VICE: 1st Quarter 2026 Portfolio Review
Portfolio
Performance
In Q1 2026, the AdvisorShares Vice ETF (VICE) returned -0.62% (NAV) / +0.06% (market), demonstrating relative resilience compared to the S&P 500 Index, which declined -4.33% during the same period.
The fund’s defensive characteristics, anchored by tobacco, select consumer brands, and gambling/gaming, helped offset broader market weakness as large-cap growth and technology sold off sharply. For the trailing one-year period ending March 31st, 2026, VICE returned +1.39% (NAV) / +1.66% (market).
Portfolio
VICE maintained an active management approach during the first quarter, adjusting portfolio exposures in response to the shifting macro environment and evolving consumer preferences.
We added new positions in:
- Carlsberg ADR (CABGY): +12,000 shares
- Super Group SGHC Ltd. (SGHC): +31,000 shares
We re-entered positions in:
- Ambev (ABEV): +117,000 shares
- Gaming and Leisure Properties Inc. (GLPI): +7,300 shares
- Heineken (HEINY): +8,600 shares
- The Hershey Co. (HSY): +1,600 shares
- Yum China Holdings Inc. (YUMC): +5,800 shares
We fully exited positions in:
- Boyd Gaming Corp. (BYD)
- El Pollo Loco Holdings Inc. (LOCO)
- MGP Ingredients Inc. (MGPI)
- Sharplink Gaming Inc. (SBET)
- Turning Point Brands Inc. (TPB)
- Universal Corp. (UVV)
- Vita Coco Co. Inc. (COCO)
- Gambling.com Group Ltd. (GAMB)
- Ferrari (RACE)
These changes reflect our continued focus on companies with durable brand strength and long-term alignment with consumer behavior.
Winners and Losers
Several holdings contributed positively to performance during the first quarter, supported by solid company execution, resilient demand, and the portfolio’s defensive positioning in certain areas.
Leading contributors included:
- Alto Ingredients Inc. (ALTO): +68.06%
- Altria Group Inc. (MO): +16.35%
- British American Tobacco (BTI): +4.76%
Conversely, the following holdings detracted from returns:
- Melco Resorts & Entertainment (MLCO): -24.97%
- Netease Inc. (NTES): -17.87%
- NVIDIA Corp. (NVDA): -6.48%
Top Holdings
| Ticker | Security Description | Portfolio Weight % |
| ALTO | ALTO INGREDIENTS INC | 6.94% |
| MCRI | MONARCH CASINO & RESORT INC | 5.03% |
| ABEV | AMBEV SA-ADR | 4.90% |
| PM | PHILIP MORRIS INTERNATIONAL | 4.81% |
| SGHC | SUPER GROUP SGHC LTD | 4.80% |
| BTI | BRITISH AMERICAN TOB-SP ADR | 4.80% |
| HSY | HERSHEY CO/THE | 4.77% |
| HEINY | HEINEKEN NV-SPN ADR | 4.75% |
| MO | ALTRIA GROUP INC | 4.73% |
| GLPI | GAMING AND LEISURE PROPERTIES | 4.65% |
As of 03.31.2026. Cash is not included. Holdings are subject to change.
Please see our complete Fund holdings at advisorshares.com/etfs/vice. The holdings details are updated each market day.
Market Update
The first quarter of 2026 saw a clear split in the consumer and broader equity markets. Early in the period, a rotation out of mega-cap technology into value and cyclical sectors gave some support to certain VICE holdings. That dynamic shifted in late February and March when geopolitical conflict in the Middle East drove oil prices sharply higher, adding pressure on costs and uncertainty to consumer spending. By quarter-end, the S&P 500 declined -4.33%, while large-cap growth fell nearly -10%. Defensive and value-oriented sectors, including tobacco and select consumer staples, held up significantly better, with some areas even posting positive returns.¹
Structural trends across VICE categories continued to develop. Traditional alcohol volumes faced ongoing pressure as moderation trends persisted, while ready-to-drink, non-alcoholic, and functional beverages captured more market share. The digital gaming and online betting sector maintained its long-term growth path. Tobacco performed consistently well, supported by its habit-driven demand and pricing power amid market volatility.²
Outlook
As we enter Q2 2026, the VICE portfolio’s emphasis on habit-driven and defensive categories such as tobacco, gaming, and select consumer brands continues to provide relative stability in a volatile macro environment. We remain focused on companies with strong brand moats, pricing power, and the ability to adapt to evolving consumer preferences in areas like digital entertainment and value offerings.
Sources:
1. Confluence Financial Partners. First Quarter 2026 Market Recap. April 2026.
2. Mordor Intelligence. Online Gambling Market Size & Share Analysis – Growth Trends and Forecast (2026–2031). January 2nd, 2026.
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Cheers,Past Commentary
Definitions:
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.
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.
Investing involves risks including possible loss of principal. Companies in the food, beverage and tobacco industry are very competitive and subject to a number of 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.
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 to change.
The views in this commentary are those of the portfolio manager and may 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.