VICE - AdvisorShares Vice ETF

Invest in the Vices that People Love

Symbol Exchange Inception Date CUSIP Indicative Value
VICE NYSE Arca 12/12/2017 007768Y206 VICE.IV
<strong>What Does VICE Invest In?</strong>

What Does VICE Invest In?
The AdvisorShares Vice ETF (ticker: VICE) invests in the products and services that people find pleasure in regardless of economic conditions. VICE seeks long-term growth from select global companies operating in “vice” industries which can include alcohol, tobacco, gaming, food and beverage, restaurant and hospitality, or other vice related business activities.

<strong>Why Invest in VICE?</strong>
  • Historically Consistent, Non-Cyclical Demand – Regardless of market conditions, we believe consumers will continue to partake in the leisure habits and vices they enjoy. Additionally, products produced by vice companies tend to have greater price inelasticity and brand loyalty than other more commoditized products and services, allowing them to withstand price increases more readily. Historically, the alcohol and tobacco industries have shown themselves to be recession-resistant, delivering attractive returns across multiple market cycles.
  • Attractive Profit Margins – Despite reduced smoking habits and heavily restrictive marketing, tobacco companies possess some of the highest profit margins within the consumer products sector, while alcohol-related companies are also known for competitive profit margins.
  • Emerging Vice Industries – With an improving regulatory environment, gaming companies are positioned to expand their traditional gambling goods and services in new ways and to new consumers. There is potential for merger and acquisition activity as larger companies look to enter these new markets. Some emerging vice areas include online gaming, sports betting, e-sports.
  • Only ETF with Exposure to Multiple Vice Industries – VICE is the only ETF providing exposure to multiple diversified vice industries, including alcohol, gaming, and tobacco, rather than just one. The fully transparent ETF structure of VICE delivers intraday liquidity as well as operational and tax efficiency for its shareholders.
  • Active and Experienced Management – VICE is actively managed, allowing the portfolio to be adjusted more quickly and opportunistically than a passive index-based strategy. VICE’s portfolio manager, Dan Ahrens, has deep experience in the capital markets and well-established expertise investing in highly-regulated industries including alcohol, cannabis, gaming and tobacco.
<strong>Where Can VICE Fit in a Traditional Portfolio?</strong>

VICE can serve as an alpha-seeking complement or satellite equity holding to a broad-based equity allocation.
Because it is actively managed, VICE can adapt as markets evolve – whether it be from the growing legalization of gambling, the emergence of e-sports, the spread of sports betting, or other vice-related consumer trends.

<strong>Key Attributes</strong>
  • Economic Moat Advantage– Select alcohol, tobacco, and gaming companies carry competitive market advantages including regulatory barriers, brand loyalty, economies of scale, or distribution capabilities.
  • Attractive Dividends – The largest alcohol and tobacco companies have been among the equity market’s top dividend payers, exhibiting an attractive history of consistent growth and increasing dividends that can enhance the portfolio’s total return.
  • Enduring Profitability – Select alcohol and tobacco companies have demonstrated attractive profit margins and free cash flow, attributable to low production costs, price inelasticity, and purchasing loyalty.
  • Merger and Acquisition Potential – Companies involved in vice industries may benefit from potential merger and acquisition activity as larger companies look to enter these newer markets and expand their business.
  • Global and Diversified – Many of the largest alcohol, gaming, and tobacco companies are multinational in nature, deriving revenue from both domestic and international sources. VICE also invests across multiple vice industries to add diversification to the portfolio.

 

<strong>About the Portfolio Manager</strong>

Dan Ahrens, Portfolio Manager
Mr. Ahrens is a Managing Director and the Chief Operating Officer of AdvisorShares. He is the portfolio manager of the two other cannabis related AdvisorShares ETFs: MSOS and YOLO. MSOS offers pure cannabis exposure exclusively in the U.S. cannabis stocks and YOLO offers pure cannabis exposure that includes both U.S. and international cannabis stocks. He is the author of Investing in Cannabis (Wiley, 2020) and Investing in Vice (St. Martin’s Press, 2004), and has appeared on numerous financial programs including CNBC, CNN, Fox Business, ABC News and Bloomberg. He has been featured, along with funds under his management in major national and trade publications including The Economist, New York Times, Financial Times, and The Wall Street Journal. He earned a Bachelor in Business Administration in Finance from Texas Tech University.

