VICE: 1st 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 first quarter of 2021 was very strong again for AdvisorShares Vice ETF (NYSE: VICE). The Fund gained 12.41% on its net asset value (NAV) and 12.47% on its market price. The S&P 500 was only up 6.17% for the period. For the full year April1, 2020 through March 31, 2021, VICE gained 82.09% on its NAV and 83.42% on market price while the S&P 500 returned 56.35%. Remember that on April 1, 2020, the overall market was still near COVID-induced lows.
Following Fund changes we made in the 4th quarter of 2020 – changed the ticker to VICE, moved to the NYSE, and expanded the Fund’s principal investment strategy to add gaming, food, and an entertainment focus – we have continued to add new positions.
In the 1st quarter, we added Psilocybin company COMPASS Pathways plc (NASDAQ: CMPS), wine maker Duckhorn Portfolio, Inc. (NYSE: NAPA), and multiple gaming-related companies Draft Kings Inc. (NASDAQ: DKNG), Caesars Entertainment, Inc. (NASDAQ: CZR), Gaming and Leisure Properties, Inc, (NASADQ: GLPI), Red Rock Resorts, Inc. (NASDAQ: RRR), and Full House Resorts, Inc. (NASDAQ: FLL).
Contributors / Detractors:
The Fund’s largest holding Boston Beer (NYSE: SAM) is one that I must always talk about. It was up yet again, another 21.32% for the 1st quarter. It’s been a terrific performer for a long time. The second largest holding, Turning Point Brands (NYSE: TPB), was up 17.20%. It’s officially a tobacco company, but not viewed as “big tobacco” and carrying a heavy cannabis focus. The leading contributor from the restaurant and bar area was Chuy’s Holdings – a Texas-based stock I feel few people know about – which gained 67.31% for the quarter. They also happen to have an excellent happy hour. Headphone maker Turtle Beach Corp (NASDAQ: HEAR) was up another 23.76% in Q1. Casino gaming is also a solid contributor with Penn National Gaming (NASDAQ: PENN) +21%, Boyd Gaming (NYSE: BYD) + 37%, Full House Resorts (NASDAQ: FLL) + 35%, and Red Rock Resorts (NASDAQ: RRR) + 26%, all adding solid gains.
On the negative side, there were fewer losers than winners and most were smaller weighted positions. COMPASS Pathways plc (NASDAQ: CMPS) was down 28% for the full quarter. Take Two Interactive (NASDAQ: TTWO) -14%. A handful of alcohol companies were down in Q1, Brown-Forman (NYSE: BF.b) -12%, The Duckhorn Portfolio (NYSE: NAPA) –13%, and Anheuser-Busch InBev (NYSE: BUD) –10%.
Like I said last quarter, 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||7.38%|
|TPB||TURNING POINT BRANDS INC||5.99%|
|HEAR||TURTLE BEACH CORP||5.57%|
|EAT||BRINKER INTERNATIONAL INC||5.02%|
|JACK||JACK IN THE BOX INC||4.57%|
|PENN||PENN NATIONAL GAMING INC||4.38%|
|GLPI||GAMING AND LEISURE PROPERTIE||3.72%|
|VICI||VICI PROPERTIES INC||3.56%|
|TACO||DEL TACO RESTAURANTS INC||3.56%|
|FLL||FULL HOUSE RESORTS INC||3.43%|
As of 03.31.2021. Cash is excluded.
Please see our complete Fund holdings at advisorshares.com/etfs/vice. The holdings details are updated each market day.