolio manager, Kenneth R. Hyman.

VEGA Overview

  Get a quick and easy introduction to the VEGA ETF.

Fund

Price History

Fund Data

6/13/2024
NAV $41.81
Change $0.00
Shares Outstanding 1,465,000
Assets Under Management $61,248,532.20

 

 

 

 

Market Data

6/13/2024
Closing Price $41.75
Close Change $-0.02
Volume 1,183

Regulatory Data

6/13/2024
Premium Discount $-0.0500
30-Day Median bid-ask Spread 0.540000
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

VEGA Sector Allocation

FUND

Performance

As of 5/31/2024

  NAV Market Price Return MSCI World Index MSCI ACWI Index
1 Month 3.16 2.83 4.47 4.06
3 Months 2.11 2.02 3.82 3.79
YTD 5.22 5.05 9.52 8.88
1 Year 14.77 14.53 24.92 23.56
3 Years 2.78 2.83 6.67 5.12
5 Years 6.65 6.67 12.76 11.68
10 Years 5.30 5.28 9.13 8.40
Since Inception (9/17/2012, Annualized) 4.90 4.89 10.38 9.49

As of 3/31/2024

  NAV Market Price Return MSCI World Index MSCI ACWI Index
1 Month 2.39 2.51 3.21 3.14
3 Months 5.51 5.56 8.88 8.2
YTD 5.51 5.56 8.88 8.2
1 Year 15.28 16.08 25.11 23.22
3 Years 3.99 4.01 8.6 6.96
5 Years 6.31 6.4 12.07 10.92
10 Years 5.54 5.54 9.39 8.66
Since Inception (9/17/2012, Annualized) 5 5 10.48 9.58
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. 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.

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 VEGA SPY 78462F103 SPDR S&P 500 ETF TRUST 51,771 542.45 28,083,178.95 45.85% MF
IUSB 46434V613 ISHARES CORE TOTAL BOND ETF 250,410 45.52 11,398,663.20 18.61% MF
EFA 464287465 ISHARES MSCI EAFE ETF 93,983 78.70 7,396,462.10 12.08% MF
IWP 464287481 ISHARES RUSSELL MID-CAP GROW 29,636 109.84 3,255,218.24 5.32% MF
MBB 464288588 ISHARES MBS ETF 28,002 92.52 2,590,745.04 4.23% MF
DYNF 09290C103 BLACKROCK US EQY FCTR ROTATE 55,097 46.67 2,571,376.99 4.20% MF
GOVT 46429B267 ISHARES US TREASURY BOND ETF 71,387 22.69 1,619,771.03 2.64% MF
EEM 464287234 ISHARES MSCI EMERGING MARKET 36,160 42.18 1,525,228.80 2.49% MF
018GHMT26 SPY US 06/21/24 C550 -304 0.32 -9,576.00 -0.02% O
X9USDBLKR BLACKROCK LIQUIDITY T 60 2,756,113.89 1.00 2,756,113.89 4.50% MM
CASH 56,907.94 100.00 56,907.94 0.09% 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(a) 0.85%
Other Expenses 0.97%
Acquired Fund Fees(b) 0.18%
Fee/Expense Recapture(c) 0.03%
Total Annual Operating Expenses 2.03%

(a) Restated to reflect current fees.

(b) Total Annual Operating Expenses and Total Annual Operating Expenses After Waiver/Reimbursement in this fee table may not correlate to the expense ratios in the Fund’s financial highlights. For more information, please read the full prospectus.

(c) The Advisor has contractually agreed to keep net expenses from exceeding 1.85% 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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      • 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.       
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        • Definitions
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        • Covered Call percentage is derived from taking the total amount of Covered Calls sold over the total amount of Covered Calls available to be sold on the current shares in the portfolio. Covered Calls must be sold on lots of 100 (referred to as a round lot), so any shares that do not fit into an even lot are excluded from the calculation. Protective Put percentage is the Notional Value of the Protective Puts over the current value of the total portfolio. Notional Value is calculated by taking the strike of the Protective Put multiplied the number of contracts held multiplied 100.
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        •  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. 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.   
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        • Exercising an option means to put into effect the right specified in a contract.
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        • 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.
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        •  An option premium is income received by an investor who sells or “writes” an option contract to another party.
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        •  A protective put is an option strategy which entails buys 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).