VICE: 1st Quarter 2022 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.

Performance

The AdvisorShares Vice ETF (NYSE: VICE) was negative in the first quarter of 2022, as was the S&P 500. VICE has been positive the quarter before in Q4, 2021.  AdvisorShares Vice ETF was down -8.43% on its net asset value (NAV) and -8.64% on its market price.

Portfolio

New Positions

Alcohol company MGP Ingredients (NASDAQ: MGPI) was actually added on 12/30/21 and casino gaming technology company Everi Holdings Inc. (NASDAQ: EVRI) was added in early 2022. 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, entertainment and alcohol.

We sidestepped recent losses by Wingstop (NASDAQ: WING) by removing it from the portfolio early in the quarter.

Contributors / Detractors

Top performers included Monarch Casino (NASDAQ: MCRI) up 17.96% and Activision Blizzard (NASDAQ: ATVI) up 20.41% on its buyout news. Other contributors were old-school, conservative “vice stocks” Molson Coors (NYSE: TAP) up 16.03%, British American Tobacco (NYSE: BTI) up 14.62%, and Altria (NYSE: MO) up12.15%.

Among losers, Red Rock Resorts (NASDAQ: RRR) and Full House Resorts (NASDAQ FLL), both lost after being strong gainers in Q4 2021. RRR was down -21.02% and FLL lost -20.64% Penn National Gaming (NASDAQ: PENN) was a continued drag down over 18%, but a smaller holding.

Top Holdings

Ticker Security Description Portfolio Weight %
RICK RCI HOSPITALITY HOLDINGS INC 5.71%
BYD BOYD GAMING CORP 5.40%
LVMUY LVMH MOET HENNESSY-UNSP ADR 5.19%
MCRI MONARCH CASINO & RESORT INC 5.14%
DEO DIAGEO PLC-SPONSORED ADR 4.91%
GLPI GAMING AND LEISURE PROPERTIE 4.69%
EVRI EVERI HOLDINGS INC 4.63%
RRR RED ROCK RESORTS INC-CLASS A 4.56%
PRNDY PERNOD RICARD SA – SPON ADR 4.47%
CHUY CHUY’S HOLDINGS INC 4.46%

As of 03.31.2022. 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.

 

Cheers,

Dan Ahrens
AdvisorShares
AdvisorShares Vice ETF (VICE) Portfolio Manager

 

Past Manager Commentary

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.