AdvisorShares Dorsey Wright ADR ETF (AADR) N-CSRS Certified semi-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

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: December 31, 2013

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, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Reports to Stockholders.

The Report to Shareholders is attached herewith.

ADVISORSHARES TRUST

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

Semi-Annual Report

December 31, 2013

TABLE OF CONTENTS

Letter from the CEO of AdvisorShares Investments, LLC		1
Shareholder Expense Examples		3
Schedules of Investments
AdvisorShares Accuvest Global Long Short ETF (AGLS)		6
AdvisorShares Accuvest Global Opportunities ETF (ACCU)		8
AdvisorShares Athena International Bear ETF (HDGI)		9
AdvisorShares Cambria Global Tactical ETF (GTAA)		12
AdvisorShares EquityPro ETF (EPRO)		15
AdvisorShares Global Echo ETF (GIVE)		16
AdvisorShares Madrona Domestic ETF (FWDD)		23
AdvisorShares Madrona Global Bond ETF (FWDB)		41
AdvisorShares Madrona International ETF (FWDI)		43
AdvisorShares Meidell Tactical Advantage ETF (MATH)		56
AdvisorShares Newfleet Multi-Sector Income ETF (MINC)		58
AdvisorShares Peritus High Yield ETF (HYLD)		74
AdvisorShares Pring Turner Business Cycle ETF (DBIZ)		80
AdvisorShares QAM Equity Hedge ETF (QEH)		84
AdvisorShares Ranger Equity Bear ETF (HDGE)		88
AdvisorShares STAR Global Buy-Write ETF (VEGA)		92
AdvisorShares TrimTabs Float Shrink ETF (TTFS)		96
AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF (AADR)		103
Statements of Assets and Liabilities		108
Statements of Operations		112
Statements of Changes in Net Assets		116
Statements of Cash Flows		123
Financial Highlights		124
Notes to Financial Statements		136
Board of Trustees and Officers		158
Board Review of Investment Advisory and Sub-Advisory Agreements		163
Supplemental Information		164

  
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ADVISORSHARES TRUST
Letter from the CEO of AdvisorShares Investments, LLC

December 31, 2013

Thank you for being a shareholder in AdvisorShares ETFs. We are pleased to provide you with this semi-annual report for the period ending December 31, 2013. We hit an important milestone in our growth during this past year when we crossed the $1 billion in assets under management threshold. As CEO of AdvisorShares, I want to thank you because as much as hitting this milestone is a testament to the hard work of our employees and our portfolio management teams, it is also a testament to the trust and faith that you have shown in AdvisorShares and in our actively managed ETF products. Speaking for all AdvisorShares employees, a heartfelt thank you!

From December 31, 2012 through December 31, 2013, our total assets under management increased from $611,035,589 to $1,047,558,808. In this same period, the number of Active ETFs across all sponsors increased from 55 ETFs to 71 ETFs, and total assets under management increased almost 50% to approximately $15,000,000,000.

During this period, we launched the following actively managed ETFs:

• MINC — AdvisorShares Newfleet Multi-Sector Income ETF (Multi-Sector Income Strategy);

• HDGI — AdvisorShares Athena International Bear ETF (International Equity All-Short Strategy).

In December of 2013, the Board of Trustees made the decision to reorganize one of our ETFs while substantially maintaining its investment objective. The AdvisorShares Global Alpha & Beta ETF (NYSE Arca: RRGR) was renamed the AdvisorShares EquityPro ETF (NYSE Arca: EPRO) and The Elements Financial Group of Irvine, California was brought in as the new portfolio manager. We carefully review the entire AdvisorShares actively managed ETF suite on an ongoing basis, and determined that it was in the best interest of shareholders to make this change due to its performance and associated costs. As a leading innovator of actively managed ETFs, we remain steadfastly committed to providing a diversified line-up of alternative and core strategies to help investors realize their financial goals.

Calendar year 2014 will be another year of explosive growth from our product pipeline, as we are planning to launch over eight new ETFs into the marketplace, providing you with even more quality investment managers and innovative investment strategies, which provide transparency, intra-day liquidity, and operating efficiency.

In addition to reading this report, I encourage you to visit www.advisorshares.com to learn more about all of the actively managed ETFs currently offered by AdvisorShares and others which will be launching soon. You will find detailed information on each investment strategy along with manager commentary from each ETF’s portfolio management team. To hear a short manager commentary in an audio format, please log in and look for the “Manager Minutes” box to listen to the portfolio manager discuss the current positioning of an ETF. 2013 also saw the re-launching of our blog which includes non-product related insight from a number of our portfolio managers. I encourage to regularly check it out at www.alphabaskets.com.

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ADVISORSHARES TRUST
Letter from the CEO of AdvisorShares Investments, LLC (continued)

December 31, 2013

I appreciate your support and use of our ETFs and hope that you continue to find them helpful to your investment goals.

Sincerely,
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. There is no guarantee that the individual Funds’ will achieve the stated investment objectives. 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 December 31, 2013 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.

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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 July 1, 2013 and held for the period ended December 31, 2013.

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 7/1/2013		Ending Account Value 12/31/2013		Annualized Expense Ratio for the Period(1)			Expenses Paid
AdvisorShares Accuvest Global Long Short ETF
Actual	$	1,000.00	$	1,017.40		1.50	%	$	7.63
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,017.64		1.50	%	$	7.63
AdvisorShares Accuvest Global Opportunities ETF
Actual	$	1,000.00	$	1,088.90		1.25	%	$	6.58
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,018.90		1.25	%	$	6.36
AdvisorShares Athena International Bear ETF(2)
Actual	$	1,000.00	$	902.80		1.50	%	$	6.49
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,015.92		1.50	%	$	7.62

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ADVISORSHARES TRUST

Shareholder Expense Examples (continued)

Fund Name	Beginning Account Value 7/1/2013		Ending Account Value 12/31/2013		Annualized Expense Ratio for the Period(1)			Expenses Paid
AdvisorShares Cambria Global Tactical ETF
Actual	$	1,000.00	$	1,046.70		1.25	%	$	6.45
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,018.90		1.25	%	$	6.36
AdvisorShares EquityPro ETF(3)
Actual	$	1,000.00	$	1,125.10		1.25	%	$	6.70
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,018.90		1.25	%	$	7.63
AdvisorShares Global Echo ETF
Actual	$	1,000.00	$	1,114.10		1.50	%	$	7.99
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,017.64		1.50	%	$	7.63
AdvisorShares Madrona Domestic ETF
Actual	$	1,000.00	$	1,188.80		1.25	%	$	6.90
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,018.90		1.25	%	$	6.36
AdvisorShares Madrona Global Bond ETF
Actual	$	1,000.00	$	1,022.10		0.95	%	$	4.84
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,020.42		0.95	%	$	4.84
AdvisorShares Madrona International ETF
Actual	$	1,000.00	$	1,206.90		1.25	%	$	6.95
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,018.90		1.25	%	$	6.36
AdvisorShares Meidell Tactical Advantage ETF
Actual	$	1,000.00	$	1,056.80		1.35	%	$	7.00
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,018.40		1.35	%	$	6.87
AdvisorShares Newfleet Multi-Sector Income ETF
Actual	$	1,000.00	$	1,021.70		0.75	%	$	3.82
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,021.42		0.75	%	$	3.82
AdvisorShares Peritus High Yield ETF
Actual	$	1,000.00	$	1,069.30		1.18	%	$	6.15
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,019.26		1.18	%	$	6.01

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ADVISORSHARES TRUST

Shareholder Expense Examples (continued)

Fund Name	Beginning Account Value 7/1/2013		Ending Account Value 12/31/2013		Annualized Expense Ratio for the Period(1)			Expenses Paid
AdvisorShares Pring Turner Business Cycle ETF
Actual	$	1,000.00	$	1,049.00		1.49	%	$	7.70
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,017.69		1.49	%	$	7.58
AdvisorShares QAM Equity Hedge ETF
Actual	$	1,000.00	$	1,086.20		1.50	%	$	7.89
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,017.64		1.50	%	$	7.63
AdvisorShares Ranger Equity Bear ETF
Actual	$	1,000.00	$	789.70		1.64	%	$	7.40
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,016.94		1.64	%	$	8.34
AdvisorShares STAR Global Buy-Write ETF
Actual	$	1,000.00	$	1,058.00		1.85	%	$	9.60
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,015.88		1.85	%	$	9.40
AdvisorShares TrimTabs Float Shrink ETF
Actual	$	1,000.00	$	1,184.10		0.99	%	$	5.45
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,020.21		0.99	%	$	5.04
AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF
Actual	$	1,000.00	$	1,152.10		1.25	%	$	6.78
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,018.90		1.25	%	$	6.36

(1) Expense ratios reflect expense caps through the period ended December 31, 2013.

(2) Fund commenced operations on July 18, 2013. Expenses are calculated using the Fund's annualized expense ratio, multiplied by the ending value for the period, multiplied by 166/365 (to reflect commencement of operation).

(3) Formerly known as, AdvisorShares Global Alpha & Beta ETF.

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ADVISORSHARES
ACCUVEST GLOBAL LONG SHORT ETF
Schedule of Investments

December 31, 2013 (Unaudited)

Investments	Shares		Value
EXCHANGE TRADED FUNDS — 99.0%
Equity Fund — 99.0%
iShares Core S&P 500 ETF		15,558	$	2,888,343
iShares MSCI Austria Capped ETF(a)		100,942		1,999,661
iShares MSCI China ETF(a)		169,095		8,153,761
iShares MSCI Germany ETF(a)		207,093		6,577,274
iShares MSCI Japan ETF(a)		700,844		8,501,238
iShares MSCI Netherlands ETF		121,010		3,137,789
iShares MSCI Russia Capped ETF(a)		274,175		6,004,432
iShares MSCI South Korea Capped ETF(a)		59,371		3,839,523
iShares MSCI Taiwan ETF(a)		121,968		1,758,778
Total Exchange Traded Funds (Cost $39,816,766)				42,860,799
MONEY MARKET FUND — 1.1%
Dreyfus Cash Management – Investor Class, 0.00%(b) (Cost $465,257)		465,257		465,257
Total Investments — 100.1% (Cost $40,282,023)				43,326,056
Liabilities in Excess of Other Assets — (0.1)%				(22,675	)
Net Assets — 100.0%			$	43,303,381

ETF — Exchange Traded Fund

(a) All or a portion of this security has been segregated as collateral for open swap contracts. The aggregate market value of the collateral posted was $26,190,371 which includes cash in the amount of $663,518 as of December 31, 2013.

(b) Rate shown reflects the 7-day yield as of December 31, 2013.

See accompanying Notes to Financial Statements.

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

December 31, 2013 (Unaudited)

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Equity Fund		99.0	%
Money Market Fund		1.1
Total Investments		100.1
Liabilities in Excess of Other Assets		(0.1	)
Net Assets		100.0	%

Total Return Swaps contracts outstanding as of December 31, 2013.

Reference Entity	Number of Contracts			Annual Financing Rate Received (Paid)			Termination Date		Notional Amounts			Fair Value			Unrealized Appreciation/ (Depreciation)
iShares MSCI Australia ETF		(67,518	)		(1.50	)%		06/09/2015	$	(1,687,275	)	$	(1,648,818	)	$	38,457
iShares MSCI Brazil Capped ETF		(50,450	)		(0.75	)		06/09/2015		(2,245,530	)		(2,255,278	)		(9,748	)
iShares MSCI Canada ETF		(57,715	)		(0.38	)		06/09/2015		(1,650,072	)		(1,683,401	)		(33,329	)
iShares MSCI Chile Capped ETF		(89,869	)		(1.50	)		06/09/2015		(4,142,062	)		(4,276,230	)		(134,168	)
iShares MSCI Italy Capped ETF		(159,587	)		(0.94	)		04/09/2015		(2,366,675	)		(2,489,694	)		(123,019	)
iShares MSCI South Africa ETF		(43,166	)		(4.00	)		06/09/2015		(2,608,521	)		(2,791,024	)		(182,503	)
iShares MSCI Switzerland Capped ETF		(74,909	)		0.68			06/09/2015		(2,364,877	)		(2,470,132	)		(105,255	)
iShares MSCI Thailand Capped ETF		(28,506	)		(2.00	)		06/09/2015		(2,073,241	)		(1,959,819	)		113,423
iShares MSCI Turkey ETF		(10,000	)		(5.00	)		06/09/2015		(535,400	)		(478,460	)		56,940
WisdomTree India Earnings Fund		(144,723	)		(2.25	)		06/09/2015		(2,451,608	)		(2,527,803	)		(76,195	)
Net Unrealized Depreciation															$	(455,397	)

Morgan Stanley acts as the counterparty to the total return swap contract listed above. The Fund either receives fees from, or pay fees to, the counterparty, depending upon the total return of the benchmark, and the agreed-upon financing rate.

See accompanying Notes to Financial Statements.

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ADVISORSHARES
ACCUVEST GLOBAL OPPORTUNITIES ETF
Schedule of Investments

December 31, 2013 (Unaudited)

Investments	Shares		Value
EXCHANGE TRADED FUNDS — 99.2%
Equity Fund — 99.2%
Global X Norway 30 ETF		114,416	$	1,907,818
iShares MSCI China ETF(a)		97,639		4,708,153
iShares MSCI Germany ETF(a)		120,423		3,824,634
iShares MSCI Japan ETF		417,886		5,068,957
iShares MSCI Russia Capped ETF		159,473		3,492,459
iShares MSCI South Korea Capped ETF		34,423		2,226,135
Total Exchange Traded Funds (Cost $19,677,770)				21,228,156
MONEY MARKET FUND — 1.5%
Dreyfus Cash Management – Investor Class, 0.00%(b) (Cost $322,564)		322,564		322,564
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 15.6%
BNY Mellon Securities Lending Overnight Fund, 0.09%(c) (Cost $3,342,825)		3,342,825		3,342,825
Total Investments — 116.3% (Cost $23,343,159)				24,893,545
Liabilities in Excess of Other Assets — (16.3)%				(3,482,539	)
Net Assets — 100.0%			$	21,411,006

ETF — Exchange Traded Fund

(a) All or a portion of security is on loan. The aggregate market value of the securities on loan is $3,259,243; the aggregate market value of the collateral held by the fund is $3,342,825.

(b) Rate shown reflects the 7-day yield as of December 31, 2013.

(c) Rate shown reflects the 1-day yield as of December 31, 2013.

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Equity Fund		99.2	%
Money Market Fund		17.1
Total Investments		116.3
Liabilities in Excess of Other Assets		(16.3	)
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

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ADVISORSHARES
ATHENA INTERNATIONAL BEAR ETF
Schedule of Investments

December 31, 2013 (Unaudited)

Investments	Shares			Value
MONEY MARKET FUND — 130.7%
Goldman Sachs Financial Square Fund, 0.06%(a)		1,475,113		$	1,475,113
Total Investments Before Securities Sold, Not Yet Purchased (Cost $1,475,113)					1,475,113
Securities Sold, Not Yet Purchased — (71.3)%
COMMON STOCKS — (71.3)%
Auto Manufacturers — (3.5)%
Volvo AB (Sweden)(b)		(2,970	)		(39,017	)
Auto Parts & Equipment — (2.2)%
Magna International, Inc. (Canada)		(300	)		(24,618	)
Banks — (21.1)%
Bank of Ireland (Ireland)*(b)		(1,090	)		(15,707	)
Bank of Montreal (Canada)		(920	)		(61,327	)
Canadian Imperial Bank of Commerce (Canada)		(550	)		(46,976	)
Toronto-Dominion Bank (The) (Canada)		(1,210	)		(114,030	)
Total Banks					(238,040	)
Chemicals — (2.9)%
Akzo Nobel NV (Netherlands)(b)		(940	)		(24,318	)
Braskem SA (Brazil)*(b)		(450	)		(8,032	)
Total Chemicals					(32,350	)
Diversified Financial Services — (0.4)%
Altisource Portfolio Solutions SA (Luxembourg)*		(30	)		(4,759	)
Electronics — (0.8)%
Sensata Technologies Holding NV (Netherlands)*		(240	)		(9,305	)
Entertainment — (0.5)%
Lions Gate Entertainment Corp.		(190	)		(6,015	)
Insurance — (13.4)%
ACE Ltd. (Switzerland)		(460	)		(47,624	)
Allied World Assurance Company Holdings AG (Switzerland)		(50	)		(5,641	)
Arch Capital Group Ltd.* (Bermuda)		(180	)		(10,744	)
Assured Guaranty Ltd. (Bermuda)		(250	)		(5,898	)
Everest Re Group Ltd. (Bermuda)		(70	)		(10,911	)
PartnerRe Ltd. (Bermuda)		(70	)		(7,380	)
RenaissanceRe Holdings Ltd. (Bermuda)		(60	)		(5,840	)
Sun Life Financial, Inc. (Canada)		(810	)		(28,617	)
White Mountains Insurance Group Ltd.		(10	)		(6,031	)
Willis Group Holdings PLC (United Kingdom)		(240	)		(10,754	)
XL Group PLC (Ireland)		(380	)		(12,099	)
Total Insurance					(151,539	)

See accompanying Notes to Financial Statements.

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ADVISORSHARES
ATHENA INTERNATIONAL BEAR ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Shares			Value
Leisure Time — (3.4)%
Carnival PLC (United Kingdom)(b)		(930	)	$	(38,548	)
Media — (2.2)%
Pearson PLC (United Kingdom)(b)		(1,100	)		(24,640	)
Mining — (1.1)%
Norsk Hydro ASA (Norway)(b)		(2,760	)		(12,310	)
Miscellaneous Manufacturing — (2.4)%
Ingersoll-Rand PLC (Ireland)		(450	)		(27,720	)
Oil & Gas Services — (0.4)%
Frank's International NV (Netherlands)		(180	)		(4,860	)
Pharmaceuticals — (0.5)%
Taro Pharmaceutical Industries Ltd. (Israel)*		(60	)		(5,934	)
Real Estate — (1.2)%
Brookfield Office Properties, Inc.		(690	)		(13,282	)
Retail — (1.0)%
Tim Hortons, Inc. (Canada)		(200	)		(11,676	)
Semiconductors — (0.9)%
Marvell Technology Group Ltd		(690	)		(9,922	)
Software — (1.8)%
Dassault Systemes SA (France)(b)		(160	)		(19,888	)
Telecommunications — (11.2)%
Telecom Italia SpA (Italy)(b)		(2,440	)		(24,303	)
Telefonica SA (Spain)(b)		(6,230	)		(101,798	)
Total Telecommunications					(126,101	)
Transportation — (0.4)%
Teekay Corp. (Bermuda)		(90	)		(4,321	)
Total Securities Sold, Not Yet Purchased [Proceeds Received $(768,563)]					(804,845	)
Total Investments — 59.4% (Cost $706,550)					670,268
Other Assets in Excess of Liabilities — 40.6%					457,987
Net Assets — 100.0%				$	1,128,255

PLC — Public Limited Company

* Non-income producing security

(a) Rate shown reflects the 7-day yield as of December 31, 2013.

(b) American Depositary Receipt

Cash of $1,511,042 has been segregated to cover margin requirement for open short sales as of December 31, 2013.

See accompanying Notes to Financial Statements.

10

ADVISORSHARES
ATHENA INTERNATIONAL BEAR ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Auto Manufacturers		(3.5	)%
Auto Parts & Equipment		(2.2	)
Banks		(21.1	)
Chemicals		(2.9	)
Diversified Financial Services		(0.4	)
Electronics		(0.8	)
Entertainment		(0.5	)
Insurance		(13.4	)
Leisure Time		(3.4	)
Media		(2.2	)
Mining		(1.1	)
Miscellaneous Manufacturing		(2.4	)
Oil & Gas Services		(0.4	)
Pharmaceuticals		(0.5	)
Real Estate		(1.2	)
Retail		(1.0	)
Semiconductors		(0.9	)
Software		(1.8	)
Telecommunications		(11.2	)
Transportation		(0.4	)
Money Market Fund		130.7
Total Investments		59.4
Other Assets in Excess of Liabilities		40.6
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

11

ADVISORSHARES
CAMBRIA GLOBAL TACTICAL ETF
Schedule of Investments

December 31, 2013 (Unaudited)

Investments	Shares		Value
EXCHANGE TRADED FUNDS — 95.0%
Asset Allocation Fund — 4.7%
WisdomTree Managed Futures Strategy Fund*		50,590	$	2,101,509
Commodity Fund — 3.6%
PowerShares DB Energy Fund*		31,602		921,198
United States Commodity Index Fund*(a)		12,467		699,150
Total Commodity Fund				1,620,348
Currency Fund — 1.8%
CurrencyShares British Pound Sterling Trust*(a)		1,274		207,917
CurrencyShares Euro Trust*		1,477		200,857
CurrencyShares Swiss Franc Trust*(a)		1,839		201,959
WisdomTree Chinese Yuan Fund		7,989		203,528
Total Currency Fund				814,261
Debt Fund — 37.9%
iShares 1–3 Year Treasury Bond ETF		2,025		170,869
iShares 3–7 Year Treasury Bond ETF		7,180		861,815
iShares 7–10 Year Treasury Bond ETF(a)		20,790		2,063,200
iShares Core Total U.S. Bond Market ETF		9,160		974,899
iShares iBoxx $ High Yield Corporate Bond ETF		19,174		1,780,881
iShares iBoxx $ Investment Grade Corporate Bond ETF(a)		6,129		699,993
iShares MBS ETF		9,300		972,501
iShares TIPS Bond ETF		8,848		972,395
Market Vectors International High Yield Bond ETF		10,000		272,500
PIMCO Enhanced Short Maturity ETF		1,686		170,792
PowerShares Emerging Markets Sovereign Debt Portfolio(a)		18,756		506,412
PowerShares Fundamental High Yield Corporate Bond Portfolio(a)		78,435		1,506,736
PowerShares Senior Loan Portfolio		17,150		426,692
SPDR Barclays International Treasury Bond ETF		16,789		969,397
SPDR Barclays TIPS ETF(a)		17,869		972,252
SPDR Blackstone/GSO Senior Loan ETF		8,577		429,022
Vanguard Short-Term Bond ETF		2,128		170,091
Vanguard Total Bond Market ETF		26,017		2,081,100
Vanguard Total International Bond ETF		19,622		973,644
Total Debt Fund				16,975,191

See accompanying Notes to Financial Statements.

12

ADVISORSHARES
CAMBRIA GLOBAL TACTICAL ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Shares		Value
Equity Fund — 47.0%
Cambria Shareholder Yield ETF(a)		45,930	$	1,348,964
Consumer Discretionary Select Sector SPDR Fund		10,868		726,308
Energy Select Sector SPDR Fund(a)		7,401		655,062
Financial Select Sector SPDR Fund		31,439		687,257
Global X FTSE Greece 20 ETF		82,421		1,856,945
Health Care Select Sector SPDR Fund		27,370		1,517,393
Industrial Select Sector SPDR Fund		14,154		739,688
iShares China Large-Cap ETF(a)		22,227		852,405
iShares MSCI Austria Capped ETF(a)		35,695		707,118
iShares MSCI Belgium Capped ETF(a)		60,867		997,604
iShares MSCI EAFE Small-Cap ETF		19,242		980,957
iShares MSCI France ETF		25,824		734,693
iShares MSCI Ireland Capped ETF(a)		58,806		2,108,195
iShares MSCI Italy Capped ETF(a)		47,617		742,349
iShares MSCI Spain Capped ETF(a)		54,656		2,108,082
iShares MSCI Taiwan ETF		60,247		868,762
Market Vectors Russia ETF(a)		29,601		854,581
PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio(a)		8,307		365,259
PowerShares FTSE RAFI Emerging Markets Portfolio		3,257		66,736
PowerShares FTSE RAFI U.S. 1500 Small-Mid Portfolio		2,624		256,444
PowerShares QQQ Trust, Series 1		3,173		279,097
SPDR S&P Emerging Markets SmallCap ETF		3,793		176,033
Vanguard FTSE All-World ex-US ETF		7,115		360,944
Vanguard FTSE Emerging Markets ETF		6,455		265,559
Vanguard Mid-Cap ETF		1,799		197,926
WisdomTree Emerging Markets Equity Income Fund		1,739		88,741
WisdomTree International SmallCap Dividend Fund(a)		7,854		494,252
Total Equity Fund				21,037,354
Total Exchange Traded Funds (Cost $39,334,732)				42,548,663

See accompanying Notes to Financial Statements.

13

ADVISORSHARES
CAMBRIA GLOBAL TACTICAL ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Shares		Value
MONEY MARKET FUND — 5.5%
Invesco Government & Agency Portfolio – Private Investment Class, 0.03%(b) (Cost $2,492,551)		2,492,551	$	2,492,551
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 14.1%
BNY Mellon Securities Lending Overnight Fund, 0.09%(c) (Cost $6,305,550)		6,305,550		6,305,550
Total Investments — 114.6% (Cost $48,132,833)				51,346,764
Liabilities in Excess of Other Assets — (14.6)%				(6,553,470	)
Net Assets — 100.0%			$	44,793,294

ETF — Exchange Traded Fund

MBS — Mortgage Backed Securities

TIPS — Treasury Inflation Protected Securities

* Non-income producing security

(a) All or a portion of security is on loan. The aggregate market value of the securities on loan is $6,135,171; the aggregate market value of the collateral held by the fund is $6,305,550.

(b) Rate shown reflects the 7-day yield as of December 31, 2013.

(c) Rate shown reflects the 1-day yield as of December 31, 2013.

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Asset Allocation Fund		4.7	%
Commodity Fund		3.6
Currency Fund		1.8
Debt Fund		37.9
Equity Fund		47.0
Money Market Fund		19.6
Total Investments		114.6
Liabilities in Excess of Other Assets		(14.6	)
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

14

ADVISORSHARES
EQUITYPRO ETF^†
Schedule of Investments

December 31, 2013 (Unaudited)

Investments	Shares		Value
EXCHANGE TRADED FUNDS — 97.8%
Equity Fund — 97.8%
iShares Global Consumer Discretionary ETF(a)		17,700	$	1,488,216
iShares Global Consumer Staples ETF		26,561		2,286,637
iShares Global Energy ETF		37,311		1,612,581
iShares Global Financials ETF		26,609		1,493,829
iShares Global Healthcare ETF		26,446		2,277,001
iShares Global Industrials ETF(a)		22,879		1,633,789
iShares Global Tech ETF(a)		17,700		1,474,235
iShares Global Telecomm ETF		22,579		1,542,394
iShares Global Materials ETF		26,678		1,662,840
iShares Global Utilities ETF		33,765		1,491,738
Total Exchange Traded Funds (Cost $16,610,334)				16,963,260
MONEY MARKET FUND — 2.7%
Wells Fargo Advantage Government Money Market Fund – Institutional Class, 0.01%(b) (Cost $471,740)		471,740		471,740
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 4.9%
BNY Mellon Securities Lending Overnight Fund, 0.09%(c) (Cost $855,075)		855,075		855,075
Total Investments — 105.4% (Cost $17,937,149)				18,290,075
Liabilities in Excess of Other Assets — (5.4)%				(935,008	)
Net Assets — 100.0%			$	17,355,067

ETF — Exchange Traded Fund

† Formerly known as, AdvisorShares Global Alpha & Beta ETF.

(a) All or a portion of security is on loan. The aggregate market value of the securities on loan is $837,234; the aggregate market value of the collateral held by the fund is $855,075.

(b) Rate shown reflects the 7-day yield as of December 31, 2013.

(c) Rate shown reflects the 1-day yield as of December 31, 2013.

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Equity Fund		97.8	%
Money Market Fund		7.6
Total Investments		105.4
Liabilities in Excess of Other Assets		(5.4	)
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

15

ADVISORSHARES
GLOBAL ECHO ETF
Schedule of Investments

December 31, 2013 (Unaudited)

Investments	Shares		Value
COMMON STOCKS — 54.0%
Auto Parts & Equipment — 2.7%
Johnson Controls, Inc.		2,449	$	125,634
Tenneco, Inc.*		636		35,978
Total Auto Parts & Equipment				161,612
Banks — 1.2%
City National Corp.		516		40,878
Tompkins Financial Corp.		609		31,296
Total Banks				72,174
Beverages — 0.4%
Reed’s, Inc.*(a)		2,780		22,184
Biotechnology — 3.0%
Illumina, Inc.*		530		58,628
Novozymes A/S (Denmark)(b)		2,842		120,103
Total Biotechnology				178,731
Building Materials — 2.1%
Apogee Enterprises, Inc.		1,761		63,238
Toto Ltd. (Japan)(b)		1,997		63,346
Total Building Materials				126,584
Commercial Services — 2.5%
Automatic Data Processing, Inc.		697		56,325
MasterCard, Inc., Class A		88		73,520
Where Food Comes From, Inc.*		11,070		22,140
Total Commercial Services				151,985
Computers — 4.3%
Apple, Inc.		178		99,877
EMC Corp.		1,749		43,987
Silver Spring Networks, Inc.*		1,646		34,566
Stratasys Ltd. (Israel)*		380		51,186

See accompanying Notes to Financial Statements.

16

ADVISORSHARES
GLOBAL ECHO ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Shares		Value
Computers — 4.3% (continued)
Teradata Corp.*		740	$	33,663
Total Computers				263,279
Cosmetics/Personal Care — 0.7%
Procter & Gamble Co. (The)		537		43,717
Distribution/Wholesale — 1.0%
LKQ Corp.*		1,859		61,161
Diversified Financial Services — 1.9%
Hannon Armstrong Sustainable Infrastructure Capital, Inc.(a)		2,420		33,783
MarketAxess Holdings, Inc.		350		23,405
Wageworks, Inc.*		955		56,765
Total Diversified Financial Services				113,953
Electronics — 1.0%
Itron, Inc.*		341		14,128
Thermo Fisher Scientific, Inc.		410		45,653
Total Electronics				59,781
Energy — Alternate Sources — 0.3%
Enphase Energy, Inc.*(a)		3,082		19,540
Environmental Control — 1.8%
Clean Harbors, Inc.*		530		31,779
Stericycle, Inc.*		409		47,514
Tomra Systems ASA (Norway)(b)		2,992		27,864
Total Environmental Control				107,157
Food — 2.9%
Boulder Brands, Inc.*		1,864		29,563
Nestle SA (Switzerland)(b)		331		24,358
SunOpta, Inc. (Canada)*		1,600		16,016

See accompanying Notes to Financial Statements.

17

ADVISORSHARES
GLOBAL ECHO ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Shares		Value
Food — 2.9% (continued)
United Natural Foods, Inc.*		1,437	$	108,336
Total Food				178,273
Healthcare – Products — 2.1%
Covidien PLC (Ireland)		615		41,881
Haemonetics Corp.*		390		16,431
Life Technologies Corp.*		929		70,418
Total Healthcare – Products				128,730
Healthcare – Services — 0.6%
Laboratory Corp. of America Holdings*		400		36,548
Home Builders — 0.7%
Daiwa House Industry Co. Ltd. (Japan)(b)		208		40,389
Internet — 3.2%
Amazon.com, Inc.*		150		59,819
eBay, Inc.*		679		37,270
F5 Networks, Inc.*		394		35,799
Google, Inc., Class A*		57		63,880
Total Internet				196,768
Machinery – Diversified — 2.6%
Rockwell Automation, Inc.		330		38,993
Tennant Co.		370		25,090
Xylem, Inc.		2,709		93,731
Total Machinery – Diversified				157,814
Miscellaneous Manufacturing — 1.2%
Aptargroup, Inc.		729		49,433
Pure Technologies Ltd. (Canada)*		3,741		23,157
Total Miscellaneous Manufacturing				72,590
Office Furnishings — 0.9%
Interface, Inc.		2,561		56,240

See accompanying Notes to Financial Statements.

18

ADVISORSHARES
GLOBAL ECHO ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Shares		Value
Pharmaceuticals — 4.2%
GlaxoSmithKline PLC (United Kingdom)(b)		1,071	$	57,181
Isis Pharmaceuticals, Inc.*		800		31,872
Novo Nordisk AG (Switzerland)(b)		799		64,224
Perrigo Co. PLC		336		51,562
Teva Pharmaceutical Industries Ltd. (Israel)(b)		1,253		50,220
Total Pharmaceuticals				255,059
Real Estate — 0.4%
Jones Lang LaSalle, Inc.		245		25,086
Real Estate Investment Trusts — 0.7%
Prologis, Inc.		1,117		41,273
Retail — 1.1%
CVS Caremark Corp.		939		67,204
Semiconductors — 1.9%
Cree, Inc.*		774		48,429
First Solar, Inc.*		467		25,517
NXP Semiconductor NV (Netherlands)*		849		38,995
Total Semiconductors				112,941
Software — 1.3%
Adobe Systems, Inc.*		849		50,838
Fiserv, Inc.*		470		27,754
Total Software				78,592
Telecommunications — 3.3%
Cisco Systems, Inc.		1,918		43,059
Corning, Inc.		1,793		31,951
IPG Photonics Corp.*(a)		522		40,512
Telenor ASA (Norway)(b)		457		32,708
Vodafone Group PLC (United Kingdom)(b)		1,267		49,806
Total Telecommunications				198,036

See accompanying Notes to Financial Statements.

19

ADVISORSHARES
GLOBAL ECHO ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Shares/ Principal		Value
Transportation — 2.2%
Canadian National Railway Co. (Canada)		1,358	$	77,433
Union Pacific Corp.		321		53,928
Total Transportation				131,361
Water — 1.8%
American Water Works Co., Inc.		982		41,500
Severn Trent PLC (United Kingdom)(a)(b)		2,442		68,974
Total Water				110,474
Total Common Stocks (Cost $2,541,542)				3,269,236
ASSET BACKED SECURITIES — 6.6%
SBA, 4.08%, 07/25/38@.		148,548		172,073
SBAP, Class 1, Series 2009-20H, 4.45%, 08/01/29		214,597		229,252
Total Asset Backed Securities (Cost $414,679)				401,325
COMMERCIAL MORTGAGE BACKED SECURITY — 4.2%
Government National Mortgage Association, Class AC, Series 2011 – 109, 3.25%, 04/16/43 (Cost $267,165)		250,000		258,350
MUNICIPAL BOND — 6.6%
New York State Housing Finance Agency, 0.10%, 05/15/34@ (Cost $400,000)		400,000		400,000
EXCHANGE TRADED FUNDS — 22.4%
Debt Fund — 10.2%
ProShares Short 20+ Year Treasury*		1,200		39,492
SPDR Barclays Capital 1–3 Month T-Bill ETF*		12,658		579,357
Total Debt Fund				618,849
Equity Fund — 12.2%
AdvisorShares Ranger Equity Bear ETF*†		1,300		16,588
First Trust ISE Global Wind Energy Index ETF(a)		1,900		21,565
Global X Lithium ETF		4,200		54,633
Guggenheim S&P Global Water Index ETF		1,800		49,770

See accompanying Notes to Financial Statements.

20

ADVISORSHARES
GLOBAL ECHO ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Shares		Value
Equity Fund — 12.2% (continued)
iShares MSCI KLD 400 Social ETF(a)		3,600	$	249,048
PowerShares Cleantech Portfolio(a)		1,900		60,363
PowerShares Global Clean Energy Portfolio		6,400		77,376
PowerShares Water Resources Portfolio		2,900		76,038
PowerShares Wilderhill Clean Energy Portfolio		4,400		28,116
ProShares Short MSCI Emerging Markets*(a)		300		7,890
ProShares Short Real Estate*(a)		3,600		95,580
Total Equity Fund				736,967
Total Exchange Traded Funds (Cost $1,285,035)				1,355,816
MONEY MARKET FUNDS — 6.3%
Federated Government Obligation Fund, Class IS, 0.01%(c)		19,619		19,619
Fidelity Institutional Money Market Government Portfolio – Class I, 0.01%(c)		184,330		184,330
Fidelity Institutional Money Market Portfolio – Institutional Class, 0.01%(c)		175,685		175,686
Total Money Market Funds (Cost $379,635)				379,635
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 5.4%
BNY Mellon Securities Lending Overnight Fund, 0.09%(d) (Cost $327,399)		327,399		327,399
Total Investments — 105.5% (Cost $5,615,455)				6,391,761
Liabilities in Excess of Other Assets — (5.5%)				(335,853	)
Net Assets — 100.0%			$	6,055,908

ETF — Exchange Traded Fund

PLC — Public Limited Company

* Non-income producing security

@ Variable rate instrument. The interest rate shown reflects the rate in effect at December 31, 2013.

† Affiliated Company

(a) All or a portion of security is on loan. The aggregate market value of the securities on loan is $318,158; the aggregate market value of the collateral held by the fund is $327,399.

(b) American Depositary Receipt

(c) Rate shown reflects the 7-day yield as of December 31, 2013.

(d) Rate shown reflects the 1-day yield as of December 31, 2013.

See accompanying Notes to Financial Statements.

21

ADVISORSHARES
GLOBAL ECHO ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Asset Backed Securities		6.6	%
Auto Parts & Equipment		2.7
Banks		1.2
Beverages		0.4
Biotechnology		3.0
Building Materials		2.1
Commercial Mortgage Backed Security		4.2
Commercial Services		2.5
Computers		4.3
Cosmetics/Personal Care		0.7
Debt Fund		10.2
Distribution/Wholesale		1.0
Diversified Financial Services		1.9
Electronics		1.0
Energy – Alternate Sources		0.3
Environmental Control		1.8
Equity Fund		12.2
Food		2.9
Healthcare – Products		2.1
Healthcare – Services		0.6
Home Builders		0.7
Internet		3.2
Machinery – Diversified		2.6
Miscellaneous Manufacturing		1.2
Money Market Fund		11.7
Municipal Bond		6.6
Office Furnishings		0.9
Pharmaceuticals		4.2
Real Estate		0.4
Real Estate Investment Trusts		0.7
Retail		1.1
Semiconductors		1.9
Software		1.3
Telecommunications		3.3
Transportation		2.2
Water		1.8
Total Investments		105.5
Liabilities in Excess of Other Assets		(5.5	)
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

22

ADVISORSHARES
MADRONA DOMESTIC ETF
Schedule of Investments

December 31, 2013 (Unaudited)

Investments	Shares		Value
COMMON STOCKS — 99.0%
Advertising — 0.5%
Interpublic Group of Cos., Inc. (The)		4,044	$	71,579
Omnicom Group, Inc.		434		32,276
Total Advertising				103,855
Aerospace/Defense — 1.4%
Boeing Co. (The)		466		63,604
General Dynamics Corp.		273		26,085
L-3 Communications Holdings, Inc.		134		14,319
Lockheed Martin Corp.		212		31,516
Northrop Grumman Corp.		296		33,925
Raytheon Co.		705		63,943
Rockwell Collins, Inc.		340		25,133
United Technologies Corp.		517		58,835
Total Aerospace/Defense				317,360
Agriculture — 1.0%
Altria Group, Inc.		874		33,553
Archer-Daniels-Midland Co.		1,470		63,798
Lorillard, Inc.		1,228		62,235
Philip Morris International, Inc.		438		38,163
Reynolds American, Inc.		563		28,144
Total Agriculture				225,893
Airlines — 0.8%
Delta Air Lines, Inc.		3,332		91,530
Southwest Airlines Co.		5,083		95,764
Total Airlines				187,294
Apparel — 0.7%
NIKE, Inc., Class B		482		37,904
Ralph Lauren Corp.		377		66,567
VF Corp.		976		60,844
Total Apparel				165,315
Auto Manufacturers — 0.9%
Ford Motor Co.		4,419		68,185
General Motors Co.*		2,267		92,652
PACCAR, Inc.		697		41,242
Total Auto Manufacturers				202,079

See accompanying Notes to Financial Statements.

