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ADVISORSHARES TRUST

4800 Montgomery Lane

Suite 150

Bethesda, Maryland 20814

www.advisorshares.com

1.877.843.3831

 

 

 

 

 

 

 

 

 

 

Annual Report

 

June 30, 2023

 

 

 

 

TABLE OF CONTENTS

 

Letter from the CEO of AdvisorShares Investments, LLC   1
Hypothetical Growth of a $10,000 Investment, Historical Performances   3
Shareholder Expense Examples   47
Schedules of Investments    
AdvisorShares Alpha DNA Equity Sentiment ETF (SENT)   50
AdvisorShares Dorsey Wright ADR ETF (AADR)   54
AdvisorShares Dorsey Wright FSM All Cap World ETF (DWAW)   57
AdvisorShares Dorsey Wright FSM US Core ETF (DWUS)   59
AdvisorShares Dorsey Wright Short ETF (DWSH)   61
AdvisorShares Dorsey Wright Small Company ETF (DWMC)
[formerly, AdvisorShares Dorsey Wright Micro-Cap ETF (DWMC)]
  65
AdvisorShares Focused Equity ETF (CWS)   70
AdvisorShares Gerber Kawasaki ETF (GK)   72
AdvisorShares Hotel ETF (BEDZ)   75
AdvisorShares Insider Advantage ETF (SURE)
[formerly, AdvisorShares DoubleLine Value Equity ETF (DBLV)]
  77
AdvisorShares Let Bob AI Powered Momentum ETF (LETB)   81
AdvisorShares MSOS 2x Daily ETF (MSOX)   83
AdvisorShares Newfleet Multi-Sector Income ETF (MINC)   86
AdvisorShares Poseidon Dynamic Cannabis ETF (PSDN)   93
AdvisorShares Psychedelics ETF (PSIL)   96
AdvisorShares Pure Cannabis ETF (YOLO)   98
AdvisorShares Pure US Cannabis ETF (MSOS)   101
AdvisorShares Q Dynamic Growth ETF (QPX)   105
AdvisorShares Ranger Equity Bear ETF (HDGE)   107
AdvisorShares Restaurant ETF (EATZ)   111
AdvisorShares STAR Global Buy-Write ETF (VEGA)   113
AdvisorShares Vice ETF (VICE)   115
Statements of Assets and Liabilities   117
Statements of Operations   123
Statements of Changes in Net Assets   129
Financial Highlights   140
Notes to Financial Statements   151
Report of Independent Registered Public Accounting Firm   178
Board Review of Investment Advisory and Sub-Advisory Agreements   181
Board of Trustees and Officers (Unaudited)   185
Supplemental Information   187

 

 

 

 

ADVISORSHARES TRUST

Letter from the CEO of AdvisorShares Investments, LLC

 

June 30, 2023

 

 

For our fiscal year ended June 30, 2023, equity markets experienced a significant comeback late in the fiscal year. This was despite the ongoing war in Ukraine, a continuing recovery from COVID-19 lockdowns, soaring inflation, and rising consumer prices. In the US, the market mostly struggled through the second half of 2022, recovering early in 2023 and providing steady gains throughout the first half of 2023. Across the board, most asset classes were up for the fiscal year, including gold, international equities, and Bitcoin. One area that struggled was the fixed income market, as we saw the Federal Reserve aggressively increase interest rates, driving yields higher and bond prices lower. While this was difficult for bond investors, thankfully, it appears that these interest rate increases are achieving the goal of easing inflation.

 

Certainly, this year, our most challenging investment category was cannabis. Investors continue to eagerly anticipate federal cannabis reforms. Initially, regulatory changes were expected to occur early in the Biden presidency — given the President’s proclamation during the primaries that he would legalize cannabis for medical use, decriminalize cannabis possession, and release incarcerated non-violent cannabis offenders. When that didn’t occur, cannabis reform hopes shifted to the 2022 lame duck session of Congress as Democrats regained control of the House of Representatives. The legislation that many investors are focused on — the SAFE Banking Act — would make it easier for banks to serve legal cannabis businesses. Currently, due to cannabis’ illegal status at the federal level, it is very difficult for legally operating cannabis companies to find banking support. Unfortunately and despite strong support by the House of Representatives, SAFE Banking legislation was not presented for a Senate vote before the 2023 summer recess. As a result of the Senate’s inaction, we saw a significant decline in the prices of Canadian cannabis stocks and outflows in the AdvisorShares Pure US Cannabis ETF (ticker: MSOS). Thankfully, there is continued work and discussion in Congress focused on federal changes in policy regarding cannabis, and we remain optimistic that we will see those changes soon. However, there is no guarantee that these changes will happen as quickly as we would like, or if at all.

 

It is important to understand our lineup of ETFs and their underlying investment strategies are a bit unique, and we are not likely to move in tandem with the broader markets. For example, while equity markets rose significantly in the first half of 2023, most of our assets in the trust are focused on cannabis stocks, which resulted in an overall decline in our assets under management. However, given the uniqueness of our investment strategies, we have not seen a meaningful reduction in our outstanding shares. This demonstrates to us that our investors are taking a long-term, optimistic view of our ETF strategies. We are also fortunate to have some of our ETFs rank highly in their respective investment categories, which as we know is not an easy feat for active managers.

 

While it has been a challenging year for the firm, we remain incredibly thankful to our shareholders and appreciate the trust and confidence you have in us. We wish you nothing but health, happiness, and prosperity.

 

Sincerest regards,

Noah Hamman

CEO, AdvisorShares Investments

 

1

 

 

ADVISORSHARES TRUST

Letter from the CEO of AdvisorShares Investments, LLC (Continued)

 

June 30, 2023

 

 

Bitcoin is a cryptocurrency, a virtual currency designed to act as money and a form of payment outside the control of any one person, group, or entity, thus removing the need for third-party involvement in financial transactions.

 

For more information on AdvisorShares ETFs, including performance and holdings, please visit www.advisorshares.com.

 

Investing involves risk including possible loss of principal. The Advisor’s judgment about the markets, the economy, or companies may not anticipate actual market movements, economic conditions or company performance, and these factors may affect the return on your investment. The prices of equity securities rise and fall daily. Foreign investing involves special risks, such as risk of loss from currency fluctuation or political or economic uncertainty. Investments in emerging or offshore markets are generally less liquid and less efficient than investments in developed markets and are subject to additional risks, such as risks of adverse governmental regulation and intervention or political developments.

 

There is no guarantee the Advisor’s investment strategy will be successful. When models and data prove to be incorrect or incomplete, any decisions made in reliance thereon expose the Fund to potential risks. In addition, the use of predictive models has inherent risk. Because predictive models are usually constructed based on historical data supplied by third parties, the success of relying on such models may depend heavily on the accuracy and reliability of the supplied historical data. The Fund’s particular allocations may have a significant effect on the Fund’s performance. Allocation risk is the risk that the selection of ETFs and the allocation of assets among such ETFs will cause the Fund to underperform other funds with a similar investment objective that do not allocate their assets in the same manner or the market as a whole. For a list of the asset class specific risks please see the prospectus.

 

The views in this report were those of the Advisor’s CEO as of June 30, 2023, and may not reflect his views on the date that this report is first published or anytime thereafter. These views are intended to assist shareholders in understanding their investments and do not constitute investment advice.

 

2

 

 

ADVISORSHARES TRUST

AdvisorShares Alpha DNA Equity Sentiment ETF (SENT)

 

The AdvisorShares Alpha DNA Equity Sentiment ETF’s (ticker: SENT) performance for the 12-month period ended June 30, 2023 was +15.89% (NAV) which is above average for hedged equity focused funds. Hedged equity funds are designed to provide index like returns from long equity and bearish returns from hedges that protect against the downside. When markets go up materially, you expect the hedge to drag the overall returns down. When markets go down, you expect the hedges to offer gains to the portfolio and generate upside potential when compared to the indices.

 

During the 12-month period ending June 30, 2023, the broad market indices were up. The S&P 500 Index (large cap — market cap weighted), Russell 3000 Index (all cap — market cap weighted), and Russell 2000 Index (small cap — market cap weighted) produced one-year returns ending June 30, 2023 of +19.59%, +18.95%, and +12.31%, respectively. The equal weight S&P 500 Index delivered just over +13.5%, demonstrating how the largest mega-cap companies of the market-cap weighted S&P 500 heavily contributed to performance.

 

SENT’s equity portfolio is equally weighted and all cap — about 30% large cap, 35% mid-cap, and 35% small cap (with modest periodic changes) — and employs a hedging strategy. For the previous 12 months ending June 30, 2023, SENT outperformed the equal weight S&P 500 and was just below the market-cap weighted S&P 500’s returns due to the cost of SENT’s hedging program.

 

The hedges employed in SENT’s strategy were particularly expensive during this time frame as the 1st half of 2022 saw a -20% decline in the broad markets, causing volatility to spike and driving up the cost of hedging. The 2nd half also had several months of volatile market performance which kept hedging costs elevated as a result.

 

 

The Russell 2000 Index measures the performance of the 2,000 smaller companies included in the Russell 3000 Index.

The Russell 3000 Index measures the performance of the largest 3,000 US companies representing approximately 98% of the investable US equity market.

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.

 

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT

For the period February 2, 2021* to June 30, 2023

 

 

3

 

 

HISTORICAL PERFORMANCE

Total Return as of June 30, 2023

 

          Since  
          Inception  
    1 Year     2/2/2021*  
AdvisorShares Alpha DNA Equity Sentiment ETF NAV     15.89 %     -2.05 %
AdvisorShares Alpha DNA Equity Sentiment ETF Market Price**     16.26 %     -2.08 %
Russell 3000 Index     18.95 %     5.91 %

 

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. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 1.01% and the net expense ratio is 1.01%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 1.35%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

 

 
* Commencement of operations.
** The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund.

