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NYSE Arca Ticker:
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Managed
by:
AdvisorShares
Investments, LLC
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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 Focused
Equity ETF, a series of AdvisorShares Trust. Before you invest, please
read this Prospectus and the Fund’s Statement of Additional Information
carefully and keep them for future reference.
The
shares of the Fund 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 (
fluctuates based on the
Fund’s performance relative to the S&P 500 Index ) |
|
DISTRIBUTION (12b-1) FEES |
|
OTHER EXPENSES |
|
TOTAL ANNUAL OPERATING
EXPENSES |
|
FEE WAIVER/EXPENSE REIMBURSEMENT
* |
- |
TOTAL ANNUAL OPERATING
EXPENSES AFTER FEE WAIVER/ EXPENSE REIMBURSEMENT |
|
* |
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 a percentage of the Fund’s average daily net assets equal to the
annual rate of the management fee, which can range from 0.65% to 0.85% due
to a performance-based adjustment, |
|
1 YEAR |
3 YEARS |
5 YEARS |
10 YEARS |
AdvisorShares Focused
Equity ETF |
$ |
$ |
$ |
$ |
|
Return |
|
Quarter/
Ye ar |
Highest Return |
|
|
|
Lowest Return |
- |
|
|
ADVISORSHARES FOCUSED
EQUITY ETF |
1 Year |
Since
Inception ( |
Return Before Taxes Based on
NAV |
|
|
Return After Taxes on
Distributions |
|
|
Return After Taxes on Distributions and Sale
of Fund Shares |
|
|
S&P 500 Index (reflects no deduction for
fees, expenses, or taxes) |
|
|
Name |
Title |
AdvisorShares Investments, LLC | Advisor |
Name and Title |
Length of Service with the
Advisor |
Dan S. Ahrens,
Managing Director, Chief
Operating Officer
and
, Portfolio Manager
|
since November 2008 |
Base Fee | 0.75% |
Incremental Changes | 0.02% |
Performance
to Benchmark |
Advisory
Fee |
2.00% |
0.85% |
1.50% |
0.83% |
1.25% |
0.81% |
1.00% |
0.79% |
0.50% |
0.77% |
+/-
0 |
0.75% |
-0.50% |
0.73% |
-1.00% |
0.71% |
-1.25% |
0.69% |
-1.50% |
0.67% |
-2.00% |
0.65% |
● | 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 income dividends you receive from the
Fund will be taxed as either 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 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. |
● |
Corporate shareholders may be entitled to a
dividends-received deduction for the portion of dividends they receive
that are attributable to dividends received by the Fund 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 (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 the 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 Focused
Equity ETF |
|
Years Ended June 30, |
|
|
For
the period September 20, 2016* to June 30, 2017 |
| ||||||||||||||
2021 |
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
| |||||||||
Selected Data for a Share of Capital Stock
Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value, Beginning of
Year/Period |
|
$ |
35.67 |
|
|
$ |
34.42 |
|
|
$ |
31.80 |
|
|
$ |
28.59 |
|
|
$ |
25.00 |
|
Investment Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Investment Income
(1) |
|
|
0.10 |
|
|
|
0.14 |
|
|
|
0.16 |
|
|
|
0.13 |
|
|
|
0.06 |
|
Net Realized and Unrealized Gain |
|
|
11.00 |
|
|
|
1.26 |
|
|
|
3.21 |
|
|
|
3.17 |
|
|
|
3.54 |
|
Net
Increase in Net Assets Resulting from Investment Operations
(2) |
|
|
11.10 |
|
|
|
1.40 |
|
|
|
3.37 |
|
|
|
3.30 |
|
|
|
3.60 |
|
Distributions from Net Investment
Income |
|
|
(0.12 |
) |
|
|
(0.15 |
) |
|
|
(0.16 |
) |
|
|
(0.09 |
) |
|
|
(0.01 |
) |
Distributions from Realized Capital
Gains |
|
|
— |
|
|
|
— |
|
|
|
(0.59 |
) |
|
|
— |
|
|
|
— |
|
Total Distributions |
|
|
(0.12 |
) |
|
|
(0.15 |
) |
|
|
(0.75 |
) |
|
|
(0.09 |
) |
|
|
(0.01 |
) |
Net Asset Value, End of Year/Period |
|
$ |
46.65 |
|
|
$ |
35.67 |
|
|
$ |
34.42 |
|
|
$ |
31.80 |
|
|
$ |
28.59 |
|
Market Value, End of Year/Period |
|
$ |
46.68 |
|
|
$ |
34.88 |
|
|
$ |
34.31 |
|
|
$ |
31.79 |
|
|
$ |
28.59 |
|
Total Return |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Investment Return Based on Net Asset Value
(3) |
|
|
31.15 |
% |
|
|
4.02 |
% |
|
|
11.09 |
% |
|
|
11.57 |
% |
|
|
14.39 |
% |
Total
Investment Return Based on Market
(3) |
|
|
34.20 |
% |
|
|
2.06 |
% |
|
|
10.74 |
% |
|
|
11.51 |
% |
|
|
14.40 |
% |
Ratios/Supplemental Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets, End of Year/Period (000’s
omitted) |
|
$ |
28,921 |
|
|
$ |
19,616 |
|
|
$ |
17,211 |
|
|
$ |
14,311 |
|
|
$ |
12,150 |
|
Ratio to Average Net Assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses,
net of expense waivers and reimbursements
(4) |
|
|
0.66 |
% |
|
|
0.77 |
% |
|
|
0.72 |
% |
|
|
0.68 |
% |
|
|
0.75 |
% |
Expenses,
prior to expense waivers and reimbursements
(4) |
|
|
1.19 |
% |
|
|
1.43 |
% |
|
|
1.63 |
% |
|
|
1.39 |
% |
|
|
2.04 |
% |
Net
Investment Income
(4) |
|
|
0.24 |
% |
|
|
0.41 |
% |
|
|
0.49 |
% |
|
|
0.42 |
% |
|
|
0.28 |
% |
Portfolio
Turnover Rate
(5) |
|
|
25 |
% |
|
|
23 |
% |
|
|
19 |
% |
|
|
26 |
% |
|
|
36 |
% |
* |
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. |
Advisor |
AdvisorShares Investments,
LLC 4800
Montgomery Lane, Suite 150
Bethesda,
Maryland 20814 |
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 |