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: June 30, 2014

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.

[GRAPHIC MISSING]

ADVISORSHARES TRUST

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

Annual Report

June 30, 2014


Letter from the CEO of AdvisorShares Investments, LLC			1
Hypothetical Growth of a $10,000 Investment, Historical Performances			4
Shareholder Expense Examples			52
Schedules of Investments
AdvisorShares Accuvest Global Long Short ETF (AGLS)			55
AdvisorShares Accuvest Global Opportunities ETF (ACCU)			57
AdvisorShares Athena International Bear ETF (HDGI)			58
AdvisorShares Cambria Global Tactical ETF (GTAA)			62
AdvisorShares EquityPro ETF (EPRO) (formerly known as, AdvisorShares Global Alpha & Beta ETF)			65
AdvisorShares Gartman Gold/British Pound ETF (GGBP)			67
AdvisorShares Gartman Gold/Euro ETF (GEUR)			68
AdvisorShares Gartman Gold/Yen ETF (GYEN)			69
AdvisorShares Global Echo ETF (GIVE)			70
AdvisorShares International Gold ETF (GLDE)			77
AdvisorShares Madrona Domestic ETF (FWDD)			78
AdvisorShares Madrona Global Bond ETF (FWDB)			98
AdvisorShares Madrona International ETF (FWDI)			100
AdvisorShares Meidell Tactical Advantage ETF (MATH)			113
AdvisorShares Newfleet Multi-Sector Income ETF (MINC)			115
AdvisorShares Peritus High Yield ETF (HYLD)			135
AdvisorShares Pring Turner Business Cycle ETF (DBIZ)			142
AdvisorShares QAM Equity Hedge ETF (QEH)			146
AdvisorShares Ranger Equity Bear ETF (HDGE)			150
AdvisorShares Sage Core Reserves ETF (HOLD)			155
AdvisorShares STAR Global Buy-Write ETF (VEGA)			164
AdvisorShares TrimTabs Float Shrink ETF (TTFS)			169
AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF (AADR)			176
AdvisorShares YieldPro ETF (YPRO)			179
Statements of Assets and Liabilities			184
Statements of Operations			188
Statements of Changes in Net Assets			192
Statements of Cash Flows			199
Financial Highlights			200
Notes to Financial Statements			212
Report of Independent Registered Public Accounting Firm			240
Board of Trustees and Officers (Unaudited)			241
Board Review of Investment Advisory and Sub-Advisory Agreements			243
Supplemental Information			248

TABLE OF CONTENTS

ADVISORSHARES TRUST
Letter from the CEO of AdvisorShares Investments, LLC

June 30, 2014

Thank you for being a shareholder of AdvisorShares ETFs. Our continued goal is to offer investors access to what we believe are talented portfolio managers who manage compelling investment strategies wrapped in an innovative format that provides transparency, intra-day liquidity, and an efficient operating structure. We are pleased to offer you our 2014 annual report.

As you can see from exhibit 1 below, we had a very successful year, more than doubling our assets with almost $2 Billion under management as of June 30, 2014. This is a testament to the faith you, our shareholders have placed in us, plus the growing acceptance of the benefits active ETFs offer investors, along with the largely positive alpha-producing results our portfolio managers were able to achieve, and the hard work of each and every AdvisorShares employee.

[GRAPHIC MISSING]

Exhibit 1
As of June 30, 2014 I Source: AdvisorShares

AdvisorShares also offers investors the largest number of actively managed ETFs in the market, with 24 ETFs trading today on both the NYSE Arca and NASDAQ exchanges (see exhibit 2). We continue to see investors utilize the potential benefits that active ETFs provide as a part of their overall asset allocation. We actively seek out investment managers who offer interesting active strategies so that we can provide you with a wide variety of ETFs to choose from, to help you meet and exceed your investment goals.

TABLE OF CONTENTS

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

June 30, 2014

[GRAPHIC MISSING]

Exhibit 2
As of June 30, 2014 I Source: AdvisorShares

During this past year, we launched the following innovative actively managed ETFs:

•

HOLD — AdvisorShares Sage Core Reserves ETF (Core Ultra Low Duration Income Strategy)

•

GYEN, GGBP, GEUR & GLDE ETFs — (Alternative Currency Hedged Commodity Strategies)

GYEN — AdvisorShares Gartman Gold/Yen ETF

GGBP — AdvisorShares Gartman Gold/British Pound ETF

GEUR — AdvisorShares Gartman Gold/Euro ETF

GLDE — AdvisorShares International Gold ETF

•

HDGI — AdvisorShares Athena International Bear ETF (Alternative Short International Equity Strategy)

•

YPRO — AdvisorShares YieldPro ETF (Core Alternative Income Strategy)

We look forward to continuing to offer you new innovative managers and strategies in the market place in the coming year, and will maintain our transparency to you through our regular communications, so you will know what our managers are doing and why with the assets you have entrusted to them. We appreciate the continued trust and confidence that you, our shareholders, have given to us.

Best Regards,

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

TABLE OF CONTENTS

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

June 30, 2014

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 June 30, 2014 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.

TABLE OF CONTENTS

ADVISORSHARES TRUST
AdvisorShares Accuvest Global Long Short ETF (AGLS)

The one year ending June 30, 2014 was characterized by generally positive performance for world equities. The AdvisorShares Accuvest Global Long Short ETF (NYSE Arca: AGLS) was down 5.73% on a Market Price basis and down 5.08% on an NAV basis while the MSCI World Index was up 24.05%. The three largest country allocations in the ACWI index, the United States at 49%, the United Kingdom at 8%, and Japan at 7%, returned 25%, 26.8%, and 10.1%, during the last year respectively. The average country return in the ACWI index was 21.5% during the reporting period, while the average country return for AGLS’ investible universe was 19.3%. The top performing countries for the year include Spain, Greece, Italy, South Africa, Norway, and India. While countries that struggled over the last 12 month include Thailand, Chile, Mexico, Indonesia, Turkey, Russia, and Malaysia.

Performance for the AdvisorShares Accuvest Global Long Short ETF (NYSE Arca: AGLS) was below that of the ACWI benchmark. Underperformance was primarily driven by a tendency for strong performance in countries with high risk profiles, countries with relatively weak growth fundamentals, and countries with above average valuations. A portfolio of countries with great fundamentals, low risk, and attractive valuations underperformed the market dramatically. Specifically, periodic long allocations to Russia, China, and Malaysia and short allocations to Italy, Spain and South Africa negatively impacted ACCU performance over the last 12 months. Conversely, periodic long allocations to Germany and the Netherlands, as well as, short allocations to Austria, Brazil, Mexico, and Chile positively benefited performance. The Fund had a significant underweight to the US (despite consistently high rankings) because the Fund’s maximum portfolio weight to any single country is 25%, while the ACWI benchmark carries a 49% weight to the US. AGLS will always be structurally underweight the US equities and structurally overweight international equities.

A long position is the purchase of an investment with the expectation that it will rise in value.

A short position is the sale of a borrowed investment with the expectation that it will decline in value.

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period July 9, 2010* to June 30, 2014

[GRAPHIC MISSING]

TABLE OF CONTENTS

HISTORICAL PERFORMANCE
Total Return as of June 30, 2014


	1 Month			3 Month			Year to Date			1 Year			3 Year			Since Inception 7/9/2010
AdvisorShares Accuvest Global Long Short ETF NAV		-0.24	%		-0.53	%		-6.71	%		-5.08	%		0.27	%		-4.25	%
AdvisorShares Accuvest Global Long Short ETF Market Price**		-0.29	%		-0.48	%		-6.67	%		-5.73	%		0.27	%		-4.25	%
MSCI World Index (Net)		1.79	%		4.86	%		6.18	%		24.05	%		11.81	%		15.11	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 4.57% and the net expense ratio is 4.28%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

Commencement of operations.

The price used to calculate market return (“Market Price”) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00 pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund.

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

TABLE OF CONTENTS

ADVISORSHARES TRUST
AdvisorShares Accuvest Global Opportunities ETF (ACCU)

The one year ending June 30, 2014 was characterized by generally positive performance for world equities. The AdvisorShares Accuvest Global Opportunities ETF (NYSE Arca: ACCU) was up 4.83% on a Market Price Basis and 4.89% on an NAV basis while the MSCI All Country World Index (ACWI) was up 22.95%. The three largest country allocations in the ACWI Index, the United States at 49%, the United Kingdom at 8%, and Japan at 7%, returned 25.0%, 26.8%, and 10.1%, during the last year respectively. The average country return in the ACWI index was 21.5% during the reporting period, while the average country return for ACCU’s investible universe was 19.3%. The top performing countries for the year include Spain, Greece, Italy, South Africa, Norway, and India. While countries that struggled over the last 12 month include Thailand, Chile, Mexico, Indonesia, Turkey, Russia, and Malaysia.

Performance for the AdvisorShares Accuvest Global Opportunities ETF (NYSE Arca: ACCU) was below that of the ACWI benchmark. Underperformance was primarily driven by a tendency for strong performance in countries with high risk profiles, countries with relatively weak growth fundamentals, and countries with above average valuations. A portfolio of countries with great fundamentals, low risk, and attractive valuations underperformed the market dramatically. Specifically, periodic overweight allocations to Russia, China, and Malaysia and underweight allocations to the United States, Italy, Spain and South Africa negatively impacted ACCU performance over the last 12 months. Conversely, periodic overweight allocations to Germany and the Netherlands, as well as, underweight allocations to Austria, Brazil, Mexico, and Chile positively benefited performance. The Fund had a significant underweight to the US (despite consistently high rankings) because the Fund’s maximum portfolio weight to any single country is 25%, while the ACWI benchmark carries a 49% weight to the US.ACCU will always be structurally underweight the US equities and structurally overweight international equities.

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period January 25, 2012* to June 30, 2014

[GRAPHIC MISSING]

TABLE OF CONTENTS

HISTORICAL PERFORMANCE
Total Return as of June 30, 2014


	1 Month			3 Month			Year to Date			1 Year			Since Inception 1/25/2012
AdvisorShares Accuvest Global Opportunities ETF NAV		0.04	%		2.65	%		-3.68	%		4.89	%		4.78	%
AdvisorShares Accuvest Global Opportunities ETF Market Price**		0.00	%		2.46	%		-3.23	%		4.83	%		4.75	%
MSCI All Country World Index (Net)		1.88	%		5.04	%		6.18	%		22.95	%		15.94	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 2.10% and the net expense ratio is 1.81%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

Commencement of operations.

The MSCI All Country World Index ex USA is an unmanaged free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. One cannot invest directly in an index.

TABLE OF CONTENTS

ADVISORSHARES TRUST
AdvisorShares Athena International Bear ETF (HDGI)

Since its July 18, 2013 inception, the AdvisorShares Athena International Bear ETF (NYSE Arca: HDGI) has declined -18.48% on a Market Price basis and -18.40% on an NAV basis in the period ending June 30, 2014, compared with a gain of the MSCI ACWI of 16.07%. As a short-only investment vehicle HDGI seeks to outperform peers and relevant benchmarks on a relative basis during bull markets. During down markets and/or highly volatile market conditions characterized by fear and uncertainty, HDGI seeks to generate positive results and outperform peers and relevant benchmarks on both a relative and absolute basis.

Since its inception, HDGI has experienced strong bull markets around the world. Central banks have remained accommodative, creating fertile ground for continued growth in equity values. The political environment has not been so favorable, with an arc of instability growing across Eurasia and the Middle East. Some commentators are comparing this time period to that of 1970’s which wars and an oil embargo emerge in this part of the world. But in spite of this increased turmoil, international equity markets have continued to march upwards.

The latter half of 2013 was characterized by a strong small company effect while the first part of 2014 witnessed a large company effect. Market capitalization portfolio weighting works best with a small firm effect, so since we are now witnessing just opposite, HDGI has moved to equal weighting.

Shorting costs for the stocks meeting our screens have increased in recent months. In fact, increased shorting costs for stocks currently held is now the primary reason for a buy to cover decision. In spite of this, we have been able to keep cost below 3% for each individual stock, with over 75% shorted at the lowest general borrowing cost of 50 basis points (0.50%).

A short position is the sale of a borrowed investment with the expectation that it will decline in value.

A Bull Market is a financial market of a group of securities in which prices are rising or are expected to rise. The term “bull market” is most often used to refer to the stock market, but can be applied to anything that is traded, such as bonds, currencies and commodities.

Shorting cost is the expense paid the short seller to maintain a short position.

A Buy To Cover is a buy order made on a stock or other listed security that closes out an existing short position.

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period July 18, 2013* to June 30, 2014

[GRAPHIC MISSING]

TABLE OF CONTENTS

HISTORICAL PERFORMANCE
Total Return as of June 30, 2014


	1 Month			3 Month			Year to Date			Since Inception 7/18/2013
AdvisorShares Athena International Bear ETF NAV		-2.25	%		-7.48	%		-9.61	%		-18.40	%
AdvisorShares Athena International Bear ETF Market Price**		-2.53	%		-7.62	%		-9.50	%		-18.48	%
MSCI All Country World Index ex USA		1.68	%		5.03	%		5.56	%		16.07	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 2.11% and the net expense ratio is 2.00%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

Commencement of operations.

TABLE OF CONTENTS

ADVISORSHARES TRUST
AdvisorShares Cambria Global Tactical ETF (GTAA)

The AdvisorShares Cambria Global Tactical ETF (NYSE Arca: GTAA) returned a 9.96% on a Market Price basis and 10.13% on an NAV basis from July 1, 2013 through June 30, 2014 as compared to 24.61% for the S&P 500.

Although GTAA underperformed the S&P 500 its return in the first half of calendar year 2014 was far better than the result from the second half of calendar year 2013. Of 2013 large cap domestic indexes were the best performers by a wide margin and so a multi asset fund is unlikely to keep up in that environment.

Turning the page to 2014 and performance dispersion among the various asset classes has narrowed creating a more favorable environment for the fund. Years like 2013 are more the exception than the rule and we look forward to a more favorable environment for GTAA going forward and believe that GTAA can provide its benefit in declining markets by assuming a defensive posture and utilizing cash as an alternative to its holdings.

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period October 26, 2010* to June 30, 2014

[GRAPHIC MISSING]

TABLE OF CONTENTS

HISTORICAL PERFORMANCE
Total Return as of June 30, 2014


	1 Month			3 Month			Year to Date			1 Year			3 Year			Since Inception 10/26/2010
AdvisorShares Cambria Global Tactical ETF NAV		1.16	%		2.83	%		5.22	%		10.13	%		1.39	%		2.26	%
AdvisorShares Cambria Global Tactical ETF Market Price**		1.00	%		2.95	%		5.19	%		9.96	%		1.33	%		2.22	%
S&P 500 Index		2.07	%		5.23	%		7.14	%		24.61	%		16.58	%		17.13	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) and net expense ratio is 1.59%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

Commencement of operations.

The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks. One can not invest directly in an index.

TABLE OF CONTENTS

ADVISORSHARES TRUST
AdvisorShares EquityPro ETF (EPRO)

The AdvisorShares EquityPro ETF (NYSE Arca: EPRO) returned 8.17% on a Market Price basis, and 7.28% on an NAV basis since the portfolio manager change on December 1, 2013 through June 30, 2014 compared to 8.51% for the S&P 500 Index. EPRO’s non-U.S. equity exposure served as the largest detractor in against the benchmark as U.S. markets outperformed. Given EPRO’s global posture, a comparison to the MSCI World Index, which returned 8.42% December 1, 2013 through June 30, 2014, provides additional perspective. The fund’s sector selection was the greatest contributor to relative portfolio performance against the MSCI World Index, as the fund’s overweight to Utilities and Healthcare, as well as its underweight to Financials strongly contributed to performance. On the flip side, the fund’s overweight to Telecommunication Services and Materials detracted from relative performance.

Since the portfolio manager change on December 1, 2013, we have witnessed an environment which was beneficial to stocks and bonds alike. The S&P 500 Index hit historically low levels of volatility as of 06/30/14, exhibiting an annual standard deviation of daily returns of approximately 10%, which compares to a historical average of over 16%. The last time equity markets exhibited this type of calm was the 2006/2007 period leading into the last financial crisis. The signs of complacency that usually serve as a precursor to market corrections (narrow credit spreads, low equity volatility, excessive risk taking, higher leverage, irresponsible lending) are sounding alarm bells.

Although we recognize the risks that exist in securities markets today, EPRO remains 98% invested in global equities through our strategic allocation which is, by default, defensively positioned among sectors. No sectors are tactically underweight to the strategic allocation currently. Given the structured nature of our investment process, we observe that the S&P 500 Index continues to trade above its 200-day moving average by approximately 7%, and no part of the U.S. Treasury yield curve is inverted, so we remain fully exposed to equities going into the second half of 2014. Nonetheless, our process is structured with the flexibility to reduce risk in severe down markets if one of the two aforementioned criteria is triggered.

The MSCI World Index is an unmanaged free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets.

Standard Deviation is a measure of the dispersion of a set of data from its mean. The more spread apart the data, the higher the deviation. Standard deviation is calculated as the square root of variance.

Credit Spread is the spread between Treasury securities and non-Treasury securities that are identical in all respects except for quality rating.

The 200-day moving average is an indicator used by traders to determine a stock’s closing average over a period of 200 consecutive days. Most traders use this technical indicator to determine trends in the market.

A Yield Curve is a line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity dates. The most frequently reported yield curve compares the three-month, two-year, five-year and 30-year U.S. Treasury debt. This yield curve is used as a benchmark for other debt in the market, such as mortgage rates or bank lending rates. The curve is also used to predict changes in economic output and growth.

TABLE OF CONTENTS

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period July 10, 2012* to June 30, 2014

[GRAPHIC MISSING]

HISTORICAL PERFORMANCE
Total Return as of June 30, 2014


	1 Month			3 Month			Year to Date			1 Year			Since Inception 7/10/2012
AdvisorShares EquityPro ETF NAV		1.78	%		5.04	%		6.40	%		19.71	%		14.53	%
AdvisorShares EquityPro ETF Market Price**		1.65	%		5.04	%		7.55	%		19.76	%		14.53	%
S&P 500 Index		2.07	%		5.23	%		7.14	%		24.61	%		23.85	%
MSCI World Index (Net)		1.79	%		4.86	%		6.18	%		24.05	%		22.44	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 6.98% and the net expense ratio is 1.48%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

Commencement of operations.

The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks. One can not invest directly in an index.

TABLE OF CONTENTS

ADVISORSHARES TRUST
AdvisorShares Gartman Gold/British Pound ETF (GGBP)

Inception for the AdvisorShares Gartman Gold/British Pound ETF (NYSE Arca: GGBP) was 2/11/14. The fund provides investors exposure to the gold bullion market, priced in British pound terms. Since inception the fund has declined -1.48% on a Market Price basis and -1.88% on a NAV basis. Over the same period the benchmark for the fund, the Spot price of Gold has returned 2.22%.

Having suffered steep declines for much of 2013 the gold price in dollar terms has risen modestly since the inception date of the fund. This has been driven by a number of factors. US inflation-adjusted interest rates have continued to trend lower which has been supportive for gold prices and the large investor driven outflows from the gold market seen in the latter half of 2013 have reversed. While investor flows into Exchange Traded Products (ETPs) have fluctuated between positive and negative, flows into gold linked futures were very strong, totaling approximately 360 metric tonnes. However with the UK experiencing strong Gross Domestic Product (GDP) growth (in contrast to the Euro area) the pound has been very strong on currency markets, particularly versus the dollar. Since inception to the end of June 2014, the pound has strengthened by over 4% versus the dollar which has detracted from fund performance and led to the fund’s underperformance relative to its benchmark. Looking forward with US real interest rates still at very low levels and monetary policy in the US and UK both poised to become tighter on a similar trajectory we would expect the price of gold in British pound terms to remain supported at current levels.

A Gold Future is an agreement to buy and sell quantities of gold on a particular date in the future at a fixed price.

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period February 11, 2014* to June 30, 2014

[GRAPHIC MISSING]

TABLE OF CONTENTS

HISTORICAL PERFORMANCE
Total Return as of June 30, 2014


	1 Month			3 Month			Since Inception 2/11/2014
AdvisorShares Gartman Gold/British Pound ETF NAV		4.06	%		0.16	%		-1.88	%
AdvisorShares Gartman Gold/British Pound ETF Market Price**		4.30	%		-0.32	%		-1.48	%
Spot Gold – London Bullion Market Association		5.16	%		1.80	%		2.22	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 0.70% and the net expense ratio is 0.65%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

Commencement of operations.

The spot price of Gold is valued on the basis of each day's 3 pm London time announced price for an ounce of gold set by five market members of the London Bullion Market Association. One cannot invest directly in an index.

TABLE OF CONTENTS

ADVISORSHARES TRUST
AdvisorShares Gartman Gold/Euro ETF (GEUR)

Inception for the AdvisorShares Gartman Gold/Euro ETF (NYSE Arca: GEUR) was 2/11/14. The fund provides investors exposure to the gold bullion market, priced in euro terms. Since inception the fund has returned 2.11% on a Market Price basis and 1.72% on an NAV basis. Over the same period the benchmark for the fund, the Spot price of Gold has returned 2.22%.

Also of note the European Union, facing joint challenges from very weak Gross Domestic Product (GDP) growth and slowing inflation prompted the European Central Bank (ECB) to cut interest rates in June 2014 and announce a number of new measures to combat the economic malaise. These have weighed on the value of the euro versus the dollar reversing much of the strength seen in the euro since the start of the year and has added measurably to positive fund performance. The ECB has also became increasingly vocal about it concerns over the negative impact a strong euro is having on economic growth and this would be expected to further weigh on the value of the euro in currency markets over the next year. Looking forward, with US real interest rates still at very low levels and monetary policy in the US becoming tighter relative to monetary policy in the European Union, we would expect the price of gold in euro terms to remain supported at current levels.

A Gold Future is an agreement to buy and sell quantities of gold on a particular date in the future at a fixed price.

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period February 11, 2014* to June 30, 2014

[GRAPHIC MISSING]

TABLE OF CONTENTS

HISTORICAL PERFORMANCE
Total Return as of June 30, 2014


	1 Month			3 Month			Since Inception 2/11/2014
AdvisorShares Gartman Gold/Euro ETF NAV		5.60	%		3.42	%		1.72	%
AdvisorShares Gartman Gold/Euro ETF Market Price**		9.56	%		3.89	%		2.11	%
Spot Gold – London Bullion Market Association		5.16	%		1.80	%		2.22	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 0.70% and the net expense ratio is 0.65%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

Commencement of operations.

TABLE OF CONTENTS

ADVISORSHARES TRUST
AdvisorShares Gartman Gold/Yen ETF (GYEN)

Inception for the AdvisorShares Gartman Gold/Yen ETF (NYSE Arca: GYEN) was 2/11/14. The fund provides investors exposure to the gold bullion market, priced in Japanese yen terms. Since inception the fund has returned 1.88% on a Market Price basis and 1.09% on an NAV basis. Over the same period the benchmark for the fund, the Spot price of Gold has returned 2.22%.

In April 2013, in response to continued deflation in the Japanese economy, the Bank of Japan announced a substantial increase in its asset purchase program. While this initially led to a significantly weaker yen versus the dollar, since the start of 2014 the yen has reversed and strengthened marginally versus the dollar perhaps an inevitable pause in the dramatic weakness seen in the prior two years. Looking forward with US real interest rates still at very low levels and monetary policy in the US becoming tighter relative to monetary policy in Japan, we would expect the price of gold in yen terms to remain supported at current levels.

A Gold Future is an agreement to buy and sell quantities of gold on a particular date in the future at a fixed price.

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period February 11, 2014* to June 30, 2014

[GRAPHIC MISSING]

TABLE OF CONTENTS

HISTORICAL PERFORMANCE
Total Return as of June 30, 2014


	1 Month			3 Month			Since Inception 2/11/2014
AdvisorShares Gartman Gold/Yen ETF NAV		5.72	%		0.86	%		1.09	%
AdvisorShares Gartman Gold/Yen ETF Market Price**		5.84	%		1.80	%		1.88	%
Spot Gold – London Bullion Market Association		5.16	%		1.80	%		2.22	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 0.70% and the net expense ratio is 0.65%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

Commencement of operations.

TABLE OF CONTENTS

ADVISORSHARES TRUST
AdvisorShares Global Echo ETF (GIVE)

The AdvisorShares Global Echo ETF (NYSE Arca: GIVE) returned 12.75% on a Market Price basis and 13.03% on an NAV basis from July 1, 2013 through June 30, 2014 compared to 24.05% for the MSCI World Index and 4.37% for the Barclays Capital U.S. Aggregate Bond Index.

GIVE is a multi-asset class fund that applies an active tactical overlay that can invest in inverse and bear market ETFs to potentially profit from market downturns, thus dampening overall portfolio volatility all while investing only sustainable investment themes.

GIVE is also a multi-manager fund with each of the four managers having roughly equal 25% allocations. First Affirmative has the dual role of managing the long/short portion of the fund as well as serving as the allocation manager. In the past year there were no allocation changes implemented.

A Bear Market is a market condition in which the prices of securities are falling, and widespread pessimism causes the negative sentiment to be self-sustaining. As investors anticipate losses in a bear market and selling continues, pessimism only grows. Although figures can vary, for many, a downturn of 20% or more in multiple broad market indexes, such as the Dow Jones Industrial Average (DJIA) or Standard & Poor’s 500 Index (S&P 500), over at least a two-month period, is considered an entry into a bear market.

A long position is the purchase of an investment with the expectation that it will rise in value.

A short position is the sale of a borrowed investment with the expectation that it will decline in value.

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period May 23, 2012* to June 30, 2014

[GRAPHIC MISSING]

TABLE OF CONTENTS

HISTORICAL PERFORMANCE
Total Return as of June 30, 2014


	1 Month			3 Month			Year to Date			1 Year			Since Inception 5/23/2012
AdvisorShares Global Echo ETF NAV		1.98	%		1.42	%		1.46	%		13.03	%		10.55	%
AdvisorShares Global Echo ETF Market Price**		1.91	%		1.10	%		1.42	%		12.75	%		10.56	%
MSCI World Index (Net)		1.79	%		4.86	%		6.18	%		24.05	%		22.57	%
Barclays Capital U.S. Aggregate Bond Index		0.05	%		2.04	%		3.93	%		4.37	%		1.96	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) and net expense ratio is 1.61%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

Commencement of operations.

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

TABLE OF CONTENTS

ADVISORSHARES TRUST
AdvisorShares International Gold ETF (GLDE)

Inception for the AdvisorShares International Gold ETF (NYSE Arca: GLDE) was 2/11/14. The fund seeks to provide investors exposure to the gold bullion market, priced in a combination of currencies including the US dollar, euro, Japanese yen and British pound. The fund maintains positions in the affiliated AdvisorShares Gartman ETFs which are AdvisorShares Gartman Gold/Euro ETF (NYSE Arca: GEUR), AdvisorShares Gartman Gold/Yen ETF (NYSE Arca: GYEN) and AdvisorShares Gartman Gold/British Pound ETF (NYSE Arca: GGBP) as well a number of the other gold backed Exchange Traded Products (ETPs). Since inception the fund has declined -0.16% on a Market Price basis and gained 0.63% on an NAV basis and. Over the same period the benchmark for the fund, the Spot price of Gold has returned 2.22%.

Over the period the fund has held stable and approximately equal weightings to gold priced in each of the four currencies. While weakness in the euro versus the dollar prompted by the European Central Bank (ECB) rate cut has benefited fund performance, strength in both the yen and pound versus the dollar have more than offset this benefit and have been the primary factor behind the fund’s underperformance relative to its benchmark. A striking feature of the recent period has been the very low levels of volatility in both the gold and currency markets and as such the fund has not engaged in any hedging activity to control volatility. Looking forward with US real interest rates still at very low levels and monetary policy in the US becoming tighter relative to monetary policy in the European Union and Japan and apparently on a similar trajectory to UK monetary policy, we would expect the price of gold expressed as an equal combination of dollars, euro, yen and pounds to remain supported at current levels.

A Gold Future is an agreement to buy and sell quantities of gold on a particular date in the future at a fixed price.

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period February 11, 2014* to June 30, 2014

[GRAPHIC MISSING]

TABLE OF CONTENTS

HISTORICAL PERFORMANCE
Total Return as of June 30, 2014


	1 Month			3 Month			Since Inception 2/11/2014
AdvisorShares International Gold ETF NAV		5.23	%		1.50	%		0.63	%
AdvisorShares International Gold ETF Market Price**		7.04	%		1.91	%		-0.16	%
Spot Gold – London Bullion Market Association		5.16	%		1.80	%		2.22	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) and net expense ratio is 1.52%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

Commencement of operations.

TABLE OF CONTENTS

ADVISORSHARES TRUST
AdvisorShares Madrona Domestic ETF (FWDD)

The AdvisorShares Madrona Domestic Equity ETF (NYSE Arca: FWDD) gained 27.93% on both a Market Price Basis and NAV basis for the year ending June 30, 2014 compared to a gain of 24.61% for the S&P 500 Index.

