VICE: 1st Quarter 2023 Portfolio Review
Performance
VICE had a positive performance in the 1st quarter of 2023, up 5.26% (NAV). It trailed the S&P 500, which was up 7.50% for the same period.
Portfolio
New Positions
VICE added new positions in Carlsberg (CABGY), CIA Cervecerias (CCU), Heineken (HEINY), and Kirin Holdings Company (KNBWY). There were several trades made throughout the quarter, including removing Boston Beer Company (SAM), Caesars Entertainment Inc. (CZR), and Churchill Downs (CHDN), Constellation Brands Inc. (STZ), Full House Resorts Inc. (FLL), Penn Entertainment Inc. (PENN), Red Rocks Resorts(RRR), Take-Two Interactive Software (TTWO), and Universal (UVV) from the portfolio.
Winners / Losers
The portfolio’s laggards were British American Tobacco (BTI) down 12.16% and RCI Hospitality (RICK) down 16.12%. Positive contributors to quarterly performance were CIA Cervecerias (CCU) up 19.13%, Everi Holdings Inc. (EVRI) up 19.51%, and LVMH Moet Hennessy Louis Vuitton (LVMUY) up 26.82%.
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. As this trend continues in 2023, international beverage companies were added to the portfolio.
Top Holdings
| Ticker | Security Description | Portfolio Weight % |
| TPB | TURNING POINT BRANDS INC | 6.39% |
| HSY | HERSHEY CO/THE | 5.13% |
| PRNDY | PERNOD RICARD SA – SPON ADR | 5.13% |
| BYD | BOYD GAMING CORP | 4.86% |
| CCU | CIA CERVECERIAS UNI-SPON ADR | 4.82% |
| MGPI | MGP INGREDIENTS INC | 4.82% |
| BUD | ANHEUSER-BUSCH INBEV-SPN ADR | 4.70% |
| CABGY | CARLSBERG AS-B-SPON ADR | 4.61% |
| VGR | VECTOR GROUP LTD | 4.47% |
| KNBWY | KIRIN HOLDINGS CO-SPON ADR | 4.39% |
As of 03.31.2023. 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.
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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.