VICE: 3rd Quarter 2021 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.

Commentary

The third quarter of 2021 was challenging for the AdvisorShares Vice ETF (NYSE: VICE). The Fund lost -9.94% on its net asset value (NAV) and -10.04% on its market price. VICE was still strongly positive for the trailing one-year period ending September 30, gaining 25.62% (NAV) and 25.58% (market price).  

New Positions:

One new position was added to the Fund during the third quarter: Vector Group Ltd (NYSE: VGR). We are always actively managing the Fund and occasionally increasing or decreasing position sizes as we see fit. A few positions were removed during the quarter. Last year’s #1 and #2 holdings Boston Beer (NYSE: SAM) and Turning Point Brands (NYSE: TPB) have been greatly reduced – as have gun manufacturers. The Fund currently has heavy weights in gaming and fast food.

Contributors / Detractors:

Top performers were from the gaming industry and some diverse alcohol and fast food companies. On the negative side, Boston Beer (SAM) was a drag on the fund after being a great performance for several years. Gun and psychedelics stocks were also quite negative.

As I often like to repeat, for those concerned about stock market negativity or volatility with continued COVID impacts or governmental policies, I’d like to suggest investing in those things that people seem to spend money on no matter what’s happening with the economy – vices like drinking, smoking, gambling, and gaming.

Top Holdings

Ticker Security Description Portfolio Weight %
BYD BOYD GAMING CORP 5.09%
VGR VECTOR GROUP LTD 4.64%
FLL FULL HOUSE RESORTS INC 4.47%
RICK RCI HOSPITALITY HOLDINGS INC 4.46%
RGR STURM RUGER & CO INC 4.43%
MCRI MONARCH CASINO & RESORT INC 4.40%
GLPI GAMING AND LEISURE PROPERTIE 4.30%
JACK JACK IN THE BOX INC 3.87%
VICI VICI PROPERTIES INC 3.80%
CZR CAESARS ENTERTAINMENT INC 3.54%

As of 09.30.2021. 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 11:50 am (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

 

* Recent Fund performance is attributable to unusually favorable conditions that are likely not sustainable, and such conditions might not continue to exist.

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.