U.S. Equities valuations have reverted to long-term historical averages during 2014 due to a combination of increasing prices and decreasing growth projections. As we move forward we believe that qualitative investing will be necessary to take advantage of opportunities in the market. We feel FWDD by nature is positioned to take advantage of opportunities in undervalued securities, while maintaining a material allocation to each sector and a broadly balanced diversified portfolio overall. Because price to earnings ratios do not paint the whole picture to evaluate a stock, the strategy incorporates the forward-looking long-term growth of earnings to rank each security within the basket. Additionally, companies with no or negative growth of earnings are eliminated from the portfolio.

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period June 21, 2011* to June 30, 2014

[GRAPHIC MISSING]

TABLE OF CONTENTS

HISTORICAL PERFORMANCE
Total Return as of June 30, 2014


	1 Month			3 Month			Year to Date			1 Year			3 Year			Since Inception 6/21/2011
AdvisorShares Madrona Domestic ETF NAV		2.82	%		5.23	%		7.61	%		27.93	%		16.93	%		18.39	%
AdvisorShares Madrona Domestic ETF Market Price**		2.84	%		5.44	%		7.67	%		27.93	%		16.93	%		18.39	%
S&P 500 Index		2.07	%		5.23	%		7.14	%		24.61	%		16.58	%		17.70	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 1.61% and the net expense ratio is 1.25%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

Commencement of operations.

The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks. One can not invest directly in an index.

TABLE OF CONTENTS

ADVISORSHARES TRUST
AdvisorShares Madrona Global Bond ETF (FWDB)

The AdvisorShares Madrona Global Bond ETF (NYSE Arca: FWDB) gained 9.44% on a Market Price basis and 8.80% on an NAV basis for the year ending June 30, 2014 compared to a gain of 4.37% for the Barclays Capital U.S. Aggregate Bond Index.

It is our belief that inflation is not directly correlated to the interest rate investors are willing to pay for Government bonds. Inflation generally occurs when there is a shortage of cash type investments available, demand is outpacing supply, and companies are at or near capacity. None of these factors currently contribute to an inflationary environment. Many Advisors and broad based bond funds have shied away from any bonds other than short or ultra-short duration bonds. We believe there is opportunity for yield while not going too far out on the bond maturity timeline.

In addition, the Federal Reserve may decide to taper back the purchase of the type of bonds that are most prevalent in most bond indexes. When the artificial demand for these bonds is removed, there could be a selling environment. It is our belief that any such sell-off by bond holders will require that investors find other investment alternatives. Assuming bond investors won’t stay idle, or flock to equities, we believe an opportunity exists. That opportunity is the transfer of investments from Government bonds to other bond categories such as corporates, high-yields, bank notes, emerging markets, preferred bonds, etc. FWDB is well represented with these alternative categories of bonds.

Duration is a measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. Duration is expressed as a number of years. Rising interest rates mean falling bond prices, while declining interest rates mean rising bond prices.

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period June 21, 2011* to June 30, 2014

[GRAPHIC MISSING]

TABLE OF CONTENTS

HISTORICAL PERFORMANCE
Total Return as of June 30, 2014


	1 Month			3 Month			Year to Date			1 Year			3 Year			Since Inception 6/21/2011
AdvisorShares Madrona Global Bond ETF NAV		0.64	%		3.18	%		6.45	%		8.80	%		4.81	%		4.77	%
AdvisorShares Madrona Global Bond ETF Market Price**		0.68	%		3.22	%		6.77	%		9.44	%		4.86	%		4.84	%
Barclays Capital U.S. Aggregate Bond Index		0.05	%		2.04	%		3.93	%		4.37	%		3.66	%		3.45	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 1.40% and the net expense ratio is 1.33%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

Commencement of operations.

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

TABLE OF CONTENTS

ADVISORSHARES TRUST
AdvisorShares Madrona International ETF (FWDI)

The AdvisorShares Madrona International ETF (NYSE Arca: FWDI) gained 25.64% on a Market Price basis and 25.91% on an NAV basis for the year ending June 30, 2014 compared to a gain of 23.57% for the MSCI EAFE Index.

The recent rebound in Emerging Market securities has contributed to the portfolio’s outperformance of the MSCI EAFE Index during the last year. Our research continues to point to attractive valuations in Emerging Market positions against their Developed Market counterparts and we believe this trend will continue. We believe FWDI by nature is positioned to take advantage of opportunities across the International equity space, while maintaining a broad mix of holdings across both developed and emerging markets.

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period June 21, 2011* to June 30, 2014

[GRAPHIC MISSING]

TABLE OF CONTENTS

HISTORICAL PERFORMANCE
Total Return as of June 30, 2014


	1 Month			3 Month			Year to Date			1 Year			3 Year			Since Inception 6/21/2011
AdvisorShares Madrona International ETF NAV		1.82	%		3.06	%		4.33	%		25.91	%		5.48	%		7.04	%
AdvisorShares Madrona International ETF Market Price**		1.37	%		2.67	%		4.19	%		25.64	%		5.36	%		6.92	%
MSCI EAFE Index (Net)		0.96	%		4.09	%		4.78	%		23.57	%		8.10	%		9.52	%
BNY Mellon Classic ADR Index TR		1.41	%		4.49	%		4.45	%		22.47	%		6.25	%		7.69	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 1.65% and the net expense ratio is 1.25%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

Commencement of operations.

The MSCI EAFE Index is an unmanaged free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada. One cannot invest directly in an index.

TABLE OF CONTENTS

ADVISORSHARES TRUST
AdvisorShares Meidell Tactical Advantage ETF (MATH)

The AdvisorShares Meidell Tactical Advantage ETF (NYSE Arca: MATH) gained 5.75% on a Market Price basis and 5.89% on an NAV basis for the year ending June 30, 2014 while the S&P 500 Index gained 24.61% over the same period. This has been a unique time for the stock market as a whole with solid market gains over the past 12 months punctuated by relatively shallow pullbacks along the way. Over the past two years the market experienced two pullbacks (June of 2013 and January of 2014) that were relatively short lived, but were sufficient enough to shift a portion or all the fund to a defensive posture just as the market was reaching its low. This caused the fund to miss out on a portion of the following gains, as the market rebounded off its low, until a new buy signal was given.

One explanation for the markets lower volatility over the past year is the addition of the Federal Reserve’s stimulus plan, or QE3 and the length of time that it’s been applied. Although the latest round of stimulus has gone on longer than the prior two, it’s expect to finish by October of this year assuming the economic recovery stays on track. While the fund’s defensive signals have been somewhat out of phase over the past year, we believe that as volatility returns to the stock market, the added value of the fund to an investor’s portfolio will be more evident.

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period June 23, 2011* to June 30, 2014

$[GRAPHIC MISSING]$

TABLE OF CONTENTS

HISTORICAL PERFORMANCE
Total Return as of June 30, 2014


	1 Month			3 Month			Year to Date			1 Year			3 Year			Since Inception 6/23/2011
AdvisorShares Meidell Tactical Advantage ETF NAV		1.94	%		2.56	%		0.20	%		5.89	%		6.53	%		6.56	%
AdvisorShares Meidell Tactical Advantage ETF Market Price**		1.39	%		1.87	%		0.10	%		5.75	%		6.51	%		6.56	%
S&P 500 Index		2.07	%		5.23	%		7.14	%		24.61	%		16.58	%		17.46	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 3.27% and the net expense ratio is 1.63%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

Commencement of operations.

The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks. One can not invest directly in an index.

TABLE OF CONTENTS

ADVISORSHARES TRUST
AdvisorShares Newfleet Multi-Sector Income ETF (MINC)

The AdvisorShares Newfleet Multi-Sector Income Fund (NYSE Arca: MINC) gained 4.70% on a Market Price Basis and 4.65% on an NAV basis during the fiscal year ending June 30, 2014 which compares to a gain of 4.37% for the Barclays Capital U.S. Aggregate Bond Index.

The outperformance of most fixed income spread sectors relative to U.S. Treasuries was the key driver of MINC’s performance during the fiscal year. The ten year U.S. Treasury remained relatively flat at a 2.53% yield on June 30, 2014 from 2.48% on June 28, 2013; although it peaked at 3.03% on December 31, 2013 in anticipation of stronger Gross Domestic Product growth and lower unemployment. Corporate high yield’s strong return was due to positive mutual fund flows, strong credit fundamentals, a historically low default rate and investors’ need for higher yield have all been positive contributors for the sector’s outperformance.

Over the fiscal year, we continued to invest cash from inflows and sale proceeds, primarily focusing on the addition of higher quality bank loans, corporate high yield bonds, and asset backed securities. We have continued to overweight spread sectors, seeking to take advantage of higher yields and wider spreads.

Spread sectors include all non-Treasury investment grade sectors including federal agency securities, corporate bonds, asset-backed securities, mortgage-backed securities and commercial mortgage-backed securities.

Yield is the income return on an investment. This refers to the interest or dividends received from a security and is usually expressed annually as a percentage based on the investment’s cost, its current market value or its face value.

Fundamentals are the qualitative and quantitative information that contributes to the economic well-being and the subsequent financial valuation of a company, security or currency. Analysts and investors analyze these fundamentals to develop an estimate as to whether the underlying asset is considered a worthwhile investment.

An Asset Backed Security is a financial security backed by a loan, lease or receivables against assets other than real estate and mortgage-backed securities. For investors, asset-backed securities are an alternative to investing in corporate debt.

Spread is the difference between the bid and the ask price of a security or asset.

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period March 19, 2013* to June 30, 2014

[GRAPHIC MISSING]

TABLE OF CONTENTS

HISTORICAL PERFORMANCE
Total Return as of June 30, 2014


	1 Month			3 Month			Year to Date			1 Year			Since Inception 3/19/2013
AdvisorShares Newfleet Multi-Sector Income ETF NAV		0.20	%		1.10	%		2.43	%		4.65	%		2.46	%
AdvisorShares Newfleet Multi-Sector Income ETF Market Price**		0.22	%		1.01	%		2.25	%		4.70	%		2.46	%
Barclays Capital U.S. Aggregate Bond Index		0.05	%		2.04	%		3.93	%		4.37	%		1.59	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 1.13% and the net expense ratio is 0.75%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

Commencement of operations.

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

TABLE OF CONTENTS

ADVISORSHARES TRUST
AdvisorShares Peritus High Yield ETF (HYLD)

The AdvisorShares Peritus High Yield ETF (NYSE Arca: HYLD) returned 15.20% on a Market Price basis and 14.04% on an NAV basis from July 1, 2013 through June 30, 2014 compared to 11.73% for the Barclays U.S. Corporate High Yield Index. The past year has been characterized by extremely low volatility in both equities and credit. The High Yield bond market saw steady run-up in prices, pushing the yield on Bank of America High yield index to an all-time low in late June of 4.85%. HYLD outpaced the index during this period due in large part to the relatively high average current yield on the portfolio as well as the growing allocation to select dividend equities.

In January of 2014, the consensus amongst most market participants was that interest rates would necessarily move higher as the Fed continued on its course to reduce bond purchases. From our January 2014 letter Of Elephants and Rates:

“Our take: demographics, liability driven investing (LDI) and a no growth global world will surprise everyone, taking Treasury yields nowhere or potentially lower in 2014 and confounding most investors, particularly those who poured record amounts of money into floating rate products.”

This line of thinking turned out to be right on the mark, with the yield on the 10 yr Treasury yield declining by nearly 50 basis points (0.50%) in the first half of 2014, helped by a very weak Q1 GDP result and continued strong demand for treasuries. So with interest rates declining, a relatively benign default outlook and continuing demand for yield product, the high yield market performed much better than expected. In this environment, HYLD continued to experience both higher returns and lower volatility (as measured by standard deviation) relative to the index due to our focus on credit selection. With active management, Peritus undertakes the fundamental work necessary to determine the credits’ viability and return prospects. We believe that this intensive research process, along with the potential yield advantage offered by HYLD, may position us well for the year ahead.

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period December 1, 2010* to June 30, 2014

[GRAPHIC MISSING]

TABLE OF CONTENTS

HISTORICAL PERFORMANCE
Total Return as of June 30, 2014


	1 Month			3 Month			Year to Date			1 Year			3 Year			Since Inception 12/1/2010
AdvisorShares Peritus High Yield ETF NAV		1.53	%		3.13	%		6.64	%		14.04	%		9.86	%		10.31	%
AdvisorShares Peritus High Yield ETF Market Price**		1.55	%		3.17	%		6.59	%		15.20	%		9.63	%		10.28	%
Barclays U.S. Corporate High Yield Index		0.84	%		2.41	%		5.46	%		11.73	%		9.48	%		9.91	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 1.23% and the net expense ratio is 1.25%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

Commencement of operations.

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

TABLE OF CONTENTS

ADVISORSHARES TRUST
AdvisorShares Pring Turner Business Cycle ETF (DBIZ)

The AdvisorShares Pring Turner Business Cycle ETF (NYSE Arca: DBIZ) finished 15.30% higher on a Market Price basis and was up 15.19% on an NAV basis for the year ending June 30, 2014. In comparison, the S&P 500 Index was up 24.61% and outperformed DBIZ since this benchmark is purely in stocks. On the other hand, DBIZ is a multi-asset, active allocation fund with holdings in bonds, stocks, commodity and cash and may exhibit less volatile than the S&P 500. Since inception, DBIZ’s portfolio volatility (Beta = 0.50) is about half the S&P 500’s (Beta = 1.0). The portfolio managers are very pleased to report that at fiscal year end the fund reached an all-time high in NAV of $29.00 per share.

DBIZ has a pro-active asset allocation and sector rotation strategy designed to adapt to the ever-changing economy and financial markets. During the course of a typical business cycle, the three main asset classes: bonds, stocks and commodities move through favorable and unfavorable periods. This results in six turning points or “Stages,” each of which offers a different environment for optimum asset allocation. DBIZ is designed as a core total return multi-asset fund for conservative investors.

As of June 2014 our proprietary business cycle stage work resides in “Stage 4.” This is an advanced stage of the cycle where typically inflation begins to accelerate and portfolio tactics gradually adjust to these changes. The “inflationary” part of the business cycle is historically unfavorable towards bonds, but favorable for stocks in the industrial, material, energy and metal sectors. Given this outlook the majority of the fund is invested in stocks and especially inflation sensitive securities, and a substantially smaller amount in bonds. The Energy, Technology, and especially Mining sectors are being emphasized at this time.

Volatility is a statistical measure of the dispersion of returns for a given security or market index. Volatility can either be measured by using the standard deviation or variance between returns from that same security or market index. Commonly, the higher the volatility, the riskier the security.

Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. Beta is used in the capital asset pricing model (CAPM), a model that calculates the expected return of an asset based on its beta and expected market returns.

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period December 18, 2012* to June 30, 2014

[GRAPHIC MISSING]

TABLE OF CONTENTS

HISTORICAL PERFORMANCE
Total Return as of June 30, 2014


	1 Month			3 Month			Year to Date			1 Year			Since Inception 12/18/2012
AdvisorShares Pring Turner Business Cycle ETF NAV		5.19	%		6.31	%		9.81	%		15.19	%		10.99	%
AdvisorShares Pring Turner Business Cycle ETF Market Price**		5.26	%		6.49	%		10.08	%		15.30	%		11.08	%
S&P 500 Index		2.07	%		5.23	%		7.14	%		24.61	%		24.52	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 4.82% and the net expense ratio is 1.61%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

Commencement of operations.

The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks. One cannot invest directly in an index.

TABLE OF CONTENTS

ADVISORSHARES TRUST
AdvisorShares QAM Equity Hedge ETF (QEH)

The AdvisorShares QAM Equity Hedge ETF (NYSE Arca: QEH) has returned 10.62% on a Market Price basis and 10.52% on an NAV basis for the one year period ending June 30^th, 2013. Performance in the fund was slightly behind our benchmark, the HFRI Equity Hedge (Total) Index which was up 12.60%, but was still within the range of expectations for the strategy.

The Fund utilizes a fundamental and quantitative investment process to estimate the aggregate net market exposures of a large universe of long/short equity hedge funds defined by the HFRI Equity Hedge (Total) Index. The Fund’s sub-advisor has fundamentally identified over 20 groups of long/short equity hedge fund managers within the Index and utilizes a factor based system to attempt to identify the net exposures for each group. The sub-advisor believes that by replicating the net exposures of each group, over time the Fund’s return will closely track that of the index.

In the year ended June 2014, the US equity markets continued to dominate the global picture. The moderately net exposed global portfolio for QEH partially participated in the gains while doing so with a lower beta to the S&P 500. As the markets rallied, our models indicated that the universe of long/short equity hedge fund managers were increasing their net market exposure through the first quarter of 2014 to a peak of approximately 70% before retreating to approximately 62% by the end of the second quarter. Within economic sectors, Financials remained the largest net allocation, however, these exposures decreased overall while Healthcare, Information Technology, and most recently, Energy gained. Large Cap stocks rose in net exposure during the period, although exposure began to decrease quickly during the latest quarter. Net exposure to North America remained the largest geographic exposure, while the remainder resided in developed, emerging, and frontier markets.

QEH is a diversified and moderately net exposed portfolio providing a lower volatility approach to global equity markets that we believe can produce superior risk adjusted returns over time.

A long position is the purchase of an investment with the expectation that it will rise in value.

A short position is the sale of a borrowed investment with the expectation that it will decline in value.

The S&P 500 Index is a free-float capitalization-weighted index based on the common stock prices of 500 American companies. It is one of the most commonly followed equity indices and many consider it the best representation of the market and a bellwether for the U.S. economy.

TABLE OF CONTENTS

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period August 7, 2012* to June 30, 2014

[GRAPHIC MISSING]

HISTORICAL PERFORMANCE
Total Return as of June 30, 2014


	1 Month			3 Month			Year to Date			1 Year			Since Inception 8/7/2012
AdvisorShares QAM Equity Hedge ETF NAV		1.61	%		1.82	%		1.75	%		10.52	%		8.47	%
AdvisorShares QAM Equity Hedge ETF Market Price**		1.54	%		1.57	%		3.31	%		10.62	%		8.41	%
HFRI Equity Hedge (Total) Index		1.73	%		2.19	%		3.32	%		12.60	%		N/A***

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 4.69% and the net expense ratio is 1.65%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

Commencement of operations.

***

Benchmark performance available on a month-end basis only. For the period 8/31/2012 through 6/30/2014, the HFRI Equity Hedge Index returned 11.71%.

The HFRI Equity Hedge Index is a fund-weighted index of select hedge funds focusing on Equity Hedge strategies. Equity Hedge investing consists of a core holding of long equities hedged at all times with short sales of stocks and/or stock index options. One cannot invest directly in an index.

TABLE OF CONTENTS

ADVISORSHARES TRUST
AdvisorShares Ranger Equity Bear ETF (HDGE)

The AdvisorShares Ranger Equity Bear ETF (NYSE: ARCA: HDGE) returned -27.04% on a Market Price basis and -27.15% on an NAV basis from July 1, 2013 through June 30, 2014 compared to 24.61% for the S&P 500 Index. As a short-only investment vehicle HDGE seeks to outperform peers and relevant benchmarks on a relative basis during bull markets. During down markets and/or highly volatile market conditions characterized by fear and uncertainty, HDGE seeks to generate positive results and outperform peers and relevant benchmarks on both a relative and absolute basis.

Performance was driven by a mid-capitalization growth exposure allocated to stocks not in the S&P 500 Index. The fund remained nearly fully invested over the entire 12 month period in aggressive growth stocks despite equity markets pushing to new highs. Sentiment remains extremely elevated with the spread between bullish and bearish investors at generational extremes. The IPO market remains frothy with more than 60% of new offerings losing money. Corporate buybacks have slowed in recent months while covenant light loans have exceeded levels of 2007 when credit terms were much looser. As a result, the fund is maintaining a maximum exposure and aggressively short portfolio.

A Short position is the sale of a borrowed investment with the expectation that it will decline in value.

A Bull Market (Bullish) is a financial market of a group of securities in which prices are rising or are expected to rise. The term “bull market” is most often used to refer to the stock market, but can be applied to anything that is traded, such as bonds, currencies and commodities.

A Bear Market (Bearish) is a market condition in which the prices of securities are falling, and widespread pessimism causes the negative sentiment to be self-sustaining. As investors anticipate losses in a bear market and selling continues, pessimism only grows. Although figures can vary, for many, a downturn of 20% or more in multiple broad market indexes, such as the Dow Jones Industrial Average (DJIA) or Standard & Poor’s 500 Index (S&P 500), over at least a two-month period, is considered an entry into a bear market.

A Buyback is the repurchase of outstanding shares (repurchase) by a company in order to reduce the number of shares on the market. Companies will buy back shares either to increase the value of shares still available (reducing supply), or to eliminate any threats by shareholders who may be looking for a controlling stake.

A Covenant Light Loan is a type of loan whereby financing is given with limited restrictions on the debt-service capabilities of the borrower. The issuance of covenant-lite loans means that debt is being issued, both personally and commercially, to borrowers with fewer restrictions on collateral, payment terms, and level of income.

TABLE OF CONTENTS

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period January 27, 2011* to June 30, 2014

[GRAPHIC MISSING]

HISTORICAL PERFORMANCE
Total Return as of June 30, 2014


	1 Month			3 Month			Year to Date			1 Year			3 Year			Since Inception 1/27/2011
AdvisorShares Ranger Equity Bear ETF NAV		-5.00	%		-7.54	%		-7.75	%		-27.15	%		-19.58	%		-19.73	%
AdvisorShares Ranger Equity Bear ETF Market Price**		-5.00	%		-7.46	%		-7.75	%		-27.04	%		-19.56	%		-19.71	%
S&P 500 Index		2.07	%		5.23	%		7.14	%		24.61	%		16.58	%		15.29	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) and net expense ratio is 3.29%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

Commencement of operations.

The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks. One cannot invest directly in an index.

TABLE OF CONTENTS

ADVISORSHARES TRUST
AdvisorShares Sage Core Reserves ETF (HOLD)

The AdvisorShares Sage Core Reserves ETF (NYSE Arca: HOLD) gained 0.11% since inception (January 14, 2014) on a NAV basis and 0.13% on a Market Price basis. The Barclays 1-3 Month U.S. Treasury Bill Index, a common short-term benchmark, in contrast returned 0.01% since HOLD’s inception.

Since HOLD’s inception in 2014, fixed income investors have been treated to the favorable mix of falling interest rates and tightening credit spreads. Disappointing global growth in the first quarter of 2014 set the table for this backdrop, by curbing higher rate expectations and stoking the demand for yield. Add to this, continued low inflation, further easing from the European Central Bank and rising geopolitical risks and the pieces were in place for a surprisingly strong first half for fixed income.

Going into 2014, we believed the best strategy was to mitigate rate volatility with a defensive duration position, including short futures positions, overweight higher-yielding sectors for additional income carry over benchmarks, and to take advantage of both sector and yield curve relative value opportunities as they emerged. This worked well, with our income advantage offsetting the effects of generally being short duration, and our curve and sector tilts, such as being overweight mortgage-backed and asset-backed securities, adding additional value.

Credit Spread is the spread between Treasury securities and non-Treasury securities that are identical in all respects except for quality rating.

The Short Futures position is an unlimited profit, unlimited risk position that can be entered by the futures speculator to profit from a fall in the price of the underlying.

A Mortgage Backed Security is a type of asset-backed security that is secured by a mortgage or collection of mortgages. These securities must also be grouped in one of the top two ratings as determined by an accredited credit rating agency, and usually pay periodic payments that are similar to coupon payments. Furthermore, the mortgage must have originated from a regulated and authorized financial institution.

TABLE OF CONTENTS

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period January 14, 2014* to June 30, 2014

[GRAPHIC MISSING]

HISTORICAL PERFORMANCE
Total Return as of June 30, 2014


	1 Month			3 Month			Since Inception 1/14/2014
AdvisorShares Sage Core Reserves ETF NAV		0.00	%		0.08	%		0.11	%
AdvisorShares Sage Core Reserves ETF Market Price**		0.03	%		0.08	%		0.13	%
Barclays 1-3 Month U.S. Treasury Bill Index		0.00	%		0.01	%		0.01	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 0.36% and the net expense ratio is 0.35%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

Commencement of operations.

The Barclays 1-3 Month U.S. Treasury Bill Index includes all publicly issued zero-coupon U.S. Treasury Bills that have a remaining maturity of less than 3 months and more than 1 month, are rated investment grade, and have $250 million or more of outstanding face value. The Barclays Treasury Bill Index is an unmanaged index considered representative of the performance of the U.S. Treasury Bill issued by the U.S. Government. One cannot invest directly in an index.

TABLE OF CONTENTS

ADVISORSHARES TRUST
AdvisorShares STAR Global Buy-Write ETF (VEGA)

The AdvisorShares STAR Global Buy-Write ETF (NYSE Arca: VEGA) gained 11.01% for the year ending June 30, 2014 on a Market Price basis and 10.89% on an NAV basis. By comparison, VEGA’s Policy Benchmark* gained 20.15% over the same period. While it underperformed the Benchmark for the year, much of this was due to a surge in equity prices in the 2^nd half of 2013. For the first 6 months of 2014, VEGA gained 4.75% versus 4.46% for the Benchmark. In addition, for the 12 months ending June 30, 2014, VEGA achieved a beta of just 0.49 versus the S&P 500.

VEGA is a broadly diversified ETF that includes other asset classes beyond the S&P 500, such as, individual equities, foreign developed and emerging market equities, global bonds and domestic fixed income. We believe that VEGA, over full market cycles, can provide its benefit in declining markets by harnessing volatility in the form of earned option premiums from covered calls and cash-secured puts, and utilizing cash as a strategic asset intended to be reinvested when levels of implied volatility on its constituent ETFS is higher than average.

Typically, VEGA will benefit from volatile markets while participating less in strongly trending markets. We have witnessed primarily the latter during the fiscal year ended June 30, 2014. Thus, while appreciating prices in the equity-based ETFs held in the Fund have had a positive impact on performance, this was partially offset by the more modest returns from fixed-income, the strategic cash allocation, and below average option premiums.

An option premium is the income received by an investor who sells or “writes” an option contract to another party. The current price of any specific option contract that has yet to expire. For stock options, the premium is quoted as a dollar amount per share and most contracts represent the commitment of 100 shares.

A covered call is an options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset in an attempt to generate increased income from the asset. This is often employed when an investor has a short-term neutral view on the asset and for this reason hold the asset long and simultaneously have a short position via the option to generate income from the option premium.

An investor who employs a cash-secured put writes a put contract, and at the same time deposits in his brokerage account the full cash amount for a possible purchase of underlying shares. The purpose of depositing this cash is to ensure that it’s available should the investor be assigned on the short put position and be obligated to purchase shares at the put’s strike price. While the cash is on deposit it may generally be invested in short-term, interest-bearing instruments.

VEGA’s Policy Benchmark comprises a 37.5% weighting to the MSCI World Index, 37.5% to the CBOE BuyWrite Index and 25% to the Barclays’ Intermediate Government/Credit Index.

TABLE OF CONTENTS

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period September 17, 2012* to June 30, 2014

[GRAPHIC MISSING]

HISTORICAL PERFORMANCE
Total Return as of June 30, 2014


	1 Month			3 Month			Year to Date			1 Year			Since Inception 9/17/2012
AdvisorShares STAR Global Buy-Write ETF NAV		1.00	%		3.07	%		4.80	%		10.89	%		3.08	%
AdvisorShares STAR Global Buy-Write ETF Market Price**		1.20	%		3.27	%		4.75	%		11.01	%		3.17	%
MSCI World Index (Net)		1.79	%		4.86	%		6.18	%		24.05	%		18.26	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 2.60% and the net expense ratio is 2.10%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

Commencement of operations.

TABLE OF CONTENTS

ADVISORSHARES TRUST
AdvisorShares TrimTabs Float Shrink ETF (TTFS)

The AdvisorShares TrimTabs Float Shrink ETF (NYSE Arca: TTFS) returned 25.00% on a Market Price basis and 25.18% on an NAV basis from July 1, 2013 through June 30, 2014, compared to 25.22% for the Russell 3000 Index and 24.61% for the S&P 500 Index.

The U.S. stock market has posted five straight months of gains, and the S&P 500 hit record closing highs on 22 trading sessions in the first half of 2014. The TrimTabs Float Shrink ETF (NYSE: TTFS) benefited from the rising tide. The fund was also featured in several articles, including an article on May 30 by Jason Zweig of the Wall Street Journal entitled “No Free Lunch in Dividend Funds.” Data from Standard & Poor’s indicates stock buybacks in the first quarter of 2014 were the second highest on record, which suggests demand for shares among public companies remained high which positively impacted the fund for the period.

We believe such demand was driven by two factors. First, slow economic growth and weak consumer demand around the world make companies wary of ramping up capital spending and hiring. Second, as stock prices move higher, public companies have a greater need to reduce their equity float to offset stock option exercises. Investors in companies that do not have buyback programs, for example, face a growing risk of equity dilution. We feel that the active management of our portfolio strategy leaves us well positioned for the future.

The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks. One cannot invest directly in an index.

Tradable Equity Float (Public Float) is the number of shares publicly owned and available for trading. Floating shares are included in the calculation of a company’s outstanding shares, along with restricted stock. Restricted stock is only available to company insiders, like employees and executives. It is not freely traded among the public and is subject to special Securities and Exchange Commission restrictions. Unlike floating stock which is freely tradable.

An option is a financial derivative that represents a contract sold by one party (option writer) to another party (option holder). The contract offers the buyer the right, but not the obligation, to buy (call) or sell (put) a security or other financial asset at an agreed-upon price (the strike price) during a certain period of time or on a specific date (exercise date).

