NASDAQ
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NASDAQ
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Sub-advised
by: Dorsey,
Wright & Associates, LLC |
ADVISORSHARES
TRUST 4800
Montgomery Lane ● Suite 150 Bethesda,
Maryland 20814 www.advisorshares.com 877.843.3831 |
Prospectus
dated November 1, 2021 |
This
Prospectus provides important information about the AdvisorShares Dorsey
Wright Micro-Cap ETF and AdvisorShares Dorsey Wright Short ETF, each a
series of AdvisorShares Trust. Before you invest, please read this
Prospectus and the Funds’ Statement of Additional Information carefully
and keep them for future reference. The
shares of the Funds have not been approved or disapproved by the U.S.
Securities and Exchange Commission nor has the U.S. Securities and
Exchange Commission passed upon the accuracy or adequacy of this
Prospectus. Any representation to the contrary is a criminal
offense. |
SHAREHOLDER FEES
(fees paid directly from
your investment) |
|
ANNUAL FUND OPERATING
EXPENSES
(expenses that you pay
each year as a percentage of the value of your
investment) | |
MANAGEMENT
FEES |
|
DISTRIBUTION
(12b-1) FEES |
|
OTHER
EXPENSES |
|
ACQUIRED
FUND FEES AND EXPENSES
(a) |
|
TOTAL ANNUAL OPERATING
EXPENSES |
|
FEE
WAIVER/EXPENSE REIMBURSEMENT
(b) |
- |
TOTAL ANNUAL OPERATING
EXPENSES AFTER FEE WAIVER/EXPENSE REIMBURSEMENT |
|
(a) |
Total Annual Operating
Expenses and Total Annual Operating Expenses After Fee Waiver/Expense
Reimbursement in this fee table may not correlate to the expense ratios in
the Fund’s financial highlights (and the Fund’s financial statements)
because the financial highlights include only the Fund’s direct operating
expenses and do not include Acquired Fund Fees and Expenses, which
represent the Fund’s pro rata share of the fees and expenses of money
market funds in which it invested as a temporary defensive
measure. |
(b) |
AdvisorShares
Investments, LLC (the “Advisor”) has contractually agreed to waive its
fees and/or reimburse expenses to keep net expenses (excluding amounts
payable pursuant to any plan adopted in accordance with Rule 12b-1,
interest expense, taxes, brokerage commissions, acquired fund fees and
expenses, other expenditures which are capitalized in accordance with
generally accepted accounting principles, and extraordinary expenses) from
exceeding 1.25% of the Fund’s average daily net assets |
|
1
YEAR |
3
YEARS |
5
YEARS |
10
YEARS |
AdvisorShares Dorsey
Wright Micro-Cap ETF |
$ |
$ |
$ |
$ |
|
Return |
Quarter/Year |
|
|
|
|
- |
|
ADVISORSHARES
DORSEY WRIGHT MICRO-CAP ETF |
1 Year |
Since
Inception ( |
|
|
|
Return
After Taxes on Distributions |
|
|
Return
After Taxes on Distributions and Sale of Fund
Shares |
|
|
Russell
Microcap Index (reflects no deduction for fees, expenses, or
taxes) |
|
|
Name |
Title |
AdvisorShares
Investments, LLC |
Advisor |
Dorsey,
Wright & Associates, LLC |
Sub-Advisor |
Name and
Title |
Length of Service with
Sub-Advisor |
John
G. Lewis, Senior Vice President & Senior Portfolio Manager |
since
June 2002 |
SHAREHOLDER FEES
(fees paid directly from
your investment) |
| |
ANNUAL FUND OPERATING
EXPENSES
(expenses that you pay
each year as a percentage of the value of your
investment) | ||
MANAGEMENT
FEES |
| |
DISTRIBUTION
(12b-1) FEES |
| |
OTHER
EXPENSES |
| |
Short
Interest Expenses |
|
|
Remaining Expenses |
|
|
ACQUIRED
FUND FEES AND EXPENSES
(a) |
| |
TOTAL ANNUAL OPERATING
EXPENSES |
| |
FEE
WAIVER/EXPENSE REIMBURSEMENT
(b) |
- | |
TOTAL ANNUAL OPERATING
EXPENSES AFTER FEE WAIVER/EXPENSE REIMBURSEMENT |
|
(a) |
Total Annual Operating
