AdvisorShares Dorsey Wright ADR ETF (AADR) N-CSR Certified annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number 811-22110

AdvisorShares Trust
(Exact name of registrant as specified in charter)

2 Bethesda Metro Center, Suite 1330
Bethesda, Maryland 20814
(Address of principal executive offices) (Zip code)

Dan Ahrens

AdvisorShares Trust
2 Bethesda Metro Center, Suite 1330
Bethesda, Maryland 20814
(Name and address of agent for service)

Registrant's telephone number, including area code: 1-877-843-3831

Date of fiscal year end: June 30

Date of reporting period: June 30, 2012

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Reports to Stockholders.

ADVISORSHARES TRUST

2 Bethesda Metro Center
Suite 1330
Bethesda, Maryland 20814
www.advisorshares.com
877.THE.ETF1

Annual Report

June 30, 2012

TABLE OF CONTENTS

Manager’s Discussion and Analysis		1
Hypothetical Growth of a $10,000 Investment, Historical Performances		3
Shareholder Expense Example		19
Schedules of Investments
Accuvest Global Long Short ETF (AGLS)		21
Accuvest Global Opportunities ETF (ACCU)		23
Active Bear ETF (HDGE)		24
Cambria Global Tactical ETF (GTAA)		28
Dent Tactical ETF (DENT)		31
Global Echo ETF (GIVE)		32
Madrona Domestic ETF (FWDD)		38
Madrona Global Bond ETF (FWDB)		56
Madrona International ETF (FWDI)		58
Meidell Tactical Advantage ETF (MATH)		71
Peritus High Yield ETF (HYLD)		72
Rockledge SectorSAM ETF (SSAM)		76
TrimTabs Float Shrink ETF (TTFS)		77
WCM/BNY Mellon Focused Growth ADR ETF (AADR)		83
Statements of Assets and Liabilities.		86
Statements of Operations		88
Statements of Changes in Net Assets		90
Statements of Cash Flows		94
Financial Highlights.		96
Notes to Financial Statements		100
Report of Independent Registered Public Accounting Firm		119
Board of Trustees and Officers		120
Board Review of Investment Advisory and Sub-Advisory Agreements		121
Supplemental Information		126

ADVISORSHARES TRUST
Manager’s Discussion and Analysis

June 30, 2012

Thank you for being a shareholder of AdvisorShares ETFs. Our goal is to provide investors with access to great portfolio managers with compelling investment strategies in an innovative format that provides shareholders with transparency, intra-day liquidity, and an efficient operating structure. We are pleased to offer you our 2012 annual report.

As you can see from the chart below, we have continued to increase the number of ETFs we offer and have continued to increase our overall assets under management.

Source: AdvisorShares

During this time, we have offered the following new actively managed ETFs:

• TTFS — AdvisorShares TrimTabs Float Shrink ETF (Domestic Equity Investment Strategy)

• ACCU — AdvisorShares Accuvest Global Opportunities ETF (Global Equity Investment Strategy)

• SSAM — AdvisorShares Rockledge SectorSAM ETF (Long/Short Domestic Equity Strategy)

• GIVE — AdvisorShares GlobalECHO ETF (Multi-Manager Sustainability Strategy)

In addition, in December of 2011, we changed the portfolio manager of the Mars Hill Global Relative Value ETF (GRV), to Accuvest Global Advisors and renamed the ETF the AdvisorShares Accuvest Global Long/Short ETF (new ticker: AGLS).

1

As of June 30, 2012 I Source: AdvisorShares

As of June 30th, 2012, AdvisorShares has the largest number of actively managed ETFs offered in the market. We continue to see investors utilize the strategies and potential benefits that active ETFs offer as a part of their overall asset allocation. We look forward to continuing to offer new innovative managers and strategies to the market place. We appreciate the trust and confidence our shareholders have given to us.

Best Regards,

/s/ Noah Hamman

Noah Hamman
CEO, AdvisorShares Investments

An investment in the Funds is subject to risk, including the possible loss of principal amount invested. ADRs are subject to the risk of change in political or economic conditions and exchange rates in foreign countries. Certain funds may participate in leveraged transactions to include selling securities short which creates the risk of magnified capital losses. Under certain market conditions, short sales can increase the volatility and decrease the liquidity of certain securities or positions, and may lower the Fund’s return or result in a loss. The risks associated with each Fund include the risks associated with the underlying ETFs, which can result in higher volatility, and are detailed in each Fund’s prospectus and on each Fund’s webpage.

The views in this report were those of the Fund’s CEO as of June 30, 2012 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
Accuvest Global Long Short ETF (GRV)

Accuvest Global Advisors assumed management of the AdvisorShares Accuvest Global Long/Short ETF (NYSE Arca: AGLS) as of 12/1/2011. Since then, we have seen macro headlines dominate the investment landscape. Performance in the fund was as expected for two main reasons. First, in a market that makes strong moves to the upside with little volatility, our lower net exposure will tend to dampen upside returns. This was especially evident in the first quarter. Second, as a result of our investment process, our short book was heavily skewed towards European countries. We typically don’t have such heavy geographic concentration in the bottom of the rankings. However, most countries in continental Europe exhibit very poor fundamentals, poor momentum and elevated risks. The only quality that some European countries (Spain, Italy and France) have that makes them the least bit attractive is that they are cheap. As the year unfolded, a return of volatility and a focus on European sovereign risks were positive for the relative performance of AGLS. The relief rally came to a screeching halt in the first quarter of 2012 along with a return of volatility to the market. Subsequently, our shorts outperformed substantially, allowing us to limit losses in a very difficult market.

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period July 9, 2010* to June 30, 2012

HISTORICAL PERFORMANCE
Total Return as of June 30, 2012

	1 Month			3 Month			Year to Date			1 Year			Since Inception 7/09/2010
Accuvest Global Long Short ETF NAV		-2.35	%		-0.14	%		3.16	%		3.15	%		-7.29	%
Accuvest Global Long Short ETF Market**		-7.17	%		-0.14	%		4.75	%		3.24	%		-7.25	%
MSCI World Index		5.10	%		-5.07	%		5.91	%		-4.98	%		8.44	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Returns 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 3.42% and the net expense ratio is 3.21%. (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 net expense ratio. 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.

* Mars Hill Global Relative Value ETF commenced operations on July 9, 2010.

** 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 4:00 pm 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 World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. One cannot invest directly in an index.

3

ADVISORSHARES TRUST
Accuvest Global Opportunities ETF (ACCU)

We launched the AdvisorShares Accuvest Global Opportunities ETF (NYSE Arca: ACCU) on 1/25/2012, so it has less than a full year of operational history. Performance in the fund was slightly behind our benchmark, the MSCI All Country World Index, but was still within the range of expectations for the strategy. Countries with strong Fundamentals and Momentum performed well in the first quarter, while countries with lower Risk and lower Valuations were more of a mixed bag. In the 2^nd quarter, only 2 countries had positive returns, and those were Belgium and Turkey. We saw a more balanced contribution of factors this quarter, with Momentum and Risk factors being positive contributors to performance, while Valuation factors were again negative. The most negative performing countries were also the cheapest, including two of our top holdings. Russia was down -14.5% and Korea was down -8.6%. Going forward, we will expect better relative performance as countries begin to follow their own fiscal and monetary policy paths, leading to greater return dispersion between countries.

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period January 25, 2012* to June 30, 2012

HISTORICAL PERFORMANCE
Total Return as of June 30, 2012

	1 Month			3 Month			Since Inception 1/25/2012
Accuvest Global Opportunities ETF NAV		4.67	%		-6.22	%		-2.24	%
Accuvest Global Opportunities ETF Market**		4.67	%		-6.21	%		-2.20	%
MSCI AC World Index ex USA		5.90	%		-7.61	%		3.93	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Returns 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 1.78%. (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 net expense ratio. 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.

* Accuvest Global Opportunities ETF commenced operations on January 25, 2012.

** 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 4:00 pm 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 AC World Index 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.

4

ADVISORSHARES TRUST
Active Bear ETF (HDGE)

For the fiscal year ending 06/30/2012, the AdvisorShares Active Bear ETF (NYSE Arca: HDGE) gained 3.05% while the S&P 500 Index gained 5.45%. As a short-only investment vehicle, HDGE seeks to outperform peers and relevant benchmarks on a relative basis during bull markets. During down markets and/or highly volatile market conditions characterized by fear and uncertainty, HDGE seeks to generate positive results and outperform peers and relevant benchmarks on both a relative and absolute basis.

At the beginning of the fiscal year (07/01/2011), valuations were on the high side and the market was primed for a correction, which occurred during the third quarter. The anxiety associated with the market correction was lead by a series of events such as, the downgrade of U.S. debt by Standard & Poor’s; tepid growth and stubbornly high unemployment in the U.S.; concerns regarding European sovereign debt; slowing growth in China; and, the political venom of the Presidential election year. HDGE generated positive results during the third quarter of 2011 and again during the first two months of the second quarter of 2012, during market conditions characterized by volatility, fear and uncertainty. On the other hand, HDGE incurred losses in the fourth quarter of 2011 and first quarter of 2012, as volatility, fear and uncertainty abated.

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period January 27, 2011* to June 30, 2012

HISTORICAL PERFORMANCE
Total Return as of June 30, 2012

	1 Month			3 Month			Year to Date			1 Year			Since Inception 1/27/2012
Active Bear ETF NAV		-4.50	%		13.20	%		-6.68	%		3.00	%		-4.74	%
Active Bear ETF Market**		-4.62	%		13.08	%		-6.75	%		3.05	%		-4.71	%
S&P 500		4.12	%		-2.75	%		9.49	%		5.45	%		10.13	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Returns 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 3.29%. (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 the net expense ratio. 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.

* Active Bear ETF commenced operations on January 27, 2011.

** 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 4:00 pm 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 can not invest directly in an index.

5

ADVISORSHARES TRUST
Cambria Global Tactical ETF (GTAA)

The AdvisorShares Cambria Global Tactical ETF (NYSE Arca: GTAA) was launched on 10/26/2010. For the period from July 1, 2011 through June 30, 2012, GTAA had a return of -8.07%. While it underperformed the S&P 500 Index, GTAA is a broadly diversified ETF that includes other asset classes beyond domestic equities, such as commodities, international equities, fixed income, and real estate. We believe that GTAA, over full market cycles, can provide its benefit in declining markets by assuming a defensive posture and utilizing cash as an alternative to its long positions.

Typically, volatile markets will have a negative impact on fund performance while trending markets will have a positive impact on fund performance. We have witnessed both markets during the fiscal year ended June 30, 2012, and thus positive and negative impacts to the performance of the fund across various holdings.

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period October 26, 2010* to June 30, 2012

HISTORICAL PERFORMANCE
Total Return as of June 30, 2012

	1 Month			3 Month			Year to Date			1 Year			Since Inception 10/26/2010
Cambria Global Tactical ETF NAV		1.67	%		-2.71	%		1.02	%		-7.84	%		-2.40	%
Cambria Global Tactical ETF Market**		1.63	%		-2.76	%		1.91	%		-8.07	%		-2.52	%
S&P 500 Index		4.12	%		-2.75	%		9.49	%		5.45	%		10.13	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Returns 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 1.47% and the net is 1.42%. (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 net expense ratio. 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.

* Cambria Global Tactical ETF commenced operations on October 26, 2010.

** 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 4:00 pm 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 can not invest directly in an index.

6

ADVISORSHARES TRUST
Dent Tactical ETF (DENT)

The AdvisorShares Dent Tactical ETF (NYSE Arca: DENT) lost -13.12% for the year ended 06/30/2012 while over the same period of time the S&P 500 Index gained 5.45%. This was a result of the funds timing signals being out of phase with the market. The fund admirably avoided the steep sell off during the summer of 2011, but had difficulty getting into step with the market, once it began to rally from the October through April time period.

The AdvisorShares Board of Trustees approved the closing and subsequent liquidation of DENT, and following its last day of trading on August 8, 2012, the ETF will cease operations, withdraw its assets, and distribute the remaining proceeds to shareholders on or after August 15, 2012.

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period September 16, 2009* to June 30, 2012

HISTORICAL PERFORMANCE
Total Return as of June 30, 2012

	1 Month			3 Month			Year to Date			1 Year			Since Inception 9/16/2009
DENT Tactical ETF NAV		-0.56	%		-2.78	%		-5.22	%		-13.12	%		-3.66	%
DENT Tactical ETF Market**		-0.50	%		-2.73	%		-5.33	%		-13.18	%		-3.72	%
S&P 500 Index		4.12	%		-2.75	%		9.49	%		5.45	%		10.13	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Returns 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 2.41% and the net is 1.65%. (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 net expense ratio. 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.

* DENT Tactical ETF commenced operations on September 16, 2009.

** 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 4:00 pm 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 can not invest directly in an index.

7

ADVISORSHARES TRUST
Global Echo ETF (GIVE)

The AdvisorShares Global Echo ETF (NYSE Arca: GIVE) gained 1.60% from inception (5-23-2012) through 6-30-12 on a Net Asset Value basis, and 1.98% during the same period on a Market Value basis. While it underperformed the S&P 500 Index, GIVE is a broadly diversified ETF that includes an active tactical strategy that can invest in inverse and bear market ETFs to potentially profit from market downturns, thus dampening overall portfolio volatility. We believe that over full market cycles, GIVE will achieve competitive risk-adjusted returns by actively adjusting from more defensive to more opportunistic positions.

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period May 23, 2012* to June 30, 2012

HISTORICAL PERFORMANCE
Total Return as of June 30, 2012

	1 Month			Since Inception 5/23/2012
Global Echo ETF NAV		2.07	%		1.60	%
Global Echo ETF Market**		2.18	%		1.98	%
MSCI World Index		5.10	%		8.44	%
Barclays US Aggregate Bond Index		0.04	%		8.26	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Returns 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 the net expense ratio is 1.70%. (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 net expense ratio. 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.

* Global Echo ETF commenced operations on May 23, 2012.

** 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 4:00 pm 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 World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. One cannot invest directly in an index.

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

8

ADVISORSHARES TRUST
MADRONA DOMESTIC ETF (FWDD)

The AdvisorShares Madrona Domestic ETF (NYSE Arca: FWDD) was down -2.65% for the year ended 06/30/2012. While this is less than the 5.45% return from the S&P 500 Index, FWDD has performed well in up markets. For example for Q1 2012 (01/01/12 – 03/31/12) FWDD was outperforming its Index by 2.60%. This is partly due to the fact that we were experiencing an up market for that quarter. FWDD is designed to produce higher returns by selecting companies with superior future expected earnings relative to its stock price. We believe this fund will perform best in up markets and obtain higher returns than its index. FWDD has a Beta of 1.1388 which suggests that investors have the possibility of a higher rate of return than if they were to invest in the S&P 500 Index. Along with higher returns also comes the assumption of a higher rate of risk, because FWDD is 13.9% more volatile than its index, thus signifying that FWDD has the potential to perform better in an up market than in a declining market.

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period June 21, 2011* to June 30, 2012

HISTORICAL PERFORMANCE
Total Return as of June 30, 2012

	1 Month			3 Month			Year to Date			1 Year			Since Inception 6/21/2011
Madrona Domestic ETF NAV		2.72	%		-6.08	%		7.84	%		-2.65	%		1.48	%
Madrona Domestic ETF Market**		2.72	%		-6.23	%		7.66	%		-2.76	%		1.37	%
S&P 500 Index		4.12	%		-2.75	%		9.49	%		5.45	%		10.13	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Returns 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) 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 the net expense ratio. 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.

* Madrona Domestic ETF commenced operations on June 21, 2011.

** 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 4:00 pm 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 can not invest directly in an index.

9

ADVISORSHARES TRUST
MADRONA GLOBAL BOND ETF

The AdvisorShares Madrona Global Bond ETF (NYSE: Arca: FWDB) gained 5.59% for the year ended
06/30/2012. Its benchmark, the Barclays Capital Aggregate Bond Index gained 7.47%. Barclays Capital U.S. Aggregate Bond Index is a broad-based index which is weighted according to market capitalization, and is used to represent investment grade bonds traded in the United States. While FWDB slightly underperformed its Index, the Global Bond allocation is expected to outperform its index in the future. This is due to a consistent overweight to U.S. Treasuries in most other bond ETFs, which we expect will lose value in the near future. Madrona Global Bond is diversified and balanced, offering a truly global bond allocation that we believe can produce returns greater than its index through the use of such diversification.

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period June 21, 2011* to June 30, 2012

HISTORICAL PERFORMANCE
Total Return as of June 30, 2012

	1 Month			3 Month			Year to Date			1 Year			Since Inception 6/21/2011
Madrona Global Bond ETF NAV		1.25	%		1.02	%		3.25	%		5.59	%		5.48	%
Madrona Global Bond ETF Market**		1.25	%		0.94	%		3.33	%		5.49	%		5.42	%
Barclays Capital U.S. Aggregate Bond Index		0.04	%		2.06	%		2.37	%		7.47	%		8.26	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Returns 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 is 1.15%. (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 net expense ratio. 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.

* Madrona Global Bond ETF commenced operations on June 21, 2011.

** 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 4:00 pm 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 Barclays Capital U.S. Aggregate Bond Index measures the performance of the U.S. investment grade bond market. One cannot invest directly in an index.

10

ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF

The AdvisorShares Madrona International ETF (NYSE Arca: FWDI) was down -19.11% for the year ended 06/30/2012, while its benchmark, the MSCI EAFE Index was down -13.83%. The MSCI EAFE Index is a market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada. Madrona International ETF selects a portfolio primarily composed of at least 250 of the world’s largest American Depositary Receipts (ADRs) excluding the U.S. FWDI is designed to produce higher returns than the MSCI EAFE Index by selecting international ADRs with superior future expected earnings relative to their stock prices. Using this valuation weighting system, we believe the fund can attain a higher rate of return than that of its index, which is weighted solely on market capitalization.

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period June 21, 2011* to June 30, 2012

HISTORICAL PERFORMANCE
Total Return as of June 30, 2012

	1 Month			3 Month			Year to Date			1 Year			Since Inception 6/21/2011
Madrona International ETF NAV		6.63	%		-9.26	%		3.79	%		-19.11	%		-14.95	%
Madrona International ETF Market**		0.86	%		-9.09	%		3.79	%		-18.95	%		-14.76	%
MSCI EAFE Index		7.01	%		-7.13	%		2.96	%		-13.83	%		8.84	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Returns 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 the net 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 the net expense ratio. 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.

* Madrona International ETF commenced operations on June 21, 2011.

** 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 4:00 pm 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 US & Canada. One cannot invest directly in an index.

11

ADVISORSHARES TRUST
MEIDELL TACTICAL ADVANTAGE ETF

The AdvisorShares Meidell Tactical Advantage ETF (NYSE Arca: MATH) gained +0.31% for the year ended 6/30/2012 while the S&P 500 Index gained +5.45% over the same time period. The fund was able to deliver near market returns with dramatically less volatility due to the funds ability to shift from stock to bonds and cash as dictated by changes in price behavior. Specifically, the funds quantitative signals were able to avoid the August through September decline cause by fears over the European financial crisis. Additionally, the fund increased its allocation to equities during October and November in time to participate in the January through April rally of this year.

The fund began falling behind the S&P 500 Index beginning in March as the equity markets narrowed to U.S. large-cap stocks, causing the small and mid-cap stocks to underperform. Although our faster signals began exiting the market in mid-May, our slower signals did not begin moving out of the market until late June. Therefore, half of our portfolio bore the brunt of the markets decline. This delayed sell signal was a result of the narrower market top in 2012 which lasted only two months (March and April) versus the five to six month top seen in 2011 prior to the summer sell off.

The fund is designed to outperform the stock market over a complete market cycle by avoiding large drawdowns through a unique fund selection process designed to overweight outperforming asset classes while under weighting or eliminating those that are underperforming.

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period June 23, 2011* to June 30, 2012

HISTORICAL PERFORMANCE
Total Return as of June 30, 2012

	1 Month			3 Month			Year to Date			1 Year			Since Inception 6/23/2011
Meidell Tactical Advantage ETF NAV		0.24	%		-6.44	%		2.36	%		0.31	%		0.54	%
Meidell Tactical Advantage ETF Market**		1.56	%		-5.14	%		3.82	%		1.71	%		1.95	%
S&P 500 Index		4.12	%		-2.75	%		9.49	%		5.45	%		10.13	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Returns 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 2.20% and the net is 1.60%. (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 net expense ratio. 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.

* Meidell Tactical Advantage ETF commenced operations on June 23, 2011.

** 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 4:00 pm 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 can not invest directly in an index.

12

ADVISORSHARES TRUST
Peritus High Yield ETF (HYLD)

The AdvisorShares Peritus High Yield ETF (NYSE Arca: HYLD) gained 3.27% for the period 7/1/11 to 6/30/12. After facing a broad correction in the high yield market in the summer and early fall of 2011, we have regained the ground lost, with a return of 7.25% YTD 2012. Peritus’ portfolio holdings positioned them better to withstand the market downturn in the summer of 2011, but as the market reversed and began its recovery in the fall of 2011, Peritus’ holdings initially benefited less from the massive fund inflows, as we generally hold off-the-run names, less trafficked by the index-based products. With our emphasis on credit selection and a more focused portfolio, the Peritus High Yield ETF has experienced lower volatility (as measured by standard deviation) relative to the index-based high yield ETFs. With active management, Peritus undertakes the fundamental work necessary to determine the credits’ viability and return prospects. We believe that this intensive research process, along with the significant yield advantage offered by the Peritus High Yield ETF, positions us well for the year ahead.

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period December 1, 2010* to June 30, 2012

HISTORICAL PERFORMANCE
Total Return as of June 30, 2012

	1 Month			3 Month			Year to Date			1 Year			Since Inception 12/01/2010
Peritus High Yield ETF NAV		0.81	%		0.34	%		7.25	%		3.27	%		6.63	%
Peritus High Yield ETF Market**		0.72	%		-0.04	%		6.34	%		2.75	%		6.64	%
Barclays U.S. High Yield Index		2.11	%		1.83	%		7.27	%		7.27	%		9.43	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Returns 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 1.58% and the net is 1.36%. (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 net expense ratio. 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.

* Peritus High Yield ETF commenced operations on December 1, 2010.

** 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 4:00 pm 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 Barclays U.S. High Yield Index is an unmanaged index considered representative of the universe of U.S. fixed rate, non investment grade debt. One cannot invest directly in an index.

13

ADVISORSHARES TRUST
Rockledge SectorSAM ETF (SSAM)

The AdvisorShares Rockledge SectorSAM ETF (NYSE Arca: SSAM) turned in a slightly negative -1.25% return for its first six months. SSAM underperformed its 3-Month Treasury Bill Index benchmark, which gained approximately 0.40% for the same six month period ending June 30, 2012. In a marketplace that has been overshadowed by news headlines more than specific company fundamentals, the defensive SSAM strategy achieved part of its goal, yielding returns that are uncorrelated to the broad equity markets and exhibiting half the volatility, or risk, of US equities. With more certainty in Europe, clarity on the elections here, better understanding of the Federal Reserve’s direction and stability in oil prices, Rockledge expects markets to revert to more fundamentally driven price movements. Reducing the impact of geopolitical events should result in a more conducive environment for sector rotation.

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period January 11, 2012* to June 30, 2012

HISTORICAL PERFORMANCE
Total Return as of June 30, 2012

	1 Month			3 Month			Since Inception 1/11/2012
Rockledge SectorSAM ETF NAV		-0.98	%		-2.32	%		-1.25	%
Rockledge SectorSAM ETF Market**		-0.98	%		-2.32	%		-1.21	%
Merrill Lynch 3-Month U.S. Treasury Bill Index		0.01	%		0.03	%		5.75	%

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. 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 1.80% and the net is 1.50%. (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 net expense ratio. 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.

* Rockledge SectorSAM ETF commenced operations on January 11, 2012.

** 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 4:00 pm 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 BofA Merrill Lynch 3-Month Treasury Bill Index is an unmanaged index comprised of a single issue purchased at the beginning of the month and held for a full month. One cannot invest directly in an index.

14

ADVISORSHARES TRUST
TrimTabs Float Shrink ETF (TTFS)

The AdvisorShares TrimTabs Float Shrink ETF (NYSE Arca: TTFS) gained 26.62% net of fees and 26.93% market price since its inception on October 5, 2011 through June 30, 2012. The fund outperformed the Russell 3000 Index by 3.30% and the S&P 500 Index by 3.40% in this period. Moreover, it outperformed the Buyback Achievers Index (www.mergent.com), which is “designed to track the performance of companies that. . . have repurchased 5% or more of its common stock in the trailing 12 months,” by 4.00% net of all fees. It also outperformed the Sabrient Insider Sentiment Index (www.sabrient.com), which “identifies 100 stocks. . . that reflect favorable corporate insider buying trends,” by 6.20% net of all fees.

The excess return the fund earned over the Russell 3000 Index since its inception widened to 326 basis points (bps) (3.26%) as of June 30, 2012, from 210 bps (2.10%) a month earlier. Breaking down the excess return, the difference between the total return of the fund and the Russell 3000 Index that can be attributed to security selection—choosing different securities within a sector from those in the benchmark—was 188 bps (1.88%). The difference between the total return of the fund and the Russell 3000 Index that can be attributed to sector allocation—weighting sectors differently than the benchmark—was 138 bps (1.38%). The fund has consistently generated positive excess returns from active security selection and sector allocation since its inception.

The major negative impact on TTFS performance came from a few underperforming small-cap stocks. TTFS is an equally-weighted strategy. Structurally there is a small-cap tilt from underweighting mega-cap companies. Therefore a loss in small-cap companies could be a major performance drag compared to market-cap weighted strategies.

S&P 500 Index companies spent $84.3 billion on stock buybacks in Q1 2012, down 6.2% from Q1 2011. This decline was the first year-on-year drop in two years. When stock buybacks started to decline significantly in Q1 2008, companies did not boost their spending on buybacks for another two years. Measuring the tradable float rather than shares outstanding offers investors a better way to take advantage of the shrinking supply of a company’s stock, as buybacks are historically volatile.

The float of the Russell 3000 Index shrank at an annualized rate of 2.0% in June, while companies in the fund reduced the float at an annualized rate of 9.7%. The free cash flow yield of the Russell 3000 Index dropped to 6.7% by the end of June, while companies in the fund sported a free cash flow yield of 7.9%. From a more traditional price/earnings (P/E) ratio perspective, the holdings of the fund are slightly cheaper (14.2) than the Russell 3000 Index (14.8). These statistics suggest the fund is well positioned to capture value for investors.

The Buyback Achievers Index is designed to track the performance of companies that are incorporated in the United States, trade on: NYSE or NASDAQ and have repurchased 5% or more of its common stock in the trailing 12 months. The Index is reconstituted annually and rebalanced on a quarterly basis. The Index is calculated using a modified market capitalization weighting methodology and is published by the American Stock Exchange under ticker symbol DRB.

The Sabrient All-Cap Insider/Analyst Quant-Weighted Index is a quantitatively-weighted index comprised of 100 of the top publicly traded companies in the S&P 500 Index. The Index reflects positive sentiment among those “insiders” closest to a company’s financials and business prospects, such as top management, directors, large institutional holders, and the Wall Street research analysts who follow the company. One cannot invest in an index.

(BPS) A basis point is a unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument.

Float is the total number of shares publicly available for trading. The float is calculated by subtracting restricted shares from shares outstanding.

P/E Ratio is the current ratio of a company’s price to its earnings.

15

Free cash flow yield is the free cash flow per share divided by the price of the stock. This is an average of all holdings in the portfolio as of the date shown.

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period October 5, 2011* to June 30, 2012

HISTORICAL PERFORMANCE
Total Return as of June 30, 2012

	1 Month			3 Month			Year to Date			Since Inception 10/5/2011
TrimTabs Float Shrink ETF NAV		4.81	%		-1.69	%		11.13	%		26.62	%
TrimTabs Float Shrink ETF Market**		5.06	%		-1.45	%		11.73	%		26.93	%
Russell 3000 Index		3.92	%		-3.15	%		9.32	%		11.39	%

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. 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 1.29% and the net is 0.99%. (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 net expense ratio. 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.

* TrimTabs Float Shrink ETF commenced operations on October 5, 2011.

** 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 4:00 pm 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 can not invest directly in an index.

The Russell 3000 Index measures the performance of the largest 3000 U.S. companies representing approximately 98% of the investable U.S. equity market.

16

ADVISORSHARES TRUST
WCM/BNY Mellon Focused Growth ADR ETF (AADR)

The AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF (NYSE Arca: AADR) declined by -8.36% from 06/30/2011 to the period ended 06/30/2012, outperforming the MSCI EAFE Index which declined -13.83%, or roughly 5½% net of AADR fees (MSCI EAFE is an index and does not include the management fees, which would further increase the outperformance of AADR).

Early in AADR’s fiscal year, performance was particularly aided by allocation, since the portfolio had less relative exposure to the economically sensitive sectors that offered up the greatest declines. On the other hand, country allocation was a headwind due to our limited presence (less than 5% of the portfolio) in Japan and the UK, both of which control significant weights in the index and outperformed meaningfully. Our large weighting in Switzerland also hurt. Like the US Dollar, the Swiss Franc typically does well during times of distress, but it depreciated significantly in early September 2011 when the Swiss National Bank intervened to buffer its export base.

Our exposure to emerging markets (EM) was a net positive, which may seem counter-intuitive given the significant decline in that part of the world in late 2011, but that’s consistent with past results and accounted for by the distinct nature of the holdings. Not only do they pass our test of simple-to-understand businesses with clean financials, low or no debt, and consistent earnings, but most are regionally diversified and/or derive a significant portion of their revenues from the developed world. But despite that latter point, we have always been adamant that our EM holdings will not find their way into the portfolio merely because of a seductive, top-down Gross Domestic Product (GDP) growth story, which often proves more fleeting than company factors. Instead, every EM holding must stand on its own two feet, passing our just mentioned attractive business test. As the calendar year 2011 drew to a close, stock selection contributed more, though sector allocations still helped.

The beginning of calendar 2012 was driven by a renewed appetite for risk, as cyclically-oriented and lower-quality equities led the market. The popular causes were improving economic data, undemanding valuations, and most notably, less fear about liquidity concerns in Europe. The credit for this last one goes to the European Central Bank’s new lending facility (known as the “LTRO”, for long-term refinancing operations). As would be expected, the portfolio lagged a bit during this lower-quality stretch, but once the euphoria over the LTRO came to an end, relative performance improved.

Our claim that the first few months of 2012 were a “low-quality rally” is supported by looking at the outperformance of individual companies on our broader watch list. When businesses leveraged four-to-seven times appreciate 40–50% on no meaningful news, you know you’re in the middle of a low-quality bounce. Fortunately, these kinds of environments always come and go, and tend to be fleeting. We think that’s because low-quality firms do not possess the characteristics required to deliver meaningful outperformance over a full cycle, let alone more than a few quarters.

During difficult market environments such as this one, it’s tempting to obsess over the latest analysis on the European banking crisis, the slowdown in China, or the deteriorating growth conditions in the U.S., all of which ostensibly contributed to drive the market down this past year. Let us suggest, though, that instead of that, WCM focused on exercising sound investment temperament and steadfastly remaining true to its investment process. As a result, AADR did well. We believe more investors may choose this alpha-producing AADR over other index-based options especially when the market turns down, and when lower quality stocks are likely to see significant declines.

Alpha is a measure of the difference between a portfolio’s actual returns and its expected performance, given its level of risk as measured by beta. A positive Alpha figure indicates the portfolio has performed better than its beta would predict. In contrast, a negative Alpha indicates the portfolio has underperformed, given the expectations established by beta.

17

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period July 21, 2010* to June 30, 2012

HISTORICAL PERFORMANCE
Total Return as of June 30, 2012

	1 Month			3 Month			Year to Date			1 Year			Since Inception 7/21/2010
WCM/BNY Mellon Focused Growth ADR ETF NAV		3.31	%		-7.29	%		3.41	%		-7.94	%		8.02	%
WCM/BNY Mellon Focused Growth ADR ETF Market**		3.26	%		-7.36	%		2.86	%		-8.36	%		7.98	%
MSCI EAFE Index		7.01	%		-7.13	%		2.96	%		-13.83	%		8.84	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Returns 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 3.04% and the net is 1.25%. (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 net expense ratio. 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.