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period October 5, 2011* to June 30, 2014

[GRAPHIC MISSING]

TABLE OF CONTENTS

HISTORICAL PERFORMANCE
Total Return as of June 30, 2014


	1 Month			3 Month			Year to Date			1 Year			Since Inception 10/5/2011
AdvisorShares TrimTabs Float Shrink ETF NAV		1.01	%		3.35	%		5.72	%		25.18	%		28.35	%
AdvisorShares TrimTabs Float Shrink ETF Market Price**		1.02	%		3.28	%		5.78	%		25.00	%		28.38	%
Russell 3000 Index		2.51	%		4.87	%		6.94	%		25.22	%		25.81	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 1.90% and the net expense ratio is 0.99%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

Commencement of operations.

The Russell 3000 Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market. One cannot invest directly in an index.

TABLE OF CONTENTS

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

The AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF (NYSE Arca: AADR) returned 19.85% from July 1, 2013 to the period ended June 30, 2014, underperforming the MSCI EAFE Index which returned 23.57%.

Essentially all of AADR’s underperformance for the fiscal year ended June 30, 2013 occurred during the first three months of the fiscal year (Jun 30, 2013 through Sep 30, 2013, “2013 Q3”). There were a few headwinds for the portfolio, most of which have abated since that time.

One headwind was our exposure to emerging markets (“EM”). Historically and, we believe, prospectively, holdings in high-quality growth businesses from EM countries is essential to good long-term returns. But in any given short period this may not be true. Specifically, AADR’s 25% weight in EM holdings during 2013 Q3 (compared to 0% in the MSCI EAFE) proved to be a drag. Even though our EM holdings outperformed the MSCI EM index, that was not enough to overcome general EM weakness; to wit, the return for MSCI EAFE was about double that of the MSCI EM index in 2013 Q3.

The second major headwind in 2013 Q3 was our bottom-up bias to classic growth sectors such as Health Care and Consumer Staples, and away from classic lower growth sectors such as Materials and Telecom. In particular, AADR had almost no exposure to Materials and Telecom, the two best performing sectors in the MSCI EAFE. Conversely, Consumer Staples and Health Care were the two poorest performing sectors in the MSCI EAFE, and these were two of AADR’s largest overweights.

As implied earlier, these headwinds abated to a large degree after the initial three months of the fiscal year and AADR then kept pace with the MSCI EAFE. That includes the overall market sell off in March and April of 2014, after which we were encouraged to see more opportunities (better prices) emerge in higher-growth names. Yes, a case can be made that there has been some froth in pockets of the market with unproven business models (e.g., cloud, social, big data, etc.). Even so, we’ve identified several excellent, profitable businesses that, though they were caught up in that indiscriminate selling, now look quite attractive. AADR portfolio activity in the last six months is a reflection of this view.

Looking forward, overall market volatility has diminished significantly in recent months (one popular volatility measure was approaching decade lows in June), prompting several commentators to call for a ‘new normal’ of low volatility. We could not disagree more, and while we can’t predict the exact sources, we expect continued market volatility to create great new buying opportunities, as it always has. Further, money flows into EM markets seem to be picking up in recent months, though they are initially going for value markets/sectors. But as EM economies remain choppy and risks (such as higher rates) come back into view, we expect our types of companies — those with strong fundamentals that can grow irrespective of the macro environment — to return to favor.

TABLE OF CONTENTS

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period July 21, 2010* to June 30, 2014

[GRAPHIC MISSING]

HISTORICAL PERFORMANCE
Total Return as of June 30, 2014


	1 Month			3 Month			Year to Date			1 Year			3 Year			Since Inception 7/21/2010
AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF NAV		2.32	%		3.05	%		4.03	%		19.85	%		8.04	%		12.50	%
AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF Market Price**		2.30	%		2.83	%		3.78	%		19.85	%		7.87	%		12.48	%
MSCI EAFE Index (Net)		0.96	%		4.09	%		4.78	%		23.57	%		8.10	%		12.07	%
BNY Mellon Classic ADR Index TR		1.41	%		4.49	%		4.45	%		22.47	%		6.25	%		10.39	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 2.53% and the net expense ratio is 1.26%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

Commencement of operations.

The BNY Mellon Classic ADR Index combines the over the counter (OTC) traded ADRs with exchange-listed ADRs bringing transparency to the available universe of American Depositary Receipts, including those issued by many of the world’s premier companies. One cannot invest directly in an index.

TABLE OF CONTENTS

ADVISORSHARES TRUST
AdvisorShares YieldPro ETF (YPRO)

The AdvisorShares YieldPro ETF (NASDAQ: YPRO) provided a total Market Price return of 2.07% and an NAV return of 1.95% since inception, slightly underperforming the Barclays Capital Aggregate Bond Index which returned 2.02% over the same time period. Riskier income producing assets which exhibit more equity-like risk characteristics contributed the most to performance since inception. Specifically, our allocation to high yield bonds, preferred stocks, Mortgage REITs (Real Estate Investment Trust), and energy related stocks (primarily Master Limited Partnerships) provided the largest positive contribution to return. The fund’s exposure to longer-term investment grade corporate bonds also provided a notable contribution to returns. Although YPRO provided a positive absolute return, the fund lost some value from hedging exposure to major increases in interest rates. We also remain concerned about valuations in credit markets, most specifically high yield and bank loans, and continue to hedge our credit risk while still seeking to earn a competitive yield in the portfolio.

Since the fund’s inception on March 4, 2014, we have witnessed an environment which was beneficial to stocks and bonds alike. The S&P 500 Index hit historically low levels of volatility as of 06/30/14, exhibiting an annual standard deviation of daily returns of approximately 10%, which compares to a historical average of over 16%. The last time equity markets exhibited this type of calm was the 2006/2007 period leading into the last financial crisis. The signs of complacency that usually serve as a precursor to market corrections (narrow credit spreads, low equity volatility, excessive risk taking, higher leverage, irresponsible lending) are sounding alarm bells. Fortunately (for us), insurance tends to be cheap when investors are complacent. Given the level of complacency in global markets, implied volatility has been very low which provides us with an attractive opportunity to build additional capital preservation into the portfolio through investments in call options on the CBOE S&P 500 Volatility Index, or VIX. Ultimately, these forms of ‘portfolio insurance’ may be dilutive to returns in the short run, but we believe that they will provide significant protection in the intermediate-term. As a result, we believe that in this environment of frothy valuations, we are willing to give up some upside in the short-term for the objective of capital preservation.

We have written repeatedly about the excesses we are seeing in a variety of markets, most specifically the loan and high yield markets. We believe that the market is underpricing a variety of risks, including but not limited to a rise in interest rates, a resurgence of the European debt crisis, and a potential liquidity crisis in the high yield and the loan market. That said, we aren’t hiding under the desk in fear of the next crisis, but rather, we invest and take risk with awareness of the next potential crisis. When we take risk, we tend to buy protection, thereby targeting a positive return to investors at a low level of volatility. In closing, as of 6/30/14 our portfolio is structured with targeted annualized volatility of approximately 2.5%, with the objective of exhibiting limited sensitivity to interest rates, credit risk, and equity risk. We believe that we can continue to identify opportunities to generate capital appreciation and yield, but we are risk aware, and we continue to proceed with caution.

A Real Estate Investment Trust (REIT) is a security that sells like a stock on the major exchanges and invests in real estate directly, either through properties or mortgages. REITs receive special tax considerations and typically offer investors high yields, as well as a highly liquid method of investing in real estate.

A Master Limited Partnership (MLP) is a type of limited partnership that is publicly traded. There are two types of partners in this type of partnership: The limited partner is the person or group that provides the capital to the MLP and receives periodic income distributions from the MLP’s cash flow, whereas the general partner is the party responsible for managing the MLP’s affairs and receives compensation that is linked to the performance of the venture.

Implied Volatility is the estimated volatility of a security’s price. In general, implied volatility increases when the market is bearish and decreases when the market is bullish. This is due to the common belief that bearish markets are more risky than bullish markets.

The CBOE S&P 500 Volatility Index (VIX) is the ticker symbol for the Chicago Board Options Exchange (CBOE) Volatility Index, which shows the market’s expectation of 30-day volatility. It is constructed using the implied volatilities of a wide range of S&P 500 index options. This volatility is

TABLE OF CONTENTS

meant to be forward looking and is calculated from both calls and puts. The VIX is a widely used measure of market risk and is often referred to as the “investor fear gauge”. The VIX is a contrarian sentiment indicator that helps to determine when there is too much optimism or fear in the market.

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period March 4, 2014* to June 30, 2014

[GRAPHIC MISSING]

HISTORICAL PERFORMANCE
Total Return as of June 30, 2014


	1 Month			3 Month			Since Inception 3/4/2014
AdvisorShares YieldPro ETF NAV		0.24	%		1.79	%		1.95	%
AdvisorShares YieldPro ETF Market Price**		0.28	%		1.78	%		2.07	%
Barclays Capital U.S. Aggregate Bond Index		0.05	%		2.04	%		2.02	%

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) and net expense ratio is 1.42%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding the net expense ratio. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.

Commencement of operations.

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

TABLE OF CONTENTS

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 January 1, 2014 and held for the period ended June 30, 2014.

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 1/1/2014		Ending Account Value 6/30/2014		Annualized Expense Ratio for the Period⁽¹⁾			Expenses Paid
AdvisorShares Accuvest Global Long Short ETF
Actual	$	1,000.00	$	932.90		1.50	%	$	7.19
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,017.36		1.50	%	$	7.50
AdvisorShares Accuvest Global Opportunities ETF
Actual	$	1,000.00	$	963.20		1.25	%	$	6.08
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,018.60		1.25	%	$	6.26
AdvisorShares Athena International Bear ETF
Actual	$	1,000.00	$	903.90		1.50	%	$	7.08
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,017.36		1.50	%	$	7.50
AdvisorShares Cambria Global Tactical ETF
Actual	$	1,000.00	$	1,052.20		1.25	%	$	6.36
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,018.60		1.25	%	$	6.26

TABLE OF CONTENTS

ADVISORSHARES TRUST

Shareholder Expense Examples (continued)


Fund Name	Beginning Account Value 1/1/2014		Ending Account Value 6/30/2014		Annualized Expense Ratio for the Period⁽¹⁾			Expenses Paid
AdvisorShares EquityPro ETF⁽²⁾
Actual	$	1,000.00	$	1,064.00		1.25	%	$	6.40
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,018.60		1.25	%	$	6.26
AdvisorShares Gartman Gold/British Pound ETF⁽³⁾
Actual	$	1,000.00	$	981.20		0.65	%	$	2.45
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,016.57		0.65	%	$	2.50
AdvisorShares Gartman Gold/Euro ETF⁽³⁾
Actual	$	1,000.00	$	1,017.20		0.65	%	$	2.50
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,016.57		0.65	%	$	2.50
AdvisorShares Gartman Gold/Yen ETF⁽³⁾
Actual	$	1,000.00	$	1,010.90		0.65	%	$	2.49
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,016.57		0.65	%	$	2.50
AdvisorShares Global Echo ETF
Actual	$	1,000.00	$	1,014.60		1.50	%	$	7.49
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,017.36		1.50	%	$	7.50
AdvisorShares International Gold ETF⁽³⁾
Actual	$	1,000.00	$	1,006.30		0.95	%	$	3.63
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,015.42		0.95	%	$	3.65
AdvisorShares Madrona Domestic ETF
Actual	$	1,000.00	$	1,076.10		1.25	%	$	6.43
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,018.60		1.25	%	$	6.26
AdvisorShares Madrona Global Bond ETF
Actual	$	1,000.00	$	1,064.50		0.95	%	$	4.86
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,020.08		0.95	%	$	4.76
AdvisorShares Madrona International ETF
Actual	$	1,000.00	$	1,043.30		1.25	%	$	6.33
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,018.60		1.25	%	$	6.26
AdvisorShares Meidell Tactical Advantage ETF
Actual	$	1,000.00	$	1,002.00		1.35	%	$	6.70
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,018.10		1.35	%	$	6.76
AdvisorShares Newfleet Multi-Sector Income ETF
Actual	$	1,000.00	$	1,024.30		0.75	%	$	3.76
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,021.08		0.75	%	$	3.76

TABLE OF CONTENTS

ADVISORSHARES TRUST

Shareholder Expense Examples (continued)


Fund Name	Beginning Account Value 1/1/2014		Ending Account Value 6/30/2014		Annualized Expense Ratio for the Period⁽¹⁾			Expenses Paid
AdvisorShares Peritus High Yield ETF
Actual	$	1,000.00	$	1,066.40		1.18	%	$	6.05
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,018.94		1.18	%	$	5.91
AdvisorShares Pring Turner Business Cycle ETF
Actual	$	1,000.00	$	1,098.10		1.49	%	$	7.75
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,017.41		1.49	%	$	7.45
AdvisorShares QAM Equity Hedge ETF
Actual	$	1,000.00	$	1,017.50		1.50	%	$	7.50
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,017.36		1.50	%	$	7.50
AdvisorShares Ranger Equity Bear ETF
Actual	$	1,000.00	$	922.50		1.85	%	$	8.82
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,015.62		1.85	%	$	9.25
AdvisorShares Sage Core Reserves ETF⁽⁴⁾
Actual	$	1,000.00	$	1,001.10		0.35	%	$	1.60
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,021.28		0.35	%	$	1.62
AdvisorShares STAR Global Buy-Write ETF
Actual	$	1,000.00	$	1,048.00		1.85	%	$	9.39
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,015.62		1.85	%	$	9.25
AdvisorShares TrimTabs Float Shrink ETF
Actual	$	1,000.00	$	1,057.20		0.99	%	$	5.05
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,019.89		0.99	%	$	4.96
AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF
Actual	$	1,000.00	$	1,040.30		1.25	%	$	6.32
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,018.60		1.25	%	$	6.26
AdvisorShares YieldPro ETF⁽⁵⁾
Actual	$	1,000.00	$	1,019.50		1.07	%	$	3.49
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,012.71		1.07	%	$	3.48

(1)

Expense ratios reflect expense caps through the period ended June 30, 2014.

(2)

Formerly known as, AdvisorShares Global Alpha & Beta ETF.

(3)

Fund commenced operations on February 11, 2014. Expenses are calculated using the Fund’s annualized expense ratio, multiplied by the ending value for the period, multiplied by 139/365 (to reflect commencement of operation).

(4)

Fund commenced operations on January 14, 2014. Expenses are calculated using the Fund's annualized expense ratio, multiplied by the ending value for the period, multiplied by 167/365 (to reflect commencement of operation).

(5)

Fund commenced operations on March 4, 2014. Expenses are calculated using the Fund’s annualized expense ratio, multiplied by the ending value for the period, multiplied by 118/365 (to reflect commencement of operation).

TABLE OF CONTENTS

ADVISORSHARES ACCUVEST GLOBAL LONG SHORT ETF
Schedule of Investments

June 30, 2014


Investments	Shares		Value
EXCHANGE TRADED FUNDS — 95.7%
Equity Fund — 95.7%
Global X Norway 30 ETF		151,088	$	2,722,606
iShares Core S&P 500 ETF		13,239		2,608,083
iShares India 50 ETF		67,865		1,966,049
iShares MSCI China ETF^(a)		86,077		3,991,390
iShares MSCI Indonesia ETF^(a)		123,504		3,258,036
iShares MSCI Israel Capped ETF^(a)		41,721		2,178,796
iShares MSCI South Korea Capped ETF^(a)		24,059		1,564,316
iShares MSCI Spain Capped ETF^(a)		54,750		2,344,395
iShares MSCI Taiwan ETF		110,560		1,746,848
iShares MSCI Turkey ETF		42,982		2,388,080
Total Exchange Traded Funds (Cost $24,404,637)				24,768,599
MONEY MARKET FUND — 3.7%
Dreyfus Cash Management — Investor Class, 0.00%^(b) (Cost $961,696)		961,696		961,696
Total Investments — 99.4% (Cost $25,366,333)				25,730,295
Other Assets in Excess of Liabilities — 0.6%				165,721
Net Assets — 100.0%			$	25,896,016

ETF — Exchange Traded Fund

(a)

All or a portion of this security has been segregated as collateral for swap contracts. The aggregate market value of the collateral posted was $10,111,289 which includes cash in the amount of $116,127 as of June 30, 2014.

(b)

Rate shown reflects the 7-day yield as of June 30, 2014.

See accompanying Notes to Financial Statements.

TABLE OF CONTENTS

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

June 30, 2014

SUMMARY OF SCHEDULE OF INVESTMENTS


	% of Net Assets
Equity Fund		95.7	%
Money Market Fund		3.7
Total Investments		99.4
Other Assets in Excess of Liabilities		0.6
Net Assets		100.0	%

Total Return Swaps contracts outstanding as of June 30, 2014:


Reference Entity	Number of Contracts			Annual Financing Rate Received (Paid)			Termination Date		Notional Amounts			Fair Value			Unrealized Appreciation/ (Depreciation)
iShares Malaysia ETF		(84,848	)		(0.37	)%		6/09/2015	$	(1,349,083	)	$	(1,347,704	)	$	1,379
iShares MSCI Australia ETF		(50,780	)		(1.48	)		6/09/2015		(1,332,975	)		(1,328,145	)		4,830
iShares MSCI Austria Investable Market Index Fund		(66,621	)		(3.48	)		6/09/2015		(1,331,088	)		(1,307,405	)		23,683
iShares MSCI Brazil Index Fund		(28,769	)		(1.74	)		6/09/2015		(1,374,020	)		(1,375,991	)		(1,971	)
iShares MSCI Canada ETF		(43,553	)		(0.98	)		6/09/2015		(1,340,126	)		(1,403,684	)		(63,558	)
iShares MSCI Chile Capped ETF		(29,052	)		(1.51	)		6/09/2015		(1,364,282	)		(1,319,414	)		44,868
iShares MSCI Japan Index Fund		(115,529	)		(0.74	)		6/09/2015		(1,360,932	)		(1,391,617	)		(30,685	)
iShares MSCI Mexico Capped ETF		(20,543	)		(0.99	)		6/09/2015		(1,395,075	)		(1,393,830	)		1,245
iShares MSCI Netherlands Investable Market Index Fund		(52,592	)		(1.99	)		6/09/2015		(1,362,133	)		(1,348,090	)		14,043
iShares MSCI Switzerland Index Fund		(38,581	)		(1.74	)		6/09/2015		(1,362,681	)		(1,325,486	)		37,195
Net Unrealized Appreciation															$	31,029

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.

TABLE OF CONTENTS

ADVISORSHARES ACCUVEST GLOBAL OPPORTUNITIES ETF
Schedule of Investments

June 30, 2014


Investments	Shares		Value
EXCHANGE TRADED FUNDS — 98.5%
Equity Fund — 98.5%
Global X Norway 30 ETF^(a)		250,702	$	4,517,650
iShares Core S&P 500 ETF		23,428		4,615,316
iShares MSCI China ETF		120,142		5,570,985
iShares MSCI Indonesia ETF		129,138		3,406,660
iShares MSCI Israel Capped ETF^(a)		66,914		3,494,450
iShares MSCI Turkey ETF		62,188		3,455,165
Total Exchange Traded Funds (Cost $25,051,766)				25,060,226
MONEY MARKET FUND — 0.9%
Dreyfus Cash Management – Investor Class, 0.00%^(b) (Cost $231,471)		231,471		231,471
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 24.9%
BNY Mellon Securities Lending Overnight Fund, 0.11%^(c) (Cost $6,328,525)		6,328,525		6,328,525
Total Investments — 124.3% (Cost $31,611,762)				31,620,222
Liabilities in Excess of Other Assets — (24.3)%				(6,186,071	)
Net Assets — 100.0%			$	25,434,151

ETF — Exchange Traded Fund

(a)

All or a portion of security is on loan. The aggregate market value of the securities on loan is $6,166,571; the aggregate market value of the collateral held by the fund is $6,328,525.

(b)

Rate shown reflects the 7-day yield as of June 30, 2014.

(c)

Rate shown reflects the 1-day yield as of June 30, 2014.

SUMMARY OF SCHEDULE OF INVESTMENTS


	% of Net Assets
Equity Fund		98.5	%
Money Market Fund		25.8
Total Investments		124.3
Liabilities in Excess of Other Assets		(24.3	)
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

TABLE OF CONTENTS

ADVISORSHARES ATHENA INTERNATIONAL BEAR ETF
Schedule of Investments

June 30, 2014


Investments	Shares			Value
EXCHANGE TRADED FUND — 69.0%
Debt Fund — 69.0%
AdvisorShares Sage Core Reserves ETF^† (Cost $705,000)		7,050		$	703,660
MONEY MARKET FUND — 5.0%
Goldman Sachs Financial Square Fund, 0.07%^(a) (Cost $51,503)		51,503			51,503
Total Investments Before Securities Sold, Not Yet Purchased (Cost $756,503)					755,163
Securities Sold, Not Yet Purchased — (82.0)%
COMMON STOCKS — (82.0)%
Airlines — (2.8)%
Deutsche Lufthansa AG (Germany)^(b)		(1,340	)		(28,689	)
Auto Parts & Equipment — (8.1)%
Autoliv, Inc. (Sweden)		(240	)		(25,579	)
Magna International, Inc. (Canada)		(530	)		(57,108	)
Total Auto Parts & Equipment					(82,687	)
Banks — (5.9)%
Toronto-Dominion Bank (The) (Canada)		(1,160	)		(59,636	)
Building Materials — (4.5)%
CRH PLC (Ireland)^(b)		(1,780	)		(46,013	)
Chemicals — (1.1)%
Braskem SA (Brazil)^(b)		(870	)		(11,179	)
Computers — (3.8)%
CGI Group, Inc., Class A (Canada)*		(710	)		(25,191	)
Stratasys Ltd. (Israel)*		(120	)		(13,635	)
Total Computers					(38,826	)
Diversified Financial Services — (3.2)%
AerCap Holdings N.V. (Netherlands)*		(560	)		(25,648	)
Altisource Portfolio Solutions SA (Luxembourg)*		(60	)		(6,875	)
Total Diversified Financial Services					(32,523)

See accompanying Notes to Financial Statements.

TABLE OF CONTENTS

ADVISORSHARES ATHENA INTERNATIONAL BEAR ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Shares			Value
Electronics — (3.0)%
Allegion PLC (Ireland)		(230	)	$	(13,036	)
Mettler-Toledo International, Inc.*		(70	)		(17,723	)
Total Electronics					(30,759	)
Entertainment — (1.0)%
Lions Gate Entertainment Corp.		(350	)		(10,003	)
Healthcare – Services — (5.3)%
Fresenius Medical Care AG & Co. KGaA (Germany)^(b)		(1,600	)		(53,584	)
Insurance — (10.6)%
Arch Capital Group Ltd. (Bermuda)*		(330	)		(18,955	)
Assured Guaranty Ltd. (Bermuda)		(440	)		(10,780	)
Everest Re Group Ltd. (Bermuda)		(120	)		(19,259	)
PartnerRe Ltd. (Bermuda)		(130	)		(14,197	)
RenaissanceRe Holdings Ltd. (Bermuda)		(100	)		(10,700	)
White Mountains Insurance Group Ltd.		(20	)		(12,169	)
XL Group PLC (Ireland)		(680	)		(22,256	)
Total Insurance					(108,316	)
Iron/Steel — (1.3)%
Kobe Steel Ltd. (Japan)^(b)		(1,760	)		(13,130	)
Lodging — (2.7)%
InterContinental Hotels Group PLC (United Kingdom)*^(b)		(660	)		(27,397	)
Media — (8.6)%
Reed Elsevier PLC (United Kingdom)^(b)		(1,360	)		(87,978	)
Miscellaneous Manufacturing — (4.0)%
Ingersoll-Rand PLC (Ireland)		(660	)		(41,257	)
Oil & Gas Services — (0.9)%
Frank’s International N.V. (Netherlands)		(390	)		(9,594	)
Pharmaceuticals — (7.1)%
Endo International PLC*		(400	)		(28,008	)
Herbalife Ltd.		(260	)		(16,781	)
Mallinckrodt PLC (Ireland)*		(150	)		(12,003)

See accompanying Notes to Financial Statements.

TABLE OF CONTENTS

ADVISORSHARES ATHENA INTERNATIONAL BEAR ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Shares			Value
Pharmaceuticals — (7.1)% (continued)
Taro Pharmaceutical Industries Ltd. (Israel)*		(110	)	$	(15,426	)
Total Pharmaceuticals					(72,218	)
Retail — (1.8)%
Tim Hortons, Inc. (Canada)		(340	)		(18,608	)
Telecommunications — (5.2)%
Telecom Italia SpA (Italy)*^(b)		(4,200	)		(53,004	)
Transportation — (1.1)%
Teekay Corp. (Bermuda)		(180	)		(11,205	)
Total Securities Sold, Not Yet Purchased [Proceeds Received $(794,010)]					(836,606	)
Total Investments — (8.0)% [Cost $(37,507)]					(81,443	)
Other Assets in Excess of Liabilities — 108.0%					1,101,401
Net Assets — 100.0%				$	1,019,958

ETF — Exchange Traded Fund

PLC — Public Limited Company

†

Affiliated Company

Non-income producing security

(a)

Rate shown reflects the 7-day yield as of June 30, 2014.

(b)

American Depositary Receipt

Cash of $517,047 has been segregated to cover margin requirement for open short sales as of June 30, 2014.

See accompanying Notes to Financial Statements.

TABLE OF CONTENTS

ADVISORSHARES ATHENA INTERNATIONAL BEAR ETF
Schedule of Investments (continued)

June 30, 2014

SUMMARY OF SCHEDULE OF INVESTMENTS


	% of Net Assets
Airlines		(2.8	)%
Auto Parts & Equipment		(8.1	)
Banks		(5.9	)
Building Materials		(4.5	)
Chemicals		(1.1	)
Computers		(3.8	)
Debt Fund		69.0
Diversified Financial Services		(3.2	)
Electronics		(3.0	)
Entertainment		(1.0	)
Healthcare – Services		(5.3	)
Insurance		(10.6	)
Iron/Steel		(1.3	)
Lodging		(2.7	)
Media		(8.6	)
Miscellaneous Manufacturing		(4.0	)
Oil & Gas Services		(0.9	)
Pharmaceuticals		(7.1	)
Retail		(1.8	)
Telecommunications		(5.2	)
Transportation		(1.1	)
Money Market Fund		5.0
Total Investments		(8.0	)
Other Assets in Excess of Liabilities		108.0
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

TABLE OF CONTENTS

ADVISORSHARES CAMBRIA GLOBAL TACTICAL ETF
Schedule of Investments

June 30, 2014


Investments	Shares		Value
EXCHANGE TRADED FUNDS — 99.5%
Asset Allocation Fund — 1.9%
WisdomTree Managed Futures Strategy Fund*^(a)		16,918	$	706,665
Commodity Fund — 14.8%
PowerShares DB Agriculture Fund*^(a)		38,282		1,051,224
PowerShares DB Base Metals Fund*^(a)		90,840		1,542,463
PowerShares DB Energy Fund*^(a)		23,951		736,493
PowerShares DB Precious Metals Fund*		14,071		606,601
United States Commodity Index Fund*^(a)		24,453		1,482,341
Total Commodity Fund				5,419,122
Currency Fund — 2.3%
CurrencyShares Australian Dollar Trust		1,719		162,377
CurrencyShares British Pound Sterling Trust*		994		167,399
CurrencyShares Canadian Dollar Trust		589		54,895
CurrencyShares Japanese Yen Trust*^(a)		554		53,322
CurrencyShares Swiss Franc Trust*^(a)		477		52,599
WisdomTree Brazilian Real Strategy Fund*^(a)		9,413		182,142
WisdomTree Emerging Currency Strategy Fund*^(a)		7,912		162,750
Total Currency Fund				835,484
Debt Fund — 16.4%
iShares 20+ Year Treasury Bond ETF		16,946		1,923,710
iShares iBoxx $ High Yield Corporate Bond ETF^(a)		7,423		706,670
iShares iBoxx $ Investment Grade Corporate Bond ETF^(a)		5,927		706,854
Market Vectors International High Yield Bond ETF^(a)		25,653		720,849
PowerShares Emerging Markets Sovereign Debt Portfolio		37,172		1,083,935
PowerShares Fundamental High Yield Corporate Bond Portfolio		35,896		703,562
WisdomTree Emerging Markets Local Debt Fund^(a)		3,478		165,344
Total Debt Fund				6,010,924
Equity Fund — 64.1%
Cambria Foreign Shareholder Yield ETF		81,238		2,211,705
Cambria Global Value ETF		48,466		1,254,785
Cambria Shareholder Yield ETF^(a)		72,699		2,236,221
Energy Select Sector SPDR Fund		6,226		623,223
Financial Select Sector SPDR Fund		24,627		560,018
Global X FTSE Greece 20 ETF		36,577		822,982
Health Care Select Sector SPDR Fund^(a)		9,122		554,891
Industrial Select Sector SPDR Fund		11,016		595,525
iShares Mortgage Real Estate Capped ETF		85,305		1,078,255
iShares MSCI Austria Capped ETF^(a)		34,550		676,489
iShares MSCI Brazil Capped ETF^(a)		13,306		635,761
iShares MSCI EAFE Small-Cap ETF		6,981		369,435
iShares MSCI Ireland Capped ETF		11,292		404,367

See accompanying Notes to Financial Statements.