Expenses and Total Annual Operating Expenses After Fee Waiver/Expense
Reimbursement in this fee table may not correlate to the expense ratio in
the Fund’s financial highlights (and the Fund’s financial statements)
because the financial highlights include only the Fund’s direct operating
expenses and do not include Acquired Fund Fees and Expenses, which
represent the Fund’s pro rata share of the fees and expenses of the
exchange-traded funds (each, an “ETF”) in which it
invests. |
(b) |
AdvisorShares
Investments, LLC (the “Advisor”) has contractually agreed to waive its
fees and/or reimburse expenses to keep net expenses (excluding amounts
payable pursuant to any plan adopted in accordance with Rule 12b-1,
interest expense, taxes, brokerage commissions, acquired fund fees and
expenses, other expenditures which are capitalized in accordance with
generally accepted accounting principles, and extraordinary expenses) from
exceeding 1.25% of the Fund’s average daily net assets |
|
1
YEAR |
3
YEARS |
5
YEARS |
10
YEARS |
AdvisorShares Dorsey
Wright Short ETF |
$ |
$ |
$ |
$ |
|
Return |
Quarter/Year |
|
|
|
|
- |
|
ADVISORSHARES
DORSEY WRIGHT SHORT ETF |
1 Year |
Since
Inception ( |
|
- |
- |
|
- |
- |
|
- |
- |
|
|
|
Name |
Title |
AdvisorShares
Investments, LLC |
Advisor |
Dorsey,
Wright & Associates, LLC |
Sub-Advisor |
Name and
Title |
Length of Service with
Sub-Advisor |
John
G. Lewis, Senior Vice President & Senior Portfolio Manager |
since
June 2002 |
● |
a
Fund makes distributions; |
● |
you
sell Fund shares; and |
● |
you
purchase or redeem Creation Units (authorized participants
only). |
● |
Each
Fund intends to distribute, at least annually, substantially all of its
net investment income and net capital gains
income. |
● |
Each
Fund’s income distributions will generally be taxed to you as ordinary
income or qualified dividend income. For non-corporate shareholders,
dividends reported by the Fund as qualified dividend income are generally
eligible for reduced tax rates applicable to long-term capital gains,
provided holding period and other requirements are met. Qualified dividend
income generally is income derived from dividends paid by U.S.
corporations or certain foreign corporations that are either incorporated
in a U.S. possession or eligible for tax benefits under certain U.S.
income tax treaties. In addition, dividends that a Fund receives in
respect of stock of certain foreign corporations may be qualified dividend
income if that stock is readily tradable on an established U.S. securities
market. For such dividends to be taxed as qualified dividend income to a
non-corporate shareholder, a Fund must satisfy certain holding period
requirements with respect to the underlying stock and the non-corporate
shareholder must satisfy holding period requirements with respect to his
or her ownership of the Fund’s shares. Holding periods may be suspended
for these purposes for stock that is hedged. In general, dividends
received by the Fund from another ETF taxable as a RIC may be distributed
and reported as qualified dividend income by the Fund to the extent the
dividend distributions are distributed and reported as qualified dividend
income by the other ETF. A Fund’s investment strategies may limit its
ability to distribute dividends eligible to be treated as qualified
dividend income. |
● |
Corporate
shareholders may be entitled to a dividends received deduction for the
portion of dividends they receive that are attributable to dividends
received by a Fund (directly or in some cases indirectly) from U.S.