* WCM/BNY Mellon Focused Growth ADR ETF commenced operations on July 21, 2010.

** 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 4:00 pm 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 US & Canada. One cannot invest directly in an index.

18

ADVISORSHARES TRUST

Shareholder Expense Examples

As a shareholder of the Fund, you incur transaction cost 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 the 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 the beginning of the period and held for the period ended June 30, 2012.

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 the 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		Ending Account Value 6/30/2012		Annualized Expense Ratio for the Period*			Expenses Paid
Accuvest Global Long Short ETF
Actual	$	1,000.00	$	1,031.60		1.50	%	$	7.58
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,017.40		1.50	%	$	7.52
Accuvest Global Opportunities ETF(1)
Actual	$	1,000.00	$	977.60		1.25	%	$	5.30
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,016.09		1.25	%	$	5.41
Active Bear ETF
Actual	$	1,000.00	$	933.20		1.68	%	$	8.27
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,016.31		1.68	%	$	8.62
Cambria Global Tactical ETF
Actual	$	1,000.00	$	1,010.20		0.99	%	$	4.95
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,019.94		0.99	%	$	4.97

19

ADVISORSHARES TRUST

Shareholder Expense Examples (continued)

Fund Name	Beginning Account Value		Ending Account Value 6/30/2012		Annualized Expense Ratio for the Period*			Expenses Paid
Dent Tactical ETF
Actual	$	1,000.00	$	947.80		1.50	%	$	7.26
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,017.40		1.50	%	$	7.52
Global Echo ETF(2)
Actual	$	1,000.00	$	1,016.80		1.50	%	$	1.57
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,003.63		1.50	%	$	1.56
Madrona Domestic ETF
Actual	$	1,000.00	$	1,078.40		1.25	%	$	6.46
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,018.65		1.25	%	$	6.27
Madrona Global Bond ETF
Actual	$	1,000.00	$	1,032.50		0.95	%	$	4.80
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,020.14		0.95	%	$	4.77
Madrona International ETF
Actual	$	1,000.00	$	1,037.90		1.25	%	$	6.33
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,018.65		1.25	%	$	6.27
Meidell Tactical Advantage ETF
Actual	$	1,000.00	$	1,023.60		1.35	%	$	6.79
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,018.15		1.35	%	$	6.77
Peritus High Yield ETF
Actual	$	1,000.00	$	1,072.50		1.35	%	$	6.96
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,018.15		1.35	%	$	6.77
Rockledge SectorSAM ETF(3)
Actual	$	1,000.00	$	987.50		1.50	%	$	6.96
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,016.35		1.50	%	$	7.07
Trimtabs Float Shrink ETF
Actual	$	1,000.00	$	1,111.30		0.99	%	$	5.20
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,019.94		0.99	%	$	4.97
WCM/BNY Mellon Focused Growth ADR ETF
Actual	$	1,000.00	$	1,034.10		1.25	%	$	6.32
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,018.65		1.25	%	$	6.27

* Expense ratios reflect expense caps through the period ended June 30, 2012.

(1) Fund commenced operations on January 26, 2012. Expenses are calculated using the Fund's annualized expense ratio, multiplied by the ending value for the period, multiplied by 157/366 (to reflect commencement of operation).

(2) Fund commenced operations on May 23, 2012. Expenses are calculated using the Fund's annualized expense ratio, multiplied by the ending value for the period, multiplied by 38/366 (to reflect commencement of operation).

(3) Fund commenced operations on January 12, 2012. Expenses are calculated using the Fund's annualized expense ratio, multiplied by the ending value for the period, multiplied by 171/366 (to reflect commencement of operation).

20

ADVISORSHARES TRUST
ACCUVEST GLOBAL LONG SHORT ETF^(a)
Schedule of Investments

June 30, 2012

Investments	Shares		Value
EXCHANGE TRADED FUNDS — 97.5%
Equity Fund — 97.5%
iShares MSCI Malaysia Index Fund		64,716	$	923,497
iShares MSCI Mexico Investable Market Index Fund		16,732		1,028,181
iShares MSCI Russia Capped Index Fund (b)		66,788		1,381,844
iShares MSCI South Africa Index Fund (b)		44,671		2,854,477
iShares MSCI South Korea Index Fund (b)		60,222		3,300,768
iShares MSCI Thailand Index Fund (b)		37,946		2,620,551
iShares MSCI U.K. Index Fund (b)		87,471		1,424,902
iShares Russell 2000 Index Fund		15,837		1,261,417
iShares S&P 500 Index Fund (b)		12,873		1,760,383
Wisdomtree India Earnings Fund		58,938		1,015,502
Total Exchange Traded Funds (Cost $17,146,394)				17,571,522
MONEY MARKET FUND — 0.0%†
Dreyfus Cash Management – Investor Class (Cost $6,620)		6,620		6,620
Total Investments Before Securities Sold, Not Yet Purchased (Cost $17,153,014)				17,578,142
Securities Sold, Not Yet Purchased
EXCHANGE TRADED FUNDS — (59.4)%
Equity Fund
iShares MSCI Austria Investable Market Index Fund		114,180		(1,643,050	)
iShares MSCI Canada Index Fund		18,421		(475,999	)
iShares MSCI Chile Investable Market Index Fund		9,500		(584,155	)
iShares MSCI France Index Fund		53,042		(1,038,562	)
iShares MSCI Hong Kong Index Fund		29,000		(475,600	)
iShares MSCI Italy Index Fund		159,589		(1,804,952	)
iShares MSCI Japan Index Fund		84,977		(799,634	)
iShares MSCI Netherlands Investable Market Index Fund		34,975		(597,233	)
iShares MSCI Spain Index Fund		67,864		(1,683,027	)
iShares MSCI Sweden Index Fund		29,534		(760,500	)
iShares MSCI Taiwan Index Fund		69,571		(850,853	)

See accompanying Notes to Financial Statements.

21

ADVISORSHARES TRUST
ACCUVEST GLOBAL LONG SHORT ETF^(a)
Schedule of Investments (continued)

June 30, 2012

Investments	Shares	Value
Equity Fund — (59.4)% (continued)
Total Securities Sold, Not Yet Purchased [Proceeds Received $(10,869,298)]		$	(10,713,565	)
Total Investments Net of Securities, Not Yet Purchased — 38.1% (Cost $6,283,716)			6,864,577
Other Assets in Excess of Liabilities — 61.9%			11,157,387
Net Assets — 100.0%		$	18,021,964

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Equity Fund		38.1	%
Money Market Fund		0.0	†
Total Investments		38.1
Other Assets in Excess of Liabilities		61.9
Net Assets		100.0	%

† Less than .05%

(a) Formerly Mars Hill Global Relative Value ETF.

(b) Represents security, or a portion thereof, segregated as collateral for securities sold, not yet purchased.

Cash of $11,049,996 has been segregated to cover requirement for open short sales as of June 30, 2012.

See accompanying Notes to Financial Statements.

22

ADVISORSHARES TRUST
ACCUVEST GLOBAL OPPORTUNITIES ETF
Schedule of Investments

June 30, 2012

Investments	Shares		Value
EXCHANGE TRADED FUNDS — 98.0%
Equity Fund — 98.0%
iShares MSCI Russia Capped Index Fund		78,990	$	1,634,303
iShares MSCI South Africa Index Fund		48,640		3,108,096
iShares MSCI South Korea Index Fund		44,128		2,418,656
iShares MSCI Thailand Investable Market Index Fund		40,174		2,774,416
iShares MSCI United Kingdom Index Fund		93,790		1,527,839
iShares S&P 500 Index Fund		12,570		1,718,948
Total Exchange Traded Funds (Cost $13,085,500)				13,182,258
MONEY MARKET FUND — 2.1%
Dreyfus Cash Management – Institutional Class (Cost $279,261)		279,261		279,261
Total Investments — 100.1% (Cost $13,364,761)				13,461,519
Liabilities in Excess of Other Assets — (0.1%)				(19,266	)
Net Assets — 100.0%			$	13,442,253

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Equity Fund		98.0	%
Money Market Fund		2.1
Total Investments		100.1
Liabilities in Excess of Other Assets		(0.1	)
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

23

ADVISORSHARES TRUST
ACTIVE BEAR ETF
Schedule of Investments

June 30, 2012

Investments	Shares		Value
MONEY MARKET FUND — 58.7%
Fidelity Institutional Government Money Market Portfolio – Class III		183,818,915	$	183,818,915
Total Investments Before Securities Sold, Not Yet Purchased (Cost $183,818,915)
Securities Sold, Not Yet Purchased — (96.2)%
COMMON STOCKS — (96.2)%
Aerospace/Defense — (7.0)%
Rockwell Collins, Inc.		277,000		(13,669,950	)
Spirit Aerosystems Holdings, Inc., Class A*		347,978		(8,292,315	)
Total Aerospace/Defense				(21,962,265	)
Apparel — (4.2)%
Hanesbrands, Inc.*		202,943		(5,627,609	)
Steven Madden Ltd.*		241,200		(7,658,100	)
Total Apparel				(13,285,709	)
Auto Parts & Equipment — (3.4)%
Goodyear Tire & Rubber Co. (The)*		905,146		(10,689,774	)
Banks — (9.8)%
Citigroup, Inc.		681,595		(18,682,519	)
Deutsche Bank AG (Germany)(a)		330,000		(11,936,100	)
Total Banks				(30,618,619	)
Beverages — (2.9)%
Green Mountain Coffee Roasters, Inc.*		412,000		(8,973,360	)
Chemicals — (3.6)%
International Flavors & Fragrances, Inc.		205,000		(11,234,000	)
Commercial Services — (2.6)%
Ritchie Bros Auctioneers, Inc. (Canada)		386,000		(8,202,500	)
Computers — (2.1)%
Riverbed Technology, Inc.*		417,000		(6,734,550	)
Distribution/Wholesale — (1.9)%
Fossil, Inc.*		76,000	$	(5,817,040	)

See accompanying Notes to Financial Statements.

24

ADVISORSHARES TRUST
ACTIVE BEAR ETF
Schedule of Investments (continued)

June 30, 2012

Investments	Shares		Value
Electrical Components & Equipment — (4.9)%
Energizer Holdings, Inc.*		112,385	$	(8,456,971	)
Graftech International Ltd.*		701,539		(6,769,851	)
Total Electrical Components & Equipment				(15,226,822	)
Engineering & Construction — (2.8)%
Mastec, Inc.*		587,000		(8,828,480	)
Environmental Control — (2.4)%
Clean Harbors, Inc.*		132,500		(7,475,650	)
Food — (1.9)%
Sysco Corp.		203,590		(6,069,018	)
Healthcare — Products — (8.4)%
Hologic, Inc.*		373,525		(6,738,391	)
NxStage Medical, Inc.*		516,222		(8,651,881	)
Steris Corp.		116,511		(3,654,950	)
Varian Medical Systems, Inc.*		119,000		(7,231,630	)
Total Healthcare – Products				(26,276,852	)
Healthcare — Services — (1.3)%
Mednax, Inc.*		58,500		(4,009,590	)
Home Builders — (1.6)%
Pultegroup, Inc.*		461,000		(4,932,700	)
Internet — (10.9)%
Ancestry.com, Inc.*		136,181		(3,749,063	)
Broadsoft, Inc.*		231,500		(6,704,240	)
Constant Contact, Inc.*		384,386		(6,872,822	)
HomeAway, Inc.*		311,500		(6,772,010	)
Netflix, Inc.*		79,428		(5,438,435	)
Splunk, Inc.*		163,561		(4,596,064	)
Total Internet				(34,132,634	)

See accompanying Notes to Financial Statements.

25

ADVISORSHARES TRUST
ACTIVE BEAR ETF
Schedule of Investments (continued)

June 30, 2012

Investments	Shares		Value
Machinery – Diversified — (2.5)%
Flowserve Corp.		69,500	$	(7,975,125	)
Miscellaneous Manufacturing — (0.8)%
Aptargroup, Inc.		50,000		(2,552,500	)
Retail — (10.6)%
Best Buy Co., Inc.		405,116		(8,491,231	)
CarMax, Inc.*		413,500		(10,726,190	)
Tiffany & Co.		127,909		(6,772,782	)
Williams-Sonoma, Inc.		203,367		(7,111,744	)
Total Retail				(33,101,947	)
Software — (1.8)%
Salesforce.com, Inc.*		41,200		(5,696,312	)
Telecommunications — (8.8)%
Acme Packet, Inc.*		360,000		(6,714,000	)
Finisar Corp.*		299,000		(4,473,040	)
Telefonaktiebolaget LM Ericsson (Sweden)(b)		1,127,000		(10,289,510	)
ViaSat, Inc.*		160,500		(6,062,086	)
Total Telecommunications				(27,538,636	)
Total Securities Sold, Not Yet Purchased [Proceeds Received $(307,924,664)]				(301,334,083	)
Total Investments — (37.5)% [Cost $(124,105,749)]				(117,515,168	)
Other Assets in Excess of Liabilities — 137.5%				430,738,651
Net Assets — 100.0%			$	313,223,483

ADR — American Depositary Receipt

* Non-income producing security

(a) Registered Shares

(b) American Depositary Receipt

See accompanying Notes to Financial Statements.

26

ADVISORSHARES TRUST
ACTIVE BEAR ETF
Schedule of Investments (continued)

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Aerospace/Defense		(7.0	)%
Apparel		(4.2	)
Auto Parts & Equipment		(3.4	)
Banks		(9.8	)
Beverages		(2.9	)
Chemicals		(3.6	)
Commercial Services		(2.6	)
Computers		(2.1	)
Distribution/Wholesale		(1.9	)
Electrical Components & Equipment		(4.9	)
Engineering & Construction		(2.8	)
Environmental Control		(2.4	)
Food		(1.9	)
Healthcare – Products		(8.4	)
Healthcare – Services		(1.3	)
Home Builders		(1.6	)
Internet		(10.9	)
Machinery – Diversified		(2.5	)
Miscellaneous Manufacturing		(0.8	)
Retail		(10.6	)
Software		(1.8	)
Telecommunications		(8.8	)
Money Market Fund		58.7
Total Investments		(37.5	)
Other Assets in Excess of Liabilities		137.5
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

27

ADVISORSHARES TRUST
CAMBRIA GLOBAL TACTICAL ETF
Schedule of Investments

June 30, 2012

Investments	Shares		Value
EXCHANGE TRADED FUNDS — 89.6%
Currency Fund — 5.8%
CurrencyShares Japanese Yen Trust*		2,466	$	303,170
PowerShares DB US Dollar Index Bullish Fund*		189,162		4,250,470
Total Currency Fund				4,553,640
Debt Fund — 44.8%
iShares Barclays 1 – 3 Year Treasury Bond Fund		23,767		2,005,222
iShares Barclays 20+ Year Treasury Bond Fund		20,826		2,607,415
iShares Barclays 3 – 7 Year Treasury Bond Fund		16,297		2,004,531
iShares Barclays 7 – 10 Year Treasury Bond Fund		18,561		2,003,289
iShares Barclays Aggregate Bond Fund		18,043		2,008,186
iShares Barclays MBS Bond Fund		19,558		2,120,870
iShares Barclays TIPS Bond Fund		17,574		2,103,608
iShares iBoxx $ High Yield Corporate Bond Fund		34,264		3,125,562
iShares iBoxx $ Investment Grade Corporate Bond Fund		26,497		3,117,637
PIMCO Enhanced Short Maturity Strategy Fund		19,856		2,007,241
PowerShares Emerging Markets Sovereign Debt Portfolio		108,374		3,124,422
PowerShares Fundamental High Yield Corporate Bond Portfolio		144,911		2,714,183
SPDR Barclays Capital International Treasury Bond ETF		34,425		2,035,895
Vanguard Short-Term Bond ETF		24,731		2,006,426
Vanguard Total Bond Market ETF		23,792		2,007,569
Total Debt Fund				34,992,056
Equity Fund — 39.0%
Consumer Discretionary Select Sector SPDR Fund		28,454		1,245,716
Consumer Staples Select Sector SPDR Fund		45,222		1,572,369
Financial Select Sector SPDR Fund		32,744		478,717
Health Care Select Sector SPDR Fund		20,600		782,800
iShares FTSE NAREIT Mortgage Plus Capped Index Fund		174,202		2,471,926
iShares FTSE NAREIT Residential Plus Capped Index Fund		51,422		2,473,398
iShares MSCI All Peru Capped Index Fund		5,522		234,519
iShares MSCI Malaysia Index Fund		32,661		466,073
iShares MSCI Mexico Investable Market Index Fund		7,931		487,360
iShares MSCI South Africa Index Fund		3,455		220,775

See accompanying Notes to Financial Statements.

28

ADVISORSHARES TRUST
CAMBRIA GLOBAL TACTICAL ETF
Schedule of Investments (continued)

June 30, 2012

Investments	Shares		Value
Equity Fund — 39.0% (continued)
iShares MSCI Thailand Investable Market Index Fund		8,948	$	617,949
iShares MSCI Turkey Investable Market Index Fund		6,049		316,605
iShares Russell Microcap(R) Index Fund		25,145		1,258,256
PowerShares FTSE RAFI US 1000 Portfolio		16,396		953,757
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio		14,689		947,587
PowerShares QQQ Trust, Series 1		10,113		648,850
SPDR Dow Jones International Real Estate ETF		55,000		2,022,900
Technology Select Sector SPDR Fund		42,899		1,233,346
Utilities Select Sector SPDR Fund		11,303		418,098
Vanguard Global ex-U.S. Real Estate ETF		39,864		1,899,918
Vanguard Mid-Cap ETF		12,066		931,495
Vanguard REIT ETF		107,883		7,058,785
Vanguard Small-Cap ETF		6,299		478,976
Vanguard Total Stock Market ETF		17,790		1,239,963
Total Equity Fund				30,460,138
Total Exchange Traded Funds (Cost $67,678,401)				70,005,834
MONEY MARKET FUND — 10.5%
Invesco Government & Agency Portfolio – Private Investment Class (Cost $8,250,175)		8,250,175		8,250,175
Total Investments — 100.1% (Cost $75,928,576)				78,256,009
Liabilities in Excess of Other Assets — (0.1%)				(85,061	)
Net Assets — 100.0%			$	78,170,948

ETF — Exchange Traded Fund

MBS — Mortgage Backed Securities

REIT — Real Estate Investment Trust

TIPS — Treasury Inflation Protected Securities

* Non-income producing security

See accompanying Notes to Financial Statements.

29

ADVISORSHARES TRUST
CAMBRIA GLOBAL TACTICAL ETF
Schedule of Investments (continued)

June 30, 2012

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Currency Fund		5.8	%
Debt Fund		44.8
Equity Fund		39.0
Money Market Fund		10.5
Total Investments		100.1
Liabilities in Excess of Other Assets		(0.1	)
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

30

ADVISORSHARES TRUST
DENT TACTICAL ETF
Schedule of Investments

June 30, 2012

Investments	Shares		Value
EXCHANGE TRADED FUNDS — 29.6%
Equity Fund — 29.6%
iShares Russell 1000 Index Fund		4,419	$	332,353
iShares S&P 100 Index Fund		5,285		330,154
iShares S&P 500 Growth Index Fund		4,462		328,002
iShares S&P 500 Index Fund		2,410		329,567
iShares S&P 500 Value Index Fund		5,271		328,278
iShares S&P SmallCap 600 Growth Index Fund		4,097		330,751
Total Exchange Traded Funds (Cost $1,910,323)				1,979,105
MONEY MARKET FUND — 28.2%
Goldman Sachs Financial Square Money Market Fund – Institutional Class (Cost $1,882,099)		1,882,099		1,882,099
Total Investments — 57.8% (Cost $3,792,422)				3,861,204
Other Assets in Excess of Liabilities — 42.2%				2,817,647
Net Assets — 100.0%			$	6,678,851

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Equity Fund		29.6	%
Money Market Fund		28.2
Total Investments		57.8
Other Assets in Excess of Liabilities		42.2
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

31

ADVISORSHARES TRUST
ADVISORSHARES GLOBAL ECHO ETF
Schedule of Investments

June 30, 2012

Investments	Shares		Value
COMMON STOCKS — 45.7%
Auto Manufacturers — 0.7%
Ford Motor Co.		3,720	$	35,675
Auto Parts & Equipment — 1.5%
Johnson Controls, Inc.		2,661		73,736
Banks — 1.9%
Banco Bradesco SA (Brazil)(a)		3,041		45,219
City National Corp.		519		25,213
Itau Unibanco Holding SA (Brazil)(a)		1,816		25,279
Total Banks				95,711
Biotechnology — 2.4%
Life Technologies Corp.*		933		41,976
Novozymes A/S (Denmark)(a)		3,139		80,986
Total Biotechnology				122,962
Building Materials — 0.7%
TOTO Ltd. (Japan)(a)		484		36,092
Commercial Services — 2.1%
Automatic Data Processing, Inc.		699		38,906
MasterCard, Inc., Class A		98		42,151
Zipcar, Inc.*		2,293		26,897
Total Commercial Services				107,954
Computers — 3.1%
Apple, Inc.*		120		70,080
EMC Corp.*		1,539		39,444
Maxwell Technologies, Inc.*		3,585		23,518
Stratasys, Inc.*		544		26,955
Total Computers				159,997
Cosmetics/Personal Care — 1.0%
Procter & Gamble Co. (The)		856		52,430
Distribution/Wholesale — 1.0%
LKQ Corp.*		1,483		49,532

See accompanying Notes to Financial Statements.

32

ADVISORSHARES TRUST
ADVISORSHARES GLOBAL ECHO ETF
Schedule of Investments (continued)

June 30, 2012

Investments	Shares		Value
Electronics — 1.2%
Itron, Inc.*		1,467	$	60,499
Engineering & Construction — 0.5%
Aegion Corp., Class A*		1,514		27,086
Environmental Control — 0.5%
Tomra Systems ASA (Norway)(a)		3,004		25,744
Food — 4.2%
Annie's, Inc.*		749		31,353
Hain Celestial Group, Inc. (The)*		847		46,619
Nestle SA (Switzerland)(a)		658		39,309
Smart Balance, Inc.*		3,573		33,550
United Natural Foods, Inc.*		1,164		63,857
Total Food				214,688
Healthcare – Products — 0.7%
Covidien PLC (Ireland)		708		37,878
Healthcare – Services — 0.8%
Laboratory Corp. of America Holdings*		428		39,637
Home Builders — 0.8%
Daiwa House Industry Co. Ltd. (Japan)(a)		282		39,833
Internet — 1.5%
F5 Networks, Inc.*		336		33,452
Google, Inc., Class A*		70		40,605
Total Internet				74,057
Miscellaneous Manufacturing — 1.1%
Aptargroup, Inc.		749		38,236
Pure Technologies Ltd. (Canada)*		3,754		16,086
Total Miscellaneous Manufacturing				54,322
Office Furnishings — 0.1%
Virco Manufacturing Corp.*		2,153		3,488

See accompanying Notes to Financial Statements.

33

ADVISORSHARES TRUST
ADVISORSHARES GLOBAL ECHO ETF
Schedule of Investments (continued)

June 30, 2012

Investments	Shares		Value
Office/Business Equipment — 0.5%
Canon, Inc. (Japan)(a)		616	$	24,603
Oil & Gas — 1.4%
Devon Energy Corp.		577		33,460
EnCana Corp. (Canada)		1,886		39,286
Total Oil & Gas				72,746
Pharmaceuticals — 4.5%
GlaxoSmithKline PLC (United Kingdom)(a)		1,127		51,357
Johnson & Johnson		667		45,063
Novartis AG (Switzerland)(a)		938		52,434
Perrigo Co.		337		39,742
Teva Pharmaceutical Industries Ltd. (Israel)(a)		1,013		39,953
Total Pharmaceuticals				228,549
Retail — 2.5%
Coinstar, Inc.*		305		20,941
CVS Caremark Corp.		1,111		51,917
Home Depot, Inc. (The)		731		38,736
J.C. Penney Co., Inc.		580		13,520
Total Retail				125,114
Semiconductors — 2.6%
Broadcom Corp., Class A		1,137		38,431
Cree, Inc.*		1,022		26,235
Intel Corp.		1,414		37,683
NXP Semiconductors NV (Netherlands)*		1,193		27,737
Total Semiconductors				130,086
Software — 1.1%
Adobe Systems, Inc.*		667		21,591
Citrix Systems, Inc.*		247		20,733
Informatica Corp.*		330		13,979
Total Software				56,303
Telecommunications — 4.5%
Cisco Systems, Inc.		3,875		66,534

See accompanying Notes to Financial Statements.

34

ADVISORSHARES TRUST
ADVISORSHARES GLOBAL ECHO ETF
Schedule of Investments (continued)

June 30, 2012

Investments	Shares		Value
Telecommunications — 4.5% (continued)
Corning, Inc.		1,917	$	24,787
Millicom International Cellular S.A. (Luxembourg)		455		42,734
Telefonica Brasil SA (Brazil)(a)		1,295		32,038
Telenor ASA (Norway)(a)		1,232		61,267
Total Telecommunications				227,360
Transportation — 1.1%
Canadian National Railway Co. (Canada)		287		24,217
Union Pacific Corp.		248		29,589
Total Transportation				53,806
Water — 1.7%
American Water Works Co., Inc.		593		20,328
Severn Trent PLC (United Kingdom)(a)		2,450		63,520
Total Water				83,848
Total Common Stocks (Cost $2,252,288)				2,313,736
MONEY MARKET FUNDS — 26.3%
Federated Government Obligations Fund		811,927		811,927
Fidelity Institutional Money Market Government Portfolio – Class I		146,807		146,807
Fidelity Institutional Money Market Portfolio – Institutional Class		380,526		380,525
Total Money Market Funds (Cost $1,339,259)				1,339,259
MORTGAGE BACKED SECURITIES — 5.3%
Government National Mortgage Association, Pool G2-783417, 4.50%, 08/20/41 (Cost $270,583)		246,720		271,646
COMMERCIAL MORTGAGE BACKED SECURITIES — 6.6%
Government National Mortgage Association, Class B, Series 2011-64, 4.00%@, 10/16/44 (Cost $330,330)		300,000		335,350
MUNICIPAL BONDS — 5.1%
Kirkwood Community College, GO Bonds, 5.40%, 06/01/13		90,000		93,870
Tippecanoe County School Building Corp., Revenue Bonds, (State Aid Withholding) 4.54%, 01/15/17		150,000		167,864
Total Municipal Bonds (Cost $263,257)				261,734

See accompanying Notes to Financial Statements.

35

ADVISORSHARES TRUST
ADVISORSHARES GLOBAL ECHO ETF
Schedule of Investments (continued)

June 30, 2012

Investments	Shares		Value
ASSET BACKED SECURITIES — 3.7%
SBA 100087, 4.58%, 09/25/36 (Cost $185,883)		173,538	$	186,499
EXCHANGE TRADED FUNDS — 9.7%
Equity Fund — 9.7%
Active Bear ETF (The)*†		1,846		43,049
Global X Lithium ETF		1,852		27,576
Guggenheim S&P Global Water Index ETF		960		19,670
PowerShares Cleantech Portfolio		874		18,468
PowerShares Global Clean Energy Portfolio		6,450		49,085
PowerShares Water Resources Portfolio		1,757		31,890
PowerShares Wilderhill Clean Energy Portfolio		8,060		35,625
Proshares Short FTSE China 25*		691		30,411
Proshares Short Midcap 400*		1,629		45,677
Proshares Short MSCI EAFE*		1,780		86,616
Proshares Short MSCI Emerging Markets*		1,310		40,649
Proshares Short QQQ*		200		5,320
Proshares Short Russell 2000*		261		6,932
Proshares Short S&P 500*		800		29,184
Proshares Short Smallcap 600*		1,051		24,257
Total Equity Fund				494,409
Total Exchange Traded Funds (Cost $502,573)				494,409
Total Investments — 102.4% (Cost $5,144,173)				5,202,633
Liabilities in Excess of Other Assets — (2.4%)				(123,016	)
Net Assets — 100.0%			$	5,079,617

ETF – Exchange Traded Fund

(a) American Depositary Receipt

* Non-income producing security

@ Variable rate instrument. The interest rate shown reflects the rate in effect at June 30, 2012.

† Affiliated company.

See accompanying Notes to Financial Statements.

36

ADVISORSHARES TRUST
ADVISORSHARES GLOBAL ECHO ETF
Schedule of Investments (continued)

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Asset Backed Securities		3.7	%
Auto Manufacturers		0.7
Auto Parts & Equipment		1.5
Banks		1.9
Biotechnology		2.4
Building Materials		0.7
Commercial Mortgage Backed Securities		6.6
Commercial Services		2.1
Computers		3.1
Cosmetics/Personal Care		1.0
Distribution / Wholesale		1.0
Electronics		1.2
Engineering & Construction		0.5
Environmental Control		0.5
Equity Fund		9.7
Food		4.2
Healthcare – Products		0.7
Healthcare – Services		0.8
Home Builders		0.8
Internet		1.5
Miscellaneous Manufacturing		1.1
Mortgage Backed Securities		5.3
Municipal Bonds		5.1
Office Furnishings		0.1
Office/Business Equipment		0.5
Oil & Gas		1.4
Pharmaceuticals		4.5
Retail		2.5
Semiconductors		2.6
Software		1.1
Telecommunications		4.5
Transportation		1.1
Water		1.7
Money Market Fund		26.3
Total Investments		102.4
Liabilities in Excess of Other Assets		(2.4	)
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

37

ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments

June 30, 2012

Investments	Shares		Value
COMMON STOCKS — 99.4%
Advertising — 0.2%
Omnicom Group, Inc.		536	$	26,050
Aerospace/Defense — 2.1%
Boeing Co. (The)		391		29,051
General Dynamics Corp.		556		36,674
Goodrich Corp.		298		37,816
L-3 Communications Holdings, Inc.		281		20,797
Lockheed Martin Corp.		285		24,818
Northrop Grumman Corp.		140		8,931
Raytheon Co.		634		35,878
Rockwell Collins, Inc.		567		27,981
TransDigm Group, Inc.*		447		60,032
United Technologies Corp.		487		36,783
Total Aerospace/Defense				318,761
Agriculture — 1.1%
Altria Group, Inc.		700		24,185
Archer-Daniels-Midland Co.		667		19,690
Bunge Ltd. (Bermuda)		774		48,561
Lorillard, Inc.		248		32,723
Philip Morris International, Inc.		282		24,607
Reynolds American, Inc.		523		23,467
Total Agriculture				173,233
Airlines — 1.3%
Delta Air Lines, Inc.*		7,112		77,876
Southwest Airlines Co.		9,550		88,051
United Continental Holdings, Inc.*		1,099		26,739
Total Airlines				192,666
Apparel — 0.7%
Coach, Inc.		485		28,363
Nike, Inc., Class B		289		25,368
Ralph Lauren Corp.		177		24,791
VF Corp.		241		32,161
Total Apparel				110,683

See accompanying Notes to Financial Statements.

38

ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

June 30, 2012

Investments	Shares		Value
Auto Manufacturers — 1.0%
Ford Motor Co.		3,520	$	33,757
General Motors Co.*		3,127		61,664
PACCAR, Inc.		1,358		53,220
Total Auto Manufacturers				148,641
Auto Parts & Equipment — 0.8%
BorgWarner, Inc.*		663		43,486
Johnson Controls, Inc.		1,787		49,518
TRW Automotive Holdings Corp.*		728		26,761
Total Auto Parts & Equipment				119,765
Banks — 4.4%
Bank of America Corp.		2,885		23,599
Bank of New York Mellon Corp. (The)		2,111		46,336
BB&T Corp.		1,308		40,352
Capital One Financial Corp.		697		38,098
CIT Group, Inc.*		366		13,044
Citigroup, Inc.		1,253		34,345
Comerica, Inc.		525		16,123
Fifth Third Bancorp		1,852		24,817
Goldman Sachs Group, Inc. (The)		336		32,209
Huntington Bancshares, Inc.		3,441		22,022
JPMorgan Chase & Co.		720		25,726
KeyCorp		2,103		16,277
M&T Bank Corp.		421		34,762
Morgan Stanley		2,761		40,283
Northern Trust Corp.		926		42,615
PNC Financial Services Group, Inc.		345		21,083
Regions Financial Corp.		3,443		23,240
State Street Corp.		1,082		48,300
SunTrust Banks, Inc.		1,896		45,940
US Bancorp		1,107		35,601
Wells Fargo & Co.		1,395		46,649
Total Banks				671,421
Beverages — 1.5%
Beam, Inc.		317		19,809
Brown-Forman Corp., Class B		180		17,433

See accompanying Notes to Financial Statements.