TABLE OF CONTENTS

ADVISORSHARES CAMBRIA GLOBAL TACTICAL ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Shares		Value
Equity Fund — 64.1% (continued)
iShares MSCI Italy Capped ETF^(a)		44,564	$	774,522
iShares MSCI South Korea Capped ETF		11,283		733,621
iShares MSCI Spain Capped ETF^(a)		17,304		740,957
iShares MSCI Taiwan ETF		46,873		740,593
iShares Residential Real Estate Capped ETF		22,139		1,181,116
Market Vectors Gold Miners ETF		30,123		796,753
Market Vectors Junior Gold Miners ETF*		9,000		380,340
Market Vectors Russia ETF		30,838		811,965
Materials Select Sector SPDR Fund		11,994		595,382
SPDR Dow Jones International Real Estate ETF		22,680		1,003,363
SPDR S&P Emerging Markets SmallCap ETF		7,695		387,058
Vanguard Global ex-U.S. Real Estate ETF		12,786		742,227
Vanguard REIT ETF		24,893		1,862,992
WisdomTree Emerging Markets SmallCap Dividend Fund		6,954		333,931
WisdomTree International SmallCap Dividend Fund		6,114		396,126
Total Equity Fund				23,504,603
Total Exchange Traded Funds (Cost $34,045,967)				36,476,798
MONEY MARKET FUND — 1.1%
Invesco Government & Agency Portfolio – Private Investment Class, 0.01%^(b) (Cost $400,877)		400,877		400,877
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 18.7%
BNY Mellon Securities Lending Overnight Fund, 0.11%^(c) (Cost $6,883,911)		6,883,911		6,883,911
Total Investments — 119.3% (Cost $41,330,755)				43,761,586
Liabilities in Excess of Other Assets — (19.3)%				(7,094,864	)
Net Assets — 100.0%			$	36,666,722

ETF — Exchange Traded Fund

Non-income producing security

(a)

All or a portion of security is on loan. The aggregate market value of the securities on loan is $6,721,952; the aggregate market value of the collateral held by the fund is $6,883,911.

(b)

Rate shown reflects the 7-day yield as of June 30, 2014.

(c)

Rate shown reflects the 1-day yield as of June 30, 2014.

See accompanying Notes to Financial Statements.

TABLE OF CONTENTS

ADVISORSHARES CAMBRIA GLOBAL TACTICAL ETF
Schedule of Investments (continued)

June 30, 2014

SUMMARY OF SCHEDULE OF INVESTMENTS


	% of Net Assets
Asset Allocation Fund		1.9	%
Commodity Fund		14.8
Currency Fund		2.3
Debt Fund		16.4
Equity Fund		64.1
Money Market Fund		19.8
Total Investments		119.3
Liabilities in Excess of Other Assets		(19.3	)
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

TABLE OF CONTENTS

ADVISORSHARES EQUITYPRO ETF†
Schedule of Investments

June 30, 2014


Investments	Shares		Value
EXCHANGE TRADED FUNDS — 96.4%
Equity Fund — 96.4%
iShares Global Consumer Discretionary ETF^(a)		20,153	$	1,694,666
iShares Global Consumer Staples ETF		29,148		2,619,822
iShares Global Energy ETF		39,599		1,921,344
iShares Global Financials ETF		29,501		1,688,932
iShares Global Healthcare ETF^(a)		28,654		2,702,932
iShares Global Industrials ETF		24,876		1,812,465
iShares Global Materials ETF		28,513		1,839,659
iShares Global Tech ETF		19,257		1,713,295
iShares Global Telecom ETF^(a)		25,552		1,611,309
iShares Global Utilities ETF		34,537		1,737,556
Total Exchange Traded Funds (Cost $18,181,423)				19,341,980
MONEY MARKET FUND — 1.9%
Wells Fargo Advantage Government Money Market Fund – Institutional Class, 0.01%^(b) (Cost $394,334)		394,334		394,334
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 2.7%
BNY Mellon Securities Lending Overnight Fund, 0.11%^(c) (Cost $539,860)		539,860		539,860
Total Investments — 101.0% (Cost $19,115,617)				20,276,174
Liabilities in Excess of Other Assets — (1.0)%				(206,534	)
Net Assets — 100.0%			$	20,069,640

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 $528,936; the aggregate market value of the collateral held by the fund is $539,860.

(b)

Rate shown reflects the 7-day yield as of June 30, 2014.

(c)

Rate shown reflects the 1-day yield as of June 30, 2014.

See accompanying Notes to Financial Statements.

TABLE OF CONTENTS

ADVISORSHARES EQUITYPRO ETF
Schedule of Investments (continued)

June 30, 2014

SUMMARY OF SCHEDULE OF INVESTMENTS


	% of Net Assets
Equity Fund		96.4	%
Money Market Fund		4.6
Total Investments		101.0
Liabilities in Excess of Other Assets		(1.0	)
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

TABLE OF CONTENTS

ADVISORSHARES GARTMAN GOLD/BRITISH POUND ETF
Schedule of Investments (Consolidated)†

June 30, 2014


Investments	Shares		Value
MONEY MARKET FUND — 70.0%
BlackRock Liquidity Funds TempFund Portfolio – Institutional Class, 0.03%^(a) (Cost $879,015)		879,015	$	879,015
Total Investments — 70.0% (Cost $879,015)				879,015
Other Assets in Excess of Liabilities — 30.0%				376,918
Net Assets — 100.0%			$	1,255,933

†

The Consolidated Schedule of Investments included the accounts of the wholly owned subsidiary. All inter-company accounts and transactions have been eliminated in consolidation. See the Notes to Financial Statements.

(a)

Rate shown reflects the 7-day yield as of June 30, 2014.

Futures contracts outstanding as of June 30, 2014:


Type	Broker		Expiration Date		Number of Contracts			Value at Trade Date			Value at June 30, 2014			Unrealized Appreciation/(Depreciation)
British Pound Currency		BNP Paribas Securities Services		September 2014		(12	)	$	(1,260,138	)	$	(1,282,125	)	$	(21,987	)
Gold 100 Oz.		BNP Paribas Securities Services		August 2014		10			1,259,910			1,322,000			62,090
														$	40,103

See accompanying Notes to Financial Statements.

TABLE OF CONTENTS

ADVISORSHARES GARTMAN GOLD/EURO ETF
Schedule of Investments (Consolidated)†

June 30, 2014


Investments	Shares		Value
MONEY MARKET FUND — 67.4%
BlackRock Liquidity Funds TempFund Portfolio – Institutional Class, 0.03%^(a) (Cost $878,068)		878,068	$	878,068
Total Investments — 67.4% (Cost $878,068)				878,068
Other Assets in Excess of Liabilities — 32.6%				424,158
Net Assets — 100.0%			$	1,302,226

†

(a)

Rate shown reflects the 7-day yield as of June 30, 2014.

Futures contracts outstanding as of June 30, 2014:


Type	Broker		Expiration Date		Number of Contracts			Value at Trade Date			Value at June 30, 2014			Unrealized Appreciation/(Depreciation)
EURO Currency		BNP Paribas Securities Services		September 2014		(8	)	$	(1,365,942	)	$	(1,369,800	)	$	(3,858	)
Gold 100 Oz.		BNP Paribas Securities Services		August 2014		10			1,259,910			1,322,000			62,090
														$	58,232

See accompanying Notes to Financial Statements.

TABLE OF CONTENTS

ADVISORSHARES GARTMAN GOLD/YEN ETF
Schedule of Investments (Consolidated)†

June 30, 2014


Investments	Shares		Value
MONEY MARKET FUND — 81.8%
BlackRock Liquidity Funds TempFund Portfolio – Institutional Class, 0.03%^(a) (Cost $3,173,799)		3,173,799	$	3,173,799
Total Investments — 81.8% (Cost $3,173,799)				3,173,799
Other Assets in Excess of Liabilities — 18.2%				707,498
Net Assets — 100.0%			$	3,881,297

†

(a)

Rate shown reflects the 7-day yield as of June 30, 2014.

Futures contracts outstanding as of June 30, 2014:


Type	Broker		Expiration Date		Number of Contracts			Value at Trade Date			Value at June 30, 2014			Unrealized Appreciation/(Depreciation)
Gold 100 Oz.		BNP Paribas Securities Services		August 2014		30		$	3,779,730		$	3,966,000		$	186,270
Japanese Yen Currency		BNP Paribas Securities Services		September 2014		(32	)		(3,906,568	)		(3,952,000	)		(45,432	)
														$	140,838

See accompanying Notes to Financial Statements.

TABLE OF CONTENTS

ADVISORSHARES GLOBAL ECHO ETF
Schedule of Investments

June 30, 2014


Investments	Shares		Value
COMMON STOCKS — 54.4%
Auto Parts & Equipment — 3.0%
Johnson Controls, Inc.		3,697	$	184,591
Tenneco, Inc.*		1,329		87,316
Total Auto Parts & Equipment				271,907
Banks — 2.3%
Boston Private Financial Holdings, Inc.		7,486		100,612
City National Corp.		774		58,638
Tompkins Financial Corp.		1,169		56,322
Total Banks				215,572
Beverages — 0.4%
Reed's, Inc.*		6,773		35,423
Biotechnology — 1.7%
Illumina, Inc.*		664		118,551
Isis Pharmaceuticals, Inc.*^(a)		1,201		41,374
Total Biotechnology				159,925
Building Materials — 0.9%
TOTO Ltd. (Japan)^(b)		2,997		80,410
Chemicals — 2.3%
Novozymes A/S (Denmark)^(a)^(b)		4,266		214,537
Commercial Services — 2.2%
Automatic Data Processing, Inc.		1,046		82,927
MasterCard, Inc., Class A		1,070		78,613
Where Food Comes From, Inc.*^(a)		16,616		38,050
Total Commercial Services				199,590
Computers — 3.6%
Apple, Inc.		1,869		173,686
EMC Corp.		2,625		69,142
Stratasys Ltd. (Israel)*^(a)		420		47,725
Teradata Corp.*		1,111		44,662
Total Computers				335,215

See accompanying Notes to Financial Statements.

TABLE OF CONTENTS

ADVISORSHARES GLOBAL ECHO ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Shares		Value
Cosmetics/Personal Care — 0.7%
Procter & Gamble Co. (The)		806	$	63,344
Diversified Financial Services — 2.3%
Hannon Armstrong Sustainable Infrastructure Capital, Inc.		4,532		64,989
MarketAxess Holdings, Inc.		525		28,381
Outerwall, Inc.*^(a)		1,206		71,576
WageWorks, Inc.*		918		44,257
Total Diversified Financial Services				209,203
Electronics — 1.1%
Thermo Fisher Scientific, Inc.		829		97,822
Environmental Control — 1.5%
Clean Harbors, Inc.*		1,296		83,268
Energy Recovery, Inc.*^(a)		2,915		14,342
Tomra Systems ASA (Norway)^(b)		4,491		36,961
Total Environmental Control				134,571
Food — 4.5%
Boulder Brands, Inc.*		2,798		39,676
Nestle SA (Switzerland)^(b)		497		38,602
Sprouts Farmers Market, Inc.*^(a)		1,713		56,049
SunOpta, Inc.*		3,002		42,268
United Natural Foods, Inc.*		2,157		140,421
WhiteWave Foods Co. (The)*		3,147		101,868
Total Food				418,884
Healthcare – Products — 0.9%
Covidien PLC (Ireland)		923		83,236
Healthcare – Services — 0.7%
Laboratory Corp. of America Holdings*		600		61,440
Internet — 2.4%
eBay, Inc.*		1,019		51,011
F5 Networks, Inc.*		591		65,861
Google, Inc., Class C*		86		49,474

See accompanying Notes to Financial Statements.

TABLE OF CONTENTS

ADVISORSHARES GLOBAL ECHO ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Shares		Value
Internet — 2.4% (continued)
Google, Inc., Class A*		86	$	50,282
Total Internet				216,628
Machinery – Diversified — 3.1%
Rockwell Automation, Inc.		495		61,954
Tennant Co.		845		64,491
Xylem, Inc.		4,066		158,899
Total Machinery – Diversified				285,344
Miscellaneous Manufacturing — 1.2%
AptarGroup, Inc.		1,094		73,309
Pure Technologies Ltd. (Canada)		5,615		37,733
Total Miscellaneous Manufacturing				111,042
Office Furnishings — 1.6%
Interface, Inc.		4,204		79,204
Steelcase, Inc., Class A		4,494		67,994
Total Office Furnishings				147,198
Pharmaceuticals — 3.7%
GlaxoSmithKline PLC (United Kingdom)^(b)		1,608		85,996
Novartis AG (Switzerland)^(b)		1,119		101,303
Perrigo Co. PLC		504		73,463
Teva Pharmaceutical Industries Ltd. (Israel)^(b)		1,596		83,662
Total Pharmaceuticals				344,424
Real Estate — 0.6%
Jones Lang LaSalle, Inc.		468		59,151
Real Estate Investment Trusts — 1.9%
Prologis, Inc.		1,977		81,235
Vornado Realty Trust		898		95,843
Total Real Estate Investment Trusts				177,078

See accompanying Notes to Financial Statements.

TABLE OF CONTENTS

ADVISORSHARES GLOBAL ECHO ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Shares		Value
Retail — 1.3%
CVS Caremark Corp.		1,249	$	94,137
Target Corp.		450		26,078
Total Retail				120,215
Semiconductors — 3.4%
Cree, Inc.*		914		45,654
First Solar, Inc.*		625		44,413
IPG Photonics Corp.*^(a)		933		64,190
NXP Semiconductor NV (Netherlands)*		874		57,841
SunEdison, Inc.*		2,535		57,291
Xilinx, Inc.		850		40,214
Total Semiconductors				309,603
Software — 1.5%
Adobe Systems, Inc.*		1,274		92,187
Fiserv, Inc.*		705		42,525
Total Software				134,712
Telecommunications — 1.4%
Corning, Inc.		2,691		59,068
Sierra Wireless, Inc. (Canada)*^(a)		1,200		24,204
Telenor ASA (Norway)^(b)		686		46,922
Total Telecommunications				130,194
Transportation — 2.6%
Canadian National Railway Co. (Canada)		2,258		146,815
Union Pacific Corp.		964		96,159
Total Transportation				242,974
Water — 1.6%
American Water Works Co., Inc.		1,614		79,812
Severn Trent PLC (United Kingdom)^(a)^(b)		2,186		72,228
Total Water				152,040
Total Common Stocks (Cost $4,215,342)				5,011,682

See accompanying Notes to Financial Statements.

TABLE OF CONTENTS

ADVISORSHARES GLOBAL ECHO ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Shares/ Principal		Value
ASSET BACKED SECURITIES — 15.0%
SBA, 4.09%, 07/25/38^@	$	142,979	$	164,123
SBA, 4.15%, 02/25/39^@		198,848		230,581
SBAP, Class 1, Series 2009-20H, 4.45%, 08/01/29		203,163		221,194
SBAP, Class 1, Series 2010-20A, 4.38%, 01/01/30		161,451		173,991
SBAP, Class 1, Series 2010-20B, 4.14%, 02/01/30		320,919		340,526
U.S. SBA, Class 1, Series 2010-10A, 4.11%, 03/10/20		232,844		249,229
Total Asset Backed Securities (Cost $1,393,657)				1,379,644
COMMERCIAL MORTGAGE BACKED SECURITY — 2.8%
Government National Mortgage Association, Class AC, Series 2011-109, 3.25%, 04/16/43 (Cost $266,977)		250,000		257,784
MUNICIPAL BOND — 3.3%
Allegheny County Residential Finance Authority, 0.14%, 11/01/35^@ (Cost $300,000)		300,000		300,000
EXCHANGE TRADED FUNDS — 22.4%
Debt Fund — 11.9%
AdvisorShares Sage Core Reserves ETF^†		11,005		1,098,409
Equity Fund — 10.5%
AdvisorShares Ranger Equity Bear ETF*^†		1,000		11,780
First Trust Global Wind Energy ETF		2,200		29,348
Global X Lithium ETF		6,900		93,841
Guggenheim S&P Global Water Index ETF		2,300		69,299
iShares MSCI KLD 400 Social ETF^(a)		5,300		387,748
PowerShares Cleantech Portfolio		2,400		78,888
PowerShares Global Clean Energy Portfolio^(a)		11,500		160,310
PowerShares Water Resources Portfolio		3,700		98,383
PowerShares Wilderhill Clean Energy Portfolio^(a)		5,900		40,651
Total Equity Fund				970,248
Total Exchange Traded Funds (Cost $1,982,249)				2,068,657

See accompanying Notes to Financial Statements.

TABLE OF CONTENTS

ADVISORSHARES GLOBAL ECHO ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Shares		Value
MONEY MARKET FUNDS — 2.4%
Federated Government Obligation Fund, Class IS, 0.01%^(c)		61,418	$	61,418
Fidelity Institutional Money Market Government Portfolio – Class I, 0.01%^(c)		55,667		55,667
Fidelity Institutional Money Market Portfolio – Institutional Class, 0.09%^(c)		107,238		107,238
Total Money Market Funds (Cost $224,323)				224,323
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 6.1%
BNY Mellon Securities Lending Overnight Fund, 0.11%^(d) (Cost $566,100)		566,100		566,100
Total Investments — 106.4% (Cost $8,948,648)				9,808,190
Liabilities in Excess of Other Assets — (6.4%)				(592,075	)
Net Assets — 100.0%			$	9,216,115

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 June 30, 2014.

†

Affiliated Company

(a)

All or a portion of security is on loan; the aggregate market value of the securities on loan is $553,290; the aggregate market value of the collateral held by the fund is $566,100.

(b)

American Depositary Receipt.

(c)

Rate shown reflects the 7-day yield as of June 30, 2014.

(d)

Rate shown reflects the 1-day yield as of June 30, 2014.

See accompanying Notes to Financial Statements.

TABLE OF CONTENTS

ADVISORSHARES GLOBAL ECHO ETF
Schedule of Investments (continued)

June 30, 2014

SUMMARY OF SCHEDULE OF INVESTMENTS


	% of Net Assets
Asset Backed Securities		15.0	%
Auto Parts & Equipment		3.0
Banks		2.3
Beverages		0.4
Biotechnology		1.7
Building Materials		0.9
Chemicals		2.3
Commercial Mortgage Backed Security		2.8
Commercial Services		2.2
Computers		3.6
Cosmetics/Personal Care		0.7
Debt Fund		11.9
Diversified Financial Services		2.3
Electronics		1.1
Environmental Control		1.5
Equity Fund		10.5
Food		4.5
Healthcare – Products		0.9
Healthcare – Services		0.7
Internet		2.4
Machinery – Diversified		3.1
Miscellaneous Manufacturing		1.2
Money Market Funds		8.5
Municipal Bond		3.3
Office Furnishings		1.6
Pharmaceuticals		3.7
Real Estate		0.6
Real Estate Investment Trusts		1.9
Retail		1.3
Semiconductors		3.4
Software		1.5
Telecommunications		1.4
Transportation		2.6
Water		1.6
Total Investments		106.4
Liabilities in Excess of Other Assets		(6.4	)
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

TABLE OF CONTENTS

ADVISORSHARES INTERNATIONAL GOLD ETF
Schedule of Investments

June 30, 2014


Investments	Shares		Value
EXCHANGE TRADED FUNDS — 96.7%
Commodity Fund — 96.7%
AdvisorShares Gartman Gold/British Pound ETF*^†		26,100	$	327,291
AdvisorShares Gartman Gold/Euro ETF*^†		26,100		339,300
AdvisorShares Gartman Gold/Yen ETF*^†		26,100		341,135
PowerShares DB Gold Fund*		5,350		238,075
Total Exchange Traded Funds (Cost $1,233,459)				1,245,801
MONEY MARKET FUND — 2.0%
BlackRock Liquidity Funds TempFund Portfolio – Institutional Class, 0.03%^(a) (Cost $25,673)		25,673		25,673
Total Investments — 98.7% (Cost $1,259,132)				1,271,474
Other Assets in Excess of Liabilities — 1.3%				16,361
Net Assets — 100.0%			$	1,287,835

ETF — Exchange Traded Fund

Non-income producing security

†

Affiliated Company

(a)

Rate shown reflects the 7-day yield as of June 30, 2014.

See accompanying Notes to Financial Statements.

TABLE OF CONTENTS

ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments

June 30, 2014


Investments	Shares		Value
COMMON STOCKS — 98.5%
Advertising — 0.3%
Interpublic Group of Cos., Inc. (The)		2,561	$	49,965
Omnicom Group, Inc.		319		22,719
Total Advertising				72,684
Aerospace/Defense — 0.9%
Boeing Co. (The)		238		30,281
General Dynamics Corp.		197		22,960
L-3 Communications Holdings, Inc.		107		12,920
Lockheed Martin Corp.		152		24,431
Northrop Grumman Corp.		208		24,883
Raytheon Co.		423		39,022
Rockwell Collins, Inc.		329		25,708
United Technologies Corp.		410		47,335
Total Aerospace/Defense				227,540
Agriculture — 0.7%
Altria Group, Inc.		582		24,409
Archer-Daniels-Midland Co.		2,061		90,911
Lorillard, Inc.		447		27,253
Philip Morris International, Inc.		212		17,874
Reynolds American, Inc.		352		21,243
Total Agriculture				181,690
Airlines — 0.7%
Delta Air Lines, Inc.		794		30,744
Southwest Airlines Co.		5,596		150,308
Total Airlines				181,052
Apparel — 0.7%
NIKE, Inc., Class B		437		33,889
Ralph Lauren Corp.		464		74,560
Under Armour, Inc., Class A*		456		27,128
VF Corp.		714		44,982
Total Apparel				180,559

See accompanying Notes to Financial Statements.

TABLE OF CONTENTS

ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Shares		Value
Auto Manufacturers — 1.3%
Ford Motor Co.		8,130	$	140,161
General Motors Co.		4,183		151,843
PACCAR, Inc.		515		32,358
Total Auto Manufacturers				324,362
Auto Parts & Equipment — 1.6%
BorgWarner, Inc.		1,747		113,887
Goodyear Tire & Rubber Co. (The)		5,308		147,456
Johnson Controls, Inc.		2,569		128,270
Total Auto Parts & Equipment				389,613
Banks — 4.2%
Bank of America Corp.		1,191		18,306
Bank of New York Mellon Corp. (The)		1,964		73,611
BB&T Corp.		1,221		48,144
Capital One Financial Corp.		337		27,836
Citigroup, Inc.		2,264		106,634
Comerica, Inc.		351		17,606
Fifth Third Bancorp		967		20,645
Goldman Sachs Group, Inc. (The)		386		64,632
Huntington Bancshares, Inc.		3,244		30,948
JPMorgan Chase & Co.		1,684		97,032
KeyCorp		1,221		17,497
M&T Bank Corp.		241		29,896
Morgan Stanley		4,670		150,981
Northern Trust Corp.		621		39,874
PNC Financial Services Group, Inc. (The)		264		23,509
Regions Financial Corp.		2,892		30,713
State Street Corp.		900		60,534
SunTrust Banks, Inc.		1,027		41,142
US Bancorp		534		23,133
Wells Fargo & Co.		1,028		54,032
Zions Bancorporation		2,392		70,492
Total Banks				1,047,197

See accompanying Notes to Financial Statements.

TABLE OF CONTENTS

ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Shares		Value
Beverages — 1.3%
Brown-Forman Corp., Class B		167	$	15,726
Coca-Cola Co. (The)		321		13,598
Coca-Cola Enterprises, Inc.		991		47,350
Constellation Brands, Inc., Class A*		909		80,110
Dr Pepper Snapple Group, Inc.		365		21,382
Keurig Green Mountain, Inc.		650		80,996
Molson Coors Brewing Co., Class B		229		16,983
Monster Beverage Corp.*		460		32,674
PepsiCo, Inc.		189		16,885
Total Beverages				325,704
Biotechnology — 2.4%
Alexion Pharmaceuticals, Inc.*		526		82,187
Amgen, Inc.		281		33,262
Biogen Idec, Inc.*		328		103,422
Celgene Corp.*		1,804		154,927
Gilead Sciences, Inc.*		1,848		153,218
Regeneron Pharmaceuticals, Inc.*		199		56,212
Total Biotechnology				583,228
Building Materials — 0.5%
Masco Corp.		5,772		128,138
Chemicals — 1.9%
Air Products & Chemicals, Inc.		207		26,624
Airgas, Inc.		289		31,475
CF Industries Holdings, Inc.		157		37,763
Dow Chemical Co. (The)		430		22,128
E.I. du Pont de Nemours & Co.		368		24,082
Eastman Chemical Co.		765		66,823
Ecolab, Inc.		292		32,511
FMC Corp.		594		42,287
International Flavors & Fragrances, Inc.		206		21,482
Monsanto Co.		401		50,021
PPG Industries, Inc.		115		24,167
Praxair, Inc.		231		30,686

See accompanying Notes to Financial Statements.

TABLE OF CONTENTS

ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Shares		Value
Chemicals — 1.9% (continued)
Sherwin-Williams Co. (The)		156	$	32,278
Sigma-Aldrich Corp.		158		16,034
Total Chemicals				458,361
Coal — 0.0%**
CONSOL Energy, Inc.		203		9,352
Commercial Services — 2.7%
ADT Corp. (The)		868		30,328
Alliance Data Systems Corp.*		304		85,500
Automatic Data Processing, Inc.		252		19,978
Cintas Corp.		457		29,038
Equifax, Inc.		410		29,741
Iron Mountain, Inc.		509		18,044
MasterCard, Inc., Class A		848		62,303
McGraw Hill Financial, Inc.		879		72,983
Moody’s Corp.		568		49,791
Quanta Services, Inc.*		1,436		49,657
Robert Half International, Inc.		1,566		74,761
Total System Services, Inc.		1,580		49,628
Western Union Co. (The)		5,593		96,983
Total Commercial Services				668,735
Computers — 3.5%
Apple, Inc.		1,211		112,538
Cognizant Technology Solutions Corp., Class A*		1,993		97,478
Computer Sciences Corp.		468		29,578
EMC Corp.		3,740		98,512
Hewlett-Packard Co.		693		23,340
International Business Machines Corp.		624		113,112
NetApp, Inc.		3,199		116,827
SanDisk Corp.		1,603		167,401
Teradata Corp.*		1,490		59,898
Western Digital Corp.		385		35,536
Total Computers				854,220

See accompanying Notes to Financial Statements.

TABLE OF CONTENTS

ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Shares		Value
Cosmetics/Personal Care — 0.4%
Avon Products, Inc.		2,028	$	29,629
Colgate-Palmolive Co.		250		17,045
Estee Lauder Cos., Inc. (The), Class A		320		23,763
Procter & Gamble Co. (The)		234		18,390
Total Cosmetics/Personal Care				88,827
Distribution/Wholesale — 0.9%
Fastenal Co.		657		32,515
Fossil Group, Inc.*		1,163		121,557
Genuine Parts Co.		200		17,560
W.W. Grainger, Inc.		189		48,057
Total Distribution/Wholesale				219,689
Diversified Financial Services — 5.8%
American Express Co.		632		59,958
Ameriprise Financial, Inc.		1,159		139,080
BlackRock, Inc.		253		80,859
Charles Schwab Corp. (The)		2,959		79,686
CME Group, Inc.		543		38,526
Discover Financial Services		1,995		123,650
ETRADE Financial Corp.		5,858		124,541
Franklin Resources, Inc.		2,281		131,933
Intercontinental Exchange, Inc.		539		101,817
Invesco Ltd.		3,056		115,364
Legg Mason, Inc.		2,970		152,391
NASDAQ OMX Group, Inc. (The)		3,311		127,871
T. Rowe Price Group, Inc.		904		76,306
Visa, Inc., Class A		361		76,066
Total Diversified Financial Services				1,428,048

See accompanying Notes to Financial Statements.

TABLE OF CONTENTS

ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Shares		Value
Electric — 1.2%
AES Corp. (The)		2,416	$	37,569
Ameren Corp.		503		20,563
American Electric Power Co., Inc.		204		11,377
CMS Energy Corp.		503		15,668
Consolidated Edison, Inc.		142		8,199
Dominion Resources, Inc.		151		10,800
DTE Energy Co.		176		13,705
Duke Energy Corp.		139		10,312
Edison International		186		10,808
Integrys Energy Group, Inc.		207		14,724
NextEra Energy, Inc.		143		14,655
Northeast Utilities		335		15,835
Pepco Holdings, Inc.		418		11,487
PG&E Corp.		323		15,510
Pinnacle West Capital Corp.		246		14,229
Public Service Enterprise Group, Inc.		342		13,950
SCANA Corp.		249		13,399
Southern Co. (The)		214		9,711
TECO Energy, Inc.		512		9,462
Wisconsin Energy Corp.		229		10,745
Xcel Energy, Inc.		405		13,053
Total Electric				295,761
Electrical Components & Equipment — 0.3%
AMETEK, Inc.		610		31,891
Emerson Electric Co.		481		31,919
Total Electrical Components & Equipment				63,810
Electronics — 1.3%
Agilent Technologies, Inc.		603		34,637
Amphenol Corp., Class A		268		25,819
FLIR Systems, Inc.		731		25,388
Honeywell International, Inc.		377		35,042
Jabil Circuit, Inc.		1,189		24,850
PerkinElmer, Inc.		1,280		59,955

See accompanying Notes to Financial Statements.