 

The Russell 3000 Index measures the performance of the largest 3,000 US companies representing approximately 98% of the investable US equity market.

 

4

 

 

ADVISORSHARES TRUST

AdvisorShares Dorsey Wright ADR ETF (AADR)

 

The AdvisorShares Dorsey Wright ADR ETF (ticker: AADR) finished the fiscal year ended June 30, 2023 behind its benchmark, the MSCI EAFE Index. The latter half of 2022 was especially volatile as markets struggled with slowing growth, high inflation, and geopolitical tensions in Russia/Ukraine. The first half of 2023 was a much better period by comparison, but a pronounced laggard rally (where previously poor performing stocks become x-the new darlings) caused a lag in the portfolio.

 

The second half of 2022 saw international markets perform solidly despite the issues mentioned above. The portfolio outperformed in Q3 as many of the more defensive names in the portfolio helped as markets declined at the end of the quarter. The market bottomed in October though, and that is when the laggard rally began with developed European equities generating explosive returns as fears revolving around the Russian War began to subside. Laggard rallies are always difficult for a momentum portfolio as we invest in stocks with positive relative strength, while laggards are the opposite. The same situation affected returns in Q1 2023, but we saw signs the portfolio was starting to right itself in Q2 2023 as the portfolio outperformed once again.

 

Despite the fund’s underperformance, we feel it should be short-lived and that AADR is well positioned as the world settles into the new normal and recently established trends begin to show longevity.

 

 

The MSCI EAFE Index is an unmanaged free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada.

 

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT

For the period June 30, 2013 to June 30, 2023

 

 

5

 

 

HISTORICAL PERFORMANCE

Total Return as of June 30, 2023

 

    1 Year     3 Year     5 Year     10 Year  
AdvisorShares Dorsey Wright ADR ETF NAV     4.69 %     -0.75 %     -0.35 %     5.20 %
AdvisorShares Dorsey Wright ADR ETF Market Price*     4.55 %     -0.61 %     -0.33 %     5.19 %
MSCI EAFE Index (Net)     18.77 %     8.93 %     4.39 %     5.41 %

 

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. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 1.00% and the net expense ratio is 1.00%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 1.10%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

 

 
* The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the Nasdaq and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund.

 

The MSCI EAFE Index is an unmanaged free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada. One cannot invest directly in an index.

 

6

 

 

ADVISORSHARES TRUST

AdvisorShares Dorsey Wright FSM All Cap World ETF (DWAW)

 

During the fiscal year ended June 30, 2023, the AdvisorShares Dorsey Wright FSM All Cap World ETF (ticker: DWAW) lagged its benchmark, the MSCI ACWI Index. Much of the underperformance took place in the first quarter of 2023 as growth, an area DWAW underweighted entering the year, vastly outpaced value. In May, DWAW adjusted its growth position to take advantage of the high relative strength in large cap growth and picked up non-US developed market exposure. The strong start by international developed equities slowed in the second quarter which dragged down DWAW despite the fund picking up large cap growth in May. Most momentum and relative strength strategies have struggled so far in 2023 due to the quick change in leadership that began in late 2022 and became more entrenched early in 2023.

 

There has been plenty of commentary on the narrowness of market performers this year with just a few names producing most of the major indices’ returns this year. These names also happened to be some of the biggest losers in 2022, so relative strength strategies like DWAW had little to no exposure entering 2023.

 

Looking ahead, the growth theme has shown no sign of slowing down yet. However, there are still worries that the reliance on so few names, coupled with exceptionally strong performances, will not be able to carry over into the second half. Nonetheless, the market has begun to broaden out on the domestic front over the last month and a half which is a welcome sign moving forward. Even though DWAW picked up some international exposure, it did it at a time when relative strength had peaked. It would not be a shock if this was changed in August, the next evaluation period, if the most recent trends persist.

 

 

The MSCI All Country World Index (Net) is an unmanaged free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets.

 

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT

For the period December 26, 2019* to June 30, 2023

 

 

7

 

 

HISTORICAL PERFORMANCE

Total Return as of June 30, 2023

 

                Since  
                Inception  
    1 Year     3 Year     12/26/2019*  
AdvisorShares Dorsey Wright FSM All Cap World ETF NAV     4.63 %     4.74 %     7.38 %
AdvisorShares Dorsey Wright FSM All Cap World ETF Market Price**     4.71 %     4.77 %     7.40 %
MSCI All Country World Index (ACWI)     16.53 %     10.99 %     7.32 %

 

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. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 1.28% and the net expense ratio is 1.28%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 0.99%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

 

 
* Commencement of operations.
** The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the Nasdaq and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund.

 

The MSCI All Country World Index (Net) is an unmanaged free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. One cannot invest directly in an index.

 

8

 

 

ADVISORSHARES TRUST

AdvisorShares Dorsey Wright FSM US Core ETF (DWUS)

 

During the fiscal year ended June 30, 2023, the AdvisorShares Dorsey Wright FSM U.S. Core ETF (ticker: DWUS) lagged its benchmark, the S&P 500 Index. Much of the underperformance took place in the first quarter of 2023 as growth, an area DWUS was underweight, vastly outpaced value. In May, DWUS adjusted its growth position to take advantage of the high relative strength in large cap growth. Most momentum and relative strength strategies have struggled so far in 2023 due to the quick change in leadership that began in late 2022 and became more entrenched early in 2023.

 

There has been plenty of commentary on the narrowness of market performers this year with just a few names producing most of the major indices’ returns this year. These names also happened to be some of the biggest losers in 2022, so relative strength strategies like DWUS had little to no exposure to them entering 2023. This dampened DWUS’s performance going into 2023. However, the portfolio adjusted and added exposure to the new strength in growth that led DWUS to perform much better in the second quarter.

 

Looking ahead, the growth theme has shown no signs of slowing down yet. However, there are still worries that the reliance on so few names, coupled with exceptionally strong performances, will not be able to carry over into the second half. Nonetheless, the market has begun to broaden over the last month and a half, which is a welcome sign moving forward. While returns may not be as strong as they were in the first half, there have not been any signs that stocks will reverse significantly lower, giving a cautiously optimistic picture for the rest of the year.

 

 

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.

 

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT

For the period December 26, 2019* to June 30, 2023

 

 

9

 

 

HISTORICAL PERFORMANCE

Total Return as of June 30, 2023

 

                Since  
                Inception  
    1 Year     3 Year     12/26/2019*  
AdvisorShares Dorsey Wright FSM US Core ETF NAV     15.38 %     10.69 %     11.90 %
AdvisorShares Dorsey Wright FSM US Core ETF Market Price**     15.61 %     10.74 %     11.88 %
S&P 500 Index     19.59 %     14.60 %     11.27 %

 

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. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 1.17% and the net expense ratio is 1.17%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 0.99%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

 

 
* Commencement of operations.
** The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the Nasdaq and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund.

 

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.

 

10

 

 

ADVISORSHARES TRUST

AdvisorShares Dorsey Wright Short ETF (DWSH)

 

The AdvisorShares Dorsey Wright Short ETF (ticker: DWSH) finished the fiscal year ended June 30, 2023, ahead of its benchmark, the inverse of the S&P 500 Index. The market was close to a bottom at the start of the fiscal year but managed to end the year higher despite the bear market in US equities in 2022.

 

In the second half of 2022, US Equity markets rose slightly, but endured high volatility as the bear market searched for a bottom. This kind of volatility is tough for a relative strength strategy, and thus we saw the portfolio underperform during this time as leadership changed after the October bottom. In the first half of 2023, our shorts were able to lose less than the S&P 500 gained. Much of this came from shorting high-profile decliners such as Silicon Valley Bank and Signature Bank.

 

Our asset class rankings show a much-improved picture for equities in 2023, meaning the short fund will have a tougher time going forward, but we still feel like the use of the product as a hedge continues to remain attractive when needed as relative strength can guide the portfolio toward individual names showing pronounced weakness and thus potential outperformance.

 

 

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.

 

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT

For the period July 10, 2018* to June 30, 2023

 

 

11

 

 

HISTORICAL PERFORMANCE

Total Return as of June 30, 2023

 

                Since  
                Inception  
    1 Year     3 Year     7/10/2018*  
AdvisorShares Dorsey Wright Short ETF NAV     -16.31 %     -23.13 %     -18.94 %
AdvisorShares Dorsey Wright Short ETF Market Price**     -16.27 %     -23.26 %     -18.99 %
S&P 500 Index     19.59 %     14.60 %     11.75 %

 

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. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 2.69% and the net expense ratio is 2.69%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 1.25%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

 

 
* Commencement of operations.
** The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the Nasdaq and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund.

 

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.

 

12

 

 

ADVISORSHARES TRUST

AdvisorShares Dorsey Wright Small Company ETF (DWMC)

 

The AdvisorShares Dorsey Wright Small Company ETF (ticker: DWMC) finished the fiscal year ended June 30, 2023, ahead of its benchmark, the Russell Micro-Cap Index. Although returns were positive, the path to achieving those returns was fraught with peril. Small/Micro cap stocks were some of the worst hit areas during the many declines, but relative strength was able to guide us toward names that outperformed.