23

ADVISORSHARES
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Shares		Value
Auto Parts & Equipment — 1.2%
BorgWarner, Inc.		1,422	$	79,504
Goodyear Tire & Rubber Co. (The)		3,774		90,010
Johnson Controls, Inc.		1,759		90,237
Total Auto Parts & Equipment				259,751
Banks — 4.1%
Bank of America Corp.		2,267		35,297
Bank of New York Mellon Corp. (The)		1,806		63,102
BB&T Corp.		906		33,812
Capital One Financial Corp.		751		57,534
Citigroup, Inc.		1,459		76,029
Comerica, Inc.		452		21,488
Fifth Third Bancorp		2,136		44,920
Goldman Sachs Group, Inc. (The)		247		43,783
Huntington Bancshares, Inc.		2,853		27,531
JPMorgan Chase & Co.		728		42,573
KeyCorp		1,258		16,882
M&T Bank Corp.		541		62,983
Morgan Stanley		1,891		59,302
Northern Trust Corp.		849		52,545
PNC Financial Services Group, Inc.		491		38,092
Regions Financial Corp.		2,786		27,554
State Street Corp.		876		64,290
SunTrust Banks, Inc.		805		29,632
US Bancorp		665		26,866
Wells Fargo & Co.		1,163		52,800
Zions Bancorporation		724		21,691
Total Banks				898,706
Beverages — 1.3%
Beam, Inc.		289		19,669
Brown-Forman Corp., Class B		360		27,205
Coca-Cola Co. (The)		530		21,894
Coca-Cola Enterprises, Inc.		1,028		45,366
Constellation Brands, Inc., Class A*		942		66,298
Dr Pepper Snapple Group, Inc.		657		32,009
Molson Coors Brewing Co., Class B		345		19,372
Monster Beverage Corp.*		563		38,155
PepsiCo, Inc.		267		22,145
Total Beverages				292,113

See accompanying Notes to Financial Statements.

24

ADVISORSHARES
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Shares		Value
Biotechnology — 1.6%
Alexion Pharmaceuticals, Inc.*		467	$	62,139
Amgen, Inc.		334		38,129
Biogen Idec, Inc.*		220		61,545
Celgene Corp.*		434		73,329
Gilead Sciences, Inc.*		1,023		76,879
Regeneron Pharmaceuticals, Inc.*		130		35,781
Total Biotechnology				347,802
Building Materials — 0.4%
Masco Corp.		3,926		89,395
Chemicals — 2.6%
Air Products & Chemicals, Inc.		285		31,857
Airgas, Inc.		315		35,233
CF Industries Holdings, Inc.		343		79,933
Dow Chemical Co. (The)		895		39,738
E.I. du Pont de Nemours & Co.		518		33,654
Eastman Chemical Co.		647		52,213
Ecolab, Inc.		313		32,636
FMC Corp.		619		46,710
International Flavors & Fragrances, Inc.		297		25,536
Monsanto Co.		512		59,674
Mosaic Co. (The)		313		14,796
PPG Industries, Inc.		133		25,225
Praxair, Inc.		283		36,798
Sherwin-Williams Co. (The)		253		46,425
Sigma-Aldrich Corp.		187		17,580
Total Chemicals				578,008
Coal — 0.1%
CONSOL Energy, Inc.		391		14,874
Peabody Energy Corp.		402		7,851
Total Coal				22,725
Commercial Services — 2.9%
ADT Corp. (The)		736		29,786
Automatic Data Processing, Inc.		266		21,495
Cintas Corp.		623		37,125
Equifax, Inc.		792		54,719
H&R Block, Inc.		2,442		70,916
Iron Mountain, Inc.		1,092		33,142
MasterCard, Inc., Class A		73		60,989
McGraw Hill Financial Inc. (The)		956		74,759
Moody’s Corp.		626		49,122

See accompanying Notes to Financial Statements.

25

ADVISORSHARES
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Shares		Value
Commercial Services — 2.9% (continued)
Quanta Services, Inc.*		1,526	$	48,161
Robert Half International, Inc.		1,303		54,713
Total System Services, Inc.		1,726		57,441
Western Union Co. (The)		2,745		47,351
Total Commercial Services				639,719
Computers — 2.9%
Apple, Inc.		145		81,361
Cognizant Technology Solutions Corp., Class A*		817		82,501
Computer Sciences Corp.		1,513		84,546
EMC Corp.		3,004		75,551
International Business Machines Corp.		431		80,843
NetApp, Inc.		1,737		71,460
SanDisk Corp.		1,188		83,801
Teradata Corp.*		1,712		77,879
Western Digital Corp.		116		9,732
Total Computers				647,674
Cosmetics/Personal Care — 0.6%
Avon Products, Inc.		3,167		54,536
Colgate-Palmolive Co.		296		19,302
Estee Lauder Cos., Inc. (The), Class A		376		28,320
Procter & Gamble Co. (The)		329		26,784
Total Cosmetics/Personal Care				128,942
Distribution/Wholesale — 0.8%
Fastenal Co.		767		36,440
Fossil Group, Inc.*		567		68,006
Genuine Parts Co.		370		30,780
W.W. Grainger, Inc.		181		46,231
Total Distribution/Wholesale				181,457
Diversified Financial Services — 4.6%
American Express Co.		661		59,973
Ameriprise Financial, Inc.		770		88,588
BlackRock, Inc.		182		57,598
Charles Schwab Corp. (The)		1,768		45,968
CME Group, Inc.		322		25,264
Discover Financial Services		1,329		74,358
E*TRADE Financial Corp.*		3,903		76,655
Franklin Resources, Inc.		1,215		70,142
IntercontinentalExchange Group, Inc.		338		76,023

See accompanying Notes to Financial Statements.

26

ADVISORSHARES
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Shares		Value
Diversified Financial Services — 4.6% (continued)
Invesco Ltd.		2,260	$	82,264
Legg Mason, Inc.		2,130		92,612
NASDAQ OMX Group, Inc. (The)		2,000		79,600
SLM Corp.		2,704		71,061
T. Rowe Price Group, Inc.		598		50,094
Visa, Inc., Class A		302		67,249
Total Diversified Financial Services				1,017,449
Electric — 1.4%
AES Corp. (The)		2,648		38,422
Ameren Corp.		335		12,114
American Electric Power Co., Inc.		286		13,368
CMS Energy Corp.		639		17,106
Consolidated Edison, Inc.		184		10,171
Dominion Resources, Inc.		241		15,590
DTE Energy Co.		224		14,871
Duke Energy Corp.		161		11,111
Edison International		370		17,131
Integrys Energy Group, Inc.		226		12,297
NextEra Energy, Inc.		201		17,210
Northeast Utilities		543		23,018
Pepco Holdings, Inc.		660		12,626
PG&E Corp.		221		8,902
Pinnacle West Capital Corp.		236		12,489
Public Service Enterprise Group, Inc.		235		7,529
SCANA Corp.		334		15,675
Southern Co. (The)		332		13,648
TECO Energy, Inc.(a)		650		11,206
Wisconsin Energy Corp.		324		13,394
Xcel Energy, Inc.		537		15,004
Total Electric				312,882
Electrical Components & Equipment — 0.4%
AMETEK, Inc.		1,016		53,513
Emerson Electric Co.		605		42,459
Total Electrical Components & Equipment				95,972
Electronics — 1.6%
Agilent Technologies, Inc.		651		37,231
Amphenol Corp., Class A		445		39,685
FLIR Systems, Inc.		1,322		39,792
Honeywell International, Inc.		599		54,731
Jabil Circuit, Inc.		3,548		61,877

See accompanying Notes to Financial Statements.

27

ADVISORSHARES
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Shares		Value
Electronics — 1.6% (continued)
PerkinElmer, Inc.		1,311	$	54,052
Thermo Fisher Scientific, Inc.		325		36,189
Waters Corp.*		260		26,000
Total Electronics				349,557
Engineering & Construction — 0.6%
Fluor Corp.		717		57,568
Jacobs Engineering Group, Inc.*		1,087		68,470
Total Engineering & Construction				126,038
Entertainment — 0.3%
International Game Technology		3,862		70,134
Environmental Control — 0.3%
Republic Services, Inc.		301		9,993
Stericycle, Inc.*		261		30,320
Waste Management, Inc.		804		36,076
Total Environmental Control				76,389
Food — 2.3%
Campbell Soup Co.		390		16,879
ConAgra Foods, Inc.		1,591		53,617
General Mills, Inc.		450		22,459
Hershey Co. (The)		220		21,391
Hormel Foods Corp.		785		35,458
JM Smucker Co. (The)		256		26,527
Kellogg Co.		412		25,161
Kraft Foods Group, Inc.		358		19,303
Kroger Co. (The)		1,092		43,167
McCormick & Co., Inc.		307		21,158
Mondelez International, Inc., Class A		1,242		43,843
Safeway, Inc.		1,380		44,947
Sysco Corp.		780		28,158
Tyson Foods, Inc., Class A		2,229		74,582
Whole Foods Market, Inc.		417		24,115
Total Food				500,765
Forest Products & Paper — 0.5%
International Paper Co.		1,811		88,793
MeadWestvaco Corp.		680		25,113
Total Forest Products & Paper				113,906

See accompanying Notes to Financial Statements.

28

ADVISORSHARES
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Shares		Value
Gas — 0.2%
AGL Resources, Inc.		262	$	12,374
CenterPoint Energy, Inc.		480		11,126
NiSource, Inc.		529		17,394
Sempra Energy		147		13,195
Total Gas				54,089
Hand/Machine Tools — 0.4%
Snap-On, Inc.		444		48,627
Stanley Black & Decker, Inc.		379		30,581
Total Hand/Machine Tools				79,208
Healthcare – Products — 2.6%
Baxter International, Inc.		601		41,800
Becton Dickinson and Co.		248		27,401
Boston Scientific Corp.*		1,438		17,285
C.R. Bard, Inc.		255		34,155
CareFusion Corp.*		1,246		49,616
DENTSPLY International, Inc.		909		44,068
Edwards Lifesciences Corp.*		593		38,996
Hospira, Inc.*		800		33,024
Intuitive Surgical, Inc.*		84		32,263
Life Technologies Corp.*		475		36,005
Medtronic, Inc.		406		23,300
Patterson Cos., Inc.		808		33,290
St. Jude Medical, Inc.		755		46,772
Stryker Corp.		418		31,408
Varian Medical Systems, Inc.*		562		43,662
Zimmer Holdings, Inc.		464		43,240
Total Healthcare – Products				576,285
Healthcare – Services — 2.9%
Aetna, Inc.		1,247		85,532
Cigna Corp.		1,022		89,405
DaVita HealthCare Partners Inc.*		1,043		66,095
Humana, Inc.		787		81,234
Laboratory Corp. of America Holdings*		622		56,832
Quest Diagnostics, Inc.		1,023		54,771
Tenet Healthcare Corp*.		761		32,053
UnitedHealth Group, Inc.		1,156		87,047
WellPoint, Inc.		840		77,608
Total Healthcare – Services				630,577

See accompanying Notes to Financial Statements.

29

ADVISORSHARES
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Shares		Value
Home Builders — 1.0%
D.R. Horton, Inc.*		4,210	$	93,967
Lennar Corp., Class A		393		15,547
PulteGroup, Inc.		5,013		102,115
Total Home Builders				211,629
Home Furnishings — 0.8%
Harman International Industries, Inc.		1,024		83,815
Whirlpool Corp.		627		98,351
Total Home Furnishings				182,166
Household Products/Wares — 0.4%
Avery Dennison Corp.		785		39,399
Clorox Co. (The)		229		21,242
Kimberly-Clark Corp.		201		20,997
Total Household Products/Wares				81,638
Housewares — 0.2%
Newell Rubbermaid, Inc.		1,326		42,976
Insurance — 5.2%
Aflac, Inc.		855		57,114
Allstate Corp. (The)		1,251		68,229
American International Group, Inc.		1,316		67,182
Assurant, Inc.		948		62,919
Berkshire Hathaway, Inc., Class B*		278		32,960
Chubb Corp. (The)		669		64,645
Genworth Financial, Inc., Class A*		5,790		89,919
Hartford Financial Services Group, Inc. (The)		2,152		77,967
Lincoln National Corp.		1,627		83,986
Marsh & McLennan Cos., Inc.		919		44,443
MetLife, Inc.		1,601		86,326
Principal Financial Group, Inc.		1,655		81,608
Progressive Corp. (The)		1,368		37,305
Prudential Financial, Inc.		974		89,822
Torchmark Corp.		719		56,190
Travelers Cos., Inc. (The)		729		66,004
Unum Group		1,989		69,774
Total Insurance				1,136,393
Internet — 2.6%
Amazon.com, Inc.*		29		11,565
eBay, Inc.*		1,232		67,624
Expedia, Inc.		1,292		90,001
F5 Networks, Inc.*		659		59,877

See accompanying Notes to Financial Statements.

30

ADVISORSHARES
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Shares		Value
Internet — 2.6% (continued)
Google, Inc., Class A*		62	$	69,484
Netflix, Inc.*		33		12,150
priceline.com, Inc.*		64		74,394
Symantec Corp.		1,911		45,061
TripAdvisor, Inc.*		411		34,043
VeriSign, Inc.*		776		46,389
Yahoo! Inc.*		1,362		55,079
Total Internet				565,667
Iron/Steel — 0.3%
Cliffs Natural Resources, Inc.(a)		669		17,535
Nucor Corp.		1,003		53,540
Total Iron/Steel				71,075
Leisure Time — 0.5%
Carnival Corp. (Panama)		1,049		42,138
Harley-Davidson, Inc.		828		57,331
Total Leisure Time				99,469
Lodging — 0.7%
Marriott International, Inc., Class A		1,209		59,676
Starwood Hotels & Resorts Worldwide, Inc.		291		23,120
Wynn Resorts Ltd.		345		67,003
Total Lodging				149,799
Machinery – Construction & Mining — 0.4%
Caterpillar, Inc.		187		16,981
Joy Global, Inc.(a)		1,222		71,475
Total Machinery – Construction & Mining				88,456
Machinery – Diversified — 1.4%
Cummins, Inc.		347		48,917
Deere & Co.		731		66,762
Flowserve Corp.		903		71,183
Rockwell Automation, Inc.		329		38,875
Roper Industries, Inc.		340		47,151
Xylem, Inc.		910		31,486
Total Machinery – Diversified				304,374
Media — 3.1%
Cablevision Systems Corp., Class A		700		12,551
CBS Corp., Class B		932		59,406
Comcast Corp., Class A		1,217		63,241

See accompanying Notes to Financial Statements.

31

ADVISORSHARES
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Shares		Value
Media — 3.1% (continued)
DIRECTV*		1,285	$	88,781
Discovery Communications, Inc., Class A*		736		66,549
Gannett Co., Inc.		813		24,048
Scripps Networks Interactive, Inc., Class A		594		51,328
Time Warner Cable, Inc.		498		67,479
Time Warner, Inc.		750		52,290
Twenty-First Century Fox, Inc., Class A		1,852		65,153
Viacom, Inc., Class B		729		63,671
Walt Disney Co. (The)		779		59,516
Total Media				674,013
Metal Fabricate/Hardware — 0.3%
Precision Castparts Corp.		249		67,056
Mining — 0.6%
Alcoa, Inc.		8,796		93,502
Freeport-McMoRan Copper & Gold, Inc.		1,229		46,382
Total Mining				139,884
Miscellaneous Manufacturing — 2.0%
3M Co.		348		48,807
Danaher Corp.		627		48,405
Dover Corp.		712		68,737
General Electric Co.		1,812		50,790
Illinois Tool Works, Inc.		316		26,569
Leggett & Platt, Inc.		2,194		67,882
Pall Corp.		361		30,811
Parker Hannifin Corp.		206		26,500
Textron, Inc.		1,777		65,323
Total Miscellaneous Manufacturing				433,824
Office/Business Equipment — 0.6%
Pitney Bowes, Inc.		2,569		59,858
Xerox Corp.		5,927		72,131
Total Office/Business Equipment				131,989
Oil & Gas — 6.0%
Anadarko Petroleum Corp.		121		9,598
Cabot Oil & Gas Corp.		1,576		61,086
Chesapeake Energy Corp.		2,891		78,462

See accompanying Notes to Financial Statements.

32

ADVISORSHARES
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Shares		Value
Oil & Gas — 6.0% (continued)
Chevron Corp.		150	$	18,736
ConocoPhillips		258		18,228
Denbury Resources, Inc.*		4,323		71,027
Diamond Offshore Drilling, Inc.		1,257		71,548
EOG Resources, Inc.		278		46,659
EQT Corp.		754		67,694
Exxon Mobil Corp.		884		89,461
Helmerich & Payne, Inc.		95		7,987
Hess Corp.		168		13,944
Marathon Oil Corp.		2,148		75,824
Marathon Petroleum Corp.		981		89,987
Murphy Oil Corp.		1,036		67,216
Newfield Exploration Co.*		1,171		28,842
Noble Energy, Inc.		824		56,123
Occidental Petroleum Corp.		591		56,204
Phillips 66		959		73,968
Pioneer Natural Resources Co.		98		18,039
QEP Resources, Inc.		1,025		31,416
Range Resources Corp.		212		17,874
Rowan Cos. PLC, Class A*		2,187		77,332
Southwestern Energy Co.*(a)		660		25,958
Tesoro Corp.		1,676		98,046
Valero Energy Corp.		1,132		57,053
Total Oil & Gas				1,328,312
Oil & Gas Services — 1.9%
Baker Hughes, Inc.		1,412		78,027
Cameron International Corp.*		1,230		73,222
FMC Technologies, Inc.*		1,173		61,242
Halliburton Co.		1,591		80,743
National Oilwell Varco, Inc.		660		52,490
Schlumberger Ltd.		818		73,710
Total Oil & Gas Services				419,434
Packaging & Containers — 0.9%
Ball Corp.		1,084		56,000
Bemis Co., Inc.		589		24,125
Owens-Illinois, Inc.*		2,232		79,861

See accompanying Notes to Financial Statements.

33

ADVISORSHARES
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Shares		Value
Packaging & Containers — 0.9% (continued)
Sealed Air Corp.		1,362	$	46,376
Total Packaging & Containers				206,362
Pharmaceuticals — 3.7%
Abbott Laboratories		1,289		49,407
AbbVie, Inc.		290		15,315
Actavis PLC*		544		91,392
Allergan, Inc.		539		59,872
AmerisourceBergen Corp.		870		61,170
Bristol-Myers Squibb Co.		294		15,626
Cardinal Health, Inc.		760		50,776
Express Scripts Holding Co.*		1,223		85,904
Forest Laboratories, Inc.*		1,177		70,655
Johnson & Johnson		205		18,776
McKesson Corp.		463		74,728
Mead Johnson Nutrition Co.		264		22,113
Merck & Co., Inc.		247		12,362
Mylan, Inc.*		1,550		67,270
Perrigo Co. PLC		380		58,315
Pfizer, Inc.		469		14,365
Zoetis, Inc.		1,402		45,831
Total Pharmaceuticals				813,877
Pipelines — 0.6%
Kinder Morgan, Inc.		2,139		77,004
ONEOK, Inc.		494		30,717
Spectra Energy Corp.		348		12,396
Williams Cos., Inc. (The)		478		18,436
Total Pipelines				138,553
Real Estate — 0.3%
CBRE Group, Inc., Class A*		2,848		74,902

See accompanying Notes to Financial Statements.

34

ADVISORSHARES
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Shares		Value
Real Estate Investment Trust — 0.6%
American Tower Corp.		368	$	29,374
Apartment Investment & Management Co., Class A		260		6,737
AvalonBay Communities, Inc.		60		7,094
HCP, Inc.		231		8,390
Host Hotels & Resorts, Inc.		1,212		23,561
Kimco Realty Corp.		404		7,979
Plum Creek Timber Co., Inc.		183		8,511
Public Storage		62		9,332
Simon Property Group, Inc.		61		9,282
Ventas, Inc.		124		7,103
Vornado Realty Trust		107		9,500
Weyerhaeuser Co.		342		10,797
Total Real Estate Investment Trust				137,660
Retail — 9.3%
Abercrombie & Fitch Co., Class A		2,248		73,982
AutoNation, Inc.*		1,576		78,311
AutoZone, Inc.*		170		81,250
Bed Bath & Beyond, Inc.*		889		71,387
Best Buy Co., Inc.		824		32,861
CarMax, Inc.*		910		42,788
Chipotle Mexican Grill, Inc.*		55		29,303
Coach, Inc.		1,189		66,739
Costco Wholesale Corp.		254		30,228
CVS Caremark Corp.		1,104		79,013
Darden Restaurants, Inc.		416		22,618
Dollar General Corp.*		1,150		69,368
Dollar Tree, Inc.*		1,123		63,360
Family Dollar Stores, Inc.		601		39,047
GameStop Corp., Class A		1,314		64,728
Gap, Inc. (The)		1,950		76,206
Home Depot, Inc. (The)		941		77,482
Kohl’s Corp.		1,165		66,114
L Brands, Inc.		708		43,790
Lowe’s Cos., Inc.		1,438		71,253
Macy’s, Inc.		1,764		94,198
McDonald’s Corp.		351		34,057
Nordstrom, Inc.		962		59,452
O’Reilly Automotive, Inc.*		442		56,890
PetSmart, Inc.		915		66,566

See accompanying Notes to Financial Statements.

35

ADVISORSHARES
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Shares		Value
Retail — 9.3% (continued)
PVH Corp.		491	$	66,786
Ross Stores, Inc.		684		51,252
Staples, Inc.		1,258		19,990
Starbucks Corp.		511		40,057
Target Corp.		860		54,412
Tiffany & Co.		619		57,431
TJX Cos., Inc. (The)		754		48,052
Urban Outfitters, Inc.*		1,931		71,640
Walgreen Co.		993		57,038
Wal-Mart Stores, Inc.		592		46,584
Yum! Brands, Inc.		533		40,300
Total Retail				2,044,533
Savings & Loans — 0.2%
People’s United Financial, Inc.		2,345		35,456
Semiconductors — 5.0%
Altera Corp.		597		19,420
Analog Devices, Inc.		913		46,499
Applied Materials, Inc.		4,500		79,605
Broadcom Corp., Class A		2,814		83,435
First Solar, Inc.*		1,396		76,278
Intel Corp.		2,757		71,572
KLA-Tencor Corp.		1,068		68,843
Lam Research Corp.*		1,498		81,566
Linear Technology Corp.		891		40,585
LSI Corp.		8,378		92,326
Microchip Technology, Inc.(a)		948		42,423
Micron Technology, Inc.*		4,774		103,882
NVIDIA Corp.		2,775		44,456
QUALCOMM, Inc.		1,084		80,487
Teradyne, Inc.*		4,377		77,123
Texas Instruments, Inc.		997		43,778
Xilinx, Inc.		971		44,588
Total Semiconductors				1,096,866
Software — 3.7%
Adobe Systems, Inc.*		321		19,221
Akamai Technologies, Inc.*		651		30,714

See accompanying Notes to Financial Statements.

36

ADVISORSHARES
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Shares		Value
Software — 3.7% (continued)
Autodesk, Inc.*		964	$	48,518
CA, Inc.		2,416		81,298
Cerner Corp.*		420		23,411
Citrix Systems, Inc.*		1,099		69,512
Dun & Bradstreet Corp. (The)		514		63,093
Electronic Arts, Inc.*		2,838		65,104
Fidelity National Information Services, Inc.		1,228		65,919
Fiserv, Inc.*		972		57,397
Intuit, Inc.		705		53,806
Microsoft Corp.		1,164		43,568
Oracle Corp.		2,162		82,718
Paychex, Inc.		507		23,084
Red Hat, Inc.*		1,215		68,089
Salesforce.com, Inc.*		184		10,155
Total Software				805,607
Telecommunications — 2.1%
AT&T, Inc.		659		23,170
CenturyLink, Inc.		263		8,377
Cisco Systems, Inc.		2,978		66,856
Corning, Inc.		5,042		89,848
Crown Castle International Corp.*		240		17,623
Frontier Communications Corp.(a)		12,658		58,860
Harris Corp.		155		10,821
JDS Uniphase Corp.*		3,915		50,817
Juniper Networks, Inc.*		3,399		76,715
Motorola Solutions, Inc.		432		29,160
Verizon Communications, Inc.		724		35,577
Total Telecommunications				467,824
Toys/Games/Hobbies — 0.3%
Hasbro, Inc.		585		32,181
Mattel, Inc.		868		41,299
Total Toys/Games/Hobbies				73,480

See accompanying Notes to Financial Statements.

37

ADVISORSHARES
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Shares		Value
Transportation — 2.4%
C.H. Robinson Worldwide, Inc.		671	$	39,146
CSX Corp.		2,249		64,704
Expeditors International of Washington, Inc.		439		19,426
FedEx Corp.		463		66,565
Kansas City Southern		412		51,018
Norfolk Southern Corp.		812		75,378
Ryder System, Inc.		1,128		83,224
Union Pacific Corp.		477		80,136
United Parcel Service, Inc., Class B		418		43,923
Total Transportation				523,520
Total Common Stocks (Cost $16,474,305)				21,838,133
MONEY MARKET FUND — 1.0%
Fidelity Institutional Prime Money Market Portfolio – Class I, 0.01%(b) (Cost $219,998)		219,998		219,998
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 0.9%
BNY Mellon Securities Lending Overnight Fund, 0.09%(c) (Cost $189,656)		189,656		189,656
Total Investments — 100.9% (Cost $16,883,959)				22,247,787
Liabilities in Excess of Other Assets — (0.9)%				(201,104	)
Net Assets — 100.0%			$	22,046,683

* Non-income producing security

(a) All or a portion of security is on loan. The aggregate market value of the securities on loan is $207,667; the aggregate market value of the collateral held by the fund is $214,749. The aggregate market value of the collateral includes non-cash U.S. Treasury securities collateral having a value of $25,093.

(b) Rate shown reflects the 7-day yield as of December 31, 2013.

(c) Rate shown reflects the 1-day yield as of December 31, 2013.

See accompanying Notes to Financial Statements.

38

ADVISORSHARES
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Advertising		0.5	%
Aerospace/Defense		1.4
Agriculture		1.0
Airlines		0.8
Apparel		0.7
Auto Manufacturers		0.9
Auto Parts & Equipment		1.2
Banks		4.1
Beverages		1.3
Biotechnology		1.6
Building Materials		0.4
Chemicals		2.6
Coal		0.1
Commercial Services		2.9
Computers		2.9
Cosmetics/Personal Care		0.6
Distribution/Wholesale		0.8
Diversified Financial Services		4.6
Electric		1.4
Electrical Components & Equipment		0.4
Electronics		1.6
Engineering & Construction		0.6
Entertainment		0.3
Environmental Control		0.3
Food		2.3
Forest Products & Paper		0.5
Gas		0.2
Hand/Machine Tools		0.4
Healthcare – Products		2.6
Healthcare – Services		2.9
Home Builders		1.0
Home Furnishings		0.8
Household Products/Wares		0.4
Housewares		0.2
Insurance		5.2
Internet		2.6
Iron/Steel		0.3
Leisure Time		0.5
Lodging		0.7
Machinery – Construction & Mining		0.4
Machinery – Diversified		1.4
Media		3.1

See accompanying Notes to Financial Statements.

39

ADVISORSHARES
MADRONA DOMESTIC ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

SUMMARY OF SCHEDULE OF INVESTMENTS (continued)

	% of Net Assets
Metal Fabricate/Hardware		0.3	%
Mining		0.6
Miscellaneous Manufacturing		2.0
Office/Business Equipment		0.6
Oil & Gas		6.0
Oil & Gas Services		1.9
Packaging & Containers		0.9
Pharmaceuticals		3.7
Pipelines		0.6
Real Estate		0.3
Real Estate Investment Trust		0.6
Retail		9.3
Savings & Loans		0.2
Semiconductors		5.0
Software		3.7
Telecommunications		2.1
Toys/Games/Hobbies		0.3
Transportation		2.4
Money Market Fund		1.9
Total Investments		100.9
Liabilities in Excess of Other Assets		(0.9	)
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

40

ADVISORSHARES
MADRONA GLOBAL BOND ETF
Schedule of Investments

December 31, 2013 (Unaudited)

Investments	Shares			Value
EXCHANGE TRADED FUNDS — 99.3%
Debt Fund — 99.3%
AdvisorShares Peritus High Yield ETF†(a)		50,844		$	2,629,652
iShares iBoxx $ Investment Grade Corporate Bond ETF(a)		19,174			2,189,863
iShares International Treasury Bond ETF		6,481			650,498
PIMCO 1–5 Year U.S. TIPS Index ETF(a)		12,396			654,757
PIMCO Canada Bond Index ETF		4,667			432,258
PowerShares Build America Bond Portfolio		40,009			1,092,246
PowerShares Emerging Markets Sovereign Debt Portfolio(a)		63,174			1,705,698
PowerShares Financial Preferred Portfolio(a)		90,043			1,525,328
PowerShares Insured National Municipal Bond Portfolio		57,849			1,328,213
PowerShares International Corporate Bond Portfolio(a)		45,012			1,328,304
PowerShares Senior Loan Portfolio(a)		80,280			1,997,366
SPDR Barclays Convertible Securities ETF		19,233	��		898,758
SPDR DB International Government Inflation-Protected Bond ETF		10,937			639,268
Vanguard Intermediate-Term Government Bond ETF(a)		10,326			647,853
Vanguard Long-Term Government Bond ETF(a)		9,842			629,396
Vanguard Mortgage-Backed Securities ETF		29,791			1,521,724
Vanguard Short-Term Bond ETF		8,195			655,026
WisdomTree Emerging Markets Corporate Bond Fund		17,421			1,292,638
Total Exchange Traded Funds (Cost $22,124,510)					21,818,846
MONEY MARKET FUND — 0.7%
Fidelity Institutional Prime Money Market Portfolio – Class I, 0.01%(b) (Cost $166,221)		166,221			166,221
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 30.5%
BNY Mellon Securities Lending Overnight Fund, 0.09%(c) (Cost $6,707,087)		6,707,087			6,707,087
Total Investments — 130.5% (Cost $28,997,818)					28,692,154
Liabilities in Excess of Other Assets — (30.5)%					(6,713,735	)
Net Assets — 100.0%				$	21,978,419

ETF — Exchange Traded Fund

TIPS — Treasury Inflation Protected Securities

† Affiliated Company

(a) All or a portion of security is on loan. The aggregate market value of the securities on loan is $6,545,589; the aggregate market value of the collateral held by the fund is $6,707,087.

(b) Rate shown reflects the 7-day yield as of December 31, 2013.

(c) Rate shown reflects the 1-day yield as of December 31, 2013.

See accompanying Notes to Financial Statements.

41

ADVISORSHARES
MADRONA GLOBAL BOND ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Debt Fund		99.3	%
Money Market Fund		31.2
Total Investments		130.5
Liabilities in Excess of Other Assets		(30.5	)
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

42

ADVISORSHARES
MADRONA INTERNATIONAL ETF
Schedule of Investments

December 31, 2013 (Unaudited)

Investments	Shares		Value
COMMON STOCKS — 100.2%
Advertising — 0.8%
Publicis Groupe SA (France)(a)		3,267	$	75,043
WPP PLC (United Kingdom)(a)		676		77,645
Total Advertising				152,688
Aerospace/Defense — 2.4%
BAE Systems PLC (United Kingdom)(a)		575		16,842
Embraer SA (Brazil)(a)		2,234		71,890
European Aeronautic Defence and Space Co. NV (Netherlands)(a)		7,322		140,216
Finmeccanica SpA (Italy)*(a)		32,027		120,742
Rolls-Royce Holdings PLC (United Kingdom)*(a)		932		98,820
Total Aerospace/Defense				448,510
Agriculture — 0.6%
British American Tobacco PLC (United Kingdom)(a)		504		54,140
Imperial Tobacco Group PLC (United Kingdom)(a)		831		64,635
Total Agriculture				118,775
Airlines — 0.3%
Ryanair Holdings PLC (Ireland)*(a)		1,308		61,384
Apparel — 0.8%
Adidas AG (Germany)(a)		1,645		105,659
LVMH Moet Hennessy Louis Vuitton SA (France)(a)		1,049		38,393
Total Apparel				144,052
Auto Manufacturers — 4.1%
Bayerische Motoren Werke AG (Germany)(a)		681		26,852
Daimler AG (Germany)(a)		369		32,228
Fiat SpA (Italy)*(a)		14,476		120,151
Honda Motor Co. Ltd. (Japan)(a)		3,176		131,328
Nissan Motor Co. Ltd. (Japan)(a)(b)		6,195		104,076
Tata Motors Ltd. (India)(a)		3,640		112,112
Toyota Motor Corp. (Japan)(a)		993		121,066
Volvo AB (Sweden)(a)(b)		7,579		99,565
Total Auto Manufacturers				747,378
Auto Parts & Equipment — 0.3%
Cie Generale des Etablissements Michelin (France)(a)		1,596		34,075
Nokian Renkaat OYJ (Finland)(a)		742		17,793
Total Auto Parts & Equipment				51,868

See accompanying Notes to Financial Statements.

43

ADVISORSHARES
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Shares		Value
Banks — 10.4%
Australia & New Zealand Banking Group Ltd. (Australia)(a)(b)		1,097	$	31,648
Banco Bilbao Vizcaya Argentaria SA (Spain)(a)		9,784		121,224
Banco Bradesco SA (Brazil)(a)		2,103		26,351
Banco Santander SA (Spain)(a)(b)		13,875		125,846
Bancolombia SA (Colombia)(a)		1,029		50,442
BNP Paribas SA (France)(a)		2,743		107,526
Commerzbank AG (Germany)(a)(b)		3,551		57,881
Credit Suisse Group AG (Switzerland)*(a)		3,692		114,600
HSBC Holdings PLC (United Kingdom)(a)		1,996		110,039
Intesa Sanpaolo SpA (Italy)(a)		7,332		109,613
Itau Unibanco Holding SA (Brazil)(a)		6,194		84,053
Lloyds Banking Group PLC (United Kingdom)*(a)(b)		23,527		125,164
National Australia Bank Ltd. (Australia)(a)		565		17,543
Nordea Bank AB (Sweden)(a)(b)		7,276		98,299
PT Bank Mandiri Persero Tbk (Indonesia)(a)		14,085		90,989
Royal Bank of Scotland Group PLC (United Kingdom)*(a)		10,495		118,908
Sberbank of Russia (Russia)(a)		7,144		89,800
Societe Generale SA (France)(a)		10,676		124,365
Sumitomo Mitsui Trust Holdings, Inc. (Japan)(a)		11,598		61,353
Turkiye Garanti Bankasi AS (Turkey)(a)		15,915		51,087
UBS AG (Switzerland)*		6,062		116,694
United Overseas Bank Ltd. (Singapore)(a)		2,160		72,619
Westpac Banking Corp. (Australia)(a)		496		14,409
Total Banks				1,920,453
Beverages — 2.4%
Anheuser-Busch InBev NV (Belgium)(a)		446		47,481
Carlsberg A/S, Class B (Denmark)(a)(b)		4,149		91,693
Diageo PLC (United Kingdom)(a)		453		59,986
Fomento Economico Mexicano SAB de CV (Mexico)(a)		249		24,370
Kirin Holdings Co. Ltd. (Japan)(a)(b)		3,290		47,376
Pernod Ricard SA (France)(a)		2,103		47,780
SABMiller PLC (United Kingdom)(a)		893		45,793
Treasury Wine Estates Ltd. (Australia)(a)(b)		20,193		86,830
Total Beverages				451,309

See accompanying Notes to Financial Statements.

44

ADVISORSHARES
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Shares		Value
Building Materials — 0.6%
CRH PLC (Ireland)(a)		1,080	$	27,594
Desarrolladora Homex SAB de CV (Mexico)*(a)		71,622		83,798
Total Building Materials				111,392
Chemicals — 3.8%
Air Liquide SA (France)(a)		841		23,859
Akzo Nobel NV (Netherlands)(a)		3,427		88,656
BASF SE (Germany)(a)		365		39,343
Koninklijke DSM NV (Netherlands)(a)(b)		5,211		102,865
Linde AG (Germany)(a)(b)		3,237		67,987
Lonza Group AG (Switzerland)*(a)		11,984		113,249
Methanex Corp. (Canada)		1,120		66,349
Nitto Denko Corp. (Japan)(a)		3,635		77,535
Sasol Ltd. (South Africa)(a)		1,462		72,296
Syngenta AG (Switzerland)(a)		710		56,757
Total Chemicals				708,896
Commercial Services — 2.6%
Brambles Ltd. (Australia)(a)(b)		2,114		37,291
Experian PLC (Ireland)(a)		2,784		51,309
iSoftStone Holdings Ltd.(China)*(a)(b)		22,248		113,910
New Oriental Education & Technology Group Inc. (China)(a)		2,828		89,082
SGS SA (Switzerland)(a)		1,881		43,206
TAL Education Group*(a)		3,433		75,492
WNS Holdings Ltd.(India)*(a)		1,816		39,788
WuXi Pharmatech Cayman, Inc. (China)*(a)		923		35,425
Total Commercial Services				485,503
Computers — 1.6%
Cap Gemini SA (France)(a)(b)		1,751		59,306
CGI Group, Inc., Class A (Canada)*		910		30,449
Infosys Ltd. (India)(a)		550		31,130
Lenovo Group Ltd. (Hong Kong)(a)		5,528		135,049
Wipro Ltd. (India)(a)(b)		3,203		40,326
Total Computers				296,260

See accompanying Notes to Financial Statements.