corporations, subject to certain limitations. A Fund’s investment
strategies may limit its ability to distribute dividends eligible for the
dividends received deduction for corporate
shareholders. |
● |
Taxes
on distributions of capital gains (if any) are determined by how long a
Fund owned the investments that generated them, rather than how long a
shareholder has owned their shares. Sales of assets held by a Fund for
more than one year generally result in long-term capital gains and losses,
and sales of assets held by a Fund for one year or less generally result
in short-term capital gains and losses. Distributions from a Fund’s
short-term capital gains are generally taxable as ordinary income. Any
distributions of net capital gain (the excess of a Fund’s net long-term
capital gains over its net short-term capital losses) that you receive
from a Fund generally are taxable as long-term capital gains regardless of
how long you have owned your shares. Long-term capital gains are taxed to
non-corporate shareholders at reduced tax rates. |
● |
Dividends
and distributions are generally taxable to you whether you receive them in
cash or reinvest them in additional shares. |
● |
In
general, your distributions are subject to federal income tax for the year
in which they are paid. However, distributions paid in January but
declared by a Fund in October, November or December of the previous year
may be taxable to you in the previous year. |
● |
Shortly
after the close of each calendar year, the Funds (or your broker) will
inform you of the amount of your ordinary income dividends, qualified
dividend income, foreign tax credits, and net capital gain distributions
received from the Fund. |
● |
You
may wish to avoid investing in a Fund shortly before a dividend or other
distribution, because such a distribution will generally be taxable even
though it may economically represent a return of a portion of your
investment. |
AdvisorShares Dorsey
Wright Micro-Cap ETF |
|
Years Ended June 30, |
|
|
For the
period July 11, 2018* to June 30, 2019 |
| ||||||
2021 |
|
|
2020 |
|
| |||||||
Selected Data for a Share of Capital Stock
Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value, Beginning
of Year/Period |
|
$ |
21.12 |
|
|
$ |
23.04 |
|
|
$ |
24.71 |
|
Investment Operations |
|
|
|
|
|
|
|
|
|
|
|
|
Net
Investment Loss
(1) |
|
|
(0.04 |
) |
|
|
(0.01 |
) |
|
|
(0.02 |
) |
Net Realized and Unrealized Gain
(Loss) |
|
|
16.79 |
|
|
|
(1.89 |
) |
|
|
(1.65 |
) |
Net
Increase (Decrease) in Net Assets Resulting from Investment Operations
(2) |
|
|
16.75 |
|
|
|
(1.90 |
) |
|
|
(1.67 |
) |
Distributions from Net Investment
Income |
|
|
— |
|
|
|
(0.02 |
) |
|
|
— |
|
Total Distributions |
|
|
— |
|
|
|
(0.02 |
) |
|
|
— |
|
Net Asset Value, End of Year/Period |
|
$ |
37.87 |
|
|
$ |
21.12 |
|
|
$ |
23.04 |
|
Market Value, End of Year/Period |
|
$ |
37.92 |
|
|
$ |
20.80 |
|
|
$ |
23.02 |
|
Total Return |
|
|
|
|
|
|
|
|
|
|
|
|
Total
Investment Return Based on Net Asset Value
(3) |
|
|
79.33 |
% |
|
|
(8.26 |
)% |
|
|
(6.79 |
)% |
Total
Investment Return Based on Market
(3) |
|
|
82.31 |
% |
|
|
(9.58 |
)% |
|
|
(6.86 |
)% |
Ratios/Supplemental Data |
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets, End of Year/Period (000’s
omitted) |
|
$ |
8,899 |
|
|
$ |
2,112 |
|
|
$ |
2,304 |
|
Ratio to Average Net Assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
Expenses,
net of expense waivers and reimbursements
(4) |
|
|
1.25 |
% |
|
|
1.17 |
% |
|
|
0.99 |
% |
Expenses,
prior to expense waivers and reimbursements
(4) |
|
|
3.17 |
% |
|
|
4.98 |
% |
|
|
4.79 |
% |
Net
Investment Loss
(4) |
|
|
(0.12 |
)% |
|
|
(0.05 |
)% |
|
|
(0.11 |
)% |
Portfolio
Turnover Rate
(5) |
|
|
163 |
% |
|
|
119 |
% |
|
|
103 |
% |
* |
Commencement of
operations. |
(1) |
Based on average shares
outstanding. |
(2) |
The amount shown for a share distribution
throughout the period may not correlate with the Statement of Operations
for the period due to the timing of sales and repurchases of Fund Shares
in relation to income earned and/or fluctuating fair value of the
investments of the Fund. |
(3) |
Net asset value total investment return is
calculated assuming an initial investment made at the net asset value at
the beginning of the period, reinvestment of all dividends and
distributions on ex-date, if any, at net asset value during the period,
and redemption on the last day of the period. Periods less than one
year are not annualized. Market value total return is calculated