TABLE OF CONTENTS

ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Shares		Value
Electronics — 1.3% (continued)
Thermo Fisher Scientific, Inc.		707	$	83,426
Waters Corp.*		303		31,645
Total Electronics				320,762
Engineering & Construction — 0.7%
Fluor Corp.		854		65,673
Jacobs Engineering Group, Inc.*		1,834		97,715
Total Engineering & Construction				163,388
Entertainment — 0.2%
International Game Technology		3,872		61,604
Environmental Control — 0.3%
Republic Services, Inc.		596		22,630
Stericycle, Inc.*		275		32,566
Waste Management, Inc.		365		16,326
Total Environmental Control				71,522
Food — 1.4%
Campbell Soup Co.		216		9,895
ConAgra Foods, Inc.		891		26,445
General Mills, Inc.		330		17,338
Hershey Co. (The)		189		18,403
JM Smucker Co. (The)		199		21,207
Kellogg Co.		247		16,228
Kraft Foods Group, Inc.		387		23,201
Kroger Co. (The)		1,247		61,639
McCormick & Co., Inc.		204		14,604
Mondelez International, Inc., Class A		894		33,623
Safeway, Inc.		416		14,285
Sysco Corp.		466		17,452
Tyson Foods, Inc., Class A		1,579		59,276
Whole Foods Market, Inc.		560		21,633
Total Food				355,229

See accompanying Notes to Financial Statements.

TABLE OF CONTENTS

ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Shares		Value
Forest Products & Paper — 0.7%
International Paper Co.		2,946	$	148,685
MeadWestvaco Corp.		594		26,290
Total Forest Products & Paper				174,975
Gas — 0.2%
AGL Resources, Inc.		239		13,152
CenterPoint Energy, Inc.		414		10,574
NiSource, Inc.		421		16,562
Sempra Energy		120		12,565
Total Gas				52,853
Hand/Machine Tools — 0.3%
Snap-On, Inc.		334		39,586
Stanley Black & Decker, Inc.		314		27,575
Total Hand/Machine Tools				67,161
Healthcare – Products — 1.9%
Baxter International, Inc.		399		28,848
Becton Dickinson and Co.		224		26,499
Boston Scientific Corp.*		1,413		18,044
C.R. Bard, Inc.		405		57,919
CareFusion Corp.*		1,492		66,170
DENTSPLY International, Inc.		621		29,404
Edwards Lifesciences Corp.*		288		24,722
Hospira, Inc.*		526		27,021
Intuitive Surgical, Inc.*		44		18,119
Medtronic, Inc.		325		20,722
Patterson Cos., Inc.		722		28,526
St. Jude Medical, Inc.		453		31,370
Stryker Corp.		315		26,561
Varian Medical Systems, Inc.*		391		32,508
Zimmer Holdings, Inc.		287		29,808
Total Healthcare – Products				466,241

See accompanying Notes to Financial Statements.

TABLE OF CONTENTS

ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Shares		Value
Healthcare – Services — 2.3%
Aetna, Inc.		1,410	$	114,323
Cigna Corp.		1,116		102,639
DaVita HealthCare Partners, Inc.*		425		30,736
Humana, Inc.		313		39,976
Laboratory Corp. of America Holdings*		431		44,134
Quest Diagnostics, Inc.		1,250		73,363
Tenet Healthcare Corp.*		442		20,747
UnitedHealth Group, Inc.		756		61,803
WellPoint, Inc.		767		82,537
Total Healthcare – Services				570,258
Home Builders — 0.7%
D.R. Horton, Inc.		4,977		122,334
Lennar Corp., Class A		317		13,308
PulteGroup, Inc.		1,774		35,764
Total Home Builders				171,406
Home Furnishings — 1.0%
Harman International Industries, Inc.		1,178		126,552
Whirlpool Corp.		913		127,108
Total Home Furnishings				253,660
Household Products/Wares — 0.2%
Avery Dennison Corp.		560		28,700
Clorox Co. (The)		169		15,447
Kimberly-Clark Corp.		148		16,460
Total Household Products/Wares				60,607
Housewares — 0.1%
Newell Rubbermaid, Inc.		1,065		33,004
Insurance — 5.1%
Aflac, Inc.		1,026		63,869
Allstate Corp. (The)		1,314		77,158
American International Group, Inc.		1,880		102,610
Assurant, Inc.		366		23,991
Berkshire Hathaway, Inc., Class B*		153		19,364

See accompanying Notes to Financial Statements.

TABLE OF CONTENTS

ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Shares		Value
Insurance — 5.1% (continued)
Chubb Corp. (The)		768	$	70,787
Genworth Financial, Inc., Class A*		1,006		17,504
Hartford Financial Services Group, Inc. (The)		1,878		67,251
Lincoln National Corp.		2,499		128,549
Marsh & McLennan Cos., Inc.		584		30,263
MetLife, Inc.		1,844		102,453
Principal Financial Group, Inc.		2,666		134,580
Progressive Corp. (The)		1,417		35,935
Prudential Financial, Inc.		1,605		142,476
Torchmark Corp.		674		55,214
Travelers Cos., Inc. (The)		907		85,321
Unum Group		3,040		105,670
Total Insurance				1,262,995
Internet — 2.9%
Amazon.com, Inc.*		27		8,769
eBay, Inc.*		1,251		62,625
Expedia, Inc.		940		74,034
F5 Networks, Inc.*		753		83,914
Facebook, Inc., Class A*		940		63,253
Google, Inc., Class A*		163		95,301
Netflix, Inc.*		51		22,471
Priceline Group, Inc. (The)*		92		110,676
Symantec Corp.		2,624		60,090
TripAdvisor, Inc.*		436		47,376
VeriSign, Inc.*		1,304		63,648
Yahoo!, Inc.*		563		19,778
Total Internet				711,935
Iron/Steel — 0.2%
Allegheny Technologies, Inc.		280		12,628
Nucor Corp.		283		13,938
United States Steel Corp.		450		11,718
Total Iron/Steel				38,284

See accompanying Notes to Financial Statements.

TABLE OF CONTENTS

ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Shares		Value
Leisure Time — 0.5%
Carnival Corp. (Panama)		1,834	$	69,050
Harley-Davidson, Inc.		900		62,865
Total Leisure Time				131,915
Lodging — 0.6%
Marriott International, Inc., Class A		397		25,448
Starwood Hotels & Resorts Worldwide, Inc.		149		12,042
Wyndham Worldwide Corp.		431		32,635
Wynn Resorts Ltd.		334		69,325
Total Lodging				139,450
Machinery – Construction & Mining — 0.1%
Caterpillar, Inc.		180		19,561
Machinery – Diversified — 1.2%
Cummins, Inc.		507		78,225
Deere & Co.		392		35,496
Flowserve Corp.		798		59,331
Rockwell Automation, Inc.		393		49,188
Roper Industries, Inc.		249		36,356
Xylem, Inc.		922		36,032
Total Machinery – Diversified				294,628
Media — 4.0%
Cablevision Systems Corp., Class A		1,954		34,488
CBS Corp., Class B		1,669		103,712
Comcast Corp., Class A		1,196		64,201
DIRECTV*		1,421		120,799
Discovery Communications, Inc., Class A*		957		71,086
Gannett Co., Inc.		3,841		120,262
News Corp., Class A*		459		8,235
Scripps Networks Interactive, Inc., Class A		710		57,609
Time Warner Cable, Inc.		237		34,910
Time Warner, Inc.		1,081		75,940
Time, Inc.*		135		3,270
Twenty-First Century Fox, Inc., Class A		3,894		136,874

See accompanying Notes to Financial Statements.

TABLE OF CONTENTS

ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Shares		Value
Media — 4.0% (continued)
Viacom, Inc., Class B		1,193	$	103,469
Walt Disney Co. (The)		693		59,418
Total Media				994,273
Metal Fabricate/Hardware — 0.3%
Precision Castparts Corp.		260		65,624
Mining — 0.7%
Alcoa, Inc.		1,662		24,747
Freeport-McMoRan Copper & Gold, Inc.		4,154		151,621
Total Mining				176,368
Miscellaneous Manufacturing — 1.8%
3M Co.		236		33,805
Danaher Corp.		708		55,741
Dover Corp.		552		50,204
General Electric Co.		1,047		27,515
Illinois Tool Works, Inc.		270		23,641
Leggett & Platt, Inc.		2,137		73,256
Pall Corp.		310		26,471
Parker Hannifin Corp.		511		64,248
Textron, Inc.		2,198		84,162
Total Miscellaneous Manufacturing				439,043
Office/Business Equipment — 0.3%
Pitney Bowes, Inc.		1,254		34,636
Xerox Corp.		3,544		44,087
Total Office/Business Equipment				78,723
Oil & Gas — 7.8%
Anadarko Petroleum Corp.		130		14,231
Apache Corp.		158		15,898
Cabot Oil & Gas Corp.		3,075		104,981
Chesapeake Energy Corp.		4,723		146,791
Chevron Corp.		188		24,543
ConocoPhillips		440		37,721
Denbury Resources, Inc.		3,732		68,893

See accompanying Notes to Financial Statements.

TABLE OF CONTENTS

ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Shares		Value
Oil & Gas — 7.8% (continued)
Devon Energy Corp.		442	$	35,095
Diamond Offshore Drilling, Inc.^(a)		1,706		84,669
EOG Resources, Inc.		1,093		127,728
EQT Corp.		936		100,058
Exxon Mobil Corp.		108		10,874
Helmerich & Payne, Inc.		1,054		122,380
Hess Corp.		162		16,020
Marathon Oil Corp.		1,911		76,287
Marathon Petroleum Corp.		1,416		110,547
Murphy Oil Corp.		1,803		119,863
Newfield Exploration Co.*		2,686		118,721
Noble Energy, Inc.		258		19,985
Occidental Petroleum Corp.		161		16,523
Phillips 66		627		50,430
Pioneer Natural Resources Co.		111		25,509
QEP Resources, Inc.		836		28,842
Range Resources Corp.		292		25,389
Rowan Cos. PLC, Class A (United Kingdom)		4,543		145,058
Southwestern Energy Co.*		734		33,390
Tesoro Corp.		2,631		154,361
Valero Energy Corp.		2,120		106,212
Total Oil & Gas				1,940,999
Oil & Gas Services — 3.2%
Baker Hughes, Inc.		1,987		147,932
Cameron International Corp.*		1,924		130,274
FMC Technologies, Inc.*		2,077		126,842
Halliburton Co.		2,143		152,175
National Oilwell Varco, Inc.		999		82,268
NOW, Inc.*		249		9,016
Schlumberger Ltd.		1,195		140,950
Total Oil & Gas Services				789,457
Packaging & Containers — 1.1%
Ball Corp.		1,335		83,678

See accompanying Notes to Financial Statements.

TABLE OF CONTENTS

ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Shares		Value
Packaging & Containers — 1.1% (continued)
Bemis Co., Inc.		538	$	21,875
Owens-Illinois, Inc.*		3,208		111,125
Sealed Air Corp.		1,515		51,768
Total Packaging & Containers				268,446
Pharmaceuticals — 3.7%
Abbott Laboratories		1,200		49,080
AbbVie, Inc.		448		25,285
Actavis PLC*		677		151,005
Allergan, Inc.		110		18,614
AmerisourceBergen Corp.		1,305		94,821
Bristol-Myers Squibb Co.		356		17,270
Cardinal Health, Inc.		526		36,063
Eli Lilly & Co.		191		11,874
Express Scripts Holding Co.*		1,675		116,128
Forest Laboratories, Inc.*		1,401		138,699
Johnson & Johnson		171		17,890
McKesson Corp.		522		97,202
Mead Johnson Nutrition Co.		200		18,634
Merck & Co., Inc.		162		9,372
Mylan, Inc.*		1,817		93,684
Pfizer, Inc.		441		13,089
Total Pharmaceuticals				908,710
Pipelines — 0.3%
Kinder Morgan, Inc.		477		17,296
ONEOK, Inc.		319		21,718
Spectra Energy Corp.		195		8,284
Williams Cos., Inc. (The)		635		36,963
Total Pipelines				84,261
Real Estate — 0.3%
CBRE Group, Inc., Class A*		2,117		67,829
Real Estate Investment Trust — 0.7%
American Tower Corp.		322		28,974
AvalonBay Communities, Inc.		88		12,513

See accompanying Notes to Financial Statements.

TABLE OF CONTENTS

ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Shares		Value
Real Estate Investment Trust — 0.7% (continued)
Boston Properties, Inc.		64	$	7,563
Crown Castle International Corp.		118		8,763
Equity Residential		118		7,434
Essex Property Trust, Inc.		42		7,766
General Growth Properties, Inc.		321		7,563
HCP, Inc.		194		8,028
Host Hotels & Resorts, Inc.		433		9,530
Kimco Realty Corp.		315		7,239
Plum Creek Timber Co., Inc.		273		12,312
Public Storage		49		8,396
Simon Property Group, Inc.		50		8,314
Ventas, Inc.		128		8,205
Vornado Realty Trust		93		9,926
Washington Prime Group, Inc.*		25		468
Weyerhaeuser Co.		348		11,515
Total Real Estate Investment Trust				164,509
Retail — 9.7%
AutoNation, Inc.*		2,251		134,340
AutoZone, Inc.*		198		106,176
Bed Bath & Beyond, Inc.*		1,315		75,455
Best Buy Co., Inc.		4,947		153,406
CarMax, Inc.*		1,527		79,419
Chipotle Mexican Grill, Inc.*		51		30,218
Coach, Inc.		994		33,985
Costco Wholesale Corp.		184		21,189
CVS Caremark Corp.		922		69,491
Darden Restaurants, Inc.		471		21,793
Dollar General Corp.*		1,559		89,424
Dollar Tree, Inc.*		2,171		118,233
Family Dollar Stores, Inc.		354		23,414
GameStop Corp., Class A		3,476		140,674
Gap, Inc. (The)		1,992		82,807
Home Depot, Inc. (The)		1,229		99,500
Kohl’s Corp.		1,281		67,483

See accompanying Notes to Financial Statements.

TABLE OF CONTENTS

ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Shares		Value
Retail — 9.7% (continued)
L Brands, Inc.		1,000	$	58,660
Lowe’s Cos., Inc.		2,100		100,779
Macy’s, Inc.		1,926		111,747
McDonald’s Corp.		211		21,256
Nordstrom, Inc.		713		48,434
O’Reilly Automotive, Inc.*		517		77,860
PetSmart, Inc.		1,311		78,398
PVH Corp.		417		48,622
Ross Stores, Inc.		901		59,583
Staples, Inc.		624		6,764
Starbucks Corp.		847		65,541
Target Corp.		683		39,580
Tiffany & Co.		438		43,910
TJX Cos., Inc. (The)		716		38,055
Tractor Supply Co.		640		38,656
Urban Outfitters, Inc.*		2,829		95,790
Walgreen Co.		725		53,744
Wal-Mart Stores, Inc.		336		25,224
Yum! Brands, Inc.		641		52,049
Total Retail				2,411,659
Savings & Loans — 0.2%
People’s United Financial, Inc.		3,630		55,067
Semiconductors — 4.3%
Altera Corp.		614		21,343
Analog Devices, Inc.		563		30,441
Applied Materials, Inc.		6,911		155,843
Broadcom Corp., Class A		2,637		97,885
Intel Corp.		1,358		41,962
KLA-Tencor Corp.		1,874		136,127
Lam Research Corp.		2,491		168,342
Linear Technology Corp.		599		28,195
Microchip Technology, Inc.^(a)		794		38,755
Micron Technology, Inc.*		4,765		157,007

See accompanying Notes to Financial Statements.

TABLE OF CONTENTS

ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Shares		Value
Semiconductors — 4.3% (continued)
NVIDIA Corp.		1,517	$	28,125
QUALCOMM, Inc.		1,173		92,902
Texas Instruments, Inc.		630		30,108
Xilinx, Inc.		706		33,401
Total Semiconductors				1,060,436
Software — 2.7%
Adobe Systems, Inc.*		256		18,524
Akamai Technologies, Inc.*		774		47,260
Autodesk, Inc.*		207		11,671
CA, Inc.		2,541		73,028
Cerner Corp.*		587		30,277
Citrix Systems, Inc.*		833		52,104
Dun & Bradstreet Corp. (The)		226		24,905
Electronic Arts, Inc.*		3,719		133,401
Fidelity National Information Services, Inc.		1,075		58,846
Fiserv, Inc.*		657		39,630
Intuit, Inc.		530		42,681
Microsoft Corp.		761		31,734
Oracle Corp.		1,490		60,390
Paychex, Inc.		456		18,951
Red Hat, Inc.*		464		25,645
salesforce.com, Inc.*		198		11,500
Total Software				680,547
Telecommunications — 1.4%
AT&T, Inc.		464		16,407
Cisco Systems, Inc.		2,173		53,999
Corning, Inc.		4,010		88,020
Frontier Communications Corp.		1,669		9,747
Harris Corp.		120		9,090
Juniper Networks, Inc.*		5,059		124,148
Motorola Solutions, Inc.		185		12,315
Verizon Communications, Inc.		708		34,642
Total Telecommunications				348,368

See accompanying Notes to Financial Statements.

TABLE OF CONTENTS

ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Shares		Value
Textiles — 0.3%
Mohawk Industries, Inc.*		606	$	83,834
Toys/Games/Hobbies — 0.3%
Hasbro, Inc.		977		51,830
Mattel, Inc.		611		23,811
Total Toys/Games/Hobbies				75,641
Transportation — 2.2%
C.H. Robinson Worldwide, Inc.		418		26,664
CSX Corp.		1,230		37,896
Expeditors International of Washington, Inc.		454		20,049
FedEx Corp.		857		129,733
Kansas City Southern		400		43,004
Norfolk Southern Corp.		598		61,612
Ryder System, Inc.		1,149		101,215
Union Pacific Corp.		910		90,772
United Parcel Service, Inc., Class B		375		38,498
Total Transportation				549,443
Total Common Stocks (Cost $18,904,426)				24,393,245
MONEY MARKET FUND — 1.6%
Fidelity Institutional Prime Money Market Portfolio – Class I, 0.01%^(b) (Cost $398,900)		398,900		398,900
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 0.2%
BNY Mellon Securities Lending Overnight Fund, 0.11%^(c) (Cost $39,915)		39,915		39,915
Total Investments — 100.3% (Cost $19,343,241)				24,832,060
Liabilities in Excess of Other Assets — (0.3)%				(76,777	)
Net Assets — 100.0%			$	24,755,283

Non-income producing security

Less than 0.05%

(a)

All or a portion of security is on loan. The aggregate market value of the securities on loan is $38,848; the aggregate market value of the collateral held by the fund is $39,915.

(b)

Rate shown reflects the 7-day yield as of June 30, 2014.

(c)

Rate shown reflects the 1-day yield as of June 30, 2014.

See accompanying Notes to Financial Statements.

TABLE OF CONTENTS

ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)

June 30, 2014

SUMMARY OF SCHEDULE OF INVESTMENTS


	% of Net Assets
Advertising		0.3	%
Aerospace/Defense		0.9
Agriculture		0.7
Airlines		0.7
Apparel		0.7
Auto Manufacturers		1.3
Auto Parts & Equipment		1.6
Banks		4.2
Beverages		1.3
Biotechnology		2.4
Building Materials		0.5
Chemicals		1.9
Coal		0.0	**
Commercial Services		2.7
Computers		3.5
Cosmetics/Personal Care		0.4
Distribution/Wholesale		0.9
Diversified Financial Services		5.8
Electric		1.2
Electrical Components & Equipment		0.3
Electronics		1.3
Engineering & Construction		0.7
Entertainment		0.2
Environmental Control		0.3
Food		1.4
Forest Products & Paper		0.7
Gas		0.2
Hand/Machine Tools		0.3
Healthcare – Products		1.9
Healthcare – Services		2.3
Home Builders		0.7
Home Furnishings		1.0
Household Products/Wares		0.2
Housewares		0.1
Insurance		5.1
Internet		2.9
Iron/Steel		0.2
Leisure Time		0.5
Lodging		0.6
Machinery – Construction & Mining		0.1
Machinery – Diversified		1.2
Media		4.0

See accompanying Notes to Financial Statements.

TABLE OF CONTENTS

ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)

June 30, 2014


	% of Net Assets
Metal Fabricate/Hardware		0.3	%
Mining		0.7
Miscellaneous Manufacturing		1.8
Office/Business Equipment		0.3
Oil & Gas		7.8
Oil & Gas Services		3.2
Packaging & Containers		1.1
Pharmaceuticals		3.7
Pipelines		0.3
Real Estate		0.3
Real Estate Investment Trust		0.7
Retail		9.7
Savings & Loans		0.2
Semiconductors		4.3
Software		2.7
Telecommunications		1.4
Textiles		0.3
Toys/Games/Hobbies		0.3
Transportation		2.2
Money Market Fund		1.8
Total Investments		100.3
Liabilities in Excess of Other Assets		(0.3	)
Net Assets		100.0	%

Less than 0.05%

See accompanying Notes to Financial Statements.

TABLE OF CONTENTS

ADVISORSHARES MADRONA GLOBAL BOND ETF
Schedule of Investments

June 30, 2014


Investments	Shares		Value
EXCHANGE TRADED FUNDS — 99.0%
Debt Fund — 99.0%
AdvisorShares Peritus High Yield ETF^†^(a)		58,388	$	3,112,080
iShares iBoxx $ Investment Grade Corporate Bond ETF^(a)		32,178		3,837,548
iShares International Treasury Bond ETF		6,817		717,557
PIMCO 1 – 5 Year U.S. TIPS Index ETF^(a)		4,453		238,547
PowerShares Build America Bond Portfolio^(a)		24,568		720,334
PowerShares Emerging Markets Sovereign Debt Portfolio		67,594		1,971,041
PowerShares Financial Preferred Portfolio		119,078		2,167,220
PowerShares Insured National Municipal Bond Portfolio^(a)		29,183		720,237
PowerShares International Corporate Bond Portfolio^(a)		31,280		959,358
PowerShares Senior Loan Portfolio^(a)		86,470		2,150,509
SPDR Barclays Convertible Securities ETF		34,437		1,739,069
SPDR DB International Government Inflation-Protected Bond ETF		11,676		724,029
Vanguard Intermediate-Term Government Bond ETF^(a)		11,215		717,760
Vanguard Long-Term Government Bond ETF		10,264		728,128
Vanguard Mortgage-Backed Securities ETF		31,918		1,679,844
Vanguard Short-Term Bond ETF		8,868		712,455
WisdomTree Emerging Markets Corporate Bond Fund^(a)		15,848		1,238,838
Total Exchange Traded Funds (Cost $23,212,515)				24,134,554
MONEY MARKET FUND — 1.2%
Fidelity Institutional Prime Money Market Portfolio – Class I, 0.01%^(b) (Cost $299,026)		299,026		299,026
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 29.9%
BNY Mellon Securities Lending Overnight Fund, 0.11%^(c) (Cost $7,299,078)		7,299,078		7,299,078
Total Investments — 130.1% (Cost $30,810,619)				31,732,658
Liabilities in Excess of Other Assets — (30.1)%				(7,349,967	)
Net Assets — 100.0%			$	24,382,691

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 $7,111,662; the aggregate market value of the collateral held by the fund is $7,299,078.

(b)

Rate shown reflects the 7-day yield as of June 30, 2014.

(c)

Rate shown reflects the 1-day yield as of June 30, 2014.

See accompanying Notes to Financial Statements.

TABLE OF CONTENTS

ADVISORSHARES MADRONA GLOBAL BOND ETF
Schedule of Investments (continued)

June 30, 2014

SUMMARY OF SCHEDULE OF INVESTMENTS


	% of Net Assets
Debt Fund		99.0	%
Money Market Fund		31.1
Total Investments		130.1
Liabilities in Excess of Other Assets		(30.1	)
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

TABLE OF CONTENTS

ADVISORSHARES MADRONA INTERNATIONAL ETF
Schedule of Investments

June 30, 2014


Investments	Shares		Value
COMMON STOCKS — 98.2%
Advertising — 0.5%
Publicis Groupe SA (France)^(a)		2,465	$	52,159
WPP PLC (United Kingdom)^(a)		401		43,705
Total Advertising				95,864
Aerospace/Defense — 1.4%
Airbus Group NV (France)^(a)		6,349		106,282
Embraer SA (Brazil)^(a)		831		30,273
Rolls-Royce Holdings PLC (United Kingdom)*^(a)		618		57,085
Safran SA (France)^(a)		4,404		71,733
Total Aerospace/Defense				265,373
Airlines — 0.2%
Ryanair Holdings PLC (Ireland)*^(a)		787		43,915
Apparel — 0.9%
Adidas AG (Germany)^(a)		1,412		71,539
Gildan Activewear, Inc. (Canada)		304		17,900
LVMH Moet Hennessy Louis Vuitton SA (France)^(a)		818		31,558
Prada SpA (Italy)^(a)^(b)		3,233		45,456
Total Apparel				166,453
Auto Manufacturers — 5.3%
Bayerische Motoren Werke AG (Germany)^(a)		384		16,243
Daimler AG (Germany)^(a)		1,048		98,103
Fiat SpA (Italy)*^(a)		13,077		129,319
Fuji Heavy Industries Ltd. (Japan)^(a)		2,535		141,149
Honda Motor Co. Ltd. (Japan)^(a)		2,931		102,556
Nissan Motor Co. Ltd. (Japan)^(a)		6,476		122,817
Porsche Automobil Holding SE (Germany)^(a)^(b)		9,947		103,349
Tata Motors Ltd. (India)^(a)		2,832		110,618
Toyota Motor Corp. (Japan)^(a)		1,150		137,609
Volkswagen AG (Germany)^(a)		1,048		54,339
Total Auto Manufacturers				1,016,102
Auto Parts & Equipment — 2.3%
Bridgestone Corp. (Japan)^(a)		5,997		104,563
Cie Generale des Etablissements Michelin (France)^(a)		4,287		102,502
DENSO Corp. (Japan)^(a)^(b)		5,526		131,961
Magna International, Inc. (Canada)		993		106,996
Total Auto Parts & Equipment				446,022

See accompanying Notes to Financial Statements.

100

TABLE OF CONTENTS

ADVISORSHARES MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Shares		Value
Banks — 12.9% (continued)
Akbank T.A.S. (Turkey)^(a)		6,815	$	50,022
Australia & New Zealand Banking Group Ltd. (Australia)^(a)		583		18,335
Banco Bilbao Vizcaya Argentaria SA (Spain)^(a)		10,099		128,964
Banco do Brasil SA (Brazil)^(a)		5,808		64,992
Banco Santander SA (Spain)^(a)^(b)		9,339		97,312
Bancolombia SA (Colombia)^(a)^(b)		697		40,287
Bank of China Ltd. (China)^(a)		8,234		91,644
Barclays PLC (United Kingdom)^(a)		4,833		70,610
BNP Paribas SA (France)^(a)		2,904		98,809
BOC Hong Kong Holdings Ltd. (Hong Kong)^(a)^(b)		1,484		85,924
China Construction Bank Corp. (China)^(a)		6,457		91,164
Commerzbank AG (Germany)*^(a)^(b)		7,499		118,184
Credit Agricole SA (France)^(a)		13,301		93,373
Credit Suisse Group AG (Switzerland)*^(a)		4,280		121,424
DBS Group Holdings Ltd. (Singapore)^(a)		1,356		73,156
HDFC Bank Ltd. (India)^(a)		1,923		90,035
HSBC Holdings PLC (United Kingdom)^(a)		1,786		90,729
ICICI Bank Ltd. (India)*^(a)		1,926		96,107
Industrial & Commercial Bank of China Ltd. (China)^(a)		7,270		91,638
Intesa Sanpaolo SpA (Italy)^(a)		5,621		103,876
Lloyds Banking Group PLC (United Kingdom)*^(a)		21,688		111,476
Malayan Banking Bhd (Malaysia)^(a)		2,912		17,763
National Australia Bank Ltd. (Australia)^(a)		870		13,468
Nordea Bank AB (Sweden)^(a)^(b)		4,669		65,459
PT Bank Mandiri Persero Tbk (Indonesia)^(a)^(b)		8,367		67,940
PT Bank Rakyat Indonesia Persero Tbk (Indonesia)^(a)		4,370		75,470
Royal Bank of Scotland Group PLC (United Kingdom)*^(a)		7,111		80,283
Societe Generale SA (France)^(a)		8,683		90,998
Sumitomo Mitsui Trust Holdings, Inc. (Japan)^(a)		14,571		65,715
Toronto-Dominion Bank (The) (Canada)^(b)		520		26,733
UBS AG (Switzerland)*^(c)		4,930		90,318
United Overseas Bank Ltd. (Singapore)^(a)		1,694		61,306
Total Banks				2,483,514
Beverages — 0.8%
Ambev SA (Brazil)^(a)		2,163		15,227
Carlsberg A/S, Class B (Denmark)^(a)^(b)		3,177		68,623
Coca-Cola Femsa SAB de CV (Mexico)^(a)^(b)		193		21,929
Fomento Economico Mexicano SAB de CV (Mexico)^(a)		304		28,470

See accompanying Notes to Financial Statements.