45

ADVISORSHARES
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Shares		Value
Cosmetics/Personal Care — 0.1%
L'Oreal SA (France)(a)		433	$	15,220
Distribution/Wholesale — 0.3%
Wolseley PLC (United Kingdom)(a)(b)		9,997		57,182
Diversified Financial Services — 2.9%
Daiwa Securities Group, Inc. (Japan)(a)(b)		13,906		140,311
Deutsche Boerse AG (Germany)(a)		1,637		13,505
Fly Leasing Ltd. (Ireland)(a)		4,223		67,864
Julius Baer Group Ltd. (Switzerland)*(a)(b)		10,930		105,474
Noah Holdings Ltd.(China)(a)(b)		4,272		76,896
Nomura Holdings, Inc. (Japan)(a)(b)		16,580		128,827
Total Diversified Financial Services				532,877
Electric — 1.3%
EDP – Energias de Portugal SA (Portugal)(a)(b)		1,972		72,116
Korea Electric Power Corp. (South Korea)(a)(b)		6,311		104,826
Power Assets Holdings Ltd. (Hong Kong)(a)(b)		2,544		20,377
SSE PLC (United Kingdom)(a)		1,872		42,607
Total Electric				239,926
Electrical Components & Equipment — 1.8%
Canadian Solar, Inc.*(b)		3,842		114,569
Hitachi Ltd. (Japan)(a)(b)		1,351		103,230
Nidec Corp. (Japan)(a)(b)		3,220		79,566
Schneider Electric SA (France)(a)(b)		2,433		42,699
Total Electrical Components & Equipment				340,064
Electronics — 1.0%
LG Display Co. Ltd. (South Korea)(a)(b)		10,744		130,432
Sony Corp. (Japan)(a)		2,622		45,335
Total Electronics				175,767
Energy – Alternate Sources — 0.6%
Vestas Wind Systems A/S (Denmark)*(a)(b)		10,461		102,728
Engineering & Construction — 1.0%
ABB Ltd. (Switzerland)*(a)		4,042		107,355
JGC Corp. (Japan)(a)(b)		1,000		78,100
Total Engineering & Construction				185,455
Entertainment — 0.4%
Bona Film Group Ltd.(China)*(a)(b)		12,481		71,641

See accompanying Notes to Financial Statements.

46

ADVISORSHARES
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Shares		Value
Food — 2.4%
BRF SA (Brazil)(a)		3,237	$	67,556
Carrefour SA (France)(a)		18,661		147,049
Cia Brasileira de Distribuicao Grupo Pao de Acucar (Brazil)(a)(b)		1,183		52,845
Danone SA (France)(a)		847		12,298
Delhaize Group SA (Belgium)(a)		747		44,387
Koninklijke Ahold NV (Netherlands)(a)		740		13,327
Nestle SA (Switzerland)(a)		291		21,415
Tesco PLC (United Kingdom)(a)		1,114		18,760
Unilever NV (Netherlands)(c)		484		19,471
Unilever PLC (United Kingdom)(a)		688		28,345
WM Supermarkets PLC (United Kingdom)(a)(b)		686		15,003
Total Food				440,456
Food Service — 0.5%
Compass Group PLC (United Kingdom)(a)(b)		5,505		88,790
Forest Products & Paper — 1.9%
Fibria Celulose SA (Brazil)*(a)(b)		3,529		41,219
Stora ENSO OYJ (Finland)(a)		11,186		112,419
Svenska Cellulosa AB SCA (Sweden)(a)(b)		3,219		99,403
UPM-Kymmene OYJ (Finland)(a)		5,232		89,101
Total Forest Products & Paper				342,142
Gas — 0.4%
Centrica PLC (United Kingdom)(a)(b)		1,103		25,568
Hong Kong & China Gas Co. Ltd. (Hong Kong)(a)		15,867		36,811
Snam SpA (Italy)(a)(b)		1,139		12,745
Total Gas				75,124
Healthcare – Products — 1.4%
Essilor International SA (France)(a)(b)		459		24,570
Luxottica Group SpA (Italy)(a)		1,167		62,925
Mindray Medical International Ltd. (China)(a)(b)		1,231		44,759
Smith & Nephew PLC (United Kingdom)(a)(b)		597		42,829
Trinity Biotech PLC (Ireland)(a)		3,270		82,208
Total Healthcare – Products				257,291
Healthcare – Services — 0.2%
Fresenius Medical Care AG & Co. KGaA (Germany)(a)		841		29,923

See accompanying Notes to Financial Statements.

47

ADVISORSHARES
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Shares		Value
Holding Companies – Diversified — 0.5%
Jardine Strategic Holdings Ltd. (Hong Kong)(a)(b)		5,212	$	83,444
Home Furnishings — 0.5%
Electrolux AB (Sweden)(a)		1,888		99,328
Insurance — 4.4%
Aegon NV, Class G (Netherlands)(c)		5,977		56,662
AIA Group Ltd. (Hong Kong)(a)		3,224		64,964
Allianz SE (Germany)(a)		4,778		86,625
Aviva PLC (United Kingdom)(a)(b)		4,353		65,948
AXA SA (France)(a)		3,595		100,264
ING Groep NV (Netherlands)*(a)		9,475		132,745
MS&AD Insurance Group Holdings (Japan)(a)		8,850		118,590
Prudential PLC (United Kingdom)(a)(b)		2,078		93,510
Zurich Insurance Group AG (Switzerland)*(a)(b)		3,477		101,424
Total Insurance				820,732
Internet — 3.5%
Baidu, Inc. (China)*(a)		208		36,999
Bitauto Holdings Ltd.(China)*(a)		1,812		57,911
Ctrip.com International Ltd. (China)*(a)		363		18,012
Giant Interactive Group, Inc. (China)(a)		9,650		108,466
Jiayuan.com International Ltd.(China)(a)(b)		2,600		15,600
NetEase, Inc. (China)(a)		889		69,875
Perfect World Co. Ltd.(China)(a)		3,933		69,929
Qihoo 360 Technology Co. Ltd. (China)*(a)		153		12,554
QIWI PLC (Cyprus)(a)		562		31,472
Soufun Holdings Ltd.(a)		1,999		164,738
Yahoo Japan Corp. (Japan)(a)		4,765		52,987
Total Internet				638,543
Iron/Steel — 1.2%
Cia Siderurgica Nacional SA (Brazil)(a)(b)		15,999		99,194
Gerdau SA (Brazil)(a)		7,196		56,417
POSCO (South Korea)(a)		355		27,690
Ternium SA (Luxembourg)(a)(b)		1,325		41,472
Total Iron/Steel				224,773

See accompanying Notes to Financial Statements.

48

ADVISORSHARES
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Shares		Value
Leisure Time — 0.3%
Carnival PLC (United Kingdom)(a)		518	$	21,471
SEGA Sammy Holdings, Inc. (Japan)(a)(b)		5,799		36,940
Total Leisure Time				58,411
Lodging — 1.8%
China Lodging Group Ltd.(China)*(a)		2,676		81,511
Home Inns & Hotels Management, Inc.*(a)		2,100		91,644
InterContinental Hotels Group PLC (United Kingdom)(a)		1,192		39,848
Melco Crown Entertainment Ltd., Class Participation Certificate (Hong Kong)*(a)		2,859		112,130
Total Lodging				325,133
Machinery – Construction & Mining — 0.5%
Komatsu Ltd. (Japan)(a)		4,075		83,863
Machinery – Diversified — 0.4%
Alstom SA (France)(a)		22,261		80,140
Media — 1.1%
British Sky Broadcasting Group PLC (United Kingdom)(a)		1,487		83,614
Pearson PLC (United Kingdom)(a)		1,473		32,995
Phoenix New Media Ltd.*(a)(b)		5,314		51,174
Reed Elsevier NV (Netherlands)(a)		852		36,355
Total Media				204,138
Metal Fabricate/Hardware — 0.3%
Assa Abloy AB (Sweden)(a)(b)		2,009		53,138
Mining — 3.7%
Anglo American PLC (United Kingdom)(a)		6,136		66,821
B2Gold Corp. (Canada)*		37,902		76,562
BHP Billiton Ltd. (Australia)(a)		1,379		94,048
BHP Billiton PLC (United Kingdom)(a)		549		34,104
Cameco Corp. (Canada)(b)		6,027		125,181
Eldorado Gold Corp. (Canada)		8,457		48,120
First Majestic Silver Corp. (Canada)*(b)		1,305		12,789
Harmony Gold Mining Co. Ltd. (South Africa)(a)		20,741		52,475
Newcrest Mining Ltd. (Australia)(a)(b)		4,149		29,209
Rio Tinto PLC (United Kingdom)(a)(b)		2,164		122,114
Silver Wheaton Corp. (Canada)		984		19,867
Total Mining				681,290

See accompanying Notes to Financial Statements.

49

ADVISORSHARES
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Shares		Value
Miscellaneous Manufacturing — 0.6%
Siemens AG (Germany)(a)		659	$	91,278
Smiths Group PLC (United Kingdom)(a)(b)		977		24,620
Total Miscellaneous Manufacturing				115,898
Office/Business Equipment — 1.4%
Canon, Inc. (Japan)(a)(b)		2,582		82,624
Seiko Epson Corp. (Japan)(a)(b)		13,562		183,345
Total Office/Business Equipment				265,969
Oil & Gas — 5.4%
BG Group PLC (United Kingdom)(a)		4,908		106,455
Canadian Natural Resources Ltd.		2,198		74,380
Enerplus Corp. (Canada)		6,029		109,607
Petrobras Argentina SA (Argentina)*(a)		21,168		117,483
PetroChina Co. Ltd. (China)(a)		557		61,125
Petroleo Brasileiro SA (Brazil)(a)		7,273		100,222
Precision Drilling Corp. (Canada)		11,683		109,470
Repsol YPF SA (Spain)(a)		1,641		41,501
Vermilion Energy, Inc. (Canada)(b)		2,130		125,904
YPF SA (Argentina)(a)		4,819		158,834
Total Oil & Gas				1,004,981
Oil & Gas Services — 1.0%
CGG (France)*(a)(b)		5,511		95,616
Petrofac Ltd. (United Kingdom)(a)(b)		9,219		92,282
Total Oil & Gas Services				187,898
Pharmaceuticals — 4.3%
Astellas Pharma, Inc. (Japan)(a)		7,787		115,528
Bayer AG (Germany)(a)		637		90,454
Dr Reddy's Laboratories Ltd. (India)(a)		1,197		49,113
GlaxoSmithKline PLC (United Kingdom)(a)		1,023		54,618
Grifols SA (Spain)(a)(b)		3,182		114,934
Novartis AG (Switzerland)(a)		382		30,705
Novo Nordisk A/S (Denmark)(a)		450		83,142
Roche Holding AG (Switzerland)(a)		851		59,740
Sanofi (France)(a)		439		23,544
Shire PLC (Ireland)(a)		528		74,601
Teva Pharmaceutical Industries Ltd. (Israel)(a)		1,331		53,347

See accompanying Notes to Financial Statements.

50

ADVISORSHARES
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Shares		Value
Pharmaceuticals — 4.3% (continued)
Valeant Pharmaceuticals International, Inc. (Canada)*		421	$	49,425
Total Pharmaceuticals				799,151
Real Estate — 0.9%
Cheung Kong Holdings Ltd. (Hong Kong)(a)(b)		1,520		24,031
E-House China Holdings Ltd.(China)(a)		8,842		133,338
Total Real Estate				157,369
Retail — 2.3%
Cie Financiere Richemont SA (Switzerland)(a)		7,152		71,520
Hennes & Mauritz AB (Sweden)(a)		3,641		33,351
Inditex SA (Spain)(a)(b)		1,014		33,482
Kering (France)(a)		3,205		68,042
Kingfisher PLC (United Kingdom)(a)(b)		7,045		90,458
Marks & Spencer Group PLC (United Kingdom)(a)		4,400		63,070
Swatch Group AG (The) (Switzerland)(a)		2,149		71,347
Total Retail				431,270
Semiconductors — 5.9%
Advanced Semiconductor Engineering, Inc. (Taiwan)(a)		22,056		105,869
ARM Holdings PLC (United Kingdom)(a)(b)		1,262		69,082
ASML Holding NV (Netherlands)(c)		1,218		114,126
Himax Technologies, Inc. (Taiwan)(a)(b)		10,483		154,205
Infineon Technologies AG (Germany)(a)		5,009		54,197
RDA Microelectronics, Inc.(China)(a)		3,550		63,474
Semiconductor Manufacturing International Corp. (China)*(a)(b)		17,392		67,829
Silicon Motion Technology Corp. (Taiwan)(a)		8,670		122,680
Siliconware Precision Industries Co. (Taiwan)(a)		17,636		105,463
Taiwan Semiconductor Manufacturing Co., Ltd. (Taiwan)(a)		5,213		90,915
Tokyo Electron Ltd. (Japan)(a)(b)		4,847		67,034
United Microelectronics Corp. (Taiwan)(a)		38,316		78,165
Total Semiconductors				1,093,039
Software — 3.1%
Changyou.com Ltd.(China)*(a)(b)		2,553		81,824
Dassault Systemes SA (France)(a)		260		32,318
NQ Mobile, Inc.(China)*(a)		4,082		60,005
Open Text Corp. (Canada)		528		48,555
Pactera Technology International Ltd.(China)*(a)		16,909		120,899

See accompanying Notes to Financial Statements.

51

ADVISORSHARES
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Shares		Value
Software — 3.1% (continued)
SAP AG (Germany)(a)(b)		1,154	$	100,559
Shanda Games Ltd.(China)*(a)		25,882		118,540
Total Software				562,700
Telecommunications — 7.6%
BT Group PLC (United Kingdom)(a)		508		32,070
China Unicom Ltd. (Hong Kong)(a)		6,534		98,402
Deutsche Telekom AG (Germany)(a)		3,584		61,860
KDDI Corp. (Japan)(a)(b)		8,057		124,400
KT Corp. (South Korea)(a)		2,988		44,431
Mobile TeleSystems OJSC (Russia)(a)		672		14,535
NICE Systems Ltd. (Israel)(a)		2,210		90,522
Nippon Telegraph & Telephone Corp. (Japan)(a)		2,358		63,760
Orange SA (France)(a)		8,036		99,245
Portugal Telecom SGPS SA (Portugal)(a)(b)		18,576		80,248
PT Telekomunikasi Indonesia Tbk (Indonesia)(a)		1,038		37,212
Singapore Telecommunications Ltd. (Singapore)(a)(b)		1,780		51,798
SK Telecom Co. Ltd. (South Korea)(a)(b)		4,290		105,620
SoftBank Corp. (Japan)(a)		1,712		75,003
Telecom Argentina SA (Argentina)(a)		4,888		84,269
Telecom Corp. of New Zealand Ltd. (New Zealand)(a)		1,497		14,186
Telefonaktiebolaget LM Ericsson (Sweden)(a)		8,902		108,960
Telstra Corp. Ltd. (Australia)(a)		1,540		36,098
Tim Participacoes SA (Brazil)(a)		726		19,050
Turkcell Iletisim Hizmetleri AS (Turkey)*(a)		2,537		33,869
VimpelCom Ltd. (Netherands)(a)		9,638		124,716
Total Telecommunications				1,400,254
Transportation — 1.7%
Canadian Pacific Railway Ltd. (Canada)		607		91,851
Deutsche Post AG (Germany)(a)		2,088		76,630
East Japan Railway Co. (Japan)(a)(b)		2,854		38,186
TNT Express NV (Netherlands)(a)		12,200		112,850
Total Transportation				319,517

See accompanying Notes to Financial Statements.

52

ADVISORSHARES
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Shares		Value
Water — 0.9%
Suez Environnement Co. (France)(a)(b)		8,769	$	79,184
Veolia Environnement SA (France)(a)		5,663		92,647
Total Water				171,831
Total Common Stocks (Cost $16,455,236)				18,515,864
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 21.6%
BNY Mellon Securities Lending Overnight Fund, 0.09%(d) (Cost $3,986,977)		3,986,977		3,986,977
Total Investments — 121.8% (Cost $20,442,213)				22,502,841
Liabilities in Excess of Other Assets — (21.8)%				(4,022,815	)
Net Assets — 100.0%			$	18,480,026

PLC — Public Limited Company

* Non-income producing security

(a) American Depositary Receipt

(b) All or a portion of security is on loan. The aggregate market value of the securities on loan is $3,903,462; the aggregate market value of the collateral held by the fund is $4,028,437. The aggregate market value of the collateral includes non-cash U.S. Treasury securities collateral having a value of $41,460.

(c) Registered Shares

(d) Rate shown reflects the 1-day yield as of December 31, 2013.

See accompanying Notes to Financial Statements.

53

ADVISORSHARES
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Advertising		0.8	%
Aerospace/Defense		2.4
Agriculture		0.6
Airlines		0.3
Apparel		0.8
Auto Manufacturers		4.1
Auto Parts & Equipment		0.3
Banks		10.4
Beverages		2.4
Building Materials		0.6
Chemicals		3.8
Commercial Services		2.6
Computers		1.6
Cosmetics/Personal Care		0.1
Distribution/Wholesale		0.3
Diversified Financial Services		2.9
Electric		1.3
Electrical Components & Equipment		1.8
Electronics		1.0
Energy – Alternate Sources		0.6
Engineering & Construction		1.0
Entertainment		0.4
Food		2.4
Food Service		0.5
Forest Products & Paper		1.9
Gas		0.4
Healthcare – Products		1.4
Healthcare – Services		0.2
Holding Companies – Diversified		0.5
Home Furnishings		0.5
Insurance		4.4
Internet		3.5
Iron/Steel		1.2
Leisure Time		0.3
Lodging		1.8
Machinery – Construction & Mining		0.5
Machinery – Diversified		0.4
Media		1.1
Metal Fabricate/Hardware		0.3
Mining		3.7

See accompanying Notes to Financial Statements.

54

ADVISORSHARES
MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

SUMMARY OF SCHEDULE OF INVESTMENTS (continued)

	% of Net Assets
Miscellaneous Manufacturing		0.6	%
Office/Business Equipment		1.4
Oil & Gas		5.4
Oil & Gas Services		1.0
Pharmaceuticals		4.3
Real Estate		0.9
Retail		2.3
Semiconductors		5.9
Software		3.1
Telecommunications		7.6
Transportation		1.7
Water		0.9
Money Market Fund		21.6
Total Investments		121.8
Liabilities in Excess of Other Assets		(21.8	)
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

55

ADVISORSHARES
MEIDELL TACTICAL ADVANTAGE ETF
Schedule of Investments

December 31, 2013 (Unaudited)

Investments	Shares		Value
EXCHANGE TRADED FUNDS — 96.7%
Equity Fund — 96.7%
Guggenheim S&P 500 Equal Weight ETF		2,900	$	206,625
iShares Core S&P 500 ETF		4		742
iShares Core S&P Mid-Cap ETF(a)		3		401
iShares Core S&P Small-Cap ETF(a)		8		874
iShares Russell 1000 ETF(a)		5		516
iShares S&P 100 ETF		9,157		754,079
iShares S&P 500 Growth ETF		16		1,580
iShares S&P 500 Value ETF		10		855
iShares S&P MidCap 400 Growth ETF		7		1,052
iShares S&P SmallCap 600 Growth ETF(a)		10		1,189
iShares S&P SmallCap 600 Value ETF(a)		15		1,671
PowerShares QQQ Trust, Series 1		11		967
SPDR S&P 500 ETF Trust		11,438		2,112,255
SPDR S&P MidCap 400 ETF Trust		6,118		1,494,016
Vanguard Growth ETF		16,511		1,536,349
Vanguard Mid-Cap Growth ETF		16,834		1,519,269
Vanguard S&P 500 ETF		8,949		1,513,723
Vanguard Small-Cap ETF		13,604		1,495,760
Vanguard Small-Cap Growth ETF		13,129		1,605,677
Vanguard Small-Cap Value ETF		14,839		1,444,873
Vanguard Value ETF		19,703		1,505,112
Total Exchange Traded Funds (Cost $15,176,738)				15,197,585
MONEY MARKET FUND — 3.6%
Dreyfus Institutional Reserves Treasury Fund – Institutional Class, 0.00%(b) (Cost $567,723)		567,723		567,723
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 26.1%
BNY Mellon Securities Lending Overnight Fund, 0.09%(c) (Cost $4,095,324)		4,095,324		4,095,324
Total Investments — 126.4% (Cost $19,839,785)				19,860,632
Liabilities in Excess of Other Assets — (26.4)%				(4,142,304	)
Net Assets — 100.0%			$	15,718,328

See accompanying Notes to Financial Statements.

56

ADVISORSHARES
MEIDELL TACTICAL ADVANTAGE ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

ETF — Exchange Traded Fund

(a) All or a portion of security is on loan. The aggregate market value of the securities on loan is $4,010,629; the aggregate market value of the collateral held by the fund is $4,095,324.

(b) Rate shown reflects the 7-day yield as of December 31, 2013.

(c) Rate shown reflects the 1-day yield as of December 31, 2013.

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Equity Fund		96.7	%
Money Market Fund		29.7
Total Investments		126.4
Liabilities in Excess of Other Assets		(26.4	)
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

57

ADVISORSHARES
NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments

December 31, 2013 (Unaudited)

Investments	Principal		Value
CORPORATE BONDS — 24.5%
Communications — 0.3%
T-Mobile USA, Inc., 6.46%, 04/28/19	$	275,000	$	292,875
Consumer Discretionary — 1.9%
Boyd Gaming Corp., 9.13%, 12/01/18(a)		210,000		229,425
CCO Holdings LLC/CCO Holdings Capital Corp., 7.38%, 06/01/20		205,000		222,937
Dish DBS Corp., 4.63%, 07/15/17		230,000		241,500
DR Horton, Inc., 3.63%, 02/15/18		75,000		76,406
Hyatt Hotels Corp., 3.88%, 08/15/16		35,000		36,978
MGM Resorts International, 7.63%, 01/15/17		165,000		188,513
Rent-A-Center, Inc., 6.63%, 11/15/20		175,000		186,375
Time Warner Cable, Inc., 6.75%, 07/01/18		205,000		230,120
Wyndham Worldwide Corp., 2.50%, 03/01/18		450,000		448,913
Total Consumer Discretionary				1,861,167
Consumer, Cyclical — 1.0%
America West Airlines 1999-1 Pass-Through Trust, Series 991G, 7.93%, 01/02/19		457,995		491,199
American Axle & Manufacturing, Inc., 5.13%, 02/15/19		115,000		118,737
GLP Capital LP/GLP Financing II, Inc., 4.38%, 11/01/18‡		10,000		10,250
Toll Brothers Finance Corp., 4.00%, 12/31/18		330,000		336,600
Total Consumer, Cyclical				956,786
Diversified — 0.0%†
Alphabet Holding Co., Inc., 7.75%, 11/01/17‡		25,000		25,828
Energy — 1.0%
Calumet Specialty Products Partners LP/Calumet Finance Corp., 9.63%, 08/01/20		100,000		112,750
Chesapeake Energy Corp., 5.38%, 06/15/21		175,000		182,000
Forest Oil Corp., 7.25%, 06/15/19(a)		92,000		90,045
Parker Drilling Co., 9.13%, 04/01/18		175,000		186,375
Plains Exploration & Production Co., 6.50%, 11/15/20		210,000		232,022
QEP Resources, Inc., 6.88%, 03/01/21		225,000		242,438
Total Energy				1,045,630

See accompanying Notes to Financial Statements.

58

ADVISORSHARES
NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Principal		Value
Financials — 11.7%
Ally Financial, Inc., 3.50%, 07/18/16	$	450,000	$	465,455
Ally Financial, Inc., 4.75%, 09/10/18		225,000		236,250
American International Group, Inc., 3.38%, 08/15/20		200,000		201,460
Associated Banc-Corp., 5.13%, 03/28/16		60,000		64,168
Aviation Capital Group Corp., 3.88%, 09/27/16‡		50,000		51,678
Bank of America Corp., 2.00%, 01/11/18		95,000		94,922
Bank of America Corp., Series L, 5.65%, 05/01/18		200,000		227,875
Bank of America Corp., 5.49%, 03/15/19		66,000		73,147
Barclays Bank PLC, 5.20%, 07/10/14 (United Kingdom)		100,000		102,510
Bear Stearns Cos. LLC (The), 7.25%, 02/01/18		75,000		89,884
Capital One Financial Corp., 6.15%, 09/01/16		400,000		447,671
Citigroup, Inc., 5.50%, 02/15/17		450,000		496,184
CNA Financial Corp., 5.85%, 12/15/14		100,000		104,763
Countrywide Financial Corp., 6.25%, 05/15/16		130,000		143,535
DDR Corp., 7.88%, 09/01/20		180,000		222,666
DDR Corp., 3.50%, 01/15/21		145,000		141,353
Denali Borrower LLC, 5.63%, 10/15/20‡		50,000		49,687
E*Trade Financial Corp., 6.38%, 11/15/19		175,000		188,781
Fifth Third Bancorp, 4.50%, 06/01/18		66,000		70,451
Ford Motor Credit Co. LLC, 8.13%, 01/15/20		455,000		569,658
General Electric Capital Corp., Series G, 5.63%, 05/01/18		295,000		339,099
Genworth Holdings, Inc., 7.63%, 09/24/21(a)		200,000		238,357
Goldman Sachs Group, Inc. (The), 5.63%, 01/15/17		670,000		738,818
HCP, Inc., 3.75%, 02/01/19		175,000		181,970
Health Care REIT, Inc., 4.70%, 09/15/17		220,000		239,344
HSBC Finance Corp., 6.68%, 01/15/21		225,000		258,903
HSBC USA, Inc., 1.63%, 01/16/18		200,000		197,403
HSBC USA, Inc., 2.63%, 09/24/18		225,000		229,051
Huntington Bancshares, Inc., 7.00%, 12/15/20		200,000		232,253
ING US, Inc., 2.90%, 02/15/18		230,000		235,468
International Lease Finance Corp., 3.88%, 04/15/18		200,000		200,875
Jefferies Group LLC, 5.13%, 04/13/18		275,000		298,493
JPMorgan Chase & Co., 6.13%, 06/27/17		280,000		318,282

See accompanying Notes to Financial Statements.

59

ADVISORSHARES
NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Principal		Value
Financials — 11.7% (continued)
Lazard Group LLC, 4.25%, 11/14/20	$	275,000	$	274,808
Lincoln National Corp., 8.75%, 07/01/19		125,000		161,077
Lincoln National Corp., 6.05%, 04/20/67@		100,000		99,750
Morgan Stanley, 5.55%, 04/27/17		425,000		474,460
Morgan Stanley, 2.13%, 04/25/18(a)		180,000		178,630
National Retail Properties, Inc., 5.50%, 07/15/21		250,000		272,171
Nationstar Mortgage LLC, 6.50%, 08/01/18		235,000		240,288
Prudential Financial, Inc., 5.20%, 03/15/44@		300,000		291,750
Regions Financial Corp., 5.75%, 06/15/15		325,000		346,417
Santander Holdings USA, Inc., 3.00%, 09/24/15		115,000		118,805
SLM Corp., 4.63%, 09/25/17		175,000		182,091
SLM Corp., 4.88%, 06/17/19		110,000		109,740
State Street Corp., 4.96%, 03/15/18		300,000		325,780
Ventas Realty LP, 4.00%, 04/30/19		180,000		189,359
Wells Fargo & Co., 5.13%, 09/15/16		75,000		82,608
Willis North America, Inc., 6.20%, 03/28/17		250,000		271,575
Zions Bancorporation, 4.50%, 03/27/17		195,000		206,626
Total Financials				11,576,349
Health Care — 0.8%
Community Health Systems, Inc., 5.13%, 08/15/18		170,000		175,950
Express Scripts Holding Co., 3.50%, 11/15/16		150,000		158,691
HCA, Inc., 6.50%, 02/15/20		185,000		203,731
Tenet Healthcare Corp., 6.25%, 11/01/18		150,000		166,687
Tenet Healthcare Corp., 6.00%, 10/01/20‡		105,000		109,791
Total Health Care				814,850
Industrials — 4.8%
Atlas Air 2000-1 Class A Pass-Through Trust, Series 00-1, 8.71%, 01/02/19		590,418		612,558
CNH Capital LLC, 3.25%, 02/01/17‡		35,000		35,787
Continental Airlines 1998-1 Class A Pass-Through Trust, Series 981A, 6.65%, 09/15/17		419,104		440,563
Delta Air Lines 2009-1 Class A Pass-Through Trust, Series A, 7.75%, 12/17/19		215,512		247,839

See accompanying Notes to Financial Statements.

60

ADVISORSHARES
NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Principal		Value
Industrials — 4.8% (continued)
Delta Air Lines 2012-1 Class A Pass-Through Trust, Series A, 4.75%, 05/07/20	$	334,775	$	358,209
Delta Air Lines Class A Pass-Through Trust, Series 2010-2A, 4.95%, 05/23/19		812,982		875,988
Deluxe Corp., 7.00%, 03/15/19		170,000		182,750
HD Supply, Inc., 8.13%, 04/15/19		170,000		190,188
Kratos Defense & Security Solutions, Inc., 10.00%, 06/01/17		255,000		276,356
Ryder System, Inc., 2.50%, 03/01/17		125,000		127,265
Spirit Aerosystems, Inc., 7.50%, 10/01/17		100,000		104,250
Textron, Inc., 4.63%, 09/21/16		400,000		431,484
UAL 2009-2a Pass-Through Trust, Series 09-2, 9.75%, 01/15/17		596,282		685,724
United Rentals North America, Inc., 7.38%, 05/15/20		150,000		167,063
Total Industrials				4,736,024
Information Technology — 0.5%
Dun & Bradstreet Corp. (The), 3.25%, 12/01/17		300,000		303,506
Equinix, Inc., 4.88%, 04/01/20		175,000		175,000
First Data Corp., 11.75%, 08/15/21‡		20,000		21,200
Total Information Technology				499,706
Materials — 0.9%
Calumet Specialty Products Partners LP, 9.38%, 05/01/19		100,000		111,500
Hexion US Finance Corp., 6.63%, 04/15/20		175,000		180,250
Huntsman International LLC, 4.88%, 11/15/20		200,000		198,000
International Paper Co., 9.38%, 05/15/19		75,000		98,484
Libbey Glass, Inc., 6.88%, 05/15/20		96,000		104,160
Reynolds Group Issuer LLC, 7.88%, 08/15/19		150,000		166,500
Total Materials				858,894
Telecommunication Services — 1.2%
AT&T, Inc., 3.88%, 08/15/21		210,000		213,100
Centurylink, Inc., Series N, 6.00%, 04/01/17		150,000		166,125
Frontier Communications Corp., 7.13%, 03/15/19		250,000		270,625
Qwest Corp., 6.50%, 06/01/17		75,000		84,821
Sprint Communications, Inc., 6.00%, 12/01/16		170,000		185,938

See accompanying Notes to Financial Statements.

61

ADVISORSHARES
NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Principal		Value
Telecommunication Services — 1.2% (continued)
Verizon Communications, Inc., 2.50%, 09/15/16	$	45,000	$	46,562
Verizon Communications, Inc., 3.65%, 09/14/18		50,000		52,986
Verizon Communications, Inc., 4.60%, 04/01/21		125,000		132,242
Total Telecommunication Services				1,152,399
Utilities — 0.4%
Energy Transfer Partners LP, 4.15%, 10/01/20		250,000		254,008
NRG Energy, Inc., 8.50%, 06/15/19		170,000		182,325
Total Utilities				436,333
Total Corporate Bonds (Cost $24,282,420)				24,256,841
FOREIGN BONDS — 5.0%
Communications — 0.5%
Telecom Italia Capital SA, 7.18%, 06/18/19 (Luxembourg)		175,000		197,313
Thomson Reuters Corp., 1.30%, 02/23/17 (Canada)		330,000		328,796
Total Communications				526,109
Consumer, Non-cyclical — 0.3%
Coca-Cola Femsa SAB de CV, 2.38%, 11/26/18 (Mexico)		250,000		248,778
Energy — 1.2%
Petrobras International Finance Co., 3.50%, 02/06/17 (Brazil)		400,000		404,660
Petroleos Mexicanos, 6.00%, 03/05/20 (Mexico)		350,000		390,600
Rosneft Finance SA, 7.50%, 07/18/16 (Russia)		195,000		219,863
Weatherford Bermuda Holdings Ltd., 9.63%, 03/01/19		150,000		192,934
Total Energy				1,208,057
Financials — 2.1%
Aircastle Ltd., 4.63%, 12/15/18		285,000		287,850
Aircastle Ltd., 6.25%, 12/01/19		250,000		269,062
Banco Santander Brasil SA, 4.50%, 04/06/15 (Brazil)		250,000		258,125
Banco Santander Chile, 2.12%, 06/07/18 (Chile)@‡		200,000		201,100
Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A., 2.13%, 10/13/15 (Netherlands)		250,000		256,556
Corp. Andina de Fomento, 3.75%, 01/15/16 (Supranational)		100,000		104,470
Intesa Sanpaolo SpA, 3.13%, 01/15/16 (Italy)		200,000		203,913

See accompanying Notes to Financial Statements.

62

ADVISORSHARES
NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Principal		Value
Financials — 2.1% (continued)
Royal Bank of Scotland Group PLC, 6.40%, 10/21/19 (United Kingdom)	$	350,000	$	403,810
XLIT Ltd., 2.30%, 12/15/18 (Ireland)		110,000		108,166
Total Financials				2,093,052
Foreign Government — 0.4%
Korea Finance Corp., 4.63%, 11/16/21 (South Korea)		375,000		397,844
Health Care — 0.1%
Valant Pharmaceuticals International, 6.75%, 08/15/18 (Canada)‡		120,000		132,450
Materials — 0.3%
Methanex Corp., 3.25%, 12/15/19 (Canada)		100,000		99,383
Vale Overseas Ltd., 4.38%, 01/11/22 (Brazil)		170,000		166,021
Total Materials				265,404
Telecommunication — 0.1%
Telefonica Emisiones SAU, 6.42%, 06/20/16 (Spain)		100,000		111,685
Total Foreign Bonds (Cost $5,027,979)				4,983,379
ASSET BACKED SECURITIES — 11.5%
AmeriCredit Automobile Receivables Trust, Class D, Series 2012-4, 2.68%, 10/09/18		1,050,000		1,059,755
AmeriCredit Automobile Receivables Trust 2011-2, Class D, Series 2011-2, 4.00%, 05/08/17		955,000		988,326
AmeriCredit Automobile Receivables Trust 2013-2, Class D, Series 2013-2, 2.42%, 05/08/19		575,000		571,140
Asset Backed Funding Certificates Trust, Class A6, Series 2005-AQ1, 4.78%, 06/25/35#		298,531		308,433
Bayview Financial Acquisition Trust, Class 1A2, Series 2007-A, 6.21%, 05/28/37#		769,492		827,914
Carmax Auto Owner Trust, Class A3, Series 2012-1, 0.89%, 09/15/16		243,526		244,209
CarMax Auto Owner Trust 2012-1, Class B, Series 2012-1, 1.76%, 08/15/17		500,000		509,780
CKE Restaurant Holdings, Inc., Class A2, Series 2013-1A, 4.47%, 03/20/43‡		306,513		306,644

See accompanying Notes to Financial Statements.

63

ADVISORSHARES
NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Principal		Value
ASSET BACKED SECURITIES — 11.5% (continued)
Cronos Containers Program Ltd., Class A, Series 2012-2A, 3.81%, 09/18/27 (Bermuda)‡	$	262,500	$	263,096
Domino's Pizza Master Issuer LLC, Class A2, Series 2012-1A, 5.22%, 01/25/42‡		267,781		284,189
Drug Royalty II LP 1 2012-1, Class A1, Series 2012-1, 4.24%, 01/15/25@‡		196,768		200,959
Exeter Automobile Receivables Trust, Class B, Series 2013-2A, 3.09%, 07/16/18‡		180,000		181,158
Exeter Automobile Receivables Trust 2013-1, Class C, Series 2013-1A, 3.52%, 02/15/19‡		500,000		494,180
GSAA Trust, Class AF4, Series 2005-1, 5.47%, 11/25/34#		284,806		298,727
Honda Auto Receivables 2011-3 Owner Trust, Class A4, Series 2011-3, 1.17%, 11/21/14		750,000		754,999
Mid-State Trust, Class A4, Series 1997-6, 7.79%, 07/01/35		474,699		514,415
Residential Funding Mortgage Securities II Home Loan Trust, Class AIIB, Series 2003-HS2, 0.41%, 06/25/28@		230,122		215,322
Santander Drive Auto Receivables Trust, Class C, Series 2012-3, 3.01%, 04/16/18		260,000		267,672
Santander Drive Auto Receivables Trust, Class D, Series 2012-6, 2.52%, 09/17/18		350,000		351,309
Santander Drive Auto Receivables Trust 2012-2, Class D, Series 2012-2, 3.87%, 02/15/18		300,000		315,048
Santander Drive Auto Receivables Trust 2012-4, Class C, Series 2012-4, 2.94%, 12/15/17		360,000		370,658
Santander Drive Auto Receivables Trust 2012-5, Class A3, Series 2012-5, 0.83%, 12/15/16		239,000		239,087
Santander Drive Auto Receivables Trust 2013-3, Class C, Series 2013-3, 1.81%, 04/15/19		600,000		596,447
Sierra Timeshare Receivables Funding LLC, Class B, Series 2012-2A, 3.42%, 03/20/29‡		346,108		351,386
Silverleaf Finance XV LLC, Class A, Series 2012-D, 3.00%, 03/17/25‡		372,290		375,785
Structured Asset Securities Corp. Assistance Loan Trust, Class A, Series 2003-AL1, 3.36%, 04/25/31‡		37,083		36,524
Trip Rail Master Funding LLC, Class A1A, Series 2011-1A, 4.37%, 07/15/41‡		444,637		467,455
Total Asset Backed Securities (Cost $11,463,964)				11,394,617

See accompanying Notes to Financial Statements.