39

ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

June 30, 2012

Investments	Shares		Value
Beverages — 1.5% (continued)
Coca-Cola Co. (The)		272	$	21,268
Coca-Cola Enterprises, Inc.		1,212		33,984
Dr Pepper Snapple Group, Inc.		743		32,506
Green Mountain Coffee Roasters, Inc.*		1,734		37,767
Molson Coors Brewing Co., Class B		523		21,762
Monster Beverage Corp.*		334		23,781
PepsiCo, Inc.		186		13,143
Total Beverages				221,453
Biotechnology — 2.4%
Alexion Pharmaceuticals, Inc.*		211		20,952
Amgen, Inc.		580		42,363
Biogen Idec, Inc.*		201		29,021
Celgene Corp.*		806		51,713
Gilead Sciences, Inc.*		1,114		57,126
Illumina, Inc.*		358		14,460
Life Technologies Corp.*		863		38,826
Vertex Pharmaceuticals, Inc.*		2,008		112,287
Total Biotechnology				366,748
Chemicals — 3.8%
Air Products & Chemicals, Inc.		347		28,013
Airgas, Inc.		380		31,924
Albemarle Corp.		726		43,299
Celanese Corp., Series A		1,163		40,263
CF Industries Holdings, Inc.		378		73,234
Dow Chemical Co. (The)		929		29,264
E.I. du Pont de Nemours & Co.		644		32,567
Eastman Chemical Co.		639		32,186
Ecolab, Inc.		516		35,361
FMC Corp.		570		30,484
Monsanto Co.		308		25,496
Mosaic Co. (The)		1,000		54,760
PPG Industries, Inc.		401		42,554
Praxair, Inc.		216		23,486
Sherwin-Williams Co. (The)		268		35,470
Sigma-Aldrich Corp.		283		20,922
Total Chemicals				579,283

See accompanying Notes to Financial Statements.

40

ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

June 30, 2012

Investments	Shares		Value
Commercial Services — 2.5%
Alliance Data Systems Corp.*		395	$	53,325
Automatic Data Processing, Inc.		375		20,873
Hertz Global Holdings, Inc.*		4,568		58,470
MasterCard, Inc., Class A		106		45,592
Moody's Corp.		859		31,396
Paychex, Inc.		611		19,192
Verisk Analytics, Inc., Class A*		459		22,610
Visa, Inc., Class A		410		50,688
Weight Watchers International, Inc.		469		24,182
Western Union Co. (The)		2,925		49,257
Total Commercial Services				375,585
Computers — 3.1%
Apple, Inc.*		128		74,752
Cognizant Technology Solutions Corp., Class A*		599		35,940
Dell, Inc.*		1,674		20,958
EMC Corp.*		1,450		37,164
Hewlett-Packard Co.		3,346		67,288
IHS, Inc., Class A*		377		40,614
International Business Machines Corp.		187		36,573
NetApp, Inc.*		1,025		32,616
SanDisk Corp.*		1,165		42,499
Teradata Corp.*		374		26,932
Western Digital Corp.*		1,585		48,311
Total Computers				463,647
Cosmetics/Personal Care — 0.6%
Avon Products, Inc.		1,584		25,676
Colgate-Palmolive Co.		187		19,467
Estee Lauder Cos., Inc. (The), Class A		409		22,135
Procter & Gamble Co. (The)		307		18,804
Total Cosmetics/Personal Care				86,082
Distribution/Wholesale — 0.5%
Fastenal Co.		338		13,625
Fossil, Inc.*		302		23,115

See accompanying Notes to Financial Statements.

41

ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

June 30, 2012

Investments	Shares		Value
Distribution/Wholesale — 0.5% (continued)
Genuine Parts Co.		325	$	19,581
W.W. Grainger, Inc.		125		23,905
Total Distribution/Wholesale				80,226
Diversified Financial Services — 3.1%
Affiliated Managers Group, Inc.*		400		43,780
American Express Co.		701		40,805
Ameriprise Financial, Inc.		1,003		52,417
BlackRock, Inc.		155		26,322
Charles Schwab Corp. (The)		2,126		27,489
CME Group, Inc.		85		22,789
Discover Financial Services		1,506		52,078
Franklin Resources, Inc.		286		31,743
IntercontinentalExchange, Inc.*		236		32,091
Invesco Ltd. (Bermuda)		1,488		33,629
NYSE Euronext		1,417		36,247
SLM Corp.		641		10,070
T. Rowe Price Group, Inc.		440		27,703
TD Ameritrade Holding Corp.		1,601		27,217
Total Diversified Financial Services				464,380
Electric — 2.1%
AES Corp. (The)*		3,529		45,277
American Electric Power Co., Inc.		287		11,451
Calpine Corp.*		1,420		23,444
CMS Energy Corp.		698		16,403
Consolidated Edison, Inc.		171		10,635
Dominion Resources, Inc.		259		13,986
DTE Energy Co.		188		11,154
Duke Energy Corp.*		582		13,421
Edison International		271		12,520
FirstEnergy Corp.		194		9,543
NextEra Energy, Inc.		256		17,615
Northeast Utilities		410		15,912
PG&E Corp.		338		15,301
PPL Corp.		638		17,743
Progress Energy, Inc.		186		11,192
Public Service Enterprise Group, Inc.		353		11,473

See accompanying Notes to Financial Statements.

42

ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

June 30, 2012

Investments	Shares		Value
Electric — 2.1% (continued)
SCANA Corp.		247	$	11,816
Southern Co. (The)		293		13,566
Wisconsin Energy Corp.		386		15,274
Xcel Energy, Inc.		541		15,370
Total Electric				313,096
Electrical Components & Equipment — 0.5%
AMETEK, Inc.		686		34,238
Emerson Electric Co.		867		40,385
Total Electrical Components & Equipment				74,623
Electronics — 1.8%
Agilent Technologies, Inc.		1,093		42,889
Amphenol Corp., Class A		691		37,950
Honeywell International, Inc.		822		45,900
Mettler-Toledo International, Inc.*		163		25,404
Thermo Fisher Scientific, Inc.		875		45,421
Trimble Navigation Ltd.*		952		43,802
Waters Corp.*		324		25,748
Total Electronics				267,114
Engineering & Construction — 0.5%
Fluor Corp.		749		36,956
Jacobs Engineering Group, Inc.*		1,082		40,964
Total Engineering & Construction				77,920
Environmental Control — 0.5%
Republic Services, Inc.		797		21,089
Stericycle, Inc.*		315		28,876
Waste Management, Inc.		565		18,871
Total Environmental Control				68,836
Food — 2.2%
Campbell Soup Co.		409		13,652
ConAgra Foods, Inc.		671		17,399
General Mills, Inc.		485		18,692
H.J. Heinz Co.		379		20,610
Hershey Co. (The)		240		17,287
Hillshire Brands Co.		150		4,349

See accompanying Notes to Financial Statements.

43

ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

June 30, 2012

Investments	Shares		Value
Food — 2.2% (continued)
Hormel Foods Corp.		940	$	28,595
JM Smucker Co. (The)		205		15,482
Kellogg Co.		409		20,176
Kraft Foods, Inc., Class A		805		31,089
Kroger Co. (The)		1,797		41,672
McCormick & Co., Inc.		356		21,591
DE Master Blenders 1753 NV (Netherlands)*		750		8,481
Sysco Corp.		545		16,247
Tyson Foods, Inc., Class A		1,981		37,302
Whole Foods Market, Inc.		232		22,114
Total Food				334,738
Forest Products & Paper — 0.1%
International Paper Co.		400		11,564
Gas — 0.4%
CenterPoint Energy, Inc.		555		11,472
NiSource, Inc.		1,111		27,497
Sempra Energy		308		21,215
Total Gas				60,184
Hand/Machine Tools — 0.2%
Stanley Black & Decker, Inc.		563		36,235
Healthcare – Products — 3.2%
Baxter International, Inc.		485		25,778
Becton Dickinson and Co.		363		27,134
Boston Scientific Corp.*		2,771		15,712
C.R. Bard, Inc.		275		29,546
CareFusion Corp.*		1,449		37,210
DENTSPLY International, Inc.		667		25,219
Edwards Lifesciences Corp.*		548		56,609
Henry Schein, Inc.*		374		29,355
Hologic, Inc.*		1,158		20,890
Hospira, Inc.*		768		26,865
Intuitive Surgical, Inc.*		43		23,813
Medtronic, Inc.		733		28,389
St. Jude Medical, Inc.		773		30,851
Stryker Corp.		672		37,027

See accompanying Notes to Financial Statements.

44

ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

June 30, 2012

Investments	Shares		Value
Healthcare – Products — 3.2% (continued)
Varian Medical Systems, Inc.*		526	$	31,965
Zimmer Holdings, Inc.		584		37,586
Total Healthcare – Products				483,949
Healthcare – Services — 2.8%
Aetna, Inc.		1,058		41,019
Cigna Corp.		1,087		47,828
DaVita, Inc.*		470		46,159
HCA Holdings, Inc.		2,753		83,774
Humana, Inc.		452		35,003
Laboratory Corp. of America Holdings*		434		40,193
Quest Diagnostics, Inc.		621		37,198
UnitedHealth Group, Inc.		785		45,922
WellPoint, Inc.		697		44,461
Total Healthcare – Services				421,557
Home Furnishings — 0.1%
Whirlpool Corp.		277		16,941
Household Products/Wares — 0.4%
Church & Dwight Co., Inc.		452		25,073
Clorox Co. (The)		289		20,941
Kimberly-Clark Corp.		221		18,513
Total Household Products/Wares				64,527
Insurance — 4.4%
Aflac, Inc.		1,196		50,938
Allstate Corp. (The)		1,498		52,565
American International Group, Inc.*		1,587		50,927
Aon PLC		583		27,273
Berkshire Hathaway, Inc., Class B*		145		12,083
Chubb Corp. (The)		545		39,687
Cincinnati Financial Corp.		335		12,753
CNA Financial Corp.		1,014		28,108
Hartford Financial Services Group, Inc. (The)		3,712		65,442
Lincoln National Corp.		2,137		46,736
Marsh & McLennan Cos., Inc.		930		29,974
MetLife, Inc.		1,553		47,910
Principal Financial Group, Inc.		1,873		49,129

See accompanying Notes to Financial Statements.

45

ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

June 30, 2012

Investments	Shares		Value
Insurance — 4.4% (continued)
Progressive Corp. (The)		770	$	16,039
Prudential Financial, Inc.		884		42,812
Travelers Cos., Inc. (The)		727		46,412
Unum Group		2,203		42,143
Total Insurance				660,931
Internet — 2.2%
Amazon.com, Inc.*		42		9,591
eBay, Inc.*		1,053		44,237
Equinix, Inc.*		119		20,902
F5 Networks, Inc.*		255		25,388
Google, Inc., Class A*		85		49,306
Groupon, Inc., Class A*		362		3,848
LinkedIn Corp., Class A*		87		9,245
Priceline.com, Inc.*		71		47,181
Rackspace Hosting, Inc.*		273		11,996
Symantec Corp.*		2,517		36,773
VeriSign, Inc.		779		33,941
Yahoo! Inc.*		1,936		30,647
Zynga, Inc., Class A*		1,771		9,634
Total Internet				332,689
Iron/Steel — 0.4%
Cliffs Natural Resources, Inc.		818		40,319
Nucor Corp.		384		14,554
Total Iron/Steel				54,873
Leisure Time — 0.4%
Carnival Corp. (Panama)		394		13,503
Harley-Davidson, Inc.		632		28,901
Royal Caribbean Cruises Ltd. (Liberia)		965		25,119
Total Leisure Time				67,523
Lodging — 1.5%
Hyatt Hotels Corp., Class A*		403		14,976
Las Vegas Sands Corp.		921		40,054
Marriott International, Inc., Class A		866		33,947
Starwood Hotels & Resorts Worldwide, Inc.		699		37,075
Wyndham Worldwide Corp.		1,077		56,801

See accompanying Notes to Financial Statements.

46

ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

June 30, 2012

Investments	Shares		Value
Lodging — 1.5% (continued)
Wynn Resorts Ltd.		453	$	46,985
Total Lodging				229,838
Machinery – Construction & Mining — 0.7%
Caterpillar, Inc.		657		55,786
Joy Global, Inc.		946		53,666
Total Machinery – Construction & Mining				109,452
Machinery – Diversified — 1.5%
Cummins, Inc.		664		64,348
Deere & Co.		622		50,301
Flowserve Corp.		346		39,703
Rockwell Automation, Inc.		561		37,060
Roper Industries, Inc.		324		31,940
Total Machinery – Diversified				223,352
Media — 4.6%
CBS Corp., Class B		1,526		50,022
Comcast Corp., Class A		1,562		49,937
DIRECTV, Class A*		1,281		62,538
Discovery Communications, Inc., Class A*		1,056		57,024
DISH Network Corp., Class A		693		19,785
Liberty Global, Inc., Class A*		1,060		52,608
McGraw-Hill Cos., Inc. (The)		716		32,220
News Corp., Class A		2,798		62,367
Scripps Networks Interactive, Inc., Class A		914		51,970
Sirius XM Radio, Inc.*		30,497		56,420
Time Warner Cable, Inc.		647		53,119
Time Warner, Inc.		1,384		53,284
Viacom, Inc., Class B		1,196		56,236
Walt Disney Co. (The)		957		46,415
Total Media				703,945
Metal Fabricate/Hardware — 0.2%
Precision Castparts Corp.		219		36,023
Mining — 0.8%
Alcoa, Inc.		5,086		44,502
Freeport-McMoRan Copper & Gold, Inc.		590		20,101

See accompanying Notes to Financial Statements.

47

ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

June 30, 2012

Investments	Shares		Value
Mining — 0.8% (continued)
Southern Copper Corp.		1,709	$	53,851
Total Mining				118,454
Miscellaneous Manufacturing — 2.5%
3M Co.		377		33,779
Danaher Corp.		793		41,299
Dover Corp.		858		45,997
Eaton Corp.		1,028		40,740
General Electric Co.		2,456		51,183
Illinois Tool Works, Inc.		618		32,686
Pall Corp.		587		32,174
Parker Hannifin Corp.		413		31,752
Textron, Inc.		2,538		63,120
Total Miscellaneous Manufacturing				372,730
Office/Business Equipment — 0.3%
Xerox Corp.		6,065		47,732
Oil & Gas — 6.5%
Anadarko Petroleum Corp.		606		40,117
Apache Corp.		432		37,968
Cabot Oil & Gas Corp.		1,312		51,693
Chesapeake Energy Corp.		593		11,030
Chevron Corp.		67		7,069
Cimarex Energy Co.		190		10,473
Concho Resources, Inc.*		531		45,199
CONSOL Energy, Inc.		268		8,104
Continental Resources, Inc.*		263		17,521
Denbury Resources, Inc.*		3,776		57,055
Devon Energy Corp.		479		27,777
Diamond Offshore Drilling, Inc.		784		46,358
EOG Resources, Inc.		500		45,055
EQT Corp.		1,136		60,924
Exxon Mobil Corp.		298		25,500
Helmerich & Payne, Inc.		957		41,610
Hess Corp.		853		37,063
HollyFrontier Corp.		2,021		71,604
Linn Energy LLC		316		12,040

See accompanying Notes to Financial Statements.

48

ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

June 30, 2012

Investments	Shares		Value
Oil & Gas — 6.5% (continued)
Marathon Oil Corp.		634	$	16,211
Marathon Petroleum Corp.		1,305		58,621
Murphy Oil Corp.		633		31,834
Noble Energy, Inc.		92		7,803
Occidental Petroleum Corp.		590		50,604
Peabody Energy Corp.		1,849		45,337
Pioneer Natural Resources Co.		729		64,305
Range Resources Corp.		203		12,560
Southwestern Energy Co.*		307		9,803
Whiting Petroleum Corp.*		1,052		43,258
Total Oil & Gas				994,496
Oil & Gas Services — 2.2%
Baker Hughes, Inc.		1,550		63,705
Cameron International Corp.*		1,030		43,991
FMC Technologies, Inc.*		950		37,269
Halliburton Co.		1,958		55,588
National Oilwell Varco, Inc.		717		46,203
Oceaneering International, Inc.		878		42,021
Schlumberger Ltd. (Curacao)		814		52,837
Total Oil & Gas Services				341,614
Packaging & Containers — 0.2%
Ball Corp.		862		35,385
Pharmaceuticals — 3.2%
Abbott Laboratories		513		33,073
Allergan, Inc.		273		25,272
AmerisourceBergen Corp.		1,193		46,944
Bristol-Myers Squibb Co.		285		10,246
Cardinal Health, Inc.		1,152		48,384
Express Scripts, Inc.*		949		52,983
Johnson & Johnson		262		17,701
McKesson Corp.		588		55,125
Mead Johnson Nutrition Co.		193		15,538
Merck & Co., Inc.		440		18,370
Mylan, Inc.*		2,407		51,437
Perrigo Co.		361		42,573

See accompanying Notes to Financial Statements.

49

ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

June 30, 2012

Investments	Shares		Value
Pharmaceuticals — 3.2% (continued)
Pfizer, Inc.		493	$	11,339
Watson Pharmaceuticals, Inc.*		703		52,015
Total Pharmaceuticals				481,000
Pipelines — 1.6%
Buckeye Partners LP		211		11,008
El Paso Pipeline Partners LP		409		13,824
Enbridge Energy Partners LP		332		10,216
Energy Transfer Equity LP		310		12,716
Energy Transfer Partners LP		157		6,938
Enterprise Products Partners LP		226		11,580
Kinder Morgan Energy Partners LP		112		8,801
Kinder Morgan Management LLC*		111		8,150
Kinder Morgan, Inc.		339		10,923
Magellan Midstream Partners LP		177		12,503
Markwest Energy Partners LP		363		17,899
ONEOK Partners LP		256		13,760
ONEOK, Inc.		416		17,601
Plains All American Pipeline LP		190		15,354
Spectra Energy Corp.		742		21,562
Williams Cos., Inc. (The)		1,473		42,452
Williams Partners LP		237		12,381
Total Pipelines				247,668
Private Equity — 0.3%
Blackstone Group LP (The)		4,057		53,025
Real Estate — 0.3%
Brookfield Office Properties, Inc. (Canada)		718		12,508
CBRE Group, Inc.*		1,739		28,450
Total Real Estate				40,958
Real Estate Investment Trust — 1.1%
American Capital Agency Corp.		617		20,737
American Tower Corp., Class A		278		19,435
Annaly Capital Management, Inc.		974		16,344
AvalonBay Communities, Inc.		67		9,479
Digital Realty Trust, Inc.		118		8,858
Equity Residential		125		7,795

See accompanying Notes to Financial Statements.

50

ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

June 30, 2012

Investments	Shares		Value
Real Estate Investment Trust — 1.1% (continued)
Federal Realty Investment Trust		83	$	8,639
HCP, Inc.		271		11,965
Health Care REIT, Inc.		144		8,395
Host Hotels & Resorts, Inc.		456		7,214
Macerich Co. (The)		131		7,736
National Retail Properties, Inc.		281		7,950
Plum Creek Timber Co., Inc.		167		6,630
Public Storage		61		8,809
Simon Property Group, Inc.		49		7,627
Ventas, Inc.		142		8,963
Total Real Estate Investment Trust				166,576
Retail — 8.8%
Advance Auto Parts, Inc.		544		37,112
AutoZone, Inc.*		123		45,162
Bed Bath & Beyond, Inc.*		726		44,867
Best Buy Co., Inc.		2,009		42,109
CarMax, Inc.*		1,060		27,496
Chipotle Mexican Grill, Inc.*		38		14,438
Costco Wholesale Corp.		265		25,175
CVS Caremark Corp.		953		44,534
Darden Restaurants, Inc.		939		47,542
Dick's Sporting Goods, Inc.		836		40,128
Dollar General Corp.*		1,056		57,436
Dollar Tree, Inc.*		940		50,572
Family Dollar Stores, Inc.		716		47,600
Gap, Inc. (The)		955		26,129
Home Depot, Inc. (The)		769		40,749
J.C. Penney Co., Inc.		1,560		36,364
Kohl's Corp.		1,114		50,676
Lowe's Cos., Inc.		1,295		36,830
Ltd. Brands, Inc.		881		37,469
Macy's, Inc.		1,234		42,388
McDonald's Corp.		250		22,133
Nordstrom, Inc.		709		35,230
O'Reilly Automotive, Inc.*		450		37,696
PetSmart, Inc.		724		49,362

See accompanying Notes to Financial Statements.

51

ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

June 30, 2012

Investments	Shares		Value
Retail — 8.8% (continued)
PVH Corp.		512	$	39,828
Ross Stores, Inc.		555		34,671
Staples, Inc.		2,902		37,871
Starbucks Corp.		494		26,340
Target Corp.		755		43,933
Tiffany & Co.		570		30,181
TJX Cos., Inc. (The)		842		36,147
Tractor Supply Co.		309		25,666
ULTA Salon Cosmetics & Fragrance, Inc.		316		29,508
Walgreen Co.		1,269		37,537
Wal-Mart Stores, Inc.		588		40,995
Yum! Brands, Inc.		339		21,838
Total Retail				1,343,712
Savings & Loans — 0.1%
New York Community Bancorp, Inc.		960		12,029
Semiconductors — 2.8%
Advanced Micro Devices, Inc.*		5,170		29,624
Altera Corp.		742		25,109
Analog Devices, Inc.		657		24,749
Applied Materials, Inc.		4,102		47,009
Broadcom Corp., Class A*		1,197		40,459
Intel Corp.		1,839		49,009
KLA-Tencor Corp.		673		33,145
Linear Technology Corp.		782		24,500
Maxim Integrated Products, Inc.		834		21,384
Microchip Technology, Inc.		735		24,314
NVIDIA Corp.*		2,104		29,077
QUALCOMM, Inc.		634		35,301
Texas Instruments, Inc.		577		16,554
Xilinx, Inc.		852		28,602
Total Semiconductors				428,836
Software — 4.2%
Activision Blizzard, Inc.		4,079		48,907
Adobe Systems, Inc.*		1,058		34,247
Akamai Technologies, Inc.*		710		22,543

See accompanying Notes to Financial Statements.

52

ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

June 30, 2012

Investments	Shares		Value
Software — 4.2% (continued)
ANSYS, Inc.*		429	$	27,074
Autodesk, Inc.*		797		27,887
BMC Software, Inc.*		890		37,985
CA, Inc.		1,540		41,719
Cerner Corp.*		313		25,873
Citrix Systems, Inc.*		290		24,343
Fidelity National Information Services, Inc.		1,444		49,212
Fiserv, Inc.*		614		44,343
Informatica Corp.*		400		16,944
Intuit, Inc.		570		33,829
Microsoft Corp.		1,149		35,148
Nuance Communications, Inc.*		1,738		41,399
Oracle Corp.		1,721		51,114
Red Hat, Inc.*		240		13,555
Salesforce.com, Inc.*		68		9,402
VeriFone Systems, Inc.*		1,179		39,013
VMware, Inc., Class A*		208		18,936
Total Software				643,473
Telecommunications — 1.8%
AT&T, Inc.		502		17,901
Centurylink, Inc.		454		17,929
Cisco Systems, Inc.		1,956		33,585
Corning, Inc.		2,711		35,053
Crown Castle International Corp.*		196		11,497
Juniper Networks, Inc.*		1,353		22,067
Motorola Solutions, Inc.		873		42,000
Verizon Communications, Inc.		496		22,042
Virgin Media, Inc.		2,835		69,146
Windstream Corp.		1,032		9,969
Total Telecommunications				281,189
Toys/Games/Hobbies — 0.2%
Mattel, Inc.		785		25,465
Transportation — 2.6%
C.H. Robinson Worldwide, Inc.		399		23,353
CSX Corp.		2,351		52,568

See accompanying Notes to Financial Statements.

53

ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

June 30, 2012

Investments	Shares		Value
Transportation — 2.6% (continued)
Expeditors International of Washington, Inc.		495	$	19,181
FedEx Corp.		575		52,676
JB Hunt Transport Services, Inc.		806		48,038
Kansas City Southern		542		37,702
Norfolk Southern Corp.		844		60,574
Union Pacific Corp.		496		59,178
United Parcel Service, Inc., Class B		478		37,647
Total Transportation				390,917
Water — 0.1%
American Water Works Co., Inc.		642		22,008
Total Common Stocks (Cost $15,078,245)				15,095,801
MONEY MARKET FUND — 0.6%
Fidelity Institutional Prime Money Market Portfolio – Class I (Cost $98,432)		98,432		98,432
Total Investments — 100.0% (Cost $15,176,677)				15,194,233
Liabilities in Excess of Other Assets — (0.0%)‡				(6,013	)
Net Assets — 100.0%			$	15,188,220

* Non-income producing security

‡ Less than 0.05%

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Advertising		0.2	%
Aerospace/Defense		2.1
Agriculture		1.1
Airlines		1.3
Apparel		0.7
Auto Manufacturers		1.0
Auto Parts & Equipment		0.8
Banks		4.4
Beverages		1.5
Biotechnology		2.4
Chemicals		3.8
Commercial Services		2.5
Computers		3.1
Cosmetics/Personal Care		0.6
Distribution/Wholesale		0.5

See accompanying Notes to Financial Statements.

54

ADVISORSHARES TRUST
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

	% of Net Assets
Diversified Financial Services		3.1	%
Electric		2.1
Electrical Components & Equipment		0.5
Electronics		1.8
Engineering & Construction		0.5
Environmental Control		0.5
Food		2.2
Forest Products & Paper		0.1
Gas		0.4
Hand/Machine Tools		0.2
Healthcare – Products		3.2
Healthcare – Services		2.8
Home Furnishings		0.1
Household Products/Wares		0.4
Insurance		4.4
Internet		2.2
Iron/Steel		0.4
Leisure Time		0.4
Lodging		1.5
Machinery – Construction & Mining		0.7
Machinery – Diversified		1.5
Media		4.6
Metal Fabricate/Hardware		0.2
Mining		0.8
Miscellaneous Manufacturing		2.5
Office/Business Equipment		0.3
Oil & Gas		6.5
Oil & Gas Services		2.2
Packaging & Containers		0.2
Pharmaceuticals		3.2
Pipelines		1.6
Private Equity		0.3
Real Estate		0.3
Real Estate Investment Trust		1.1
Retail		8.8
Savings & Loans		0.1
Semiconductors		2.8
Software		4.2
Telecommunications		1.8
Toys/Games/Hobbies		0.2
Transportation		2.6
Water		0.1
Money Market Fund		0.6
Total Investments		100.0
Liabilities in Excess of Other Assets		—	‡
Net Assets		100.0	%

‡ Less than 0.05%

See accompanying Notes to Financial Statements.

55

ADVISORSHARES TRUST
MADRONA GLOBAL BOND ETF
Schedule of Investments

June 30, 2012

Investments	Shares		Value
EXCHANGE TRADED FUNDS — 98.9%
Asset Allocation Fund — 3.8%
PowerShares Convertible Securities Portfolio		1	$	22
SPDR Barclays Capital Convertible Securities ETF		21,232		797,474
Total Asset Allocation Fund				797,496
Debt Fund — 91.1%
iShares iBoxx $ High Yield Corporate Bond Fund		25,971		2,369,075
iShares iBoxx $ Investment Grade Corporate Bond Fund		32,712		3,848,894
iShares S&P/Citigroup International Treasury Bond Fund		10,559		1,037,211
PIMCO 1 – 5 Year US TIPS Index Fund		19,442		1,037,231
PowerShares Build America Bond Portfolio		28,988		861,233
PowerShares Emerging Markets Sovereign Debt Portfolio		37,559		1,082,826
PowerShares Insured National Municipal Bond Portfolio		25,419		640,813
PowerShares International Corporate Bond Portfolio		68,314		1,845,161
SPDR DB International Government Inflation-Protected Bond ETF		17,527		1,031,990
Vanguard Intermediate-Term Government Bond ETF		12,956		857,428
Vanguard Long-Term Government Bond ETF		8,909		689,200
Vanguard Mortgage-Backed Securities ETF		48,599		2,543,672
Vanguard Short-Term Bond ETF		7,789		631,921
Vanguard Short-Term Government Bond ETF		13,819		841,715
Total Debt Fund				19,318,370
Equity Fund — 4.0%
PowerShares Financial Preferred Portfolio		46,829		842,922
Total Exchange Traded Funds (Cost $20,599,101)				20,958,788
MONEY MARKET FUND — 1.4%
Fidelity Institutional Prime Money Market Portfolio – Class I (Cost $304,252)		304,252		304,252
Total Investments — 100.3% (Cost $20,903,353)				21,263,040
Liabilities in Excess of Other Assets — (0.3%)				(68,071	)
Net Assets — 100.0%			$	21,194,969

ETF  — Exchange Traded Fund

TIPS  — Treasury Inflation Protected Securities

See accompanying Notes to Financial Statements.

56

ADVISORSHARES TRUST
MADRONA GLOBAL BOND ETF
Schedule of Investments (continued)

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Asset Allocation Fund		3.8	%
Debt Fund		91.1
Equity Fund		4.0
Money Market Fund		1.4
Total Investments		100.3
Liabilities in Excess of Other Assets		(0.3	)
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

57

ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments

June 30, 2012

Investments	Shares		Value
COMMON STOCKS — 97.2%
Advertising — 1.5%
Focus Media Holding Ltd. (China)(a)		4,035	$	94,742
Publicis Groupe SA (France)(a)		2,664		61,112
WPP PLC (Jersey Islands)(a)		1,019		62,016
Total Advertising				217,870
Aerospace/Defense — 0.9%
BAE Systems PLC (United Kingdom)(a)		1,694		30,797
Embraer SA (Brazil)(a)		1,425		37,805
Rolls-Royce Holdings PLC (United Kingdom)(a)		973		65,658
Total Aerospace/Defense				134,260
Agriculture — 0.7%
British American Tobacco PLC (United Kingdom)(a)		475		48,507
Imperial Tobacco Group PLC (United Kingdom)(a)		589		45,553
Total Agriculture				94,060
Airlines — 0.5%
Ryanair Holdings PLC (Ireland)*(a)		2,375		72,200
Apparel — 0.4%
Burberry Group PLC (United Kingdom)(a)		1,331		55,436
Auto Manufacturers — 3.6%
Bayerische Motoren Werke AG (Germany)(a)		3,197		76,472
Daimler AG (Germany)(a)		1,624		72,668
Fiat SpA (Italy)*(a)		20,118		102,401
Honda Motor Co. Ltd. (Japan)(a)		640		22,182
Nissan Motor Co. Ltd. (Japan)(a)		4,245		80,655
Tata Motors Ltd. (India)(a)		3,194		70,140
Toyota Motor Corp. (Japan)(a)		1,139		91,667
Total Auto Manufacturers				516,185
Auto Parts & Equipment — 0.4%
Denso Corp. (Japan)(a)		1,277		21,748
Weichai Power Co. Ltd. (China)*(a)		2,136		34,133
Total Auto Parts & Equipment				55,881

See accompanying Notes to Financial Statements.