101

TABLE OF CONTENTS

ADVISORSHARES MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Shares		Value
Beverages — 0.8% (continued)
Heineken NV (Netherlands)^(a)		609	$	21,827
Total Beverages				156,076
Biotechnology — 0.2%
CSL Ltd. (Australia)*^(a)^(b)		1,403		44,068
Building Materials — 1.6%
Anhui Conch Cement Co. Ltd., Class H (China)^(a)^(b)		4,397		75,321
Asahi Glass Co. Ltd. (Japan)^(a)^(b)		8,171		47,310
CRH PLC (Ireland)^(a)^(b)		3,173		82,022
Holcim Ltd. (Switzerland)*^(a)		6,208		108,702
Total Building Materials				313,355
Chemicals — 4.6%
Akzo Nobel NV (Netherlands)^(a)		2,855		71,232
Asahi Kasei Corp. (Japan)^(a)		6,071		92,036
BASF SE (Germany)^(a)		412		47,998
Braskem SA (Brazil)^(a)		7,129		91,608
Givaudan SA (Switzerland)^(a)^(b)		390		12,999
Koninklijke DSM NV (Netherlands)^(a)^(b)		3,834		70,009
Linde AG (Germany)^(a)^(b)		1,188		25,233
Lonza Group AG (Switzerland)*^(a)		9,021		97,788
Methanex Corp. (Canada)		1,477		91,249
Sasol Ltd. (South Africa)^(a)		831		49,129
Shin-Etsu Chemical Co. Ltd. (Japan)^(a)		3,943		59,657
Sinopec Shanghai Petrochemical Co. Ltd. (China)^(a)^(b)		4,831		133,770
Syngenta AG (Switzerland)^(a)		552		41,290
Total Chemicals				883,998
Coal — 0.6%
Yanzhou Coal Mining Co. Ltd. (China)^(a)^(b)		15,637		117,121
Commercial Services — 0.7%
Cielo SA (Brazil)^(a)^(b)		1,115		23,097
Experian PLC (Ireland)^(a)		1,826		30,713
G4S PLC (United Kingdom)^(a)^(b)		1,438		31,895
Secom Co. Ltd. (Japan)^(a)		2,813		42,941
Total Commercial Services				128,646

See accompanying Notes to Financial Statements.

102

TABLE OF CONTENTS

ADVISORSHARES MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Shares		Value
Computers — 2.0%
Cap Gemini SA (France)^(a)		1,948	$	69,602
CGI Group, Inc., Class A (Canada)*^(b)		1,906		67,625
Infosys Ltd. (India)^(a)		859		46,188
Lenovo Group Ltd. (Hong Kong)^(a)		5,506		149,708
Wipro Ltd. (India)^(a)^(b)		4,646		55,241
Total Computers				388,364
Cosmetics/Personal Care — 0.2%
Kao Corp. (Japan)^(a)		751		29,717
Distribution/Wholesale — 2.1%
ITOCHU Corp. (Japan)^(a)		5,102		131,172
Li & Fung Ltd. (Hong Kong)^(a)		25,648		74,636
Sumitomo Corp. (Japan)^(a)		9,633		129,564
Wolseley PLC (United Kingdom)^(a)		11,098		60,706
Total Distribution/Wholesale				396,078
Diversified Financial Services — 3.2%
Aberdeen Asset Management PLC (United Kingdom)^(a)		2,339		36,255
Daiwa Securities Group, Inc. (Japan)^(a)		14,836		128,183
Deutsche Boerse AG (Germany)^(a)^(b)		6,580		50,863
ICAP PLC (United Kingdom)^(a)^(b)		4,084		52,724
Julius Baer Group Ltd. (Switzerland)*^(a)^(b)		11,951		97,879
Nomura Holdings, Inc. (Japan)^(a)		21,640		152,129
ORIX Corp. (Japan)^(a)		1,137		94,417
Total Diversified Financial Services				612,450
Electric — 1.9%
Empresa Nacional de Electricidad SA (Chile)^(a)		1,331		60,161
Enersis SA (Chile)^(a)		4,510		75,994
Huaneng Power International, Inc. (China)*^(a)^(b)		2,702		122,238
Korea Electric Power Corp. (South Korea)^(a)		6,204		114,154
Total Electric				372,547
Electrical Components & Equipment — 0.7%
Hitachi Ltd. (Japan)^(a)		1,086		79,702
Nidec Corp. (Japan)^(a)		1,678		25,824
Schneider Electric SA (France)^(a)		1,355		25,474
Total Electrical Components & Equipment				131,000

See accompanying Notes to Financial Statements.

103

TABLE OF CONTENTS

ADVISORSHARES MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Shares		Value
Electronics — 1.8%
Koninklijke Philips NV (Netherlands)^(b)^(c)		1,451	$	46,084
Kyocera Corp. (Japan)^(a)		2,240		106,579
LG Display Co. Ltd. (South Korea)*^(a)		9,103		143,554
Toshiba Corp. (Japan)^(a)		1,636		45,710
Total Electronics				341,927
Energy – Alternate Sources — 0.5%
Vestas Wind Systems A/S (Denmark)*^(a)^(b)		6,046		101,512
Engineering & Construction — 0.2%
ABB Ltd. (Switzerland)*^(a)		1,328		30,571
Vinci SA (France)^(a)		928		17,316
Total Engineering & Construction				47,887
Food — 4.9%
Aryzta AG (Switzerland)*^(a)		2,580		122,447
BRF SA (Brazil)^(a)		2,724		66,220
Carrefour SA (France)^(a)^(b)		12,213		89,155
Cencosud SA (Chile)^(a)		6,669		66,290
Cia Brasileira de Distribuicao Grupo Pao de Acucar (Brazil)^(a)		1,438		66,623
Gruma SAB de CV (Mexico)*^(a)^(b)		2,097		100,342
JBS SA (Brazil)^(a)^(b)		16,962		116,359
Koninklijke Ahold NV (Netherlands)^(a)		1,196		22,461
Marine Harvest ASA (Norway)^(a)^(b)		10,121		138,860
Metro AG (Germany)*^(a)^(b)		16,176		140,925
Seven & I Holdings Co. Ltd. (Japan)^(a)		287		24,211
Total Food				953,893
Forest Products & Paper — 1.1%
Fibria Celulose SA (Brazil)*^(a)^(b)		4,265		41,456
Klabin SA (Brazil)^(a)		2,643		26,192
Stora Enso OYJ (Finland)^(a)		6,082		59,056
Svenska Cellulosa AB SCA (Sweden)^(a)		3,131		81,375
Total Forest Products & Paper				208,079
Healthcare – Products — 0.7%
Luxottica Group SpA (Italy)^(a)		430		24,923
Olympus Corp. (Japan)^(a)		939		32,395
Smith & Nephew PLC (United Kingdom)^(a)		246		21,963
Sysmex Corp. (Japan)^(a)		3,353		62,969
Total Healthcare – Products				142,250

See accompanying Notes to Financial Statements.

104

TABLE OF CONTENTS

ADVISORSHARES MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Shares		Value
Holding Companies – Diversified — 0.8%
Hutchison Whampoa Ltd. (Hong Kong)^(a)		3,905	$	106,997
KOC Holding AS (Turkey)^(a)		1,562		37,878
Total Holding Companies – Diversified				144,875
Home Builders — 0.8%
Persimmon PLC (United Kingdom)^(a)		2,591		113,564
Sekisui House Ltd. (Japan)^(a)		3,230		44,089
Total Home Builders				157,653
Home Furnishings — 0.7%
Panasonic Corp. (Japan)^(a)		11,016		134,175
Insurance — 5.5%
Aegon NV (Netherlands)^(c)		6,816		59,776
AIA Group Ltd. (Hong Kong)^(a)		3,110		62,635
Aviva PLC (United Kingdom)^(a)		2,832		49,843
AXA SA (France)^(a)		3,485		83,570
BB Seguridade Participacoes SA (Brazil)*^(a)^(b)		5,827		85,424
ING Groep NV (Netherlands)*^(a)		6,931		97,173
Manulife Financial Corp. (Canada)		2,208		43,873
Ping An Insurance Group Co. of China Ltd. (China)^(a)		7,068		108,989
Prudential PLC (United Kingdom)^(a)		1,598		73,316
QBE Insurance Group Ltd. (Australia)^(a)^(b)		8,616		88,917
RSA Insurance Group PLC (United Kingdom)*^(a)^(b)		15,550		128,132
Sun Life Financial, Inc. (Canada)^(b)		957		35,132
Tokio Marine Holdings, Inc. (Japan)^(a)		4,113		135,935
Total Insurance				1,052,715
Internet — 1.9%
ASOS PLC (United Kingdom)*^(a)^(b)		499		25,514
Baidu, Inc. (China)*^(a)		369		68,933
NetEase, Inc. (China)^(a)		935		73,267
Qihoo 360 Technology Co. Ltd. (China)*^(a)		510		46,940
Soufun Holdings Ltd.^(a)		9,171		89,784
Tencent Holdings Ltd. (China)^(a)		2,600		39,702
Yahoo Japan Corp. (Japan)^(a)^(b)		3,141		28,897
Total Internet				373,037
Iron/Steel — 3.3%
ArcelorMittal (Luxembourg)^(b)^(c)		7,263		108,437
Cia Siderurgica Nacional SA (Brazil)^(a)^(b)		26,417		112,536
Gerdau SA (Brazil)^(a)		14,777		87,037

See accompanying Notes to Financial Statements.

105

TABLE OF CONTENTS

ADVISORSHARES MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Shares		Value
Iron/Steel — 3.3% (continued)
POSCO (South Korea)^(a)		1,096	$	81,586
Ternium SA (Luxembourg)^(a)		4,383		122,417
Vale SA (Brazil)^(a)		9,278		122,748
Total Iron/Steel				634,761
Leisure Time — 0.7%
Carnival PLC (United Kingdom)^(a)		1,950		74,003
SEGA Sammy Holdings, Inc. (Japan)^(a)		11,586		57,003
Total Leisure Time				131,006
Lodging — 2.5%
Accor SA (France)^(a)		6,535		67,964
Galaxy Entertainment Group Ltd. (Hong Kong)^(a)^(b)		1,347		107,625
Melco Crown Entertainment Ltd. (Hong Kong)^(a)		3,426		122,342
Sands China Ltd. (Cayman Islands)^(a)		1,473		111,757
Wynn Macau Ltd. (Cayman Islands)^(a)		1,781		69,976
Total Lodging				479,664
Machinery – Construction & Mining — 0.3%
Atlas Copco AB, Class A (Sweden)^(a)		1,261		36,657
Komatsu Ltd. (Japan)^(a)		753		17,492
Total Machinery – Construction & Mining				54,149
Machinery – Diversified — 0.8%
Kone OYJ, Class B (Finland)^(a)		1,574		32,818
Kubota Corp. (Japan)^(a)		1,792		127,330
Total Machinery – Diversified				160,148
Media — 0.7%
British Sky Broadcasting Group PLC (United Kingdom)^(a)		1,006		63,076
ITV PLC (United Kingdom)^(a)		2,468		75,496
Total Media				138,572
Metal Fabricate/Hardware — 0.6%
Assa Abloy AB (Sweden)^(a)		2,159		54,839
Vallourec SA (France)^(a)^(b)		7,883		70,395
Total Metal Fabricate/Hardware				125,234
Mining — 3.6%
Anglo American PLC (United Kingdom)^(a)		1,990		24,417
BHP Billiton Ltd. (Australia)^(a)^(b)		952		65,164
MMC Norilsk Nickel OJSC (Russia)^(a)		6,195		123,342
Newcrest Mining Ltd. (Australia)*^(a)^(b)		12,182		121,942

See accompanying Notes to Financial Statements.

106

TABLE OF CONTENTS

ADVISORSHARES MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Shares		Value
Mining — 3.6% (continued)
Norsk Hydro ASA (Norway)^(a)^(b)		15,764	$	85,599
Randgold Resources Ltd. (Jersey Islands)^(a)		858		72,587
Rio Tinto PLC (United Kingdom)^(a)^(b)		1,313		71,270
Silver Wheaton Corp. (Canada)^(b)		5,252		137,970
Total Mining				702,291
Miscellaneous Manufacturing — 1.1%
FUJIFILM Holdings Corp. (Japan)^(a)		784		21,889
Orkla ASA (Norway)^(a)^(b)		12,694		114,119
Siemens AG (Germany)^(a)		624		82,487
Total Miscellaneous Manufacturing				218,495
Oil & Gas — 4.4%
BG Group PLC (United Kingdom)^(a)		962		20,539
BP PLC (United Kingdom)^(a)		290		15,297
China Petroleum & Chemical Corp. (China)^(a)		275		26,133
Encana Corp. (Canada)^(b)		3,253		77,129
Enerplus Corp. (Canada)		6,159		155,084
Eni SpA (Italy)^(a)		1,378		75,652
Imperial Oil Ltd. (Canada)^(b)		1,017		53,525
PetroChina Co. Ltd. (China)^(a)		272		34,149
Petroleo Brasileiro SA (Brazil)^(a)		6,877		100,610
Royal Dutch Shell PLC (United Kingdom)^(a)		717		59,059
Surgutneftegas OAO (Russia)*^(a)		1,958		16,173
Vermilion Energy, Inc. (Canada)^(b)		1,258		87,683
YPF SA (Argentina)^(a)		3,845		125,655
Total Oil & Gas				846,688
Oil & Gas Services — 0.4%
Technip SA (France)^(a)		2,915		79,886
Pharmaceuticals — 3.4%
Astellas Pharma, Inc. (Japan)^(a)^(b)		7,764		102,019
Bayer AG (Germany)^(a)		269		38,002
Dr Reddy's Laboratories Ltd. (India)^(a)		1,030		44,444
Grifols SA (Spain)^(a)		1,867		82,241
Meda AB (Sweden)^(a)^(b)		4,659		80,508
Novo Nordisk A/S (Denmark)^(a)		902		41,663
Sanofi (France)^(a)		482		25,628
Shire PLC (Ireland)^(a)		489		115,155

See accompanying Notes to Financial Statements.

107

TABLE OF CONTENTS

ADVISORSHARES MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Shares		Value
Pharmaceuticals — 3.4% (continued)
Valeant Pharmaceuticals International, Inc. (Canada)*^(b)		952	$	120,066
Total Pharmaceuticals				649,726
Real Estate — 0.1%
Cheung Kong Holdings Ltd. (Hong Kong)^(a)		1,283		22,739
Retail — 1.8%
Cie Financiere Richemont SA (Switzerland)^(a)		4,157		43,565
Hennes & Mauritz AB (Sweden)^(a)		1,616		14,059
Kering (France)^(a)		2,898		63,205
Kingfisher PLC (United Kingdom)^(a)		3,322		40,794
Marks & Spencer Group PLC (United Kingdom)^(a)		1,901		27,603
Pandora A/S (Denmark)^(a)^(b)		6,151		117,607
Swatch Group AG (The) (Switzerland)^(a)		1,219		36,863
Total Retail				343,696
Semiconductors — 3.5%
Advanced Semiconductor Engineering, Inc. (Taiwan)^(a)		13,423		87,249
ARM Holdings PLC (United Kingdom)^(a)		1,167		52,795
ASML Holding NV (Netherlands)^(c)		1,354		126,288
Infineon Technologies AG (Germany)^(a)		9,600		119,520
Siliconware Precision Industries Co. (Taiwan)^(a)		14,162		116,270
Taiwan Semiconductor Manufacturing Co., Ltd. (Taiwan)^(a)		2,962		63,357
Tokyo Electron Ltd. (Japan)^(a)		6,695		114,418
Total Semiconductors				679,897
Software — 0.5%
Open Text Corp. (Canada)		1,220		58,487
SAP AG (Germany)^(a)		469		36,113
Total Software				94,600
Telecommunications — 7.0%
Alcatel-Lucent (France)*^(a)		19,959		71,054
BT Group PLC (United Kingdom)^(a)		536		35,178
China Telecom Corp. Ltd. (China)^(a)		994		48,656
China Unicom Ltd. (Hong Kong)^(a)^(b)		5,987		91,781
Deutsche Telekom AG (Germany)^(a)		4,411		77,281
KDDI Corp. (Japan)^(a)^(b)		6,748		102,907
MTN Group Ltd. (South Africa)^(a)		1,662		35,234
Nippon Telegraph & Telephone Corp. (Japan)^(a)		1,685		52,589
Nokia OYJ (Finland)^(a)		14,004		105,870
Orange SA (France)^(a)		7,619		120,380

See accompanying Notes to Financial Statements.

108

TABLE OF CONTENTS

ADVISORSHARES MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Shares		Value
Telecommunications — 7.0% (continued)
PT Telekomunikasi Indonesia Tbk (Indonesia)^(a)		525	$	21,872
Singapore Telecommunications Ltd. (Singapore)^(a)		617		19,133
SK Telecom Co. Ltd. (South Korea)^(a)		2,245		58,235
SoftBank Corp. (Japan)^(a)		1,659		62,378
Tele2 AB, Class B (Sweden)^(a)		14,075		81,213
Telecom Argentina SA (Argentina)^(a)		4,931		116,125
Telecom Italia SpA (Italy)*^(a)		10,709		135,148
Telefonaktiebolaget LM Ericsson (Sweden)^(a)		3,891		47,003
Telenor ASA (Norway)^(a)		939		64,228
Total Telecommunications				1,346,265
Transportation — 2.0%
Canadian Pacific Railway Ltd. (Canada)^(b)		671		121,545
Deutsche Post AG (Germany)^(a)		1,196		43,319
East Japan Railway Co. (Japan)^(a)		2,248		29,471
Royal Mail PLC (United Kingdom)*^(a)		5,222		88,200
TNT Express NV (Netherlands)^(a)		11,417		102,753
Total Transportation				385,288
Water — 0.5%
Veolia Environnement SA (France)^(a)		5,116		97,204
Total Common Stocks (Cost $17,520,719)				18,938,975
PREFERRED STOCKS — 0.7%
Auto Manufacturers — 0.3%
Volkswagen AG, 0.00% (Germany)^(a)^(d)		990		51,926
Banks — 0.4%
Royal Bank of Scotland Group PLC, 6.62% (United Kingdom)^(d)		3,325		78,802
Total Preferred Stocks (Cost $129,736)				130,728

See accompanying Notes to Financial Statements.

109

TABLE OF CONTENTS

ADVISORSHARES MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Shares		Value
MONEY MARKET FUND — 0.9%
Fidelity Institutional Prime Money Market Portfolio – Class I, 0.01%^(d) (Cost $177,147)		177,147	$	177,147
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 16.7%
BNY Mellon Securities Lending Overnight Fund, 0.11%^(e) (Cost $3,210,703)		3,210,703		3,210,703
Total Investments — 116.5% (Cost $21,038,305)				22,457,553
Liabilities in Excess of Other Assets — (16.5)%				(3,178,905	)
Net Assets — 100.0%			$	19,278,648

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 $3,119,705; the aggregate market value of the collateral held by the fund is $3,211,866. The aggregate market value of the collateral includes non-cash U.S. Treasury securities collateral having a value of $1,163.

(c)

Registered Shares.

(d)

Rate shown reflects the 7-day yield as of June 30, 2014.

(e)

Rate shown reflects the 1-day yield as of June 30, 2014.

See accompanying Notes to Financial Statements.

110

TABLE OF CONTENTS

ADVISORSHARES MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)

June 30, 2014

SUMMARY OF SCHEDULE OF INVESTMENTS


	% of Net Assets
Advertising		0.5	%
Aerospace/Defense		1.4
Airlines		0.2
Apparel		0.9
Auto Manufacturers		5.6
Auto Parts & Equipment		2.3
Banks		13.3
Beverages		0.8
Biotechnology		0.2
Building Materials		1.6
Chemicals		4.6
Coal		0.6
Commercial Services		0.7
Computers		2.0
Cosmetics/Personal Care		0.2
Distribution/Wholesale		2.1
Diversified Financial Services		3.2
Electric		1.9
Electrical Components & Equipment		0.7
Electronics		1.8
Energy – Alternate Sources		0.5
Engineering & Construction		0.2
Food		4.9
Forest Products & Paper		1.1
Healthcare – Products		0.7
Holding Companies – Diversified		0.8
Home Builders		0.8
Home Furnishings		0.7
Insurance		5.5
Internet		1.9
Iron/Steel		3.3
Leisure Time		0.7
Lodging		2.5
Machinery – Construction & Mining		0.3
Machinery – Diversified		0.8
Media		0.7
Metal Fabricate/Hardware		0.6
Mining		3.6
Miscellaneous Manufacturing		1.1
Oil & Gas		4.4
Oil & Gas Services		0.4

See accompanying Notes to Financial Statements.

111

TABLE OF CONTENTS

ADVISORSHARES MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)

June 30, 2014


	% of Net Assets
Pharmaceuticals		3.4	%
Real Estate		0.1
Retail		1.8
Semiconductors		3.5
Software		0.5
Telecommunications		7.0
Transportation		2.0
Water		0.5
Money Market Fund		17.6
Total Investments		116.5
Liabilities in Excess of Other Assets		(16.5	)
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

112

TABLE OF CONTENTS

ADVISORSHARES MEIDELL TACTICAL ADVANTAGE ETF
Schedule of Investments

June 30, 2014


Investments	Shares		Value
EXCHANGE TRADED FUNDS — 97.1%
Equity Fund — 97.1%
Guggenheim S&P 500 Equal Weight ETF		9,874	$	757,434
iShares Core S&P 500 ETF		7,698		1,516,506
iShares Core S&P Mid-Cap ETF		5,312		760,041
iShares MSCI Emerging Markets ETF		35,807		1,547,937
iShares Russell 1000 ETF^(a)		6,860		755,355
iShares S&P 100 ETF		8,678		750,907
iShares S&P 500 Growth ETF		14,361		1,510,634
iShares S&P 500 Value ETF^(a)		17,093		1,543,156
iShares S&P MidCap 400 Value ETF^(a)		12,032		1,527,101
iShares Select Dividend ETF		10,107		778,037
PowerShares QQQ Trust, Series 1		8,106		761,234
SPDR S&P Emerging Markets SmallCap ETF		15,388		774,016
Vanguard FTSE All-World ex-US ETF^(a)		14,640		765,526
WisdomTree Dividend ex-Financials Fund		10,521		778,449
WisdomTree LargeCap Dividend Fund		10,836		766,972
Total Exchange Traded Funds (Cost $14,809,866)				15,293,305
MONEY MARKET FUND — 3.1%
Dreyfus Institutional Reserves Treasury Fund �� Institutional Class, 0.00%^(b) (Cost $483,352)		483,352		483,352
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 9.9%
BNY Mellon Securities Lending Overnight Fund, 0.11%^(c) (Cost $1,566,357)		1,566,357		1,566,357
Total Investments — 110.1% (Cost $16,859,575)				17,343,014
Liabilities in Excess of Other Assets — (10.1)%				(1,593,432	)
Net Assets — 100.0%			$	15,749,582

ETF — Exchange Traded Fund

(a)

All or a portion of security is on loan. The aggregate market value of the securities on loan is $1,532,683; the aggregate market value of the collateral held by the fund is $1,566,357.

(b)

Rate shown reflects the 7-day yield as of June 30, 2014.

(c)

Rate shown reflects the 1-day yield as of June 30, 2014.

See accompanying Notes to Financial Statements.

113

TABLE OF CONTENTS

ADVISORSHARES MEIDELL TACTICAL ADVANTAGE ETF
Schedule of Investments (continued)

June 30, 2014

SUMMARY OF SCHEDULE OF INVESTMENTS


	% of Net Assets
Equity Fund		97.1	%
Money Market Fund		13.0
Total Investments		110.1
Liabilities in Excess of Other Assets		(10.1	)
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

114

TABLE OF CONTENTS

ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments

June 30, 2014


Investments	Principal		Value
CORPORATE BONDS — 20.4%
Consumer Discretionary — 2.2%
American Axle & Manufacturing, Inc., 5.13%, 02/15/19	$	115,000	$	121,325
Boyd Gaming Corp., 9.13%, 12/01/18		210,000		224,437
Dish DBS Corp., 4.63%, 07/15/17		230,000		244,663
DR Horton, Inc., 3.63%, 02/15/18		320,000		328,800
GLP Capital LP/GLP Financing II, Inc., 4.38%, 11/01/18^‡		290,000		300,150
GLP Capital LP/GLP Financing II, Inc., 4.88%, 11/01/20^‡		165,000		170,362
Hyatt Hotels Corp., 3.88%, 08/15/16		35,000		36,907
MGM Resorts International, 7.63%, 01/15/17		165,000		186,863
QVC, Inc., 3.13%, 04/01/19		505,000		514,154
Rent-A-Center, Inc., 6.63%, 11/15/20^(a)		175,000		183,094
Time Warner Cable, Inc., 6.75%, 07/01/18		205,000		242,795
Toll Brothers Finance Corp., 4.00%, 12/31/18		375,000		387,187
Weyerhaeuser Real Estate Co., 4.38%, 06/15/19^‡		70,000		70,438
Wyndham Worldwide Corp., 2.50%, 03/01/18		450,000		457,261
Total Consumer Discretionary				3,468,436
Energy — 0.7%
Calumet Specialty Products Partners LP/Calumet Finance Corp., 6.50%, 04/15/21^‡		210,000		215,250
Forest Oil Corp., 7.25%, 06/15/19^(a)		92,000		91,540
NGL Energy Partners LP/NGL Energy Finance Corp., 5.13%, 07/15/19^‡		160,000		161,200
Parker Drilling Co., 6.75%, 07/15/22^‡		100,000		104,500
Plains Exploration & Production Co., 6.50%, 11/15/20		210,000		235,462
QEP Resources, Inc., 6.88%, 03/01/21		225,000		253,688
Total Energy				1,061,640
Financials — 9.7%
Ally Financial, Inc., 3.50%, 07/18/16		450,000		465,750
American International Group, Inc., 3.38%, 08/15/20		335,000		348,590
Associated Banc-Corp., 5.13%, 03/28/16		60,000		63,932
Associates Corp. of North America, 6.95%, 11/01/18		415,000		496,085
Aviation Capital Group Corp., 3.88%, 09/27/16^‡		335,000		346,911
Bank of America Corp., 2.00%, 01/11/18		235,000		236,717
Bank of America Corp., 5.49%, 03/15/19		66,000		74,369

See accompanying Notes to Financial Statements.

115

TABLE OF CONTENTS

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

June 30, 2014


Investments	Principal		Value
Financials — 9.7% (continued)
Bank of America Corp., Series L, 5.65%, 05/01/18	$	200,000	$	226,905
Barclays Bank PLC, 5.20%, 07/10/14 (United Kingdom)		100,000		100,091
Bear Stearns Cos. LLC (The), 7.25%, 02/01/18		75,000		89,328
Capital One Financial Corp., 6.15%, 09/01/16		400,000		442,893
CNA Financial Corp., 5.85%, 12/15/14		100,000		102,509
Corporate Office Properties LP, 3.70%, 06/15/21		460,000		460,448
Countrywide Financial Corp., 6.25%, 05/15/16		130,000		141,922
DDR Corp., 7.88%, 09/01/20		180,000		228,054
DDR Corp., 3.50%, 01/15/21		145,000		147,885
E*Trade Financial Corp., 6.38%, 11/15/19		175,000		190,312
Fifth Third Bancorp, 4.50%, 06/01/18		321,000		350,559
Ford Motor Credit Co. LLC, 8.13%, 01/15/20		455,000		581,614
General Electric Capital Corp., Series G, 5.63%, 05/01/18		295,000		338,317
Genworth Holdings, Inc., 7.63%, 09/24/21		200,000		250,933
Goldman Sachs Group, Inc. (The), 5.63%, 01/15/17		670,000		737,801
HCP, Inc., 3.75%, 02/01/19		175,000		186,663
Health Care REIT, Inc., 4.70%, 09/15/17		220,000		240,843
Healthcare Trust of America Holdings LP, 3.38%, 07/15/21		150,000		150,314
HSBC Finance Corp., 6.68%, 01/15/21		225,000		269,443
HSBC USA, Inc., 1.63%, 01/16/18		200,000		200,619
HSBC USA, Inc., 2.63%, 09/24/18		225,000		232,245
Huntington Bancshares, Inc., 7.00%, 12/15/20		200,000		242,888
International Lease Finance Corp., 3.88%, 04/15/18		390,000		400,481
iStar Financial, Inc., 4.00%, 11/01/17		410,000		413,588
Jefferies Group LLC, 5.13%, 04/13/18		275,000		301,818
JPMorgan Chase & Co., 6.13%, 06/27/17		280,000		315,530
Lazard Group LLC, 4.25%, 11/14/20		275,000		288,518
Lincoln National Corp., 8.75%, 07/01/19		125,000		162,240
Lincoln National Corp., 6.05%, 04/20/67^@		100,000		101,625
Morgan Stanley, 5.55%, 04/27/17		425,000		472,955
Morgan Stanley, 2.13%, 04/25/18		180,000		182,143
National Retail Properties, Inc., 5.50%, 07/15/21		250,000		285,458
Nationstar Mortgage LLC, 6.50%, 08/01/18		235,000		243,225
Navient Corp., 4.88%, 06/17/19		285,000		294,433

See accompanying Notes to Financial Statements.