64

ADVISORSHARES
NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Principal		Value
MORTGAGE BACKED SECURITIES — 38.8%
Commercial Mortgage Backed Securities — 12.2%
BAMLL-DB Trust, Class A2FX, Series 2012-OSI, 3.35%, 04/13/29‡	$	274,872	$	283,623
Bayview Financial Mortgage Pass-Through Trust 2006-A, Class 1A2, Series 2006-A, 5.48%, 02/28/41#		231,942		235,229
Bear Stearns Commercial Mortgage Securities Trust, Class A4, Series 2004-T14, 5.20%, 01/12/41@		253,910		253,925
Bear Stearns Commercial Mortgage Securities Trust, Class A4, Series 2007-PW18, 5.70%, 06/11/50		750,000		844,281
Capital Auto Receivables Asset Trust/Ally, Class C, Series 2013-1, 1.74%, 10/22/18		295,000		291,535
Carfinance Capital Auto Trust 2013-2, Class B, Series 2013-2A, 3.15%, 08/15/19‡		350,000		349,679
CD Commercial Mortgage Trust, Class A4, Series 2007-CD4, 5.32%, 12/11/49		780,000		855,410
Citigroup Commercial Mortgage Trust 2007-C6, Class A1A, Series 2007-C6, 5.71%, 12/10/49@		473,436		526,848
Commercial Mortgage Trust 2007-GG11, Class AM, Series 2007-GG11, 5.87%, 12/10/49@		175,000		192,202
Countrywide Asset-Backed Certificates, Class AF6, Series 2004-12, 4.63%, 03/25/35@		466,138		477,031
Credit Suisse Commercial Mortgage Trust Series 2007-C1, Class A1A, Series 2007-C1, 5.36%, 02/15/40		209,369		223,655
GS Mortgage Securities Trust, Class A4, Series 2007-GG10, 5.81%, 08/10/45@(a)		1,000,000		1,100,256
Hilton USA Trust 2013-HLT, Class EFX, Series 2013-HLT, 4.45%, 11/05/30@‡		250,000		252,785
Irwin Home Equity Loan Trust 2003-A, Class M1, Series 2003-A, 1.71%, 10/25/27@		613,669		598,993
JPMorgan Mortgage Trust 2004-A3, Class 1A1, Series 2004-A3, 2.48%, 07/25/34@		150,221		151,253
LB-UBS Commercial Mortgage Trust, Class A3, Series 2007-C7, 5.87%, 09/15/45@		686,244		762,674
Master Alternative Loan Trust 2004-4, Class 6A1, Series 2004-4, 5.50%, 04/25/34		288,877		307,119
RASC Series 2004-KS2 Trust, Class AI6, Series 2004-KS2, 4.30%, 03/25/34@		283,240		287,249

See accompanying Notes to Financial Statements.

65

ADVISORSHARES
NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Principal		Value
MORTGAGE BACKED SECURITIES — 38.8% (continued)
Rialto Real Estate Fund LLC, Class A, Series 2013-LT2, 2.83%, 05/22/28‡	$	153,861	$	154,237
Santander Drive Auto Receivables Trust 2013-1, Class D, Series 2013-1, 2.27%, 01/15/19		500,000		494,774
Santander Drive Auto Receivables Trust 2013-5, Class D, Series 2013-5, 2.73%, 10/15/19		300,000		297,532
Structured Adjustable Rate Mortgage Loan Trust, Class 3A2, Series 2004-5, 2.45%, 05/25/34@		597,728		591,733
Wachovia Bank Commercial Mortgage Trust, Class AM, Series 2007-C30, 5.38%, 12/15/43		270,000		291,112
Wachovia Bank Commercial Mortgage Trust, Class A4, Series 2007-C31, 5.51%, 04/15/47		770,000		841,956
Wachovia Bank Commercial Mortgage Trust, Class A3, Series 2007-C32, 5.75%, 06/15/49@		975,000		1,081,012
Washington Mutual MSC Mortgage Pass-Through Certificates Series 2003-Ar4 Trust, Class 2A1, Series 2003-AR4, 2.22%, 08/25/33@		284,905		285,188
Total Commercial Mortgage Backed Securities				12,031,291
Fixed Income — 20.0%
A10 Securitization 2013-1 LLC, Class A, Series 2013-1, 2.40%, 11/15/25‡		600,000		598,964
Bear Stearns ARM Trust 2004-1, Class 21A1, Series 2004-1, 2.40%, 04/25/34@		618,763		607,989
Bear Stearns ARM Trust 2004-10, Class 15A1, Series 2004-10, 2.66%, 01/25/35@		713,735		721,683
Bear Stearns ARM Trust 2004-10, Class 12A3, Series 2004-10, 2.69%, 01/25/35@		379,625		377,259
Bear Stearns Commercial Mortgage Securities Trust 2006-PWR13, Class AM, Series 2006-PW13, 5.58%, 09/11/41@		800,000		874,594
Bear Stearns Commercial Mortgage Securities Trust 2007-PWR15, Class AM, Series 2007-PW15, 5.36%, 02/11/44		350,000		361,631
Bear Stearns Commercial Mortgage Securities Trust 2007-PWR17, Class A4, Series 2007-PW17, 5.69%, 06/11/50@		650,000		728,903
Citigroup Mortgage Loan Trust, Inc., Class A3, Series 2004-UST1, 2.32%, 08/25/34@		217,697		217,965
Commercial Mortgage Trust 2004-GG1, Class A7, Series 2004-GG1, 5.32%, 06/10/36@		111,418		112,023

See accompanying Notes to Financial Statements.

66

ADVISORSHARES
NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Principal		Value
Fixed Income — 20.0% (continued)
Credit Suisse First Boston Mortgage Securities Corp., Class 6A1, Series 2004-8, 4.50%, 12/25/19	$	274,496	$	280,595
DBUBS 2011-LC3 Mortgage Trust, Class A2, Series 2011-LC3A, 3.64%, 08/10/44		1,050,000		1,104,093
GMACM Mortgage Loan Trust 2003-J7, Class A10, Series 2003-J7, 5.50%, 11/25/33		1,115,518		1,155,068
GMACM Mortgage Loan Trust 2004-AR1, Class 12A, Series 2004-AR1, 3.17%, 06/25/34@		476,319		487,188
GSR Mortgage Loan Trust, Class 2A2, Series 2007-1F, 5.50%, 01/25/37		47,335		44,945
JPMorgan Chase Commercial Mortgage Securities Trust 2006-LDP7, Class AM, Series 2006-LDP7, 5.87%, 04/15/45@		1,190,000		1,312,710
JPMorgan Chase Commercial Mortgage Securities Trust 2006-LDP9, Class A3, Series 2006-LDP9, 5.34%, 05/15/47		745,000		816,666
JPMorgan Chase Commercial Mortgage Securities Trust 2007-LDP10, Class AM, Series 2007-LDPX, 5.46%, 01/15/49@		275,000		285,085
JPMorgan Chase Commercial Mortgage Securities Trust 2007-LDP12, Class A4, Series 2007-LD12, 5.88%, 02/15/51@		500,000		560,490
LB Commercial Mortgage Trust 2007-C3, Class A4, Series 2007-C3, 5.89%, 07/15/44@		610,000		684,326
LB-UBS Commercial Mortgage Trust 2007-C6, Class A4, Series 2007-C6, 5.86%, 07/15/40@		1,095,084		1,192,632
MASTR Asset Securitization Trust 2004-6, Class 4A1, Series 2004-6, 5.00%, 07/25/19		157,858		164,436
Merrill Lynch Mortgage Trust 2006-C1, Class AM, Series 2006-C1, 5.69%, 05/12/39@		420,000		453,356
Morgan Stanley Capital I Trust 2007-IQ14, Class A4, Series 2007-IQ14, 5.69%, 04/15/49@		800,000		887,429
RALI Series 2003-QS22 Trust, Class A3, Series 2003-QS22, 5.38%, 12/26/33		291,249		299,542
RALI Series 2004-QS8 Trust, Class A6, Series 2004-QS8, 5.50%, 06/25/34		478,702		494,374
Structured Asset Securities Corp., Class 2A, Series 2003-37A, 3.54%, 12/25/33@		194,116		193,421
Structured Asset Securities Corp. Mortgage Pass-Through Certificates SER 2003-33h, Class 1A1, Series 2003-33H, 5.50%, 10/25/33		614,661		631,426

See accompanying Notes to Financial Statements.

67

ADVISORSHARES
NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Principal		Value
Fixed Income — 20.0% (continued)
Wachovia Bank Commercial Mortgage Trust Series 2005-C20, Class AMFX, Series 2005-C20, 5.18%, 07/15/42@	$	300,000	$	318,573
Wachovia Bank Commercial Mortgage Trust Series 2007-C31, Class AM, Series 2007-C31, 5.59%, 04/15/47@		1,100,000		1,200,091
WaMu Mortgage Pass-Through Certificates, Class A1, Series 2003-AR6, 2.44%, 06/25/33@		330,924		336,117
Wells Fargo Mortgage Backed Securities 2003-J Trust, Class 5A1, Series 2003-J, 2.49%, 10/25/33@		336,166		336,637
Wells Fargo Mortgage Backed Securities 2004-A Trust, Class A1, Series 2004-A, 3.30%, 02/25/34@		398,217		401,296
Wells Fargo Mortgage Backed Securities 2004-K Trust, Class 1A2, Series 2004-K, 2.62%, 07/25/34@		687,459		689,093
Wells Fargo Mortgage Backed Securities 2004-K Trust, Class 2A12, Series 2004-K, 4.74%, 07/25/34@		294,157		295,576
Wells Fargo Mortgage Backed Securities 2004-Z Trust, Class 2A1, Series 2004-Z, 2.61%, 12/25/34@		309,588		313,076
Wells Fargo Mortgage Backed Securities 2006-16 Trust, Class A5, Series 2006-16, 5.00%, 11/25/36		222,670		229,438
Total Fixed Income				19,768,690
Industrials — 2.2%
America West Airlines 2000-1 Pass-Through Trust, Series 001G, 8.06%, 07/02/20		187,245		200,352
America West Airlines 2001-1 Pass-Through Trust, Series 011G, 7.10%, 04/02/21		654,770		700,604
Continental Airlines 1999-2 Class C-2 Pass-Through Trust, Series AMBC, 6.24%, 03/15/20		282,978		310,569
Continental Airlines 2000-1 Class A-1 Pass-Through Trust, Series 00A1, 8.05%, 11/01/20		343,851		393,262
Northwest Airlines 2002-1 Class G-2 Pass-Through Trust, Series 02-1, 6.26%, 11/20/21		505,896		540,081
Total Industrials				2,144,868

See accompanying Notes to Financial Statements.

68

ADVISORSHARES
NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Principal		Value
Non-Agency Mortgage-Backed Securities — 2.5%
Alternative Loan Trust 2004-22cb, Class 1A1, Series 2004-22CB, 6.00%, 10/25/34	$	238,437	$	243,990
Bear Stearns Commercial Mortgage Securities Trust 2006-PWR14, Class AM, Series 2006-PW14, 5.24%, 12/11/38		185,000		201,434
Commercial Mortgage Trust 2007-GG9, Class A4, Series 2007-GG9, 5.44%, 01/10/17		500,000		550,006
JPMorgan Chase Commercial Mortgage Securities Trust 2006-LDP7, Class A4, Series 2006-LDP7, 5.87%, 04/15/45@		150,000		163,922
Morgan Stanley Capital I Trust 2006-IQ12, Class A4, Series 2006-IQ12, 5.33%, 12/15/43		496,661		542,644
Morgan Stanley Capital I Trust 2007-IQ14, Class AM, Series 2007-IQ14, 5.70%, 04/15/49@		226,000		234,548
Sequoia Mortgage Trust 2012-3, Class A1, Series 2012-3, 3.50%, 07/25/42@		585,393		573,186
Total Non-Agency Mortgage-Backed Securities				2,509,730
Residential Mortgage Backed Securities — 1.9%
Banc of America Funding 2004-A Trust, Class 5A1, Series 2004-A, 2.37%, 07/20/34@		443,407		439,781
Banc of America Mortgage Trust 2004-7, Class 6A3, Series 2004-7, 4.50%, 08/25/19		1,384,915		1,405,130
Total Residential Mortgage Backed Securities				1,844,911
Total Mortgage Backed Securities (Cost $38,874,817)				38,299,490
U.S. TREASURY NOTES — 7.3%
U.S. Treasury Note, 0.25%, 05/31/15		2,000,000		2,001,054
U.S. Treasury Note, 0.38%, 06/30/15		2,500,000		2,505,370
U.S. Treasury Note, 0.25%, 07/31/15		2,750,000		2,750,107
Total U.S. Treasury Notes (Cost $7,247,496)				7,256,531
U.S. GOVERNMENT AGENCY SECURITIES — 3.3%
Federal Home Loan Mortgage Corporation, Class J, Series 2012-4011, 4.00%, 12/15/41		959,116		964,343
Federal National Mortgage Association, Class NA, Series 2009-36, 5.00%, 06/25/37		269,750		291,946
Federal National Mortgage Association, Class PA, Series 2012-10, 4.00%, 11/25/41		735,282		756,939

See accompanying Notes to Financial Statements.

69

ADVISORSHARES
NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Principal		Value
U.S. GOVERNMENT AGENCY SECURITIES — 3.3% (continued)
Government National Mortgage Association, Class G, Series 2009-46, 4.50%, 09/20/34	$	520,211	$	535,212
Government National Mortgage Association, Class CA, Series 2009-22, 4.50%, 12/16/35		291,939		300,989
Government National Mortgage Association, Class KA, Series 2011-140, 4.00%, 03/20/37		357,348		367,581
Total U.S. Government Agency Securities (Cost $3,230,363)				3,217,010
TERM LOANS — 7.6%
Consumer Discretionary — 3.2%
Boyd Gaming Corp., 4.00%, 08/14/20@		198,503		199,402
Caesars Entertainment Corp., 9.50%, 10/31/16@		222,680		224,807
CBAC Borrower LLC, 8.25%, 07/02/20@		200,000		207,188
CityCenter Holdings LLC, 5.00%, 10/16/20@		125,000		127,079
Dell, Inc., 4.50%, 04/29/20@		135,000		135,627
Hilton Worldwide Finance LLC, 3.75%, 10/26/20@		182,368		184,225
Landry's, Inc., 4.75%, 04/24/18@		216,533		218,478
Leslie's Poolmart, Inc., 4.25%, 10/16/19@		198,493		199,608
MGM Resorts International, 3.50%, 12/20/19@		121,083		121,499
Scientific Games International, Inc., 4.25%, 10/18/20@		140,000		140,473
Seminole Hard Rock Entertainment, Inc.,3.50%, 05/14/20@		59,700		59,824
Seven Seas Cruises S. DE R.L., 4.75%, 12/21/18@		225,000		228,094
SRAM LLC, 4.00%, 04/10/20@		212,232		212,585
SRAM LLC, 5.25%, 04/10/20@		4,472		4,480
Univision Communications, Inc., 4.00%, 03/01/20@		413,420		415,917
Univision Communications, Inc., 4.50%, 03/01/20@		223,313		224,987
Zuffa LLC, 4.50%, 02/25/20@		222,750		224,768
Total Consumer Discretionary				3,129,041
Consumer Staples — 0.5%
Hostess Brands, Inc., 6.75%, 04/09/20@		225,000		233,438
Rite Aid Corp., 4.00%, 02/21/20@		223,872		225,177
Total Consumer Staples				458,615

See accompanying Notes to Financial Statements.

70

ADVISORSHARES
NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Principal		Value
Diversified Media — 0.2%
Tribune Company, 0.00%, 11/20/20@(b)	$	171,000	$	170,332
Health Care — 0.4%
Davita, Inc., 4.00%, 11/01/19@		222,750		224,838
IASIS Healthcare LLC, 4.50%, 05/03/18@		222,750		225,024
Total Health Care				449,862
Industrials — 0.9%
Air Canada, 5.50%, 09/26/19@		235,000		239,015
Avis Budget Car Rental LLC, 3.00%, 03/15/19@		198,500		198,574
Doncasters Group Ltd., 5.50%, 04/09/20@		272,938		276,292
Fieldwood Energy LLC, 3.88%, 09/28/18@		25,935		26,153
Filtration Group, Inc., 4.50%, 11/20/20@		53,000		53,630
McJunkin Red Man Corp., 5.00%, 11/08/19@		86,000		87,371
Total Industrials				881,035
Information Technology — 1.6%
Alcatel-Lucent USA Inc., 5.75%, 01/30/19@		198,496		199,725
Blue Coat Systems, Inc., 4.50%, 05/31/19@		209,475		210,522
CDW LLC, 3.25%, 04/29/20@		347,686		347,283
First Data Corp., 4.16%, 03/23/18@		250,000		250,815
Interactive Data Corp., 3.75%, 02/11/18@		224,503		225,119
Ion Trading Technologies Ltd., 4.50%, 05/22/20@		208,950		210,811
Kronos Inc., 4.50%, 10/30/19@		4,986		5,039
Spansion LLC, 0.00%, 12/18/19@(b)		123,000		123,461
Total Information Technology				1,572,775
Materials — 0.4%
FMG Resources (August 2006) Pty LTD (FMG America Finance, Inc.), 4.25%, 06/30/19@		222,750		225,952
Ineos US Finance LLC, 4.00%, 05/04/18@		198,743		199,779
Total Materials				425,731
Telecommunication Services — 0.4%
Level 3 Financing, Inc., 4.00%, 01/15/20@		225,000		227,063
Windstream Corp., 3.50%, 01/23/20@		222,750		223,516
Total Telecommunication Services				450,579
Total Term Loans (Cost $7,529,567)				7,537,970

See accompanying Notes to Financial Statements.

71

ADVISORSHARES
NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Shares		Value
MONEY MARKET FUND — 1.3%
BofA Cash Reserves Money Market Fund – Capital Class — 0.02%,(c) (Cost $1,259,188)	$	1,259,188	$	1,259,188
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 1.2%
BNY Mellon Securities Lending Overnight Fund, 0.09%(d) (Cost $1,133,630)		1,133,630		1,133,630
Total Investments — 100.5% (Cost $100,049,424)				99,338,656
Liabilities in Excess of Other Assets — (0.5%)				(515,242	)
Net Assets — 100.0%			$	98,823,414

PLC —  Public Limited Company

† Less than 0.05%

‡ 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 December 31, 2013.

# Represents step coupon bond. Rate shown reflects the rate in effect as of December 31, 2013.

(a) All or a portion of security is on loan. The aggregate market value of the securities on loan is $1,105,478; the aggregate market value of the collateral held by the fund is $1,133,630.

(b) This Loan will settle after December 31, 2013 at which time the interest rate will be determined.

(c) Rate shown reflects the 7-day yield as of December 31, 2013.

(d) Rate shown reflects the 1-day yield as of December 31, 2013.

See accompanying Notes to Financial Statements.

72

ADVISORSHARES
NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Asset Backed Securities		11.5	%
Commercial Mortgage Backed Securities		12.2
Communications		0.8
Consumer Discretionary		5.1
Consumer Staples		0.5
Consumer, Cyclical		1.0
Consumer, Non-cyclical		0.3
Diversified		0.0†
Diversified Media		0.2
Energy		2.2
Financials		13.8
Fixed Income		20.0
Foreign Government		0.4
Health Care		1.3
Industrials		7.9
Information Technology		2.1
Materials		1.6
Non-Agency Mortgage-Backed Securities		2.5
Residential Mortgage Backed Securities		1.9
Telecommunication		0.1
Telecommunication Services		1.6
U.S. Government Agency Securities		3.3
U.S. Treasury Notes		7.3
Utilities		0.4
Money Market Fund		2.5
Total Investments		100.5
Liabilities in Excess of Other Assets		(0.5	)
Net Assets		100.0	%

† Less than 0.05%

See accompanying Notes to Financial Statements.

73

ADVISORSHARES
PERITUS HIGH YIELD ETF
Schedule of Investments

December 31, 2013 (Unaudited)

Investments	Principal		Value
CORPORATE BONDS — 64.6%
Advertising — 2.7%
Affinion Group, Inc., 7.88%, 12/15/18(a)	$	8,825,000	$	7,986,625
Sitel Worldwide Corp., 11.00%, 08/01/17‡		4,000,000		4,290,000
Total Advertising				12,276,625
Aerospace/Defense — 1.5%
Erickson Air-Crane, Inc., 8.25%, 05/01/20‡(a)		6,795,000		7,066,800
Agriculture — 2.3%
North Atlantic Trading Co., 11.50%, 07/15/16‡		3,770,000		4,109,300
Southern States Cooperative, Inc., 10.00%, 08/15/21‡		6,650,000		6,467,125
Total Agriculture				10,576,425
Auto Manufacturers — 1.6%
Navistar International Corp., 8.25%, 11/01/21(a)		7,273,000		7,563,920
Beverages — 1.6%
Innovation Ventures LLC/Innovation Ventures Finance Corp., 9.50%, 08/15/19‡(a)		7,325,000		7,141,875
Coal — 3.2%
Arch Coal, Inc., 9.88%, 06/15/19		8,445,000		7,558,275
Murray Energy Corp., 8.63%, 06/15/21‡		7,010,000		7,290,400
Total Coal				14,848,675
Commercial Services — 3.5%
DynCorp International, Inc., 10.38%, 07/01/17(a)		5,829,000		5,989,297
Harland Clarke Holdings Corp., 9.50%, 05/15/15		4,481,000		4,506,206
Harland Clarke Holdings Corp., 9.75%, 08/01/18‡		1,200,000		1,306,500
StoneMor Partners LP/Cornerstone Family Services of WV, 7.88%, 06/01/21‡		3,915,000		4,091,175
Total Commercial Services				15,893,178
Computers — 1.2%
Stream Global Services, Inc., 11.25%, 10/01/14		5,549,000		5,576,745
Diversified Financial Services — 2.5%
CNG Holdings, Inc./OH, 9.38%, 05/15/20‡		6,874,000		6,358,450
GFI Group, Inc., 10.38%, 07/19/18#(a)		4,825,000		5,030,062
Total Diversified Financial Services				11,388,512
Electronics — 1.5%
KEMET Corp., 10.50%, 05/01/18		6,760,000		6,709,300
Entertainment — 1.2%
Gibson Brands, Inc., 8.88%, 08/01/18‡		5,220,000		5,533,200

See accompanying Notes to Financial Statements.

74

ADVISORSHARES
PERITUS HIGH YIELD ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Principal		Value
Environmental Control — 3.6%
Casella Waste Systems, Inc., 7.75%, 02/15/19	$	5,114,000	$	5,267,420
EnergySolutions, Inc./EnergySolutions LLC, 10.75%, 08/15/18		4,050,000		4,343,625
Nuverra Environmental Solutions, Inc., 9.88%, 04/15/18(a)		6,880,000		6,742,400
Total Environmental Control				16,353,445
Food — 4.3%
American Seafoods Group LLC/American Seafoods Finance, Inc., 10.75%, 05/15/16‡		6,895,000		7,170,800
Simmons Foods, Inc., 10.50%, 11/01/17‡		5,930,000		6,330,275
SUPERVALU, Inc., 6.75%, 06/01/21(a)		6,150,000		6,103,875
Total Food				19,604,950
Forest Products & Paper — 1.1%
Verso Paper Holdings LLC/Verso Paper, Inc., 11.75%, 01/15/19		4,750,000		5,058,750
Healthcare – Products — 1.2%
Kinetic Concepts, Inc./KCI USA, Inc., 12.50%, 11/01/19(a)		4,790,000		5,436,650
Healthcare – Services — 5.3%
Kindred Healthcare, Inc., 8.25%, 06/01/19		2,705,000		2,894,350
Radiation Therapy Services, Inc., 8.88%, 01/15/17		5,905,000		5,993,575
Radnet Management, Inc., 10.38%, 04/01/18(a)		3,955,000		3,964,888
Select Medical Corp., 6.38%, 06/01/21		5,330,000		5,236,725
Vantage Oncology LLC/Vantage Oncology Finance Co., 9.50%, 06/15/17‡		6,160,000		6,344,800
Total Healthcare – Services				24,434,338
Household Products/Wares — 1.2%
Central Garden & Pet Co., 8.25%, 03/01/18		5,820,000		5,689,050
Leisure Time — 1.3%
ICON Health & Fitness, 11.88%, 10/15/16‡(a)		6,850,000		6,130,750
Metal Fabricate/Hardware — 1.6%
American Piping Products, Inc., 12.88%, 11/15/17‡		7,405,000		7,293,925
Mining — 1.4%
Molycorp, Inc., 10.00%, 06/01/20(a)		6,565,000		6,548,588
Miscellaneous Manufacturing — 1.9%
Iracore International Holdings, Inc., 9.50%, 06/01/18‡(a)		3,255,000		3,434,025
J.B. Poindexter & Co., Inc., 9.00%, 04/01/22‡		5,093,000		5,462,242
Total Miscellaneous Manufacturing				8,896,267

See accompanying Notes to Financial Statements.

75

ADVISORSHARES
PERITUS HIGH YIELD ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Principal		Value
Oil & Gas — 3.7%
Quicksilver Resources, Inc., 9.13%, 08/15/19(a)	$	6,175,000	$	6,298,500
Talos Production LLC/Talos Production Finance, Inc., 9.75%, 02/15/18‡		3,800,000		3,904,500
Venoco, Inc., 8.88%, 02/15/19		6,740,000		6,672,600
Total Oil & Gas				16,875,600
Oil & Gas Services — 2.9%
Forbes Energy Services Ltd., 9.00%, 06/15/19		7,060,000		6,954,100
Seitel, Inc., 9.50%, 04/15/19		6,185,000		6,277,775
Total Oil & Gas Services				13,231,875
Packaging & Containers — 0.9%
Exopack Holding Corp., 10.00%, 06/01/18‡		3,904,000		4,255,360
Retail — 1.0%
Ferrellgas Partners LP, 8.63%, 06/15/20		4,552,000		4,813,740
Software — 1.4%
Southern Graphics, Inc., 8.38%, 10/15/20‡		5,975,000		6,214,000
Storage/Warehousing — 1.0%
Niska Gas Storage Partners LLC, 8.88%, 03/15/18		4,350,000		4,545,750
Telecommunications — 6.8%
Cincinnati Bell, Inc., 8.75%, 03/15/18		5,255,000		5,544,025
EarthLink, Inc., 7.38%, 06/01/20		4,230,000		4,240,575
EarthLink, Inc., 8.88%, 05/15/19(a)		5,430,000		5,375,700
Fairpoint Communications, Inc., 8.75%, 08/15/19‡		5,150,000		5,484,750
Frontier Communications Corp., 7.63%, 04/15/24		5,680,000		5,694,200
NII Capital Corp., 10.00%, 08/15/16(a)		9,560,000		5,114,600
Total Telecommunications				31,453,850
Transportation — 1.2%
Era Group, Inc., 7.75%, 12/15/22		5,415,000		5,604,525
Total Corporate Bonds (Cost $293,285,756)				297,016,668
FOREIGN BONDS — 19.3%
Airlines — 1.5%
Air Canada, 8.75%, 04/01/20 (Canada)‡		6,465,000		6,901,387
Beverages — 1.3%
CEDC Finance Corp. International, Inc., 8.00%, 04/30/18 (Poland)		6,635,000		6,186,447
Environmental Control — 2.6%
Tervita Corp., 8.00%, 11/15/18 (Canada)‡		6,685,000		6,935,687
Tervita Corp., 10.88%, 02/15/18 (Canada)‡		4,750,000		4,850,938
Total Environmental Control				11,786,625

See accompanying Notes to Financial Statements.

76

ADVISORSHARES
PERITUS HIGH YIELD ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Principal/ Shares		Value
Forest Products & Paper — 2.0%
Exopack Holdings SA, 7.88%, 11/01/19‡	$	2,800,000	$	2,870,000
Millar Western Forest Products Ltd., 8.50%, 04/01/21 (Canada)		6,150,000		6,349,875
Total Forest Products & Paper				9,219,875
Mining — 2.9%
HudBay Minerals, Inc., 9.50%, 10/01/20 (Canada)		6,160,000		6,360,200
HudBay Minerals, Inc., 9.50%, 10/01/20 (Canada)‡		500,000		512,500
IAMGOLD Corp., 6.75%, 10/01/20 (Canada)‡		7,675,000		6,638,875
Total Mining				13,511,575
Miscellaneous Manufacturing — 1.3%
Trinseo Materials Operating SCA/Trinseo Materials Finance, Inc., 8.75%, 02/01/19 (Luxembourg)‡		5,660,000		5,872,250
Oil & Gas — 3.2%
Connacher Oil And Gas Ltd., 8.50%, 08/01/19 (Canada)‡(a)		9,450,000		6,544,125
Lightstream Resources Ltd., 8.63%, 02/01/20 (Canada)‡		7,945,000		8,064,175
Total Oil & Gas				14,608,300
Telecommunications — 1.4%
NII International Telecom SCA, 11.38%, 08/15/19 (Luxembourg)‡(a)		7,605,000		6,388,200
Transportation — 3.1%
CHC Helicopter SA, 9.25%, 10/15/20 (Luxembourg)		2,486,000		2,691,095
CHC Helicopter SA, 9.38%, 06/01/21 (Luxembourg)(a)		5,790,000		5,963,700
Navios Maritime Holdings, Inc., 8.13%, 02/15/19 (Marshall Islands)(a)		5,497,000		5,675,653
Total Transportation				14,330,448
Total Foreign Bonds (Cost $87,520,555)				88,805,107
COMMON STOCKS — 1.9%
Oil & Gas — 1.0%
Canadian Oil Sands Ltd. (Canada)(a)		235,575		4,431,166
Pipelines — 0.9%
Niska Gas Storage Partners LLC		283,672		4,186,999
Total Common Stocks (Cost $8,552,701)				8,618,165
TERM LOANS — 12.0%
Apparel — 1.5%
SK Spice Sarl, 9.50%, 09/30/18 (Luxembourg)		7,000,000		6,978,125
Commercial Services — 1.0%
Harland Clarke Holdings Corp., 7.00%, 05/22/18		4,471,875		4,513,396

See accompanying Notes to Financial Statements.

77

ADVISORSHARES
PERITUS HIGH YIELD ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Principal/ Shares		Value
Environmental Control — 1.0%
GSE Environmental, Inc., 9.00%, 05/27/16	$	5,092,559	$	4,710,617
Oil & Gas — 1.6%
Teine Energy Ltd, 7.50%, 05/17/19 (Canada)		6,964,912		7,069,386
Retail — 2.2%
Collective Brands Inc., 7.25%, 10/09/19		5,984,925		6,014,789
Hudson’s Bay Co., 8.25%, 11/04/21 (Canada)		4,000,000		4,070,760
Total Retail				10,085,549
Software — 1.3%
Vitera Healthcare Solutions LLC, 9.25%, 11/04/21		6,000,000		6,060,000
Telecommunications — 2.2%
Avaya Inc., 8.00%, 03/31/18		3,000,000		3,049,500
Global Tel*Link Corp, 9.00%, 11/20/20		7,375,000		7,061,563
Total Telecommunications				10,111,063
Transportation — 1.2%
YRC Worldwide, Inc., 10.00%, 03/31/15		5,753,766		5,638,691
Total Term Loans (Cost $54,953,210)				55,166,827
MONEY MARKET FUND — 3.1%
BlackRock Liquidity Funds TempFund Portfolio – Dollar Class, 0.04%(b) (Cost $14,350,886)		14,350,886		14,350,886
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 12.9%
BNY Mellon Securities Lending Overnight Fund, 0.09%(c) (Cost $59,608,290)		59,608,290		59,608,290
Total Investments — 113.8% (Cost $518,271,398)				523,565,943
Liabilities in Excess of Other Assets — (13.8%)				(63,502,276	)
Net Assets — 100.0%			$	460,063,667

LP — Limited Partnership

‡ 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.

# Represents step coupon bond. Rate shown reflects the rate in effect at December 31, 2013.

(a) All or a portion of security is on loan. The aggregate market value of the securities on loan is $58,140,108; the aggregate market value of the collateral held by the fund is $59,608,290.

(b) Rate shown reflects the 7-day yield as of December 31, 2013.

(c) Rate shown reflects the 1-day yield as of December 31, 2013.

See accompanying Notes to Financial Statements.

78

ADVISORSHARES
PERITUS HIGH YIELD ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Advertising		2.7	%
Aerospace/Defense		1.5
Agriculture		2.3
Airlines		1.5
Apparel		1.5
Auto Manufacturers		1.6
Beverages		2.9
Coal		3.2
Commercial Services		4.5
Computers		1.2
Diversified Financial Services		2.5
Electronics		1.5
Entertainment		1.2
Environmental Control		7.2
Food		4.3
Forest Products & Paper		3.1
Healthcare – Products		1.2
Healthcare – Services		5.3
Household Products/Wares		1.2
Leisure Time		1.3
Metal Fabricate/Hardware		1.6
Mining		4.3
Miscellaneous Manufacturing		3.2
Oil & Gas		9.5
Oil & Gas Services		2.9
Packaging & Containers		0.9
Pipelines		0.9
Retail		3.2
Software		2.7
Storage/Warehousing		1.0
Telecommunications		10.4
Transportation		5.5
Money Market Fund		16.0
Total Investments		113.8
Liabilities in Excess of Other Assets		(13.8	)
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

79

ADVISORSHARES
PRING TURNER BUSINESS CYCLE ETF
Schedule of Investments

December 31, 2013 (Unaudited)

Investments	Shares		Value
COMMON STOCKS — 56.3%
Banks — 4.2%
Royal Bank of Canada (Canada)		1,673	$	112,476
Wells Fargo & Co.		2,399		108,914
Total Banks				221,390
Coal — 2.0%
Alliance Resource Partners, LP		1,373		105,721
Commercial Services — 2.9%
Apollo Education Group, Inc., Class A*		5,556		151,790
Electric — 1.2%
MDU Resources Group, Inc.		2,047		62,536
Holding Companies – Diversified — 1.9%
Leucadia National Corp.		3,594		101,854
Insurance — 4.9%
American International Group, Inc.		2,513		128,289
Aon PLC (United Kingdom)		1,545		129,610
Total Insurance				257,899
Iron/Steel — 2.3%
Reliance Steel & Aluminum Co.		1,611		122,178
Mining — 9.5%
Alamos Gold, Inc. (Canada)		6,755		81,938
First Majestic Silver Corp. (Canada)*		7,997		78,370
Franco-Nevada Corp. (Canada)		2,363		96,269
Royal Gold, Inc.		1,926		88,731
Sandstorm Gold Ltd. (Canada)*(a)		15,910		67,936
Silver Wheaton Corp. (Canada)		4,500		90,855
Total Mining				504,099
Oil & Gas — 6.7%
Enerplus Corp. (Canada)(a)		7,321		133,096
Seadrill Ltd. (Norway)		2,385		97,976
Whiting Petroleum Corp.*		1,955		120,956
Total Oil & Gas				352,028

See accompanying Notes to Financial Statements.

80

ADVISORSHARES
PRING TURNER BUSINESS CYCLE ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Shares		Value
Pharmaceuticals — 2.0%
Pfizer, Inc.		3,478	$	106,531
Pipelines — 3.6%
Kinder Morgan, Inc.		2,559		92,124
Spectra Energy Corp.		2,765		98,489
Total Pipelines				190,613
Semiconductors — 2.5%
Intel Corp.		5,076		131,773
Software — 4.4%
Microsoft Corp.		2,998		112,215
Paychex, Inc.		2,591		117,968
Total Software				230,183
Telecommunications — 3.7%
Cisco Systems, Inc.		4,394		98,645
Verizon Communications, Inc.		1,996		98,084
Total Telecommunications				196,729
Transportation — 4.5%
Navios Maritime Partners, LP (Greece)		7,084		135,446
Union Pacific Corp.		604		101,472
Total Transportation				236,918
Total Common Stocks (Cost $2,833,330)				2,972,242
EXCHANGE TRADED FUNDS — 21.5%
Debt Fund — 18.8%
AdvisorShares Peritus High Yield ETF†(a)		5,023		259,790
Guggenheim BulletShares 2015 High Yield Corporate Bond ETF(a)		9,466		253,500
iShares 20+ Year Treasury Bond ETF(a)		1,734		176,625
PIMCO Enhanced Short Maturity ETF		500		50,650
PowerShares Senior Loan Portfolio		10,097		251,213
Total Debt Fund				991,778
Equity Fund — 2.7%
SPDR S&P International Dividend ETF		3,083		146,289
Total Exchange Traded Funds (Cost $1,167,925)				1,138,067

See accompanying Notes to Financial Statements.

81

ADVISORSHARES
PRING TURNER BUSINESS CYCLE ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Shares		Value
MONEY MARKET FUND — 21.0%
Dreyfus Government Cash Management – Investor Shares, 0.01%(b)
(Cost $1,107,664)		1,107,664	$	1,107,664
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 9.0%
BNY Mellon Securities Lending Overnight Fund, 0.09%(c)
(Cost $474,323)		474,323		474,323
Total Investments — 107.8% (Cost $5,583,242)				5,692,296
Liabilities in Excess of Other Assets — (7.8)%				(411,073	)
Net Assets — 100.0%			$	5,281,223

LP — Limited Partnership

PLC — Public Limited Company

ETF — Exchange Traded Fund

* Non-income producing security

† Affiliated Company

(a) All or a portion of security is on loan. The aggregate market value of the securities on loan is $452,537; the aggregate market value of the collateral held by the fund is $474,323.

(b) Rate shown reflects the 7-day yield as of December 31, 2013.

(c) Rate shown reflects the 1-day yield as of December 31, 2013.

See accompanying Notes to Financial Statements.

