VICE: 2nd Quarter 2021 Portfolio Manager Review
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 second quarter of 2021 was another positive period for AdvisorShares Vice ETF (NYSE: VICE). The Fund gained 4.71% on its net asset value (NAV) and 4.43% on its market price. While VICE has outpaced the S&P 500 Index year-to-date and for the one-year period ending June 30, the S&P 500 had a strong quarter of 8.55%. For the full year July 1, 2020, through June 30, 2021, VICE gained 59.98% on its NAV and 60.05% on market price while the S&P 500 returned 40.79%.*
As stated previously, the Fund underwent significant changes in the 4th quarter of 2020 with new ticker VICE and listing on the NYSE. We edited the Fund’s Principal Investment Strategy to add more gaming, food, and entertainment securities.
While we are always actively managing the Fund and occasionally increasing or decreasing position sizes as we see fit, some new positions added to the portfolio during the quarter included psilocybin biotech company Mind Medicine (MindMed) Inc. (NASDAQ: MNMD), plus two gun manufacturers Smith & Wesson Brands, Inc. (NASDAQ: SWBI) and Sturm, Ruger & Company, Inc. (NYSE: RGR). SWBI and RGR are both top 5 holdings as of June 30.
As we manage the portfolio regularly, investors should notice that previous #1 and #2 holdings Boston Beer (NYSE: SAM) and Turning Point Brands (NYSE: TPB) have been reduced.
Contributors / Detractors:
The two new gun manufacturers were also among the Fund’s best contributors. Smith & Wesson gained over 58% for the quarter and Sturm Ruger gained over 13%. The leading contributor from the alcohol area was The Duckhorn Portfolio (NYSE: NAPA), up more than 31%. As of quarter end June 30, gaming headphone maker Turtle Beach Corp. (NASDAQ: HEAR) is the Fund’s largest position. It gained over 19% in the 2nd quarter.
Regarding the detractors, at least there were fewer losers than winners during the quarter. Those of note include a solid gainer in the previous quarter, Penn National Gaming (NASDAQ: PENN) that lost over 27%. Since then, we’ve added to that position. New holding MindMed was a loser down more than 23% for the quarter. Significantly, one of our traditional largest holdings Boston Beer lost over 15% in the quarter.
As I often like to repeat, for those concerned about stock market downturns or volatility with continued COVID impacts or governmental policies, VICE seeks to invest in those things people historically seem to spend money on regardless of what’s happening in the economy – in our experience vices like drinking, smoking, gambling, and gaming.
|Ticker||Security Description||Portfolio Weight %|
|HEAR||TURTLE BEACH CORP||6.37%|
|SWBI||SMITH & WESSON BRANDS INC||6.25%|
|SAM||BOSTON BEER COMPANY INC-A||5.96%|
|RGR||STURM RUGER & CO INC||4.47%|
|CHUY||CHUY’S HOLDINGS INC||4.34%|
|IGT||INTERNATIONAL GAME TECHNOLOG||4.23%|
|RICK||RCI HOSPITALITY HOLDINGS INC||3.89%|
|GLPI||GAMING AND LEISURE PROPERTIE||3.88%|
|FLL||FULL HOUSE RESORTS INC||3.82%|
|VICI||VICI PROPERTIES INC||3.74%|
As of 06.30.2021. 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