116

TABLE OF CONTENTS

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

June 30, 2014


Investments	Principal		Value
Financials — 9.7% (continued)
Prudential Financial, Inc., 5.20%, 03/15/44^@	$	300,000	$	307,125
Regions Financial Corp., 5.75%, 06/15/15		325,000		339,760
Santander Holdings USA, Inc., 3.00%, 09/24/15		115,000		118,156
SBA Tower Trust, 2.93%, 12/15/17^‡		725,000		740,177
Senior Housing Properties Trust, 3.25%, 05/01/19		415,000		420,747
State Street Corp., 4.96%, 03/15/18		300,000		329,409
Ventas Realty LP, 4.00%, 04/30/19		310,000		333,408
Voya Financial, Inc., 2.90%, 02/15/18		365,000		378,553
Wells Fargo & Co., 5.13%, 09/15/16		75,000		81,930
Willis North America, Inc., 6.20%, 03/28/17		250,000		275,026
Zions Bancorporation, 4.50%, 03/27/17		195,000		208,240
Total Financials				14,939,485
Health Care — 0.9%
Catamaran Corp., 4.75%, 03/15/21 (Canada)		120,000		121,500
Community Health Systems, Inc., 5.13%, 08/15/18		170,000		178,712
Express Scripts Holding Co., 3.50%, 11/15/16		150,000		159,359
Forest Laboratories, Inc., 4.38%, 02/01/19^‡		200,000		216,262
HCA, Inc., 3.75%, 03/15/19		160,000		161,800
HCA, Inc., 6.50%, 02/15/20		185,000		208,587
Tenet Healthcare Corp., 6.25%, 11/01/18		150,000		167,063
Tenet Healthcare Corp., 5.00%, 03/01/19^‡(a)		60,000		60,975
Tenet Healthcare Corp., 6.00%, 10/01/20		105,000		114,188
Total Health Care				1,388,446
Industrials — 4.9%
ADT Corp. (The), 6.25%, 10/15/21^(a)		355,000		377,187
America West Airlines 1999-1 Pass-Through Trust, Series 991G, 7.93%, 01/02/19		429,638		477,972
America West Airlines 2001-1 Pass-Through Trust, Series 011G, 7.10%, 04/02/21		1,109,615		1,231,673
Atlas Air 2000-1 Class A Pass-Through Trust, Series 00-1, 8.71%, 01/02/19		521,976		548,075
Continental Airlines 1997-4 Class A Pass-Through Trust, Series 974A, 6.90%, 01/02/18		339,716		365,194
Continental Airlines 1998-1 Class A Pass-Through Trust, Series 981A, 6.65%, 09/15/17		312,691		332,015

See accompanying Notes to Financial Statements.

117

TABLE OF CONTENTS

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

June 30, 2014


Investments	Principal		Value
Industrials — 4.9% (continued)
Continental Airlines 1999-1 Class A Pass-Through Trust, Series 991A, 6.55%, 02/02/19	$	337,804	$	374,523
Continental Airlines 1999-2 Class C-2 Pass-Through Trust, Series AMBC, 6.24%, 03/15/20		251,349		282,768
Continental Airlines 2000-1 Class A-1 Pass-Through Trust, Series 00A1, 8.05%, 11/01/20		319,506		367,624
Delta Air Lines 2012-1 Class A Pass-Through Trust, Series A, 4.75%, 05/07/20		322,845		350,287
Delta Air Lines Class A Pass-Through Trust, Series 2010-2A, 4.95%, 05/23/19		761,356		829,878
Deluxe Corp., 7.00%, 03/15/19		170,000		182,750
HD Supply, Inc., 8.13%, 04/15/19		170,000		187,638
Northwest Airlines 2002-1 Class G-2 Pass-Through Trust, Series 02-1, 6.26%, 11/20/21		439,534		475,444
Textron, Inc., 4.63%, 09/21/16		400,000		429,002
UAL 2009-2a Pass-Through Trust, Series 09-2, 9.75%, 01/15/17		543,882		622,745
United Rentals North America, Inc., 7.38%, 05/15/20		150,000		166,500
Total Industrials				7,601,275
Information Technology — 0.4%
Dun & Bradstreet Corp. (The), 3.25%, 12/01/17^(a)		300,000		310,903
Equinix, Inc., 4.88%, 04/01/20		175,000		180,250
Sanmina Corp., 4.38%, 06/01/19^‡		135,000		135,169
Total Information Technology				626,322
Materials — 0.4%
Hexion US Finance Corp., 6.63%, 04/15/20		175,000		186,375
Huntsman International LLC, 4.88%, 11/15/20^(a)		200,000		208,000
International Paper Co., 9.38%, 05/15/19		75,000		99,412
Reynolds Group Issuer LLC, 7.88%, 08/15/19		150,000		164,063
Total Materials				657,850
Telecommunication Services — 1.0%
AT&T, Inc., 3.88%, 08/15/21		210,000		223,758
Frontier Communications Corp., 7.13%, 03/15/19		250,000		285,000
Qwest Corp., 6.50%, 06/01/17		75,000		85,327
Sprint Communications, Inc., 6.00%, 12/01/16		170,000		185,512

See accompanying Notes to Financial Statements.

118

TABLE OF CONTENTS

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

June 30, 2014


Investments	Principal		Value
Telecommunication Services — 1.0% (continued)
T-Mobile USA, Inc., 6.46%, 04/28/19	$	275,000	$	290,125
Verizon Communications, Inc., 2.50%, 09/15/16		45,000		46,408
Verizon Communications, Inc., 3.65%, 09/14/18		50,000		53,526
Verizon Communications, Inc., 2.55%, 06/17/19		200,000		203,127
Verizon Communications, Inc., 4.60%, 04/01/21		125,000		138,081
Total Telecommunication Services				1,510,864
Utilities — 0.2%
Energy Transfer Partners LP, 4.15%, 10/01/20		250,000		264,661
Total Corporate Bonds (Cost $30,997,715)				31,518,979
FOREIGN BONDS — 5.2%
Consumer Discretionary — 0.1%
Wynn Macau Ltd., 5.25%, 10/15/21 (Cayman Islands)^‡		210,000		216,300
Consumer Staples — 0.3%
Coca-Cola Femsa SAB de CV, 2.38%, 11/26/18 (Mexico)		470,000		476,840
Energy — 0.7%
Petrobras International Finance Co., 3.50%, 02/06/17 (Brazil)		400,000		411,600
Petroleos Mexicanos, 6.00%, 03/05/20 (Mexico)		350,000		402,150
Weatherford Bermuda Holdings Ltd., 9.63%, 03/01/19 (Bermuda)		150,000		197,038
Total Energy				1,010,788
Financials — 2.3%
Aircastle Ltd., 4.63%, 12/15/18 (Bermuda)		285,000		294,263
Aircastle Ltd., 6.25%, 12/01/19 (Bermuda)		250,000		275,000
Aircastle Ltd., 5.13%, 03/15/21 (Bermuda)		210,000		217,875
Banco Santander Brasil SA, 4.50%, 04/06/15 (Brazil)		250,000		256,250
Banco Santander Chile, 2.11%, 06/07/18 (Chile)^@‡		200,000		204,500
Caixa Economica Federal, 4.25%, 05/13/19 (Brazil)^‡		395,000		399,740
Cooperatieve Centrale Raiffeisen-Boerenleenbank BA, 2.25%, 01/14/19 (Netherlands)		300,000		304,145
Corp. Andina de Fomento, 3.75%, 01/15/16 (Supranational)		100,000		104,512
Intesa Sanpaolo SpA, 3.13%, 01/15/16 (Italy)		200,000		205,658
Korea Finance Corp., 4.63%, 11/16/21 (South Korea)		375,000		413,824

See accompanying Notes to Financial Statements.

119

TABLE OF CONTENTS

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

June 30, 2014


Investments	Principal		Value
Financials — 2.3% (continued)
Macquarie Group Ltd., 6.00%, 01/14/20 (Australia)^‡	$	45,000	$	51,038
Royal Bank of Scotland Group PLC, 6.40%, 10/21/19 (United Kingdom)		350,000		412,587
Schaeffler Finance BV, 4.25%, 05/15/21 (Germany)^‡		375,000		375,937
XL Group PLC, Series E, 6.50%, 12/29/49 (Ireland)^@		105,000		103,950
Total Financials				3,619,279
Foreign Government — 0.2%
Australia Government Bond, Series 130, 4.75%, 06/15/16 (Australia)		385,000		378,715
Health Care — 0.1%
Valeant Pharmaceuticals International, Inc., 6.75%, 08/15/18 (Canada)^‡		85,000		91,800
Industrials — 0.3%
Air Canada 2013-1 Class B Pass-Through Trust, 5.38%, 05/15/21 (Canada)^‡		318,285		329,425
Bombardier, Inc., 4.75%, 04/15/19 (Canada)^‡		65,000		66,219
Total Industrials				395,644
Materials — 0.2%
Methanex Corp., 3.25%, 12/15/19 (Canada)		100,000		102,514
Vale Overseas Ltd., 4.38%, 01/11/22 (Brazil)		170,000		175,389
Total Materials				277,903
Telecommunication Services — 0.5%
Millicom International Cellular SA, 6.63%, 10/15/21 (Luxembourg)^‡		280,000		302,400
Telefonica Emisiones SAU, 6.42%, 06/20/16 (Spain)		100,000		110,141
Wind Acquisition Finance SA, 4.75%, 07/15/20 (Luxembourg)^‡		375,000		378,750
Total Telecommunication Services				791,291
Utilities — 0.5%
Majapahit Holding BV, 7.75%, 01/20/20 (Indonesia)^‡		245,000		287,875
State Grid Overseas Investment 2014 Ltd., 2.75%, 05/07/19 (China)^‡		500,000		504,635
Total Utilities				792,510
Total Foreign Bonds (Cost $7,951,349)				8,051,070

See accompanying Notes to Financial Statements.

120

TABLE OF CONTENTS

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

June 30, 2014


Investments	Principal		Value
ASSET BACKED SECURITIES — 22.7%
American Homes 4 Rent, Class A, Series 2014-SFR1, 1.25%, 06/17/31^@‡	$	280,000	$	280,638
AmeriCredit Automobile Receivables Trust, Class C, Series 2014-2, 2.18%, 06/08/20		500,000		502,217
AmeriCredit Automobile Receivables Trust, Class D, Series 2011-2, 4.00%, 05/08/17		955,000		982,261
AmeriCredit Automobile Receivables Trust, Class D, Series 2012-4, 2.68%, 10/09/18		1,050,000		1,078,682
AmeriCredit Automobile Receivables Trust, Class D, Series 2013-2, 2.42%, 05/08/19		575,000		581,843
AmeriCredit Automobile Receivables Trust, Class D, Series 2014-1, 2.54%, 06/08/20		500,000		503,129
Asset Backed Funding Certificates Trust, Class A6, Series 2005-AQ1, 4.78%, 06/25/35^#		291,060		300,360
Associates Manufactured Housing Pass-Through Certificates, Class B1, Series 1996-1, 8.00%, 03/15/27^@		420,475		461,125
Avis Budget Rental Car Funding AESOP LLC, Class A, Series 2012-3A, 2.10%, 03/20/19^‡		500,000		505,946
Avis Budget Rental Car Funding AESOP LLC, Class A, Series 2013-1A, 1.92%, 09/20/19^‡		140,000		140,071
Banc of America Funding Trust, Class 1A1, Series 2005-1, 5.50%, 02/25/35		408,935		425,559
BankAmerica Manufactured Housing Contract Trust, Class B1, Series 1998-1, 7.81%, 08/10/25^@		435,256		468,142
Bayview Financial Acquisition Trust, Class 1A2, Series 2007-A, 6.21%, 05/28/37^#		691,352		740,116
Beacon Container Finance LLC, Class A, Series 2012-1A, 3.72%, 09/20/27^‡		732,004		748,131
California Republic Auto Receivables Trust, Class B, Series 2014-2, 2.34%, 04/15/20		500,000		500,771
Capital Auto Receivables Asset Trust, Class C, Series 2013-4, 2.67%, 02/20/19		340,000		346,345
CarFinance Capital Auto Trust, Class B, Series 2013-2A, 3.15%, 08/15/19^‡		350,000		355,244
CarFinance Capital Auto Trust, Class B, Series 2014-1A, 2.72%, 04/15/20^‡		200,000		200,735
CarFinance Capital Auto Trust, Class D, Series 2014-1A, 4.90%, 04/15/20^‡		415,000		426,882

See accompanying Notes to Financial Statements.

121

TABLE OF CONTENTS

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

June 30, 2014


Investments	Principal		Value
ASSET BACKED SECURITIES — 22.7% (continued)
CarMax Auto Owner Trust, Class B, Series 2012-1, 1.76%, 08/15/17	$	500,000	$	508,598
CarMax Auto Owner Trust, Class C, Series 2014-2, 2.08%, 01/15/20		425,000		426,543
CCG Receivables Trust, Class B, Series 2014-1, 2.15%, 11/15/21^‡		420,000		422,336
Centex Home Equity Loan Trust, Class AF5, Series 2004-D, 5.35%, 09/25/34^#		438,000		465,834
Chase Funding Trust Series, Class 1A4, Series 2004-2, 5.32%, 02/26/35		1,314,919		1,333,184
Citicorp Residential Mortgage Trust Series, Class A4, Series 2006-1, 5.94%, 07/25/36^#		605,758		635,137
Citicorp Residential Mortgage Trust Series, Class A6, Series 2007-2, 5.75%, 06/25/37^#		694,556		722,737
CKE Restaurant Holdings, Inc., Class A2, Series 2013-1A, 4.47%, 03/20/43^‡		304,188		312,863
Conseco Financial Corp., Class B1, Series 1995-5, 7.30%, 09/15/26^@		702,046		749,109
Countrywide Asset-Backed Certificates, Class A3, Series 2004-S1, 5.12%, 02/25/35^#		931,494		954,334
Cronos Containers Program Ltd., Class A, Series 2012-2A, 3.81%, 09/18/27 (Bermuda)^‡		247,500		248,755
Domino's Pizza Master Issuer LLC, Class A2, Series 2012-1A, 5.22%, 01/25/42^‡		265,719		285,866
Drug Royalty II LP 2, Class A2, Series 2014-1, 3.48%, 07/15/23^‡		450,000		449,993
DT Auto Owner Trust, Class C, Series 2013-2A, 3.06%, 09/16/19^‡		500,000		507,896
DT Auto Owner Trust, Class C, Series 2014-2A, 2.46%, 01/15/20^‡		300,000		300,427
Exeter Automobile Receivables Trust, Class B, Series 2013-2A, 3.09%, 07/16/18^‡		180,000		184,531
Exeter Automobile Receivables Trust, Class C, Series 2013-1A, 3.52%, 02/15/19^‡		500,000		518,993
Exeter Automobile Receivables Trust, Class C, Series 2014-1A, 3.57%, 07/15/19^‡		550,000		566,154
Exeter Automobile Receivables Trust, Class C, Series 2014-2A, 3.26%, 12/16/19^‡		500,000		503,402
Federal Home Loan Mortgage Corporation, Class M2, Series 2014-DN2, 1.80%, 04/25/24^@		500,000		503,815
GSAA Trust, Class AF4, Series 2005-1, 5.62%, 11/25/34^#		260,489		278,599
Hilton Grand Vacations Trust, Class A, Series 2013-A, 2.28%, 01/25/26^‡		210,378		213,313

See accompanying Notes to Financial Statements.

122

TABLE OF CONTENTS

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

June 30, 2014


Investments	Principal		Value
ASSET BACKED SECURITIES — 22.7% (continued)
Hilton Grand Vacations Trust, Class A, Series 2014-AA, 1.77%, 11/25/26^‡	$	440,000	$	440,508
Honda Auto Receivables Owner Trust, Class A4, Series 2011-3, 1.17%, 12/21/17		750,000		753,164
Hyundai Auto Receivables Trust, Class D, Series 2014-B, 2.51%, 12/15/20		425,000		426,366
JPMorgan Mortgage Trust, Class 2A2, Series 2014-2, 3.50%, 06/25/29^@‡		320,000		332,300
LEAF Receivables Funding 9 LLC, Class D, Series 2013-1, 5.11%, 09/15/21^‡		345,000		353,315
Marriott Vacation Club Owner Trust, Class A, Series 2012-1A, 2.51%, 05/20/30^‡		1,331,270		1,356,961
MASTR Asset Securitization Trust, Class 4A5, Series 2003-5, 5.50%, 06/25/33		761,826		811,958
Mid-State Trust, Class A4, Series 1997-6, 7.79%, 07/01/35		444,977		479,140
New Residential Mortgage Loan Trust, Class A, Series 2014-1A, 3.75%, 01/25/54^@‡		226,407		235,509
OneMain Financial Issuance Trust, Class A, Series 2014-1A, 2.43%, 06/18/24^‡		330,000		329,993
Residential Funding Mortgage Securities II Home Loan Trust, Class AIIB, Series 2003-HS2, 0.40%, 06/25/28^@		198,633		188,101
Santander Drive Auto Receivables Trust, Class A3, Series 2012-5, 0.83%, 12/15/16		152,306		152,454
Santander Drive Auto Receivables Trust, Class C, Series 2012-3, 3.01%, 04/16/18		260,000		266,678
Santander Drive Auto Receivables Trust, Class C, Series 2012-4, 2.94%, 12/15/17		360,000		369,013
Santander Drive Auto Receivables Trust, Class C, Series 2013-3, 1.81%, 04/15/19		600,000		604,044
Santander Drive Auto Receivables Trust, Class C, Series 2014-3, 2.13%, 08/17/20		600,000		601,140
Santander Drive Auto Receivables Trust, Class D, Series 2012-2, 3.87%, 02/15/18		300,000		312,436
Santander Drive Auto Receivables Trust, Class D, Series 2012-6, 2.52%, 09/17/18		350,000		358,233
Sierra Receivables Funding Co. LLC, Class A, Series 2014-1A, 2.07%, 03/20/30^‡		456,277		457,408
Sierra Timeshare Receivables Funding LLC, Class B, Series 2012-2A, 3.42%, 03/20/29^‡		273,745		280,250

See accompanying Notes to Financial Statements.

123

TABLE OF CONTENTS

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

June 30, 2014


Investments	Principal		Value
ASSET BACKED SECURITIES — 22.7% (continued)
Silverleaf Finance XV LLC, Class A, Series 2012-D, 3.00%, 03/17/25^‡	$	286,545	$	290,162
SLM Private Education Loan Trust, Class A2A, Series 2013-B, 1.85%, 06/17/30^‡		500,000		494,449
SLM Private Education Loan Trust, Class A2A, Series 2013-C, 2.94%, 10/15/31^‡		270,000		278,449
SNAAC Auto Receivables Trust, Class C, Series 2014-1A, 2.21%, 01/15/20^‡		330,000		331,155
Structured Asset Securities Corp., Class A3A, Series 2004-4XS, 5.00%, 02/25/34^#		742,731		789,478
Structured Asset Securities Corp. Assistance Loan Trust, Class A, Series 2003-AL1, 3.36%, 04/25/31^‡		33,603		33,120
TAL Advantage V LLC, Class A, Series 2013-1A, 2.83%, 02/22/38^‡		476,667		475,460
Tidewater Auto Receivables Trust, Class C, Series 2014-AA, 2.56%, 08/15/19^‡		500,000		500,677
Trip Rail Master Funding LLC, Class A1, Series 2014-1A, 2.86%, 04/15/44^‡		298,163		300,341
Trip Rail Master Funding LLC, Class A1A, Series 2011-1A, 4.37%, 07/15/41^‡		406,735		429,923
Wells Fargo Mortgage Backed Securities, Class A1, Series 2003-G, 2.49%, 06/25/33^@		39,568		40,549
Wells Fargo Mortgage Backed Securities, Class A1, Series 2004-U, 2.64%, 10/25/34^@		597,756		602,733
Westgate Resorts LLC, Class A, Series 2012-2A, 3.00%, 01/20/25^‡		273,701		275,672
Westlake Automobile Receivables Trust, Class C, Series 2014-1A, 1.70%, 11/15/19^‡		500,000		500,572
Total Asset Backed Securities (Cost $34,956,120)				35,092,327
MORTGAGE BACKED SECURITIES — 31.8%
Commercial Mortgage Backed Securities — 12.5%
A10 Securitization LLC, Class A, Series 2013-1, 2.40%, 11/15/25^‡		545,028		548,077
A10 Term Asset Financing LLC, Class A1, Series 2014-1, 1.72%, 04/15/33^‡		250,000		249,983
BAMLL-DB Trust, Class A2FX, Series 2012-OSI, 3.35%, 04/13/29^‡		274,872		284,920
Banc of America Commercial Mortgage Trust, Class A4, Series 2007-2, 5.78%, 04/10/49^@		764,000		840,563

See accompanying Notes to Financial Statements.

124

TABLE OF CONTENTS

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

June 30, 2014


Investments	Principal		Value
Commercial Mortgage Backed Securities — 12.5% (continued)
Bayview Commercial Asset Trust, Class A3, Series 2008-1, 1.65%, 01/25/38^@‡	$	300,000	$	286,473
Bayview Financial Mortgage Pass-Through Trust, Class 1A2, Series 2006-A, 5.48%, 02/28/41^#		673,194		688,081
Bear Stearns Commercial Mortgage Securities Trust, Class A4, Series 2007-PW18, 5.70%, 06/11/50		970,000		1,086,120
Bear Stearns Commercial Mortgage Securities Trust, Class AM, Series 2005-PW10, 5.45%, 12/11/40^@		571,000		603,180
Bear Stearns Commercial Mortgage Securities Trust, Class AM, Series 2007-PW17, 5.92%, 06/11/50^@		280,000		313,567
Capital Auto Receivables Asset Trust/Ally, Class C, Series 2013-1, 1.74%, 10/22/18		415,000		415,995
CD Commercial Mortgage Trust, Class A4, Series 2007-CD4, 5.32%, 12/11/49		780,000		849,415
Citigroup Commercial Mortgage Trust, Class A1A, Series 2007-C6, 5.90%, 12/10/49^@		1,260,687		1,397,702
Citigroup Commercial Mortgage Trust, Class A4, Series 2007-C6, 5.90%, 12/10/49^@		140,000		154,857
Citigroup Commercial Mortgage Trust, Class AM, Series 2008-C7, 6.34%, 12/10/49^@		530,000		595,590
Citigroup Commercial Mortgage Trust, Class MLSR, Series 2010-RR3, 5.81%, 06/14/50^@‡		340,000		372,894
Commercial Mortgage Trust, Class AM, Series 2007-GG11, 5.87%, 12/10/49^@		200,000		221,385
Countrywide Asset-Backed Certificates, Class AF6, Series 2004-12, 4.63%, 03/25/35^@		373,567		380,578
Credit Suisse Commercial Mortgage Trust Series, Class A1A, Series 2007-C1, 5.36%, 02/15/40		540,401		580,746
Extended Stay America Trust, Class A17, Series 2013-ESH7, 2.30%, 12/05/31^‡		550,000		534,215
GS Mortgage Securities Trust, Class A1A, Series 2007-GG10, 6.00%, 08/10/45^@		693,937		763,544
GS Mortgage Securities Trust, Class A4, Series 2007-GG10, 6.00%, 08/10/45^@		908,051		1,006,594
Heller Financial Commercial Mortgage Asset, Class G, Series 2000-PH1, 6.75%, 01/17/34^‡		227,385		232,179
Hilton USA Trust, Class EFX, Series 2013-HLT, 5.22%, 11/05/30^@‡		360,000		372,980
Irwin Home Equity Loan Trust, Class M1, Series 2003-A, 1.70%, 10/25/27^@		549,713		539,255

See accompanying Notes to Financial Statements.

125

TABLE OF CONTENTS

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

June 30, 2014


Investments	Principal		Value
Commercial Mortgage Backed Securities — 12.5% (continued)
JPMorgan Mortgage Trust, Class 1A1, Series 2004-A3, 2.35%, 07/25/34^@	$	146,839	$	150,176
LB-UBS Commercial Mortgage Trust, Class A3, Series 2007-C7, 5.87%, 09/15/45^@		682,178		767,928
Master Alternative Loan Trust, Class 6A1, Series 2004-4, 5.50%, 04/25/34		263,656		286,782
RASC Series Trust, Class AI6, Series 2004-KS2, 4.30%, 03/25/34^@		222,527		225,642
Rialto Real Estate Fund LLC, Class A, Series 2013-LT2, 2.83%, 05/22/28^‡		94,374		94,471
Santander Drive Auto Receivables Trust, Class D, Series 2013-1, 2.27%, 01/15/19		500,000		506,934
Santander Drive Auto Receivables Trust, Class D, Series 2013-5, 2.73%, 10/15/19		300,000		306,249
Structured Adjustable Rate Mortgage Loan Trust, Class 3A2, Series 2004-5, 2.41%, 05/25/34^@		559,169		562,266
Wachovia Bank Commercial Mortgage Trust, Class A3, Series 2007-C32, 5.93%, 06/15/49^@		975,000		1,068,574
Wachovia Bank Commercial Mortgage Trust, Class A4, Series 2007-C31, 5.51%, 04/15/47		770,000		834,886
Wachovia Bank Commercial Mortgage Trust, Class AM, Series 2007-C30, 5.38%, 12/15/43		870,000		947,578
Washington Mutual MSC Mortgage Pass-Through Certificates Series Trust, Class 2A1, Series 2003-AR4, 2.25%, 08/25/33^@		266,429		267,078
Total Commercial Mortgage Backed Securities				19,337,457
Fixed Income — 13.5%
Bear Stearns ARM Trust, Class 12A3, Series 2004-10, 2.72%, 01/25/35^@		491,032		493,570
Bear Stearns ARM Trust, Class 15A1, Series 2004-10, 2.62%, 01/25/35^@		1,125,991		1,153,215
Bear Stearns ARM Trust, Class 21A1, Series 2004-1, 2.28%, 04/25/34^@		546,433		548,037
Bear Stearns Commercial Mortgage Securities Trust, Class A4, Series 2007-PW17, 5.69%, 06/11/50^@		650,000		724,126
Bear Stearns Commercial Mortgage Securities Trust, Class AM, Series 2006-PW13, 5.58%, 09/11/41^@		800,000		869,535
Bear Stearns Commercial Mortgage Securities Trust, Class AM, Series 2007-PW15, 5.36%, 02/11/44		350,000		369,498

See accompanying Notes to Financial Statements.

126

TABLE OF CONTENTS

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

June 30, 2014


Investments	Principal		Value
Fixed Income — 13.5% (continued)
Citigroup Mortgage Loan Trust, Inc., Class A3, Series 2004-UST1, 2.21%, 08/25/34^@	$	531,123	$	535,587
Credit Suisse First Boston Mortgage Securities Corp., Class 6A1, Series 2004-8, 4.50%, 12/25/19		216,885		221,395
DBUBS Mortgage Trust, Class A2, Series 2011-LC3A, 3.64%, 08/10/44		1,050,000		1,103,102
GMACM Mortgage Loan Trust, Class 12A, Series 2004-AR1, 2.99%, 06/25/34^@		619,835		637,206
GMACM Mortgage Loan Trust, Class A10, Series 2003-J7, 5.50%, 11/25/33		985,338		1,036,589
GSR Mortgage Loan Trust, Class 2A2, Series 2007-1F, 5.50%, 01/25/37		40,641		39,201
JPMorgan Chase Commercial Mortgage Securities Trust, Class A3, Series 2006-LDP9, 5.34%, 05/15/47		745,000		808,971
JPMorgan Chase Commercial Mortgage Securities Trust, Class A4, Series 2007-LD12, 5.88%, 02/15/51^@		1,490,000		1,652,777
JPMorgan Chase Commercial Mortgage Securities Trust, Class AM, Series 2006-LDP7, 6.06%, 04/15/45^@		1,190,000		1,297,193
JPMorgan Chase Commercial Mortgage Securities Trust, Class AM, Series 2007-LDPX, 5.46%, 01/15/49^@		275,000		293,284
LB Commercial Mortgage Trust, Class A4, Series 2007-C3, 6.09%, 07/15/44^@		610,000		678,125
LB-UBS Commercial Mortgage Trust, Class A4, Series 2007-C6, 5.86%, 07/15/40^@		1,226,735		1,316,659
MASTR Asset Securitization Trust, Class 4A1, Series 2004-6, 5.00%, 07/25/19		191,641		199,081
Merrill Lynch Mortgage Trust, Class AM, Series 2006-C1, 5.86%, 05/12/39^@		660,000		709,484
Morgan Stanley Capital I Trust, Class A4, Series 2007-IQ14, 5.69%, 04/15/49^@		800,000		883,134
RALI Series Trust, Class A3, Series 2003-QS22, 5.38%, 12/26/33		244,475		254,054
RALI Series Trust, Class A6, Series 2004-QS8, 5.50%, 06/25/34		273,246		282,956
Structured Asset Securities Corp., Class 2A, Series 2003-37A, 3.62%, 12/25/33^@		410,817		414,979
Structured Asset Securities Corp. Mortgage Pass-Through Certificates, Class 1A1, Series 2003-33H, 5.50%, 10/25/33		573,754		588,962
Wachovia Bank Commercial Mortgage Trust Series, Class AM, Series 2007-C31, 5.59%, 04/15/47^@		1,380,000		1,513,656

See accompanying Notes to Financial Statements.