82

ADVISORSHARES
PRING TURNER BUSINESS CYCLE ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Banks		4.2	%
Coal		2.0
Commercial Services		2.9
Debt Fund		18.8
Electric		1.2
Equity Fund		2.7
Holding Companies – Diversified		1.9
Insurance		4.9
Iron/Steel		2.3
Mining		9.5
Oil & Gas		6.7
Pharmaceuticals		2.0
Pipelines		3.6
Semiconductors		2.5
Software		4.4
Telecommunications		3.7
Transportation		4.5
Money Market Fund		30.0
Total Investments		107.8
Liabilities in Excess of Other Assets		(7.8	)
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

83

ADVISORSHARES
QAM EQUITY HEDGE ETF
Schedule of Investments

December 31, 2013 (Unaudited)

Investments	Shares		Value
EXCHANGE TRADED NOTES — 0.6%
Equity Fund — 0.6%
iPath MSCI India Index ETN		287	$	16,348
JPMorgan Alerian MLP Index ETN		601		27,856
Total Exchange Traded Notes (Cost $41,450)				44,204
EXCHANGE TRADED FUNDS — 92.5%
Currency Fund — 0.9%
SPDR Gold Shares*		370		42,983
WisdomTree Brazilian Real Fund*		137		2,370
WisdomTree Indian Rupee Fund*		722		14,397
Total Currency Fund				59,750
Debt Fund — 25.9%
Guggenheim Enhanced Short Duration ETF		6,955		348,932
iShares Short Treasury Bond ETF(a)		4,090		450,923
PIMCO Enhanced Short Maturity ETF		3,441		348,573
SPDR Barclays 1–3 Month T-Bill ETF*(a)		9,822		449,553
SPDR SSgA Ultra Short Term Bond ETF		5,342		214,161
Total Debt Fund				1,812,142
Equity Fund — 65.7%
First Trust Dow Jones Internet Index Fund*		3,326		199,094
First Trust Europe AlphaDEX Fund		1,375		45,980
First Trust South Korea AlphaDEX Fund		409		11,534
Global X Brazil Consumer ETF		2,431		38,969
Global X Nigeria Index ETF		1,732		27,781
Guggenheim Canadian Energy Income ETF		411		6,046
Guggenheim China Small Cap Index ETF		8,146		217,009
Guggenheim China Technology ETF		1,886		66,142
Guggenheim Raymond James SB-1 Equity ETF		3,331		111,688
Guggenheim Russell 1000 Equal Weight ETF		5,397		251,122
Guggenheim S&P 500 Equal Weight ETF		9,637		686,636
Guggenheim S&P 500 Equal Weight Financials ETF		7,942		314,940
Guggenheim S&P 500 Equal Weight Healthcare ETF		100		11,042

See accompanying Notes to Financial Statements.

84

ADVISORSHARES
QAM EQUITY HEDGE ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Shares		Value
Equity Fund — 65.7% (continued)
Guggenheim S&P 500 Equal Weight Technology ETF		223	$	17,187
Guggenheim S&P Midcap 400 Pure Growth ETF		250		30,733
iShares Core S&P Small-Cap ETF		954		104,186
iShares Global Materials ETF		303		18,886
iShares Japan Large-Cap ETF		2,005		105,603
iShares Latin American 40 ETF		2,550		94,452
iShares Microcap ETF		1,143		85,976
iShares MSCI Brazil Small-Cap ETF		175		3,469
iShares MSCI EAFE ETF		517		34,670
iShares MSCI Europe Financials ETF		685		17,159
iShares MSCI Frontier 100 ETF		6,040		203,790
iShares MSCI Hong Kong ETF		757		15,594
iShares MSCI India Small-Cap ETF		1,466		32,487
iShares MSCI Israel Capped ETF		69		3,327
iShares MSCI Pacific Ex-Japan ETF		680		31,776
iShares MSCI Poland Capped ETF		503		14,929
iShares MSCI South Korea Capped ETF		156		10,089
iShares MSCI Taiwan ETF		923		13,310
iShares MSCI Thailand Capped ETF		289		19,840
iShares MSCI Turkey ETF		34		1,620
iShares MSCI United Kingdom ETF		642		13,405
iShares MSCI United Kingdom Small-Cap ETF		2,245		94,627
iShares MSCI USA Momentum Index Fund		4,330		259,930
iShares Nasdaq Biotechnology ETF		325		73,794
iShares North American Natural Resources ETF		4,296		186,403
iShares Russell 1000 Growth ETF		1,443		124,026
iShares Russell 1000 Value ETF		1,033		97,267
iShares Russell 2000 Growth ETF		2,768		375,092
iShares Russell 2000 Value ETF		261		25,970
iShares U.S. Medical Devices ETF		131		12,169
iShares U.S. Pharmaceuticals ETF		56		6,614
Market Vectors Agribusiness ETF		365		19,889
Market Vectors China ETF		196		6,237
Market Vectors Egypt Index ETF		160		8,581

See accompanying Notes to Financial Statements.

85

ADVISORSHARES
QAM EQUITY HEDGE ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Shares			Value
Equity Fund — 65.7% (continued)
Market Vectors Gulf States Index ETF		976		$	26,313
Market Vectors Indonesia Index ETF		1,344			28,573
Market Vectors Russia ETF		762			21,999
Market Vectors Russia Small-Cap ETF		1,705			72,599
Market Vectors Uranium+Nuclear Energy ETF		112			5,386
Market Vectors Vietnam ETF		89			1,672
PowerShares Dynamic Market Portfolio		630			43,004
PowerShares S&P SmallCap Financials Portfolio		478			18,943
PowerShares S&P SmallCap Health Care Portfolio		1,440			79,459
SPDR EURO STOXX 50 ETF		155			6,541
SPDR Russell/Nomura Small Cap Japan ETF		678			34,036
SPDR S&P Emerging Markets SmallCap ETF		844			39,170
WisdomTree Europe SmallCap Dividend Fund		1,249			72,267
Total Equity Fund					4,601,032
Total Exchange Traded Funds (Cost $5,988,243)					6,472,924
MONEY MARKET FUND — 10.7%
JP Morgan Prime Money Market Fund – Institutional Class, 0.01%(b) (Cost $752,139)		752,139			752,139
Total Investments Before Securities Sold, Not Yet Purchased (Cost $6,781,832)					7,269,267
Securities Sold, Not Yet Purchased — (6.1)%
EXCHANGE TRADED FUNDS — (6.1)%
Currency Fund — (6.1)%
CurrencyShares British Pound Sterling Trust*		(791	)		(129,092	)
CurrencyShares Euro Currency Trust*		(882	)		(119,943	)
CurrencyShares Japanese Yen Trust*		(1,937	)		(179,676	)
Total Securities Sold, Not Yet Purchased [Proceeds Received $(435,234)]					(428,711	)
Total Investments — 97.7% (Cost $6,346,598)					6,840,556
Other Assets in Excess of Liabilities — 2.3%					158,143
Net Assets — 100.0%				$	6,998,699

See accompanying Notes to Financial Statements.

86

ADVISORSHARES
QAM EQUITY HEDGE ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

ETF — Exchange Traded Fund

ETN — Exchange Traded Note

* Non-income producing security

(a) All or a portion of this security has been segregated as collateral for open short positions. The aggregate market value of the collateral posted was $1,052,481, which includes cash in the amount of $427,440 as of December 31, 2013.

(b) Rate shown reflects the 7-day yield as of December 31, 2013.

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Currency Fund		(5.2	)%
Debt Fund		25.9
Equity Fund		66.3
Money Market Fund		10.7
Total Investments		97.7
Other Assets in Excess of Liabilities		2.3
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

87

ADVISORSHARES
RANGER EQUITY BEAR ETF
Schedule of Investments

December 31, 2013 (Unaudited)

Investments	Shares			Value
MONEY MARKET FUND — 5.7%
Morgan Stanley Institutional Liquidity Funds – Government Portfolio, 0.04%(a)		7,500,000		$	7,500,000
Total Investments Before Securities Sold, Not Yet Purchased (Cost $7,500,000)
Securities Sold, Not Yet Purchased — (98.3)%
COMMON STOCKS — (98.3)%
Aerospace/Defense — (2.7)%
Triumph Group, Inc.		(45,691	)		(3,475,714	)
Beverages — (2.3)%
Green Mountain Coffee Roasters, Inc.*		(40,462	)		(3,058,118	)
Computers — (9.1)%
3D Systems Corp.*		(41,400	)		(3,847,302	)
Cadence Design Systems, Inc.*		(112,507	)		(1,577,348	)
International Business Machines Corp.		(34,700	)		(6,508,679	)
Total Computers					(11,933,329	)
Distribution/Wholesale — (6.0)%
Fastenal Co.		(74,400	)		(3,534,744	)
Fossil Group, Inc.*		(19,206	)		(2,303,568	)
LKQ Corp.*		(63,100	)		(2,075,990	)
Total Distribution/Wholesale					(7,914,302	)
Electronics — (1.8)%
National Instruments Corp.		(74,400	)		(2,382,288	)
Engineering & Construction — (1.9)%
MasTec, Inc.*		(75,896	)		(2,483,317	)
Healthcare – Products — (1.8)%
Haemonetics Corp.*		(55,688	)		(2,346,135	)
Home Furnishings — (3.8)%
Tempur Sealy International, Inc.*		(92,799	)		(5,007,434	)
Internet — (9.5)%
Equinix, Inc.*		(14,335	)		(2,543,746	)
Netflix, Inc.*		(6,387	)		(2,351,502	)
TripAdvisor, Inc.*		(17,437	)		(1,444,306	)
Yelp, Inc.*		(35,180	)		(2,425,661	)
Zillow, Inc., Class A*		(44,226	)		(3,614,591	)
Total Internet					(12,379,806	)

See accompanying Notes to Financial Statements.

88

ADVISORSHARES
RANGER EQUITY BEAR ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Shares			Value
Leisure Time — (2.1)%
Harley-Davidson, Inc.		(40,282	)	$	(2,789,126	)
Machinery – Construction & Mining — (3.4)%
Caterpillar, Inc.		(49,503	)		(4,495,367	)
Media — (2.7)%
Nexstar Broadcasting Group, Inc., Class A		(62,579	)		(3,487,528	)
Miscellaneous Manufacturing — (2.5)%
Eaton Corp. PLC (Ireland)		(17,000	)		(1,294,040	)
Pentair Ltd. (Switzerland)		(24,600	)		(1,910,682	)
Total Miscellaneous Manufacturing					(3,204,722	)
Oil & Gas — (1.7)%
Atlas Resource Partners LP		(110,544	)		(2,263,941	)
Oil & Gas Services — (1.8)%
Geospace Technologies Corp.*		(24,842	)		(2,355,767	)
Real Estate — (1.9)%
Brookfield Asset Management, Inc., Class A (Canada)		(64,500	)		(2,504,535	)
Real Estate Investment Trust — (2.1)%
American Tower Corp.		(33,984	)		(2,712,603	)
Retail — (14.7)%
Cabela's, Inc.*		(36,490	)		(2,432,423	)
Children's Place Retail Stores, Inc. (The)*		(32,300	)		(1,840,131	)
Conn's, Inc.*		(54,810	)		(4,318,480	)
Panera Bread Co., Class A*		(18,877	)		(3,335,377	)
PVH Corp.		(25,741	)		(3,501,291	)
Sally Beauty Holdings, Inc.*		(127,529	)		(3,855,202	)
Total Retail					(19,282,904	)
Semiconductors — (2.7)%
Altera Corp.		(67,058	)		(2,181,397	)
Cavium, Inc.*		(38,600	)		(1,332,086	)
Total Semiconductors					(3,513,483	)
Software — (3.6)%
Akamai Technologies, Inc.*		(47,000	)		(2,217,460	)
E2open, Inc.*		(106,165	)		(2,538,405	)
Total Software					(4,755,865	)

See accompanying Notes to Financial Statements.

89

ADVISORSHARES
RANGER EQUITY BEAR ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Shares			Value
Telecommunications — (15.6)%		��
Centurylink, Inc.		(173,500	)	$	(5,525,975	)
Consolidated Communications Holdings, Inc.		(222,682	)		(4,371,248	)
Frontier Communications Corp.		(542,300	)		(2,521,695	)
Palo Alto Networks, Inc.*		(55,963	)		(3,216,193	)
Ubiquiti Networks, Inc.*		(35,808	)		(1,645,736	)
Windstream Holdings, Inc.		(391,293	)		(3,122,518	)
Total Telecommunications					(20,403,365	)
Transportation — (4.6)%
C.H. Robinson Worldwide, Inc.		(60,300	)		(3,517,902	)
Genesee & Wyoming, Inc., Class A*		(25,617	)		(2,460,513	)
Total Transportation					(5,978,415	)
Total Securities Sold, Not Yet Purchased [Proceeds Received $(115,062,620)]					(128,728,064	)
Total Investments — (92.6)% [(Cost $(107,562,620))]					(121,228,064	)
Other Assets in Excess of Liabilities — 192.6%					252,109,009
Net Assets — 100.0%				$	130,880,945

LP — Limited Partnership

PLC — Public Limited Company

* Non-income producing security

(a) Rate shown reflects the 7-day yield as of December 31, 2013.

Cash of $130,039,600 has been segregated to cover margin requirement for open short sales as of December 31, 2013.

See accompanying Notes to Financial Statements.

90

ADVISORSHARES
RANGER EQUITY BEAR ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Aerospace/Defense		(2.7	)%
Beverages		(2.3	)
Computers		(9.1	)
Distribution/Wholesale		(6.0	)
Electronics		(1.8	)
Engineering & Construction		(1.9	)
Healthcare – Products		(1.8	)
Home Furnishings		(3.8	)
Internet		(9.5	)
Leisure Time		(2.1	)
Machinery – Construction & Mining		(3.4	)
Media		(2.7	)
Miscellaneous Manufacturing		(2.5	)
Oil & Gas		(1.7	)
Oil & Gas Services		(1.8	)
Real Estate		(1.9	)
Real Estate Investment Trust		(2.1	)
Retail		(14.7	)
Semiconductors		(2.7	)
Software		(3.6	)
Telecommunications		(15.6	)
Transportation		(4.6	)
Money Market Fund		5.7
Total Investments		(92.6	)
Other Assets in Excess of Liabilities		192.6
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

91

ADVISORSHARES
STAR GLOBAL BUY-WRITE ETF
Schedule of Investments

December 31, 2013 (Unaudited)

Investments	Shares		Value
EXCHANGE TRADED FUNDS — 66.8%
Commodity Fund — 4.2%
PowerShares DB Precious Metals Fund*		27,047	$	1,059,972
Debt Fund — 2.4%
iShares Barclays 20+ Year Treasury Bond ETF		1,528		155,642
iShares JPMorgan USD Emerging Markets Bond ETF		4,105		443,997
Total Debt Fund				599,639
Equity Fund — 60.2%
Consumer Discretionary Select Sector SPDR Fund		7,660		511,918
Consumer Staples Select Sector SPDR Fund		10,433		448,410
Energy Select Sector SPDR Fund		17,142		1,517,238
Financial Select Sector SPDR Fund		28,693		627,229
Health Care Select Sector SPDR Fund		9,131		506,223
Industrial Select Sector SPDR Fund		7,702		402,507
iShares MSCI EAFE ETF		18,635		1,249,663
iShares MSCI Emerging Markets ETF		28,628		1,195,792
Materials Select Sector SPDR Fund		2,855		131,958
SPDR S&P 500 ETF Trust		40,742		7,523,825
Technology Select Sector SPDR Fund		22,438		801,934
Utilities Select Sector SPDR Fund		3,253		123,516
Total Equity Fund				15,040,213
Total Exchange Traded Funds (Cost $15,910,866)				16,699,824
U.S. TREASURY BILLS — 8.0%
U.S. Treasury Bill, 0.06%, 08/21/14(b)		1,000,000		999,575
U.S. Treasury Bill, 0.07% 10/16/14(b)		1,000,000		999,452
Total U.S. Treasury Bills (Cost $1,998,749)				1,999,027
MONEY MARKET FUND — 13.6%
BlackRock Liquidity Funds-T-Fund Portfolio – Institutional Class, 0.01%(a) (Cost $3,391,161)		3,391,161		3,391,161

See accompanying Notes to Financial Statements.

92

ADVISORSHARES
STAR GLOBAL BUY-WRITE ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investment	Contracts			Value
PURCHASED PUT OPTION — 0.1%
SPDR S&P 500 ETF Trust Option expiring 03/22/14 @178.00 (Cost $32,354)		128		$	29,760
Total Investments Before Written Options — 88.5% (Cost $21,333,130)					22,119,772
WRITTEN CALL OPTIONS — (0.3)%
Energy Select Sector SPDR Fund Option expiring 01/18/14 @ $90.00		(39	)		(1,521	)
iShares 20+ Year Treasury Bond ETF Option expiring 02/22/14, Strike Price $105.00		(13	)		(644	)
iShares MSCI EAFE (EFA) Option expiring 01/18/14, Strike Price $68.00		(53	)		(1,881	)
iShares MSCI EAFE (EFA) Option expiring 02/22/14, Strike Price $68.00		(133	)		(11,638	)
iShares MSCI Emerging Markets ETF Option expiring 02/22/14, Strike Price $42.50		(143	)		(11,654	)
iShares MSCI Emerging Markets ETF Option expiring 01/18/14, Strike Price $43.50		(14	)		(203	)
iShares MSCI Emerging Markets ETF Option expiring 01/18/14, Strike Price $44.50		(129	)		(774	)
PowerShares DB Precious Metals Fund Option expiring 01/18/14, Strike Price $42.00		(60	)		(600	)
SPDR S&P 500 ETF Trust Option expiring 01/18/14, Strike Price $184.00		(115	)		(26,565	)
SPDR S&P 500 ETF Trust Option expiring 01/18/14, Strike Price $185.00		(180	)		(30,330	)
Total Written Call Options [Premiums Received $(54,177)]					(85,810	)

See accompanying Notes to Financial Statements.

93

ADVISORSHARES
STAR GLOBAL BUY-WRITE ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investment	Contracts			Value
WRITTEN PUT OPTIONS — (0.2)%
iShares 20+ Year Treasury Bond ETF Option expiring 01/18/14 @ $102.00		(3	)	$	(321	)
iShares 20+ Year Treasury Bond ETF Option expiring 01/18/14 @ $103.00		(162	)		(27,054	)
iShares iBoxx $ High Yield Corporate Bond ETF Option expiring 01/18/14 @ $93.00		(98	)		(4,900	)
iShares iBoxx $ High Yield Corporate Bond ETF Option expiring 02/22/14 @ $93.00		(100	)		(12,250	)
iShares JP Morgan USD Emerging Markets Bond ETF Option expiring 01/18/14 @ $108.00		(35	)		(2,450	)
iShares JP Morgan USD Emerging Markets Bond ETF Option expiring 01/18/14 @ $109.00		(39	)		(4,680	)
Total Written Put Options [Premiums Received $(65,202)]					(51,655	)
Total Written Options — (0.5)%
Premiums Received $(119,379)					(137,465	)
Total Investments — 88.0% (Cost $21,213,751)					21,982,307
Other Assets in Excess of Liabilities — 12.0%					3,001,846
Net Assets — 100.0%				$	24,984,153

ETF — Exchange Traded Fund

* Non-income producing security

(a) Rate shown reflects the 7-day yield as of December 31, 2013.

(b) All or a portion of this security has been pledged as collateral for option contracts. The aggregate market value of the collateral was $3,021,179, which includes cash in the amount of $1,040,429 as of December 31, 2013

See accompanying Notes to Financial Statements.

94

ADVISORSHARES
STAR GLOBAL BUY-WRITE ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Commodity Fund		4.2	%
Debt Fund		2.4
Equity Fund		60.2
U.S. Treasury Bills		8.0
Money Market Fund		13.6
Purchased Put Option		0.1
Written Call Options		(0.3	)
Written Put Options		(0.2	)
Total Investments		88.0
Other Assets in Excess of Liabilities		12.0
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

95

ADVISORSHARES
TRIMTABS FLOAT SHRINK ETF
Schedule of Investments

December 31, 2013 (Unaudited)

Investments	Shares		Value
COMMON STOCKS — 100.1%
Aerospace/Defense — 2.0%
Northrop Grumman Corp.		8,496	$	973,727
Rockwell Collins, Inc.		13,020		962,438
Total Aerospace/Defense				1,936,165
Agriculture — 2.0%
Archer-Daniels-Midland Co.		22,226		964,608
Philip Morris International, Inc.		11,176		973,765
Total Agriculture				1,938,373
Airlines — 2.0%
Alaska Air Group, Inc.		13,516		991,669
Southwest Airlines Co.		51,228		965,135
Total Airlines				1,956,804
Auto Manufacturers — 1.0%
Oshkosh Corp.		18,845		949,411
Auto Parts & Equipment — 1.0%
Delphi Automotive PLC (United Kingdom)		15,905		956,368
Banks — 1.0%
Capital One Financial Corp.		13,006		996,390
Beverages — 1.0%
Dr Pepper Snapple Group, Inc.		19,819		965,582
Biotechnology — 1.0%
Biogen Idec, Inc.*		3,435		960,941
Chemicals — 4.0%
Airgas, Inc.		8,601		962,022
Albemarle Corp.		15,126		958,837
Sigma-Aldrich Corp.		10,529		989,832
Valspar Corp. (The)		13,594		969,116
Total Chemicals				3,879,807
Commercial Services — 5.1%
Alliance Data Systems Corp.*		3,756		987,565
Cintas Corp.		17,293		1,030,490

See accompanying Notes to Financial Statements.

96

ADVISORSHARES
TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Shares		Value
Commercial Services — 5.1% (continued)
MasterCard, Inc., Class A		1,184	$	989,184
Moody's Corp.		12,617		990,056
Towers Watson & Co., Class A		7,762		990,509
Total Commercial Services				4,987,804
Computers — 5.1%
Apple, Inc.		1,728		969,598
EMC Corp.		40,489		1,018,298
International Business Machines Corp.		5,341		1,001,811
NetApp, Inc.		23,867		981,889
Teradata Corp.*		22,821		1,038,127
Total Computers				5,009,723
Cosmetics/Personal Care — 1.0%
Colgate-Palmolive Co.		14,857		968,825
Distribution/Wholesale — 1.0%
Arrow Electronics, Inc.*		18,384		997,332
Diversified Financial Services — 3.0%
American Express Co.		11,095		1,006,650
Franklin Resources, Inc.		17,095		986,894
Legg Mason, Inc.(a)		22,348		971,691
Total Diversified Financial Services				2,965,235
Electronics — 3.9%
Agilent Technologies, Inc.		16,752		958,047
Amphenol Corp., Class A		11,084		988,471
Garmin Ltd.		20,864		964,334
Mettler-Toledo International, Inc.*		3,851		934,214
Total Electronics				3,845,066
Food — 2.0%
General Mills, Inc.		19,647		980,582
Sysco Corp.		26,482		956,000
Total Food				1,936,582

See accompanying Notes to Financial Statements.

97

ADVISORSHARES
TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Shares		Value
Forest Products & Paper — 1.0%
Domtar Corp.		10,457	$	986,513
Hand/Machine Tools — 1.0%
Lincoln Electric Holdings, Inc.		13,188		940,832
Healthcare – Products — 4.9%
C.R. Bard, Inc.		7,141		956,466
CareFusion Corp.*		24,348		969,537
Henry Schein, Inc.*		8,440		964,354
Medtronic, Inc.		16,732		960,249
Varian Medical Systems, Inc.*		12,243		951,159
Total Healthcare - Products				4,801,765
Healthcare – Services — 1.0%
UnitedHealth Group, Inc.		13,104		986,731
Household Products/Wares — 1.0%
Clorox Co. (The)		10,140		940,586
Insurance — 6.0%
Allstate Corp. (The)		18,087		986,465
Aspen Insurance Holdings Ltd. (Bermuda)		23,496		970,620
Axis Capital Holdings Ltd. (Bermuda)		20,653		982,463
Everest Re Group Ltd. (Bermuda)		6,385		995,230
MBIA, Inc.*		84,972		1,014,565
Progressive Corp. (The)		36,055		983,220
Total Insurance				5,932,563
Internet — 3.0%
Expedia, Inc.		14,345		999,273
Liberty Interactive Corp., Class A*		33,647		987,540
Symantec Corp.		41,292		973,665
Total Internet				2,960,478
Leisure Time — 1.0%
Harley-Davidson, Inc.		14,112		977,115

See accompanying Notes to Financial Statements.

98

ADVISORSHARES
TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Shares		Value
Lodging — 4.0%
Las Vegas Sands Corp.		12,356	$	974,518
Marriott International, Inc., Class A		19,998		987,101
Starwood Hotels & Resorts Worldwide, Inc.		12,230		971,674
Wynn Resorts Ltd.		5,230		1,015,718
Total Lodging				3,949,011
Machinery – Construction & Mining — 2.1%
Caterpillar, Inc.		10,848		985,107
Joy Global, Inc.		17,696		1,035,039
Total Machinery – Construction & Mining				2,020,146
Machinery – Diversified — 2.0%
IDEX Corp.		13,272		980,137
Rockwell Automation, Inc.		8,447		998,098
Total Machinery – Diversified				1,978,235
Media — 6.0%
CBS Corp., Class B		15,768		1,005,052
DIRECTV*		14,452		998,489
Sirius XM Holdings, Inc.*		275,402		961,153
Time Warner Cable, Inc.		7,116		964,218
Time Warner, Inc.		14,076		981,379
Viacom, Inc., Class B		11,442		999,344
Total Media				5,909,635
Miscellaneous Manufacturing — 4.0%
Illinois Tool Works, Inc.		11,814		993,321
Ingersoll-Rand PLC (Ireland)		16,212		998,659
Leggett & Platt, Inc.		31,533		975,631
Pentair Ltd. (Switzerland)		12,941		1,005,128
Total Miscellaneous Manufacturing				3,972,739
Oil & Gas — 3.1%
Marathon Petroleum Corp.		11,199		1,027,285
Patterson-UTI Energy, Inc.		38,085		964,312
Phillips 66		13,048		1,006,392
Total Oil & Gas				2,997,989

See accompanying Notes to Financial Statements.

99

ADVISORSHARES
TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Shares		Value
Pharmaceuticals — 5.0%
Allergan, Inc.		9,461	$	1,050,928
Herbalife Ltd.(a)		12,523		985,560
Mead Johnson Nutrition Co.		11,441		958,298
Merck & Co., Inc.		19,572		979,579
Pfizer, Inc.		31,062		951,429
Total Pharmaceuticals				4,925,794
Retail — 6.9%
AutoZone, Inc.*		2,025		967,828
Bed Bath & Beyond, Inc.*		12,175		977,653
Coach, Inc.		17,384		975,764
Home Depot, Inc. (The)		11,936		982,810
Lowe's Cos., Inc.		19,780		980,099
O'Reilly Automotive, Inc.*		7,384		950,395
Ross Stores, Inc.		13,029		976,263
Total Retail				6,810,812
Semiconductors — 3.9%
Broadcom Corp., Class A		33,526		994,046
Maxim Integrated Products, Inc.		33,649		939,144
QUALCOMM, Inc.		13,056		969,408
Texas Instruments, Inc.		22,130		971,728
Total Semiconductors				3,874,326
Software — 5.1%
Citrix Systems, Inc.*		16,440		1,039,830
Fiserv, Inc.*		16,692		985,663
MSCI, Inc., Class A*		21,852		955,369
Nuance Communications, Inc.*		64,459		979,777
Oracle Corp.		27,178		1,039,830
Total Software				5,000,469
Telecommunications — 2.0%
Corning, Inc.		56,004		997,991
Harris Corp.		14,224		992,978
Total Telecommunications				1,990,969

See accompanying Notes to Financial Statements.

100

ADVISORSHARES
TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

Investments	Shares		Value
Transportation — 1.0%
Expeditors International of Washington, Inc.		22,177	$	981,332
Total Common Stocks (Cost $92,185,407)				98,188,448
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 1.5%
BNY Mellon Securities Lending Overnight Fund, 0.09%(b) (Cost $1,455,433)		1,455,433		1,455,433
Total Investments — 101.6% (Cost $93,640,840)				99,643,881
Liabilities in Excess of Other Assets — (1.6)%				(1,541,040	)
Net Assets — 100.0%			$	98,102,841

* Non-income producing security

(a) All or a portion of security is on loan. The aggregate market value of the securities on loan is $1,438,340; the aggregate market value of the collateral held by the fund is $1,471,330. The aggregate market value of the collateral includes non-cash U.S. Treasury securities collateral having a value of $15,897.

(b) Rate shown reflects the 1-day yield as of December 31, 2013.

See accompanying Notes to Financial Statements.

101

ADVISORSHARES
TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)

December 31, 2013 (Unaudited)

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Aerospace/Defense		2.0	%
Agriculture		2.0
Airlines		2.0
Auto Manufacturers		1.0
Auto Parts & Equipment		1.0
Banks		1.0
Beverages		1.0
Biotechnology		1.0
Chemicals		4.0
Commercial Services		5.1
Computers		5.1
Cosmetics/Personal Care		1.0
Distribution/Wholesale		1.0
Diversified Financial Services		3.0
Electronics		3.9
Food		2.0
Forest Products & Paper		1.0
Hand/Machine Tools		1.0
Healthcare – Products		4.9
Healthcare – Services		1.0
Household Products/Wares		1.0
Insurance		6.0
Internet		3.0
Leisure Time		1.0
Lodging		4.0
Machinery – Construction & Mining		2.1
Machinery – Diversified		2.0
Media		6.0
Miscellaneous Manufacturing		4.0
Oil & Gas		3.1
Pharmaceuticals		5.0
Retail		6.9
Semiconductors		3.9
Software		5.1
Telecommunications		2.0
Transportation		1.0
Money Market Fund		1.5
Total Investments		101.6
Liabilities in Excess of Other Assets		(1.6	)
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

102

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

December 31, 2013 (Unaudited)

Investments	Shares		Value
COMMON STOCKS — 97.5%
Apparel — 2.1%
LVMH Moet Hennessy Louis Vuitton SA (France)(a)		5,919	$	216,635
Beverages — 3.7%
Coca-Cola Enterprises, Inc.		8,616		380,224
Chemicals — 3.4%
Novozymes A/S (Denmark)(a)(b)		8,342		352,533
Commercial Services — 3.8%
SGS SA (Switzerland)(a)(b)		17,177		394,556
Diversified Financial Services — 4.0%
Lazard Ltd., Class A (Bermuda)		9,132		413,862
Electronics — 3.0%
Sensata Technologies Holding N.V. (Netherlands)*		7,914		306,826
Food — 10.4%
BRF SA (Brazil)(a)		13,884		289,759
Jeronimo Martins, SGPS, SA (Portugal)(a)(b)		4,766		186,732
Nestle SA (Switzerland)(a)		5,365		394,811
Shoprite Holdings Ltd. (South Africa)*(a)		12,859		202,529
Total Food				1,073,831
Forest Products & Paper — 3.6%
Svenska Cellulosa AB (Sweden)(a)(b)		12,195		376,582
Healthcare – Products — 5.7%
Covidien PLC (Ireland)		5,625		383,063
Sysmex Corp. (Japan)(a)(b)		7,002		207,861
Total Healthcare – Products				590,924
Insurance — 4.4%
ACE Ltd. (Switzerland)		4,368		452,219

See accompanying Notes to Financial Statements.

103

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

December 31, 2013 (Unaudited)

Investments	Shares		Value
Internet — 9.3%
ASOS PLC (United Kingdom)*(a)(b)		3,114	$	326,970
MercadoLibre, Inc. (Argentina)		1,852		199,627
Tencent Holdings Ltd. (China)(a)		6,744		434,449
Total Internet				961,046
Machinery – Diversified — 3.3%
FANUC Corp. (Japan)(a)		11,143		342,201
Oil & Gas Services — 3.4%
Core Laboratories N.V. (Netherlands)		1,840		351,348
Pharmaceuticals — 7.9%
NOVO Nordisk A/S (Denmark)(a)		2,271		419,590
Perrigo Co. PLC		2,551		391,476
Total Pharmaceuticals				811,066
Retail — 9.0%
Inditex SA (Spain)(a)(b)		11,995		396,075
Sun Art Retail Group Ltd. (China)*(a)(b)		22,449		320,796
Wal-Mart de Mexico SAB de CV (Mexico)(a)		8,133		212,434
Total Retail				929,305
Semiconductors — 11.7%
Arm Holdings PLC (United Kingdom)(a)(b)		5,445		298,059
ASML Holding N.V. (Netherlands)(c)		4,508		422,400
Taiwan Semiconductor Manufacturing Co., Ltd. (Taiwan)(a)		27,889		486,384
Total Semiconductors				1,206,843
Transportation — 8.8%
Canadian National Railway Co. (Canada)		7,725		440,479
Canadian Pacific Railway Ltd. (Canada)		3,125		472,875
Total Transportation				913,354
Total Common Stocks (Cost $8,349,805)				10,073,355

See accompanying Notes to Financial Statements.

104

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

December 31, 2013 (Unaudited)

Investments	Shares		Value
MONEY MARKET FUND — 2.7%
Invesco Government & Agency Portfolio — Private Investment Class, 0.03%(d) (Cost $280,769)		280,769	$	280,769
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 14.4%
BNY Mellon Securities Lending Overnight Fund, 0.09%(e) (Cost $1,491,400)		1,491,400		1,491,400
Total Investments — 114.6% (Cost $10,121,974)				11,845,524
Liabilities in Excess of Other Assets — (14.6)%				(1,506,970	)
Net Assets — 100.0%			$	10,338,554

PLC — Public Limited Company

* Non-income producing security

(a) American Depositary Receipt

(b) All or a portion of security is on loan. The aggregate market value of the securities on loan is $1,449,846; the aggregate market value of the collateral held by the fund is $1,491,400.

(c) Registered Shares

(d) Rate shown reflects the 7-day yield as of December 31, 2013.

(e) Rate shown reflects the 1-day yield as of December 31, 2013.

See accompanying Notes to Financial Statements.

105

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

December 31, 2013 (Unaudited)

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Apparel		2.1	%
Beverages		3.7
Chemicals		3.4
Commercial Services		3.8
Diversified Financial Services		4.0
Electronics		3.0
Food		10.4
Forest Products & Paper		3.6
Healthcare – Products		5.7
Insurance		4.4
Internet		9.3
Machinery – Diversified		3.3
Oil & Gas Services		3.4
Pharmaceuticals		7.9
Retail		9.0
Semiconductors		11.7
Transportation		8.8
Money Market Fund		17.1
Total Investments		114.6
Liabilities in Excess of Other Assets		(14.6	)
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

106

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ADVISORSHARES TRUST
Statement of Assets and Liabilities

December 31, 2013 (Unaudited)

	AdvisorShares Accuvest Global Long Short ETF			AdvisorShares Accuvest Global Opportunities ETF			AdvisorShares Athena International Bear ETF
ASSETS
Investments, at cost:	$	40,282,023		$	23,343,159		$	1,475,113
Investments in Affiliates, at Cost (Note 8)		—			—			—
Investments, at Market Value (including securities on loan): (Note 2)(a)		43,326,056			24,893,545			1,475,113
Investments in Affiliates, at Market Value (Note 8)		—			—			—
Cash		14,345			—			2,510,493
Cash collateral held at brokers		663,518			—			—
Receivable from Securities Sold		—			—			—
Unrealized Appreciation on Swaps Contracts		208,820			—			—
Capital Shares Receivable		—			—			—
Dividends and Interest Receivable		6			54,757			4
Reclaim Receivable		—			—			—
Due from Investment Advisor		—			—			23,962
Prepaid Trustee Fees		—			—			64
Prepaid Expenses		1,298			774			255
Total Assets		44,214,043			24,949,076			4,009,891
LIABILITIES
Due to Custodian		—			—			—
Cash collateral for securities on loan		—			3,342,825			—
Securities Sold, Not Yet Purchased(b)		—			—			804,845
Unrealized Depreciation on Swaps Contracts		664,217			—			—
Advisory Payable		48,775			11,673			—
Payable for Securities Purchased		—			—			923,054
Capital Shares Payable		—			—			1,137,157
Dividend Payable on Securities Sold, Not Yet Purchased		—			—			1,115
Distribution Payable		—			154,898			—
Trustee Fees Payable		175			175			—
Interest Payable		168,738			—			—
Payable to Global Echo Foundation		—			—			—
Accrued Expenses		28,757			28,499			15,465
Total Liabilities		910,662			3,538,070			2,881,636
NET ASSETS	$	43,303,381		$	21,411,006		$	1,128,255
COMPONENTS OF NET ASSETS
Capital Stock at Zero Par Value	$	49,159,864		$	21,995,964		$	1,362,843
Undistributed Net Investment Income (Loss)		(242,504	)		(72,356	)		(45,996	)
Accumulated Net Gain (Loss) on Investments, options written and swap transactions		(8,202,615	)		(2,062,988	)		(152,310	)
Unrealized Appreciation (Depreciation) on Investments options written and swaps		2,588,636			1,550,386			(36,282	)
NET ASSETS	$	43,303,381		$	21,411,006		$	1,128,255
SHARES ISSUED AND OUTSTANDING
Shares Outstanding (Unlimited Shares Authorized)		1,950,000			750,000			50,000
Net Asset Value (NAV) Per Share	$	22.21		$	28.55		$	22.57
(a) Market value of securities on loan	$	—		$	3,259,243		$	—
(b) Proceeds Received from Securities Sold, Not Yet Purchased	$	—		$	—		$	768,563

See accompanying Notes to Financial Statements.