 

Microcaps rallied strongly off the June 2022 bottom with indications we were heading into a new bull market. It can be tough for a relative strength strategy to perform well off a market bottom as leadership typically changes, and because of that we saw DWMC lag the benchmark during the rally. The September/October decline though was a continuation of the previous downtrend established earlier in the year, and DWMC was able to outperform during the decline as less sensitive areas of the market held up better. Luckily, the October lows proved more durable, and the ensuing rally saw DWMC outpace the benchmark through February 2023. The Silicon Valley Bank collapse in March, though, hit the space especially hard and sent it to new lows by May. Once again though, DWMC bested the benchmark as it was less exposed to some of the harder hit areas.

 

Given stretched consumer sentiment, we feel the prospects for micro-cap stocks continue to be strong despite the bear market. Valuations for smaller stocks continue to be attractive relative to large caps, with a large valuation gap between the smallest and largest companies. This can persist for long periods but doesn’t last forever. We believe the fund is well-positioned to capitalize on a narrowing valuation gap when it comes.

 

 

The Russell Micro-Cap Index measures the performance of the micro cap segment of the U.S. equity market. It includes 1,000 of the smallest securities in the Russell 2000 Index based on a combination of their market cap and current index membership and it also includes up to the next 1,000 stocks.

 

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT

For the period July 10, 2018* to June 30, 2023

 

 

13

 

 

HISTORICAL PERFORMANCE

Total Return as of June 30, 2023

 

                Since  
                Inception  
    1 Year     3 Year     7/10/2018*  
AdvisorShares Dorsey Wright Small Company ETF NAV     7.94 %     15.61 %     5.76 %
AdvisorShares Dorsey Wright Small Company ETF Market Price**     8.96 %     16.21 %     5.78 %
Russell Micro-Cap Index     6.63 %     9.09 %     1.52 %

 

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. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 1.95% and the net expense ratio is 1.95%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 1.25%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

 

 
* Commencement of operations.
** The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the Nasdaq and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund.

 

The Russell Micro-Cap Index measures the performance of the micro cap segment of the U.S. equity market. It includes 1,000 of the smallest securities in the Russell 2000 Index based on a combination of their market cap and current index membership and it also includes up to the next 1,000 stocks.

 

14

 

 

ADVISORSHARES TRUST

AdvisorShares Focused Equity ETF (CWS)

 

For the 12 months ended June 30, 2023, the AdvisorShares Focused Equity ETF (ticker: CWS) gained 27.59% (NAV) and 28.10% (market price).

 

CWS’s performance was greatly helped by the overall market’s turn towards caution. The initial burst of bullish sentiment following COVID-19 gradually gave way to a more conservative and skeptical market. This worked in favor of CWS. The fund was also aided by the generally conservative and high-quality stocks it holds. The portfolio is purposely designed for long-term performance. As such, the near-term fluctuations in the market don’t have a major impact on our investing results. The fund benefited greatly from the overall market’s rally since its low in October 2022. Many of CWS’s holdings have rallied 20% or 30%, and a few have gained much more.

 

We continue to be optimistic for the fund. A slowing economy in 2024 would have little impact on many of CWS’s holdings since they generally have a defensive posture. Also, most of the holdings have very strong balance sheets that should help them weather whatever comes their way. We’ve designed CWS so that it holds firms we see as having lasting competitive advantages.

 

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT

For the period September 20, 2016* to June 30, 2023

 

 

15

 

 

HISTORICAL PERFORMANCE

Total Return as of June 30, 2023

 

                      Since  
                      Inception  
    1 Year     3 Year     5 Year     9/20/2016*  
AdvisorShares Focused Equity ETF NAV     27.59 %     14.93 %     11.90 %     12.63 %
AdvisorShares Focused Equity ETF Market Price**     28.10 %     15.90 %     11.96 %     12.68 %
S&P 500 Index     19.59 %     14.60 %     12.31 %     13.45 %

 

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. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 1.09% and the net expense ratio is 1.09%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the range from 0.65% to 0.85%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

 

 
* Commencement of operations.
** The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund.

 

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.

 

16

 

 

ADVISORSHARES TRUST

AdvisorShares Gerber Kawasaki ETF (GK)

 

The AdvisorShares Gerber Kawasaki ETF (ticker: GK) had very respectable performance for the fiscal year ended June 30, 2023, after completing the bear market cycle. Hitting a new low in December 2022, the fund rebounded dramatically over the last six months, producing positive returns for shareholders for the fiscal year and a dividend paid from income generated from our investments. GK recovered value rapidly: in the first six months of 2023 the fund achieved a 20% return (NAV) which handily beat the S&P 500 Index. Unfortunately, during 2022, growth investments were hammered which included GK and our investment in the consumer, technology, and climate sectors. This trend reversed itself in 2023: these sectors are outperforming and GK’s portfolio investments have done well, as we would expect in a positive economic environment.

 

In particular, we witnessed a complete turnaround in securities like NVIDIA and Tesla which are top holdings of the fund. In 2022, these stocks lost tremendous value, but have since gained it back in 2023. We’ve seen similar trends in the various sectors that we are invested in.

 

We are hopeful that in the new economic cycle GK will continue its outperformance as it has in the last six months. During the remainder of 2023, our goal is to recover the value lost by GK in the market decline of 2022. We believe our focus on AI and technology, climate change investments, and the consumer will pay off for our shareholders over the long term and we remain more confident than ever in our multi thematic investment approach. Thank you for your patience during the bear market of 2022. We are excited about the new bull cycle that began in 2023 that, hopefully, will continue for some time.

 

 

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.

 

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT

For the period July 2, 2021* to June 30, 2023

 

 

17

 

 

HISTORICAL PERFORMANCE

Total Return as of June 30, 2023

 

          Since  
          Inception  
    1 Year     7/2/2021*  
AdvisorShares Gerber Kawasaki ETF NAV     11.21 %     -14.81 %
AdvisorShares Gerber Kawasaki ETF Market Price**     11.09 %     -14.82 %
S&P 500 Index     19.59 %     3.12 %

 

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. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 1.43% and the net expense ratio is 1.43%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 0.75%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

 

 
* Commencement of operations.
** The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund.

 

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.

 

18

 

 

ADVISORSHARES TRUST

AdvisorShares Hotel ETF (BEDZ)

 

The AdvisorShares Hotel ETF (ticker: BEDZ) was launched in the Spring of 2021. During the past fiscal year (July 1, 2022, to June 30, 2023), the Fund achieved a return of +29.33% (NAV), outperforming the S&P 500 Index. BEDZ’s performance closely aligns with the success of the hotel industry, which plays a crucial role in the global travel and tourism sector. This industry encompasses various types of accommodations, including luxury hotels, resorts, budget hotels, boutique hotels, and more. The hotel industry is significantly influenced by economic conditions, travel trends, technological advancements, and global events. Despite concerns of a potential recession, growth has been driven by the strong desire to travel post-pandemic and an increase in corporate travel. Investors considering a focused fund within this industry should have a long-term perspective.

 

We maintain an optimistic outlook on the future growth of the hotel and travel sector as the world gradually returns to a more normal business travel environment. While we hold a positive view of the overall hotel industry, BEDZ aims to achieve relative outperformance through careful selection of individual securities within the hotel sector and related areas, supported by effective trading techniques.

 

 

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.

 

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT

For the period April 20, 2021* to June 30, 2023

 

 

19

 

 

HISTORICAL PERFORMANCE

Total Return as of June 30, 2023

 

          Since  
          Inception  
    1 Year     4/20/2021*  
AdvisorShares Hotel ETF NAV     29.33 %     2.20 %
AdvisorShares Hotel ETF Market Price**     29.49 %     2.15 %
S&P 500 Index     19.59 %     5.05 %

 

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. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 1.33% and the net expense ratio is 1.33%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 0.99%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

 

 
* Commencement of operations.
** The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund.

 

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.

 

20

 

 

ADVISORSHARES TRUST

AdvisorShares Insider Advantage ETF (SURE)

 

The AdvisorShares Insider Advantage ETF (ticker: SURE) was launched in September 2022.* Through June 30, 2023, SURE had 10 months of performance, with a return of 11.38% (NAV) since its inception. The fund’s performance tracks a basket of companies actively repurchasing their outstanding stock and/or paying dividends. With the pace of new stock buybacks and dividends remaining stable, SURE provides investors with a compelling opportunity to capitalize on these shareholder-friendly practices. SURE’s portfolio holds companies that we believe have displayed a commitment to returning value to their shareholders, indicating a strong financial position and management’s confidence in future growth prospects.

 

Despite a new 1% U.S. federal tax on them, share buybacks set a worldwide record of $1.3 trillion in 2022. And this growth does not appear to be an isolated event: buybacks have nearly tripled in value since 2012. This trend indicates that the management teams of these companies are confident in their growth strategies and believe that returning capital to shareholders is an effective way to demonstrate that confidence. As such, investors who are seeking both stability and the potential for increased returns may find this fund appealing, given its attractive combination of buybacks and dividends from companies with strong fundamentals and a shareholder-friendly approach. We maintain an optimistic outlook for SURE.

 

 
* On September 1, 2022, the AdvisorShares DoubleLine Value Equity ETF (DBLV) was renamed the AdvisorShares Insider Advantage ETF. DBLV had different portfolio managers and investment strategy than the AdvisorShares Insider Advantage ETF.

 

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT

For the period June 30, 2013 to June 30, 2023

 

 

21

 

 

HISTORICAL PERFORMANCE

Total Return as of June 30, 2023

 

    1 Year     3 Year     5 Year     10 Year  
AdvisorShares Insider Advantage ETF NAV     12.78 %     14.33 %     8.38 %     9.86 %
AdvisorShares Insider Advantage ETF Market Price*     12.95 %     14.38 %     8.38 %     9.84 %
Russell 1000 Value Total Return     11.54 %     14.30 %     8.11 %     9.22 %

 

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. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 0.96% and net expense ratio is 0.96%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 0.90%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

 

 
* The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund.

