VICE: 2nd Quarter 2024 Portfolio Review
Portfolio
Performance
During the second quarter of 2024, VICE experienced negative performance. VICE’s Net Asset Value (NAV) showed a decline of 3.45%, lagging the positive return of the S&P 500, which was up 4.28% for the same quarter.
New Positions
VICE initiated new holdings in Boston Beer Company Inc. (SAM) with the addition of 900 shares, Huya Inc. (HUYA) with 84,016 shares added, and Texas Roadhouse Inc. (TXRH) with the addition of 1,900 shares. In addition to these new holdings, VICE executed several trades, which involved removing positions in Dave & Buster’s Entertainment (PLAY), Everi Holdings Inc. (EVRI), Netease Inc. (NTES), Vector group Ltd. (VGR), and International Game Technology (IGT).
Winners / Losers
During the first quarter, the portfolio saw notable contributions from NVDIA Corp. (NVDA), which surged by 36.74%, Wingstop Inc. (WING) also performed well, rising by 15.42%, and El Pollo Loco Holdings Inc. (LOCO) gained 16.12%.
However, there were significant underperformers in the portfolio as well. Dave & Buster’s Entertainment Inc. (PLAY) declined by 33.55%. Chuy’s Holdings Inc. (CHUY) and Molson Coors Beverage Co. (TAP) also saw declines, with CHUY down by 23.15% and TAP down 23.78%.
Top Holdings
| Ticker | Security Description | Portfolio Weight % |
| NVDA | NVIDIA CORP | 8.06% |
| TPB | TURNING POINT BRANDS INC | 6.74% |
| WING | WINGSTOP INC | 5.54% |
| LOCO | EL POLLO LOCO HOLDINGS INC | 4.74% |
| HUYA | HUYA INC-ADR | 4.71% |
| TXRH | TEXAS ROADHOUSE INC | 4.64% |
| MGM | MGM RESORTS INTERNATIONAL | 4.61% |
| EA | ELECTRONIC ARTS INC | 4.60% |
| ACEL | ACCEL ENTERTAINMENT INC | 4.57% |
| RACE | FERRARI NV | 4.46% |
As of 6.30.2024. 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.
Market Update
In Q2 2024, the “vice” products sector, including alcohol, tobacco, gaming, and gambling, showed a stable yet mixed performance. Alcohol sales remained strong, driven by premiumization and the growing popularity of craft beverages, despite regulatory pressures and health trends. The tobacco industry faced declining cigarette sales, offset by increased demand for e-cigarettes and alternative nicotine products. Gaming and gambling sectors saw robust growth, fueled by the continued expansion of online platforms and the legalization of sports betting in new regions. Overall, the sector demonstrated resilience, balancing growth opportunities with evolving consumer preferences and regulatory landscapes.
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Cheers,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.