assuming an initial investment made at the market value at the beginning
of the period, reinvestment of all dividends and distributions at market
value during the period on pay date, and sale at the market value on the
last day of the period. |
(4) |
Ratios of periods of less than one year have
been annualized. Excludes expenses incurred by the underlying investments
in other funds. |
(5) |
Portfolio turnover rate is not annualized and
excludes the value of portfolio securities received or delivered as
in-kind creations or redemptions of the Fund’s capital
shares. |
AdvisorShares Dorsey
Wright Short ETF |
|
Years Ended June 30, |
|
|
For the period July 11, 2018* to June 30, 2019 |
| ||||||
2021 |
|
|
2020 |
|
| |||||||
Selected Data for a Share of Capital Stock
Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value, Beginning
of Year/Period |
|
$ |
19.33 |
|
|
$ |
24.90 |
|
|
$ |
25.00 |
|
Investment Operations |
|
|
|
|
|
|
|
|
|
|
|
|
Net
Investment Income (Loss)
(1) |
|
|
(0.46 |
) |
|
|
(0.65 |
) |
|
|
0.13 |
|
Net Realized and Unrealized Loss |
|
|
(10.28 |
) |
|
|
(4.89 |
) |
|
|
(0.19 |
) |
Net
Decrease in Net Assets Resulting from Investment Operations
(2) |
|
|
(10.74 |
) |
|
|
(5.54 |
) |
|
|
(0.06 |
) |
Distributions from Net Investment
Income |
|
|
— |
|
|
|
(0.03 |
) |
|
|
(0.04 |
) |
Total Distributions |
|
|
— |
|
|
|
(0.03 |
) |
|
|
(0.04 |
) |
Net Asset Value, End of Year/Period |
|
$ |
8.59 |
|
|
$ |
19.33 |
|
|
$ |
24.90 |
|
Market Value, End of Year/Period |
|
$ |
8.56 |
|
|
$ |
19.36 |
|
|
$ |
24.93 |
|
Total Return |
|
|
|
|
|
|
|
|
|
|
|
|
Total
Investment Return Based on Net Asset Value
(3) |
|
|
(55.58 |
)% |
|
|
(22.26 |
)% |
|
|
(0.27 |
)% |
Total
Investment Return Based on Market
(3) |
|
|
(55.79 |
)% |
|
|
(22.24 |
)% |
|
|
(0.18 |
)% |
Ratios/Supplemental Data |
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets, End of Year/Period (000’s
omitted) |
|
$ |
25,164 |
|
|
$ |
113,098 |
|
|
$ |
24,281 |
|
Ratio to Average Net Assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
Expenses,
net of expense waivers and reimbursements
(4) |
|
|
3.48 |
%
(5) |
|
|
3.56 |
%
(5) |
|
|
2.70 |
%
(5) |
Expenses,
prior to expense waivers and reimbursements
(4) |
|
|
3.55 |
%
(5) |
|
|
3.56 |
%
(5) |
|
|
3.26 |
%
(5) |
Net
Investment Income (Loss)
(4) |
|
|
(3.18 |
)% |
|
|
(2.58 |
)% |
|
|
0.53 |
% |
Portfolio
Turnover Rate
(6) |
|
|
243 |
% |
|
|
555 |
% |
|
|
357 |
% |
* |
Commencement of
operations. |
(1) |
Based on average shares
outstanding. |
(2) |
The amount shown for a share distribution
throughout the period may not correlate with the Statement of Operations
for the period due to the timing of sales and repurchases of Fund Shares
in relation to income earned and/or fluctuating fair value of the
investments of the Fund. |
(3) |
Net asset value total investment return is
calculated assuming an initial investment made at the net asset value at
the beginning of the period, reinvestment of all dividends and
distributions on ex-date, if any, at net asset value during the period,
and redemption on the last day of the period. Periods less than one
year are not annualized. Market value total return is calculated
assuming an initial investment made at the market value at the beginning
of the period, reinvestment of all dividends and distributions at market
value during the period on pay date, and sale at the market value on the
last day of the period. |
(4) |
Ratios of periods of less than one year have
been annualized. Excludes expenses incurred by the underlying investments
in other funds. |
(5) |
The expense ratio includes interest and
dividend expenses on short sales of 2.46%, 2.47% and 1.71% for the period
ended June 30, 2021, June 30, 2020 and June 30, 2019,
respectively. |
(6) |
Portfolio turnover rate is not annualized and
excludes the value of portfolio securities received or delivered as
in-kind creations or redemptions of the Fund’s capital
shares. |
Advisor |
AdvisorShares Investments,
LLC 4800
Montgomery Lane, Suite 150 Bethesda,
Maryland 20814 |
Sub-Advisor |
Dorsey, Wright &
Associates, LLC 3300
W. Leigh Street Richmond,
Virginia 23230 |
Distributor |
Foreside Fund Services,
LLC Three
Canal Plaza, Suite 100 Portland,
Maine 04101 |
Legal
Counsel |
Morgan, Lewis &
Bockius LLP 1111
Pennsylvania Avenue, NW Washington,
DC 20004 |
Administrator,
Custodian & Transfer Agent |
The Bank of New York
Mellon 240
Greenwich Street New
York, New York 10286 |