 

VICE Overview from Dan Ahrens

 

Get an introduction to the VICE ETF directly from the portfolio manager, Dan Ahrens.

 

 

MSOS Overview from Dan Ahrens

 

Get an introduction to the MSOS ETF directly from the portfolio manager, Dan Ahrens.

 

Fund

Price History

As of 12/1/2020

NAV $27.02 Closing Price $27.08
Change $-0.14 Close Change $4.97
Shares Outstanding 375000 Volume 572
4PM Bid/Offer Midpoint $27.03 Premium Discount $0.01
Assets Under Management $10,132,701.73 30-Day Median bid-ask Spread -

Premium/Discount Historical Data | NAV Historical Data | Daily Historical Premium/Discounts

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 9/30/2020

VICE Sector Allocation

VICE Regional Allocation

FUND

Performance

As of 10/31/2020

NAV Market Price Return S&P 500
1 Month 3.25 3.6 -2.66
3 Months 9.01 9.28 0.37
YTD 7.45 7.8 2.77
1 Year 17.23 17.58 9.71
Since Inception (12/12/2017, Annualized) 4.28 4.36 9.45

As of 9/30/2020

NAV Market Price Return S&P 500
1 Month -0.87 -0.84 -3.8
3 Months 14.71 14.65 8.93
YTD 4.07 4.06 5.57
1 Year 13.43 13.35 15.15
Since Inception (12/12/2017, Annualized) 3.23 3.18 13.41

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

Date Account Symbol Stock Ticker Security Number Security Description Shares/Par (Full) Price (Base) Traded Market Value (Base) Portfolio Weight % Asset Group
12/01/2020 VICE SAM 100557107 BOSTON BEER COMPANY INC-A 1,172.00 966.53 1,132,773.16 10.34% S
TPB 90041L105 TURNING POINT BRANDS INC 16,783.00 40.36 677,361.88 6.18% S
LVMUY 502441306 LVMH MOET HENNESSY-UNSP ADR 5,020.00 120.72 606,014.40 5.53% FS
EAT 109641100 BRINKER INTERNATIONAL INC 10,400.00 51.28 533,312.00 4.87% S
HEAR 900450206 TURTLE BEACH CORP 27,000.00 19.17 517,590.00 4.72% S
NVDA 67066G104 NVIDIA CORP 900.00 535.60 482,040.00 4.40% S
ATVI 00507V109 ACTIVISION BLIZZARD INC 6,000.00 79.93 479,580.00 4.38% S
RICK 74934Q108 RCI HOSPITALITY HOLDINGS INC 15,056.00 29.21 439,785.76 4.01% S
MCRI 609027107 MONARCH CASINO & RESORT INC 7,800.00 56.08 437,424.00 3.99% S
TACO 245496104 DEL TACO RESTAURANTS INC 48,000.00 8.99 431,520.00 3.94% S
TTWO 874054109 TAKE-TWO INTERACTIVE SOFTWRE 2,300.00 180.06 414,138.00 3.78% S
GLPI 36467J108 GAMING AND LEISURE PROPERTIE 9,600.00 41.89 402,144.00 3.67% S
PENN 707569109 PENN NATIONAL GAMING INC 5,400.00 70.03 378,162.00 3.45% S
DPZ 25754A201 DOMINO'S PIZZA INC 750.00 391.75 293,812.50 2.68% S
RUTH 783332109 RUTH'S HOSPITALITY GROUP INC 17,000.00 16.39 278,630.00 2.54% S
BF/B 115637209 BROWN-FORMAN CORP-CLASS B 3,319.00 81.60 270,830.40 2.47% S
BYD 103304101 BOYD GAMING CORP 6,200.00 38.70 239,940.00 2.19% S
CHUY 171604101 CHUY'S HOLDINGS INC 9,500.00 24.18 229,710.00 2.10% S
VICI 925652109 VICI PROPERTIES INC 8,500.00 25.52 216,920.00 1.98% S
YUMC 98850P109 YUM CHINA HOLDINGS INC 3,600.00 58.17 209,412.00 1.91% S
UVV 913456109 UNIVERSAL CORP/VA 4,612.00 45.35 209,154.20 1.91% S
PM 718172109 PHILIP MORRIS INTERNATIONAL 2,693.00 77.03 207,441.79 1.89% S
WING 974155103 WINGSTOP INC 1,600.00 128.96 206,336.00 1.88% S
STZ 21036P108 CONSTELLATION BRANDS INC-A 999.00 205.74 205,534.26 1.88% S
MCD 580135101 MCDONALD'S CORP 900.00 216.14 194,526.00 1.77% S
DEO 25243Q205 DIAGEO PLC-SPONSORED ADR 1,161.00 157.66 183,043.26 1.67% FS
MO 02209S103 ALTRIA GROUP INC 4,477.00 40.49 181,273.73 1.65% S
VGR 92240M108 VECTOR GROUP LTD 14,976.00 11.34 169,827.84 1.55% S
IMBBY 45262P102 IMPERIAL BRANDS PLC-SPON ADR 8,724.00 18.78 163,836.72 1.49% FS
BUD 03524A108 ANHEUSER-BUSCH INBEV-SPN ADR 2,064.00 67.81 139,959.84 1.28% FS
PDRDY 714264207 PERNOD RICARD SA UNSPON ADR 3,127.00 39.20 122,578.40 1.12% FS
MGPI 55303J106 MGP INGREDIENTS INC 2,797.00 43.79 122,480.63 1.12% S
BTI 110448107 BRITISH AMERICAN TOB-SP ADR 3,386.00 35.73 120,981.78 1.10% FS
X9USDBLYT BLACKROCK TREASURY TRUST INSTL 62 51,641.13 1.00 51,641.13 0.47% MM
CASH 10,614.80 100.00 10,614.80 0.10% 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.

