VICE: 4th Quarter 2021 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.

Commentary

The fourth quarter of 2021 was positive for AdvisorShares Vice ETF (NYSE: VICE) as it gained 2.45% on its net asset value (NAV) and 2.69% on its market price.

New Positions:

Only one new position was added to the Fund during the third quarter: MGP Ingredients (NASDAQ: MGPI). We are constantly managing the Fund and occasionally increasing or decreasing position sizes as we see fit. The Fund currently has heavy weights in gaming, fast food, and alcohol

Contributors / Detractors:

Top performers were again from the gaming industry and some diverse alcohol and fast-food companies. Del Taco (NASDAQ: TACO) gained 43% on buyout news. Red Rock Resorts (NASDAQ: RRR) and Full House Resorts (NASDAQ FLL) were each up 14%, and Constellation Brands (NYSE: STZ) was up 19%. Tobacco’s Vector Group (NYSE: VGR) was up nicely at 38%.

Among losers, DraftKings (NASDAQ: DKNG) and Penn National Gaming (NASDAQ: PENN) were significant drags to the portfolio. DKNG was down 42% and is now the Fund’s smallest holding. PENN lost 28%.

As I often like to repeat, for those concerned about stock market negativity or volatility with continued COVID impacts or governmental policies, I’d like to suggest investing in those things that people seem to spend money on no matter what’s happening with the economy – vices like drinking, smoking, gambling, and gaming.

Top Holdings

Ticker Security Description Portfolio Weight %
IGT INTERNATIONAL GAME TECHNOLOG 5.67%
FLL FULL HOUSE RESORTS INC 5.03%
RICK RCI HOSPITALITY HOLDINGS INC 5.00%
TACO DEL TACO RESTAURANTS INC 4.83%
RRR RED ROCK RESORTS INC-CLASS A 4.73%
GLPI GAMING AND LEISURE PROPERTIE 4.46%
MGPI MGP INGREDIENTS INC 4.10%
PRNDY PERNOD RICARD SA – SPON ADR 4.01%
VICI VICI PROPERTIES INC 3.97%
WING WINGSTOP INC 3.30%

As of 12.31.2021. Cash is excluded. Subject to change.

Please see our complete Fund holdings at advisorshares.com/etfs/vice. The holdings details are updated each market day.

Tune in to AdvisorShares’ Alpha Nooner Show streaming live each regular weekday starting at 11:50 am (East Coast time), where I am a guest almost every Tuesday to get updates on the funds. Find it on most major social media platforms or visit our the AdvisorShares “Events” webpage for more information.

 

Cheers,

Dan Ahrens
AdvisorShares
AdvisorShares Vice ETF (VICE) Portfolio Manager

 

Past Manager Commentary

* Recent Fund performance is attributable to unusually favorable conditions that are likely not sustainable, and such conditions might not continue to exist.

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, 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.