58

ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)

June 30, 2012

Investments	Shares		Value
Banks — 13.8%
Australia & New Zealand Banking Group Ltd. (Australia)(a)		1,229	$	27,812
Banco Bilbao Vizcaya Argentaria SA (Spain)(a)		7,487		52,933
Banco Bradesco SA (Brazil)(a)		3,835		57,026
Banco de Chile (Chile)(a)		391		33,061
Banco do Brasil SA (Brazil)(a)		6,371		62,500
Banco Santander Chile (Chile)(a)		559		43,317
Banco Santander SA (Spain)(a)		11,233		73,688
Bancolombia SA (Colombia)(a)		1,056		65,303
Barclays PLC (United Kingdom)(a)		6,639		68,382
BNP Paribas SA (France)(a)		4,263		82,361
China Construction Bank Corp. (China)(a)		6,050		83,309
Credit Suisse Group AG (Switzerland)(a)		3,290		60,306
DBS Group Holdings Ltd. (Singapore)(a)		1,442		63,895
Erste Group Bank AG (Austria)*(a)		8,890		84,455
Hachijuni Bank Ltd. (The) (Japan)(a)		403		20,807
HDFC Bank Ltd. (India)(a)		2,175		70,905
HSBC Holdings PLC (United Kingdom)(a)		1,888		83,317
ICICI Bank Ltd. (India)(a)		2,198		71,237
Industrial & Commercial Bank of China Ltd. (China)(a)		7,323		81,871
Itau Unibanco Holding SA (Brazil)(a)		4,593		63,935
Lloyds Banking Group PLC (United Kingdom)*(a)		49,658		95,343
Mitsubishi UFJ Financial Group, Inc. (Japan)(a)		14,292		67,887
National Australia Bank Ltd. (Australia)(a)		1,974		47,712
National Bank of Greece SA (Greece)*(a)		36,541		62,485
Royal Bank of Scotland Group PLC (United Kingdom)*(a)		13,238		90,018
Sberbank of Russia (Russia)(a)		6,491		70,233
Societe Generale SA (France)*(a)		21,243		98,568
Turkiye Garanti Bankasi As (Turkey)(a)		21,094		85,009
United Overseas Bank Ltd. (Singapore)(a)		2,582		76,995
Westpac Banking Corp. (Australia)(a)		154		16,757
Total Banks				1,961,427

See accompanying Notes to Financial Statements.

59

ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)

June 30, 2012

Investments	Shares		Value
Beverages — 3.0%
Anheuser-Busch InBev NV (Belgium)(a)		934	$	74,393
Carlsberg A/S, Class B (Denmark)(a)		3,720		58,702
Cia de Bebidas das Americas (Brazil)(a)		429		16,444
Coca-Cola Femsa SAB de CV (Mexico)(a)		326		42,667
Coca-Cola Hellenic Bottling Co. SA (Greece)*(a)		3,036		53,980
Diageo PLC (United Kingdom)(a)		490		50,504
Fomento Economico Mexicano SAB de CV (Mexico)(a)		277		24,722
Heineken NV (Netherlands)(a)		2,000		52,280
SABMiller PLC (United Kingdom)(a)		1,293		52,392
Total Beverages				426,084
Biotechnology — 0.3%
CSL Ltd. (Australia)(a)		2,173		44,090
Building Materials — 0.6%
Asahi Glass Co. Ltd. (Japan)(a)		2,709		18,150
CRH PLC (Ireland)(a)		3,665		70,515
Total Building Materials				88,665
Chemicals — 2.0%
Air Liquide SA (France)(a)		1,715		38,999
Akzo Nobel NV (Netherlands)(a)		3,004		47,043
BASF SE (Germany)(a)		583		40,460
Braskem SA (Brazil)(a)		3,842		51,137
Sinopec Shanghai Petrochemical Co. Ltd. (China)(a)		694		19,786
Sociedad Quimica y Minera de Chile SA (Chile)(a)		247		13,750
Syngenta AG (Switzerland)(a)		648		44,349
Ultrapar Participacoes SA (Brazil)(a)		1,204		27,307
Total Chemicals				282,831
Coal — 0.4%
Yanzhou Coal Mining Co. Ltd. (China)(a)		4,083		62,511
Commercial Services — 0.5%
Experian PLC (Jersey Islands)(a)		2,904		41,063
SGS SA (Switzerland)(a)		1,743		32,646

See accompanying Notes to Financial Statements.

60

ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)

June 30, 2012

Investments	Shares		Value
Commercial Services — 0.5% (continued)
Total Commercial Services			$	73,709
Computers — 0.4%
Infosys Ltd. (India)(a)		1,112		50,107
TDK Corp. (Japan)(a)		270		10,902
Total Computers				61,009
Cosmetics/Personal Care — 0.7%
L'Oreal SA (France)(a)		937		21,926
Shiseido Co. Ltd. (Japan)(a)		4,877		76,520
Total Cosmetics/Personal Care				98,446
Distribution/Wholesale — 1.7%
ITOCHU Corp. (Japan)(a)		4,277		89,774
LI & Fung Ltd. (Hong Kong)(a)		17,336		66,571
Wolseley PLC (Jersey Islands)(a)		21,010		78,157
Total Distribution/Wholesale				234,502
Diversified Financial Services — 2.7%
Hong Kong Exchanges And Clearing Ltd. (Hong Kong)(a)		1,108		15,723
Macquarie Group Ltd. (Australia)(a)		1,592		42,745
Nomura Holdings, Inc. (Japan)(a)		24,209		89,331
ORIX Corp. (Japan)(a)		1,853		86,109
Shinhan Financial Group Co. Ltd. (South Korea)(a)		1,165		82,692
Woori Finance Holdings Co. Ltd. (South Korea)(a)		1,911		63,483
Total Diversified Financial Services				380,083
Electric — 3.8%
AES Tiete SA (Brazil)(a)		2,563		37,574
Cia Energetica de Minas Gerais (Brazil)(a)		619		11,402
Cia Paranaense de Energia (Brazil)(a)		2,339		50,709
CPFL Energia SA (Brazil)(a)		1,140		28,489
E.ON AG (Germany)(a)		582		12,507
EDF SA (France)(a)		20,090		87,793
GDF Suez (France)(a)		2,320		55,193
Huaneng Power International, Inc. (China)(a)		4,397		131,031
Iberdrola SA (Spain)(a)		1,902		34,749

See accompanying Notes to Financial Statements.

61

ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)

June 30, 2012

Investments	Shares		Value
Electric — 3.8% (continued)
International Power PLC (United Kingdom)(a)		745	$	48,462
SSE PLC (United Kingdom)(a)		1,956		42,856
Total Electric				540,765
Electrical Components & Equipment — 1.0%
Hitachi Ltd. (Japan)(a)		919		56,427
Nidec Corp. (Japan)(a)		1,230		23,604
Schneider Electric SA (France)(a)		4,366		48,462
Vestas Wind Systems A/S (Denmark)*(a)		8,558		15,319
Total Electrical Components & Equipment				143,812
Electronics — 0.7%
Elster Group SE (Germany)*(a)		5,091		103,347
Engineering & Construction — 0.3%
ABB Ltd. (Switzerland)*(a)		2,689		43,885
Food — 3.5%
BRF – Brasil Foods SA (Brazil)(a)		4,864		73,884
Carrefour SA (France)(a)		20,644		72,048
Cia Brasileira de Distribuicao Grupo Pao de Acucar (Brazil)(a)		1,463		58,505
Danone SA (France)(a)		2,952		36,546
Delhaize Group SA (Belgium)(a)		711		26,101
Koninklijke Ahold NV (Netherlands)(a)		5,043		62,483
Marine Harvest ASA (Norway)*(a)		1,753		24,717
Nestle SA (Switzerland)(a)		349		20,849
Tesco PLC (United Kingdom)(a)		3,861		56,371
Unilever NV (Netherlands)		921		30,715
Unilever PLC (United Kingdom)(a)		884		29,817
Total Food				492,036
Food Service — 0.3%
Compass Group PLC (United Kingdom)(a)		3,822		40,781
Forest Products & Paper — 0.5%
Stora ENSO OYJ (Finland)(a)		10,930		66,782
Gas — 0.1%
National Grid PLC (United Kingdom)(a)		353		18,706

See accompanying Notes to Financial Statements.

62

ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)

June 30, 2012

Investments	Shares		Value
Hand/Machine Tools — 0.6%
Sandvik AB (Sweden)(a)		6,578	$	84,527
Healthcare – Products — 0.6%
Luxottica Group SpA (Italy)(a)		1,325		46,282
Smith & Nephew PLC (United Kingdom)(a)		664		33,194
Total Healthcare – Products				79,476
Healthcare – Services — 0.5%
ICON PLC (Ireland)*(a)		3,049		68,694
Holding Companies – Diversified — 0.8%
Keppel Corp. Ltd. (Singapore)(a)		3,885		63,559
LVMH Moet Hennessy Louis Vuitton SA (France)(a)		1,785		53,978
Total Holding Companies – Diversified				117,537
Home Builders — 0.1%
Sekisui House Ltd. (Japan)(a)		1,614		15,107
Household Products / Wares — 0.3%
Reckitt Benckiser Group PLC (United Kingdom)(a)		2,056		21,650
Unilever Indonesia Tbk PT (Indonesia)(a)		270		13,166
Total Household Products / Wares				34,816
Insurance — 6.5%
Ageas (Belgium)(a)		54,105		102,799
AIA Group Ltd. (Hong Kong)(a)		4,633		64,121
Allianz SE (Germany)(a)		7,596		75,884
Aviva PLC (United Kingdom)(a)		7,563		64,890
AXA SA (France)(a)		6,514		86,832
China Life Insurance Co. Ltd. (China)(a)		2,213		87,391
ING Groep NV (Netherlands)*(a)		13,910		92,919
MS&AD Insurance Group Holdings (Japan)(a)		11,230		97,364
Ping An Insurance Group Co. of China Ltd. (China)(a)		4,759		75,716
Prudential PLC (United Kingdom)(a)		2,375		55,100
Tokio Marine Holdings, Inc. (Japan)(a)		2,421		60,646
Zurich Insurance Group AG (Switzerland)*(a)		2,927		66,092
Total Insurance				929,754

See accompanying Notes to Financial Statements.

63

ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)

June 30, 2012

Investments	Shares		Value
Internet — 1.3%
Baidu, Inc. (Cayman Islands)*(a)		547	$	62,894
NetEase.com (Cayman Islands)*(a)		1,127		66,324
Tencent Holdings Ltd. (Cayman Islands)(a)		1,811		53,280
Total Internet				182,498
Iron/Steel — 1.3%
ArcelorMittal (Luxembourg)		5,581		85,222
Gerdau SA (Brazil)(a)		2,147		18,808
POSCO (South Korea)(a)		622		50,033
Rio Tinto PLC (United Kingdom)(a)		493		23,570
Ternium SA (Luxembourg)(a)		568		11,116
Total Iron/Steel				188,749
Leisure Time — 0.2%
Carnival PLC (United Kingdom)(a)		802		27,533
Lodging — 1.7%
Galaxy Entertainment Group Ltd. (Hong Kong)*(a)		3,441		86,025
InterContinental Hotels Group PLC (United Kingdom)(a)		1,255		30,245
Melco Crown Entertainment Ltd., Class Participation Certificate (Hong Kong)*(a)		5,123		59,017
Sands China Ltd. (Cayman Islands)(a)		2,241		71,152
Total Lodging				246,439
Machinery – Construction & Mining — 0.8%
Atlas Copco AB, Class A (Sweden)(a)		1,989		42,942
Komatsu Ltd. (Japan)(a)		3,177		75,327
Total Machinery – Construction & Mining				118,269
Machinery – Diversified — 1.2%
Alstom SA (France)(a)		26,515		82,992
FANUC Corp. (Japan)(a)		528		14,467
Kone OYJ, Class B (Finland)(a)		865		26,142
Kubota Corp. (Japan)(a)		970		44,727
Total Machinery – Diversified				168,328

See accompanying Notes to Financial Statements.

64

ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)

June 30, 2012

Investments	Shares		Value
Media — 2.4%
British Sky Broadcasting Group PLC (United Kingdom)(a)		1,606	$	70,535
Grupo Televisa SA (Mexico)(a)		841		18,065
Naspers Ltd., Class N (South Africa)(a)		664		35,046
Pearson PLC (United Kingdom)(a)		1,812		35,968
Promotora de Informaciones SA, Class B (Spain)(a)		29,774		85,451
Reed Elsevier NV (Netherlands)(a)		1,267		28,862
Reed Elsevier PLC (United Kingdom)(a)		1,061		33,984
Wolters Kluwer NV (Netherlands)(a)		2,455		38,814
Total Media				346,725
Metal Fabricate/Hardware — 1.1%
Assa Abloy AB (Sweden)(a)		4,379		60,868
Tenaris SA (Luxembourg)(a)		2,603		91,027
Total Metal Fabricate/Hardware				151,895
Mining — 5.2%
Anglo American PLC (United Kingdom)(a)		1,967		32,515
AngloGold Ashanti Ltd. (South Africa)(a)		1,857		63,769
BHP Billiton Ltd. (Australia)(a)		537		35,066
BHP Billiton PLC (United Kingdom)(a)		1,438		82,239
Cia de Minas Buenaventura SA (Peru)(a)		2,123		80,632
Gold Fields Ltd. (South Africa)(a)		2,634		33,742
Impala Platinum Holdings Ltd. (South Africa)(a)		1,505		24,712
Newcrest Mining Ltd. (Australia)(a)		3,295		77,564
Randgold Resources Ltd. (Jersey Islands)(a)		1,017		91,540
St Barbara Ltd. (Australia)*(a)		8,503		74,571
Sterlite Industries India Ltd. (India)(a)		12,625		95,697
Xstrata PLC (United Kingdom)(a)		15,817		39,701
Total Mining				731,748
Miscellaneous Manufacturing — 0.9%
FUJIFILM Holdings Corp. (Japan)(a)		3,158		59,370
Siemens AG (Germany)(a)		806		67,761
Total Miscellaneous Manufacturing				127,131

See accompanying Notes to Financial Statements.

65

ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)

June 30, 2012

Investments	Shares		Value
Office/Business Equipment — 0.3%
Canon, Inc. (Japan)(a)		1,183	$	47,249
Oil & Gas — 7.1%
BG Group PLC (United Kingdom)(a)		3,172		65,153
BP PLC (United Kingdom)(a)		819		33,202
China Petroleum & Chemical Corp. (China)(a)		423		37,727
CNOOC Ltd. (Hong Kong)(a)		187		37,634
Ecopetrol SA (Colombia)(a)		1,397		77,939
Eni SpA (Italy)(a)		1,839		78,194
Ensco PLC, Class A (United Kingdom)		1,556		73,085
MOL Hungarian Oil and Gas PLC (Hungary)(a)		2,515		90,439
PetroChina Co. Ltd. (China)(a)		377		48,686
Repsol YPF SA (Spain)(a)		4,889		78,126
Royal Dutch Shell PLC, Class A (United Kingdom)(a)		1,245		83,950
Sasol Ltd. (South Africa)(a)		1,008		42,790
Statoil ASA (Norway)(a)		3,063		73,083
Surgutneftegas OJSC (Russia)(a)		14,302		81,522
Total SA (France)(a)		1,377		61,896
Tullow Oil PLC (United Kingdom)(a)		1,939		22,124
Woodside Petroleum Ltd. (Australia)(a)		698		22,741
Total Oil & Gas				1,008,291
Oil & Gas Services — 1.9%
Cie Generale de Geophysique - Veritas (France)*(a)		3,630		93,835
Petrofac Ltd. (Jersey Islands)(a)		5,364		58,468
Subsea 7 SA (Luxembourg)(a)		3,038		59,879
Technip SA (France)(a)		1,994		51,944
Total Oil & Gas Services				264,126
Packaging & Containers — 0.3%
Rexam PLC (United Kingdom)(a)		1,489		49,003
Pharmaceuticals — 3.4%
Daiichi Sankyo Co. Ltd. (Japan)(a)		995		16,676
Elan Corp. PLC (Ireland)*(a)		2,777		40,516
GlaxoSmithKline PLC (United Kingdom)(a)		1,257		57,281

See accompanying Notes to Financial Statements.

66

ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)

June 30, 2012

Investments	Shares		Value
Pharmaceuticals — 3.4% (continued)
Grifols SA (Spain)*(a)		8,999	$	86,390
Ipsen SA (France)(a)		6,782		41,438
Novartis AG (Switzerland)(a)		673		37,621
NOVO Nordisk A/S (Denmark)(a)		326		47,381
Roche Holding AG (Switzerland)(a)		831		35,916
Sanofi (France)(a)		359		13,563
Shire PLC (Jersey Islands)(a)		640		55,290
Teva Pharmaceutical Industries Ltd. (Israel)(a)		1,404		55,374
Total Pharmaceuticals				487,446
Retail — 2.7%
CIE Financiere Richemont SA (Switzerland)(a)		11,736		63,492
Hennes & Mauritz AB (Sweden)(a)		3,899		27,839
Inditex SA (Spain)(a)		2,232		46,091
Kingfisher PLC (United Kingdom)(a)		7,435		66,469
Marks & Spencer Group PLC (United Kingdom)(a)		3,857		39,496
Seven & I Holdings Co. Ltd. (Japan)(a)		899		53,994
Swatch Group AG (The) (Switzerland)(a)		3,064		60,483
Wal-Mart de Mexico SAB de CV (Mexico)(a)		760		20,246
Total Retail				378,110
Semiconductors — 1.6%
Advanced Semiconductor Engineering, Inc. (Taiwan)(a)		10,105		41,127
ARM Holdings PLC (United Kingdom)(a)		960		22,838
ASML Holding NV (Netherlands)		706		36,303
Infineon Technologies AG (Germany)(a)		1,694		11,367
ROHM Co. Ltd. (Japan)(a)		625		11,919
Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan)(a)		2,860		39,926
United Microelectronics Corp. (Taiwan)(a)		29,614		64,262
Total Semiconductors				227,742
Software — 0.3%
Dassault Systemes SA (France)(a)		453		42,627
Telecommunications — 7.6%
Alcatel-Lucent (France)*(a)		24,156		39,374
America Movil SAB d CV, Series L (Mexico)(a)		1,021		26,607

See accompanying Notes to Financial Statements.

67

ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)

June 30, 2012

Investments	Shares		Value
Telecommunications — 7.6% (continued)
BT Group PLC (United Kingdom)(a)		1,263	$	41,906
China Mobile Ltd. (Hong Kong)(a)		355		19,408
China Telecom Corp. Ltd. (China)(a)		782		34,424
China Unicom Ltd. (Hong Kong)(a)		5,280		66,264
Deutsche Telekom AG (Germany)(a)		2,451		26,794
Hellenic Telecommunications Organization SA (Greece)(a)		52,738		65,923
KDDI Corp. (Japan)(a)		3,221		52,180
Mobile TeleSystems (Russia)(a)		1,654		28,449
MTN Group Ltd. (South Africa)(a)		3,848		66,147
Nippon Telegraph & Telephone Corp. (Japan)(a)		887		20,525
NTT DoCoMo, Inc. (Japan)(a)		1,597		26,590
PT Telekomunikasi Indonesia Tbk (Indonesia)(a)		453		15,778
Singapore Telecommunications Ltd. (Singapore)(a)		1,245		32,607
Swisscom AG (Switzerland)(a)		409		16,385
Telecom Corp. of New Zealand Ltd. (New Zealand)(a)		6,189		58,362
Telefonaktiebolaget LM Ericsson (Sweden)(a)		6,284		57,373
Telenor ASA (Norway)(a)		1,475		73,352
Telstra Corp. Ltd. (Australia)(a)		1,961		36,965
Tim Participacoes SA (Brazil)(a)		1,969		54,069
Turkcell Iletisim Hizmetleri AS (Turkey)*(a)		8,308		104,265
VimpelCom Ltd. (Bermuda)(a)		9,770		79,235
Vivendi SA (France)(a)		719		13,238
Vodafone Group PLC (United Kingdom)(a)		1,033		29,110
Total Telecommunications				1,085,330
Transportation — 1.2%
Deutsche Post AG (Germany)(a)		4,084		72,001
East Japan Railway Co. (Japan)(a)		9,001		93,520
Total Transportation				165,521
Water — 1.0%
Cia de Saneamento Basico do Estado do Sao Paulo (Brazil)(a)		700		53,102
United Utilities Group PLC (United Kingdom)(a)		921		19,636
Veolia Environnement SA (France)(a)		5,696		71,883
Total Water				144,621
Total Common Stocks (Cost $15,081,438)				13,828,655

See accompanying Notes to Financial Statements.

68

ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)

June 30, 2012

Investments	Shares		Value
MONEY MARKET FUND — 2.5%
Fidelity Institutional Prime Money Market Portfolio – Class I (Cost $349,329)		349,329	$	349,329
Total Investments — 99.7% (Cost $15,430,767)				14,177,984
Other Assets in Excess of Liabilities — 0.3%				40,732
Net Assets — 100.0%			$	14,218,716

ADR — American Depositary Receipt

(a) American Depositary Receipt

* Non-income producing security

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Advertising		1.5	%
Aerospace/Defense		0.9
Agriculture		0.7
Airlines		0.5
Apparel		0.4
Auto Manufacturers		3.6
Auto Parts & Equipment		0.4
Banks		13.8
Beverages		3.0
Biotechnology		0.3
Building Materials		0.6
Chemicals		2.0
Coal		0.4
Commercial Services		0.5
Computers		0.4
Cosmetics/Personal Care		0.7
Distribution/Wholesale		1.7
Diversified Financial Services		2.7
Electric		3.8
Electrical Components & Equipment		1.0
Electronics		0.7
Engineering & Construction		0.3
Food		3.5
Food Service		0.3
Forest Products & Paper		0.5

See accompanying Notes to Financial Statements.

69

ADVISORSHARES TRUST
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)

	% of Net Assets
Gas		0.1
Hand/Machine Tools		0.6
Healthcare – Products		0.6
Healthcare – Services		0.5
Holding Companies – Diversified		0.8
Home Builders		0.1
Household Products / Wares		0.3
Insurance		6.5
Internet		1.3
Iron/Steel		1.3
Leisure Time		0.2
Lodging		1.7
Machinery – Construction & Mining		0.8
Machinery – Diversified		1.2
Media		2.4
Metal Fabricate/Hardware		1.1
Mining		5.2
Miscellaneous Manufacturing		0.9
Office/Business Equipment		0.3
Oil & Gas		7.1
Oil & Gas Services		1.9
Packaging & Containers		0.3
Pharmaceuticals		3.4
Retail		2.7
Semiconductors		1.6
Software		0.3
Telecommunications		7.6
Transportation		1.2
Water		1.0
Money Market Fund		2.5
Total Investments		99.7
Other Assets in Excess of Liabilities		0.3
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

70

ADVISORSHARES TRUST
MEIDELL TACTICAL ADVANTAGE ETF
Schedule of Investments

June 30, 2012

Investments	Shares		Value
EXCHANGE TRADED FUNDS — 49.4%
Debt Fund — 19.5%
SPDR Barclays Capital 1 – 3 Month T-Bill ETF		24,078	$	1,103,013
Equity Fund — 29.9%
iShares Russell 1000 Index Fund		3,734		280,834
iShares S&P 100 Index Fund		4,522		282,489
iShares S&P 500 Growth Index Fund		3,902		286,836
iShares S&P 500 Index Fund		2,045		279,654
iShares S&P 500 Value Index Fund		4,488		279,513
iShares S&P SmallCap 600 Growth Index Fund		3,472		280,295
Total Equity Funds				1,689,621
Total Exchange Traded Funds (Cost $2,774,696)				2,792,634
MONEY MARKET FUND — 3.3%
Dreyfus Institutional Reserves Treasury Fund – Institutional Class (Cost $188,312)		188,312		188,312
Total Investments — 52.7% (Cost $2,963,008)				2,980,946
Other Assets in Excess of Liabilities — 47.3%				2,671,463
Net Assets — 100.0%			$	5,652,409

ETF — Exchange Traded Fund

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Money Market Fund		3.3	%
Debt Fund		19.5
Equity Fund		29.9
Total Investments		52.7
Other Assets in Excess of Liabilities		47.3
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

71

ADVISORSHARES TRUST
PERITUS HIGH YIELD ETF
Schedule of Investments

June 30, 2012

Investments	Shares		Value
CORPORATE BONDS — 85.9%
Advertising — 2.4%
Affinion Group, Inc., 7.88%, 12/15/18		2,555,000	$	2,190,913
Aerospace/Defense — 2.0%
Ducommun, Inc., 9.75%, 07/15/18		1,740,000		1,840,050
Auto Manufacturers — 1.0%
Navistar International Corp., 8.25%, 11/01/21		985,000		949,294
Auto Parts & Equipment — 2.8%
Exide Technologies, 8.63%, 02/01/18		3,282,000		2,605,088
Beverages — 2.5%
CEDC Finance Corp. International, Inc., 9.13%, 12/01/16‡		3,650,000		2,326,875
Chemicals — 4.4%
American Pacific Corp., 9.00%, 02/01/15		2,175,000		2,119,266
Phibro Animal Health Corp., 9.25%, 07/01/18‡		2,030,000		1,999,550
Total Chemicals				4,118,816
Commercial Services — 6.3%
DynCorp International, Inc., 10.38%, 07/01/17		3,079,000		2,647,940
Harland Clarke Holdings Corp., 9.50%, 05/15/15		3,805,000		3,177,175
Total Commercial Services				5,825,115
Computers — 6.3%
Spansion LLC, 7.88%, 11/15/17		2,500,000		2,412,500
Stream Global Services, Inc., 11.25%, 10/01/14		2,151,000		2,204,775
Unisys Corp., 12.50%, 01/15/16		1,113,000		1,185,345
Total Computers				5,802,620
Distribution / Wholesale — 3.1%
SGS International, Inc., 12.00%, 12/15/13		2,815,000		2,829,075
Diversified Financial Services — 1.1%
GFI Group, Inc., 8.38%, 07/19/18		1,175,000		992,875

See accompanying Notes to Financial Statements.

72

ADVISORSHARES TRUST
PERITUS HIGH YIELD ETF
Schedule of Investments (continued)

June 30, 2012

Investments	Shares		Value
Electrical Components & Equipment — 1.7%
Advanced Lighting Technologies, Inc., 10.50%, 06/01/19‡		1,600,000	$	1,568,000
Electronics — 3.0%
Sanmina-SCI Corp., 7.00%, 05/15/19‡		1,000,000		975,000
Stoneridge, Inc., 9.50%, 10/15/17‡		1,715,000		1,768,594
Total Electronics				2,743,594
Food — 9.2%
Bumble Bee Acquisition Corp., 9.00%, 12/15/17‡		2,275,000		2,280,687
Chiquita Brands International, Inc., 7.50%, 11/01/14		1,820,000		1,815,450
Harmony Foods Corp., 10.00%, 05/01/16‡		2,230,000		2,324,775
SUPERVALU, Inc., 8.00%, 05/01/16		2,020,000		2,055,350
Total Food				8,476,262
Forest Products & Paper — 2.3%
Exopack Holding Corp., 10.00%, 06/01/18		2,110,000		2,125,825
Healthcare – Products — 10.2%
Kinetic Concepts, Inc., 12.50%, 11/01/19‡		2,715,000		2,484,225
Merge Healthcare, Inc., 11.75%, 05/01/15		2,850,000		2,956,875
Rotech Healthcare, Inc., 10.50%, 03/15/18		2,375,000		1,211,250
Rotech Healthcare, Inc., 10.75%, 10/15/15		2,885,000		2,784,025
Total Healthcare – Products				9,436,375
Healthcare – Services — 8.6%
Alliance Healthcare Services, Inc., 8.00%, 12/01/16		3,410,000		2,566,025
Radiation Therapy Services, Inc., 8.88%, 01/15/17‡		1,010,000		974,650
Radnet Management, Inc., 10.38%, 04/01/18		2,005,000		2,015,025
Select Medical Holdings Corp., 6.49%, 09/15/15@		2,425,000		2,364,375
Total Healthcare – Services				7,920,075
Household Products / Wares — 2.3%
Central Garden & Pet Co., 8.25%, 03/01/18		2,125,000		2,140,937
Leisure Time — 2.6%
ICON Health & Fitness, 11.88%, 10/15/16‡		2,725,000		2,391,187
Miscellaneous Manufacturing — 2.4%
JB Poindexter & Co., Inc., 9.00%, 04/01/22‡		2,235,000		2,246,175

See accompanying Notes to Financial Statements.

73

ADVISORSHARES TRUST
PERITUS HIGH YIELD ETF
Schedule of Investments (continued)

June 30, 2012

Investments	Shares		Value
Oil & Gas — 5.9%
United Refining Co., 10.50%, 02/28/18		2,760,000	$	2,842,800
Venoco, Inc., 11.50%, 10/01/17		2,475,000		2,611,125
Total Oil & Gas				5,453,925
Retail — 2.0%
RadioShack Corp., 6.75%, 05/15/19		2,450,000		1,831,375
Telecommunications — 2.5%
Cincinnati Bell, Inc., 8.75%, 03/15/18		2,400,000		2,322,000
Transportation — 1.3%
PHI, Inc., 8.63%, 10/15/18		1,185,000		1,202,775
Total CORPORATE BONDS (Cost $81,897,839)				79,339,226
FOREIGN BONDS — 11.0%
Airlines — 3.9%
Air Canada, 12.00%, 02/01/16 (Canada)‡		4,069,711		3,611,868
Oil & Gas — 1.8%
Welltec A/S, 8.00%, 02/01/19 (Denmark)‡		1,710,000		1,650,150
Transportation — 5.3%
CHC Helicopter SA, 9.25%, 10/15/20 (Luxembourg)		2,786,000		2,737,245
Navios Maritime Holdings, Inc., 8.13%, 02/15/19 (Marshall Islands)		2,470,000		2,124,200
Total Transportation				4,861,445
Total FOREIGN BONDS (Cost $10,579,572)				10,123,463
MONEY MARKET FUND — 0.9%
BlackRock Liquidity Funds TempFund Portfolio – Dollar Class (Cost $792,229)		792,229		792,229
Total Investments — 97.8% (Cost $93,269,640)				90,254,918
Other Assets in Excess of Liabilities — 2.2%				2,073,571
Net Assets — 100.0%			$	92,328,489

‡ Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may not be resold subject to that rule except to qualified institutional buyers. Unless otherwise noted, 144A securities are deemed to be liquid.

@ Variable rate instrument. The interest rate shown reflects the rate in effect at June 30, 2012.

See accompanying Notes to Financial Statements.

