Sub-advised
by: Alpha
DNA Investment Management LLC |
ADVISORSHARES
TRUST 4800
Montgomery Lane ● Suite 150 Bethesda,
Maryland 20814 www.advisorshares.com 877.843.3831 Prospectus
dated |
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 |
|
TOTAL ANNUAL OPERATING
EXPENSES |
|
|
1
YEAR |
3
YEARS |
5
YEARS |
10
YEARS |
AdvisorShares Alpha DNA
Equity Sentiment ETF |
$ |
$ |
$ |
$ |
1 |
2 |
3 |
Name |
Title |
AdvisorShares
Investments, LLC |
Advisor |
Alpha
DNA Investment Management LLC |
Sub-Advisor |
4 |
Name and
Title |
Length of Service with
Sub-Advisor |
Wayne Ferbert,
Co-Founder and Managing
Director |
since
November 2014 |
5 |
● |
catalysts
that could affect the likelihood of a stock move in the
near-term; |
● |
any
merger or proposed merger of the stock with another
stock; |
● |
any
bankruptcy filings or announcement by the firm that causes the solvency of
the firm to be in question; and |
● |
possible
temporary mis-pricings caused by apparent market volatility or market
disruptions. |
6 |
7 |
8 |
9 |
10 |
11 |
12 |
13 |
● |
the
Fund makes distributions; |
● |
you
sell Fund shares; and |
● |
you
purchase or redeem Creation Units (authorized participants
only). |
● |
The
Fund intends to distribute, at least annually, substantially all of its
net investment income and net capital gains
income. |
● |
The
Fund’s distributions from income and net short-term capital gains will
generally be taxed to you as ordinary 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 the 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, the 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. The Fund’s investment strategies may limit its ability to
distribute dividends eligible to be reported as qualified dividend
income. |
● |
Corporate
shareholders may be entitled to dividends received deduction for the
portion of dividends they receive that are attributable to dividends
received by the Fund (directly or in some cases indirectly) from U.S.
corporations, subject to certain limitations. The 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 the
Fund owned the investments that generated them, rather than how long a
shareholder has owned their shares. Sales of assets held by the Fund for
more than one year generally result in long-term capital gains and losses,
and sales of assets held by the Fund for one year or less generally result
in short-term capital gains and losses. Distributions from the Fund’s
short-term capital gains are generally taxable as ordinary income. Any
distributions of net capital gain (the excess of the Fund’s net long-term
capital gains over its net short-term capital losses) that you receive
from the 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 the 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 Fund 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 . |
14 |
● |
You
may wish to avoid investing in the Fund (or your broker) 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. |
15 |
16 |
AdvisorShares Alpha DNA Equity Sentiment
ETF |
|
For the period February 2, 2021* to June 30, 2021 |
| |
Selected Data for a Share of Capital Stock
Outstanding |
|
|
|
|
Net Asset Value, Beginning
of Year/Period |
|
$ |
25.35 |
|
Investment Operations |
|
|
|
|
Net
Investment Loss
(1) |
|
|
(0.07 |
) |
Net Realized and Unrealized Gain |
|
|
2.30 |
|
Net
Increase in Net Assets Resulting from Investment Operations
(2) |
|
|
2.23 |
|
Net Asset Value, End of Year/Period |
|
$ |
27.58 |
|
Market Value, End of Year/Period |
|
$ |
27.58 |
|
Total Return |
|
|
|
|
Total
Investment Return Based on Net Asset Value
(3) |
|
|
8.78 |
% |
Total
Investment Return Based on Market
(3) |
|
|
8.80 |
% |
Ratios/Supplemental Data |
|
|
|
|
Net Assets, End of Year/Period (000’s
omitted) |
|
$ |
69,907 |
|
Ratio to Average Net Assets of: |
|
|
|
|
Expenses,
net of expense waivers and reimbursements
(4) |
|
|
1.08 |
% |
Expenses,
prior to expense waivers and reimbursements
(4) |
|
|
1.08 |
% |
Net
Investment Loss
(4) |
|
|
(0.67 |
)% |
Portfolio
Turnover Rate
(5) |
|
|
244 |
% |
* |
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. |
17 |
Advisor |
AdvisorShares Investments,
LLC 4800 Montgomery Lane, Suite 150 Bethesda, Maryland 20814 |
Sub-Advisor |
Alpha DNA Investment
Management LLC 8860 Columbia 100 Parkway, Suite
301 Columbia, Maryland 21045 |
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 |
18 |