VICE: 4th Quarter 2020 Portfolio Manager Review
Performance data quoted represents past performance and is no guarantee of future results. 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. For the fund’s most recent standardized and month-end performance, please click www.advisorshares.com/etfs/vice.
On November 1, 2020, the AdvisorShares Vice ETF changed its ticker from ACT to VICE and made a change to its investment strategy. See the prospectus for more information.
The fourth quarter of 2020 was very strong again for AdvisorShares Vice ETF (NYSE: VICE). The Fund gained 18.49% on its net asset value (NAV) and 18.85% on its market price. The S&P 500 was up 12.15% for the same period. For the full calendar year 2020, VICE gained 23.31% on its net asset value (NAV) and 23.67% on its market price while the S&P 500 returned 18.40%.
Some exciting changes in the Fund took place during the quarter. The AdvisorShares Vice ETF changed its ticker to “VICE” (it was “ACT”) and switched its listing venue to the NYSE. We also updated our principal investment strategy to allow us to add a gaming, food, and entertainment focus. Please see the Fund’s prospectus at https://etf.as/VICE.
The list is extensive, and heavily focused on electronic gaming and food:
(ATVI) Activision Blizzard Inc, (BYD) Boyd Gaming Corp, (EAT) Brinker International Inc, (CHUY) Chuy’s Holdings Inc, (TACO) Del Taco Restaurants Inc, (DPZ) Domino’s Pizza Inc, (GLPI) Gaming And Leisure Properties, (JACK) Jack In The Box Inc, (MCD) McDonald’s Corp, (MCRI) Monarch Casino & Resort Inc, (NVDA) Nvidia Corp, (PENN) Penn National Gaming Inc, (RUTH) Ruth’s Hospitality Group Inc, (TTWO) Take-Two Interactive Software, (HEAR) Turtle Beach Corp, (VICI) Vici Properties Inc, (WING) Wingstop Inc, (YUMC) Yum China Holdings Inc.
Contributors / Detractors
The Fund’s largest holding Boston Beer (NYSE: SAM) is one that I must always talk about. It was up again, but only 12.56% in the 4th quarter, after gaining over 64% for the prior 3-month period. That’s’ fine with me. It’s been a great performer for a long time. RCI Hospitality Holdings (NASDAQ: RICK) gained over 93%. Tobacco (and cannabis-related) company Turning Point Brands (NYSE: TPB) gained over 59%. New holdings Penn National gaming (NASDAQ: PENN) was up 17% in the 4th quarter, Activision Blizzard (NASDAQ: ATVI) up 23%, Take Two Interactive (NASDAQ: TTWO) up 34%, and headphone maker Turtle Beach Corp (NASDAQ: HEAR) was up 31%.
On the negative side, a couple small losers – Molson Coors (NYSE: TAP) a small holding down 1.52%, and YUM China (NYSE: YUMC) down 0.22%.
For those concerned about stock market negativity or volatility with new Presidential policies, I’d like to suggest investing in those things that citizens seem to spend money on no matter what’s happening with the economy or politics…I mean vices like drinking, smoking, gambling and gaming.
|Ticker||Security Description||Portfolio Weight %|
|SAM||BOSTON BEER COMPANY INC-A||10.14%|
|TPB||TURNING POINT BRANDS INC||6.51%|
|LVMUY||LVMH MOET HENNESSY-UNSP ADR||5.45%|
|EAT||BRINKER INTERNATIONAL INC||5.12%|
|HEAR||TURTLE BEACH CORP||5.06%|
|ATVI||ACTIVISION BLIZZARD INC||4.85%|
|MCRI||MONARCH CASINO & RESORT INC||4.15%|
|PENN||PENN NATIONAL GAMING INC||4.06%|
|TACO||DEL TACO RESTAURANTS INC||3.78%|
As of 12.31.2020. Cash is excluded.
Please see our complete Fund holdings at advisorshares.com/etfs/vice. The holdings details are updated each market day.
Past Manager Commentary