108

ADVISORSHARES TRUST
Statement of Assets and Liabilities (continued)

December 31, 2013 (Unaudited)

	AdvisorShares Cambria Global Tactical ETF			AdvisorShares EquityPro ETF			AdvisorShares Global Echo ETF			AdvisorShares Madrona Domestic ETF			AdvisorShares Madrona Global Bond ETF			AdvisorShares Madrona International ETF
ASSETS
Investments, at cost:	$	48,132,833		$	17,937,149		$	5,597,692		$	16,883,959		$	26,445,017		$	20,442,213
Investments in Affiliates, at Cost (Note 8)		—			—			17,763			—			2,552,801			—
Investments, at Market Value (including securities on loan): (Note 2)(a)		51,346,764			18,290,075			6,375,173			22,247,787			26,062,502			22,502,841
Investments in Affiliates, at Market Value (Note 8)		—			—			16,588			—			2,629,652			—
Cash		26,972			—			53,229			—			—			—
Cash collateral held at brokers		—			—			—			—			—			—
Receivable from Securities Sold		—			—			39,393			—			—			—
Unrealized Appreciation on Swaps Contracts		—			—			—			—			—			—
Capital Shares Receivable		—			3,763,180			—			—			—			—
Dividends and Interest Receivable		65,627			362			11,102			21,462			27,137			17,723
Reclaim Receivable		—			504			213			—			—			10,398
Due from Investment Advisor		—			—			—			—			—			—
Prepaid Trustee Fees		—			—			—			—			—			—
Prepaid Expenses		4,362			282			—			4,346			1,849			1,288
Total Assets		51,443,725			22,054,403			6,495,698			22,273,595			28,721,140			22,532,250
LIABILITIES
Due to Custodian		—			—			—			—			764			32,216
Cash collateral for securities on loan		6,305,550			855,075			327,399			189,656			6,707,087			3,986,977
Securities Sold, Not Yet Purchased (b)		—			—			—			—			—			—
Unrealized Depreciation on Swaps Contracts		—			—			—			—			—			—
Advisory Payable		31,502			2,619			5,555			12,171			6,993			7,654
Payable for Securities Purchased		273,135			3,675,192			104,221			—			—			—
Capital Shares Payable		—			—			595			—			—			—
Dividend Payable on Securities Sold, Not Yet Purchased		—			—			—			—			—			—
Distribution Payable		—			154,670			—			—			—			—
Trustee Fees Payable		175			175			—			175			175			175
Interest Payable		—			—			—			—			—			—
Payable to Global Echo Foundation		—			—			2,020			—			—			—
Accrued Expenses		40,069			11,605			—			24,910			27,702			25,202
Total Liabilities		6,650,431			4,699,336			439,790			226,912			6,742,721			4,052,224
NET ASSETS	$	44,793,294		$	17,355,067		$	6,055,908		$	22,046,683		$	21,978,419		$	18,480,026
COMPONENTS OF NET ASSETS
Capital Stock at Zero Par Value	$	61,830,311		$	16,817,129		$	5,336,286		$	17,007,993		$	22,412,990		$	18,226,947
Undistributed Net Investment Income (Loss)		91,546			(44,296	)		(9,674	)		1,821			(13,733	)		(67,738	)
Accumulated Net Gain (Loss) on Investments, options written and swap transactions		(20,342,494	)		229,308			(47,010	)		(326,959	)		(115,174	)		(1,739,811	)
Unrealized Appreciation (Depreciation) on Investments options written and swaps		3,213,931			352,926			776,306			5,363,828			(305,664	)		2,060,628
NET ASSETS	$	44,793,294		$	17,355,067		$	6,055,908		$	22,046,683		$	21,978,419		$	18,480,026
SHARES ISSUED AND OUTSTANDING
Shares Outstanding (Unlimited Shares Authorized)		1,800,000			575,000			100,000			575,000			875,000			650,000
Net Asset Value (NAV) Per Share	$	24.89		$	30.18		$	60.56		$	38.34		$	25.12		$	28.43
(a) Market value of securities on loan	$	6,135,171		$	837,234		$	318,158		$	207,667		$	6,545,589		$	3,903,462
(b) Proceeds Received from Securities Sold, Not Yet Purchased	$	—		$	—		$	—		$	—		$	—		$	—

See accompanying Notes to Financial Statements.

109

ADVISORSHARES TRUST
Statement of Assets and Liabilities (continued)

December 31, 2013 (Unaudited)

	AdvisorShares Meidell Tactical Advantage ETF		AdvisorShares Newfleet Multi-Sector Income ETF			AdvisorShares Peritus High Yield ETF
ASSETS
Investments, at cost:	$	19,839,785	$	100,049,424		$	518,271,398
Investments in Affiliates, at Cost (Note 8)		—		—			—
Investments, at Market Value (including securities on loan): (Note 2)(a)		19,860,632		99,338,656			523,565,943
Investments in Affiliates, at Market Value (Note 8)		—		—			—
Cash		—		347,083			547,981
Cash collateral held at brokers		—		—			—
Receivable from Securities Sold		14,210,565		144,000			—
Capital Shares Receivable		14,221,344		—			—
Dividends and Interest Receivable		1,183		614,191			8,620,741
Reclaim Receivable		—		—			—
Due from Investment Advisor		—		—			—
Prepaid Expenses		1,172		33,600			41,360
Total Assets		48,294,896		100,477,530			532,776,025
LIABILITIES
Due to Custodian		—		—			—
Cash collateral for securities on loan		4,095,324		1,133,630			59,608,290
Securities Sold, Not Yet Purchased(b)		—		—			—
Options Written, at Value(c)		—		—			—
Advisory Payable		6,712		47,004			426,153
Payable for Securities Purchased		14,227,033		457,043			12,654,231
Capital Shares Payable		14,221,344		—			—
Dividend Payable on Securities Sold, Not Yet Purchased		—		—			—
Distribution Payable		—		—			—
Trustee Fees Payable		175		175			175
Interest Payable		—		—			—
Accrued Expenses		25,980		16,264			23,509
Total Liabilities		32,576,568		1,654,116			72,712,358
NET ASSETS	$	15,718,328	$	98,823,414		$	460,063,667
COMPONENTS OF NET ASSETS
Capital Stock at Zero Par Value	$	15,505,805	$	99,856,303		$	453,102,605
Undistributed Net Investment Income (Loss)		25,755		(145,946	)		(141,466	)
Accumulated Net Gain (Loss) on Investments, options written and swap transactions		165,921		(176,175	)		1,807,983
Unrealized Appreciation (Depreciation) on Investments options written and swaps		20,847		(710,768	)		5,294,545
NET ASSETS	$	15,718,328	$	98,823,414		$	460,063,667
SHARES ISSUED AND OUTSTANDING
Shares Outstanding (Unlimited Shares Authorized)		525,000		2,000,000			8,900,000
Net Asset Value (NAV) Per Share	$	29.94	$	49.41		$	51.69
(a) Market value of securities on loan	$	4,010,629	$	1,105,478		$	58,140,108
(b) Proceeds Received from Securities Sold, Not Yet Purchased	$	—	$	—		$	—
(c) Premiums Received for Options Written	$	—	$	—		$	—

See accompanying Notes to Financial Statements.

110

ADVISORSHARES TRUST
Statement of Assets and Liabilities (continued)

December 31, 2013 (Unaudited)

	AdvisorShares Pring Turner Business Cycle ETF			AdvisorShares QAM Equity Hedge ETF			AdvisorShares Ranger Equity Bear ETF			AdvisorShares STAR Global Buy-Write ETF			AdvisorShares TrimTabs Float Shrink ETF		AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF
ASSETS
Investments, at cost:	$	5,325,054		$	6,781,832		$	7,500,000		$	21,333,130		$	93,640,840	$	10,121,974
Investments in Affiliates, at Cost (Note 8)		258,188			—			—			—			—		—
Investments, at Market Value (including securities on loan): (Note 2)(a)		5,432,506			7,269,267			7,500,000			22,119,772			99,643,881		11,845,524
Investments in Affiliates, at Market Value (Note 8)		259,790			—			—			—			—		—
Cash		331			22			126,210,500			3,016,750			—		756
Cash collateral held at brokers		—			427,440			130,039,600			—			—		—
Receivable from Securities Sold		76,203			66,053			7,349,212			—			—		—
Capital Shares Receivable		—			—			961,882			—			1,211,146		—
Dividends and Interest Receivable		6,098			2,736			311			42,180			94,929		2,829
Reclaim Receivable		379			—			—			—			—		12,436
Due from Investment Advisor		574			—			—			—			—		—
Prepaid Expenses		2,029			358			17,895			2,448			6,384		833
Total Assets		5,777,910			7,765,876			272,079,400			25,181,150			100,956,340		11,862,378
LIABILITIES
Due to Custodian		—			—			—			—			93,381		—
Cash collateral for securities on loan		474,323			—			—			—			1,455,433		1,491,400
Securities Sold, Not Yet Purchased (b)		—			428,711			128,728,064			—			—		—
Options Written, at Value		—			—			—			137,465			—		—
Advisory Payable		—			164			181,180			28,314			64,554		1,354
Payable for Securities Purchased		—			195,751			9,010,258			—			1,212,167		—
Capital Shares Payable		—			—			3,192,218			—			—		—
Dividend Payable on Securities Sold, Not Yet Purchased		—			—			1,223			—			—		—
Distribution Payable		—			119,153			—			—			—		—
Trustee Fees Payable		175			175			175			175			175		175
Interest Payable		—			—			35,637			—			—		—
Accrued Expenses		22,189			23,223			49,700			31,043			27,789		30,895
Total Liabilities		496,687			767,177			141,198,455			196,997			2,853,499		1,523,824
NET ASSETS	$	5,281,223		$	6,998,699		$	130,880,945		$	24,984,153		$	98,102,841	$	10,338,554
COMPONENTS OF NET ASSETS
Capital Stock at Zero Par Value	$	5,084,411		$	6,531,400		$	284,692,534		$	24,782,545		$	87,374,470	$	8,689,125
Undistributed Net Investment Income (Loss)		(737	)		(112,779	)		(5,664,862	)		(163,361	)		5,782		(4,841	)
Accumulated Net Gain (Loss) on Investments, options written and swap transactions		88,495			86,120			(134,481,283	)		(403,587	)		4,719,548		(69,280	)
Unrealized Appreciation (Depreciation) on Investments options written and swaps		109,054			493,958			(13,665,444	)		768,556			6,003,041		1,723,550
NET ASSETS	$	5,281,223		$	6,998,699		$	130,880,945		$	24,984,153		$	98,102,841	$	10,338,554
SHARES ISSUED AND OUTSTANDING
Shares Outstanding (Unlimited Shares Authorized)		200,000			250,000			10,250,000			1,000,000			2,025,000		275,000
Net Asset Value (NAV) Per Share	$	26.41		$	27.99		$	12.77		$	24.98		$	48.45	$	37.59
(a) Market value of securities on loan	$	452,537		$	—		$	—		$	—		$	1,438,340	$	1,449,846
(b) Proceeds Received from Securities Sold, Not Yet Purchased	$	—		$	435,234		$	115,062,620		$	—		$	—	$	—
(c) Premiums Received for Options Written	$	—		$	—		$	—		$	119,379		$	—	$	—

See accompanying Notes to Financial Statements.

111

ADVISORSHARES TRUST
Statements of Operations

For the Six Months Ended December 31, 2013 (Unaudited)

	AdvisorShares Accuvest Global Long Short ETF			AdvisorShares Accuvest Global Opportunities ETF			AdvisorShares Athena International Bear ETF(1)
INVESTMENT INCOME:
Dividend Income	$	272,359		$	158,953		$	—
Dividend Income from Affiliates		—			—			—
Interest Income		26			2			123
Securities lending income (Note 2)		—			22,725			—
Foreign withholding tax		—			—			258
Total Investment Income		272,385			181,680			381
EXPENSES:
Advisory Fees		296,020			92,951			14,571
Interest on Securities Sold Short		87,455			—			7,767
Professional Fees		13,933			13,913			26,800
Accounting & Administration Fees		27,453			33,084			5,902
Exchange Listing Fees		3,808			3,809			8,327
Report to Shareholders		2,908			2,495			4,953
Pricing Fees		4,062			2,535			3,440
Trustee Fees		1,315			1,313			1,304
Custody Fees		2,037			816			1,325
Transfer Agent Fees		1,484			704			560
Insurance Fees		904			366			373
Dividend Expense		—			—			22,420
Contribution to Global Echo Foundation		—			—			—
Registration Fees		778			220			104
Miscellaneous Fees		2,577			1,901			1,429
Total Expenses		444,734			154,107			99,275
Advisory Fees Waived/Recoupment		(28,368	)		(31,803	)		(14,571	)
Expense Reimbursement		—			—			(38,327	)
Net Expenses		416,366			122,304			46,377
Net Investment Income (Loss)		(143,981	)		59,376			(45,996	)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, OPTIONS WRITTEN, SHORT SALES AND SWAP TRANSACTIONS:
Net Realized Gain (Loss) on:
Investments		(2,382,880	)		(908,860	)		—
Investments in Affiliates		—			—			—
In-Kind Redemptions		2,670,778			711,244			—
In-Kind Redemptions in Affiliates		—			—			—
Swaps		(1,573,144	)		—			—
Short Sales		551,476			—			(152,310	)
Distributions by other Investments Companies		—			—			—
Net Change in Unrealized Appreciation (Depreciation) on:
Investments		3,945,526			1,775,857			—
Short Sales		(1,132,861	)		—			(36,282	)
Swaps		(1,198,812	)		—			—
Net Realized and Unrealized Gain (Loss)		880,083			1,578,241			(188,592	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	736,102		$	1,637,617		$	(234,588	)

(1) Represents the period July 18, 2013 (commencement of operations) to December 31, 2013.

See accompanying Notes to Financial Statements.

112

ADVISORSHARES TRUST
Statements of Operations (continued)

For the Six Months Ended December 31, 2013 (Unaudited)

	AdvisorShares Cambria Global Tactical ETF			AdvisorShares EquityPro ETF			AdvisorShares Global Echo ETF			AdvisorShares Madrona Domestic ETF			AdvisorShares Madrona Global Bond ETF			AdvisorShares Madrona International ETF
INVESTMENT INCOME:
Dividend Income	$	466,544		$	122,070		$	21,051		$	160,802		$	362,989		$	140,472
Dividend Income from Affiliates		—			—			—			—			100,335			—
Interest Income		444			7			9,439			2			—			4
Securities lending income (Note 2)		68,133			1,065			3,656			336			37,088			16,747
Foreign withholding tax		—			117			(404	)		—			—			(9,776	)
Total Investment Income		535,121			123,259			33,742			161,140			500,412			147,447
EXPENSES:
Advisory Fees		216,710			12,874			31,839			81,975			55,658			68,988
Interest on Securities Sold Short		—			—			—			—			—			—
Professional Fees		13,913			14,186			—			13,845			13,938			13,937
Accounting & Administration Fees		38,319			23,665			—			38,789			37,848			38,505
Exchange Listing Fees		3,808			3,808			—			5,335			3,808			3,808
Report to Shareholders		11,088			2,345			—			3,216			3,262			2,828
Pricing Fees		2,535			2,535			—			2,535			2,535			2,535
Trustee Fees		1,313			1,313			—			1,313			1,313			1,313
Custody Fees		3,498			132			—			1,464			961			4,883
Transfer Agent Fees		1,909			52			—			720			827			594
Insurance Fees		2,490			—			—			631			735			662
Dividend Expense		—			—			—			—			—			—
Contribution to Global Echo Foundation		—			—			11,577			—			—			—
Registration Fees		—			17			—			—			27			—
Miscellaneous Fees		3,137			1,194			—			1,967			2,076			1,889
Total Expenses		298,720			62,121			43,416			151,790			122,988			139,942
Advisory Fees Waived/Recoupment		2,266			(12,874	)		—			(23,704	)		(17,238	)		(32,149	)
Expense Reimbursement		—			(31,010	)		—			—			—			—
Net Expenses		300,986			18,237			43,416			128,086			105,750			107,793
Net Investment Income (Loss)		234,135			105,022			(9,674	)		33,054			394,662			39,654
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, OPTIONS WRITTEN, SHORT SALES AND SWAP TRANSACTIONS:
Net Realized Gain (Loss) on:
Investments		(383,937	)		234,133			42,375			331,553			(56,701	)		884,890
Investments in Affiliates		—			—			(3,030	)		—			2,151			—
In-Kind Redemptions		595,212			577			—			654,159			13,501			—
In-Kind Redemptions in Affiliates		—			(255	)		—			—			—			—
Swaps		—			—			—			—			—			—
Short Sales		—			—			—			—			—			—
Distributions by other Investments Companies		—			—			—			—			8,913			—
Net Change in Unrealized Appreciation (Depreciation) on:
Investments		1,710,605			246,536			590,532			2,494,744			124,257			2,218,289
Short Sales		—			—			—			—			—			—
Swaps		—			—			—			—			—			—
Net Realized and Unrealized Gain (Loss)		1,921,880			480,991			629,877			3,480,456			92,121			3,103,179
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	2,156,015		$	586,013		$	620,203		$	3,513,510		$	486,783		$	3,142,833

See accompanying Notes to Financial Statements.

113

ADVISORSHARES TRUST
Statements of Operations (continued)

For the Six Months Ended December 31, 2013 (Unaudited)

	AdvisorShares Meidell Tactical Advantage ETF			AdvisorShares Newfleet Multi-Sector Income ETF			AdvisorShares Peritus High Yield ETF
INVESTMENT INCOME:
Dividend Income	$	96,576		$	—		$	77,935
Dividend Income from Affiliates		—			—			—
Interest Income		—			1,481,128			17,374,241
Securities lending income (Note 2)		6,311			7,283			173,491
Foreign withholding tax		—			—			(11,818	)
Total Investment Income		102,887			1,488,411			17,613,849
EXPENSES:
Advisory Fees		68,173			297,876			2,018,516
Interest on Securities Sold Short		—			—			—
Professional Fees		13,914			16,003			21,074
Accounting & Administration Fees		37,833			19,774			57,381
Exchange Listing Fees		3,525			3,781			3,808
Report to Shareholders		2,144			8,636			14,178
Pricing Fees		2,535			6,050			6,379
Trustee Fees		1,313			1,313			1,313
Custody Fees		804			6,907			11,528
Transfer Agent Fees		350			3,207			10,470
Insurance Fees		266			848			5,102
Dividend Expense		—			—			—
Registration Fees		135			3,790			8,707
Licensing Fees		—			—			—
Miscellaneous Fees		1,740			3,313			7,983
Total Expenses		132,732			371,498			2,166,439
Advisory Fees Waived/Recoupment		(56,037	)		(27,794	)		—
Expense Reimbursement		—			—			—
Net Expenses		76,695			343,704			2,166,439
Net Investment Income (Loss)		26,192			1,144,707			15,447,410
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, OPTIONS WRITTEN, SHORT SALES AND SWAP TRANSACTIONS:
Net Realized Gain (Loss) on:
Investments		108,854			(150,753	)		1,855,269
In-Kind Redemptions		541,642			—			—
In-Kind Redemptions in Affiliates		—			—			—
Swaps		—			—			—
Short Sales		—			—			—
Options Written		—			—			—
Distributions by other Investments Companies		—			—			—
Net Change in Unrealized Appreciation (Depreciation) on:
Investments		28,512			945,481			5,921,143
Short Sales		—			—			—
Swaps		—			—			—
Options Written		—			—			—
Net Realized and Unrealized Gain (Loss)		679,008			794,728			7,776,412
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	705,200		$	1,939,435		$	23,223,822

See accompanying Notes to Financial Statements.

114

ADVISORSHARES TRUST
Statements of Operations (continued)

For the Six Months Ended December 31, 2013 (Unaudited)

	AdvisorShares Pring Turner Business Cycle ETF			AdvisorShares QAM Equity Hedge ETF			AdvisorShares Ranger Equity Bear ETF			AdvisorShares STAR Global Buy-Write ETF			AdvisorShares TrimTabs Float Shrink ETF			AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF
INVESTMENT INCOME:
Dividend Income	$	56,195		$	37,478		$	—		$	153,633		$	615,877		$	43,322
Dividend Income from Affiliates		11,385			—			—			—			—			—
Interest Income		85			92			7,527			1,073			8			28
Securities lending income (Note 2)		4,295			—			—			—			2,887			8,075
Foreign withholding tax		(1,265	)		—			—			—			—			(4,753	)
Total Investment Income		70,695			37,570			7,527			154,706			618,772			46,672
EXPENSES:
Advisory Fees		27,403			26,930			1,359,070			151,963			333,116			29,240
Interest on Securities Sold Short		—			—			473,996			—			—			—
Professional Fees		14,522			15,167			13,912			14,602			13,913			13,933
Accounting & Administration Fees		15,793			22,137			43,086			20,472			35,562			20,695
Exchange Listing Fees		3,814			3,808			3,826			3,808			3,809			3,808
Report to Shareholders		2,391			2,103			34,638			2,595			2,142			2,221
Pricing Fees		3,158			4,062			4,062			4,062			2,535			2,535
Trustee Fees		1,313			1,313			1,313			1,313			1,313			1,313
Custody Fees		362			1,743			8,052			8,172			2,823			429
Transfer Agent Fees		213			150			7,909			798			1,640			304
Insurance Fees		—			—			6,145			222			889			226
Dividend Expense		—			—			629,489			—			—			—
Registration Fees		197			52			669			527			2,204			—
Licensing Fees		—			—			—			—			—			1,869
Miscellaneous Fees		1,447			1,474			7,612			2,064			2,342			1,702
Total Expenses		70,613			78,939			2,593,779			210,598			402,288			78,275
Advisory Fees Waived/Recoupment		(27,403	)		(26,930	)		—			(2,362	)		(69,172	)		(29,240	)
Expense Reimbursement		(2,380	)		(11,615	)		—			—			—			(301	)
Net Expenses		40,830			40,394			2,593,779			208,236			333,116			48,734
Net Investment Income (Loss)		29,865			(2,824	)		(2,586,252	)		(53,530	)		285,656			(2,062	)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, OPTIONS WRITTEN, SHORT SALES AND SWAP TRANSACTIONS:
Net Realized Gain (Loss) on:
Investments		(14,830	)		123,496			—			(447,981	)		(991,759	)		(254,737	)
In-Kind Redemptions		120,730			—			—			74,582			5,762,114			353,783
In-Kind Redemptions in Affiliates		2,633			—			—			—			—			—
Swaps		—			7,439			—			—			—			—
Short Sales		—			(5,398	)		(31,173,324	)		—			—			—
Options Written		—			—			—			255,078			—			—
Distributions by other Investments Companies		345			—			—			—			—			—
Net Change in Unrealized Appreciation (Depreciation) on:
Investments		137,109			293,130			—			1,353,689			5,592,876			1,013,579
Short Sales		—			200			(8,946,961	)		—			—			—
Swaps		—			5,101			—			—			—			—
Options Written		—			—			—			56,390			—			—
Net Realized and Unrealized Gain (Loss)		245,987			423,968			(40,120,285	)		1,291,758			10,363,231			1,112,625
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	275,852		$	421,144		$	(42,706,537	)	$	1,238,228		$	10,648,887		$	1,110,563

See accompanying Notes to Financial Statements.

115

ADVISORSHARES TRUST
Statements of Changes in Net Assets

 

	AdvisorShares Accuvest Global Long Short ETF						AdvisorShares Accuvest Global Opportunities ETF
	Six months ended December 31, 2013 (Unaudited)			Year ended June 30, 2013			Six months ended December 31, 2013 (Unaudited)			Year ended June 30, 2013
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income (Loss)	$	(143,981	)	$	(439,369	)	$	59,376		$	74,807
Net Realized Gain (Loss)		(733,770	)		504,090			(197,616	)		1,493,850
Net Change in Unrealized Appreciation (Depreciation)		1,613,853			393,922			1,775,857			(322,229	)
Net Increase (Decrease) In Net Assets Resulting From Operations		736,102			458,643			1,637,617			1,246,428
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income		—			—			(154,897	)		(185,454	)
Net Realized Gains		—			—			—			—
Total Distributions		—			—			(154,897	)		(185,454	)
CAPITAL STOCK TRANSACTIONS
Proceeds from Shares Issued		39,107,370			78,003,559			13,910,142			53,907,465
Value of Shares Redeemed		(39,112,637	)		(53,911,620	)		(11,811,738	)		(50,580,810	)
Net Increase (Decrease) From Capital Stock Transactions		(5,267	)		24,091,939			2,098,404			3,326,655
Net Increase (Decrease) in Net Assets		730,835			24,550,582			3,581,124			4,387,629
Net Assets:
Beginning of Period		42,572,546			18,021,964			17,829,882			13,442,253
End of Period	$	43,303,381		$	42,572,546		$	21,411,006		$	17,829,882
Undistributed Net Investment Income (Loss)	$	(242,504	)	$	(98,523	)	$	(72,356.00	)	$	23,165
Changes in Shares Outstanding
Shares Outstanding, Beginning of Period		1,950,000			850,000			675,000			550,000
Shares Sold		1,800,000			3,550,000			500,000			1,975,000
Shares Repurchased		(1,800,000	)		(2,450,000	)		(425,000	)		(1,850,000	)
End of Period		1,950,000			1,950,000			750,000			675,000

* Commencement of operations.

(1) Formerly known as, AdvisorShares Global Alpha & Beta ETF.

See accompanying Notes to Financial Statements.

116

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Statements of Changes in Net Assets (continued)

 

	AdvisorShares Athena International Bear ETF			AdvisorShares Cambria Global Tactical ETF						AdvisorShares EquityPro ETF(1)						AdvisorShares Global Echo ETF
	For the period July 18, 2013* to December 31, 2013 (Unaudited)			Six months ended December 31, 2013 (Unaudited)			Year ended June 30, 2013			Six months ended December 31, 2013 (Unaudited)			For the period July 10, 2012* to June 30, 2013			Six months ended December 31, 2013 (Unaudited)			Year ended June 30, 2013
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income (Loss)	$	(45,996	)	$	234,135		$	1,014,497		$	105,022		$	12,958		$	(9,674	)	$	(6,054	)
Net Realized Gain (Loss)		(152,310	)		211,275			2,304,034			234,455			42,439			39,345			187,729
Net Change in Unrealized Appreciation (Depreciation)		(36,282	)		1,710,605			(824,107	)		246,536			106,390			590,532			127,314
Net Increase (Decrease) In Net Assets Resulting From Operations		(234,588	)		2,156,015			2,494,424			586,013			161,787			620,203			308,989
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income		—			—			(1,451,034	)		(154,670	)		(6,753	)		(2,380	)		—
Net Realized Gains		—			—			—			—			(948	)		—			(23,426	)
Total Distributions		—			—			(1,451,034	)		(154,670	)		(7,701	)		(2,380	)		(23,426	)
CAPITAL STOCK TRANSACTIONS
Proceeds from Shares Issued		2,500,000			—			12,334			17,037,248			2,500,000			—			5,247,921
Value of Shares Redeemed		(1,137,157	)		(7,305,050	)		(29,284,343	)		(1,470,047	)		(1,297,563	)		—			(5,175,016	)
Net Increase (Decrease) From Capital Stock Transactions		1,362,843			(7,305,050	)		(29,272,009	)		15,567,201			1,202,437			—			72,905
Net Increase (Decrease) in Net Assets		1,128,255			(5,149,035	)		(28,228,619	)		15,998,544			1,356,523			617,823			358,468
Net Assets:
Beginning of Period		—			49,942,329			78,170,948			1,356,523			—			5,438,085			5,079,617
End of Period	$	1,128,255		$	44,793,294		$	49,942,329		$	17,355,067		$	1,356,523		$	6,055,908		$	5,438,085
Undistributed Net Investment Income (Loss)	$	(45,996	)	$	91,546		$	(142,589	)	$	(44,296	)	$	5,352		$	(9,674	)	$	2,380
Changes in Shares Outstanding
Shares Outstanding, Beginning of Period		—			2,100,000			3,300,000			50,000			—			100,000			100,000
Shares Sold		100,000			—			—			575,000			100,000			—			100,000
Shares Repurchased		(50,000	)		(300,000	)		(1,200,000	)		(50,000	)		(50,000	)		—			(100,000	)
End of Period		50,000			1,800,000			2,100,000			575,000			50,000			100,000			100,000

See accompanying Notes to Financial Statements.

117

ADVISORSHARES TRUST
Statements of Changes in Net Assets (continued)

 

	AdvisorShares Madrona Domestic ETF						AdvisorShares Madrona Global Bond ETF
	Six months ended December 31, 2013 (Unaudited)			Year ended June 30, 2013			Six months ended December 31, 2013 (Unaudited)			Year ended June 30, 2013
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income (Loss)	$	33,054		$	83,034		$	394,662		$	630,435
Net Realized Gain (Loss)		985,712			1,105,722			(32,136	)		168,222
Net Change in Unrealized Appreciation (Depreciation)		2,494,744			2,851,528			124,257			(789,608	)
Net Increase (Decrease) In Net Assets Resulting From Operations		3,513,510			4,040,284			486,783			9,049
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income		(59,938	)		(73,945	)		(420,849	)		(624,855	)
Net Realized Gains		—			—			—			(3,106	)
Total Distributions		(59,938	)		(73,945	)		(420,849	)		(627,961	)
CAPITAL STOCK TRANSACTIONS
Proceeds from Shares Issued		2,715,311			6,508,179			—			7,924,963
Value of Shares Redeemed		(2,715,311	)		(7,069,627	)		(630,454	)		(5,958,081	)
Net Increase (Decrease) From Capital Stock Transactions		—			(561,448	)		(630,454	)		1,966,882
Net Increase (Decrease) in Net Assets		3,453,572			3,404,891			(564,520	)		1,347,970
Net Assets:
Beginning of Period		18,593,111			15,188,220			22,542,939			21,194,969
End of Period	$	22,046,683		$	18,593,111		$	21,978,419		$	22,542,939
Undistributed Net Investment Income (Loss)	$	1,821		$	28,705		$	(13,733	)	$	12,454
Changes in Shares Outstanding
Shares Outstanding, Beginning of Period		575,000			600,000			900,000			825,000
Shares Sold		75,000			225,000			—			300,000
Shares Repurchased		(75,000	)		(250,000	)		(25,000	)		(225,000	)
End of Period		575,000			575,000			875,000			900,000

* Commencement of operations.

See accompanying Notes to Financial Statements.

118

ADVISORSHARES TRUST
Statements of Changes in Net Assets (continued)

 

	AdvisorShares Madrona International ETF						AdvisorShares Meidell Tactical Advantage ETF						AdvisorShares Newfleet Multi-Sector Income ETF
	Six months ended December 31, 2013 (Unaudited)			Year ended June 30, 2013			Six months ended December 31, 2013 (Unaudited)			Year ended June 30, 2013			Six months ended December 31, 2013 (Unaudited)			For the period March 19, 2013* to June 30, 2013
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income (Loss)	$	39,654		$	246,686		$	26,192		$	36,417		$	1,144,707		$	400,687
Net Realized Gain (Loss)		884,890			692,737			650,496			936,023			(150,753	)		(25,422	)
Net Change in Unrealized Appreciation (Depreciation)		2,218,289			1,095,122			28,512			(25,603	)		945,481			(1,656,249	)
Net Increase (Decrease) In Net Assets Resulting From Operations		3,142,833			2,034,545			705,200			946,837			1,939,435			(1,280,984	)
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income		(318,396	)		(185,288	)		—			(64,270	)		(1,290,695	)		(400,645	)
Net Realized Gains		—			—			—			—			—			—
Total Distributions		(318,396	)		(185,288	)		—			(64,270	)		(1,290,695	)		(400,645	)
CAPITAL STOCK TRANSACTIONS
Proceeds from Shares Issued		677,332			8,719,712			20,025,620			22,505,890			17,260,270			85,043,450
Value of Shares Redeemed		—			(9,809,428	)		(14,221,344	)		(19,832,014	)		(2,447,417	)		—
Net Increase (Decrease) From Capital Stock Transactions		677,332			(1,089,716	)		5,804,276			2,673,876			14,812,853			85,043,450
Net Increase (Decrease) in Net Assets		3,501,769			759,541			6,509,476			3,556,443			15,461,593			83,361,821
Net Assets:
Beginning of Period		14,978,257			14,218,716			9,208,852			5,652,409			83,361,821			—
End of Period	$	18,480,026		$	14,978,257		$	15,718,328		$	9,208,852		$	98,823,414		$	83,361,821
Undistributed Net Investment Income (Loss)	$	(67,738	)	$	211,004		$	25,755		$	(437	)	$	(145,946	)	$	42
Changes in Shares Outstanding
Shares Outstanding, Beginning of Period		625,000			675,000			325,000			225,000			1,700,000			—
Shares Sold		25,000			350,000			675,000			800,000			350,000			1,700,000
Shares Repurchased		—			(400,000	)		(475,000	)		(700,000	)		(50,000	)		—
End of Period		650,000			625,000			525,000			325,000			2,000,000			1,700,000

See accompanying Notes to Financial Statements.

119

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Statements of Changes in Net Assets (continued)

 

	AdvisorShares Peritus High Yield ETF						AdvisorShares Pring Turner Business Cycle ETF
	Six months ended December 31, 2013 (Unaudited)			Year ended June 30, 2013			Six months ended December 31, 2013 (Unaudited)			For the period December 18, 2012* to June 30, 2013
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income (Loss)	$	15,447,410		$	14,982,941		$	29,865		$	28,574
Net Realized Gain (Loss)		1,855,269			410,917			108,878			(20,383	)
Net Change in Unrealized Appreciation (Depreciation)		5,921,143			2,388,124			137,109			(28,055	)
Net Increase (Decrease) In Net Assets Resulting From Operations		23,223,822			17,781,982			275,852			(19,864	)
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income		(15,739,089	)		(14,668,314	)		(59,326	)		—
Net Realized Gains		(385,440	)		(20,661	)		—			—
Total Distributions		(16,124,529	)		(14,688,975	)		(59,326	)		—
CAPITAL STOCK TRANSACTIONS
Proceeds from Shares Issued		193,235,539			172,000,936			1,309,926			5,748,989
Value of Shares Redeemed		—			(7,693,597	)		(1,974,354	)		—
Net Increase (Decrease) From Capital Stock Transactions		193,235,539			164,307,339			(664,428	)		5,748,989
Net Increase (Decrease) in Net Assets		200,334,832			167,400,346			(447,902	)		5,729,125
Net Assets:
Beginning of Period		259,728,835			92,328,489			5,729,125			—
End of Period	$	460,063,667		$	259,728,835		$	5,281,223		$	5,729,125
Undistributed Net Investment Income (Loss)	$	(141,466	)	$	535,653		$	(737	)	$	28,724
Changes in Shares Outstanding
Shares Outstanding, Beginning of Period		5,150,000			1,900,000			225,000			—
Shares Sold		3,750,000			3,400,000			50,000			225,000
Shares Repurchased		—			(150,000	)		(75,000	)		—
End of Period		8,900,000			5,150,000			200,000			225,000

* Commencement of operations.

See accompanying Notes to Financial Statements.

120

ADVISORSHARES TRUST
Statements of Changes in Net Assets (continued)

 

	AdvisorShares QAM Equity Hedge ETF						AdvisorShares Ranger Equity Bear ETF						AdvisorShares STAR Global Buy-Write ETF
	Six months ended December 31, 2013 (Unaudited)			For the period August 7, 2012* to June 30, 2013			Six months ended December 31, 2013 (Unaudited)			Year ended June 30, 2013			Six months ended December 31, 2013 (Unaudited)			For the period September 17, 2012* to June 30, 2013
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income (Loss)	$	(2,824	)	$	(16,228	)	$	(2,586,252	)	$	(8,381,936	)	$	(53,530	)	$	(16,633	)
Net Realized Gain (Loss)		125,537			12,398			(31,173,324	)		(91,193,659	)		(118,321	)		(269,448	)
Net Change in Unrealized Appreciation (Depreciation)		298,431			195,527			(8,946,961	)		(11,309,064	)		1,410,079			(641,523	)
Net Increase (Decrease) In Net Assets Resulting From Operations		421,144			191,697			(42,706,537	)		(110,884,659	)		1,238,228			(927,604	)
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income		(92,485	)		(11,280	)		—			—			—			(91,839	)
Net Realized Gains		(26,668	)		(15,366	)		—			—			—			(17,177	)
Total Distributions		(119,153	)		(26,646	)		—			—			—			(109,016	)
CAPITAL STOCK TRANSACTIONS
Proceeds from Shares Issued		2,765,187			3,766,470			19,493,899			236,542,256			3,680,784			23,464,423
Value of Shares Redeemed		—			—			(64,263,633	)		(220,523,864	)		(2,362,662	)		—
Net Increase (Decrease) From Capital Stock Transactions		2,765,187			3,766,470			(44,769,734	)		16,018,392			1,318,122			23,464,423
Net Increase (Decrease) in Net Assets		3,067,178			3,931,521			(87,476,271	)		(94,866,267	)		2,556,350			22,427,803
Net Assets:
Beginning of Period		3,931,521			—			218,357,216			313,223,483			22,427,803			—
End of Period	$	6,998,699		$	3,931,521		$	130,880,945		$	218,357,216		$	24,984,153		$	22,427,803
Undistributed Net Investment Income (Loss)	$	(112,779	)	$	(17,470	)	$	(5,664,862	)	$	(3,078,610	)	$	(163,361	)	$	(109,831	)
Changes in Shares Outstanding
Shares Outstanding, Beginning of Period.		150,000			—			13,500,000			13,425,000			950,000			—
Shares Sold		100,000			150,000			1,325,000			11,850,000			150,000			950,000
Shares Repurchased		—			—			(4,575,000	)		(11,775,000	)		(100,000	)		—
End of Period		250,000			150,000			10,250,000			13,500,000			1,000,000			950,000

See accompanying Notes to Financial Statements.

121

ADVISORSHARES TRUST
Statements of Changes in Net Assets (continued)

 

	AdvisorShares TrimTabs Float Shrink ETF						AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF
	Six months ended December 31, 2013 (Unaudited)			Year ended June 30, 2013			Six months ended December 31, 2013 (Unaudited)			Year ended June 30, 2013
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income (Loss)	$	285,656		$	77,198		$	(2,062	)	$	25,558
Net Realized Gain (Loss)		4,770,355			2,467,788			99,046			(4,822	)
Net Change in Unrealized Appreciation (Depreciation)		5,592,876			92,939			1,013,579			900,436
Net Increase (Decrease) In Net Assets Resulting From Operations		10,648,887			2,637,925			1,110,563			921,172
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income		(300,554	)		(69,329	)		(5,368	)		(37,975	)
Net Realized Gains		—			(40,008	)		—			—
Total Distributions		(300,554	)		(109,337	)		(5,368	)		(37,975	)
CAPITAL STOCK TRANSACTIONS
Proceeds from Shares Issued		187,349,537			57,124,119			3,581,928			—
Value of Shares Redeemed		(125,252,122	)		(42,286,488	)		(1,694,175	)		—
Net Increase (Decrease) From Capital Stock Transactions		62,097,415			14,837,631			1,887,753			—
Net Increase (Decrease) in Net Assets		72,445,748			17,366,219			2,992,948			883,197
Net Assets:
Beginning of Period		25,657,093			8,290,874			7,345,606			6,462,409
End of Period	$	98,102,841		$	25,657,093		$	10,338,554		$	7,345,606
Undistributed Net Investment Income (Loss)	$	5,782		$	20,680		$	(4,841	)	$	2,589
Changes in Shares Outstanding
Shares Outstanding, Beginning of Period		625,000			250,000			225,000			225,000
Shares Sold		4,200,000			1,500,000			100,000			—
Shares Repurchased		(2,800,000	)		(1,125,000	)		(50,000	)		—
End of Period		2,025,000			625,000			275,000			225,000

See accompanying Notes to Financial Statements.

