VICE: 4th Quarter 2022 Portfolio Manager Review
Performance
For the 4th quarter 2022, VICE was up 13.91%, beating the S&P 500 which was up 7.56%.
Portfolio
New Positions
VICE added International Game Technology (IGT) to the portfolio. There were several trades made throughout the quarter, including decreasing positions in Full House Resorts (FLL), Dave & Buster’s Entertainment (PLAY), and Everi Holdings (EVRI), while adding to Boyd Gaming (BYD) and Monarch Casino & Resorts (MCRI).
Winners / Losers
The portfolio’s laggards were Constellation Brands (STZ), Everi Holdings (EVRI), and Take-Two Interactive (TTWO). Positive contributors to performance were RCI Hospitality (RICK), Anheuser-Busch (BUD), Full House Resorts (FLL), Inspired Entertainment (INSE), Monarch Casino & Resort (MCRI), Vector Group (VGR), and International Gaming Technology (IGT), all up over 30% for the quarter.
Market Update
“Vice” products earned their notoriety as a defensive sector in 2022 by outperforming the broader market as consumers maintained their consumption of the goods and services, despite rising prices. We believe this trend will continue in 2023 as demand for and repeated purchases of vice-related products remains steady.
Top Holdings
| Ticker | Security Description | Portfolio Weight % |
| MGPI | MGP INGREDIENTS INC | 6.46% |
| RICK | RCI HOSPITALITY HOLDINGS INC | 6.12% |
| PRNDY | PERNOD RICARD SA – SPON ADR | 4.69% |
| IGT | INTERNATIONAL GAME TECHNOLOGY | 4.66% |
| BYD | BOYD GAMING CORP | 4.61% |
| MCRI | MONARCH CASINO & RESORT INC | 4.48% |
| BTI | BRITISH AMERICAN TOB-SP ADR | 4.18% |
| GLPI | GAMING AND LEISURE PROPERTIES | 3.98% |
| RRR | RED ROCK RESORTS INC-CLASS A | 3.73% |
| IMBBY | IMPERIAL BRANDS PLC-SPON ADR | 3.53% |
As of 12.31.2022. 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 12:00 pm (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.
Dan Ahrens
AdvisorShares
AdvisorShares Vice ETF (VICE) Portfolio Manager
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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.
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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.