 

The Russell 1000 Value Total Return Index measures the performance of the large-cap value segment of the U.S. equity market. It includes those Russell 1000 companies with lower price-to-book ratios and lower expected and historical growth rates.

 

22

 

 

ADVISORSHARES TRUST

AdvisorShares Let Bob AI Powered Momentum ETF (LETB)

 

The AdvisorShares Let Bob AI Momentum ETF (ticker: LETB) finished the fiscal year ended June 30,2023 with a return of -0.36% (market). We maintained a defensive cash position for most of this time frame, as LETB’s tactical investment strategy uses macro technical analysis to identify asset classes expected to perform well in upward trending markets.

 

Overall, the stock market was very volatile during the fiscal year. The Federal Reserve tightened monetary policy as inflation rose, reaching a 40-year high. The Fed’s unprecedented series of interest rate increases sent stocks into a bear market. The war in Ukraine also led to supply chain disruptions and higher energy prices throughout the global economy.

 

Investor concerns over rising interest rates, slowing economic growth, and persistently high inflation have subsided in recent months. Markets have started off strong, with the Fed leaving rates unchanged for the first time since March 2022. If the current market conditions persist, we expect LETB’s investment model to continue to signal us to seek opportunities in high momentum names.

 

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT

For the period February 9, 2022* to June 30, 2023

 

 

23

 

 

HISTORICAL PERFORMANCE

Total Return as of June 30, 2023

 

          Since  
          Inception  
    1 Year     2/9/2022*  
AdvisorShares Let Bob AI Powered Momentum ETF NAV     -0.50 %     -5.42 %
AdvisorShares Let Bob AI Powered Momentum ETF Market Price**     -0.36 %     -5.43 %
S&P 500 Index     19.59 %     0.57 %

 

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. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 1.56% and the net expense ratio is 1.56%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 0.99%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

 

 
* Commencement of operations.
** The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund.

 

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.

 

24

 

 

ADVISORSHARES TRUST

AdvisorShares MSOS 2x Daily ETF (MSOX)

 

The AdvisorShares MSOS 2X Daily ETF (ticker: MSOX) launched August 23, 2022. The Fund seeks to provide two times (2x) the daily exposure of the AdvisorShares Pure US Cannabis ETF (MSOS) in a single trade and is designed for sophisticated investors looking to gain magnified exposure to the U.S. cannabis sector. Since its inception through June 30, 2023, MSOX had a return of -87.08% (NAV).

 

Due to its exclusive emphasis on the United States and use of leverage, the MSOX is particularly vulnerable to volatility arising from U.S. cannabis legislation and potential modifications to such laws. The Fund’s future performance is anticipated to be influenced by the ongoing expansion of state-by-state cannabis sales in the U.S., and it may also be significantly impacted by expected reforms in federal cannabis laws.

 

Given the current price levels, we maintain a strongly optimistic outlook on the U.S. cannabis market and the likelihood of favorable changes in U.S. federal cannabis regulations.

 

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT

For the period August 24, 2022* to June 30, 2023

 

 

25

 

 

HISTORICAL PERFORMANCE

Total Return as of June 30, 2023

 

    Since  
    Inception  
    8/24/2022*  
AdvisorShares MSOS 2x Daily ETF NAV     -87.08 %
AdvisorShares MSOS 2x Daily ETF Market Price**     -86.96 %
S&P 500 Index     9.39 %

 

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. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 1.12% and net expense ratio is 1.12%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 0.95%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

 

 
* Commencement of operations.
** The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund.

 

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.

 

26

 

 

ADVISORSHARES TRUST

AdvisorShares Newfleet Multi-Sector Income ETF (MINC)

 

The AdvisorShares Newfleet Multi-Sector Income ETF (ticker: MINC) posted a return of 1.36%, based on NAV and 1.33%, based on market price as compared to -0.94% for the Bloomberg U.S. Aggregate Bond Index and 0.21% for the BofA Merrill lynch 1-5 Year U.S. Corporate & Government Bond Index for the 1-year period ended June 30, 2023.

 

Global central banks continued to fight inflation during the second half of 2022 with a series of unusually large policy rate increases. 2023 has been a year of transition. China’s transition from a strict zero-COVID policy to a more broad reopening of its economy brought stronger initial economic data releases that later faded, with new calls for stimulus emerging by the end of the period. In the U.S., we saw the Federal Reserve (Fed) in transition as it opted to hold its federal funds rate steady for the first time in more than a year after raising the target rate at every meeting since March of 2022. Economic growth is transitioning towards a slower pace in some parts of the world and proving more resilient in others. Unfortunately, we have yet to witness a transition towards peace in Eastern Europe. Financial markets continue to take most of these transitions in stride and seem to be embracing the view that any pain related to these changes would be shallow and short-lived. Washington was able to put its differences aside temporarily to address the U.S. debt ceiling, and the stresses in the banking system that emerged at the end of the first quarter have largely abated. Though this is certainly welcome news, it warrants monitoring.

 

During the one-year period, MINC’s underweight to U.S. Treasuries and allocation to bank loans contributed to the outperformance for the period. A solid technical driven by limited loan supply, hawkish Fed comments and solid economic numbers are resetting rate expectations higher and pushing out recession expectations further into the future. Allocation to and issue selection within asset backed securities had a positive impact on performance. Though a low unemployment rate, high number of job openings, and wage gains mitigate the effects of higher rates on the consumer, excess savings have come down significantly. Issue selection within investment grade corporate bonds positively contributed to performance primarily driven by the Fund’s overweight to BBB securities which outperformed versus higher quality bonds within the sector. The Fund’s higher quality bias within corporate high yield bonds and issue selection within non-agency mortgage-backed securities (RMBS) detracted from performance. The rapid move higher in rates extended the average lives of certain RMBS due to much slower prepayments.

 

MINC’s multi-sector relative value approach enables the ETF to take advantage of opportunities when events that trigger volatility, such as inflation worries or concerns around the banking industry, affect valuations. In the current environment, we believe some of the best total return and yield opportunities can be found in spread sectors. However, given the risk of a recession, the Fund’s exposure to spread sectors that would typically be more negatively impacted, such as corporate high yield and bank loans, are at historically low levels. Credit selection and positioning remain key. Specific sectors that demonstrate the best relative value for us include out-of-index/off-the-run asset-backed securities (ABS), non-agency RMBS and BBB-rated corporate investment grade bonds.

 

 

The Bloomberg U.S. Aggregate Bond Index measures the performance of the U.S. investment grade bond market.

The BofA Merrill Lynch 1-5 Year U.S. Corporate & Government Bond Index tracks the performance of US dollar denominated investment grade debt publicly issued in the US domestic market, including US Treasury, US agency, foreign government, supranational and corporate securities, with a remaining term to final maturity less than 5 years, calculated on a total return basis.

 

27

 

 

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT

For the period June 30, 2013 to June 30, 2023

 

 

HISTORICAL PERFORMANCE

Total Return as of June 30, 2023

 

    1 Year     3 Year     5 Year     10 Year  
AdvisorShares Newfleet Multi-Sector Income ETF NAV     1.36 %     -0.24 %     1.12 %     1.67 %
AdvisorShares Newfleet Multi-Sector Income ETF Market Price*     1.33 %     -0.27 %     1.14 %     1.67 %
Bloomberg U.S. Aggregate Bond Index     -0.94 %     -3.96 %     0.77 %     1.52 %
BofA Merrill Lynch 1-5 Year U.S. Corporate & Government Bond Index     0.21 %     -1.51 %     1.18 %     1.18 %

 

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. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 0.76% and net expense ratio is 0.76%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 0.75%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

 

 
* The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund.

 

The Bloomberg U.S. Aggregate Bond Index measures the performance of the U.S. investment grade bond market. One cannot invest directly in an index.

 

The BofA Merrill Lynch 1-5 Year U.S. Corporate & Government Bond Index tracks the performance of US dollar denominated investment grade debt publicly issued in the US domestic market, including US Treasury, US agency, foreign government, supranational and corporate securities, with a remaining term to final maturity less than 5 years, calculated on a total return basis. One cannot invest directly in an index.

 

28

 

 

ADVISORSHARES TRUST

AdvisorShares Poseidon Dynamic Cannabis ETF (PSDN)

 

The AdvisorShares Poseidon Dynamic Cannabis ETF (ticker: PSDN) launched in November of 2021. During the fiscal year ended June 30, 2023, while its performance has been negative, PSDN has experienced new share creations of nearly $1 million of inflows. These inflows were despite incredibly challenging times in cannabis and broader markets. PSDN can actively use moderate levels of leverage, at portfolio management’s discretion, and had an average leverage position of 1.08% during the fiscal year.

 

The cannabis sector largely peaked in February 2021 and has been mostly negative for 18 months through June 30, 2023. It is our belief that most of the initial decline was attributable to overly optimistic expectations. Declines over the last year are likely from a dwindling of custody access that caused forced selling coupled with continued investor expectations of federal reform, which has failed to materialize. As a result, analyst and investor expectations have repriced lower along with lowering guidance through 2024.

 

As we enter the second half of 2023, we do not expect any meaningful federal progress on cannabis reform. Our focus remains on more of a bottom-up approach driven by portfolio companies’ management execution, capital allocation, and unlocking profitable growth organically and through strategic merger and acquisition.