122

ADVISORSHARES TRUST
Statements of Cash Flows

	AdvisorShares Accuvest Global Long Short ETF			AdvisorShares Athena International Bear ETF			AdvisorShares QAM Equity Hedge ETF			AdvisorShares Ranger Equity Bear ETF(1)
	For the six months ended December 31, 2013 (Unaudited)			For the period July 18, 2013* to December 31, 2013 (Unaudited)			For the six months ended December 31, 2013 (Unaudited)			For the six months ended December 31, 2013 (Unaudited)
CASH FLOWS PROVIDED (USED) BY OPERATING ACTIVITIES:
Dividends and Interest received	$	782,746		$	119		$	42,614		$	9,575
Operating expenses paid		(1,919,793	)		(25,006	)		(37,111	)		(1,640,283	)
Net purchases of short-term investments		(465,257	)		(1,475,113	)		(16,002	)		84,889,265
Realized gain (loss) on swap contracts		(1,573,144	)		—			7,439			—
Purchases of long-term investments		(68,233,222	)		—			(7,097,817	)		—
Proceeds from disposition of long-term investments		71,610,236			—			4,209,689			—
Increase/Decrease in receivables for securities sold		—			—			232,326			11,351,231
Increase/Decrease in payables for securities purchased		(1,068,007	)		923,054			(136,028	)		(25,946,602	)
Change in proceeds received from short sales		—			—			—			(125,475,415	)
Net increase in short sales		(9,778,533	)		616,253			194,805			—
Dividends paid		(120,503	)		1,115			—			(662,880	)
Interest paid		(90,665	)		(29,929	)		(108	)		(531,072	)
Net Cash Provided (Used) By Operating Activities		(10,856,142	)		10,493			(2,600,193	)		(58,006,181	)
CASH FLOWS PROVIDED (USED) BY FINANCING ACTIVITIES:
Distributions from net investment income and realized gains		—			—			—			—
Net proceeds from sale of shares		1,071,462			2,500,000			2,765,187			(49,807,574	)
Deposits with brokers for swap contracts and short sales		9,799,025			—			(198,089	)		117,608,843
Net Cash Flows Provided (Used) By Financing Activities		10,870,487			2,500,000			2,567,098			67,801,269
NET INCREASE/DECREASE IN CASH		14,345			2,510,493			(33,095	)		9,795,088
Cash, Beginning of period		—			—			33,117			116,415,412
Cash, End of period	$	14,345		$	2,510,493		$	22		$	126,210,500
RECONCILIATION OF INCREASE/(DECREASE) IN NET ASSETS FROM OPERATIONS TO NET CASH FLOWS PROVIDED (USED) BY OPERATING ACTIVITIES:
Increase/Decrease in Net Assets From Operations	$	736,102		$	(234,588	)	$	421,144		$	(42,706,537	)
Increase/Decrease in investments, at value		(10,518,815	)		(670,268	)		(3,120,752	)		(465,865	)
Increase/Decrease in payable for securities purchased		(1,068,007	)		923,054			(136,028	)		(25,946,602	)
Increase/Decrease in receivable for securities sold		—			—			232,325			11,351,231
Increase/Decrease in dividends and interest receivable		510,361			(4	)		5,044			2,048
Increase/Decrease in unrealized appreciation (depreciation) on swaps		1,198,812			—			(5,101	)		—
Increase/Decrease in prepaid expense		6,897			(255	)		7,555			(6,402	)
Increase/Decrease in interest payable		(1,591,545	)		—			(108	)		(57,076	)
Increase/Decrease in dividends payable		(120,503	)		1,115			—			(33,391	)
Increase/Decrease in accrued expenses		(9,444	)		(8,561	)		(4,272	)		(143,587	)
Total Adjustments		(11,592,244	)		245,081			(3,021,337	)		(15,299,644	)
Net Cash Flows Provided (Used) By Operating Activities	$	(10,856,142	)	$	10,493		$	(2,600,193	)	$	(58,006,181	)

* Commencement of operations.

See accompanying Notes to Financial Statements.

123

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Financial Highlights

 

	AdvisorShares Accuvest Global Long Short ETF
	Six months ended December 31, 2013 (Unaudited)			Year ended June 30, 2013			Year ended June 30, 2012			For the period July 9, 2010* to June 30, 2011
Selected Data for a Share of Capital Stock Outstanding
Net Asset Value, Beginning of Period	$	21.83		$	21.20		$	20.86		$	25.00
Investment Operations
Net Investment Income (Loss)(1)		(0.07	)		(0.34	)		(0.68	)		(0.67	)
Net Realized and Unrealized Gain (Loss)		0.45			0.97			1.33			(3.47	)
Distributions of Net Realized Gains by other investment companies		—			—			—			—
Net Increase (Decrease) in Net Assets Resulting from Investment Operations		0.38			0.63			0.65			(4.14	)
Distributions from Net Investment Income		—			—			(0.31	)		—
Distributions from Realized Capital Gains		—			—			—			—
Total Distributions		—			—			(0.31	)		—
Net Asset Value, End of Period	$	22.21		$	21.83		$	21.20		$	20.86
Market Value, End of Period	$	22.20		$	21.98		$	21.22		$	20.86
Total Return
Total Investment Return Based on Net Asset Value(3)		1.74	%		2.97	%		3.15	%		(16.56	)%
Total Investment Return Based on Market(3)		1.00	%		3.58	%		3.24	%		(16.56	)%
Ratios/Supplemental Data
Net Assets, End of Period (000's omitted)	$	43,303		$	42,573		$	18,022		$	9,385
Ratio to Average Net Assets of:
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(4)		1.50	%		1.50	%		1.50	%		1.50	%
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(4)		2.03	%		4.25	%		8.15	%		3.33	%
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(4)		1.63	%		1.79	%		3.88	%		1.73	%
Net investment Income (Loss)(4)		(0.66	)%		(1.57	)%		(3.20	)%		(2.82	)%
Portfolio Turnover Rate(5)		100	%		270	%		365	%		751	%

* Commencement of operations.

(1) Based on average shares outstanding.

(2) Less than $0.005.

(3) Net asset value total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, if any, at net asset value during the period, and redemption on the last day of the period. Periods less than one year are not annualized. Market value total return is calculated assuming an initial investment made at the market value at the beginning of the period, reinvestment of all dividends and distributions at market value during the period, and sale at the market value on the last day of the period.

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

(5) Portfolio turnover rate is not annualized and excludes the value of portfolio securities received or delivered as in-kind creations or redemptions of the Fund's capital shares.

(6) Formerly known as, AdvisorShares Global Alpha & Beta ETF.

See accompanying Notes to Financial Statements.

124

ADVISORSHARES TRUST
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	AdvisorShares Accuvest Global Opportunities ETF									AdvisorShares Athena International Bear ETF
	Six months ended December 31, 2013 (Unaudited)			Year ended June 30, 2013			For the period January 25, 2012* to June 30, 2012			For the period July 18, 2013* to December 31, 2013 (Unaudited)
Selected Data for a Share of Capital Stock Outstanding
Net Asset Value, Beginning of Period	$	26.41		$	24.44		$	25.00		$	25.00
Investment Operations
Net Investment Income (Loss)(1)		0.08			0.12			0.31			(0.46	)
Net Realized and Unrealized Gain (Loss)		2.27			2.16			(0.87	)		(1.97	)
Distributions of Net Realized Gains by other invtment companies		—			—			—			—
Net Increase (Decrease) in Net Assets Resulting from Investment Operations		2.35			2.28			(0.56	)		(2.43	)
Distributions from Net Investment Income		(0.21	)		(0.31	)		—			—
Distributions from Realized Capital Gains		—			—			—			—
Total Distributions		(0.21	)		(0.31	)		—			—
Net Asset Value, End of Period	$	28.55		$	26.41		$	24.44		$	22.57
Market Value, End of Period	$	28.61		$	26.41		$	24.45		$	22.52
Total Return
Total Investment Return Based on Net Asset Value(3)		8.89	%		9.25	%		(2.24	)%		(9.72	)%
Total Investment Return Based on Market(3)		8.33	%		9.18	%		(2.20	)%		(9.92	)%
Ratios/Supplemental Data
Net Assets, End of Period (000's omitted)	$	21,411		$	17,830		$	13,442		$	1,128
Ratio to Average Net Assets of:
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(4)		1.25	%		1.25	%		1.25	%		1.50	%
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(4)		1.58	%		1.54	%		2.27	%		9.20	%
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(4)		1.58	%		1.54	%		2.27	%		6.40	%
Net investment Income (Loss)(4)		0.61	%		0.45	%		2.90	%		(4.26	)%
Portfolio Turnover Rate(5)		98	%		100	%		135	%		290	%

See accompanying Notes to Financial Statements.

125

ADVISORSHARES TRUST
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	AdvisorShares Cambria Global Tactical ETF
	Six months ended December 31, 2013 (Unaudited)			Year ended June 30, 2013			Year ended June 30, 2012			For the period October 26, 2010* to June 30, 2011
Selected Data for a Share of Capital Stock Outstanding
Net Asset Value, Beginning of Period	$	23.78		$	23.69		$	25.92		$	25.10
Investment Operations
Net Investment Income (Loss)(1)		0.12			0.38			0.21			0.25
Net Realized and Unrealized Gain (Loss)		0.99			0.27			(2.24	)		0.79
Distributions of Net Realized Gains by other investment companies		—			0.00	(2)		—			—
Net Increase (Decrease) in Net Assets Resulting from Investment Operations		1.11			0.65			(2.03	)		1.04
Distributions from Net Investment Income		—			(0.56	)		—			(0.22	)
Distributions from Realized Capital Gains		—			—			(0.20	)		—
Total Distributions		—			(0.56	)		(0.20	)		(0.22	)
Net Asset Value, End of Period	$	24.89		$	23.78		$	23.69		$	25.92
Market Value, End of Period	$	24.87		$	23.79		$	23.64		$	25.93
Total Return
Total Investment Return Based on Net Asset Value(3)		4.67	%		2.68	%		(7.84	)%		4.17	%
Total Investment Return Based on Market(3)		4.54	%		2.92	%		(8.07	)%		4.20	%
Ratios/Supplemental Data
Net Assets, End of Period (000's omitted)	$	44,793		$	49,942		$	78,171		$	178,837
Ratio to Average Net Assets of:
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(4)		1.25	%		1.15	%		0.99	%		1.02	%
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(4)		1.24	%		1.15	%		1.08	%		1.04	%
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(4)		1.24	%		1.15	%		1.08	%		1.04	%
Net investment Income (Loss)(4)		0.97	%		1.54	%		0.87	%		1.45	%
Portfolio Turnover Rate(5)		134	%		236	%		475	%		187	%

See accompanying Notes to Financial Statements.

126

ADVISORSHARES TRUST
Financial Highlights (continued)

 

	AdvisorShares EquityPro ETF(6)						AdvisorShares Global Echo ETF
	Six months ended December 31, 2013 (Unaudited)			For the period July 10, 2012* to June 30, 2013			Six months ended December 31, 2013 (Unaudited)			Year ended June 30, 2013			For the period May 23, 2012* to June 30, 2012
Selected Data for a Share of Capital Stock Outstanding
Net Asset Value, Beginning of Period	$	27.13		$	25.00		$	54.38		$	50.80		$	50.00
Investment Operations
Net Investment Income (Loss)(1)		0.99			0.22			(0.10	)		(0.07	)		(0.02	)
Net Realized and Unrealized Gain (Loss)		2.40			2.06			6.30			3.88			0.82
Distributions of Net Realized Gains by other investment companies		—			—			—			—			—
Net Increase (Decrease) in Net Assets Resulting from Investment Operations		3.39			2.28			6.20			3.81			0.80
Distributions from Net Investment Income		(0.34	)		(0.13	)		(0.02	)		—			—
Distributions from Realized Capital Gains		—			(0.02	)		—			(0.23	)		—
Total Distributions		(0.34	)		(0.15	)		(0.02	)		(0.23	)		—
Net Asset Value, End of Period	$	30.18		$	27.13		$	60.56		$	54.38		$	50.80
Market Value, End of Period	$	30.20		$	27.12		$	60.60		$	54.53		$	50.99
Total Return
Total Investment Return Based on Net Asset Value(3)		12.51 %			9.16 %			11.41 %			7.54 %			1.60 %
Total Investment Return Based on Market(3)		11.36 %			9.11 %			11.18 %			7.43 %			1.98 %
Ratios/Supplemental Data
Net Assets, End of Period (000's omitted)	$	17,355		$	1,357		$	6,056		$	5,438		$	5,080
Ratio to Average Net Assets of:
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(4)		1.25 %			1.25 %			1.50 %			1.50 %			1.50 %
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(4)		4.26 %			6.95 %			1.50 %			1.50 %			1.50 %
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(4)		4.26 %			6.95 %			1.50 %			1.50 %			1.50 %
Net investment Income (Loss)(4)		7.20 %			0.88 %			(0.33	)%		(0.13	)%		(0.32	)%
Portfolio Turnover Rate(5)		41 %			43 %			62 %			180 %			70 %

See accompanying Notes to Financial Statements.

127

ADVISORSHARES TRUST
Financial Highlights (continued)

 

	AdvisorShares Madrona Domestic ETF
	Six months ended December 31, 2013 (Unaudited)			Year ended June 30, 2013			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	$	32.34		$	25.31		$	26.07		$	25.00
Investment Operations
Net Investment Income (Loss)(1)		0.06			0.15			0.10			0.00	(2)
Net Realized and Unrealized Gain (Loss)		6.04			7.01			(0.79	)		1.07
Distributions of Net Realized Gains by other investment companies		—			—			—			—
Net Increase (Decrease) in Net Assets Resulting from Investment Operations		6.10			7.16			(0.69	)		1.07
Distributions from Net Investment Income		(0.10	)		(0.13	)		(0.07	)		—
Distributions from Realized Capital Gains		—			—			—			—
Total Distributions		(0.10	)		(0.13	)		(0.07	)		—
Net Asset Value, End of Period	$	38.34		$	32.34		$	25.31		$	26.07
Market Value, End of Period	$	38.32		$	32.34		$	25.28		$	26.07
Total Return
Total Investment Return Based on Net Asset Value(3)		18.88 %			28.37 %			(2.65	)%		4.28 %
Total Investment Return Based on Market(3)		18.81 %			28.52 %			(2.76	)%		4.28 %
Ratios/Supplemental Data
Net Assets, End of Period (000's omitted)	$	22,047		$	18,593		$	15,188		$	2,607
Ratio to Average Net Assets of:
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(4)		1.25 %			1.25 %			1.25 %			1.25 %
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(4)		1.48 %			1.61 %			1.46 %			10.96 %
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(4)		1.48 %			1.61 %			1.46 %			10.96 %
Net investment Income (Loss)(4)		0.32 %			0.51 %			0.40 %			0.23 %
Portfolio Turnover Rate(5)		12 %			33 %			40 %			0 %

See accompanying Notes to Financial Statements.

128

ADVISORSHARES TRUST
Financial Highlights (continued)

 

	AdvisorShares Madrona Global Bond ETF												AdvisorShares Madrona International ETF
	Six months ended December 31, 2013 (Unaudited)			Year ended June 30, 2013			Year ended June 30, 2012			For the period June 21, 2011* to June 30, 2011			Six months ended December 31, 2013 (Unaudited)			Year ended June 30, 2013			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	$	25.05		$	25.69		$	25.01		$	25.00		$	23.97		$	21.06		$	26.17		$	25.00
Investment Operations
Net Investment Income (Loss)(1)		0.45			0.72			0.71			0.01			0.06			0.39			0.32			0.01
Net Realized and Unrealized Gain (Loss)		0.09			(0.66	)		0.67			—			4.89			2.82			(5.33	)		1.16
Distributions of Net Realized Gains by other investment companies		0.01			0.01			—			—			—			—			—			—
Net Increase (Decrease) in Net Assets Resulting from Investment Operations		0.55			0.07			1.38			0.01			4.95			3.21			(5.01	)		1.17
Distributions from Net Investment Income		(0.48	)		(0.71	)		(0.70	)		—			(0.49	)		(0.30	)		(0.08	)		—
Distributions from Realized Capital Gains		—			(0.00	)(2)		—			—			—			—			(0.02	)		—
Total Distributions		(0.48	)		(0.71	)		(0.70	)		—			(0.49	)		(0.30	)		(0.10	)		—
Net Asset Value, End of Period	$	25.12		$	25.05		$	25.69		$	25.01		$	28.43		$	23.97		$	21.06		$	26.17
Market Value, End of Period	$	25.10		$	24.96		$	25.68		$	25.02		$	28.39		$	23.95		$	21.11		$	26.18
Total Return
Total Investment Return Based on Net Asset Value(3)		2.21	%		0.20	%		5.59	%		0.04	%		20.69	%		15.24	%		(19.11	)%		4.68	%
Total Investment Return Based on Market(3)		2.50	%		(0.13	)%		5.49	%		0.08	%		20.58	%		14.86	%		(18.95	)%		4.72	%
Ratios/Supplemental Data
Net Assets, End of Period (000's omitted)	$	21,978		$	22,543		$	21,195		$	2,501		$	18,480		$	14,978		$	14,219		$	2,617
Ratio to Average Net Assets of:
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(4)		0.95	%		0.95	%		0.95	%		0.95	%		1.25	%		1.25	%		1.25	%		1.25	%
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(4)		1.10	%		1.02	%		0.99	%		11.08	%		1.62	%		1.65	%		1.54	%		10.99	%
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(4)		1.10	%		1.02	%		0.99	%		11.08	%		1.62	%		1.65	%		1.54	%		10.99	%
Net investment Income (Loss)(4)		3.55	%		2.73	%		2.81	%		1.68	%		0.46	%		1.65	%		1.48	%		1.14	%
Portfolio Turnover Rate(5)		7	%		28	%		12	%		0	%		92	%		93	%		110	%		19	%

See accompanying Notes to Financial Statements.

129

ADVISORSHARES TRUST
Financial Highlights (continued)

 

	AdvisorShares Meidell Tactical Advantage ETF
	Six months ended December 31, 2013 (Unaudited)			Year ended June 30, 2013			Year ended June 30, 2012			For the period June 23, 2011* to June 30, 2011
Selected Data for a Share of Capital Stock Outstanding
Net Asset Value, Beginning of Period	$	28.33		$	25.12		$	25.06		$	25.00
Investment Operations
Net Investment Income (Loss)(1)		0.07			0.14			0.00	(2)		0.01
Net Realized and Unrealized Gain (Loss)		1.54			3.30			0.08			0.05
Distributions of Net Realized Gains by other investment companies		—			—			—			—
Net Increase (Decrease) in Net Assets Resulting from Investment Operations		1.61			3.44			0.08			0.06
Distributions from Net Investment Income		—			(0.23	)		(0.02	)		—
Distributions from Realized Capital Gains		—			—			—			—
Total Distributions		—			(0.23	)		(0.02	)		—
Net Asset Value, End of Period	$	29.94		$	28.33		$	25.12		$	25.06
Market Value, End of Period	$	29.97		$	28.37		$	25.48		$	25.07
Total Return
Total Investment Return Based on Net Asset Value(3)		5.68	%		13.81	%		0.31	%		0.24	%
Total Investment Return Based on Market(3)		5.64	%		12.33	%		1.71	%		0.28	%
Ratios/Supplemental Data
Net Assets, End of Period (000's omitted)	$	15,718		$	9,209		$	5,652		$	2,506
Ratio to Average Net Assets of:
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(4)		1.35	%		1.35	%		1.35	%		1.35	%
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(4)		2.34	%		2.99	%		3.69	%		13.70	%
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(4)		2.34	%		2.99	%		3.69	%		13.70	%
Net investment Income (Loss)(4)		0.46	%		0.51	%		0.01	%		1.00	%
Portfolio Turnover Rate(5)		340	%		605	%		817	%		5	%

See accompanying Notes to Financial Statements.

130

ADVISORSHARES TRUST
Financial Highlights (continued)

 

	AdvisorShares Newfleet Multi-Sector Income ETF						AdvisorShares Peritus High Yield ETF
	Six months ended December 31, 2013 (Unaudited)			For the period March 19, 2013* to June 30, 2013			Six months ended December 31, 2013 (Unaudited)			Year ended June 30, 2013			Year ended June 30, 2012			For the period December 1, 2010* to June 30, 2011
Selected Data for a Share of Capital Stock Outstanding
Net Asset Value, Beginning of Period	$	49.04		$	50.00		$	50.43		$	48.59		$	51.59		$	50.00
Investment Operations
Net Investment Income (Loss)(1)		0.62			0.28			2.18			4.28			4.20			2.25
Net Realized and Unrealized Gain (Loss)		0.44			(0.99	)		1.26			1.66			(2.74	)		1.30
Distributions of Net Realized Gains by other invtment companies		—			—			—			—			0.00	(2)		—
Net Increase (Decrease) in Net Assets Resulting from Investment Operations		1.06			(0.71	)		3.44			5.94			1.46			3.55
Distributions from Net Investment Income		(0.69	)		(0.25	)		(2.14	)		(4.09	)		(3.99	)		(1.96	)
Distributions from Realized Capital Gains		—			—			(0.04	)		(0.01	)		(0.47	)		—
Total Distributions		(0.69	)		(0.25	)		(2.18	)		(4.10	)		(4.46	)		(1.96	)
Net Asset Value, End of Period	$	49.41		$	49.04		$	51.69		$	50.43		$	48.59		$	51.59
Market Value, End of Period	$	49.49		$	49.01		$	51.71		$	49.91		$	48.64		$	51.87
Total Return
Total Investment Return Based on Net Asset Value(3)		2.17	%		(1.42	)%		6.93	%		12.58	%		3.27	%		7.16	%
Total Investment Return Based on Market(3)		2.39	%		(1.48	)%		8.08	%		11.29	%		2.75	%		7.73	%
Ratios/Supplemental Data
Net Assets, End of Period (000's omitted)	$	98,823		$	83,362		$	460,064		$	259,729		$	92,328		$	43,851
Ratio to Average Net Assets of:
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(4)		0.75	%		0.75	%		1.18	%		1.25	%		1.35	%		1.34	%
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(4)		0.81	%		1.13	%		1.18	%		1.23	%		1.35	%		1.57	%
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(4)		0.81	%		1.13	%		1.18	%		1.23	%		1.35	%		1.57	%
Net investment Income (Loss)(4)		2.50	%		1.98	%		8.42	%		8.44	%		8.62	%		7.47	%
Portfolio Turnover Rate(5)		27	%		105	%		31	%		37	%		80	%		81	%

See accompanying Notes to Financial Statements.

131

ADVISORSHARES TRUST
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	AdvisorShares Pring Turner Business Cycle ETF						AdvisorShares QAM Equity Hedge ETF
	Six months ended December 31, 2013 (Unaudited)			For the period December 18, 2012* to June 30, 2013			Six months ended December 31, 2013 (Unaudited)			For the period August 7, 2012* to June 30, 2013
Selected Data for a Share of Capital Stock Outstanding
Net Asset Value, Beginning of Period	$	25.46		$	25.00		$	26.21		$	25.00
Investment Operations
Net Investment Income (Loss)(1)		0.14			0.18			(0.01	)		(0.12	)
Net Realized and Unrealized Gain (Loss)		1.11			0.28			2.27			1.51
Distributions of Net Realized Gains by other investment companies		—			—			—			—
Net Increase (Decrease) in Net Assets Resulting from Investment Operations		1.25			0.46			2.26			1.39
Distributions from Net Investment Income		(0.30	)		—			(0.37	)		(0.08	)
Distributions from Realized Capital Gains		—			—			(0.11	)		(0.10	)
Total Distributions		(0.30	)		—			(0.48	)		(0.18	)
Net Asset Value, End of Period	$	26.41		$	25.46		$	27.99		$	26.21
Market Value, End of Period	$	26.38		$	25.47		$	28.01		$	26.16
Total Return
Total Investment Return Based on Net Asset Value(3)		4.90	%		1.84	%		8.62	%		5.57	%
Total Investment Return Based on Market(3)		4.74	%		1.88	%		7.07	%		5.36	%
Ratios/Supplemental Data
Net Assets, End of Period (000's omitted)	$	5,281		$	5,729		$	6,999		$	3,932
Ratio to Average Net Assets of:
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(4)		1.49	%		1.49	%		1.50	%		1.50	%
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(4)		2.58	%		4.70	%		2.93	%		4.61	%
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(4)		2.58	%		4.70	%		2.93	%		4.55	%
Net investment Income (Loss)(4)		1.09	%		1.35	%		(0.10	)%		(0.50	)%
Portfolio Turnover Rate(5)		20	%		26	%		98	%		114	%

See accompanying Notes to Financial Statements.

132

ADVISORSHARES TRUST
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	AdvisorShares Ranger Equity Bear ETF												AdvisorShares STAR Global Buy-Write ETF
	Six months ended December 31, 2013 (Unaudited)			Year ended June 30, 2013			Year ended June 30, 2012			For the period January 27, 2011* to June 30, 2011			Six months ended December 31, 2013 (Unaudited)			For the period September 17, 2012* to June 30, 2013
Selected Data for a Share of Capital Stock Outstanding
Net Asset Value, Beginning of Period	$	16.17		$	23.33		$	22.65		$	25.00		$	23.61		$	25.00
Investment Operations
Net Investment Income (Loss)(1)		(0.21	)		(0.60	)		(0.72	)		(0.30	)		(0.06	)		(0.03	)
Net Realized and Unrealized Gain (Loss)		(3.19	)		(6.56	)		1.40			(2.05	)		1.43			(1.16	)
Distributions of Net Realized Gains by other invtment companies		—			—			—			—			—			—
Net Increase (Decrease) in Net Assets Resulting from Investment Operations		(3.40	)		(7.16	)		0.68			(2.35	)		1.37			(1.19	)
Distributions from Net Investment Income		—			—			—			—			—			(0.17	)
Distributions from Realized Capital Gains		—			—			—			—			—			(0.03	)
Total Distributions		—			—			—			—			—			(0.20	)
Net Asset Value, End of Period	$	12.77		$	16.17		$	23.33		$	22.65		$	24.98		$	23.61
Market Value, End of Period	$	12.78		$	16.16		$	23.34		$	22.65		$	25.03		$	23.62
Total Return
Total Investment Return Based on Net Asset Value(3)		(21.03	)%		(30.69	)%		3.00	%		(9.40	)%		5.80	%		(4.80	)%
Total Investment Return Based on Market(3)		(20.92	)%		(30.76	)%		3.05	%		(9.40	)%		5.97	%		(4.76	)%
Ratios/Supplemental Data
Net Assets, End of Period (000's omitted)	$	130,881		$	218,357		$	313,223		$	50,389		$	24,984		$	22,428
Ratio to Average Net Assets of:
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(4)		1.64	%		1.61	%		1.69	%		1.79	%		1.85	%		1.85	%
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(4)		2.86	%		3.12	%		3.06	%		3.16	%		1.87	%		2.35	%
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(4)		1.64	%		1.61	%		1.68	%		1.88	%		1.87	%		2.35	%
Net investment Income (Loss)(4)		(2.85	)%		(3.11	)%		(3.06	)%		(3.07	)%		(0.30	)%		(0.14	)%
Portfolio Turnover Rate(5)		260	%		697	%		756	%		635	%		82	%		40	%

See accompanying Notes to Financial Statements.

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Financial Highlights (continued)

 

	AdvisorShares TrimTabs Float Shrink ETF
	Six months ended December 31, 2013 (Unaudited)			Year ended June 30, 2013			For the period October 5, 2011* to June 30, 2012
Selected Data for a Share of Capital Stock Outstanding
Net Asset Value, Beginning of Period	$	41.05		$	33.16		$	26.20
Investment Operations
Net Investment Income (Loss)(1)		0.19			0.23			0.07
Net Realized and Unrealized Gain (Loss)		7.36			7.99			6.90
Distributions of Net Realized Gains by other investment companies		—			—			—
Net Increase (Decrease) in Net Assets Resulting from Investment Operations		7.55			8.22			6.97
Distributions from Net Investment Income		(0.15	)		(0.21	)		(0.01	)
Distributions from Realized Capital Gains		—			(0.12	)		—
Total Distributions		(0.15	)		(0.33	)		(0.01	)
Net Asset Value, End of Period	$	48.45		$	41.05		$	33.16
Market Value, End of Period	$	48.45		$	41.13		$	33.24
Total Return
Total Investment Return Based on Net Asset Value(3)		18.41	%		25.01	%		26.62	%
Total Investment Return Based on Market(3)		18.17	%		24.96	%		26.93	%
Ratios/Supplemental Data
Net Assets, End of Period (000's omitted)	$	98,103		$	25,657		$	8,291
Ratio to Average Net Assets of:
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(4)		0.99	%		0.99	%		0.99	%
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(4)		1.20	%		1.90	%		2.34	%
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(4)		1.20	%		1.90	%		2.34	%
Net investment Income (Loss)(4)		0.85	%		0.62	%		0.31	%
Portfolio Turnover Rate(5)		9	%		57	%		201	%

See accompanying Notes to Financial Statements.

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Financial Highlights (continued)

 

	AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF
	Six months ended December 31, 2013 (Unaudited)			Year ended June 30, 2013			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	$	32.65		$	28.72		$	31.46		$	25.00
Investment Operations
Net Investment Income (Loss)(1)		(0.01	)		0.11			0.07			0.15
Net Realized and Unrealized Gain (Loss)		4.97			3.99			(2.58	)		6.40
Distributions of Net Realized Gains by other invtment companies		—			0.00	(2)		—			—
Net Increase (Decrease) in Net Assets Resulting from Investment Operations		4.96			4.10			(2.51	)		6.55
Distributions from Net Investment Income		(0.02	)		(0.17	)		(0.11	)		(0.09	)
Distributions from Realized Capital Gains		—			—			(0.12	)		—
Total Distributions		(0.02	)		(0.17	)		(0.23	)		(0.09	)
Net Asset Value, End of Period	$	37.59		$	32.65		$	28.72		$	31.46
Market Value, End of Period	$	37.66		$	32.63		$	28.70		$	31.58
Total Return
Total Investment Return Based on Net Asset Value(3)		15.21	%		14.30	%		(7.94	)%		26.21	%
Total Investment Return Based on Market(3)		15.49	%		14.29	%		(8.36	)%		26.69	%
Ratios/Supplemental Data
Net Assets, End of Period (000's omitted)	$	10,339		$	7,346		$	6,462		$	8,651
Ratio to Average Net Assets of:
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense(4)		1.25	%		1.25	%		1.25	%		1.25	%
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense(4)		2.01	%		2.52	%		4.17	%		3.04	%
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense(4)		2.01	%		2.52	%		4.17	%		3.04	%
Net investment Income (Loss)(4)		(0.05	)%		0.36	%		0.24	%		0.52	%
Portfolio Turnover Rate(5)		20	%		38	%		16	%		34	%

See accompanying Notes to Financial Statements.

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ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2013

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 18 active funds (the “Funds” or “ETFs” and individually, the “Fund” or “ETF”):

Fund	Ticker		Commencement of Operations
AdvisorShares Accuvest Global Long Short ETF		AGLS		July 9, 2010
AdvisorShares Accuvest Global Opportunities ETF		ACCU		January 25, 2012
AdvisorShares Athena International Bear ETF		HDGI		July 18, 2013
AdvisorShares Cambria Global Tactical ETF		GTAA		October 26, 2010
AdvisorShares EquityPro ETF (formerly known as, AdvisorShares Global Alpha & Beta ETF)		EPRO		July 10, 2012
AdvisorShares Global Echo ETF		GIVE		May 23, 2012
AdvisorShares Madrona Domestic ETF		FWDD		June 21, 2011
AdvisorShares Madrona Global Bond ETF		FWDB		June 21, 2011
AdvisorShares Madrona International ETF		FWDI		June 21, 2011
AdvisorShares Meidell Tactical Advantage ETF		MATH		June 23, 2011
AdvisorShares Newfleet Multi-Sector Income ETF		MINC		March 19, 2013
AdvisorShares Peritus High Yield ETF		HYLD		December 1, 2010
AdvisorShares Pring Turner Business Cycle ETF		DBIZ		December 18, 2012
AdvisorShares QAM Equity Hedge ETF		QEH		August 7, 2012
AdvisorShares Ranger Equity Bear ETF		HDGE		January 27, 2011
AdvisorShares STAR Global Buy-Write ETF		VEGA		September 17, 2012
AdvisorShares TrimTabs Float Shrink ETF		TTFS		October 5, 2011
AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF		AADR		July 21, 2010

Effective December 1, 2013, AdvisorShares Global Alpha & Beta ETF changed its name to AdvisorShares EquityPro ETF.

AdvisorShares Accuvest Global Long Short ETF (“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.

AdvisorShares Accuvest Global Opportunities ETF (“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.

AdvisorShares Athena International Bear ETF (“Athena International Bear ETF”) seeks capital appreciation through short sales of international equity securities. The Portfolio Manager uses a behavioral finance approach to identifying securities to short. Stocks are screened and selected using the Portfolio Manager’s patented behavioral research.

AdvisorShares Cambria Global Tactical ETF (“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.

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ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2013

1. Organization - (continued)

AdvisorShares EquityPro ETF (“EquityPro ETF”) is a broadly diversified global equity ETF which seeks long-term capital growth. EPRO utilizes a “top-down” thematic approach while employing a proprietary security selection process and from time to time will employ risk management techniques to lower portfolio volatility and risk. EPRO is managed by The Elements Financial Group, LLC (Portfolio Manager). The Portfolio Manager seeks to achieve this objective by investing primarily in other ETPs, individual stocks, and American Depositary Receipts (ADRs) that provide investment exposure to global equity markets and that meet certain selection criteria established by the Portfolio Manager.

AdvisorShares Global Echo ETF (“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.

AdvisorShares Madrona Domestic ETF (“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.

AdvisorShares Madrona Global Bond ETF (“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.

AdvisorShares Madrona International ETF (“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.

AdvisorShares Meidell Tactical Advantage ETF (“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.

AdvisorShares Newfleet Multi-Sector Income ETF (“Newfleet Multi-Sector Income ETF”) seeks to provide current income consistent with preservation of capital, while limiting fluctuations in net asset value (“NAV”) due to changes in interest rates. In seeking to achieve the Fund’s investment objective, Newfleet Asset Management, LLC (the “Sub-Advisor”) applies a time-tested approach and extensive credit research to capitalize on opportunities across undervalued areas of the bond markets. The Fund principally invests in investment-grade securities, which are securities with credit ratings within the

137

ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2013

1. Organization - (continued)

four highest rating categories of a nationally recognized statistical rating organization or, if unrated, those securities that the Sub-Advisor determines to be of comparable quality.

AdvisorShares Peritus High Yield ETF (“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.

AdvisorShares Pring Turner Business Cycle ETF (“Pring Turner Business Cycle ETF”) seeks long-term growth from capital appreciation and income. DBIZ is managed by Pring Turner Capital Group (Portfolio Manager). The cornerstone of the Portfolio Manager’s investment philosophy rests on the core belief of building wealth consistently while minimizing portfolio risk. DBIZ is a multi-asset class fund that dynamically allocates among stock, bond, inflation-sensitive securities, and cash. The Portfolio Manager has developed a pro-active asset allocation and sector rotation process designed around the stage changes in the business cycle. DBIZ’s disciplined decision-making employs multiple layers of input including business cycle, fundamental, and technical analysis. This adaptive approach combines continuous asset allocation changes, diversification with careful sector selections, and income emphasis.

AdvisorShares QAM Equity Hedge ETF (“QAM Equity Hedge ETF”) seeks investment results that exceed the risk adjusted performance of approximately 50% of the long/short equity hedge fund universe as defined by the HFRI Equity Hedge Total Index constituents. QEH is managed by Commerce Asset Management, LLC (Portfolio Manager). The Portfolio Manager seeks to achieve this objective by employing an actively managed long/short equity strategy that attempts to gain global net equity exposures that approximate those of the universe of managers in the HFRI Equity Hedge Total Index. Additionally, the Portfolio Manager utilizes advanced algorithms including Markov Processes International’s (MPI) proprietary and patented style analysis technique and associated algorithms, DSA (Dynamic Style Analysis), patented hedge fund analysis software, combined with the Portfolio Manager’s qualitative knowledge of the hedge fund investor community to develop investment strategies.

AdvisorShares Ranger Equity Bear ETF (“Ranger Equity 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 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.

AdvisorShares STAR Global Buy-Write ETF (“STAR Global Buy-Write ETF”) seeks consistent repeatable returns across all market cycles. VEGA is sub-advised by Partnervest Advisory Services, LLC (Portfolio Manager). The Portfolio Manager seeks to achieve this investment objective by using a proprietary strategy known as Volatility Enhanced Global Appreciation (VEGA). VEGA employs a “Buy-Write” or “Covered Call” overlay for their global allocation strategy using ETPs. The strategy simultaneously writes (sells) a call option against each position in order to seek cumulative price appreciation from the portfolio’s global exposure, while generating a consistent income stream from the sale of covered call and/or cash-secured put options. When volatility is low the portfolio manager buys protective put options to manage downside risk.

138

ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2013

1. Organization - (continued)

AdvisorShares TrimTabs Float Shrink ETF (“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.

AdvisorShares WCM/BNY Mellon Focused ADR ETF (“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.

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 Accuvest Global Long Short ETF, the Cambria Global Tactical ETF, the QAM Equity Hedge ETF and the STAR Global Buy-Write 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

139

ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2013

2. Summary of Significant Accounting Policies - (continued)

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 Fund’s risk of loss consists of the net amount of payments that the Fund is contractually entitled to receive, if any. Equity swaps are derivatives and their value can be very volatile. To the extent that the Adviser or 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 Athena International Bear ETF, the Cambria Global Tactical ETF, the Pring Turner Business Cycle ETF, the QAM Equity Hedge ETF and the Ranger Equity Bear 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, Athena International Bear ETF and Ranger Equity Bear ETF for the period ended December 31, 2013 are $87,455, $30,187, and $473,996, 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 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

140

ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2013

2. Summary of Significant Accounting Policies - (continued)

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 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 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.