74

ADVISORSHARES TRUST
PERITUS HIGH YIELD ETF
Schedule of Investments (continued)

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Advertising		2.4	%
Aerospace/Defense		2.0
Airlines		3.9
Auto Manufacturers		1.0
Auto Parts & Equipment		2.8
Beverages		2.5
Chemicals		4.4
Commercial Services		6.3
Computers		6.3
Distribution / Wholesale		3.1
Diversified Financial Services		1.1
Electrical Components & Equipment		1.7
Electronics		3.0
Food		9.2
Forest Products & Paper		2.3
Healthcare – Products		10.2
Healthcare – Services		8.6
Household Products / Wares		2.3
Leisure Time		2.6
Miscellaneous Manufacturing		2.4
Oil & Gas		7.7
Retail		2.0
Telecommunications		2.5
Transportation		6.6
Money Market Fund		0.9
Total Investments		97.8
Other Assets in Excess of Liabilities		2.2
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

75

ADVISORSHARES TRUST
ROCKLEDGE SECTOR SAM ETF
Schedule of Investments

June 30, 2012

Investments	Shares		Value
EXCHANGE TRADED FUNDS — 103.8%
Equity Fund — 103.8%
Financial Select Sector SPDR Fund		45,112	$	659,537
Health Care Select Sector SPDR Fund		17,181		652,878
Technology Select Sector SPDR Fund		22,773		654,724
Utilities Select Sector SPDR Fund		17,559		649,507
Total Investments Before Securities Sold, Not Yet Purchased (Cost $2,550,857)				2,616,646
Securities Sold, Not Yet Purchased — (104.8)%
Equity Fund — (104.8)%
Consumer Discretionary Select Sector SPDR Fund		14,158		(619,837	)
Consumer Staples Select Sector SPDR Fund		19,300		(671,061	)
Energy Select Sector SPDR Fund		9,007		(597,794	)
Industrial Select Sector SPDR Fund		15,937		(568,473	)
Materials Select Sector SPDR Fund		5,244		(185,061	)
Total Securities Sold, Not Yet Purchased (Proceeds Received $(2,576,302))				(2,642,226	)
Total Investments — (1.0%) (Cost $(25,445))				(25,580	)
Other Assets in Excess of Liabilities — 101.0%				2,547,590
Net Assets — 100.0%			$	2,522,010

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Equity Fund		(1.0	)%
Total Investments		(1.0	)
Other Assets in Excess of Liabilities		101.0	%
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

76

ADVISORSHARES TRUST
TRIMTABS FLOAT SHRINK ETF
Schedule of Investments

June 30, 2012

Investments	Shares		Value
COMMON STOCKS — 99.7%
Aerospace/Defense — 2.0%
General Dynamics Corp.		1,269	$	83,704
Raytheon Co.		1,458		82,508
Total Aerospace/Defense				166,212
Agriculture — 2.9%
Altria Group, Inc.		2,349		81,158
Lorillard, Inc.		603		79,566
Philip Morris International, Inc.		936		81,675
Total Agriculture				242,399
Apparel — 2.9%
Carter's, Inc.*		1,530		80,478
Coach, Inc.		1,377		80,527
Ralph Lauren Corp.		567		79,414
Total Apparel				240,419
Auto Parts & Equipment — 1.0%
WABCO Holdings, Inc.*		1,638		86,699
Beverages — 2.2%
Brown-Forman Corp., Class B		828		80,192
Constellation Brands, Inc., Class A*		3,650		98,769
Total Beverages				178,961
Biotechnology — 1.0%
Gilead Sciences, Inc.*		1,557		79,843
Chemicals — 2.0%
Albemarle Corp.		1,368		81,587
NewMarket Corp.		378		81,875
Total Chemicals				163,462
Commercial Services — 12.0%
Apollo Group, Inc., Class A*		2,280		82,513
Chemed Corp.		1,332		80,506
Corporate Executive Board Co. (The)		2,034		83,150
Gartner, Inc.*		1,863		80,202
Global Payments, Inc.		1,944		84,039
ITT Educational Services, Inc.*		1,359		82,559

See accompanying Notes to Financial Statements.

77

ADVISORSHARES TRUST
TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)

June 30, 2012

Investments	Shares		Value
Commercial Services — 12.0% (continued)
Lender Processing Services, Inc.		3,294	$	83,272
Moody's Corp.		2,250		82,237
Robert Half International, Inc.		2,907		83,053
SEI Investments Co.		4,149		82,524
Strayer Education, Inc.		783		85,363
Zillow, Inc., Class A*		2,277		87,961
Total Commercial Services				997,379
Computers — 3.9%
Brocade Communications Systems, Inc.*		16,605		81,863
Dell, Inc.*		6,624		82,933
Diebold, Inc.		2,196		81,054
International Business Machines Corp.		405		79,210
Total Computers				325,060
Diversified Financial Services — 5.0%
American Express Co.		1,404		81,727
Franklin Resources, Inc.		765		84,907
Greenhill & Co., Inc.		2,376		84,704
NASDAQ Omx Group, Inc. (The)*		3,726		84,469
World Acceptance Corp.*		1,215		79,947
Total Diversified Financial Services				415,754
Electrical Components & Equipment — 1.0%
Belden, Inc.		2,475		82,541
Electronics — 2.9%
Mettler-Toledo International, Inc.*		513		79,951
Tech Data Corp.*		1,692		81,504
Waters Corp.*		1,017		80,821
Total Electronics				242,276
Food — 2.0%
Fresh Market, Inc. (The)*		1,494		80,123
Snyders-Lance, Inc.		3,258		82,200
Total Food				162,323
Healthcare – Products — 4.9%
C.R. Bard, Inc.		756		81,224
Cyberonics, Inc.*		1,755		78,870

See accompanying Notes to Financial Statements.

78

ADVISORSHARES TRUST
TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)

June 30, 2012

Investments	Shares		Value
Healthcare – Products — 4.9% (continued)
Idexx Laboratories, Inc.*		837	$	80,461
Masimo Corp.*		3,780		84,596
Varian Medical Systems, Inc.*		1,323		80,399
Total Healthcare – Products				405,550
Healthcare – Services — 1.0%
Laboratory Corp. of America Holdings*		882		81,682
Home Furnishings — 1.0%
Tempur-Pedic International, Inc.*		3,708		86,730
Insurance — 1.0%
Axis Capital Holdings Ltd. (Bermuda)		2,520		82,026
Internet — 4.0%
Ancestry.com, Inc.*		3,010		82,865
F5 Networks, Inc.*		819		81,540
OpenTable, Inc.*		1,818		81,828
Symantec Corp.*		5,643		82,444
Total Internet				328,677
Media — 2.0%
DIRECTV, Class A*		1,683		82,164
Viacom, Inc., Class B		1,710		80,404
Total Media				162,568
Metal Fabricate/Hardware — 1.0%
Mueller Industries, Inc.		1,953		83,178
Mining — 1.0%
Southern Copper Corp.		2,637		83,092
Miscellaneous Manufacturing — 2.0%
Cooper Industries PLC, Class A (Ireland)		1,197		81,611
Illinois Tool Works, Inc.		1,539		81,398
Total Miscellaneous Manufacturing				163,009
Office/Business Equipment — 1.0%	��
Pitney Bowes, Inc.		5,445		81,512

See accompanying Notes to Financial Statements.

79

ADVISORSHARES TRUST
TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)

June 30, 2012

Investments	Shares		Value
Oil & Gas — 2.0%
CVR Energy, Inc.*		3,240	$	86,119
Exxon Mobil Corp.		978		83,688
Total Oil & Gas				169,807
Pharmaceuticals — 2.9%
Herbalife Ltd. (Cayman Islands)		1,674		80,904
Medicis Pharmaceutical Corp., Class A		2,385		81,448
Pfizer, Inc.		3,588		82,524
Total Pharmaceuticals				244,876
Retail — 21.0%
Abercrombie & Fitch Co., Class A		2,628		89,720
Best Buy Co., Inc.		4,197		87,969
Brinker International, Inc.		2,619		83,468
Cheesecake Factory, Inc. (The)*		2,664		85,141
Chico's FAS, Inc.		5,643		83,742
Children's Place Retail Stores, Inc. (The)*		1,708		85,110
Cracker Barrel Old Country Store, Inc.		1,323		83,084
Dillard's, Inc., Class A		1,260		80,237
First Cash Financial Services, Inc.*		2,018		81,063
Gamestop Corp., Class A		4,500		82,620
Gap, Inc. (The)		2,997		81,998
Hibbett Sports, Inc.*		1,413		81,544
Home Depot, Inc. (The)		1,539		81,552
HSN, Inc.		2,016		81,346
Panera Bread Co., Class A*		567		79,062
PetSmart, Inc.		1,206		82,225
Ross Stores, Inc.		1,215		75,901
Saks, Inc.*		8,208		87,415
Staples, Inc.		6,300		82,215
Walgreen Co.		2,709		80,132
Williams-Sonoma, Inc.		2,404		84,068
Total Retail				1,739,612
Semiconductors — 4.1%
Atmel Corp.*		12,897		86,410
Cirrus Logic, Inc.*		2,826		84,441

See accompanying Notes to Financial Statements.

80

ADVISORSHARES TRUST
TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)

June 30, 2012

Investments	Shares		Value
Semiconductors — 4.1% (continued)
QLogic Corp.*		5,923	$	81,086
Veeco Instruments, Inc.*		2,502		85,969
Total Semiconductors				337,906
Software — 7.0%
Acxiom Corp.*		5,706		86,218
Akamai Technologies, Inc.*		2,610		82,868
BMC Software, Inc.*		1,908		81,433
CA, Inc.		3,132		84,846
Electronic Arts, Inc.*		6,705		82,807
Fiserv, Inc.*		1,134		81,897
Intuit, Inc.		1,386		82,259
Total Software				582,328
Telecommunications — 2.0%
Cisco Systems, Inc.		4,770		81,901
Neustar, Inc., Class A*		2,541		84,869
Total Telecommunications				166,770
Toys/Games/Hobbies — 1.0%
Mattel, Inc.		2,484		80,581
Total Investments — 99.7% (Cost $7,946,006)				8,263,232
Other Assets in Excess of Liabilities — 0.3%				27,642
Net Assets — 100.0%			$	8,290,874

* Non-income producing security

See accompanying Notes to Financial Statements.

81

ADVISORSHARES TRUST
TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Aerospace/Defense		2.0	%
Agriculture		2.9
Apparel		2.9
Auto Parts & Equipment		1.0
Beverages		2.2
Biotechnology		1.0
Chemicals		2.0
Commercial Services		12.0
Computers		3.9
Diversified Financial Services		5.0
Electrical Components & Equipment		1.0
Electronics		2.9
Food		2.0
Healthcare – Products		4.9
Healthcare – Services		1.0
Home Furnishings		1.0
Insurance		1.0
Internet		4.0
Media		2.0
Metal Fabricate/Hardware		1.0
Mining		1.0
Miscellaneous Manufacturing		2.0
Office/Business Equipment		1.0
Oil & Gas		2.0
Pharmaceuticals		2.9
Retail		21.0
Semiconductors		4.1
Software		7.0
Telecommunications		2.0
Toys/Games/Hobbies		1.0
Total Investments		99.7
Other Assets in Excess of Liabilities		0.3
Net Assets		100.0	%

 

See accompanying Notes to Financial Statements.

82

ADVISORSHARES TRUST
WCM/BNY MELLON FOCUSED GROWTH ADR ETF
Schedule of Investments

June 30, 2012

Investments	Shares		Value
COMMON STOCKS — 92.1%
Beverages — 9.5%
Cia de Bebidas DAS Americas (Brazil)(a)		4,983	$	190,998
Coca-Cola Enterprises, Inc.		7,044		197,514
Coca-Cola Femsa SAB de CV (Mexico)(a)		1,724		225,637
Total Beverages				614,149
Biotechnology — 3.7%
Novozymes A/S (Denmark)(a)		9,245		238,521
Chemicals — 4.8%
Potash Corp. of Saskatchewan, Inc. (Canada)		7,144		312,121
Commercial Services — 4.1%
Sgs SA (Switzerland)(a)		14,053		263,213
Computers — 2.6%
Infosys Ltd. (India)(a)		3,709		167,127
Cosmetics / Personal Care — 4.8%
L'Oreal SA (France)(a)		13,412		313,841
Distribution / Wholesale — 5.7%
LI & Fung Ltd. (Hong Kong)(a)		96,265		369,658
Diversified Financial Services — 3.0%
Lazard Ltd., Class A (Bermuda)		7,469		194,119
Engineering & Construction — 2.9%
ABB Ltd. (Switzerland)*(a)		11,346		185,167
Food — 5.6%
BRF – Brasil Foods SA (Brazil)(a)		6,659		101,150
Nestle SA (Switzerland)(a)		4,388		262,139
Total Food				363,289
Healthcare – Products — 4.7%
Essilor International SA (France)(a)		6,502		302,278
Holding Companies – Diversified — 2.3%
LVMH Moet Hennessy Louis Vuitton SA (France)(a)		4,842		146,422
Insurance — 4.1%
ACE Ltd. (Switzerland)		3,574		264,941

See accompanying Notes to Financial Statements.

83

ADVISORSHARES TRUST
WCM/BNY MELLON FOCUSED GROWTH ADR ETF
Schedule of Investments (continued)

June 30, 2012

Investments	Shares		Value
Internet — 3.6%
Baidu, Inc. (China)*(a)		2,016	$	231,800
Machinery – Diversified — 2.8%
Fanuc Corp. (Japan)(a)		6,618		181,333
Oil & Gas Services — 4.3%
Core Laboratories N.V. (Netherlands)		2,402		278,392
Pharmaceuticals — 5.3%
NOVO Nordisk A/S (Denmark)(a)		2,356		342,421
Retail — 7.3%
Arcos Dorados Holdings, Inc., Class A (Argentina)		20,153		297,861
Wal-Mart de Mexico SAB de CV (Mexico)(a)		6,654		177,263
Total Retail				475,124
Semiconductors — 6.9%
Arm Holdings PLC (United Kingdom)(a)		5,244		124,755
Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan)(a)		22,814		318,483
Total Semiconductors				443,238
Transportation — 4.1%
Canadian National Railway Co. (Canada)		3,159		266,556
Total Common Stocks (Cost $6,144,175)				5,953,710
MONEY MARKET FUND — 8.1%
Invesco Government & Agency Portfolio – Private Investment Class (Cost $521,354)		521,354		521,354
Total Investments — 100.2% (Cost $6,665,529)				6,475,064
Liabilities in Excess of Other Assets — (0.2%)				(12,655	)
Net Assets — 100.0%			$	6,462,409

ADR — American Depositary Receipt

* Non-income producing security

(a) American Depositary Receipt

See accompanying Notes to Financial Statements.

84

ADVISORSHARES TRUST
WCM/BNY MELLON FOCUSED GROWTH ADR ETF
Schedule of Investments (continued)

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Beverages		9.5	%
Biotechnology		3.7
Chemicals		4.8
Commercial Services		4.1
Computers		2.6
Cosmetics / Personal Care		4.8
Distribution / Wholesale		5.7
Diversified Financial Services		3.0
Engineering & Construction		2.9
Food		5.6
Healthcare – Products		4.7
Holding Companies – Diversified		2.3
Insurance		4.1
Internet		3.6
Machinery – Diversified		2.8
Oil & Gas Services		4.3
Pharmaceuticals		5.3
Retail		7.3
Semiconductors		6.9
Transportation		4.1
Money Market Fund		8.1
Total Investments		100.2
Liabilities in Excess of Other Assets		(0.2	)
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

85

ADVISORSHARES TRUST
Statements of Assets and Liabilities

June 30, 2012

	Accuvest Global Long Short ETF			Accuvest Global Opportunities ETF			Active Bear ETF			Cambria Global Tactical ETF			Dent Tactical ETF			Global Echo ETF
ASSETS
Investments, at Cost	$	17,153,014		$	13,364,761		$	183,818,915		$	75,928,576		$	3,792,422		$	5,144,173
Investments, at Market Value		17,578,142			13,461,519			183,818,915			78,256,009			3,861,204			5,202,633
Cash		65,216			—			66,557,758			—			—			—
Cash collateral held at brokers		9,655,360			—			373,667,097			—			—			—
Receivable from Securities Sold		1,394,636			—			25,480,392			—			2,844,372			486,631
Capital Shares Receivable		121,287			—			4,221,474			—			—			—
Interest Receivable		—			—			1,116			297			143			8,072
Dividend Receivable		5,270			—			—			7,930			1,602			6,108
Reclaim Receivable		—			—			—			—			—			—
Due from Investment Advisor		—			—			—			—			7,150			—
Prepaid Trustee Fees		148			148			148			148			148			—
Prepaid Expenses		8,841			10,838			6,040			1,610			4,226			—
Total Assets		28,828,900			13,472,505			653,752,940			78,265,994			6,718,845			5,703,444
LIABILITIES
Due to Custodian		—			—			—			227			120			1,224
Securities Sold, Not Yet Purchased *		10,713,565			—			301,334,083			—			—			—
Advisory Payable		7,189			7,627			348,582			45,893			—			12,871
Payable for Securities Purchased		—			—			38,393,012			—			—			605,051
Capital Shares Payable		—			—			—			—			—			—
Dividend Payable		—			—			212,461			—			—			—
Interest Payable		57,329			—			133,515			—			—			—
Payable to Global Echo Foundation		—			—			—			—			—			4,681
Accrued Expenses		28,853			22,625			107,804			48,926			39,874			—
Total Liabilities		10,806,936			30,252			340,529,457			95,046			39,994			623,827
NET ASSETS	$	18,021,964		$	13,442,253		$	313,223,483		$	78,170,948		$	6,678,851		$	5,079,617
COMPONENTS OF NET ASSETS
Capital Stock at Zero Par Value	$	22,850,125		$	14,316,721		$	321,627,591		$	96,424,454		$	8,249,828		$	5,027,441
Undistributed Net Investment Income (Loss)		(194,819	)		128,764			(2,880,389	)		349,617			(217,067	)		—
Accumulated Net Gain (Loss) on Investments		(5,214,203	)		(1,099,990	)		(12,114,300	)		(20,930,556	)		(1,422,692	)		(6,284	)
Unrealized Appreciation (Depreciation) on Investments		580,861			96,758			6,590,581			2,327,433			68,782			58,460
NET ASSETS	$	18,021,964		$	13,442,253		$	313,223,483		$	78,170,948		$	6,678,851		$	5,079,617
SHARES ISSUED AND OUTSTANDING
Shares Outstanding (Unlimited Shares Authorized)		850,000			550,000			13,425,000			3,300,000			375,000			100,000
Net Asset Value (NAV) Per Share	$	21.20		$	24.44		$	23.33		$	23.69		$	17.81		$	50.80
*Proceeds Received from Securities Sold, Not Yet Purchased	$	10,869,298		$	—		$	307,924,664		$	—		$	—		$	—

See accompanying Notes to Financial Statements.

86

ADVISORSHARES TRUST
Statements of Assets and Liabilities

June 30, 2012

	Madrona Domestic ETF			Madrona Global Bond ETF			Madrona International ETF			Meidell Tactical Advantage ETF			Peritus High Yield ETF			Rockledge SectorSAM ETF			TrimTabs Float Shrink ETF			WCM/BNY Mellon Focused Growth ADR ETF
ASSETS
Investments, at Cost	$	15,176,677		$	20,903,353		$	15,430,767		$	2,963,008		$	93,269,640		$	2,550,857		$	7,946,006		$	6,665,529
Investments, at Market Value		15,194,233			21,263,040			14,177,984			2,980,946			90,254,918			2,616,646			8,263,232			6,475,064
Cash		2,250			—			—			—			—			80,079			—			—
Cash collateral held at brokers		—			—			—			—			—			2,466,533			—			—
Receivable from Securities Sold		—			—			—			2,697,833			702,042			—			2,553,077			—
Capital Shares Receivable		—			—			—			—			—			—			585,563			—
Interest Receivable		8			17			1,523			9			2,196,788			—			—			8
Dividend Receivable		17,104			9,388			64,315			2,708			—			—			5,491			1,305
Reclaim Receivable		—			—			2,273			—			—			—			—			8,215
Due from Investment Advisor		—			—			—			—			—			8,912			—			19,110
Prepaid Trustee Fees		148			148			148			148			148			148			148			148
Prepaid Expenses		6,981			6,982			8,137			6,673			2,550			14,238			16,858			3,220
Total Assets		15,220,724			21,279,575			14,254,380			5,688,317			93,156,446			5,186,556			11,424,369			6,507,070
LIABILITIES
Due to Custodian		—			39,237			1,290			120			706,420			—			3,848			8,710
Securities Sold, Not Yet Purchased*		—			—			—			—			—			2,642,226			—			—
Advisory Payable		2,333			7,757			2,841			5,546			77,248			—			2,696			—
Payable for Securities Purchased		—			—			—			—			—			—			—			—
Capital Shares Payable		—			—			—			—			—			—			3,096,884			—
Dividend Payable		—			—			—			—			—			—			—			—
Interest Payable		—			—			—			—			—			404			—			—
Payable to Global Echo Foundation		—			—			—			—			—			—			—			—
Accrued Expenses		30,171			37,612			31,533			30,242			44,289			21,916			30,067			35,951
Total Liabilities		32,504			84,606			35,664			35,908			827,957			2,664,546			3,133,495			44,661
NET ASSETS	$	15,188,220		$	21,194,969		$	14,218,716		$	5,652,409		$	92,328,489		$	2,522,010		$	8,290,874		$	6,462,409
COMPONENTS OF NET ASSETS
Capital Stock at Zero Par Value	$	16,191,196		$	20,837,769		$	17,284,924		$	5,992,434		$	95,167,840		$	2,588,482		$	7,970,755		$	6,801,503
Undistributed Net Investment Income (Loss)		17,812			5,036			143,255			407			221,026			(13,425	)		12,490			12,232
Accumulated Net Gain (Loss) on Investments		(1,038,344	)		(7,523	)		(1,956,680	)		(358,370	)		(45,655	)		(52,912	)		(9,597	)		(160,861	)
Unrealized Appreciation (Depreciation) on Investments		17,556			359,687			(1,252,783	)		17,938			(3,014,722	)		(135	)		317,226			(190,465	)
NET ASSETS	$	15,188,220		$	21,194,969		$	14,218,716		$	5,652,409		$	92,328,489		$	2,522,010		$	8,290,874		$	6,462,409
SHARES ISSUED AND OUTSTANDING
Shares Outstanding (Unlimited Shares Authorized		600,000			825,000			675,000			225,000			1,900,000			100,000			250,000			225,000
Net Asset Value (NAV) Per Share	$	25.31		$	25.69		$	21.06		$	25.12		$	48.59		$	25.22		$	33.16		$	28.72
*Proceeds Received from Securities Sold, Not Yet Purchased	$	—		$	—		$	—		$	—		$	—		$	2,576,302		$	—		$	—

See accompanying Notes to Financial Statements.

87

ADVISORSHARES TRUST
Statements of Operations

Period Ended June 30, 2012

	Accuvest Global Long Short ETF			Accuvest Global Opportunities ETF(1)			Active Bear ETF			Cambria Global Tactical ETF			Dent Tactical ETF			Global Echo ETF(2)
INVESTMENT INCOME:
Dividend Income	$	221,031		$	184,221		$	–		$	2,554,894		$	69,017		$	20,187
Interest Income		—			—			8,316			4,782			827			1,288
Foreign withholding tax		—			—			—			—			—			(1,228	)
Total Investment Income		221,031			184,221			8,316			2,559,676			69,844			20,247
EXPENSES:
Advisory Fees		146,642			42,148			2,178,565			1,235,278			132,616			18,875
Dividend Expense		225,490			—			1,023,723			—			—			—
Professional Fees		74,663			33,713			49,160			23,377			29,457			—
Accounting & Administration Fees		49,325			1,773			60,930			83,150			87,791			—
Offering Fees		13,788			—			32,147			20,784			—			—
Exchange Listing Fees		13,668			7,663			3,559			7,890			10,957			—
Pricing Fees		11,845			3,514			6,842			6,047			6,606			—
Report to Shareholders		11,263			8,673			51,695			45,624			6,142			—
Custody Fees		3,981			569			9,063			27,344			188			—
Insurance Fees		3,476			—			31			2,037			1,472			—
Transfer Agent Fees		2,092			379			16,808			11,211			65			—
Trustee Fees		600			777			102			—			7,756			—
Interest on Securities Sold Short		141,845			—			969,392			—			—			—
Contribution to Global Echo Foundation		—			—			—			—			—			6,864
Licensing Fees		—			—			—			—			—			—
Miscellaneous Fees		2,261			1,632			35,648			25,566			437			—
Total Expenses		700,939			100,841			4,437,665			1,488,308			283,487			25,739
Advisory Fees Waived/Recoupment		(146,642	)		(45,384	)		15,251			(129,383	)		(110,076	)		—
Expense Reimbursement		(58,011	)		—			—			—			—			—
Net Expenses		496,286			55,457			4,452,916			1,358,925			173,411			25,739
Net Investment Income (Loss)		(275,255	)		128,764			(4,444,600	)		1,200,751			(103,567	)		(5,492	)
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net Realized Gain (Loss) on:
Investments		(1,911,082	)		(1,099,990	)		(6,817,156	)		(19,405,065	)		(1,443,529	)		(8,396	)
In-Kind Redemptions		64,443			—			—			3,960,479			10,095			(48,896	)
Swaps		61,025			—			—			—			—			—
Short Sales		1,321,906			—			—			(12,734	)		—			—
Futures		(249,614	)		—			—			—			—			—
Distributions by other Investment Companies		—			—			—			170,106			—			—
Net Change in Unrealized Appreciation (Depreciation) on:
Investments		520,641			96,758			—			81,278			(44,620	)		58,460
Short Sales		351,827			—			6,206,740			—			—			—
Swaps		540,381			—			—			—			—			—
Net Realized and Unrealized Gain (Loss)		699,527			(1,003,232	)		(610,416	)		(15,205,936	)		(1,478,054	)		1,168
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATONS	$	424,272		$	(874,468	)	$	(5,055,016	)	$	(14,005,185	)	$	(1,581,621	)	$	(4,324	)

(1) Represents the period January 25, 2012 (commencement of operations) to June 30, 2012.

(2) Represents the period May 23, 2012 (commencement of operations) to June 30,2012.

(3) Represents the period January 11, 2012 (commencement of operations) to June 30, 2012.

(4) Represents the period October 5, 2011 (commencement of operations) to June 30, 2012.

See accompanying Notes to Financial Statements.

88

ADVISORSHARES TRUST
Statements of Operations

Period Ended June 30, 2012

	Madrona Domestic ETF			Madrona Global Bond ETF			Madrona International ETF			Meidell Tactical Advantage ETF			Peritus High Yield ETF			Rockledge SectorSAM ETF(3)			TrimTabs Float Shrink ETF(4)			WCM/BNY Mellon Focused Growth ADR ETF
INVESTMENT INCOME:
Dividend Income	$	244,197		$	595,287		$	381,390		$	46,106		$	–		$	13,352		$	64,300		$	125,849
Interest Income		76			145			1,885			11			6,715,467			—			2			45
Foreign withholding tax		(68	)		—			(40,595	)		—			—			—			—			(17,037	)
Total Investment Income		244,205			595,432			342,680			46,117			6,715,467			13,352			64,302			108,857
EXPENSES:
Advisory Fees		118,078			78,989			100,238			53,257			739,093			60,000			48,942			119,999
Dividend Expense		—			—			—			—			—			11,327			—			—
Professional Fees		27,916			27,044			27,916			27,180			31,988			30,049			34,151			96,132
Accounting & Administration Fees		22,639			13,771			21,477			11,511			43,083			495			6,461			56,003
Offering Fees		—			—			—			—			24,805			—			—			6,532
Exchange Listing Fees		17,925			17,925			17,925			17,583			9,575			7,647			5,925			8,519
Pricing Fees		5,542			5,541			5,541			5,543			13,787			3,321			3,115			6,874
Report to Shareholders		5,195			5,126			4,924			6,567			16,685			8,750			8,994			3,450
Custody Fees		11,846			1,398			9,578			1,447			7,970			195			5,815			382
Insurance Fees		858			861			800			385			492			—			—			118
Transfer Agent Fees		1,124			1,200			953			263			5,351			89			386			—
Trustee Fees		1,525			1,525			1,525			1,547			—			776			981			650
Interest on Securities Sold Short		—			—			—			—			—			7,543			—			—
Contribution to Global Echo Foundation		—			—			—			—			—			—			—			—
Licensing Fees		—			—			—			—			—			—			—			6,268
Miscellaneous Fees		2,197			3,444			2,104			—			11,461			290			940			573
Total Expenses		214,845			156,824			192,981			125,283			904,290			130,482			115,710			305,500
Advisory Fees Waived/Recoupment		(30,265	)		(5,992	)		(36,187	)		(53,257	)		2,779			(60,000	)		(66,768	)		(119,999	)
Expense Reimbursement		90			—			—			(26,316	)		—			(33,860	)		—			(94,033	)
Net Expenses		184,670			150,832			156,794			45,710			907,069			36,622			48,942			91,468
Net Investment Income (Loss)		59,535			444,600			185,886			407			5,808,398			(23,270	)		15,360			17,389
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net Realized Gain (Loss) on:
Investments		(1,046,602	)		(7,866	)		(1,985,407	)		(354,783	)		373,200			60,794			1,951,225			(90,359	)
In-Kind Redemptions		286,578			45,128			28,655			205,220			—			53,402			(985,266	)		532,629
Swaps		—			—			—			—			—			—			—			—
Short Sales		—			—			—			—			—			(103,861	)		—			—
Futures		—			—			—			—			—			—			—			—
Distributions by other Investment Companies		—			—			—			—			33			—			—			—
Net Change in Unrealized Appreciation (Depreciation) on:
Investments		(88,849	)		359,809			(1,356,411	)		8,535			(2,589,171	)		65,789			317,226			(1,162,845	)
Short Sales		—			—			—			—			—			(65,924	)		—			—
Swaps		—			—			—			—			—			—			—			—
Net Realized and Unrealized Gain (Loss)		(848,873	)		397,071			(3,313,163	)		(141,028	)		(2,215,938	)		10,200			1,283,185			(720,575	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATONS	$	(789,338	)	$	841,671		$	(3,127,277	)	$	(140,621	)	$	3,592,460		$	(13,070	)	$	1,298,545		$	(703,186	)

See accompanying Notes to Financial Statements.

89

ADVISORSHARES TRUST
Statements of Changes in Net Assets

 

	Accuvest Global Long Short ETF(1)						Accuvest Global Opportunities ETF			Active Bear ETF
	Year ended June 30, 2012			For the period July 9, 2010* to June 30, 2011			For the period January 25, 2012* to June 30, 2012			Year ended June 30, 2012			For the period January 27, 2011* to June 30, 2011
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income (Loss)	$	(275,255	)	$	(856,178	)	$	128,764		$	(4,444,600	)	$	(509,195	)
Net Realized Gain (Loss) on Investment Transactions		(713,322	)		(2,721,092	)		(1,099,990	)		(6,817,156	)		(3,765,080	)
Net Change in Unrealized Appreciation (Depreciation) on Investment Transactions		1,412,849			(831,988	)		96,758			6,206,740			383,841
Net Increase (Decrease) In Net Assets Resulting From Operations		424,272			(4,409,258	)		(874,468	)		(5,055,016	)		(3,890,434	)
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income		—			—			—			—			—
Net Realized Gains		(46,188	)		—			—			—			—
Total Distributions		(46,188	)		—			—			—			—
CAPITAL STOCK TRANSACTIONS
Proceeds from Shares Issued		18,018,647			53,672,974			14,316,721			363,431,857			64,290,026
Value of Shares Redeemed		(9,760,167	)		(39,878,316	)		—			(95,542,692	)		(10,010,258	)
Net Increase (Decrease) From Capital Stock Transactions		8,258,480			13,794,658			14,316,721			267,889,165			54,279,768
Net Increase (Decrease) In Net Assets		8,636,564			9,385,400			13,442,253			262,834,149			50,389,334
Net Assets:
Beginning of Period		9,385,400			—			—			50,389,334			—
End of Period		18,021,964			9,385,400			13,442,253			313,223,483			50,389,334
Undistributed Net Investment Income (Loss)		(194,819	)		—			128,764			(2,880,389	)		—
Changes in Shares Outstanding
Shares Outstanding, Beginning of Period		450,000			—			—			2,225,000			—
Shares Sold		850,000			2,150,000			550,000			15,025,000			2,650,000
Shares Redeemed		(450,000	)		(1,700,000	)		—			(3,825,000	)		(425,000	)
End of Period		850,000			450,000			550,000			13,425,000			2,225,000

* Commencement of operations

(1) Formerly Mars Hill Global Relative Value ETF

See accompanying Notes to Financial Statements.