 

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT

For the period November 17, 2021* to June 30, 2023

 

 

29

 

 

HISTORICAL PERFORMANCE

Total Return as of June 30, 2023

 

          Since  
          Inception  
    1 Year     11/17/2021*  
AdvisorShares Poseidon Dynamic Cannabis ETF NAV     -54.11 %     -74.08 %
AdvisorShares Poseidon Dynamic Cannabis ETF Market Price**     -53.88 %     -73.99 %
S&P 500 Index     19.59 %     -1.72 %

 

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. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 2.59% and the net expense ratio is 2.59%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 0.99%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

 

 
* Commencement of operations.
** The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund.

 

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.

 

30

 

 

ADVISORSHARES TRUST

AdvisorShares Psychedelics ETF (PSIL)

 

The AdvisorShares Psychedelics ETF (ticker: PSIL) was launched on September 15, 2021. The Fund recorded a return of -26.55% (NAV) for the fiscal year ended June 30, 2023. Since its inception, the Fund’s performance has been volatile and predominantly negative. This can be attributed to the fact that the psychedelics market is relatively new and highly concentrated, consisting mainly of micro-cap securities.

 

Given the nature of the industry, extreme volatility should be expected. The psychedelic sector primarily comprises biotech and pharmaceutical companies focused on mental health. The value of these companies is primarily derived from their intellectual property and drug or treatment pipelines.

 

Despite the negative performance observed in the past year, we believe psychedelics hold significant potential for long-term investors who are aware of the risks associated with this emerging and nascent industry.

 

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT

For the period September 16, 2021* to June 30, 2023

 

 

31

 

 

HISTORICAL PERFORMANCE

Total Return as of June 30, 2023

 

          Since  
          Inception  
    1 Year     9/16/2021*  
AdvisorShares Psychedelics ETF NAV     -26.55 %     -60.74 %
AdvisorShares Psychedelics ETF Market Price**     -28.45 %     -60.52 %
S&P 500 Index     19.59 %     1.23 %

 

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. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 3.11% and the net expense ratio is 3.11%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 0.99%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

 

 
* Commencement of operations.
** The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund.

 

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.

 

32

 

 

ADVISORSHARES TRUST

AdvisorShares Pure Cannabis ETF (YOLO)

 

The AdvisorShares Pure Cannabis ETF (ticker: YOLO) experienced negative returns during the previous fiscal year, which is reflective of the overall performance of the cannabis sector. From July 1, 2022, to June 30, 2023, YOLO recorded a return of -50.63% (NAV). Following the U.S. elections in February 2021, cannabis stocks reached a peak but have since faced a long decline. This was due to the market’s expectation of some form of cannabis legalization, which has been slow to materialize at the federal level.

 

It’s important to note that as a specialty sector, cannabis stocks often exhibit low correlation with the broader market. Despite the ongoing sell-off and underperformance in the past year and beyond, we maintain a positive long-term outlook for the cannabis market. We believe the current under-valued prices present growth opportunities, and we anticipate significant legislative reform and market development within the cannabis industry. Many investors believe that the industry’s success hinges on federal law reform in the United States. Given the nature of the cannabis industry, high volatility should be anticipated.

 

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT

For the period April 17, 2019* to June 30, 2023

 

 

33

 

 

HISTORICAL PERFORMANCE

Total Return as of June 30, 2023

 

                Since  
                Inception  
    1 Year     3 Year     4/17/2019*  
AdvisorShares Pure Cannabis ETF NAV     -50.63 %     -35.40 %     -39.37 %
AdvisorShares Pure Cannabis ETF Market Price**     -50.54 %     -35.37 %     -39.91 %
S&P 500 Index     19.59 %     14.60 %     12.62 %

 

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. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 1.02% and net expense ratio is 1.02%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 0.74%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

 

 
* Commencement of operations.
** The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund.

 

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.

 

34

 

 

ADVISORSHARES TRUST

AdvisorShares Pure US Cannabis ETF (MSOS)

 

The AdvisorShares Pure US Cannabis ETF (ticker: MSOS) launched in September 2020. The Fund recorded a return of -47.04% (NAV) for the fiscal year ended June 30, 2023. Being a focused U.S.-only cannabis fund, MSOS’s performance has been highly volatile since its inception. The decline in cannabis stocks, collectively, can be attributed to slower-than-expected developments in U.S. cannabis law reforms, following a peak in February 2021. The absence of Federal cannabis reform has various impacts on U.S. cannabis stock prices as they trade mostly on secondary exchanges in Canada and over the counter (OTC) in the U.S. and with limited availability for trading in U.S. bank and brokerage firms.

 

Given its complete focus on the U.S., MSOS is particularly susceptible to volatility stemming from U.S. cannabis laws and potential changes to those laws. Future performance of MSOS is expected to be influenced by the continued growth of state-by-state U.S. cannabis sales and could be significantly affected by anticipated Federal reforms in cannabis laws.

 

Considering the current price levels, we hold a strong optimistic view on the U.S. cannabis market and the likelihood of positive changes in U.S. Federal laws pertaining to cannabis.

 

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT 

For the period September 1, 2020* to June 30, 2023

 

 

35

 

 

HISTORICAL PERFORMANCE

Total Return as of June 30, 2023

 

          Since  
          Inception  
    1 Year     9/1/2020*  
AdvisorShares Pure US Cannabis ETF NAV     -47.04 %     -41.48 %
AdvisorShares Pure US Cannabis ETF Market Price**     -46.48 %     -41.22 %
S&P 500 Index     19.59 %     10.29 %

 

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. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 0.81% and net expense ratio is 0.81%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 0.74%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

 

 
* Commencement of operations.
** The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund.

 

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.

 

36

 

 

ADVISORSHARES TRUST

AdvisorShares Q Dynamic Growth ETF (QPX)

 

For the twelve-month period ended in June 2023, the AdvisorShares Q Dynamic Growth ETF (ticker: QPX) finished ahead its benchmark, the S&P 500 Index.

 

The previous twelve months were a banner year in terms of risk management. Virtually all available long-only diversification allocations failed due to liquidity being drained by the Federal Reserve. There was no ‘black-swan’ event either, thus QPX’s proprietary Q Implied Volatility Index™ (QIX)* did not trigger a tactical rebalance towards a defensive allocation. As a result, the QIX was revised in 2023 to include a third ‘partial risk-off’ trigger.

 

Throughout the period, QPX continued a heavy weighting to large-cap stocks and the technology sector, as this exposure has a significantly higher risk/reward characteristics (as well as the opportunity for asymmetric bets) than other segments of the market. QPX’s investment strategy is purely quantitative in nature and portfolio allocations will reflect what is perceived to be the best long-term risk/reward sectors per QPX’s model.

 

 
* The QIX is a proprietary indicator designed to tactically and unemotionally identify market volatility. QIX is reviewed daily and determines certain allocation changes.

 

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.

 

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT

For the period December 28, 2020* to June 30, 2023

 

 

37

 

 

HISTORICAL PERFORMANCE

Total Return as of June 30, 2023

 

          Since  
          Inception  
    1 Year     12/28/2020*  
AdvisorShares Q Dynamic Growth ETF NAV     29.37 %     5.36 %
AdvisorShares Q Dynamic Growth ETF Market Price**     29.44 %     5.36 %
S&P 500 Index     19.59 %     8.94 %

 

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. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 1.37% and net expense ratio is 1.37%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 1.45%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

 

 
* Commencement of operations.
** The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund.

 

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.

 

38

 

 

ADVISORSHARES TRUST

AdvisorShares Ranger Equity Bear ETF (HDGE)

 

For the fiscal year ended June 30, 2023, the performance of the AdvisorShares Ranger Equity Bear ETF (ticker: HDGE) was -28.99% (NAV) compared with +19.59% for the S&P 500 Index. The period was characterized by extreme volatility. Interest rates had a historical move from a level of zero and a bear market was followed by a tremendous rally. However, we believe this rally is running out of steam.

 

Volatility as measured by the Cboe Market Volatility Index (VIX) has subsided to near historical lows. The level of bulls among advisors has crept into extreme levels. Earnings estimates have been declining and earnings growth has been dismal. Margin expansion has been a key driver of earnings growth and margin expansion is ultimately limited. Meanwhile, as interest rates have risen, they have converged with the forward earnings yield with equities. Historically, this convergence had led to poor stock market returns over time.

 

Our outlook for the next twelve months is very bearish, and HDGE’s goal is to benefit from maximum damage in the equity markets both in terms of portfolio exposure and beta.

 

 

The Cboe Volatility Index (“VIX®) is based on real-time prices of options on the S&P 500 Index and is designed to reflect investors’ consensus view of future (30-day) expected stock market volatility.

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.

 

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT

For the period June 30, 2013 to June 30, 2023

 

 

39

 

 

HISTORICAL PERFORMANCE

Total Return as of June 30, 2023

 

    1 Year     3 Year     5 Year     10 Year  
AdvisorShares Ranger Equity Bear ETF NAV     -28.99 %     -22.48 %     -21.90 %     -17.84 %
AdvisorShares Ranger Equity Bear ETF Market Price*     -29.19 %     -22.44 %     -21.85 %     -17.83 %
S&P 500 Index     19.59 %     14.60 %     12.31 %     12.86 %

 

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. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) and net expense ratio is 4.29%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 1.85%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

 

 
* The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund.

 

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.

 

40

 

 

ADVISORSHARES TRUST

AdvisorShares Restaurant ETF (EATZ)

 

The AdvisorShares Restaurant ETF (ticker: EATZ) was launched in April 2021. During the past fiscal year (July 1, 2022 to June 30, 2023), the Fund achieved a return of +30.59% (NAV). Throughout the past twelve months, EATZ surpassed the overall market performance, driven by the restaurant sector’s resilience and ongoing recovery, despite encountering challenges such as labor shortages and increasing costs. In this dynamic landscape, success in the restaurant industry hinges on adapting to evolving consumer preferences, integrating technology, and prioritizing sustainability. EATZ is designed for long-term investors who possess a forward-looking perspective.