Securities Lending

Each Fund may lend portfolio securities to certain credit worthy borrowers, including the Funds’ securities lending agent. It is the Funds’ policy that, at origination, all loans are secured by collateral of at least 102% of the value of U.S. securities loaned and 105% of the value of foreign securities loaned. Collateral in the form of cash and/or high grade debt obligations, equivalent to at least 100% of the market value of securities loaned, is maintained at all times. Cash collateral Can be invested in certain money market mutual funds which also have exposure to the fluctuations of the market. Each Fund receives compensation for lending its securities from interest or dividends earned on the cash or U.S. government securities held as collateral, net of fee rebates paid to the borrower plus reasonable administrative and custody fees. The dividend and interest income earned on the securities loaned is accounted for in the same manner as other dividend and interest income. The borrower pays to the

141

ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2013

2. Summary of Significant Accounting Policies - (continued)

Funds an amount equal to any dividends or interest received on loaned securities. Lending portfolio securities could result in a loss or delay in recovering the Fund’s securities if the borrower default.

Price information on ETFs is taken from the exchange where the security is primarily traded. Under normal conditions, the Funds invest cash collateral from securities lending activities into BNY Mellon Securities Lending Overnight Fund (“BNY Mellon Securities Lending Overnight”). The BNY Mellon Securities Lending Overnight Fund investment objective is the maximization of current income to the extent consistent with preservation of capital and the maintenance of liquidity. BNY Mellon Securities Lending Overnight Fund has no redemption restrictions, and is valued at NAV.

Due to the inherent uncertainty of valuations, fair values may differ significantly from the values that would have been used had an active market existed. Fair valuation could result in a different NAV than a NAV determined by using market quotes.

The securities lending income earned by the Funds is disclosed on the Statements of Operations. The value of loaned securities and related collateral outstanding at December 31, 2013 are shown in the Schedules of Investments and Statements of Assets and Liabilities.

Liabilities:			Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Statement of Financial Position		Net Amounts Presented in the Statements of Financial Position		Gross Amounts not offset in the Statement of Assets and Liabilities
Fund	Description								Financial Instruments		Collateral Pledged/ Received		Net Amount
Accuvest Global Opportunities ETF		Securities Lending	$	3,342,825	$	—	$	3,342,825		3,342,825*	$	—	$	—
Cambria Global Tactical ETF		Securities Lending		6,305,550		—		6,305,550		6,305,550*		—		—
EquityPro ETF		Securities Lending		855,075		—		855,075		855,075*		—		—
Global Echo ETF		Securities Lending		327,399		—		327,399		327,399*		—		—
Madrona Domestic ETF		Securities Lending		189,656		—		189,656		189,656*		—		—
Madrona Global Bond ETF		Securities Lending		6,707,087		—		6,707,087		6,707,087*		—		—
Madrona International ETF		Securities Lending		3,986,977		—		3,986,977		3,986,977*		—		—
Meidell Tactical Advantage ETF		Securities Lending		4,095,324		—		4,095,324		4,095,324*		—		—
NewFleet Multi-Sector Income ETF		Securities Lending		1,133,630		—		1,133,630		1,133,630*		—		—
Peritus High Yield ETF		Securities Lending		59,608,290				59,608,290		59,608,290*		—		—
Pring Turner Business Cycle		Securities Lending		474,323		—		474,323		474,323*		—		—
TrimTabs Float Shrink ETF		Securities Lending		1,455,433		—		1,455,433		1,455,433*		—		—
WCM/BNY Mellon Focused Growth ADR ETF		Securities Lending		1,491,400		—		1,491,400		1,491,400*		—		—

* Collateral for securities on loan included in the Schedule of Investments.

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

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December 31, 2013

2. Summary of Significant Accounting Policies - (continued)

determined in accordance with income tax regulations which may differ from U.S. generally accepted accounting principles. Distributions are recorded on ex-dividend date.

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:
Accuvest Global Long Short ETF		1.35	%
Accuvest Global Opportunities ETF		0.95	%
Athena International Bear 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	%
EquityPro ETF*		0.80	%
Global Echo ETF		1.10	%
Madrona Domestic ETF		0.80	%
Madrona Global Bond ETF		0.50	%
Madrona International ETF		0.80	%
Meidell Tactical Advantage ETF		1.20	%
Newfleet Multi-Sector Income ETF		0.65	%
Peritus High Yield ETF		1.10	%
Pring Turner Business Cycle ETF		1.00	%
QAM Equity Hedge ETF		1.00	%
Ranger Equity Bear ETF		1.50	%
STAR Global Buy-Write ETF		1.35	%
TrimTabs Float Shrink ETF		0.99	%
WCM/BNY Mellon Focused Growth ADR ETF		0.75	%

* Formerly known as, Global Alpha & Beta ETF.

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December 31, 2013

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

Effective December 1, 2013, Global Alpha & Beta ETF changed its name to EquityPro ETF. Prior to December 1, 2013 the Advisor's annual management fee for the Fund was as follows:

$0 – $100,000,000		1.00	%
$100,000,001 – $250,000,000		0.90	%
$250,000,001 – $1,000,000,000		0.80	%
$1,000,000,001 +		0.70	%

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 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.

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	%

Accuvest Global Advisors 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.

AthenaInvest Advisors, LLC serves as investment sub-advisor to Athena International Bear ETF. They receive a sub-advisory fee at an annual fee of 0.50% based on the average daily net assets.

Cambria Investment Management, 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	%

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December 31, 2013

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

The Elements Financial Group, LLC serves as investment sub-advisor to EquityPro ETF. They receive a sub-advisory fee at an annual fee of 0.40% based on the average daily net assets.

Prior to the change in sub-advisory agreement on December 1, 2013, EquityPro ETF (formerly known as Global Alpha & Beta ETF) was sub-advised by Your Source Financial, PLC. They received 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		0.35	%
$100,000,001 – $250,000,000		0.315	%
$250,000,001 – $1,000,000,000		0.28	%
$1,000,000,001 +		0.245	%

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.

Madrona Funds, LLC serves as investment sub-advisor to Madrona Domestic ETF, Madrona Global Bond ETF and Madrona International 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 Global Bond ETF		0.25	%
Madrona International ETF		0.40	%

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.

Newfleet Asset Management, LLC serves as the investment sub-advisor to Newfleet Multi-Sector Income 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.

Pring Turner Capital Group serves as the investment sub-advisor to Pring Turner Business Cycle ETF. They receive a sub-advisory fee at an annual fee of 0.55% based on the average daily net assets.

Commerce Asset Management, LLC serves as investment sub-advisor to QAM Equity Hedge 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		0.55	%
$250,000,001 +		0.60	%

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

Partnervest Advisory Services, LLC serves as investment sub-advisor to STAR Global Buy-Write ETF. They receive a sub-advisory fee at an annual fee of 0.85% 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.

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December 31, 2013

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

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.

From time to time, each sub-adviser may waive all or a portion of its fee.

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 December 31, 2013 were as follows:

Fund:	Rate:
Accuvest Global Long Short ETF		1.50	%
Accuvest Global Opportunities ETF		1.25	%
Athena International Bear ETF		1.50	%
Cambria Global Tactical ETF		1.25	%
EquityPro ETF*		1.25	%
Global Echo ETF		—
Madrona Domestic ETF		1.25	%
Madrona Global Bond ETF		0.95	%
Madrona International ETF		1.25	%
Meidell Tactical Advantage ETF		1.35	%
Newfleet Multi-Sector Income ETF		0.75	%
Peritus High Yield ETF		1.35	%
Pring Turner Business Cycle ETF		1.49	%
QAM Equity Hedge ETF		1.50	%
Ranger Equity Bear ETF		1.85	%
STAR Global Buy-Write ETF		1.85	%
TrimTabs Float Shrink ETF		0.99	%
WCM/BNY Mellon Focused Growth ADR ETF		1.25	%

* Formerly known as, Global Alpha & Beta ETF.

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Notes to Financial Statements
December 31, 2013

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

For the period ended December 31, 2013, the Advisor waived fees and reimbursed expenses for each Fund as follows. Each Fund may recoup such waivers until the date indicated.

Fund:	Expenses Reimbursed:		Recoupment Balance:		Recoupment Expiration:
Accuvest Global Long Short ETF	$	66,702	$	64,292		06/30/2014
		204,653		204,653		06/30/2015
		83,973		83,973		06/30/2016
		28,368		28,368		06/30/2017
Total Accuvest Global Long Short ETF		383,696		381,286
Accuvest Global Opportunities ETF		45,384		45,384		06/30/2015
		49,308		49,308		06/30/2016
		31,803		31,803		06/30/2017
Total Accuvest Global Opportunities ETF		126,495		126,495
Athena International Bear ETF		52,898		52,898		06/30/2017
Total Athena International Bear ETF		52,898		52,898
Cambria Global Tactical ETF		129,750		116,916		06/30/2015
		15,570		15,571		06/30/2016
		1,698		1,698		06/30/2017
Total Cambria Global Tactical ETF		147,018		134,185
EquityPro ETF		83,603		83,603		06/30/2016
		43,884		43,884		06/30/2017
Total EquityPro ETF		127,487		127,487
Madrona Domestic ETF		6,733		6,534		06/30/2014
		30,175		30,175		06/30/2015
		59,617		59,617		06/30/2016
		23,704		23,704		06/30/2017
Total Madrona Do mestic ETF		120,229		120,030
Madrona Global Bond ETF		5,992		1,257		06/30/2015
		28,515		28,515		06/30/2016
		17,238		17,238		06/30/2017
Total Madrona Global Bond ETF		51,745		47,010
Madrona International ETF		6,735		6,735		06/30/2014
		36,187		36,187		06/30/2015
		60,597		60,597		06/30/2016
		32,149		32,149		06/30/2017
Total Madrona International ETF		135,668		135,668
Meidell Tactical Advantage ETF		6,772		4,507		06/30/2014
		79,573		79,573		06/30/2015
		119,857		119,857		06/30/2016
		56,037		56,037		06/30/2017
Total Meidell Tactical Advantage ETF		262,239		259,974
Newfleet Multi-Sector Income ETF		76,615		76,615		06/30/2016
		27,794		27,794		06/30/2017
Total Newfleet Multi-Sector Income ETF		104,409		104,409

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December 31, 2013

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

Fund:	Expenses Reimbursed:		Recoupment Balance:		Recoupment Expiration:
Pring Turner Business Cycle ETF	$	68,085	$	68,085		06/30/2016
		29,783		29,783		06/30/2017
Total Pring Turner Business Cycle ETF		97,868		97,868
QAM Equity Hedge ETF		98,205		98,205		06/30/2016
		38,544		38,544		06/30/2017
Total QAM Equity Hedge ETF		136,749		136,749
STAR Global Buy-Write ETF		58,584		57,706		06/30/2016
		3,240		3,240		06/30/2017
Total STAR Global Buy-Write ETF		61,824		60,946
TrimTabs Float Shrink ETF		66,768		66,768		06/30/2015
		113,494		113,494		06/30/2016
		69,172		69,172		06/30/2017
Total TrimTabs Float Shrink ETF		249,434		249,434
WCM/BNY Mellon Focused Growth ADR ETF		118,635		114,564		06/30/2014
		214,032		214,032		06/30/2015
		93,893		93,893		06/30/2016
		29,541		29,541		06/30/2017
Total WCM/BNY Mellon Focused Growth ADR ETF		456,101		452,030

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.

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 the 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

148

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December 31, 2013

4. Creation and Redemption Transactions - (continued)

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.

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.

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Notes to Financial Statements
December 31, 2013

5. Summary of Fair Value Disclosure - (continued)

The following is a summary of the inputs used as of December 31, 2013 in valuing the Funds’ assets carried at fair value:

	Accuvest Global Long Short ETF			Accuvest Global Opportunities ETF		Athena International Bear ETF			Cambria Global Tactical ETF		EquityPro ETF		Global Echo ETF
Assets
Level 1
Exchange Traded Funds	$	42,860,799		$	21,228,156	$	—		$	42,548,663	$	16,963,260	$	1,355,816
Common Stocks		—			—		—			—		—		3,200,262
Money Market Funds		465,257			322,564		1,475,113			2,492,551		471,740		379,635
Level 2
Common Stocks		—			—		—			—		—		68,974
Municipal Bonds		—			—		—			—		—		400,000
Asset Backed Securities		—			—		—			—		—		401,325
Commerical Mortgage Backed Securities		—			—		—			—		—		258,350
Swaps Contracts†		208,820			—		—			—		—		—
Investment of Cash Collateral for Securities Loaned		—			3,342,825		—			6,305,550		855,075		327,399
Liabilities
Level 1
Common Stocks		—			—		(804,845	)		—		—		—
Level 2
Swaps Contracts†		(664,217	)		—		—			—		—		—
Total	$	42,870,659		$	24,893,545	$	670,268		$	51,346,764	$	18,290,075	$	6,391,761

	Madrona Domestic ETF		Madrona Global Bond ETF		Madrona International ETF		Meidell Tactical ETF		Newfleet Multi-Sector Income ETF		Peritus High Yield ETF
Assets
Level 1
Exchange Traded Funds	$	—	$	21,818,546	$	—	$	15,197,585	$	—	$	—
Common Stocks		21,838,133		—		18,515,864		—		—		8,618,165
Money Market Fund		219,998		166,221		���		567,723		1,259,188		14,350,886
Level 2
Corporate Bonds		—		—		—		—		24,256,841		297,016,668
Foreign Bonds		—		—		—		—		4,983,379		88,805,107
U.S. Treasury Notes		—		—		—		—		7,256,531		—
U.S. Government Agency Securities		—		—		—		—		3,217,010		—
Asset Backed Securities		—		—		—		—		11,394,617		—
Mortgage Backed Securities		—		—		—		—		38,299,490		—
Term Loans		—		—		—		—		7,537,970		55,166,827
Investment of Cash Collateral for Securities Loaned		189,656		6,707,087		3,986,977		4,095,324		1,133,630		59,608,290
Total	$	22,247,787	$	28,691,854	$	22,502,841	$	19,860,632	$	99,338,656	$	523,565,943

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December 31, 2013

5. Summary of Fair Value Disclosure - (continued)

	Pring Turner Business Cycle ETF		QAM Equity Hedge ETF			Ranger Equity Bear ETF			STAR Global Buy-Write ETF			TrimTabs Float Shrink ETF		WCM/BNY Mellon Focused Growth ADR ETF
Assets
Level 1
Exchange Traded Funds	$	1,138,067	$	6,472,924		$	—		$	16,699,824		$	—	$	—
Exchange Traded Notes		—		44,204			—			—			—		—
Common Stocks		2,972,242		—			—			—			98,188,448		10,073,355
Money Market Funds		1,107,664		752,139			7,500,000			3,391,161			—		280,769
Level 2
U.S. Treasury Notes		—		—			—			29,760			—		—
Purchased Options		—		—			—			1,999,027			—		—
Investment of Cash Collateral for Securities Loaned		474,323		—			—			—			1,455,433		1,491,400
Liabilities
Level 1
Exchange Traded Funds		—		(428,711	)		—			—			—		—
Common Stocks		—		—			(128,728,064	)		—			—		—
Written Options		—		—			—			(137,465	)		—		—
Total	$	5,692,296	$	6,840,556		$	(121,228,064	)	$	21,982,307		$	99,643,881	$	11,845,524

† Derivative instruments, including swap contracts, are valued at the net unrealized gain (loss) on the instrument.

There were no transfers between Level 1 and Level 2 fair value measurements that occurred during the period ended December 31, 2013.

The Funds did not hold any level 3 securities as of December 31, 2013.

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.

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December 31, 2013

6. Valuation of Derivative Instruments - (continued)

At December 31, 2013, the fair values of derivative instruments were as follows:

Statement of Assets and Liabilities:

Fund:	Asset Derivatives:		Equity Risk
Accuvest Global Long Short ETF		Unrealized Appreciation on Swaps Contracts	$	208,820
STAR Global Buy-Write ETF		Investments – Options Purchased		29,760
			$	238,580

Fund:	Liability Derivatives:		Equity Risk
Accuvest Global Long Short ETF		Unrealized Depreciation on Swaps Contracts	$	(664,217	)
STAR Global Buy-Write ETF		Investments – Options Purchased		(137,465	)
			$	(801,682	)

Transactions in derivative instruments during the period ended December 31, 2013, were as follows:

Statement of Operations:

Fund:	Realized Gain (Loss):		Equity Risk
Accuvest Global Long Short ETF		Swaps	$	(1,573,144	)
QAM Equity Hedge ETF		Swaps		7,439
STAR Global Buy-Write ETF		Investments – Options Purchased		(376,404	)
STAR Global Buy-Write ETF		Options Written		255,078
			$	(1,687,031	)

Fund:	Change in Unrealized Gain (Loss):		Equity Risk
Accuvest Global Long Short ETF		Swaps	$	(1,198,812	)
QAM Equity Hedge ETF		Swaps		5,101
STAR Global Buy-Write ETF		Investments – Options Purchased		172,984
STAR Global Buy-Write ETF		Options Written		56,390
			$	(964,337	)

For the period ended December 31, 2013, the volume of the derivatives held by the Funds was as follows:

	Accuvest Global Long Short ETF		STAR Global Buy-Write ETF
Short Equity Swaps Contracts		2,451,608		—
Purchased Equity Options Contracts		—		29,760
Written Equity Options Contracts		—		137,465

152

ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2013

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 (2011 – 2013), as defined by IRS statute of limitations, for all major jurisdictions, including federal tax authorities and certain state tax authorities. As of December 31, 2013, 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.

At December 31, 2013, the approximate 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)			Other Derivatives Net Unrealized Appreciation/(Depreciation)
Accuvest Global Long Short ETF	$	40,282,023		$	3,044,033	$	—		$	3,044,033		$	(422,397	)
Accuvest Global Opportunities ETF		23,343,159			1,550,386		—			1,550,386			—
Athena International Bear ETF		706,550			183		(36,465	)		(36,282	)		—
Cambria Global Tactical ETF		48,132,833			3,343,332		(129,401	)		3,213,931			—
EquityPro ETF		17,937,149			352,926		—			352,926			—
Global Echo ETF		5,615,455			821,628		(45,322	)		776,306			—
Madrona Domestic ETF		16,883,959			5,501,878		(138,050	)		5,363,828			—
Madrona Global Bond ETF		28,997,818			301,798		(607,462	)		(305,664	)		—
Madrona International ETF		20,442,213			2,637,118		(576,490	)		2,060,628			—
Meidell Tactical Advantage ETF		19,839,785			20,847		—			20,847			—
Newfleet Multi-Sector Income ETF		100,049,424			366,719		(1,077,487	)		(710,768	)		—
Peritus High Yield ETF		518,271,398			12,906,457		(7,611,912	)		5,294,545			—
Pring Turner Business Cycle ETF		5,583,242			286,426		(177,372	)		109,054			—
QAM Equity Hedge ETF		6,346,598			514,511		(20,553	)		493,958			—
Ranger Equity Bear ETF		(107,562,620	)		167,932		(13,833,376	)		(13,665,444	)		—
STAR Global Buy-Write ETF		21,213,751			1,161,465		(392,909	)		768,556			—
TrimTabs Float Shrink ETF		93,640,840			6,621,377		(618,336	)		6,003,041			—
WCM/BNY Mellon Focused Growth ADR ETF		10,121,974			1,808,969		(85,419	)		1,723,550			—

153

ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2013

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, 2013 are as follows:

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

Fund	Late Year Ordinary Deferral		Short-Term Post-Effective No Expiration			Long-Term Post-October Loss
Accuvest Global Long Short ETF	$	98,523	$	1,329,087		$	—
Accuvest Global Opportunities ETF		—		893,601			—
Cambria Global Tactical ETF		142,589		685,699			25,236
EquityPro ETF*		—		6,154			—
Global Echo ETF		—		13,444			—
Madrona Domestic ETF		—		—			55,559
Madrona Global Bond ETF		—		31,193			—
Madrona International ETF		—		134,152			6,095
Meidell Tactical Advantage ETF		437		177,161			4,123
Newfleet Multi-Sector Income ETF		—		24,578	��		—
Peritus High Yield ETF		—		—			689,090
Pring Turner Business Cycle ETF		—		21,222			—
QAM Equity Hedge ETF		17,470		—			1,204
Ranger Equity Bear ETF		3,078,609		55,907,531			—
STAR Global Buy-Write ETF		109,831		117,720			367,877

* Formerly known as, Global Alpha & Beta ETF.

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	$	4,677,321	$	431,658	$	5,108,979
Accuvest Global Opportunities ETF		964,958		—		964,958
Cambria Global Tactical ETF		19,479,755		—		19,479,755
Global Echo ETF		54,816		—		54,816
Madrona Domestic ETF		1,058,754		180,546		1,239,300
Madrona Global Bond ETF		—		18,086		18,086
Madrona International ETF		2,103,717		347,684		2,451,401
Meidell Tactical Advantage ETF		303,291		—		303,291
Ranger Equity Bear ETF		35,893,824		—		35,893,824
TrimTabs Float Shrink ETF		44,651		—		44,651
WCM/BNY Mellon Focused Growth ADR ETF		—		167,157		167,157

154

ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2013

7. Federal Income Tax - (continued)

The Funds did not have any capital loss carryforwards to offset taxable capital gains realized during the period ended July 1, 2013.

On December 22, 2010, the Regulated Investment Company (“RIC”) Modernization Act of 2010 (the “Act”), The Act permits 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.

8. Other Affiliated Parties and Transactions

Affiliated holdings are funds which are managed by the Trust or an affiliate of the Trust. Transactions with affiliated companies during the period ended December 31, 2013 are as follows:

Affiliated Fund Name	Value at 06/30/2013		Purchases/ Additions		Sales/ Reductions			Value at 12/31/2013		Dividend Income		Realized Gain (Loss)
Global Echo ETF
Ranger Equity Bear ETF	$	25,840	$	38,196	$	(48,232	)	$	16,588	$	—	$	(3,030	)
Madrona Global Bond ETF
Peritus High Yield ETF		2,049,143		566,965		(58,152	)		2,629,652		100,335		2,151
Pring Turner Business Cycle ETF
Peritus High Yield ETF		282,085		64,296		(96,928	)		259,790		11,385		2,633

9. Investment Transactions

Purchases and sales of investments for the period ended December 31, 2013 are as follows:

	Purchases						Sales
Fund	Long Term		U.S. Government		In-Kind		Long Term		U.S. Government		In-Kind
Accuvest Global Long Short ETF	$	63,554,361	$	—	$	35,543,707	$	53,234,449	$	—	$	39,462,100
Accuvest Global Opportunities ETF		19,041,364		—		12,979,010		18,876,708		—		11,013,575
Athena International Bear ETF		5,553,365		—		—		6,169,015		—		—
Cambria Global Tactical ETF		68,227,354		—		—		59,531,489		—		6,989,373
EquityPro ETF		1,606,437		—		16,569,793		1,461,955		—		1,416,917
Global Echo ETF		3,401,001		—		—		3,311,214		—		—
Madrona Domestic ETF		4,572,152		—		—		2,352,580		—		2,187,966
Madrona Global Bond ETF		1,510,645		—		—		1,510,585		—		622,921
Madrona International ETF		15,474,332		—		662,922		15,407,348		—		—
Meidell Tactical Advantage ETF		35,720,409		—		19,452,330		32,653,452		—		14,210,565
Newfleet Multi-Sector Income ETF		31,261,025		7,745,231		—		16,558,628		7,687,249		—
Peritus High Yield ETF		296,915,873		—		—		108,883,906		—		—
Pring Turner Business Cycle ETF		1,110,512		—		965,499		799,277		—		1,426,733
QAM Equity Hedge ETF		6,367,915		—		1,109,334		4,783,731		—		—
Ranger Equity Bear ETF		573,196,031		—		—		447,726,437		—		—
STAR Global Buy-Write ETF		12,119,123		—		2,458,496		12,148,920		—		1,501,885

155

ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2013

9. Investment Transactions - (continued)

	Purchases						Sales
Fund	Long Term		U.S. Government		In-Kind		Long Term		U.S. Government		In-Kind
TrimTabs Float Shrink ETF	$	6,202,675	$	—	$	185,132,102	$	25,969,633	$	—	$	103,181,356
WCM/BNY Mellon Focused Growth ADR ETF		1,621,021		—		3,471,002		1,581,251		—		1,643,257

Options written transactions, during the period ended December 31, 2013, were as follows:

STAR Global Buy-Write ETF	Contracts			Premiums Paid/Received
Options outstanding at June 30, 2013		2,592		$	241,514
Options written		5,671			512,539
Options terminated in closing purchase transactions		(3,015	)		(298,582	)
Options expired		(3,932	)		(336,092	)
Options outstanding at December 31, 2013		1,316		$	119,379

10. 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 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.

156

ADVISORSHARES TRUST
Notes to Financial Statements
December 31, 2013

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

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.

11. New Accounting Pronouncements

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.

On January 31, 2013, FASB issued Accounting Standards Update No. 2013-01 “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities” (“ASU 2013-01”). ASU 2013-01 limits the scope of the new balance sheet offsetting disclosures to the following financial instruments, to the extent they are offset in the financial statements or subject to an enforceable master netting arrangement or similar agreement: (i) recognized derivative instruments accounted for under ASC 815 (Derivatives and Hedging); (ii) repurchase agreements and reverse repurchase agreements; and (iii) securities borrowing and securities lending transactions. The disclosures are required irrespective of whether the transactions are offset in the statement of assets and liabilities. The effective date and transition of the disclosure requirements in ASU 2011-11 remain unchanged.

At this time, management is evaluating the implications of ASU 2011-11 and ASU 2013-01 and their impact on the Trust’s financial statements.

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.

157

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	Chief Executive Officer, Principal Financial Officer and President of AdvisorShares Trust (2006 – present); Chief Executive Officer, President 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/Chief Operating Officer of NADA Retirement Administrators, Inc. (2009 – present); President of Cardinal Trust and Investments; Chief Investment Officer 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	Chief Executive Officer, Principal Financial Officer and President of AdvisorShares Trust (2006 – present); Chief Executive Officer, President and 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

158

ADVISORSHARES TRUST
Board of Trustees and Officers (Unaudited) (continued)

 

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
Dan Ahrens 4144 N. Central Expressway, Suite 600, Dallas, TX 75204 (1966)	Chief Compliance Officer, Secretary & Treasurer, No set term; served since 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

* Mr. Hamman is an “interested” person of the Trust, as that term is defined in the 1940 Act, by virtue of his ownership and controlling interest in the Advisor.

159

Board Review of Investment Advisory and Sub-Advisory Agreements
 

Renewal of the Sub-Advisory Agreements for AdvisorShares Cambria Global Tactical ETF, AdvisorShares Ranger Equity Bear ETF, AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF, AdvisorShares Madrona Domestic ETF, AdvisorShares Madrona International ETF, AdvisorShares Madrona Global Bond ETF, AdvisorShares Global Echo ETF, AdvisorShares QAM Equity Hedge ETF, and AdvisorShares STAR Global Buy-Write ETF

At meetings of the Board of Trustees (the “Board”) of AdvisorShares Trust (the “Trust”) held on August 6, 2013 and November 13, 2013 (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 the renewal of separate sub-advisory agreements (collectively, the “Sub-Advisory Agreements”), on behalf of certain series of the Trust (each, a “Fund” and collectively, the “Funds”), between AdvisorShares Investments, LLC (the “Advisor”) and (1) Cambria Investment Management, L.P., on behalf of the AdvisorShares Cambria Global Tactical ETF, (2) Ranger Alternative Management, L.P., on behalf of the AdvisorShares Ranger Equity Bear ETF, (3) WCM Investment Management, on behalf of the AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF, (4) Madrona Funds, LLC, on behalf of the AdvisorShares Madrona Domestic ETF, AdvisorShares Madrona International ETF and AdvisorShares Madrona Global Bond ETF, (5) First Affirmative Financial Network LLC, Baldwin Brothers Inc., Community Capital Management, Inc., and Reynders, McVeigh Capital Management LLC, on behalf of the AdvisorShares Global Echo ETF, (6) Commerce Asset Management, LLC, on behalf of the AdvisorShares QAM Equity Hedge ETF, and (7) Partnervest Advisory Services, on behalf of the AdvisorShares STAR Global Buy-Write 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 Funds, as applicable.

Pursuant to Section 15(c) of the 1940 Act, the Board must annually review and approve the Sub-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 meetings to decide whether to renew the Sub-Advisory Agreements for an additional one-year term. In preparation for the meetings, the Board requests and reviews a wide variety of information from the Advisor and Sub-Advisors. The Board uses this information, as well as other information that the Advisor, Sub-Advisors and other service providers may submit to the Board, to help decide whether to renew the Sub-Advisory Agreements for an additional year.

Prior to the Meetings, the Board, including the Independent Trustees, reviewed written materials from each Sub-Advisor regarding, among other things: (i) the nature, extent and quality of the services to be provided by each Sub-Advisor; (ii) the investment performance of each Fund; (iii) the costs of the services to be provided and profits and other benefits to be realized by the Sub-Advisor and its affiliates from the relationship with each Fund; (iv) the respective personnel and operations of the Sub-Advisor; (v) the extent to which economies of scale would be realized as each Fund grows; and (vi) whether fee levels reflect the sharing of these economies of scale for the benefit of each Fund’s shareholders, as discussed in further detail below.

At the Meetings, representatives of each Sub-Advisor, along with other service providers to the Funds, presented additional oral and written information to help the Board evaluate each Sub-Advisor’s advisory fees and other aspects of the Sub-Advisory Agreements. Representatives from each Sub-Advisor provided an overview of the Sub-Advisor’s operations and management of the Funds, including comparative fee data and profitability analysis for each Fund, and also discussed compliance oversight. The representatives for each Sub-Advisor then discussed their management of each Fund in more detail, including the Fund’s strategy, the Fund’s positioning in the market, and its attractive and unique offering. The representatives also described each Sub-Advisor’s business generally, including any noteworthy personnel changes. The Board then discussed the written materials that the Board

160

Board Review of Investment Advisory and Sub-Advisory Agreements - (Continued)
 

received before the Meetings, the Sub-Advisor’s oral presentations and any other information that the Board received at the Meetings, and deliberated on the renewal of the Sub-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 each Sub-Advisor and the renewal of its Sub-Advisory Agreement. The Board did not identify any single piece of information that was all-important, controlling or determinative of its decision.

Nature, Extent and Quality of Services

In considering the nature, extent and quality of the services provided by each Sub-Advisor, the Board reviewed the portfolio management services provided to the Funds. The most recent Form ADV for each Sub-Advisor was also provided to the Board, as were the responses of each Sub-Advisor to a detailed series of questions which requested, 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 each Sub-Advisor’s overall quality of personnel, operations, and financial condition, investment advisory capabilities, and information concerning the Sub-Advisor’s 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 each Sub-Advisor.

Performance of the Funds

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

Cost of Advisory Services, Profitability and Economies of Scale

In concluding that the sub-advisory fees payable with respect to each Fund are reasonable, the Board reviewed a report of the sub-advisory fees paid by the Advisor to each Sub-Advisor, the fees and expenses waived and/or reimbursed by each Sub-Advisor over the period, the costs and other expenses incurred by each Sub-Advisor in providing advisory services, and the profitability analysis with respect to each Fund. The Board also reviewed reports comparing the advisory fees paid by each Fund to those paid by comparable funds and noted that each Fund’s advisory fees were consistent with the range of advisory fees paid by other peer funds. The Board concluded for each Fund that the advisory fees appeared reasonable in light of the services rendered. In addition, the Board considered for each Fund whether economies of scale were realized during the current contract period, but concluded that no significant economies of scale had yet been achieved.

Conclusion

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 the terms of each Sub-Advisory Agreement are fair and reasonable; (ii) concluded that each Sub-Advisor’s fees are reasonable in light of the services that it provides to its respective Fund; and (iii) agreed to renew each Sub-Advisory Agreement for another year.

Initial Approval of the Advisory and Sub-Advisory Agreements for AdvisorShares Athena International Bear ETF and AdvisorShares EquityPro ETF

At meetings of the Board held on July 1, 2013 and November 13, 2013 (together, the “Meetings”), the Board considered the approval of the investment advisory agreement (the “Advisory Agreement”)

161

Board Review of Investment Advisory and Sub-Advisory Agreements - (Continued)
 

between the Trust and AdvisorShares Investments, LLC (the “Advisor”), for an initial term of two years, on behalf of the AdvisorShares Athena International Bear ETF and AdvisorShares EquityPro ETF (formerly Global Alpha & Beta ETF) (each, a “Fund,” and collectively, the “Funds”). The Board also considered the approval of separate sub-advisory agreements (collectively, the “Sub-Advisory Agreements,” and together with the Advisory Agreement, the “New Agreements”) between the Advisor and (1) AthenaInvest Advisors LLC (“AthenaInvest”), on behalf of the AdvisorShares Athena International Bear ETF and (2) The Elements Financial Group LLC (together with AthenaInvest, the “Sub-Advisors,” and, collectively with AthenaInvest and the Advisor, the “Advisors”), on behalf of the AdvisorShares EquityPro ETF, pursuant to which the Sub-Advisors perform portfolio management and related services for the Funds, as applicable.

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. The Board also reviewed information comparing the proposed investment advisory fee rates with a group of comparable funds. The Board also received various other materials that it considered relevant to its consideration 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 Meetings, the Board, on behalf of the Trust and the Funds, 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 Funds, 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 Funds. Among the factors considered and the conclusions that the Trustees, in their business judgment, reached were principally the following: (i) their favorable evaluation of the investment performance of each Advisor; (ii) their favorable evaluation of the nature, extent and quality of the investment management services proposed to be provided by the Advisors to the Funds; (iii) their satisfaction that the investment advisory fee rates proposed for the Funds are consistent with applicable standards and are reasonable and fair; and (iv) their assessment that the Advisors’ projected profitability in connection with providing investment management services to the Funds would not be excessive.

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 Meetings are addressed in more detail below.

Nature, Quality, and Extent of Services

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 Funds. The Board also reviewed information set forth in each firm’s Form ADV, which provides information about the firm, its management, and its

162

Board Review of Investment Advisory and Sub-Advisory Agreements - (Continued)
 

business activities and affiliations. In addition, 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 as applicable to the Funds. The Board considered the professional experience and qualifications of each Sub-Advisor’s senior management and key professional personnel, including those individuals responsible for portfolio management. The Board also considered each Sub-Advisor’s 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 Funds and to provide services that are of high quality, and that each firm has appropriate resources to provide such services.

Performance

In connection with the assessment of the ability of each Sub-Advisor to perform its duties under its Sub-Advisory Agreement, the Board considered the sufficiency of each Sub-Advisor’s resources. The Board concluded that each Sub-Advisor had the financial resources necessary to perform its obligations under its Sub-Advisory Agreement. The Board heard an overview of each Sub-Advisor’s investment philosophy, the proposed portfolio construction of each Fund, and the specific investment techniques to be employed. The Board also reviewed the overall investment performance of each Sub-Advisor.

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 the Advisor regarding advisory fees of comparable funds 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 arrangements to waive a portion of its advisory fee and/or reimburse expenses in an effort to control the expense ratios of the Funds. Based on the foregoing considerations, the Board determined that it was satisfied that the investment advisory fee rate proposed for each of the Funds was consistent with applicable standards and was reasonable and fair.

Economies of Scale

The Board concluded that economies of scale would not likely be realized during the initial term of the New Agreements and determined that it would reconsider this factor at an appropriate time in the future. In the event there were to be significant asset growth in any Funds, the Board determined to reassess whether the investment advisory and sub-advisory fees paid to the Advisor and the Sub-Advisors appropriately took into account any economies of scale that had been realized as a result of that growth.

Conclusion

Based on its deliberations and 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 the Advisor’s fee is fair and reasonable in light of the services that it will provide to the Funds; (iii) concluded that the fees for each Sub-Advisor are each fair and reasonable in light of the services that each Sub-Advisor will provide to its respective Fund; and (iv) agreed to approve the New Agreements for initial terms of two years.

163

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.

164

ADVISORSHARES TRUST
 

  

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

Sub-Advisor
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, L.P.
2321 Rosecrans Avenue, Suite 3225
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

Newfleet Asset Management, LLC
100 Pearl Street
Hartford, Connecticut 06103

Partnervest Advisory Services, LLC
1216 State Street, 3^rd Floor
Santa Barbara, CA 93101

Pring Turner Capital Group
1600 South Main Street, Suite 375
Walnut Creek, CA 94596

Commerce Asset Management, LLC
6075 Poplar Avenue, Suite 700
Memphis, TN 38119

The Elements Financial Group, LLC
19200 Von Karman Avenue, Suite 800
Irvine, CA 92612

AthenaInvest, Inc.
5340 South Quebec Street, Suite 365-N
Greenwood Village, CO 80111

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.

Not Applicable for the semi-annual reporting period.

Item 3. Audit Committee Financial Expert.

Not Applicable for the semi-annual reporting period.

Item 4. Principal Accountant Fees and Services.

Not Applicable for the semi-annual reporting period.

Item 5. Audit Committee of Listed registrants.

Not Applicable for the semi-annual reporting period.

Item 6. Investments.

(a) Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period 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 and Affiliated Purchasers.

Not applicable.

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

Not applicable.

Item 11. Controls and Procedures.

(a) The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a)(1) Not applicable.

(a)(2) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.

(a)(3) Not applicable.

(b) Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes- Oxley Act of 2002 are attached hereto.

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 (Signature and Title)*	/s/ Noah Hamman
	Noah Hamman, Chief Executive Officer
	(principal executive officer)

Date 02/26/14

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.

By (Signature and Title)*	/s/ Noah Hamman
	Noah Hamman, Chief Executive Officer
	(principal executive officer)

Date 02/26/14

By (Signature and Title)*	/s/ Dan Ahrens
	Dan Ahrens, Treasurer
	(principal financial officer)

Date 02/26/14

^* Print the name and title of each signing officer under his or her signature.