90

ADVISORSHARES TRUST
Statements of Changes in Net Assets

 

	Cambria Global Tactical ETF						Dent Tactical ETF						Global Echo ETF			Madrona Domestic ETF
	Year ended June 30, 2012			For the period October 26, 2010* to June 30, 2011			Year ended June 30, 2012			Year ended June 30, 2011			For the period May 23, 2012* to June 30, 2012			Year ended June 30, 2012			For the period June 21, 2011* to June 30, 2011
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income (Loss)	$	1,200,751		$	1,038,919		$	(103,567	)	$	(224,436	)	$	(5,492	)	$	59,535		$	157
Net Realized Gain (Loss) on Investment Transactions		(15,287,214	)		(1,305,691	)		(1,433,434	)		2,245,846			(57,292	)		(760,024	)		—
Net Change in Unrealized Appreciation (Depreciation) on Investment Transactions		81,278			2,246,155			(44,620	)		164,517			58,460			(88,849	)		106,405
Net Increase (Decrease) In Net Assets Resulting From Operations		(14,005,185	)		1,979,383			(1,581,621	)		2,185,927			(4,324	)		(789,338	)		106,562
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income		(1,214,084	)		(577,538	)		—			(32,743	)		—			(39,582	)		—
Net Realized Gains		—			—			—			—			—			—			—
Total Distributions		(1,214,084	)		(577,538	)		—			(32,743	)		—			(39,582	)		—
CAPITAL STOCK TRANSACTIONS
Proceeds from Shares Issued		9,060,733			244,207,308			1,248,355			5,107,681			25,000,000			15,229,540			2,500,000
Value of Shares Redeemed		(94,507,088	)		(66,772,581	)		(10,000,409	)		(12,068,621	)		(19,916,059	)		(1,818,962	)		—
Net Increase (Decrease) From Capital Stock Transactions		(85,446,355	)		177,434,727			(8,752,054	)		(6,960,940	)		5,083,941			13,410,578			2,500,000
Net Increase (Decrease) In Net Assets		(100,665,624	)		178,836,572			(10,333,675	)		(4,807,756	)		5,079,617			12,581,658			2,606,562
Net Assets:
Beginning of Period		178,836,572			—			17,012,526			21,820,282			—			2,606,562			—
End of Period		78,170,948			178,836,572			6,678,851			17,012,526			5,079,617			15,188,220			2,606,562
Undistributed Net Investment Income (Loss)		349,617			472,283			(217,067	)		(210,640	)		—			17,812			157
Changes in Shares Outstanding
Shares Outstanding, Beginning of Period		6,900,000			—			830,000			1,160,000			—			100,000			—
Shares Sold		350,000			9,450,000			65,000			260,000			500,000			575,000			100,000
Shares Redeemed		(3,950,000	)		(2,550,000	)		(520,000	)		(590,000	)		(400,000	)		(75,000	)		—
End of Period		3,300,000			6,900,000			375,000			830,000			100,000			600,000			100,000

* Commencement of operations.

See accompanying Notes to Financial Statements.

91

ADVISORSHARES TRUST
Statements of Changes in Net Assets

 

	Madrona Global Bond ETF						Madrona International ETF
	Year ended June 30, 2012			For the period June 21, 2011* to June 30, 2011			Year ended June 30, 2012			For the period June 21, 2011* to June 30, 2011
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income (Loss)	$	444,600		$	1,149		$	185,886		$	790
Net Realized Gain (Loss) on Investment Transactions		37,262			—			(1,956,752	)		12,669
Net Change in Unrealized Appreciation (Depreciation) on Investment Transactions		359,809			(122	)		(1,356,411	)		103,628
Net Increase (Decrease) In Net Assets Resulting From Operations		841,671			1,027			(3,127,277	)		117,087
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income		(441,742	)		—			(43,912	)		—
Net Realized Gains		—			—			(13,200	)		—
Total Distributions		(441,742	)		—			(57,112	)		—
CAPITAL STOCK TRANSACTIONS
Proceeds from Shares Issued		19,573,154			2,500,000			16,407,072			2,500,000
Value of Shares Redeemed		(1,279,141	)		—			(1,621,054	)		—
Net Increase (Decrease) From Capital Stock Transactions		18,294,013			2,500,000			14,786,018			2,500,000
Net Increase (Decrease) In Net Assets		18,693,942			2,501,027			11,601,629			2,617,087
Net Assets:
Beginning of Period		2,501,027			—			2,617,087			—
End of Period		21,194,969			2,501,027			14,218,716			2,617,087
Undistributed Net Investment Income (Loss)		5,036			1,149			143,255			790
Changes in Shares Outstanding
Shares Outstanding, Beginning of Period		100,000			—			100,000			—
Shares Sold		775,000			100,000			650,000			100,000
Shares Redeemed		(50,000	)		—			(75,000	)		—
End of Period		825,000			100,000			675,000			100,000

* Commencement of operations

(1) Formerly Mars Hill Global Relative Value ETF

See accompanying Notes to Financial Statements.

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Statements of Changes in Net Assets

 

	Meidell Tactical Advantage ETF						Peritus High Yield ETF						Rockledge SectorSAM ETF			TrimTabs Float Shrink ETF			WCM/BNY MellonFocused Growth ADR ETF
	Year ended June 30, 2012			For the period June 23, 2011* to June 30, 2011			Year ended June 30, 2012			For the period December 1, 2010* to June 30, 2011			For the period January 11, 2012* to June 30, 2012			For the period October 5, 2011* to June 30, 2012			Year ended June 30, 2012			For the period July 21, 2010* to June 30, 2011
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income (Loss)	$	407		$	546		$	5,808,398		$	1,097,603		$	(23,270	)	$	15,360		$	17,389		$	34,265
Net Realized Gain (Loss) on Investment Transactions		(149,563	)		(3,994	)		373,233			597,832			10,335			965,959			442,270			191,372
Net Change in Unrealized Appreciation (Depreciation) on Investment Transactions		8,535			9,403			(2,589,171	)		(425,551	)		(135	)		317,226			(1,162,845	)		972,380
Net Increase (Decrease) In Net Assets Resulting From Operations		(140,621	)		5,955			3,592,460			1,269,884			(13,070	)		1,298,545			(703,186	)		1,198,017
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income		(1,366	)		—			(5,707,019	)		(1,009,110	)		—			(2,501	)		(25,106	)		(24,332	)
Net Realized Gains		—			—			(612,898	)		—			—			—			(27,533	)		—
Total Distributions		(1,366	)		—			(6,319,917	)		(1,009,110	)		—			(2,501	)		(52,639	)		(24,332	)
CAPITAL STOCK TRANSACTIONS
Proceeds from Shares Issued		7,926,365			2,500,000			58,595,073			46,184,231			5,057,608			37,243,628			4,339,699			9,578,612
Value of Shares Redeemed		(4,637,924	)		—			(7,389,685	)		(2,594,447	)		(2,522,528	)		(30,248,798	)		(5,772,068	)		(2,101,694	)
Net Increase (Decrease) From Capital Stock Transactions		3,288,441			2,500,000			51,205,388			43,589,784			2,535,080			6,994,830			(1,432,369	)		7,476,918
Net Increase (Decrease) In Net Assets		3,146,454			2,505,955			48,477,931			43,850,558			2,522,010			8,290,874			(2,188,194	)		8,650,603
Net Assets:
Beginning of Period		2,505,955			—			43,850,558			—			—			—			8,650,603			—
End of Period		5,652,409			2,505,955			92,328,489			43,850,558			2,522,010			8,290,874			6,462,409			8,650,603
Undistributed Net Investment Income(Loss)		407			1,366			221,026			94,853			(13,425	)		12,490			12,232			14,402
Changes in Shares Outstanding
Shares Outstanding, Beginning of Period		100,000			—			850,000			—			—			—			275,000			—
Shares Sold		300,000			100,000			1,200,000			900,000			200,000			1,200,000			150,000			350,000
Shares Redeemed		(175,000	)		—			(150,000	)		(50,000	)		(100,000	)		(950,000	)		(200,000	)		(75,000	)
End of Period		225,000			100,000			1,900,000			850,000			100,000			250,000			225,000			275,000

* Commencement of operations.

See accompanying Notes to Financial Statements.

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ADVISORSHARES TRUST
Statements of Cash Flows

	Accuvest Global Long Short ETF			Active Bear ETF			Rockledge SectorSAM ETF
	For the year ended June 30, 2012						For the period January 11, 2012* to June 30, 2012
CASH FLOWS PROVIDED (USED) BY OPERATING ACTIVITIES:
Dividends received	$	215,761		$	—		$	13,352
Interest received		—			7,200			—
Operating expenses paid		(46,025	)		(2,067,786	)		(19,134	)
Net purchases of short-term investments		(6,620	)		(159,376,580	)		—
Realized gain on swap contracts		61,025			—			—
Realized loss on futures contracts		(249,614	)		—			—
Purchases of long-term investments		(51,553,500	)		—			(13,239,031	)
Proceeds from disposition of long-term investments		42,208,840			—			10,802,370
Increase in receivables for securities sold		(1,394,636	)		(24,542,678	)		—
Increase in payables for securities purchased		—			37,890,877			—
Net increase in short sales		5,069,374			256,603,317			2,472,441
Dividends paid		(311,902	)		(839,819	)		(10,923	)
Interest paid		(84,516	)		(876,419	)		(7,543	)
Net Cash Provided (Used) By Operating Activities		(6,091,813	)		106,798,112			11,532
CASH FLOWS PROVIDED (USED) BY FINANCING ACTIVITIES:
Proceeds from sale of shares		8,137,193			266,522,492			2,535,080
Distributions from realized gains		(46,188	)		—			—
Deposits with brokers for swap contracts and short sales		(2,089,858	)		(328,006,992	)		(2,466,533	)
Net Cash Flows Provided By Financing Activities		6,001,147			(61,484,500	)		68,547
NET INCREASE IN CASH		(90,666	)		45,313,612			80,079
Cash, Beginning of period		155,882			21,244,146			—
Cash, End of period	$	65,216		$	66,557,758		$	80,079
RECONCILIATION OF INCREASE IN NET ASSETS FROM OPERATIONS TO NET CASH FLOWS PROVIDED (USED) BY OPERATING ACTIVITIES:
Decrease in Net Assets From Operations	$	424,272		$	(5,055,016	)	$	(13,070	)
Increase/ Decrease in investments, at value		(5,170,022	)		97,837,153			25,580
Increase in payable for securities purchased		—			37,890,877			—
Increase in receivable for securities sold		(1,394,636	)		(24,542,678	)		—
Increase in interest receivable		—			(1,116	)		—
Increase in dividends receivable		(5,270	)		—			—
Increase/ Decrease in prepaid expense		74,709			25,959			(14,386	)
Increase in interest payable		57,329			92,973			404
Increase/ Decrease in dividends payable		(86,412	)		183,904			—
Increase in accrued expenses		8,217			366,056			13,004
Total Adjustments		(6,516,085	)		111,853,128			24,602
Net Cash Flows Provided (Used) By Operating Activities	$	(6,091,813	)	$	106,798,112		$	11,532

* Commencement of operations

See accompanying Notes to Financial Statements.

94

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ADVISORSHARES TRUST
Financial Highlights

 

	Accuvest Global Long Short ETF(1)						Accuvest Global Opportunities ETF			Active Bear ETF
	Year ended June 30, 2012			For the period July 9, 2010* to June 30, 2011			For the period January 25, 2012* to June 30, 2012			Year ended June 30, 2012			For the period January 27, 2011* to June 30, 2011
Selected Data for a Share of Capital Stock Outstanding
Net Asset Value, Beginning of Period	$	20.86		$	25.00		$	25.00		$	22.65		$	25.00
Investment Operations
Net Investment Income (Loss)(2)		(0.68	)		(0.67	)		0.31			(0.72	)		(0.30	)
Net Realized and Unrealized Gain (Loss) on Investments		1.33			(3.47	)		(0.87	)		1.40			(2.05	)
Distributions of Net Realized Gains by other investment companies		—			—			—			—			—
Net Increase (Decrease) in Net Assets Resulting from Investment Operations		0.65			(4.14	)		(0.56	)		0.68			(2.35	)
Distributions from Net Investment Income		(0.31	)		—			—			—			—
Distributions from Realized Capital Gains		—			—			—			—			—
Total Distributions		(0.31	)		—			—			—			—
Net Asset Value, End of Period	$	21.20		$	20.86		$	24.44		$	23.33		$	22.65
Market Value, End of Period	$	21.22		$	20.86		$	24.45		$	23.34		$	22.65
Total Return
Total Investment Return Based on Net Asset Value(4)		3.15	%		(16.56	)%		(2.24	)%		3.00	%		(9.40	)%
Total Investment Return Based on Market(4)		3.24	%		(16.56	)%		(2.20	)%		3.05	%		(9.40	)%
Ratios/Supplemental Data
Net Assets, End of Period (000's omitted)	$	18,022		$	9,385		$	13,442		$	313,223		$	50,389
Ratio to Average Net Assets of:
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(5)		1.50	%		1.50	%		1.25	%		1.69	%		1.79	%
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(5)		8.15	%		3.33	%		2.27	%		3.06	%		3.16	%
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(5)		3.88	%		1.73	%		2.27	%		1.68	%		1.88	%
Net investment Income (Loss)(5)		(3.20	)%		(2.82	)%		2.90	%		(3.06	)%		(3.07	)%
Portfolio Turnover Rate(6)		365	%		751	%		135	%		756	%		635	%

* Commencement of operations.

(1) Formerly Mars Hill Global Relative Value ETF.

(2) Based on average shares outstanding.

(3) Less than $0.005.

(4) Net asset value total 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, 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, revinvestment of all dividends and distributions at market value during the period, and sale at the market value on the last day of the period.

(5) Ratios for periods of less than one year have been annualized.

(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.

See accompanying Notes to Financial Statements.

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Financial Highlights

 

	Cambria Global Tactical ETF						Dent Tactical ETF									Global Echo ETF			Madrona Domestic ETF
	Year ended June 30, 2012			For the period October 26, 2010* to June 30, 2011			Year ended June 30, 2012			Year ended June 30, 2011			For the period September 16, 2009* to June 30, 2010			For the period May 23, 2012* to June 30, 2012			Year ended June 30, 2012			For the period June 21, 2011* to June 30, 2011
Selected Data for a Share of Capital Stock Outstanding
Net Asset Value, Beginning of Period	$	25.92		$	25.10		$	20.50		$	18.81		$	20.00		$	50.00		$	26.07		$	25.00
Investment Operations
Net Investment Income (Loss)(2)		0.21			0.25			(0.17	)		(0.21	)		0.08			(0.02	)		0.10			—	(3)
Net Realized and Unrealized Gain (Loss) on Investments		(2.24	)		0.79			(2.52	)		1.93			(1.06	)		0.82			(0.79	)		1.07
Distributions of Net Realized Gains by other investment companies		—			—			—			—			—			—			—			—
Net Increase (Decrease) in Net Assets Resulting from Investment Operations		(2.03	)		1.04			(2.69	)		1.72			(0.98	)		0.80			(0.69	)		1.07
Distributions from Net Investment Income		—			(0.22	)		—			(0.03	)		(0.21	)		—			(0.07	)		—
Distributions from Realized Capital Gains		(0.20	)		—			—			—			—			—			—			—
Total Distributions		(0.20	)		(0.22	)		—			(0.03	)		(0.21	)		—			(0.07	)		—
Net Asset Value, End of Period	$	23.69		$	25.92		$	17.81		$	20.50		$	18.81		$	50.80		$	25.31		$	26.07
Market Value, End of Period	$	23.64		$	25.93		$	17.78		$	20.48		$	18.80		$	50.99		$	25.28		$	26.07
Total Return
Total Investment Return Based on Net Asset Value(4)		(7.84	)%		4.17	%		(13.12	)%		9.14	%		(4.95	)%		1.60	%		(2.65	)%		4.28	%
Total Investment Return Based on Market(4)		(8.07	)%		4.20	%		(13.18	)%		9.10	%		(4.92	)%		1.98	%		(2.76	)%		4.28	%
Ratios/Supplemental Data
Net Assets, End of Period (000's omitted)	$	78,171		$	178,837		$	6,679		$	17,013		$	21,820		$	5,080		$	15,188		$	2,607
Ratio to Average Net Assets of:
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(5)		0.99	%		1.02	%		1.50	%		1.49	%		1.50	%		1.50	%		1.25	%		1.25	%
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(5)		1.08	%		1.04	%		2.45	%		2.26	%		2.45	%		1.50	%		1.46	%		10.96	%
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(5)		1.08	%		1.04	%		2.45	%		2.26	%		2.45	%		1.50	%		1.46	%		10.96	%
Net investment Income (Loss)(5)		0.87	%		1.45	%		(0.90	)%		(1.05	)%		0.51	%		(0.32	)%		0.40	%		0.23	%
Portfolio Turnover Rate(6)		475	%		187	%		958	%		456	%		501	%		70	%		40	%		0	%

See accompanying Notes to Financial Statements.

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Financial Highlights

 

	Madrona Global Bond ETF						Madrona International ETF
	Year ended June 30, 2012			For the period June 21, 2011* to June 30, 2011			Year ended June 30, 2012			For the period June 21, 2011* to June 30, 2011
Selected Data for a Share of Capital Stock Outstanding
Net Asset Value, Beginning of Period	$	25.01		$	25.00		$	26.17		$	25.00
Investment Operations
Net Investment Income (Loss)(2)		0.71			0.01			0.32			0.01
Net Realized and Unrealized Gain (Loss) on Investments		0.67			—			(5.33	)		1.16
Distributions of Net Realized Gains by other investment companies		—			—			—			—
Net Increase (Decrease) in Net Assets Resulting from Investment Operations		1.38			0.01			(5.01	)		1.17
Distributions from Net Investment Income		(0.70	)		—			(0.08	)		—
Distributions from Realized Capital Gains		—			—			(0.02	)		—
Total Distributions		(0.70	)		—			(0.10	)		—
Net Asset Value, End of Period	$	25.69		$	25.01		$	21.06		$	26.17
Market Value, End of Period	$	25.68		$	25.02		$	21.11		$	26.18
Total Return
Total Investment Return Based on Net Asset Value(4)		5.59	%		0.04	%		(19.11	)%		4.68	%
Total Investment Return Based on Market(4)		5.49	%		0.08	%		(18.95	)%		4.72	%
Ratios/Supplemental Data
Net Assets, End of Period (000's omitted)	$	21,195		$	2,501		$	14,219		$	2,617
Ratio to Average Net Assets of:
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(5)		0.95	%		0.95	%		1.25	%		1.25	%
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(5)		0.99	%		11.08	%		1.54	%		10.99	%
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(5)		0.99	%		11.08	%		1.54	%		10.99	%
Net investment Income (Loss)(5)		2.81	%		1.68	%		1.48	%		1.14	%
Portfolio Turnover Rate(6)		12	%		0	%		110	%		19	%

See accompanying Notes to Financial Statements.

98

ADVISORSHARES TRUST
Financial Highlights

 

	Meidell Tactical Advantage ETF						Peritus High Yield ETF						Rockledge SectorSAM ETF			TrimTabs Float Shrink ETF			WCM/BNY Mellon Focused Growth ADR ETF
	Year ended June 30, 2012			For the period June 23, 2011* to June 30, 2011			Year ended June 30, 2012			For the period December 1, 2010* to June 30, 2011			For the period January 11, 2012* to June 30, 2012			For the period October 5, 2011* to June 30, 2012			Year ended June 30, 2012			For the period July 21, 2010* to June 30, 2011
Selected Data for a Share of Capital Stock Outstanding
Net Asset Value, Beginning of Period	$	25.06		$	25.00		$	51.59		$	50.00		$	25.54		$	26.20		$	31.46		$	25.00
Investment Operations
Net Investment Income (Loss)(2)		—	(3)		0.01			4.20			2.25			(0.24	)		0.07			0.07			0.15
Net Realized and Unrealized Gain (Loss) on Investments		0.08			0.05			(2.74	)		1.30			(0.08	)		6.90			(2.58	)		6.40
Distributions of Net Realized Gains by other investment companies		—			—			—	(3)		—			—			—			—			—
Net Increase (Decrease) in Net Assets Resulting from Investment Operations		0.08			0.06			1.46			3.55			(0.32	)		6.97			(2.51	)		6.55
Distributions from Net Investment Income		(0.02	)		—			(3.99	)		(1.96	)		—			(0.01	)		(0.11	)		(0.09	)
Distributions from Realized Capital Gains		—			—			(0.47	)		—			—			—			(0.12	)		—
Total Distributions		(0.02	)		—			(4.46	)		(1.96	)		—			(0.01	)		(0.23	)		(0.09	)
Net Asset Value, End of Period	$	25.12		$	25.06		$	48.59		$	51.59		$	25.22		$	33.16		$	28.72		$	31.46
Market Value, End of Period	$	25.48		$	25.07		$	48.64		$	51.87		$	25.23		$	33.24		$	28.70		$	31.58
Total Return
Total Investment Return Based on Net Asset Value(4)		0.31	%		0.24	%		3.27	%		7.16	%		(1.25	)%		26.62	%		(7.94	)%		26.21	%
Total Investment Return Based on Market(4)		1.71	%		0.28	%		2.75	%		7.73	%		(1.21	)%		26.93	%		(8.36	)%		26.69	%
Ratios/Supplemental Data
Net Assets, End of Period (000's omitted)	$	5,652		$	2,506		$	92,328		$	43,851		$	2,522		$	8,291		$	6,462		$	8,651
Ratio to Average Net Assets of:
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(5)		1.35	%		1.35	%		1.35	%		1.34	%		1.50	%		0.99	%		1.25	%		1.25	%
Expenses, prior to expense waivers and reimbursement, including interest and dividend expense		3.69	%		13.70	%		1.35	%		1.57	%		11.03	%		2.34	%		4.17	%		3.04	%
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(5)		3.69	%		13.70	%		1.35	%		1.57	%		9.43	%		2.34	%		4.17	%		3.04	%
Net investment Income (Loss)(5)		0.01	%		1.00	%		8.64	%		7.47	%		(1.97	)%		0.31	%		0.24	%		0.52	%
Portfolio Turnover Rate(6)		817	%		5	%		80	%		81	%		391	%		201	%		16	%		34	%

See accompanying Notes to Financial Statements.

99

ADVISORSHARES TRUST
Notes to Financial Statements

June 30, 2012

1. Organization

AdvisorShares Trust (the “Trust”) was organized as a Delaware statutory trust on July 30, 2007 and has authorized capital of unlimited shares. The Trust is an open-end management investment company, registered under the Investment Company Act of 1940, as amended (the “Act”). The Trust is comprised of 14 active funds (the “Funds” or “ETFs” and individually, the “Fund” or “ETF”):

Fund	Ticker		Commencement of Operations
Accuvest Global Long Short ETF (formerly Mars Hill Global Relative Value ETF)		AGLS		July 9, 2010
Accuvest Global Opportunities ETF		ACCU		January 25, 2012
Active Bear ETF		HDGE		January 27, 2011
Cambria Global Tactical ETF		GTAA		October 26, 2010
DENT Tactical ETF		DENT		September 16, 2009
Global Echo ETF		GIVE		May 23, 2012
Madrona Domestic ETF		FWDD		June 21, 2011
Madrona Global Bond ETF		FWDB		June 21, 2011
Madrona International ETF		FWDI		June 21, 2011
Meidell Tactical Advantage ETF		MATH		June 23, 2011
Peritus High Yield ETF		HYLD		December 1, 2010
Rockledge SectorSAM ETF		SSAM		January 11, 2012
TrimTabs Float Shrink ETF		TTFS		October 5, 2011
WCM/BNY Mellon Focused Growth ADR ETF		AADR		July 21, 2010

Effective December 1, 2011, the Mars Hill Global Relative Value ETF changed its name to Accuvest Global Long Short ETF. Additionally, as of December 1, 2011, Accuvest Global Advisors replaced Mars Hill Partners, LLC as sub-adviser to the Fund.

As of June 4, 2012, American Wealth Management replaced H.S. Dent Investment Management, LLC as sub-advisor to DENT Tactical ETF.

The DENT Tactical ETF seeks long term growth of capital by investing primarily in other exchange-traded funds (the “Underlying ETFs”).

Accuvest Global Long Short ETF seeks average annual returns in excess of the total return of the MSCI World Index by investing in both long and short positions in Underlying ETFs that offer diversified exposure to global regions. The Fund may also use derivatives tied to the broad market indices when establishing net long and net short exposure on top of the core long/short portfolio.

Cambria Global Tactical ETF seeks to preserve and grow capital by investing primarily in other Underlying ETFs that offer diversified exposure to global regions, countries, styles or sectors and exchange-traded products.

WCM/BNY Mellon Focused ADR ETF seeks long-term capital appreciation by investing primarily in other Underlying ETFs, American Depository Receipts (ADRs) included in the BNY Mellon Classic ADR Index, the Fund’s primary index, and swap contracts.

Peritus High Yield ETF seeks high current income by investing in a focused portfolio of high yield debt securities commonly referred to as “junk bonds”. The Fund does not have any portfolio maturity limitation and may invest in instruments with short-term, medium-term or long-term maturities.

Active Bear ETF seeks capital appreciation through short sales of domestically traded equity securities. The portfolio management team implements a bottom-up, fundamental, research driven security

100

ADVISORSHARES TRUST
Notes to Financial Statements

June 30, 2012

1. Organization - (continued)

selection process. In selecting short positions, the Fund seeks to identify securities with low earnings quality or aggressive accounting which may be intended on the part of company management to mask operational deterioration and bolster the reported earnings per share over a short time period. In addition, the portfolio management team seeks to identify earnings driven events that may act as a catalyst to the price decline of a security, such as downwards earnings revisions or reduced forward guidance.

Madrona Domestic ETF seeks to provide long-term capital appreciation above the capital appreciation of its benchmark, the S&P 500 Index by selecting a portfolio of up to 500 of the largest U.S. traded equity securities using a weighted allocation system based on consensus analyst estimates of the present value of future expected earnings relative to the share price of each security.

Madrona International ETF seeks to provide long-term capital appreciation above the capital appreciation of its international benchmarks, such as the MSCI EAFE Index, the Fund’s primary benchmark, and the BNY Mellon Classic ADR Index, the Fund’s secondary benchmark. The Fund seeks to achieve this objective by selecting a portfolio primarily composed of at least 250 of the largest American Depositary Receipts (ADRs) from among the largest issuers of Europe, Australasia and the Far East (EAFE) and Canada. It’s portfolio may also include ADRs that provide exposure to certain markets deemed to be emerging markets.

Madrona Global Bond ETF seeks investment results that exceed the price and yield performance of its benchmark, the Barclays Capital Aggregate Bond Index. FWDB is sub-advised by Madrona Funds, LLC (Portfolio Manager). The Portfolio Manager seeks to achieve this objective by selecting a diversified portfolio of fixed income exchange-traded products (ETPs), including but not limited to, exchange-traded notes (ETNs), exchange-traded currency trusts and exchange-traded commodity pools. FWDB invests in at least 12 distinct global bond classes that cover the entire global investable bond universe. The Portfolio Manager constructs FWDB’s portfolio using a weighted allocation system based on historic yield curve analysis and a mean reversion strategy.

Meidell Tactical Advantage ETF seeks to provide long-term capital appreciation and capital preservation. The Fund is considered a “fund-of-funds” that seeks to achieve this investment objective by managing a tactical strategy that has the ability to dynamically rebalance the Fund’s portfolio from as much as 100% equity assets to 100% fixed income assets or cash and cash equivalents depending on market trends. The Fund employs a long tactical strategy that seeks to minimize portfolio losses by rotating out of higher volatility assets and lower volatility assets depending on the Fund’s current view of risks in different asset classes.

TrimTabs Float Shrink ETF seeks to generate long-term returns in excess of the total return of the Russell 3000® Index, with less volatility than the Russell 3000® Index. The Fund is an actively managed exchange-traded fund that seeks to achieve its investment objective by primarily investing in the broad U.S. equity market, as represented by the Russell 3000® Index. The Fund seeks to achieve this goal by investing in stocks with liquidity and fundamental characteristics that are historically associated with superior long-term performance.

Rockledge SectorSAM ETF seeks to generate stable and consistent annual returns under all market conditions by investing primarily in both long and short positions in Underlying ETFs that offer diversified exposure to U.S. large capitalization sectors.

Accuvest Global Opportunities ETF seeks long-term capital appreciation in excess of global equity benchmarks such as the MSCI All Country World Index by investing primarily in Underlying ETFs that provide diversified exposure to select economies around the world.

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Notes to Financial Statements

June 30, 2012

1. Organization - (continued)

Global Echo ETF seeks long-term capital appreciation with an emphasis on absolute (positive) returns and low sensitivity to traditional financial market indices, such as the S&P 500 Index, over a full market cycle. The Fund is a multi-manager, multi-strategy, broadly diversified, actively managed ETF with a focus on sustainable investing.

2. Summary of Significant Accounting Policies

These financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

Investment Valuation

In computing each Fund’s NAV, the Fund’s securities holdings are valued based on their last readily available market price. Price information on listed securities, including Underlying ETFs, is taken from the exchange where the security is primarily traded. Securities regularly traded in an OTC market are valued at the latest quoted sales price on the primary exchange or national securities market on which such securities are traded. Securities not listed on an exchange or national securities market, or securities in which there was no last reported sales price, are valued at the most recent bid price. Other portfolio securities and assets for which market quotations are not readily available are valued based on fair value as determined in good faith by the Board of Trustees of the Trust.

Investment Transactions

Investment transactions are accounted for on the trade date. Realized gains and losses on sales of investment securities are calculated using the identified cost method. Dividend income and distributions to shareholders are recognized on the ex-dividend date and interest income and expenses are recognized on the accrual basis.Premiums and discounts are amortized over the life of the bond using the effective interest method.

Expenses

Expenses of the Trust, which are directly identifiable to a specific Fund, are applied to that Fund. Expenses which are not readily identifiable to a specific Fund are allocated in such a manner as deemed equitable, taking into consideration the nature and type of expense and the relative net assets of each Fund.

Equity Swaps

The DENT Tactical ETF, the Accuvest Global Long Short ETF and the Cambria Global Tactical ETF may invest in equity swaps to obtain exposure to the underlying referenced security, obtain leverage or enjoy the returns from ownership without actually owning equity. Equity swaps are two-party contracts that generally obligate one party to pay the positive return and the other party to pay the negative return on a specified reference security, basket of securities, security index or index component during the period of the swap. Equity swap contracts are marked to market daily based on the value of the underlying security and the change, if any, is recorded as an unrealized gain or loss. Equity swaps normally do not involve the delivery of securities or other underlying assets. Accordingly, the risk of loss with respect to equity swaps is normally limited to the net amount of payments that a Fund is contractually obligated to make. If the other party to an equity swap defaults, a Funds’ risk of loss consists of the net amount of payments that the Funds are contractually entitled to receive, if any. Equity swaps are derivatives and their value can be very volatile. To the extent that the Adviser or

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Notes to Financial Statements

June 30, 2012

2. Summary of Significant Accounting Policies - (continued)

Sub-Adviser, as applicable, do not accurately analyze and predict future market trends, the values of assets or economic factors, the Funds may suffer a loss, which may be substantial. The swap markets in which many types of swap transactions are traded have grown substantially in recent years, with a large number of banks and investment banking firms acting both as principals and as agents. As a result, the markets for certain types of swaps have become relatively liquid. Periodic payments received or paid by the Funds are recorded as realized gains or losses.

Short Sales

The Accuvest Global Long Short ETF, the Cambria Global Tactical ETF, the Active Bear ETF and the Rockledge SectorSAM ETF may sell securities it does not own as a hedge against some of its long positions and/or in anticipation of a decline in the market value of that security (short sale). When the Funds make a short sale, it must borrow the security sold short and deliver it to the broker-dealer through which it made the short sale. The Funds may have to pay a fee to borrow the particular security and may be obligated to remit any interest or dividends received on such borrowed securities. Dividends declared on short positions open are recorded on the ex-date as an expense. A gain, limited to the price at which the Funds sold the security short, or a loss, unlimited in magnitude, will be recognized upon the termination of a short sale if the market price at termination is less than or greater than, respectively, the proceeds originally received. The Funds are also subject to the risk that it may be unable to reacquire a security to terminate a short position except at a price substantially in excess of the last quoted price.

The Funds are required to pledge cash or securities to the broker as collateral for the securities sold short. Collateral requirements are calculated daily based on the current market value of the short positions. Cash deposited with broker for collateral for securities sold short is recorded as an asset on the Statement of Assets and Liabilities and securities segregated as collateral are denoted in the Schedule of Investments. The Funds may receive or pay the net of the following amounts: (i) a portion of the income from the investment of cash collateral; (ii) the broker’s fee on the borrowed securities; and (iii) a financing charge for the difference in the market value of the short position and cash collateral deposited with the broker. This income or fee is calculated daily based upon the market value of each borrowed security and a variable rate that is dependent on the availability of the security. The net amounts of income or fees paid by Accuvest Global Long Short ETF, Active Bear ETF and Rockledge SectorSAM ETF for the period ended June 30, 2012 are $141,845, $969,392 and $7,543, respectively, which are included as interest expense in the Statement of Operations.