 

We hold an optimistic outlook regarding the future growth prospects of the restaurant industry, particularly as global economic conditions improve, and issues related to employment and supply chain stability are resolved.

 

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT

For the period April 20, 2021* to June 30, 2023

 

 

41

 

 

HISTORICAL PERFORMANCE

Total Return as of June 30, 2023

 

          Since  
          Inception  
    1 Year     4/20/2021*  
AdvisorShares Restaurant NAV     30.59 %     -4.74 %
AdvisorShares Restaurant ETF Market Price**     30.95 %     -4.72 %
S&P 500 Index     19.59 %     5.05 %

 

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. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 2.11% and the net expense ratio is 2.11%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 0.99%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

 

 
* Commencement of operations.
** The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund.

 

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.

 

42

 

 

ADVISORSHARES TRUST

AdvisorShares STAR Global Buy-Write ETF (VEGA)

 

The AdvisorShares STAR Global Buy-Write ETF (ticker: VEGA) performed relatively well during the past fiscal year ended June 30, 2022, with a return of 10.60% (NAV), especially, given the lackluster performance of the fixed-income markets and generally poor market conditions in Q3 2022.

 

During the previous 12 months, VEGA completed a few tactical shifts, most notably in Q1 2023, when, following the collapse of regional banks, we increased our exposure to U.S. Treasuries, mortgage-backed securities, and developed and emerging market equities, while reducing our allocation to high yield fixed income and small cap equities.

 

For the past year, VEGA continued to sell covered calls and purchase protective puts. In September and October 2022 we were able to take advantage of the increased volatility by selling and closing calls multiple times to lock in the total premium income received on these option contracts. And, in Q1 2023, all the monthly calls sold during the first quarter expired worthless once again which added an additional source of alternative income to the bottom line. Also, due to the large decrease in market volatility, we began lowering our option coverage on VEGA’s underlying portfolio positions from where we were in Q4 2022. As a reminder, option coverage decreases when the premium received and out-of-moneyness of the targeted strike price warrants allowing more potential upside of the underlying security. This proved advantageous and allowed VEGA to participate in more of the market’s upside movement than would have been possible had more covered call coverage been in place. Protective puts were also employed to help buffer a potential substantial drop in the market; however, at this time since markets have moved upward, that amount of protection has decreased.

 

Going forward, we continue to emphasize harnessing volatility through VEGAs’ covered calls and protective puts strategies to help reduce the risk of the underlying portfolio.

 

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT

For the period June 30, 2013 to June 30, 2023

 

 

43

 

 

HISTORICAL PERFORMANCE

Total Return as of June 30, 2023

 

    1 Year     3 Year     5 Year     10 Year  
AdvisorShares STAR Global Buy-Write ETF NAV     10.60 %     6.22 %     4.67 %     5.22 %
AdvisorShares STAR Global Buy-Write ETF Market Price*     10.54 %     6.16 %     4.66 %     5.21 %
MSCI All Country World Index (Net)     16.53 %     10.99 %     8.10 %     8.75 %

 

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. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the einvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 2.00% and the net expense ratio is 2.00%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 1.85%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

 

 
* The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund.

 

The MSCI All Country World Index (Net) is an unmanaged free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. One cannot invest directly in an index.

 

44

 

 

ADVISORSHARES TRUST

AdvisorShares Vice ETF (VICE)

 

During the past fiscal year (July 1, 2022 to June 30, 2023), The AdvisorShares Vice ETF (ticker: VICE) delivered a return of +15.24% (NAV), slightly trailing the performance of the broader market, as indicated by the S&P 500 Index. When considering investments in sectors such as alcohol and tobacco, we typically expect these industries to exhibit lower volatility and stronger resilience in negative markets, as consumers tend to maintain their consumption of these goods and services despite rising prices. Key players in the alcohol, tobacco, and gaming industries continue to prioritize product innovation, market expansion, and adaptation to evolving consumer preferences.

 

As of mid-2023, with the overall market remaining unpredictable due to factors like inflation, supply chain disruptions, and employment issues, we believe that stocks associated with alcohol, gaming, entertainment, and other vice-oriented sectors remain attractive and possess qualities that are resistant to market fluctuations. We anticipate that VICE will demonstrate less volatility compared to the overall market, and certain vice-oriented stocks are expected to offer positive growth regardless of broader market conditions. While the Fund’s performance is closely tied to the areas of alcohol, gambling, online gaming, and food, we aim to achieve relative outperformance through effective individual security selection and successful trading techniques.

 

 

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.

 

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT

For the period December 12, 2017* to June 30, 2023

 

 

45

 

 

HISTORICAL PERFORMANCE

Total Return as of June 30, 2023

 

                      Since  
                      Inception  
    1 Year     3 Year     5 Year     12/12/2017*  
AdvisorShares VICE ETF NAV     15.24 %     9.16 %     3.86 %     3.95 %
AdvisorShares VICE ETF Market Price**     15.58 %     9.19 %     3.80 %     3.95 %
S&P 500 Index     19.59 %     14.60 %     12.31 %     11.64 %

 

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. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 1.64% and the net expense ratio is 1.64%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 0.99%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

 

 
* Commencement of operations.
** The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund.

 

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.

 

46

 

 

ADVISORSHARES TRUST

 

Shareholder Expense Examples (unaudited)

 

As a shareholder of a Fund, you incur transaction costs and ongoing costs, including management fees and other Fund expenses. The following example is intended to help you understand your ongoing costs (in dollars and cents) of investing in a Fund and to compare these costs with the ongoing costs of investing in other funds. The examples are based on an initial investment of $1,000 invested at January 1, 2023 and held for the period ended June 30, 2023, unless noted below for Funds not in operations for the full six month period.

 

Actual Expenses

 

The first line under each Fund in the table below provides information about actual account values and actual expenses. You may use the information, together with the amount you invested, to estimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8 6), then multiply the result by the number under the heading entitled “Expenses Paid” to estimate the expenses attributable to your account during this period.

 

Hypothetical Example for Comparison Purposes

 

The second line under each Fund in the table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses for the period. You may use this information to compare the ongoing costs of investing in the Funds and other ETF funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

 

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the hypothetical example is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.

 

In addition, if these transactional costs were included, your costs would have been higher.

 

Fund Name   Beginning
Account
Value
1/1/2023
    Ending
Account
Value
6/30/2023
    Annualized
Expense
Ratio for the
Period
    Expenses
Paid
 
AdvisorShares Alpha DNA Equity Sentiment ETF                                
Actual   $ 1,000.00     $ 1,067.00       1.13 %   $ 5.79 (1) 
Hypothetical (assuming a 5% return before expenses)   $ 1,000.00     $ 1,019.19       1.13 %   $ 5.66  
AdvisorShares Dorsey Wright ADR ETF                                
Actual   $ 1,000.00     $ 1,041.80       1.10 %   $ 5.57 (1) 
Hypothetical (assuming a 5% return before expenses)   $ 1,000.00     $ 1,019.34       1.10 %   $ 5.51  
AdvisorShares Dorsey Wright FSM All Cap World ETF(2)                                
Actual   $ 1,000.00     $ 1,017.20       0.96 %   $ 4.83 (1) 
Hypothetical (assuming a 5% return before expenses)   $ 1,000.00     $ 1,020.01       0.96 %   $ 4.83  

 

47

 

 

ADVISORSHARES TRUST

 

Shareholder Expense Examples (unaudited) (continued)

 

Fund Name   Beginning
Account
Value
1/1/2023
    Ending
Account
Value
6/30/2023
    Annualized
Expense
Ratio for the
Period
    Expenses
Paid
 
AdvisorShares Dorsey Wright FSM US Core ETF(2)                                
Actual   $ 1,000.00     $ 1,102.10       0.97 %   $ 5.04 (1) 
Hypothetical (assuming a 5% return before expenses)   $ 1,000.00     $ 1,019.99       0.97 %   $ 4.85  
AdvisorShares Dorsey Wright Short ETF                                
Actual   $ 1,000.00     $ 882.00       1.18 %   $ 5.51 (1) 
Hypothetical (assuming a 5% return before expenses)   $ 1,000.00     $ 1,018.94       1.18 %   $ 5.91  
AdvisorShares Dorsey Wright Small Company ETF(3)                                
Actual   $ 1,000.00     $ 989.10       1.25 %   $ 6.16 (1) 
Hypothetical (assuming a 5% return before expenses)   $ 1,000.00     $ 1,018.60       1.25 %   $ 6.26  
AdvisorShares Focused Equity ETF                                
Actual   $ 1,000.00     $ 1,133.10       0.85 %   $ 4.50 (1) 
Hypothetical (assuming a 5% return before expenses)   $ 1,000.00     $ 1,020.58       0.85 %   $ 4.26  
AdvisorShares Gerber Kawasaki ETF                                
Actual   $ 1,000.00     $ 1,199.90       0.75 %   $ 4.09 (1) 
Hypothetical (assuming a 5% return before expenses)   $ 1,000.00     $ 1,021.08       0.75 %   $ 3.75  
AdvisorShares Hotel ETF                                
Actual   $ 1,000.00     $ 1,109.00       0.99 %   $ 5.18 (1) 
Hypothetical (assuming a 5% return before expenses)   $ 1,000.00     $ 1,019.89       0.99 %   $ 4.96  
AdvisorShares Insider Advantage ETF(4)                                
Actual   $ 1,000.00     $ 1,112.30       0.90 %   $ 4.71 (1) 
Hypothetical (assuming a 5% return before expenses)   $ 1,000.00     $ 1,020.33       0.90 %   $ 4.51  
AdvisorShares Let Bob AI Powered Momentum ETF                                
Actual   $ 1,000.00     $ 1,015.50       0.99 %   $ 4.95 (1) 
Hypothetical (assuming a 5% return before expenses)   $ 1,000.00     $ 1,019.89       0.99 %   $ 4.96  
AdvisorShares MSOS 2x Daily ETF                                
Actual   $ 1,000.00     $ 534.10       0.95 %   $ 3.62 (1) 
Hypothetical (assuming a 5% return before expenses)   $ 1,000.00     $ 1,020.08       0.95 %   $ 4.76  
AdvisorShares Newfleet Multi-Sector Income ETF                                
Actual   $ 1,000.00     $ 1,020.90       0.75 %   $ 3.76 (1) 
Hypothetical (assuming a 5% return before expenses)   $ 1,000.00     $ 1,021.08       0.75 %   $ 3.76  