FUND

Fees & Expenses

Management Fee 0.60%
Other Expenses 0.83%
Gross Expenses Ratio 1.59%
Fee Waver and/or Expenses Reimbursement -0.60%
Net Expense Ratio 0.99%*

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 0.75% of the Fund’s average daily net assets for at least one year from the date of the Prospectus.

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) ACT
12/24/2020 12/28/2020 12/31/2020 - - - - - FORMULA
12/27/2019 12/30/2019 12/31/2019 $0.6203 $0.0000 $0.0000 $0.0000 $0.6203 VALUE
12/27/2018 12/28/2018 12/31/2018 $0.3682 $0.0000 $0.0000 $0.0000 $0.3682 VALUE
12/27/2017 12/28/2017 12/29/2017 $0.0448 $0.0000 $0.0000 $0.0000 $0.0448 VALUE
    • 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.     
    •      
    • The Fund is subject to a number of risks that may affect the value of its shares. This section provides additional information about the Fund’s principal risks. The degree to which a risk applies to the Fund varies according to its investment allocation. Each investor should review the complete description of the principal risks before investing in the Fund. As with investing in other securities whose prices increase and decrease in market value, you may lose money by investing in the Fund.
    •      
    • Investing involves risks including possible loss of principal. Companies in the food, beverage, gambling, e-game and tobacco industry are very competitive and subject to several risks. Demographic and product trends, changing consumer preferences, nutritional and health-related concerns, competitive pricing, marketing campaigns, environmental factors, adverse changes in general economic conditions, government regulation, food inspection and processing control, consumer boycotts, risks of product tampering, product liability claims, and the availability and expense of liability insurance can affect the demand for, and success of, such companies’ products in the marketplace. For a full summary of the risks, please see the prospectus.
    •      
    • Definitions
    •      
    • Alpha, one of the most commonly quoted indicators of investment performance, is defined as the excess return on an investment relative to the return on a benchmark index. 
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