Deposits with brokers and segregated cash for securities sold short represent cash balances on deposit with the Funds’ prime brokers and custodian. The Funds are subject to credit risk should the prime brokers be unable to meet its obligations to the Funds.

Futures Contracts

Certain of the Funds may invest in futures contracts (“futures”), may invest in futures in order to hedge its investments against fluctuations in value caused by changes in prevailing interest rates or market conditions. Such Funds may invest in futures as a primary investment strategy. Investments in futures may increase or leverage exposure to a particular market risk, thereby increasing price volatility of derivative instruments a Fund holds. No monies are paid or received by a Fund upon the purchase or sale of a futures contract. Initially, a Fund will be required to deposit with the broker an amount of cash or cash equivalents, known as initial margin, based on the value of the contract. Subsequent payments, called variation margin, to and from the broker, will be made on a daily basis as the price of the underlying instruments fluctuates, making the long and short positions in the futures contract more or less valuable, a process known as ‘marking-to-the-market.’ Once a final determination of variation margin is made, additional cash is required to be paid by or released to a Fund, and a Fund

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Notes to Financial Statements

June 30, 2012

2. Summary of Significant Accounting Policies - (continued)

will realize a loss or gain. The Funds may be subject to the risk that the change in the value of the futures contract may not correlate perfectly with the underlying index. Use of long futures contracts subjects the Funds to risk of loss in excess of the amounts shown on the Statements of Assets and Liabilities, up to the notional value of the futures contracts. Use of short futures contracts subjects the Funds to unlimited risk of loss. The Funds may enter into futures contracts only on exchanges or boards of trade. The exchange or board of trade acts as the counterparty to each futures contract; therefore, the Funds’ credit risk is limited to failure of the exchange or board of trade. Under some circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day’s settlement price, which could effectively prevent liquidation of unfavorable positions.

Options

Certain of the Funds are authorized to write and purchase put and call options. When a Fund writes an option, an amount equal to the premium received by the Fund is reflected as an asset and an equivalent liability. The amount of the liability is subsequently marked to market to reflect the current market value of the option written. When a security is purchased or sold through an exercise of an option, the related premium paid (or received) is added to (or deducted from) the basis of the security acquired or deducted from (or added to) the proceeds of the security sold. When an option expires (or the Fund enters into a closing transaction), the Fund realizes a gain or loss on the option to the extent of the premiums received or paid (or gain or loss to the extent the cost of the closing transaction exceeds the premium paid or received). The Fund, as writer of an option, bears the market risk of an unfavorable change in the price of the security underlying the written option. Written and purchased options are non-income producing investments.

Short-Term Investments

Each Fund may invest in high-quality short-term debt securities and money market instruments on an ongoing basis to maintain liquidity or pending selection of investments in accordance with its policies. These short-term debt securities and money market instruments include shares of other mutual funds, commercial paper, certificates of deposit, bankers’ acceptances, U.S. Government securities and repurchase agreements.

Money Market Investments

The Dent Tactical ETF invests a significant amount (28.2% as of June 30, 2012) in the Goldman Sachs Money Market Fund (“FSMXX”). FSMXX intends to invest in “Tier One” securities, including those issued or guaranteed by the U.S. Government, its agencies or instrumentalities, other high-quality U.S. money market securities, high-quality commercial paper and other short-term obligations of U.S. and foreign companies payable in U.S. dollars, and repurchase agreements relating to these securities.

Dividends and Distributions

Each Fund will generally pay out dividends to shareholders at least annually. Each Fund will distribute its net capital gains, if any, to shareholders annually. Income and capital gain distributions are determined in accordance with income tax regulations which may differ from U.S generally accepted accounting principles. Distributions are recorded on ex-dividend date.

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Notes to Financial Statements

June 30, 2012

2. Summary of Significant Accounting Policies - (continued)

Indemnifications

In the normal course of business, each Fund enters into contracts that contain a variety of representations which provide general indemnifications. The Trust’s maximum exposure under these arrangements cannot be known; however, the Trust expects any risk of loss to be remote.

3. Investment Advisory Agreement and Other Agreements

Investment Advisory Agreement

Each Fund has entered into an Investment Advisory Agreement with AdvisorShares Investments, LLC (the “Advisor”). The Advisor acts as the Fund’s investment adviser pursuant to an advisory agreement with the Trust on behalf of each Fund. Pursuant to the Advisory Agreement, the Advisor has overall supervisory responsibility for the general management and investment of each Fund’s securities portfolio, and has ultimate responsibility (subject to oversight by the Trust’s Board of Trustees) for oversight of the Trust’s sub-advisers. For its services, each Fund pays the Advisor an annual management fee and such fees do not include breakpoints. From time to time, the Advisor may waive all or a portion of its fee.

The Advisor’s annual management fee for each Fund is as follows:

Fund:	Rate:
DENT Tactical ETF		0.95%*
Accuvest Global Long Short ETF		1.35%*
Cambria Global Tactical ETF
$0 – $250,000,000		0.90%
$250,000,001 – $1,000,000,000		0.80%
$1,000,000,001 – $5,000,000,000		0.70%
$5,000,000,001 +		0.60%
WCM/BNY Mellon Focused Growth ADR ETF		0.75%*
Peritus High Yield ETF		1.10%*
Active Bear ETF		1.50%
Madrona Domestic ETF		0.80%**
Madrona International ETF		0.80%**
Madrona Global Bond ETF		0.50%**
Meidell Tactical Advantage ETF		1.20%***
TrimTabs Float Shrink ETF		0.99%
Rockledge SectorSAM ETF		1.25%*
Accuvest Global Opportunities ETF		0.95%
Global Echo ETF		1.10%

* Subject to minimum fee of $10,000 per month.

** Subject to minimum fee of $5,000 per month.

*** Subject to minimum fee of $5,000 per month for months 7 – 12 and $10,000 thereafter.

For the Global Echo Fund, as part of its agreement with the Trust, the Advisor has contractually agreed to pay all operating expenses of the Fund, including transfer agency, custody, fund administration, legal, audit and other services, except management fees, interest expense, taxes (expected to be de minimis), brokerage commissions and other expenses connected with the

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Notes to Financial Statements

June 30, 2012

3. Investment Advisory Agreement and Other Agreements - (continued)

execution of portfolio transactions, acquired fund fees and expenses, short dividend expenses, expenses of Independent Trustees (including any Trustees’ counsel fees), and extraordinary expenses.

Sub-Advisory Agreements

Each Fund’s investment sub-advisor provides investment advice and management services to the Fund. AdvisorShares supervises the day-to-day investment and reinvestment of the assets in the Fund and is responsible for monitoring the Fund’s adherence to its investment mandate. Pursuant to an investment sub-advisory agreement (“Investment Sub-Advisory Agreement”) between the sub-advisor and the Advisor, the sub-advisor receives an annual fee equal to the average daily net assets of the Fund.

American Wealth Management serves as investment sub-advisor to DENT Tactical ETF. They receive a sub-advisory fee at an annual fee equal to the average daily net assets of the Fund as follows:

AUM Schedule	Rate
$0 – $100,000,000		0.40	%
$100,000,001 – $250,000,000		0.45	%
$250,000,001 – $500,000,000		0.50	%
$500,000,001 – $1,000,000,000		0.55	%
$1,000,000,001 +		0.60	%

Accuvest Global Advisors serves as investment sub-advisor to Accuvest Global Long Short ETF. They receive a sub-advisory fee at an annual fee equal to the average daily net assets of the Fund as follows:

AUM Schedule	Rate
$0 – $100,000,000		0.90	%
$100,000,001 – $500,000,000		0.95	%
$500,000,001 +		1.00	%

Cambria Investment Management, Inc. serves as investment sub-advisor to Cambria Global Tactical ETF. They receive a sub-advisory fee at an annual fee equal to the average daily net assets of the Fund as follows:

AUM Schedule	Rate
$0 – $250,000,000		0.45	%
$250,000,001 – $1,000,000,000		0.40	%
$100,000,001 – $5,000,000,000		0.35	%
$5,000,000,001 +		0.30	%

WCM Investment Management serves as the investment sub-advisor to WCM/BNY Mellon Focused Growth ADR ETF. They receive a sub-advisory fee at an annual fee of 0.25% based on the average daily net assets.

Peritus I Asset Management, LLC serves as the investment sub-advisor to Peritus High Yield ETF. They receive a sub-advisory fee at an annual fee of 0.75% based on the average daily net assets.

Ranger Alternative Management LP, serves as investment sub-advisor to Active Bear ETF. They receive a sub-advisory fee at an annual fee of 1.00% based on the average daily net assets.

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Notes to Financial Statements

June 30, 2012

3. Investment Advisory Agreement and Other Agreements - (continued)

Madrona Funds LLC serves as investment sub-advisor to Madrona Domestic ETF, Madrona International ETF and Madrona Global Bond ETF. They receive a sub-advisor fee at an annual rate based on the average daily net assets.

Fund	Rate
Madrona Domestic ETF		0.40	%
Madrona International ETF		0.40	%
Madrona Global Bond ETF		0.25	%

American Wealth Management serves as investment sub-advisor to Meidell Tactical Advantage ETF. They receive a sub-advisory fee at an annual fee of 0.70% based on the average daily net assets.

TrimTabs Asset Management, LLC serves as investment sub-advisor to TrimTabs Float Shrink ETF. They receive a sub-advisory fee at an annual fee of 0.64% based on the average daily net assets. From time to time, each sub-adviser may waive all or a portion of its fee.

Rockledge Advisors LLC serves as investment sub-advisor to Rockledge SectorSAM ETF. They receive a sub-advisory fee at an annual fee of 0.75% based on the average daily net assets.

Accuvest Global Advisors LLC serves as investment sub-advisor to Accuvest Global Opportunities ETF. They receive a sub-advisory fee at an annual fee of 0.50% based on the average daily net assets.

Baldwin Brothers, Inc., Community Capital Management, Inc., First Affirmative Financial Network, LLC and Reynders, McVeigh Capital Management, LLC serve as investment sub-advisors to Global Echo ETF. They receive a sub-advisory fee at an annual fee of 0.25% based on the average daily net assets.

Expense Limitation Agreement

The Advisor has contractually agreed to reduce their fees and reimburse expenses in order to keep net expenses (excluding interest, taxes, brokerage commissions, acquired fund fees and expenses, and extraordinary expenses) from exceeding a specified for each Fund’s average daily net assets. The expense limitation agreement will be terminated upon termination of the investment advisory agreement between the Advisor and the Fund. The investment advisory agreement may only be terminated with the approval of the Fund’s Board. The expense caps in effect for each Fund during the period ended June 30, 2012 were as follows:

Fund:	Rate:
DENT Tactical ETF		1.50	%
Accuvest Global Long Short ETF		1.50	%
Cambria Global Tactical ETF		0.99	%
WCM/BNY Mellon Focused Growth ADR ETF		1.25	%
Peritus High Yield ETF		1.35	%
Active Bear ETF		1.85	%
Madrona Domestic ETF		1.25	%
Madrona International ETF		1.25	%
Madrona Global Bond ETF		0.95	%
Meidell Tactical Advantage ETF		1.35	%
TrimTabs Float Shrink ETF		0.99	%
Rockledge SectorSAM ETF		1.50	%
Accuvest Global Opportunities ETF		1.25	%
Global Echo ETF		—

For the period ended June 30, 2012, the Advisor waived fees and reimbursed expenses for each Fund as follows. Each Fund may recoup such waivers until the date indicated.

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June 30, 2012

3. Investment Advisory Agreement and Other Agreements - (continued)

Fund:	Expenses Reimbursed:		Recoupment Amount:		Recoupment Expiration:
Accuvest Global Long Short ETF	$	66,702	$	66,702		6/30/2014
		204,653		204,653		6/30/2015
Total Accuvest Global Long Short ETF		271,355		271,355
Accuvest Global Opportunities ETF		45,384		45,384		6/30/2015
Total Accuvest Global Opportunities ETF		45,384		45,384
Active Bear ETF		15,251		—		6/30/2014
Total Active Bear ETF		15,251		—
Cambria Global Tactical ETF		9,250		8,884		6/30/2014
		129,383		129,383		6/30/2015
Total Cambria Global Tactical ETF		138,633		138,267
Dent Tactical ETF		176,554		176,554		6/30/2013
		164,643		164,643		6/30/2014
		110,076		110,076		6/30/2015
Total Dent Tactical ETF		451,273		451,273
Madrona Domestic ETF		6,733		6,733		6/30/2014
		30,175		30,175		6/30/2015
Total Madrona Domestic ETF		36,908		36,908
Madrona Global Bond ETF		6,948		6,948		6/30/2014
		5,992		5,992		6/30/2015
Total Madrona Global Bond ETF		12,940		12,940
Madrona International ETF		6,735		6,735		6/30/2014
		36,187		36,187		6/30/2015
Total Madrona International ETF		42,922		42,922
Meidell Tactical Advantage ETF		6,772		6,772		6/30/2014
		79,573		79,573		6/30/2015
Total Meidell Tactical Advantage ETF		86,345		86,345
Peritus High Yield ETF		33,512		30,732		6/30/2014
Total Peritus High Yield ETF		33,512		30,732
Rockledge SectorSAM ETF		93,860		93,860		6/30/2015
Total Rockledge SectorSAM ETF		93,860		93,860
Trimtabs Float Shrink ETF		66,768		66,768		6/30/2015
Total Trimtabs Float Shrink ETF		66,768		66,768
WCM/BNY Mellon Focused Growth ADR ETF		118,635		118,635		6/30/2014
		214,032		214,032		6/30/2015
Total WCM/BNY Mellon Focused Growth ADR ETF		332,667		332,667

As part of its agreement with the Trust, the Advisor has contractually agreed to pay all operating expenses of the Global Echo Fund. There are no expenses reimbursed or recouped for that Fund.

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June 30, 2012

3. Investment Advisory Agreement and Other Agreements - (continued)

Administrator, Custodian, Fund Accountant and Transfer Agent

The Bank of New York Mellon (“BNYM”) (in each capacity, the “Administrator”, “Custodian”, “Fund Accountant” or “Transfer Agent”), serves as the Fund’s Administrator, Custodian, Fund Accountant and Transfer Agent pursuant to a certain Fund Administration and Accounting Agreement, a Custody Agreement or a Transfer Agency and Service Agreement, as the case may be.

Distribution and Service (12b-1) Plan

Foreside Fund Services, LLC (the “Distributor”) serves as the Fund’s distributor of Creation Units for the Fund pursuant to the distribution agreement. The Distributor does not maintain any secondary market shares.

The Funds have adopted a Distribution and Service Plan (“Plan”) pursuant to Rule 12b-1 under the 1940 Act. In accordance with its Plan, each Fund is authorized to pay an amount up to 0.25% of its average daily net assets each year for certain distribution-related activities. No fees are currently paid by each Fund under a Plan, and there are no current plans to impose these fees. However, in the event Rule 12b-1 fees were charged, over time they would increase the cost of an investment in each Fund.

4. Creation and Redemption Transactions

The Funds issue and redeem shares on a continuous basis at NAV in groups of 25,000 shares, at minimum, called “Creation Units.” Except when aggregated in Creation Units, shares are not redeemable securities of a Fund.

Only “Authorized Participants” may purchase or redeem shares directly from each Fund. An Authorized Participant is either (i) a broker-dealer or other participant in the clearing process through the Continuous Net Settlement System of the National Securities Clearing Corporation or (ii) a DTC participant and, in each case, must have executed a Participant Agreement with the Distributor. Most retail investors will not qualify as Authorized Participants or have the resources to buy and sell whole Creation Units. Therefore, they will be unable to purchase or redeem the shares directly from the Fund. Rather, most retail investors will purchase shares in the secondary market with the assistance of a broker and will be subject to customary brokerage commissions or fees.

5. Summary of Fair Value Disclosure

The Financial Accounting Standard Board’s (“FASB”) Accounting Standards Codification (“ASC”) 820-10, Fair Value Measurements and Disclosures, defines fair value, establishes an authoritative framework for measuring fair value in accordance with generally accepted accounting principles, and expands disclosure about fair value measurements. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below:

Level 1 —  unadjusted quoted prices in active markets for identical assets or liabilities that the company has the ability to access.

Level 2 —  Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates, and similar data.

Level 3 —  Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the company’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.

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June 30, 2012

5. Summary of Fair Value Disclosure - (continued)

Investments that use Level 2 or Level 3 inputs may include, but are not limited to: (i) an unlisted security related to corporate actions; (ii) a restricted security (e.g., one that may not be publicly sold without registration under the Securities Act of 1933 as amended); (iii) a security whose trading has been suspended or which has been de-listed from its primary trading exchange; (iv) a security that is thinly traded; (v) a security in default or bankruptcy proceedings for which there is no current market quotation; (vi) a security affected by currency controls or restrictions; and (vii) a security affected by a significant event (e.g. an event that occurs after the close of the markets on which the security is traded but before the time as of which a Fund’s net asset value is computed and that may materially affect the value of the Fund’s investment). Examples of events that may be “significant events” are government actions, natural disasters, armed conflicts and acts of terrorism.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of June 30, 2012 in valuing the Funds’ assets carried at fair value:

Assets	Accuvest Global Long Short ETF			Accuvest Global Opportunities		Active Bear ETF			Cambria Global Tactical ETF		Dent Tactical ETF		Global Echo ETF		Madrona Domestic ETF
Level 1
Exchange Traded Funds	$	17,571,522		$	13,182,258	$	—		$	70,005,834	$	1,979,105	$	494,409	$	—
Common Stocks		—			—		—			—		—		2,313,736		15,095,801
Money Market Fund		6,620			279,261		183,818,915			8,250,175		1,882,099		1,339,259		98,432
Level 2
Corporate Bonds		—			—		—			—		—		—		—
Foreign Bonds		—			—		—			—		—		—		—
Municipal Bonds		—			—		—			—		—		261,734		—
Government Bonds		—			—		—			—		—		793,495		—
Level 3		—			—		—			—		—		—		—
Liabilities
Level 1
Exchange Traded Funds		(10,713,565	)		—		—			—		—		—		—
Common Stocks					—		(301,334,083	)		—		—		—		—
Level 2		—			—		—			—		—		—		—
Level 3		—			—		—			—		—		—		—
Total	$	6,864,577		$	13,461,519	$	(117,515,168	)	$	78,256,009	$	3,861,204	$	5,202,633	$	15,194,233

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June 30, 2012

5. Summary of Fair Value Disclosure - (continued)

Assets	Madrona Global Bond ETF		Madrona International ETF		Meidell Tactical Advantage ETF		Peritus High Yield ETF		Rockledge SectorSAM			TrimTabs Float Shrink ETF		WCM/BNY Mellon Focused Growth ADR ETF
Level 1
Exchange Traded Funds	$	20,958,788	$	—	$	2,792,634	$	—	$	2,616,646		$	—	$	—
Common Stocks		—		13,828,655		—		—		—			8,263,232		5,953,710
Money Market Fund		304,252		349,329		188,312		792,229		—			—		521,354
Level 2
Corporate Bonds		—		—		—		79,339,226		—			—		—
Foreign Bonds		—		—		—		10,123,463		—			—		—
Municipal Bonds		—		—		—		—		—			—		—
Government Bonds		—		—		—		—		—			—		—
Level 3		—		—		—		—		—			—		—
Liabilities
Level 1
Exchange Traded Funds		—		—		—		—		(2,642,226	)
Common Stocks		—		—		—		—		—			—		—
Level 2		—		—		—		—		—			—		—
Level 3		—		—		—		—		—			—		—
Total	$	21,263,040	$	14,177,984	$	2,980,946	$	90,254,918	$	(25,580	)	$	8,263,232	$	6,475,064

The Funds did not hold any Level 3 securities during the period reported.

The Funds’ policy is to disclose transfers between Levels based on valuations at the beginning of the reporting period. At June 30, 2012, there were no transfers between Level 1, 2, or 3, based on the valuation input Levels assigned to securities on June 30, 2011.

6. VALUATION OF DERIVATIVE INSTRUMENTS

The Funds have adopted authoritative standards of accounting for derivative instruments which establish disclosure requirement for derivative instruments. These standards improve financial reporting for derivative instruments by requiring enhanced disclosures that enables investors to understand how and why a fund uses derivatives instruments, how derivatives instruments are accounted for and how derivative instruments affect a fund’s financial position and results of operations.

The Funds use derivative instruments as part of their principal investment strategy to achieve their investment objective.

At June 30, 2012, there were no open derivative instruments.

111

ADVISORSHARES TRUST
Notes to Financial Statements

June 30, 2012

6. VALUATION OF DERIVATIVE INSTRUMENTS - (continued)

Transactions in derivative instruments during the period ended June 30, 2012, were as follows:

Statement of Operations

Fund:	Realized Gain (Loss):		Equity Risk
Accuvest Global Long Short ETF		Futures Contracts	$	(249,614	)
Accuvest Global Long Short ETF		Swaps Contracts		61,025
			$	(188,589	)

	Unrealized Loss:
Accuvest Global Long Short ETF		Swaps Contracts	$	540,381

7. Federal Income Tax

The Funds intend to qualify as a “regulated investment company” under Sub-chapter M of the Internal Revenue Code of 1986, as amended. If so qualified, the Funds will not be subject to Federal income tax to the extent it distributes substantially all of its net investment income and net capital gains to its shareholders.

Accounting for Uncertainty in Income Taxes provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements, and requires the evaluation of tax positions taken or expected to be taken in the course of preparing a Fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-than-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Interest and penalty related to income taxes would be recorded as income tax expense.

Management of the Funds is required to analyze all open tax years (2010 – 2012), as defined by IRS statute of limitations, for all major jurisdictions, including federal tax authorities and certain state tax authorities. As of June 30, 2012, the Funds did not have a liability for any unrecognized tax benefits. The Funds have no examination in progress and is not aware of any tax positions for which it is reasonably possible that the amounts of unrecognized tax benefits will significantly change in the next twelve months.

112

ADVISORSHARES TRUST
Notes to Financial Statements

June 30, 2012

7. Federal Income Tax - (continued)

At June 30, 2012, the cost of investments, including short positions, and net unrealized appreciation (depreciation) for federal income tax purposes was as follows:

Fund	Cost			Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
Accuvest Global Long Short ETF	$	6,496,292		$	945,915	$	(577,630	)	$	368,285
Accuvest Global Opportunities ETF		13,436,007			312,998		(287,486	)		25,512
Active Bear ETF		(116,854,148	)		16,108,568		(16,769,588	)		(661,020	)
Cambria Global Tactical ETF		76,871,624			1,672,766		(288,381	)		1,384,385
Dent Tactical ETF		3,837,560			23,972		(328	)		23,644
Global Echo ETF		5,173,883			98,936		(70,186	)		28,750
Madrona Domestic ETF		15,213,288			1,298,830		(1,317,885	)		(19,055	)
Madrona Global Bond ETF		20,913,985			562,388		(213,333	)		349,055
Madrona International ETF		15,465,487			427,622		(1,715,125	)		(1,287,503	)
Meidell Tactical Advantage ETF		3,010,795			622		(30,471	)		(29,849	)
Peritus High Yield ETF		93,279,595			1,132,007		(4,156,684	)		(3,024,677	)
Rocklege SectorSAM ETF		46,433			43,506		(115,519	)		(72,013	)
Trim Tabs Float Shrink ETF		7,995,611			321,429		(53,808	)		267,621
WCM/BNY Mellon Focused Growth ADR ETF		6,664,056			475,215		(664,207	)		(188,992	)

At June 30, 2012, the components of distributable earnings/loss on a tax-basis were as follows:

Fund	Undistributed Net Investment Income		Accumulated Capital and Other Gains/(Losses)			Timing Difference			Net Unrealized Appreciation (Deprection)			Total Earnings (Losses)
Accuvest Global Long Short ETF	$	—	$	(5,001,627	)	$	(194,819	)	$	368,285		$	(4,828,161	)
Accuvest Global Opportunities ETF		128,764		(1,028,744	)		—			25,512			(874,468	)
Active Bear ETF		—		(4,862,699	)		(2,880,389	)		(661,020	)		(8,404,108	)
Cambria Global Tactical ETF		349,617		(19,987,508	)		—			1,384,385			(18,253,506	)
Dent Tactical ETF		—		(1,572,126	)		(22,494	)		23,644			(1,570,976	)
Global Echo ETF		23,426		—			—			28,750			52,176
Madrona Domestic ETF		17,812		(1,001,733	)		—			(19,055	)		(1,002,976	)
Madrona Global Bond ETF		5,036		3,109			—			349,055			357,200
Madrona International ETF		143,764		(1,922,469	)		—			(1,287,503	)		(3,066,208	)
Meidell Tactical Advantage ETF		407		(310,583	)		—			(29,849	)		(340,025	)
Peritus High Yield ETF		221,026		(35,700	)		—			(3,024,677	)		(2,839,351	)
Rocklege SectorSAM ETF		18,966		—			(13,425	)		(72,013	)		(66,472	)
Trim Tabs Float Shrink ETF		52,498		—			—			267,621			320,119
WCM/BNY Mellon Focused Growth ADR ETF		12,232		(162,335	)		—			(188,992	)		(339,095	)

The differences between book and tax basis components of net assets are primarily attributable to wash sale loss deferrals and other book and tax differences.

113

ADVISORSHARES TRUST
Notes to Financial Statements

June 30, 2012

7. Federal Income Tax - (continued)

At June 30, 2012, the effect of permanent book/tax reclassifications resulted in increases/(decreases) to the components of net assets as follows:

Fund	Undistributed Net Investment Income			Accumulated Net Realized Gains/(Losses)			Paid-In Capital
Accuvest Global Long Short ETF	$	80,436		$	125,479		$	(205,915	)
Accuvest Global Opportunities ETF		—			—			—
Active Bear ETF		1,564,211			(1,532,064	)		(32,147	)
Cambria Global Tactical ETF		(109,333	)		(1,689,118	)		1,798,451
Dent Tactical ETF		97,140			10,742			(107,882	)
Global Echo ETF		5,492			51,008			(56,500	)
Madrona Domestic ETF		(2,298	)		(278,320	)		280,618
Madrona Global Bond ETF		1,029			(44,785	)		43,756
Madrona International ETF		491			603			(1,094	)
Meidell Tactical Advantage ETF		—			(204,813	)		204,813
Peritus High Yield ETF		24,794			(403,822	)		379,028
Rocklege SectorSAM ETF		9,845			(63,247	)		53,402
Trim Tabs Float Shrink ETF		(369	)		(975,556	)		975,925
WCM/BNY Mellon Focused Growth ADR ETF		5,547			(532,644	)		527,097

For financial reporting purposes, capital accounts are adjusted to reflect the tax character of permanent book/tax differences. Reclassifications are primarily due to the tax treatment of net operating losses and distribution reclassifications.

The tax character of distributions paid during the periods ended June 30, 2012 and 2011 were:

Fund	2012 Ordinary Income		2011 Ordinary Income
Accuvest Global Long Short ETF	$	46,188	$	—
Cambria Global Tactical ETF		1,214,084		577,538
Dent Tactical ETF		—		32,743
Madrona Domestic ETF		39,582		—
Madrona Global Bond ETF		441,742		—
Madrona International ETF		57,112		—
Meidell Tactical Advantage ETF		1,366		—
Peritus High Yield ETF		6,319,917		1,009,110
Trim Tabs Float Shrink ETF		2,501		—
WCM/BNY Mellon Focused Growth ADR ETF		52,639		24,332

114

ADVISORSHARES TRUST
Notes to Financial Statements

June 30, 2012

7. Federal Income Tax - (continued)

Under current tax regulations, capital losses on securities transactions realized after October 31 (“Post-October Losses”) may be deferred and treated as occurring on the first business day of the following fiscal Under the recently enacted Regulated Investment Company Modernization Act of 2010, the Funds will be permitted to defer taxable ordinary income losses incurred after December 31 and treat as occurring on the first business day of the following fiscal year. Post-October losses and ordinary income losses deferred to July 1, 2012 are as follows:

Fund	Ordinary		Short-Term Post-Effective		Long-Term Post-Effective
Accuvest Global Long Short ETF	$	194,819	$	556,545	$	170,121
Accuvest Global Opportunities ETF		—		1,028,744		—
Active Bear ETF		2,880,389		4,862,699		—
Cambria Global Tactical ETF		—		4,579,851		—
Dent Tactical ETF		22,494		1,270,063		3,253
Madrona Domestic ETF		—		434,347		148
Madrona International ETF		—		756,413		—
Meidell Tactical Advantage ETF		—		258,312		—
Rocklege SectorSAM ETF		13,425		—		—
WCM/BNY Mellon Focused Growth ADR ETF		—		—		162,335

The following Funds have capital loss carryforwards available to offset future realized gains of:

Fund	Short-Term Post-Effective No Expiration		Long-Term Post-Effective No Expiration		Total
Accuvest Global Long Short ETF	$	4,013,423	$	261,538	$	4,274,961
Cambria Global Tactical ETF		15,407,657		—		15,407,657
Dent Tactical ETF		104,238		—		104,238
Madrona Domestic ETF		567,238		—		567,238
Madrona International ETF		1,166,056		—		1,166,056
Meidell Tactical Advantage ETF		52,271		—		52,271
Peritus High Yield ETF		—		35,700		35,700

The Funds used capital loss carryforwads as follows to offset taxable capital gains realized during the year ended June 30, 2012:

Fund	Capital Loss Carryforwards Used
Active Bear ETF	$	2,879,509

Under the recently enacted Regulated Investment Company Modernization Act of 2010, the Funds will be permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years. As a result of this ordering rule, pre-enactment capital loss carry forwards may have an increased likelihood to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law. The carry forward capital losses noted above are all post-enactment capital loss carry forwards.

115

ADVISORSHARES TRUST
Notes to Financial Statements

June 30, 2012

8. Investment Transactions

Purchases and sales of investments for the period ended June 30, 2012 are as follows:

Fund	Purchases		Sales		Purchases In-Kind		Sales In-Kind
Accuvest Global Long Short ETF	$	34,429,127	$	32,583,092	$	17,124,372	$	9,625,628
Accuvest Global Opportunities		12,170,933		12,143,867		14,158,424		—
Active Bear ETF		1,295,489,426		1,038,886,101		—		—
Cambria Global Tactical ETF		597,212,955		596,542,386		9,027,617		88,279,051
Dent Tactical ETF		64,817,541		62,477,303		418,818		5,935,832
Global Echo ETF		5,602,414		7,238,036		15,061,776		9,495,955
Madrona Domestic ETF		7,115,585		5,564,251		14,746,328		2,954,808
Madrona Global Bond ETF		1,778,317		1,928,658		19,439,129		1,228,070
Madrona International ETF		13,100,100		13,120,093		16,181,964		1,612,328
Meidell Tactical Advantage ETF		23,205,196		25,615,396		7,692,921		4,502,945
Peritus High Yield ETF		111,455,933		51,378,604		—		7,626,190
Rockledge SectorSAM ETF		8,156,899		8,272,016		5,082,132		2,531,135
Trimtabs Float Shrink ETF		12,716,524		20,470,946		34,148,240		19,246,467
WCM/BNY Mellon Focused Growth ADR ETF		1,086,798		1,418,683		4,206,361		5,500,859

9. Risks Involved with Investing in the Funds

The Funds are subject to the principal risks described below, some or all of these risks may adversely affect the Funds’ NAV, trading price, yield, total return and ability to meet its investment objective. As with any investment, an investment in each Fund could result in a loss or the performance of each Fund could be inferior to that of other investments.

Fund of Funds Risk

Some of the Funds’ investment performance, because they are fund of funds, depends on the investment performance of the Underlying ETFs in which they invest. An investment in these Funds are subject to the risk associated with the Underlying ETFs that comprise their Underlying Index. The Funds will indirectly pay a proportional share of the asset-based fees, if any, of the Underlying ETFs in which they invest.