 

48

 

 

ADVISORSHARES TRUST

 

Shareholder Expense Examples (unaudited) (continued)

 

Fund Name   Beginning
Account
Value
1/1/2023
    Ending
Account
Value
6/30/2023
    Annualized
Expense
Ratio for the
Period
    Expenses
Paid
 
AdvisorShares Poseidon Dynamic Cannabis ETF                                
Actual   $ 1,000.00     $ 729.10       0.99 %   $ 4.24 (1) 
Hypothetical (assuming a 5% return before expenses)   $ 1,000.00     $ 1,019.89       0.99 %   $ 4.96  
AdvisorShares Psychedelics ETF                                
Actual   $ 1,000.00     $ 989.70       0.99 %   $ 4.88 (1) 
Hypothetical (assuming a 5% return before expenses)   $ 1,000.00     $ 1,019.89       0.99 %   $ 4.96  
AdvisorShares Pure Cannabis ETF                                
Actual   $ 1,000.00     $ 718.30       0.49 %   $ 2.09 (1) 
Hypothetical (assuming a 5% return before expenses)   $ 1,000.00     $ 1,022.36       0.49 %   $ 2.46  
AdvisorShares Pure US Cannabis ETF                                
Actual   $ 1,000.00     $ 774.20       0.74 %   $ 3.26 (1) 
Hypothetical (assuming a 5% return before expenses)   $ 1,000.00     $ 1,021.12       0.74 %   $ 3.71  
AdvisorShares Q Dynamic Growth ETF(2)                                
Actual   $ 1,000.00     $ 1,345.50       1.40 %   $ 8.11 (1) 
Hypothetical (assuming a 5% return before expenses)   $ 1,000.00     $ 1,017.88       1.40 %   $ 6.98  
AdvisorShares Ranger Equity Bear ETF                                
Actual   $ 1,000.00     $ 785.90       1.70 %   $ 7.54 (1) 
Hypothetical (assuming a 5% return before expenses)   $ 1,000.00     $ 1,016.35       1.70 %   $ 8.51  
AdvisorShares Restaurant ETF                                
Actual   $ 1,000.00     $ 1,189.20       0.99 %   $ 5.38 (1) 
Hypothetical (assuming a 5% return before expenses)   $ 1,000.00     $ 1,019.88       0.99 %   $ 4.97  
AdvisorShares STAR Global Buy-Write ETF(2)                                
Actual   $ 1,000.00     $ 1,098.70       1.29 %   $ 6.71 (1) 
Hypothetical (assuming a 5% return before expenses)   $ 1,000.00     $ 1,018.40       1.29 %   $ 6.45  
AdvisorShares Vice ETF                                
Actual   $ 1,000.00     $ 1,077.90       0.99 %   $ 5.10 (1) 
Hypothetical (assuming a 5% return before expenses)   $ 1,000.00     $ 1,019.89       0.99 %   $ 4.96  

 

 
(1) Expenses are calculated using each Fund’s annualized expense ratio, multiplied by the average account value for the period, multiplied by 181/365 (to reflect the six-month period).
(2) The Fund invests in other funds and indirectly bears its proportionate shares of fees and expenses incurred by the funds in which the Fund is invested in. These ratios do not include these indirect fees and expenses.
(3) Formerly known as AdvisorShares Dorsey Wright Micro-Cap ETF.
(4) Formerly known as AdvisorShares DoubleLine Value Equity ETF.

 

49

 

 

ADVISORSHARES ALPHA DNA EQUITY SENTIMENT ETF
Schedule of Investments

 

June 30, 2023

 

 

Investments   Shares     Value  
COMMON STOCKS — 98.2%  
                 
Aerospace/Defense — 1.0%  
Hexcel Corp.     2,303     $ 175,074  
                 
Airlines — 1.1%  
Sun Country Airlines Holdings, Inc.*     8,229       184,988  
                 
Auto Manufacturers — 2.0%  
PACCAR, Inc.     2,078       173,825  
Wabash National Corp.     6,154       157,788  
Total Auto Manufacturers             331,613  
                 
Banks — 3.9%  
Bancorp, Inc. (The)*     5,154       168,278  
City Holding Co.     1,764       158,742  
Customers Bancorp, Inc.*     5,857       177,233  
First Financial Bancorp     8,109       165,748  
Total Banks             670,001  
                 
Beverages — 1.0%  
Molson Coors Beverage Co., Class B     2,505       164,929  
                 
Biotechnology — 5.8%  
ANI Pharmaceuticals, Inc.*     3,139       168,973  
Fate Therapeutics, Inc.*     33,153       157,808  
Legend Biotech Corp.*(a)(b)     2,244       154,903  
NeoGenomics, Inc.*     9,818       157,775  
TG Therapeutics, Inc.*(a)     6,945       172,514  
Zymeworks, Inc.*     20,454       176,723  
Total Biotechnology             988,696  
                 
Building Materials — 3.0%  
American Woodmark Corp.*     2,329       177,866  
Carrier Global Corp.     3,367       167,373  
Eagle Materials, Inc.     922       171,879  
Total Building Materials             517,118  
                 
Commercial Services — 3.0%  
GXO Logistics, Inc.*     2,701       169,677  
Progyny, Inc.*     4,384       172,466  
WEX, Inc.*     943       171,692  
Total Commercial Services             513,835  
                 
Computers — 2.0%  
Fortinet, Inc.*     2,263       171,060  
Zscaler, Inc.*     1,129       165,173  
Total Computers             336,233  
Investments   Shares     Value  
COMMON STOCKS (continued)  
   
Cosmetics/Personal Care — 2.0%  
Coty, Inc., Class A*     13,343     $ 163,985  
elf Beauty, Inc.*     1,482       169,289  
Total Cosmetics/Personal Care             333,274  
                 
Distribution/Wholesale — 2.0%  
Watsco, Inc.(a)     451       172,043  
WW Grainger, Inc.     218       171,913  
Total Distribution/Wholesale             343,956  
                 
Diversified Financial Services — 1.0%  
WisdomTree, Inc.     23,986       164,544  
                 
Electrical Components & Equipment — 2.0%  
AMETEK, Inc.     1,058       171,269  
Emerson Electric Co.     1,868       168,849  
Total Electrical Components & Equipment             340,118  
                 
Electronics — 3.0%  
Hubbell, Inc.     507       168,101  
nVent Electric PLC     3,316       171,338  
Vontier Corp.     5,288       170,326  
Total Electronics             509,765  
                 
Entertainment — 3.0%  
Cinemark Holdings, Inc.*     10,213       168,514  
DraftKings, Inc., Class A*     6,422       170,633  
Genius Sports Ltd. (United Kingdom)*     27,811       172,150  
Total Entertainment             511,297  
                 
Hand/Machine Tools — 1.0%  
Lincoln Electric Holdings, Inc.     858       170,425  
                 
Healthcare — Products — 4.8%  
Edwards Lifesciences Corp.*     1,819       171,586  
Exact Sciences Corp.*     1,734       162,823  
Lantheus Holdings, Inc.*     1,795       150,636  
Penumbra, Inc.*     493       169,622  
SI-BONE, Inc.*     5,726       154,487  
Total Healthcare — Products             809,154  
                 
Healthcare — Services — 2.0%  
Centene Corp.*     2,472       166,736  
HealthEquity, Inc.*     2,708       170,983  
Total Healthcare — Services             337,719  

 

See accompanying Notes to Financial Statements.