Liquidity Risk

In certain circumstances, it may be difficult for the Fund to purchase and sell particular investments within a reasonable time at a fair price. To the extent that there is not an established retail market for instruments in which the Fund may invest, trading in such instruments may be relatively inactive. Trading in shares may be halted because of market conditions or for reasons that, in the view of the Exchange, make trading in shares inadvisable. In addition, trading in shares is subject to trading halts caused by extraordinary market volatility pursuant to “circuit breaker” rules. There can be no assurance that the requirements necessary to maintain the listing of the shares of the Fund will continue to be met or will remain unchanged.

Market Risk

Investments in securities, in general, are subject to market risks that may cause their prices to fluctuate over time. The Fund’s investments may decline in value due to factors affecting securities markets generally, or particular countries, segments, economic sectors, industries or companies within those markets. The value of a security held in a short position may increase due to general economic and market conditions which are not specifically related to a particular issuer, such as real or perceived

116

ADVISORSHARES TRUST
Notes to Financial Statements

June 30, 2012

9. Risks Involved with Investing in the Funds - (continued)

positive economic conditions or changes in interest or currency rates. Because the market value of ETF shares may differ from their net asset value, the shares may trade at a premium or discount. An investment in the Fund may lose money.

New Fund Risk

Some of the Funds are new funds. As new funds, there can be no assurance that the Funds will grow to or maintain an economically viable size, in which case the Funds may experience greater tracking error to their Underlying Index than it otherwise would be at higher asset levels or it could ultimately liquidate.

10. New Accounting Pronouncements

In May 2011, the FASB issued ASU No. 2011-04 “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements” in GAAP and the International Financial Reporting Standards (“IFRSs”). ASU No. 2011-04 amends FASB ASC Topic 820, Fair Value Measurements and Disclosures, to establish common requirements for measuring fair value and disclosing information about fair value measurements in accordance with GAAP and IFRSs. ASU No. 2011-04 is effective for fiscal years beginning after December 15, 2011 and for interim periods within those fiscal years. Management is currently evaluating the impact these amendments may have on the Fund’s financial statements.

In December 2011, the FASB issued Accounting Standards Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities (“ASU 2011-11”). ASU 2011-11 requires disclosures to make financial statements that are prepared under GAAP more comparable to those prepared under International Financial Reporting Standards. The new disclosure requirements mandate that entities disclose both gross and net information about instruments and transactions eligible for offset in the statement of assets and liabilities as well as instruments and transactions subject to an agreement similar to a master netting arrangement. In addition, ASU 2011-11 requires disclosure of collateral received and posted in connection with master netting agreements or similar arrangements. New disclosures are required for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. Management is evaluating the impact of ASU 2011-11 on the financial statements and disclosures.

11. Liquidation

In July 2012, at the recommendation of the Advisor, the Trust’s Board of Trustees (the “Board”) approved the closing and subsequent liquidation of the Dent Tactical ETF (the “Fund”) pursuant to the terms of a Plan of Liquidation. Accordingly, the Fund is expected to cease operations, liquidate its assets, and distribute the liquidation proceeds to shareholders of record on or after August 15, 2012, (the “Liquidation Date”).

On or promptly after the Liquidate Date, the Fund will distribute a liquidating cash distribution equal to the net asset value of the shareholder’s Fund shares as of the close of the Liquidation Date. The liquidating cash distribution to shareholders will be treated as payment in exchange for their shares. The liquidation of Fund shares may be treated as a taxable event. Shareholders should contact their tax adviser to discuss the income tax consequences of the liquidation.

117

ADVISORSHARES TRUST
Notes to Financial Statements

June 30, 2012

12. Subsequent Events

The Funds have adopted authoritative standards of accounting for disclosure of events that occur after the Statements of Asset and Liabilities date but before financial statements are issued or are available to be issued. These standards require the Fund to recognize in the financial statements the effects of all recognized subsequent events that provide additional evidence about conditions that existed at the date of Statement.

13. Unaudited Tax Information

Qualified Dividend Income — Certain dividends paid by the Funds may be subject to a minimum tax rate of 15%, as provided by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The percentage of ordinary income distributions for the period ended June 30, 2012, taxed at a maximum rate of 15% were:

Fund	Percentage
Cambria Global Tactical ETF		59.84	%
Madrona Domestic ETF		100.00	%
Madrona Global Bond ETF		10.56	%
Madrona International ETF		74.72	%
Trim Tabs Float Shrink ETF		61.87	%
WCM/BNY Mellon Focused Growth ADR ETF		76.50	%

Dividends Received Deduction — For corporate shareholders, the percentage of ordinary income distributions for the period ended June 30, 2012 that qualifies for the dividends received deduction were:

Fund	Percentage
Cambria Global Tactical ETF		53.99	%
Madrona Domestic ETF		100.00	%
Madrona Global Bond ETF		4.74	%
Madrona International ETF		1.63	%
Trim Tabs Float Shrink ETF		72.14	%
WCM/BNY Mellon Focused Growth ADR ETF		8.40	%

Qualified Interest Income — For NRA shareholders, the percentage of ordinary income distributions for the period ended June 30, 2012 that qualifies as qualified interest income were:

Fund	Percentage
Madrona Global Bond ETF		59.45	%
Peritus High Yield ETF		92.13	%

The following Funds intend to elect to pass through to shareholders the credit for taxes paid to foreign countries. The gross foreign source income and foreign taxes paid are as follows:

Fund	Gross Foreign Income		Foreign Taxes Paid
Accuvest Global Opportunities ETF	$	130,100	$	11,934
Cambria Global Tactical ETF		31,625		3,720
Madrona International ETF		381,993		40,103
WCM/BNY Mellon Focused Growth ADR ETF		122,139		17,037

118

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Trustees and Shareholders
AdvisorShares Trust

We have audited the accompanying statements of assets and liabilities of Accuvest Global Long Short ETF (formerly known as Mars Hill Global Relative Value ETF), Accuvest Global Opportunities ETF, Active Bear ETF, Cambria Global Tactical ETF, Dent Tactical ETF, Global Echo ETF, Madrona Domestic ETF, Madrona Global Bond ETF, Madrona International ETF, Meidell Tactical Advantage ETF, Peritus High Yield ETF, Rockledge SectorSAM ETF, TrimTabs Float Shrink ETF and WCM/BNY Mellon Focused Growth ADR ETF, each a series of AdvisorShares Trust (the “Trust”), including the schedules of investments as of June 30, 2012, and the related statements of operations, the statements of changes in net assets and the financial highlights for the periods indicated thereon. These financial statements and financial highlights are the responsibility of the Trust’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust’s internal controls over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of June 30, 2012, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Accuvest Global Long Short ETF (formerly known as Mars Hill Global Relative Value ETF), Accuvest Global Opportunities ETF, Active Bear ETF, Cambria Global Tactical ETF, Dent Tactical ETF, Global Echo ETF, Madrona Domestic ETF, Madrona Global Bond ETF, Madrona International ETF, Meidell Tactical Advantage ETF, Peritus High Yield ETF, Rockledge SectorSAM ETF, TrimTabs Float Shrink ETF and WCM/BNY Mellon Focused Growth ADR ETF, as of June 30, 2012, and the results of their operations, the changes in their net assets and their financial highlights for the periods indicated thereon, in conformity with accounting principles generally accepted in the United States of America.

TAIT, WELLER & BAKER LLP

Philadelphia, Pennsylvania
August 28, 2012

119

ADVISORSHARES TRUST
Board of Trustees and Officers (Unaudited)

 

The business of the Trust is managed under the direction of the Trust’s Board of Trustees. The Board elects the officers of the Trust who are responsible for administering the Trust’s day-to-day operations. Each Trustee serves until his or her successor is duly elected or appointed and qualified.

The name, age, address and principal occupations during the past five years for each Trustee and officer of the Trust is set forth below, along with the other public directorships held by the Trustees.

Name, Address and Date of Birth of Trustee/Officer	Position(s) Held with the Trust, Term of Office and Length of Time Served	Principal Occupation(s) During Past 5 Years	Number of Portfolios in Fund Complex Overseen by Trustee/ Officer	Other Directorships Held by Trustee
Interested Trustee
Noah Hamman* 2 Bethesda Metro Center, Suite 1330, Bethesda, MD 20814 (1968)	Trustee, No set term; served since 2009	CEO and Founder of AdvisorShares Investments, LLC – Investment Advisory Services (2006 – present); President and CEO of Arrow Investment Advisors, LLC (2006 – 2008); Vice-President – Business Development of Rydex Investments (2001 – 2006).	18	None
Independent Trustees
Elizabeth (“Betsy”) Piper/Bach 2 Bethesda Metro Center, Suite 1330, Bethesda, MD 20814 (1952)	Trustee, No set term; served since 2009	Vice President / COO of NADA Retirement Administrators, Inc. (2009 – present); President of Cardinal Trust and Investments; CIO for Wilson/Bennett Capital Management (2006); Senior Vice President and Chief Trust Officer at FBR National Trust Co., (2001 – 2006).	18	None
William G. McVay 2 Bethesda Metro Center, Suite 1330, Bethesda, MD 20814 (1954)	Trustee, No set term; served since 2011	Founder of RDK Strategies, LLC (2007 –present); Vice-President of Zephyr Associates, Inc. (2001 – 2006); Executive Vice-President of Financeware, Inc. (2000); First Vice-President of Legg Mason Wood Walker, Inc. (1989 – 2000).	18	None
Officers of AdvisorShares Trust
Noah Hamman 2 Bethesda Metro Center, Suite 1330, Bethesda, MD 20814 (1968)	Chief Executive Officer & President, No set term; served since 2009	Founder of AdvisorShares Investments, LLC (2006 – present); President and CEO of Arrow Investment Advisors, LLC (2006 – 2008); Vice-President –  Business Development of Rydex Investments (2001 – 2006).	18	None
Dan Ahrens 4144 N. Central Expressway, Suite 600, Dallas, TX 75204 (1966)	Chief Compliance Officer, Secretary & Treasurer, No set term; served 2009	Executive Vice President of AdvisorShares Investments, LLC (2008 –present); President of Ahrens Advisors, LP (2005 – 2008); President of Mutuals Advisors, Inc. & Mutuals.com Funds (2003 – 2005).	18	None

120

Board Review of Investment Advisory and Sub-Advisory Agreements

  

ADVISORY AND SUB-ADVISORY CONTRACT APPROVAL

Renewal of the Advisory Agreement and Peritus High Yield ETF Sub-Advisory Agreement

At meetings of the Board of Trustees (the “Board”) of AdvisorShares Trust (the “Trust”) held on February 27, 2012 and May 21, 2012 (together, the “Meetings”), the Board, including those trustees who are not “interested persons” of the Trust, as that term is defined in the Investment Company Act of 1940 (the “1940 Act”) (the “Independent Trustees”), unanimously approved (1) the renewal of the investment sub-advisory agreement between the Advisor and Peritus I Asset Management, LLC (“Peritus”) on behalf of the Peritus High Yield ETF and (2) the renewal of the investment advisory agreement between the Trust on behalf of following series: Dent Tactical ETF, WCM/BNY Mellon Focused Growth ADR ETF, Accuvest Global Long Short ETF (formerly, Mars Hill Global Relative Value ETF), Peritus High Yield ETF, Active Bear ETF, Cambria Global Tactical ETF, Madrona Domestic ETF, Madrona International ETF, Madrona Global Bond ETF, Meidell Tactical Advantage, Rockledge SectorSAM ETF, TrimTabs Float Shrink ETF, and Accuvest Global Opportunities ETF (each, a “Fund” and collectively, the “Funds”) and AdvisorShares Investments, LLC (the “Advisor”) (together with the investment sub-advisory agreement, the “Advisory Agreements”).

Pursuant to Section 15(c) of the 1940 Act, the Board must annually review and re-approve the existing Advisory Agreements after their initial two-year term: (i) by the vote of the Board or by a vote of the shareholders of the Funds; and (ii) by the vote of a majority of the Independent Trustees, cast in person at a meeting called for the purpose of voting on such approval. Each year, the Board calls and holds a meeting to decide whether to renew the Advisory Agreements for an additional one-year term. In preparation for the meeting, the Board requests and reviews a wide variety of information from the Advisor and Peritus. The Board uses this information, as well as other information that the Advisor, Peritus and other service providers may submit to the Board, to help them decide whether to renew the Advisory Agreements for an additional year.

Prior to this year’s Meetings held on February 27, 2012 and May 21, 2012, the Board, including the Independent Trustees, reviewed written materials from the Advisor and Peritus regarding, among other things: (i) the nature, extent and quality of the services to be provided by the Advisor and Peritus; (ii) the investment performance of each Fund; (iii) the costs of the services to be provided and profits to be realized by the Advisor and its affiliates from the relationship with the Funds; (iv) the costs of the services to be provided and profits and other benefits to be realized by Peritus and its affiliates from the relationship with the Peritus High Yield ETF; (v) the respective personnel and operations of Peritus; (vi) the extent to which economies of scale would be realized as each Fund grows; and (vii) whether fee levels reflect these economies of scale for the benefit of the Funds’ investors, as discussed in further detail below.

At the Meetings, representatives of the Advisor and Peritus, along with other Fund service providers, presented additional oral and written information to help the Board evaluate the Advisor’s and Peritus’ advisory fees and other aspects of the Advisory Agreements. The Advisor provided an overview of the Advisor’s operations and management of the Funds, including comparative fee data and profitability analysis for each Fund, and also discussed compliance oversight. Peritus discussed its management of the Peritus High Yield ETF in more detail, including the Fund’s strategy, its focus on the international market, the Fund’s positioning in the market, and its attractive and unique offering. Peritus also discussed the company’s overall business generally, including personnel, the company’s culture and the differences between exchange-traded funds and separate accounts. The Board then discussed the written materials that the Board received before the Meetings, the Advisor’s and Peritus’ oral presentations and any other information that the Board received at the Meetings, and deliberated on the renewal of the Advisory Agreements in light of this information. In its deliberations, the Board considered the factors and reached the conclusions described below relating to the selection of the

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Advisor and Peritus and the renewal of the Advisory Agreements. The Board did not identify any single piece of information discussed below that was all-important, controlling or determinative of its decision.

Nature, Extent and Quality of Services Provided by the Advisor and Peritus

In considering the nature, extent and quality of the services provided by the Advisor and Peritus, the Board reviewed the portfolio management services provided to the Funds. The Board also noted the extensive responsibilities that the Advisor has as investment adviser to the Funds, including the selection of the Funds’ sub-advisers and oversight of the sub-advisers’ compliance with Fund policies and objectives, oversight of general Fund compliance with federal laws, and the implementation of Board directives as they relate to the Funds. The most recent investment adviser registration forms (“Forms ADV”) for the Advisor and Peritus were also provided to the Board, as were the responses of the Advisor and Peritus to a detailed series of questions which included, among other things, information about the background and experience of the portfolio managers primarily responsible for the day-to-day management of the Funds.

The Board also considered the Advisor’s overall high quality of the personnel, operations, financial condition, and investment advisory capabilities and information concerning Peritus’ compliance function, operational capabilities and portfolio management team. Based on the factors above, as well as those discussed below, the Board concluded that it was satisfied with the nature, extent and quality of the services provided to the Funds by the Advisor and Peritus.

Investment Performance of the Funds

The Board was provided with information regarding each Fund’s performance since the Advisory Agreements were last approved, as well as information regarding each Fund’s performance since its inception. At the meeting, representatives of the Advisor and Peritus provided information regarding, and led a discussion of, factors impacting the performance of the Funds, outlining current market conditions and explaining the Advisor’s expectations and strategies for the future. Based on this information, the Board concluded that it was satisfied with the investment results that the Advisor and Peritus had been able to achieve for the Funds.

Costs of Advisory Services, Profitability and Economies of Scale

In concluding that the advisory fee payable by each Fund was reasonable, the Board reviewed a report of the advisory fee paid by each Fund to the Advisor, the sub-advisory fee paid by the Advisor to Peritus, and the fees and expenses waived and/or reimbursed by the Advisor and Peritus over the period, as well as the costs and other expenses incurred by the Advisor and Peritus in providing advisory services. The Board also reviewed reports comparing the expense ratio and advisory fee paid by each Fund to those paid by other comparable funds and noted each Fund’s advisory fee was consistent with the range of advisory fees paid by other peer funds. The Board concluded for each Fund that the advisory fee appeared reasonable in light of the services rendered and was the result of arm’s length negotiations. In addition, the Board considered for each Fund whether economies of scale were realized during the current contract period, but concluded that such economies of scale had not yet been achieved.

Based on the Board’s deliberations and its evaluation of the information described above, the Board, including all of the Independent Trustees, unanimously: (i) concluded that terms of the Advisory Agreements are fair and reasonable; (ii) concluded that the Advisor’s fees are reasonable in light of the services that its provides to the Funds (iii) concluded that Peritus’ fees are reasonable in light of the services that it provides to the Peritus High Yield ETF; and (iv) agreed to renew the Advisory Agreements for another year.

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Initial Approval of the Advisory and Sub-Advisory Agreements for Accuvest Global Long Short ETF and Global Echo ETF

At meetings of the Board held on August 30, 2011 and November 16, 2011 (together, the “Initial Approval Meetings”), the Board considered the approval of the investment advisory agreement between the Trust and the Advisor (the “Advisory Agreement”), for an initial term of two years, on behalf of the Global Echo ETF. The Board also considered the approval of separate sub-advisory agreements (together, the “Sub-Advisory Agreements,” and collectively, with the Advisory Agreement, the “New Agreements”) between (1) the Advisor and Accuvest Global Advisors, a California corporation, on behalf of the Accuvest Global Long Short ETF (formerly, Mars Hill Global Relative Value ETF), and (2) the Advisor and Baldwin Brothers Inc., a Delaware corporation, Community Capital Management Inc., a Delaware corporation, First Affirmative Financial Network LLC, a Colorado limited liability company, and Reynders, McVeigh Capital Management, LLC, a Massachusetts limited liability company, on behalf of the Global Echo ETF (each, a “Sub-Advisor,” collectively, the “Sub-Advisors” and, together with the Advisor, the “Advisors”) pursuant to which the Sub-Advisors perform portfolio management and related services for the Accuvest Global Long Short ETF and the Global Echo ETF. In addition, on March 29, 2012, the Sub-Advisory Agreement between the Advisor and Accuvest Global Advisors was approved by a majority of shareholders of the Accuvest Global Long Short Fund.

Pursuant to Section 15(c) of the 1940 Act, the Board considered the approval of the New Agreements for initial two-year terms. Each New Agreement, after the initial two-year term, must be approved annually: (i) by the vote of the Board or by a vote of the shareholders of each Fund; and (ii) by the vote of a majority of the Independent Trustees, cast in person at a meeting called for the purpose of voting on such approval. After the initial two-year term, the Board will call and hold a meeting each year to decide whether to renew each New Agreement for an additional one-year term.

In connection with its consideration of the New Agreements, the Board, including the Independent Trustees, was presented with, and requested, received and evaluated, materials about the New Agreements and the services proposed to be provided thereunder, including information about the investment advisory fee rates and related matters from the Advisors. In that regard, the Board reviewed presentations it received from each Sub-Advisor, which included information with respect to staffing, management, organizational structure and investment philosophy and processes at each firm. For the Global Echo ETF, the Board also reviewed information comparing the proposed investment advisory fee rates and expense ratios with a group of comparable funds as selected by the Advisor. The Board also received various other materials which it considered relevant to its consideration and approval of the proposed New Agreements.

At the conclusion of its review of the materials discussed above and the discussions among the Trustees leading up to and during the Initial Approval Meetings, the Board, on behalf of the Trust and the Accuvest Global Long Short ETF and Global Echo ETF, agreed that it had been furnished with sufficient information to make an informed business decision with respect to approval of each of the proposed New Agreements.

In considering each of the proposed New Agreements, the Board considered factors bearing on the nature, extent and quality of the services proposed to be provided to the Accuvest Global Long Short ETF and Global Echo ETF, and the costs of those services, with a view toward making a business judgment as to whether each of the proposed New Agreements is, under the circumstances, in the best interests of the Accuvest Global Long Short ETF and Global Echo ETF and their respective shareholders. Among the factors that the Board considered and conclusions that the Trustees, in their business judgment, reached included, principally the following: (i) their favorable evaluation of the nature, extent and quality of the investment management services proposed to be provided by the Advisors to the Accuvest Global Long Short ETF and the Global Echo ETF; (ii) their satisfaction that the investment advisory fee rates proposed for the Accuvest Global Long Short ETF and the Global Echo ETF are consistent with applicable standards and are reasonable and fair; and (iii) their assessment that the Advisors’ projected profitability in connection with providing investment management services to the Accuvest Global Long Short ETF and the Global Echo ETF would not be excessive.

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In its deliberations, the Board did not identify any single factor that was paramount or controlling and individual trustees may have attributed different weights to various factors. Certain factors considered by the Board at the Initial Approval Meetings are addressed in more detail below.

Nature, quality, and extent of services to be provided by the Advisor and Sub-Advisors

In considering the nature, extent and quality of the services proposed to be provided by the Advisors, the Board reviewed the services to be provided by each firm and the qualifications and backgrounds of the portfolio managers responsible for managing the Accuvest Global Long Short ETF and Global Echo ETF. The Board also discussed information set forth in each firm’s Form ADV (Parts 1A and 2A), which provides information about each firm, its management, and its business activities and affiliations. For the Sub-Advisors to the Global Echo ETF, the Board observed that the Chief Compliance Officer of the Trust reviewed each firm’s compliance program and determined that they were reasonably designed to prevent violation of the federal securities laws by the Global Echo ETF. For the Accuvest Long Short Fund, the Board considered the fact that Accuvest Global Advisors also serves as the sub-adviser for Accuvest Global Opportunities ETF, a separate series of the Trust, and the professional experience and qualifications of Accuvest Global Advisors’ senior management and key professional personnel, including those individuals responsible for portfolio management. The Board also considered Accuvest Global Advisors’ operational capabilities and resources, and its depth and breadth of experience in managing investment portfolios. Based on its review, the Board determined that the Advisor, the Sub-Advisors and their respective personnel were well-qualified to provide all required services to the Accuvest Global Long Short ETF and Global Echo ETF and to provide services that are of high quality, and that each firm has appropriate resources to provide such services.

Performance of the Accuvest Global Long Short ETF and Global Echo ETF

In connection with the assessment of the ability of Accuvest Global Advisors to perform its duties under the Sub-Advisory Agreement, the Board considered the sufficiency of its resources. The Board concluded that Accuvest Global Advisors had the financial resources necessary to perform its obligations under the Sub-Advisory Agreement. With respect to the Global Echo ETF, the Board noted that although consideration of a fund’s investment performance is usually reviewed in connection with evaluating the nature, extent and quality of services provided under advisory agreements, no conclusion about this factor was made since the Global Echo ETF is newly formed.

Cost of services to be provided and profits to be realized by the Advisor, Sub-Advisors and their affiliates under the New Agreements, and comparative fees

The Board considered the cost of the services to be provided by the Advisors, and reviewed the investment advisory fees to be paid pursuant to the New Agreements. In addition, the Board discussed the fee arrangements between the Advisor and each Sub-Advisor. The Board also reviewed information provided by AdvisorShares regarding advisory fees of comparable funds in peer groups, and evaluated the proposed advisory fee arrangements in light of this information and the factors that judicial decisions have specified as pertinent generally. The Board also considered the Advisor’s contractual agreement to waive a portion of its advisory fee in an effort to control the New Funds’ expense ratios. Based on the foregoing considerations, the Board determined that it was satisfied that the investment advisory fee rate proposed for each New Fund was consistent with applicable standards and was reasonable and fair.

Economies of scale

The Board considered whether economies of scale would be realized by the Accuvest Global Long Short ETF at higher asset levels. The Board also assessed whether certain costs would increase if asset levels rise. The Board concluded that under foreseeable conditions, they were unable to assess at this time whether economies of scale would be realized if the Accuvest Global Long Short ETF were to experience significant growth. The Board, however, noted that the fees paid under the new Sub-Advisory Agreement, like the previous sub-advisory agreement, are paid by the Advisor. For the Global Echo ETF, the Board concluded that economies of scale would not likely be realized during the Sub-Advisors’ initial term and determined that it would reconsider this factor at an appropriate time in

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the future. In the event there were to be significant asset growth in either the Accuvest Global Long Short ETF or the Global Echo ETF, the Board determined to reassess whether the investment sub-advisory fees paid to the Sub-Advisors appropriately took into account any economies of scale that had been realized as a result of that growth.

Conclusion

Based on the Board’s deliberations and its evaluation of the information described above, the Board including the Independent Trustees, unanimously: (i) concluded that the terms of the New Agreements are fair and reasonable; (ii) concluded that Accuvest Global Advisors’ fee is fair and reasonable in light of the services that it will provide to the Accuvest Global Long Short ETF, (iii) concluded that the Advisor’s fee is fair and reasonable in light of the services that it will provide to the Global Echo ETF, (iv) concluded that the fees for Baldwin Brothers Inc., Community Capital Management Inc., First Affirmative Financial Network LLC, and Reynders, McVeigh Capital Management, LLC are each fair and reasonable in light of the services that each Sub-Advisor will provide to the Global Echo ETF, and (v) agreed to approve the New Agreements for initial terms of two years.

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SUPPLEMENTAL INFORMATION
  
 

  

Shareholder Reports and Quarterly Portfolio Disclosure

The Fund is required to file their complete schedule of portfolio holdings with the SEC for their first and third quarters on Form N-Q. Copies of the filings are available without charge, upon request on the SEC’s website at www.sec.gov. You can also obtain copies of Form N-Q by (i) visiting the SEC’s Public Reference Room in Washington, DC (information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330); (ii) sending your request and a duplicating fee to the SEC’s Public Reference Room, Washington, DC 20549-0102; or (iii) sending your request electronically to publicinfosec.gov.

The Fund’s Statement of Additional Information (“SAI”) has additional information about the Fund’s Trustees and Officers and is available without charge upon request. Contact your financial representative for a free prospectus or SAI.

Premium/Discount Information

Information about the differences between the daily market price on the secondary market for the shares of a Fund and the Fund’s net asset value may be found on the Fund’s website at http://www.advisorshares.com.

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ADVISORSHARES TRUST
 

  

Investment Advisor
AdvisorShares Investments, LLC
2 Bethesda Metro Center, Suite 1330
Bethesda, Maryland 20814

Sub-Adviser
WCM Investment Management
281 Brooks Street
Laguna Beach, California 92651

Madrona Funds, LLC
2911 Bond Street, Suite 105
Everett, Washington 98201

Accuvest Global Advisors
3100 Oak Road, Suite 380
Walnut Creek, CA 94597

Cambria Investment Management, Inc.
2321 Rosecrans Avenue, Suite 4210
El Segundo, California 90245

Ranger Alternative Management, L.P.
300 Crescent Court, Suite 1100
Dallas, Texas 75201

Peritus I Asset Management, LLC
26 West Anapamu, 3^rd Floor
Santa Barbara, California 93103

American Wealth Management
570 Hammill Lane
Reno, Nevada 89511

TrimTabs Asset Management, LLC
2018 Stony Oak Court
Santa Rosa, CA 95403

Community Capital Management, Inc.
2500 Weston Road, Suite 101
Weston, FL 33331

First Affirmative Financial Network, LLC
5475 Mark Dabling Boulevard, Suite 108
Colorado Springs, Colorado 80918

Reynders, McVeigh Capital Management, LLC
121 High Street, 5^th Floor
Boston, MA 02110

Baldwin Brothers, Inc.
204 Spring Street
Marion, MA 02738

Rockledge Advisors, LLC
460 Classon Avenue
Brooklyn, NY 11238

Distributor
Foreside Fund Services, LLC
Three Canal Plaza, Suite 100
Portland, ME 04101

Custodian/Fund Administrator/Transfer Agent
The Bank of New York Mellon
101 Barclay Street
New York, NY 10286

Legal Counsel
Morgan, Lewis & Bockius LLP
1111 Pennsylvania Ave, N.W.
Washington, D.C. 20004

Independent Registered Public Accounting Firm
Tait, Weller & Baker LLP
1818 Market Street
Philadelphia, PA 19103

This report is submitted for the general information of the shareholders of the Fund. It is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus, which includes information regarding the Fund’s risks, objectives, fees and expenses, experience of management and other information.

Item 2. Code of Ethics.

a). The Registrant has adopted a code of ethics that applies to the Registrant’s Chief Executive Officer, Treasurer or persons performing similar functions.

b). There have not been any changes to the Code of Ethics.

c). Not Applicable

d). During the period, Registrant granted no waivers from the provisions of its code of ethics that applies to the Registrant's Chief Executive Officer, Treasurer or persons performing similar functions.

e). Not Applicable

f). Attached

Item 3. Audit Committee Financial Expert.

a). The Registrant’s Board of Trustees has one audit committee financial expert serving on its audit committee, an “independent” Trustee, Elizabeth Piper/Bach. Under applicable securities laws, a person who is determined to be an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities that are greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and Board of Trustees in the absence of such designation or identification.

Item 4. Principal Accountant Fees and Services.

a). Audit Fees: the aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for the audit are as follows:

2012: $182,200

2011: $86,000

b). Audit-Related Fees: the aggregate fees billed in each of the previous last two fiscal years for assurance and related services by the principal accountant that are principally related to the Registrant’s tax return reviews and are not reported under paragraph (a) of this item are as follows:

2012: N/A

2011: N/A

c). Tax Fees, the aggregate fees billed in each of the previous last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning are as follows:

2012: $36,400

2011: $17,000

d). All Other Fees, the aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) and (c) of this Item are as follows:

2012: N/A

2011: N/A

e) Audit Committee Pre-Approval Policies and Procedures.

(i) Per Rule 2-01(c)(7)(A), the Audit Committee pre-approves all of the Audit, Audit-Related, Tax and Other Fees of the Registrant.

(ii) 100% of services described in each of Items 4(b) through (d) were approved

by the audit committee pursuant to paragraph (c)(7)(A) of Rule 2-01 of Regulation S-X.

(f) No response required.

(g) The aggregate non-audit fees billed by the Registrant's accountant for services rendered to the Funds, the Advisor or any entity controlling, controlled by, or under common control with the Advisor that provides ongoing services to the Registrant (except for any sub-advisor whose role is primarily portfolio management and is subcontracted with or overseen by another investment advisor) that directly impacted the Funds for the period ended June 30, 2011 were as follows:

2012: N/A

2011: N/A

(h) Not Applicable

Item 5. Audit Committee of Listed Registrants.

(a) The Fund has a designated Audit Committee in accordance with Section 3(a)(58)(A) of the Securities and Exchange Act of 1934 (the “Exchange Act”) and the member of such committee is Elizabeth Piper/Bach and William G. McVay.

(b) Not applicable.

Item 6. Schedule of Investments.

(a) Schedule is included as part of the report to shareholders filed under Item 1 of this Form.

(b) Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company & Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

Not applicable.

Item 11. Controls and Procedures.

(a) The Chief Executive Officer and Treasurer have evaluated the Registrant's disclosure controls and procedures within 90 days of the filing date of this report and have concluded that these controls and procedures are effective.

(b) There were no significant changes in the Registrant's internal controls over financial reporting or in other factors that could significantly affect these controls subsequent to the date of their evaluation.

Item 12. Exhibits.

(a) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the Registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Attached

(b) Separate certifications for each Chief Executive Officer and Treasurer of the Registrant as required by Rule 30a-2(a) under the 1940 Act (17CFR 270.30a-(a)).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Registrant: AdvisorShares Trust

By: /s/ Noah Hamman

Noah Hamman, Chief Executive Officer

Date: September 6, 2012

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

Registrant: AdvisorShares Trust

By: /s/ Noah Hamman

Noah Hamman, Chief Executive Officer

Date: September 6, 2012

By: /s/ Dan Ahrens

Dan Ahrens, Treasurer

Date: September 6, 2012