 

50

 

 

ADVISORSHARES ALPHA DNA EQUITY SENTIMENT ETF
Schedule of Investments (continued)

 

June 30, 2023

 

 

Investments   Shares     Value  
COMMON STOCKS (continued)  
   
Home Builders — 2.0%  
Lennar Corp., Class A     1,343     $ 168,291  
Toll Brothers, Inc.     2,148       169,843  
Total Home Builders           338,134  
                 
Insurance — 1.0%  
Lemonade, Inc.*(a)     9,744       164,186  
                 
Internet — 10.9%  
Cargurus, Inc.*     7,860       177,872  
Fiverr International Ltd.*     6,333       164,721  
Hims & Hers Health, Inc.*     19,574       183,996  
Magnite, Inc.*(a)     12,121       165,452  
Meta Platforms, Inc., Class A*     573       164,439  
Okta, Inc.*     2,336       162,002  
Roku, Inc.*     2,570       164,377  
Shopify, Inc., Class A (Canada)*     2,533       163,632  
Squarespace, Inc., Class A*     5,784       182,427  
Uber Technologies, Inc.*     3,651       157,614  
Wix.com Ltd. (Israel)*     2,094       163,834  
Total Internet             1,850,366  
                 
Investment Companies — 2.0%  
Owl Rock Capital Corp.(a)     12,268       164,636  
Sixth Street Specialty Lending, Inc.     9,023       168,640  
Total Investment Companies             333,276  
                 
Leisure Time — 2.1%  
MasterCraft Boat Holdings, Inc.*     5,635       172,713  
OneSpaWorld Holdings Ltd. (Bahamas)*     14,789       178,947  
Total Leisure Time             351,660  
                 
Machinery — Construction & Mining — 1.0%  
Oshkosh Corp.     2,015       174,479  
                 
Machinery — Diversified — 2.9%  
AGCO Corp.     1,243       163,355  
Rockwell Automation, Inc.     512       168,678  
Xylem, Inc.     1,480       166,678  
Total Machinery — Diversified             498,711  
                 
Miscellaneous Manufacturing — 2.0%  
Eaton Corp. PLC     832       167,315  
Parker-Hannifin Corp.     436       170,058  
Total Miscellaneous Manufacturing             337,373  
Investments   Shares     Value  
COMMON STOCKS (continued)                
                 
Oil & Gas Services — 2.0%  
Halliburton Co.     5,185     $ 171,053  
Oceaneering International, Inc.*     9,301     173,929  
Total Oil & Gas Services             344,982  
                 
Pharmaceuticals — 7.7%                
Alkermes PLC*     5,013       156,907  
Ascendis Pharma A/S (Denmark)*(b)     1,880       167,790  
Eli Lilly & Co.     352       165,081  
Harmony Biosciences Holdings, Inc.*     4,630       162,929  
Merck & Co., Inc.     1,482       171,008  
Merus NV (Netherlands)*     6,474       170,460  
Seres Therapeutics, Inc.*     30,844       147,743  
uniQure NV (Netherlands)*     14,269       163,523  
Total Pharmaceuticals             1,305,441  
                 
REITS — 1.0%                
Ladder Capital Corp.     15,635       169,640  
                 
Retail — 2.0%                
McDonald’s Corp.     571       170,392  
Wingstop, Inc.     859       171,938  
Total Retail             342,330  
                 
Savings & Loans — 1.0%                
Axos Financial, Inc.*     4,429       174,680  
                 
Semiconductors — 6.0%                
Allegro MicroSystems, Inc. (Japan)*     3,895       175,820  
Applied Materials, Inc.     1,191       172,147  
Cohu, Inc.*     4,085       169,772  
NVIDIA Corp.     389       164,555  
NXP Semiconductors NV (China)     844       172,750  
ON Semiconductor Corp.*     1,827       172,798  
Total Semiconductors             1,027,842  
                 
Software — 10.0%                
BILL Holdings, Inc.*(a)     1,468       171,536  
Docusign, Inc.*     3,241       165,583  
Five9, Inc.*     2,121       174,876  
Gitlab, Inc., Class A*     3,336       170,503  
HubSpot, Inc.*     318       169,205  
Monday.com Ltd.*     969       165,912  
MongoDB, Inc.*     422       173,438  
Nutanix, Inc., Class A*     5,994       168,132  

 

See accompanying Notes to Financial Statements.

 

51

 

 

ADVISORSHARES ALPHA DNA EQUITY SENTIMENT ETF
Schedule of Investments (continued)

 

June 30, 2023

 

 

             
Investments   Shares     Value  
COMMON STOCKS (continued)  
                 
Software (continued)  
Procore Technologies, Inc.*     2,558     $ 166,449  
Samsara, Inc., Class A*     6,398       177,288  
Total Software             1,702,922  
                 
Telecommunications — 1.0%  
Calix, Inc.*     3,370       168,197  

Total Common Stocks
(Cost $15,384,686)

            16,686,958  
                 
MONEY MARKET FUNDS — 3.4%  
Dreyfus Institutional Preferred Government Money Market Fund, Institutional Class, 5.07%(c)(d)     328,345       328,345  
Dreyfus Institutional Treasury and Agency Cash Advantage Fund, 5.00%(c)     519       519  
Fidelity Investments Money Market Government Portfolio — Class I, 4.74%(c)     248,024       248,024  
Total Money Market Funds
(Cost $576,888)
            576,888  
    Notional Amount     Contracts     Value  
PURCHASED PUT OPTIONS — 0.9%  
Shares Russell 2000 ETF, expiring 09/15/23, Strike Price $410.00   $ 4,592,000       112     $ 29,288  
SPDR S&P 500 ETF Trust, expiring 09/15/23, Strike Price $175.00     10,902,500       623       124,289  
Total Purchased Put Options
(Cost $255,466)
              153,577  
                         
Total Investments — 102.5%
(Cost $16,217,040)
              17,417,423  
Liabilities in Excess of Other Assets — (2.5%)               (415,608 )
Net Assets — 100.0%             $ 17,001,815  

 

 

ETF — Exchange Traded Fund

PLC — Public Limited Company

REITS — Real Estate Investment Trusts

* Non-income producing security.
(a) All or a portion of security is on loan. The aggregate market value of the securities on loan is $974,018; the aggregate market value of the collateral held by the fund is $997,123. The aggregate market value of the collateral includes non-cash U.S. Treasury securities collateral having a value of $668,778.
(b) American Depositary Receipt.
(c) Rate shown reflects the 7-day yield as of June 30, 2023.
(d) Collateral received from brokers for securities lending was invested in these short-term investments.

 

See accompanying Notes to Financial Statements.

 

52

 

 

ADVISORSHARES ALPHA DNA EQUITY SENTIMENT ETF
Schedule of Investments (continued)

 

June 30, 2023

 

 

Fair Value Measurements

 

The following is a summary of the inputs used, as of June 30, 2023, in valuing the Fund’s assets and liabilities carried at fair value. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds and credit risk). Level 3 includes significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities.

 

Assets   Level 1     Level 2     Level 3     Total  
Common Stocks   $ 16,686,958     $     $     $ 16,686,958  
Money Market Funds     576,888                   576,888  
Purchased Put Options     153,577                   153,577  
Total   $ 17,417,423     $     $     $ 17,417,423  

 

SUMMARY OF SCHEDULE OF INVESTMENTS

 

    % of
Net Assets
 
Aerospace/Defense     1.0 %
Airlines     1.1  
Auto Manufacturers     2.0  
Banks     3.9  
Beverages     1.0  
Biotechnology     5.8  
Building Materials     3.0  
Commercial Services     3.0  
Computers     2.0  
Cosmetics/Personal Care     2.0  
Distribution/Wholesale     2.0  
Diversified Financial Services     1.0  
Electrical Components & Equipment     2.0  
Electronics     3.0  
Entertainment     3.0  
Hand/Machine Tools     1.0  
Healthcare — Products     4.8  
Healthcare — Services     2.0  
Home Builders     2.0  

SUMMARY OF SCHEDULE OF INVESTMENTS (continued)

 

    % of
Net Assets
 
Insurance     1.0 %
Internet     10.9  
Investment Companies     2.0  
Leisure Time     2.1  
Machinery — Construction & Mining     1.0  
Machinery — Diversified     2.9  
Miscellaneous Manufacturing     2.0  
Oil & Gas Services     2.0  
Pharmaceuticals     7.7  
Purchased Put Option     0.9  
REITS     1.0  
Retail     2.0  
Savings & Loans     1.0  
Semiconductors     6.0  
Software     10.0  
Telecommunications     1.0  
Money Market Funds     3.4  
Total Investments     102.5  
Liabilities in Excess of Other Assets     (2.5 )
Net Assets     100.0 %

 

See accompanying Notes to Financial Statements.

 

53

 

 

ADVISORSHARES DORSEY WRIGHT ADR ETF
Schedule of Investments

 

June 30, 2023

 

 

Investments   Shares     Value  
COMMON STOCKS — 98.6%  
                 
Aerospace/Defense — 5.0%  
BAE Systems PLC (United Kingdom)(a)     15,575     $ 746,977  
Embraer SA (Brazil)*(a)     44,468       687,475  
Total Aerospace/Defense             1,434,452  
                 
Airlines — 2.9%  
Copa Holdings SA, Class A (Panama)     7,630       843,725  
                 
Apparel — 2.0%  
Hermes International (France)(a)     2,564       557,926  
                 
Banks — 13.9%  
Banco Bilbao Vizcaya Argentaria SA (Spain)(a)     109,158       838,333  
HDFC Bank Ltd. (India)(a)     9,360       652,392  
ING Groep NV (Netherlands)(a)     49,079       661,094  
Mitsubishi UFJ Financial Group, Inc. (Japan)(a)     126,624       933,219  
UBS Group AG (Switzerland)     44,713       906,333  
Total Banks             3,991,371  
                 
Beverages — 5.7%  
Coca-Cola Femsa SAB de CV (Mexico)(a)     9,522       793,278  
Fomento Economico Mexicano SAB de CV (Mexico)(a)     7,545       836,288  
Total Beverages             1,629,566  
                 
Biotechnology — 2.2%  
Argenx SE (Netherlands)*(a)     1,642       639,937  
                 
Building Materials — 5.7%  
Cemex SAB de CV (Mexico)*(a)     122,574       867,824  
CRH PLC (Ireland)(a)(b)     13,905       774,925  
Total Building Materials             1,642,749  
                 
Commercial Services — 5.3%  
New Oriental Education & Technology Group, Inc. (China)*(a)     16,400       647,636  
RELX PLC (United Kingdom)(a)     25,983       868,612  
Total Commercial Services             1,516,248  
                 
Electric — 3.2%  
Pampa Energia SA (Argentina)*(a)     21,080       913,185