127

TABLE OF CONTENTS

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

June 30, 2014


Investments	Principal		Value
Fixed Income — 13.5% (continued)
WaMu Mortgage Pass-Through Certificates, Class A1, Series 2003-AR6, 2.44%, 06/25/33^@	$	301,740	$	305,818
Wells Fargo Mortgage Backed Securities, Class 1A2, Series 2004-K, 2.62%, 07/25/34^@		627,029		637,313
Wells Fargo Mortgage Backed Securities, Class 2A1, Series 2004-Z, 2.61%, 12/25/34^@		280,520		286,726
Wells Fargo Mortgage Backed Securities, Class 2A12, Series 2004-K, 2.79%, 07/25/34^@		234,824		237,623
Wells Fargo Mortgage Backed Securities, Class 5A1, Series 2003-J, 2.49%, 10/25/33^@		281,959		285,982
Wells Fargo Mortgage Backed Securities, Class A1, Series 2004-A, 2.64%, 02/25/34^@		345,058		352,656
Wells Fargo Mortgage Backed Securities, Class A5, Series 2006-16, 5.00%, 11/25/36		184,452		192,311
Total Fixed Income				20,922,805
Non-Agency Mortgage-Backed Securities — 1.7%
Alternative Loan Trust, Class 1A1, Series 2004-22CB, 6.00%, 10/25/34		221,583		234,057
Bear Stearns Commercial Mortgage Securities Trust, Class AM, Series 2006-PW14, 5.24%, 12/11/38		185,000		201,751
Commercial Mortgage Trust, Class A4, Series 2007-GG9, 5.44%, 03/10/39		1,100,000		1,201,408
JPMorgan Chase Commercial Mortgage Securities Trust, Class A4, Series 2006-LDP7, 6.06%, 04/15/45^@		150,000		161,467
Morgan Stanley Capital I Trust, Class A4, Series 2006-IQ12, 5.33%, 12/15/43		484,863		522,855
Morgan Stanley Capital I Trust, Class AM, Series 2007-IQ14, 5.87%, 04/15/49^@		226,000		241,199
Total Non-Agency Mortgage-Backed Securities				2,562,737
Residential Mortgage Backed Securities — 4.1%
Banc of America Funding Trust, Class 5A1, Series 2004-A, 2.36%, 07/20/34^@		434,814		438,463
Banc of America Mortgage Trust, Class 6A3, Series 2004-7, 4.50%, 08/25/19		1,077,913		1,090,772
Citigroup Mortgage Loan Trust, Class A, Series 2014-A, 4.00%, 01/25/35^@‡		223,011		233,587
Citigroup Mortgage Loan Trust, Inc., Class A2, Series 2003-UP3, 7.00%, 09/25/33		292,658		310,806

See accompanying Notes to Financial Statements.

128

TABLE OF CONTENTS

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

June 30, 2014


Investments	Principal		Value
Residential Mortgage Backed Securities — 4.1% (continued)
Credit Suisse First Boston Mortgage Securities Corp., Class 6A1, Series 2004-AR8, 2.48%, 09/25/34^@	$	270,796	$	274,241
GSR Mortgage Loan Trust, Class 3A1, Series 2004-7, 2.09%, 06/25/34^@		1,041,564		1,047,350
JPMorgan Mortgage Trust, Class 1A1, Series 2014-1, 4.00%, 01/25/44^@‡		535,084		553,406
JPMorgan Mortgage Trust, Class 4A1, Series 2006-A2, 2.57%, 08/25/34^@		222,358		222,869
Master Alternative Loan Trust, Class 1A1, Series 2007-1, 0.75%, 10/25/36^@		452,891		436,685
Structured Adjustable Rate Mortgage Loan Trust, Class 3A1, Series 2004-4, 2.46%, 04/25/34^@		242,792		243,752
Structured Adjustable Rate Mortgage Loan Trust, Class 3A2, Series 2004-4, 2.46%, 04/25/34^@		472,095		474,553
Structured Adjustable Rate Mortgage Loan Trust, Class 6A, Series 2004-1, 2.44%, 02/25/34^@		530,132		526,724
Structured Asset Securities Corp. Mortgage Pass-Through Certificates, Class 6A, Series 2003-34A, 2.65%, 11/25/33^@		451,715		446,074
Total Residential Mortgage Backed Securities				6,299,282
Total Mortgage Backed Securities (Cost $49,529,737)				49,122,281
U.S. TREASURY NOTES — 4.2%
U.S. Treasury Note, 0.50%, 06/30/16		4,000,000		4,003,592
U.S. Treasury Note, 0.88%, 05/15/17^(a)		2,500,000		2,503,515
Total U.S. Treasury Notes (Cost $6,504,109)				6,507,107
U.S. GOVERNMENT AGENCY SECURITIES — 1.6%
Federal Home Loan Mortgage Corporation, Class J, Series 2012-4011, 4.00%, 12/15/41		910,817		958,942
Federal National Mortgage Association, Class NA, Series 2009-36, 5.00%, 06/25/37		218,384		234,596
Federal National Mortgage Association, Class PA, Series 2010-57, 4.50%, 12/25/38		361,597		371,890
Federal National Mortgage Association, Class PA, Series 2012-10, 4.00%, 11/25/41		697,640		734,857

See accompanying Notes to Financial Statements.

129

TABLE OF CONTENTS

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

June 30, 2014


Investments	Principal		Value
U.S. GOVERNMENT AGENCY SECURITIES — 1.6% (continued)
Government National Mortgage Association, Class KA, Series 2011-140, 4.00%, 03/20/37	$	244,167	$	249,804
Total U.S. Government Agency Securities (Cost $2,508,638)				2,550,089
TERM LOANS — 13.6%
Consumer Discretionary — 4.7%
Boyd Gaming Corp., 4.00%, 08/14/20^@		310,923		312,245
Caesars Entertainment Corp., 9.50%, 10/31/16^@		221,521		222,877
Caesars Entertainment Corp., 9.75%, 01/28/18^@		56,000		55,341
CBAC Borrower LLC, 8.25%, 07/02/20^@		200,000		207,750
Charter Communications Operating, LLC, 3.00%, 07/01/20^@		418,942		413,096
Checkout Holding Corp., 4.50%, 04/09/21^@		218,000		218,499
Chrysler Group LLC, 3.25%, 12/31/18^@		329,175		328,592
CityCenter Holdings, LLC, 5.00%, 10/16/20^@		113,658		114,640
CSC Holdings LLC, 2.65%, 04/17/20^@		284,227		281,610
Hilton Worldwide Finance LLC, 3.50%, 10/26/20^@		478,255		478,016
Landry's, Inc., 4.00%, 04/24/18^@		210,693		211,681
Las Vegas Sands, LLC, 3.25%, 12/19/20^@		542,836		543,276
Leslie's Poolmart, Inc., 4.25%, 10/16/19^@		197,488		197,982
Libbey Glass, Inc., 3.75%, 04/09/21^@		318,000		318,397
MGM Resorts International, 3.50%, 12/20/19^@		359,561		358,887
Performance Sports Group Ltd. (Bauer Performance Sports Ltd.), 4.50%, 04/15/21 (Canada)^@		142,464		142,865
Pinnacle Entertainment, Inc., 3.75%, 08/13/20^@		299,531		300,623
PVH Corp., 3.25%, 02/13/20^@		408,017		411,450
Scientific Games International, Inc., 4.25%, 10/18/20^@		99,500		98,567
Seminole Hard Rock Entertainment, Inc., 3.50%, 05/14/20^@		59,400		59,382
Seminole Tribe of Florida, Inc., 3.00%, 04/29/20^@		412,097		412,012
Seven Sea Cruises S de RL LLC, 3.75%, 12/21/18^@		306,909		307,100
SRAM LLC, 4.00%, 04/10/20^@		209,266		207,762
SRAM LLC, 5.25%, 04/10/20^@		1,593		1,582
Tribune Company, 4.00%, 12/27/20^@		289,844		290,840
Univision Communications, Inc., 4.00%, 03/01/20^@		633,533		634,097
Zuffa LLC, 3.75%, 02/25/20^@		221,626		222,250
Total Consumer Discretionary				7,351,419

See accompanying Notes to Financial Statements.

130

TABLE OF CONTENTS

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

June 30, 2014


Investments	Principal		Value
Consumer Staples — 0.9%
ARAMARK Corp., 3.25%, 09/07/19^@	$	533,663	$	530,727
Darling International, Inc., 3.25%, 01/06/21^@		418,950		419,599
Hostess Brands, Inc., 6.75%, 04/09/20^@		224,438		233,134
Rite Aid Corp., 3.50%, 02/21/20^@		223,313		223,382
Total Consumer Staples				1,406,842
Energy — 0.5%
Fieldwood Energy LLC, 3.88%, 09/28/18^@		199,928		200,845
Seadrill Operating LP, 0.00%, 02/21/21^@(b)		326,000		324,722
Seadrill Operating LP, 4.00%, 02/21/21^@		178,105		177,407
Total Energy				702,974
Financials — 0.6%
Altisource Solutions Sarl, 0.00%, 12/09/20 (Luxembourg)^@(b)		380,000		380,633
Delos Finance Sarl, 3.50%, 03/06/21^@		468,000		468,536
TransUnion LLC, 4.00%, 04/09/21^@		145,635		145,921
Total Financials				995,090
Health Care — 1.2%
Accellent, Inc., 4.50%, 03/12/21^@		209,475		209,083
Davita, Inc., 3.50%, 06/24/21^@		109,000		109,626
Endo Luxemburg Finance I Co. Sarl, 3.25%, 03/01/21^@		299,250		299,219
Hologic, Inc., 3.25%, 08/01/19^@		305,000		305,166
IASIS Healthcare LLC, 4.50%, 05/03/18^@		221,625		222,789
RPI Finance Trust, 3.25%, 11/09/18^@		415,152		416,275
Valeant Pharmaceuticals International, Inc., 3.75%, 02/13/19 (Canada)^@		299,239		299,707
Total Health Care				1,861,865
Industrials — 1.7%
Air Canada, 5.50%, 09/26/19^@		235,000		240,581
Allegion Public Limited Co., 3.00%, 09/25/20^@		418,947		419,735
Alliant Techsystems, Inc., 3.50%, 11/02/20^@		334,737		335,940
Alliant Techsystems, Inc., 5.00%, 11/02/20^@		84,210		84,514
Avis Budget Car Rental LLC, 3.00%, 03/15/19^@		616,439		616,634
Doncasters Group Ltd., 4.50%, 04/09/20^@		271,564		273,007
Filtration Group, Inc., 4.50%, 11/20/20^@		52,735		53,229

See accompanying Notes to Financial Statements.

131

TABLE OF CONTENTS

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

June 30, 2014


Investments	Principal		Value
Industrials — 1.7% (continued)
McJunkin Red Man Corp., 5.00%, 11/08/19^@	$	85,355	$	86,022
Nortek, Inc., 3.75%, 10/30/20^@		285,000		285,888
TransDigm, Inc., 3.75%, 06/04/21^@		175,000		174,467
Total Industrials				2,570,017
Information Technology — 2.3%
Alcatel-Lucent USA, Inc., 4.50%, 01/30/19^@		197,494		197,910
Avago Technologies Cayman Ltd., 3.75%, 05/06/21 (Cayman Islands)^@		718,000		721,059
Blue Coat Systems, Inc., 4.00%, 05/31/19^@		340,395		341,175
CDW LLC, 3.25%, 04/30/20^@		345,935		342,822
Custom Sensors & Technologies, Inc., 0.00%, 06/18/21^@(b)		29,000		29,227
First Data Corp., 4.15%, 03/23/18^@		250,000		250,719
Genpact International, Inc., 3.50%, 08/30/19^@		418,942		421,456
Go Daddy Operating Co. LLC, 4.75%, 05/13/21^@		84,839		84,574
Infor US, Inc., 3.75%, 06/03/20^@		248,750		247,455
Interactive Data Corp., 4.75%, 05/02/21^@		296,887		299,858
ION Trading Technologies Sarl, 4.25%, 06/10/21^@		171,792		172,823
Kronos Inc., 4.50%, 10/30/19^@		4,949		4,995
Rovi Solutions Corp., 0.00%, 07/02/21^@(b)		92,000		92,259
Spansion LLC, 3.75%, 12/19/19^@		122,078		122,586
Sungard Availability Services Capital, Inc., 6.00%, 03/29/19^@		137,655		137,010
Vantiv, LLC, 3.75%, 06/13/21^@		69,000		69,690
Total Information Technology				3,535,618
Materials — 0.6%
AZ Chem US, Inc., 0.00%, 06/11/21^@(b)		98,000		99,052
FMG Resources (August 2006) Pty LTD (FMG America Finance, Inc.), 3.75%, 06/28/19^@		640,578		641,808
Ineos US Finance LLC, 3.75%, 05/04/18^@		197,748		197,551
Total Materials				938,411

See accompanying Notes to Financial Statements.

132

TABLE OF CONTENTS

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

June 30, 2014


Investments	Principal/ Shares		Value
Telecommunication Services — 0.8%
Crown Castle Operating Co., 3.00%, 01/31/21^@	$	418,947	$	419,414
Level 3 Financing, Inc., 4.00%, 01/15/20^@		225,000		225,516
Windstream Corp., 3.50%, 01/23/20^@		565,752		565,664
Total Telecommunication Services				1,210,594
Utilities — 0.3%
NRG Energy, Inc., 2.75%, 07/01/18^@		473,258		472,962
Total Term Loans (Cost $21,039,002)				21,045,792
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 0.5%
BNY Mellon Securities Lending Overnight Fund, 0.11%^(c)(Cost $845,961)		845,961		845,961
Total Investments — 100.0% (Cost $154,332,631)				154,733,606
Other Assets in Excess of Liabilities — 0.0%^†				77,165
Net Assets — 100.0%			$	154,810,771

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 June 30, 2014.

Represents step coupon bond. Rate shown reflects the rate in effect as of June 30, 2014.

(a)

All or a portion of security is on loan. The aggregate market value of the securities on loan is $3,031,357; the aggregate market value of the collateral held by the fund is $3,070,939. The aggregate market value of the collateral includes non-cash U.S. Treasury securities collateral having a value of $2,224,978.

(b)

This Loan will settle after June 30, 2014 at which time the interest rate will be determined.

(c)

Rate shown reflects the 1-day yield as of June 30, 2014.

See accompanying Notes to Financial Statements.

133

TABLE OF CONTENTS

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

June 30, 2014

SUMMARY OF SCHEDULE OF INVESTMENTS


	% of Net Assets
Asset Backed Securities		22.7	%
Commercial Mortgage Backed Securities		12.5
Consumer Discretionary		7.0
Consumer Staples		1.2
Energy		1.9
Financials		12.6
Fixed Income		13.5
Foreign Government		0.2
Health Care		2.2
Industrials		6.9
Information Technology		2.7
Materials		1.2
Non-Agency Mortgage-Backed Securities		1.7
Residential Mortgage Backed Securities		4.1
Telecommunication Services		2.3
U.S. Government Agency Securities		1.6
U.S. Treasury Notes		4.2
Utilities		1.0
Money Market Fund		0.5
Total Investments		100.0
Other Assets in Excess of Liabilities		0.0	^†
Net Assets		100.0	%

†

Less than 0.05%.

See accompanying Notes to Financial Statements.

134

TABLE OF CONTENTS

ADVISORSHARES PERITUS HIGH YIELD ETF
Schedule of Investments

June 30, 2014


Investments	Principal		Value
CORPORATE BONDS — 55.1%
Advertising — 4.2%
Affinion Group, Inc., 7.88%, 12/15/18^(a)	$	17,254,000	$	15,744,275
Sitel LLC/Sitel Finance Corp., 11.00%, 08/01/17^‡		11,960,000		12,797,200
Sitel LLC/Sitel Finance Corp., 11.50%, 04/01/18^(a)		16,575,000		16,409,250
Total Advertising				44,950,725
Aerospace/Defense — 0.7%
Erickson Air-Crane, Inc., 8.25%, 05/01/20^(a)		6,795,000		7,015,837
Agriculture — 1.1%
Southern States Cooperative, Inc., 10.00%, 08/15/21^‡		11,135,000		11,357,700
Auto Manufacturers — 1.3%
Navistar International Corp., 8.25%, 11/01/21^(a)		13,651,000		14,299,423
Auto Parts & Equipment — 1.6%
UCI International, Inc., 8.63%, 02/15/19		17,765,000		16,965,575
Banks — 1.5%
Creditcorp, 12.00%, 07/15/18^‡		15,630,000		16,489,650
Beverages — 1.7%
Innovation Ventures LLC/Innovation Ventures Finance Corp., 9.50%, 08/15/19^‡^(a)		18,775,000		18,587,250
Coal — 3.1%
Arch Coal, Inc., 9.88%, 06/15/19^(a)		22,938,000		19,669,335
Murray Energy Corp., 8.63%, 06/15/21^‡		12,750,000		13,865,625
Total Coal				33,534,960
Commercial Services — 5.3%
DynCorp International, Inc., 10.38%, 07/01/17^(a)		12,919,000		13,516,504
Harland Clarke Holdings Corp., 9.25%, 03/01/21^‡		15,890,000		16,704,362
Speedy Cash Intermediate Holdings Corp., 10.75%, 05/15/18^‡^(a)		16,519,000		16,849,380
StoneMor Partners LP/Cornerstone Family Services of WV, 7.88%, 06/01/21^‡		9,800,000		10,339,000
Total Commercial Services				57,409,246

See accompanying Notes to Financial Statements.

135

TABLE OF CONTENTS

ADVISORSHARES PERITUS HIGH YIELD ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Principal		Value
Diversified Financial Services — 2.9%
CNG Holdings, Inc., 9.38%, 05/15/20^‡	$	20,454,000	$	17,206,927
GFI Group, Inc., 10.38%, 07/19/18		12,594,000		13,727,460
Total Diversified Financial Services				30,934,387
Electrical Components & Equipment — 0.7%
Artesyn Escrow, Inc., 9.75%, 10/15/20^‡		7,470,000		7,413,975
Electronics — 1.1%
KEMET Corp., 10.50%, 05/01/18		11,645,000		12,372,813
Environmental Control — 1.7%
Nuverra Environmental Solutions, Inc., 9.88%, 04/15/18^(a)		17,335,000		18,115,075
Food — 1.6%
American Seafoods Group LLC/American Seafoods Finance, Inc., 10.75%, 05/15/16^‡^(a)		16,845,000		16,887,112
Forest Products & Paper — 0.8%
Verso Paper Holdings LLC/Verso Paper, Inc., 11.75%, 01/15/19^(a)		7,825,000		8,274,938
Healthcare – Services — 2.6%
21st Century Oncology, Inc., 8.88%, 01/15/17		11,938,000		12,370,752
Vantage Oncology LLC/Vantage Oncology Finance Co., 9.50%, 06/15/17^‡		16,165,000		16,084,175
Total Healthcare – Services				28,454,927
Leisure Time — 1.5%
ICON Health & Fitness, Inc., 11.88%, 10/15/16^‡^(a)		16,600,000		16,413,250
Metal Fabricate/Hardware — 1.2%
American Piping Products, Inc., 12.88%, 11/15/17^‡		11,785,000		13,096,081
Miscellaneous Manufacturing — 2.0%
Iracore International Holdings, Inc., 9.50%, 06/01/18^‡		14,895,000		15,639,750
J.B. Poindexter & Co., Inc., 9.00%, 04/01/22^‡		5,493,000		6,138,428
Total Miscellaneous Manufacturing				21,778,178
Oil & Gas — 6.1%
Endeavour International Corp., 12.00%, 03/01/18^(a)		17,756,000		16,335,520
Quicksilver Resources, Inc., 9.13%, 08/15/19^(a)		16,925,000		15,782,562

See accompanying Notes to Financial Statements.

136

TABLE OF CONTENTS

ADVISORSHARES PERITUS HIGH YIELD ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Principal		Value
Oil & Gas — 6.1% (continued)
Talos Production LLC/Talos Production Finance, Inc., 9.75%, 02/15/18^‡	$	15,650,000	$	16,667,250
Venoco, Inc., 8.88%, 02/15/19		16,725,000		16,348,688
Total Oil & Gas				65,134,020
Oil & Gas Services — 3.0%
Forbes Energy Services Ltd., 9.00%, 06/15/19		14,897,000		15,530,123
Seitel, Inc., 9.50%, 04/15/19^(a)		15,440,000		16,675,200
Total Oil & Gas Services				32,205,323
Pharmaceuticals — 2.9%
BioScrip, Inc., 8.88%, 02/15/21^‡		14,520,000		15,191,550
Lantheus Medical Imaging, Inc., 9.75%, 05/15/17		15,495,000		16,153,537
Total Pharmaceuticals				31,345,087
Retail — 0.5%
Ferrellgas Partners LP, 8.63%, 06/15/20		4,552,000		4,882,020
Telecommunications — 5.5%
EarthLink Holdings Corp., 7.38%, 06/01/20		4,230,000		4,531,388
EarthLink Holdings Corp., 8.88%, 05/15/19^(a)		16,450,000		16,532,250
FairPoint Communications, Inc., 8.75%, 08/15/19^‡		5,150,000		5,574,875
Frontier Communications Corp., 7.63%, 04/15/24^(a)		15,645,000		16,916,156
Trilogy International Partners LLC/Trilogy International Finance, Inc., 10.25%, 08/15/16^‡		14,740,000		15,219,050
Total Telecommunications				58,773,719
Transportation — 0.5%
Era Group, Inc., 7.75%, 12/15/22		5,415,000		5,780,512
Total Corporate Bonds (Cost $584,172,818)				592,471,783
FOREIGN BONDS — 18.2%
Airlines — 2.5%
Air Canada, 7.75%, 04/15/21 (Canada)^‡		16,650,000		17,732,250
Air Canada, 8.75%, 04/01/20 (Canada)^‡		8,475,000		9,534,375
Total Airlines				27,266,625

See accompanying Notes to Financial Statements.

137

TABLE OF CONTENTS

ADVISORSHARES PERITUS HIGH YIELD ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Principal/ Shares			Value
Beverages — 1.6%
CEDC Finance Corp. International, Inc., 10.38%, 04/30/18 (Poland)#	$	18,213,419		$	17,179,443
Environmental Control — 2.3%
Tervita Corp., 8.00%, 11/15/18 (Canada)^‡		6,685,000			6,985,825
Tervita Corp., 10.88%, 02/15/18 (Canada)^‡(a)		17,605,000			17,847,069
Total Environmental Control					24,832,894
Mining — 2.7%
HudBay Minerals, Inc., 9.50%, 10/01/20 (Canada)		10,956,000			12,106,380
IAMGOLD Corp., 6.75%, 10/01/20 (Canada)^‡		18,530,000			17,232,900
Total Mining					29,339,280
Miscellaneous Manufacturing — 0.8%
Trinseo Materials Operating SCA/Trinseo Materials Finance, Inc., 8.75%, 02/01/19 (Luxembourg)		7,995,000			8,634,600
Oil & Gas — 3.0%
Connacher Oil And Gas Ltd., 8.50%, 08/01/19 (Canada)^‡^(a)		19,450,000			15,705,875
Lightstream Resources Ltd., 8.63%, 02/01/20 (Canada)^‡		15,435,000			16,283,925
Total Oil & Gas					31,989,800
Telecommunications — 1.5%
NII International Telecom SCA, 11.38%, 08/15/19 (Luxembourg)^‡^(a)		18,455,000			16,471,088
Transportation — 3.8%
CHC Helicopter SA, 9.25%, 10/15/20 (Luxembourg)		223,740			244,995
CHC Helicopter SA, 9.38%, 06/01/21 (Luxembourg)^(a)		13,645,000			14,634,262
Global Ship Lease, Inc., 10.00%, 04/01/19 (Marshall Islands)^‡		14,950,000			16,146,000
Navios Maritime Holdings, Inc., 8.13%, 02/15/19 (Marshall Islands)^(a)		9,482,000			10,015,363
Total Transportation			��		41,040,620
Total Foreign Bonds (Cost $188,214,186)					196,754,350

See accompanying Notes to Financial Statements.

138

TABLE OF CONTENTS

ADVISORSHARES PERITUS HIGH YIELD ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Principal/ Shares		Value
COMMON STOCKS — 8.4%
Oil & Gas — 5.3%
Calumet Specialty Products Partners LP	$	502,134	$	15,967,861
Canadian Oil Sands Ltd. (Canada)		698,034		15,817,451
Long Run Exploration Ltd. (Canada)^(a)		1,346,917		7,122,362
Surge Energy, Inc. (Canada)		2,483,344		18,187,515
Total Oil & Gas				57,095,189
Pipelines — 1.6%
Niska Gas Storage Partners LLC, Class U		1,089,388		16,765,681
Retail — 1.5%
Ferrellgas Partners LP^(a)		593,335		16,233,646
Total Common Stocks (Cost $80,090,910)				90,094,516
TERM LOANS — 15.1%
Agriculture — 0.6%
North Atlantic Trading Co., Inc., 6.84%, 01/13/20		5,935,588		5,987,526
North Atlantic Trading Co., Inc., 8.75%, 01/13/20		35,294		35,603
Total Agriculture				6,023,129
Apparel — 1.4%
SK Spice Sarl, 9.50%, 09/30/18 (Luxembourg)		14,673,041		14,911,478
Chemicals — 1.1%
American Pacific Corp., 7.00%, 02/27/19		11,970,000		12,149,550
Food — 1.1%
Shearer's Foods LLC, 06/30/22		12,000,000		12,135,000
Forest Products & Paper — 1.7%
NewPage Corp., 9.50%, 02/05/21		18,000,000		18,108,720
Healthcare – Services — 3.2%
Aurora Diagnostics LLC, 6.75%, 05/26/16		17,295,556		16,928,025
Radnet Management, Inc., 8.00%, 03/19/21		17,300,000		17,429,750
Total Healthcare – Services				34,357,775

See accompanying Notes to Financial Statements.

139

TABLE OF CONTENTS

ADVISORSHARES PERITUS HIGH YIELD ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Principal/ Shares		Value
Oil & Gas — 1.4%
Teine Energy Ltd, 7.50%, 05/17/19 (Canada)	$	14,792,390	$	14,995,785
Software — 1.4%
Greenway Medical Technologies, 9.25%, 11/04/21		14,753,846		14,882,942
Telecommunications — 1.6%
Global Tel*Link Corp, 9.00%, 11/20/20		17,375,000		17,317,054
Transportation — 1.6%
YRC Worldwide, Inc., 8.00%, 02/12/19		16,919,987		17,279,537
Total Term Loans (Cost $160,949,709)				162,160,970
MONEY MARKET FUND — 1.9%
BlackRock Liquidity Funds TempFund Portfolio – Dollar Class, 0.02%^(b) (Cost $20,161,488)		20,161,488		20,161,488
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 15.4%
BNY Mellon Securities Lending Overnight Fund, 0.11%^(c) (Cost $166,306,561)		166,306,561		166,306,561
Total Investments — 114.1% (Cost $1,199,895,672)				1,227,949,668
Liabilities in Excess of Other Assets — (14.1%)				(151,953,078	)
Net Assets — 100.0%			$	1,075,996,590

LP — Limited Partnership

‡

Represents step coupon bond. Rate shown reflects the rate in effect at June 30, 2014.

(a)

All or a portion of security is on loan. The aggregate market value of the securities on loan is $162,332,391; the aggregate market value of the collateral held by the fund is $166,306,561.

(b)

Rate shown reflects the 7-day yield as of June 30, 2014.

(c)

Rate shown reflects the 1-day yield as of June 30, 2014.

See accompanying Notes to Financial Statements.

140

TABLE OF CONTENTS

ADVISORSHARES PERITUS HIGH YIELD ETF
Schedule of Investments (continued)

June 30, 2014

SUMMARY OF SCHEDULE OF INVESTMENTS


	% of Net Assets
Advertising		4.2	%
Aerospace/Defense		0.7
Agriculture		1.7
Airlines		2.5
Apparel		1.4
Auto Manufacturers		1.3
Auto Parts & Equipment		1.6
Banks		1.5
Beverages		3.3
Chemicals		1.1
Coal		3.1
Commercial Services		5.3
Diversified Financial Services		2.9
Electrical Components & Equipment		0.7
Electronics		1.1
Environmental Control		4.0
Food		2.7
Forest Products & Paper		2.5
Healthcare – Services		5.8
Leisure Time		1.5
Metal Fabricate/Hardware		1.2
Mining		2.7
Miscellaneous Manufacturing		2.8
Oil & Gas		15.8
Oil & Gas Services		3.0
Pharmaceuticals		2.9
Pipelines		1.6
Retail		2.0
Software		1.4
Telecommunications		8.6
Transportation		5.9
Money Market Fund		17.3
Total Investments		114.1
Liabilities in Excess of Other Assets		(14.1	)
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

141

TABLE OF CONTENTS

ADVISORSHARES PRING TURNER BUSINESS CYCLE ETF
Schedule of Investments

June 30, 2014


Investments	Shares		Value
COMMON STOCKS — 57.3%
Banks — 4.2%
Royal Bank of Canada (Canada)^(a)		1,465	$	104,645
Wells Fargo & Co.		2,101		110,429
Total Banks				215,074
Coal — 3.3%
Alliance Resource Partners, LP		2,404		112,147
Peabody Energy Corp.		3,500		57,225
Total Coal				169,372
Commercial Services — 3.0%
Apollo Education Group, Inc., Class A*		4,865		152,031
Electric — 2.0%
MDU Resources Group, Inc.		2,896		101,650
Holding Companies – Diversified — 1.6%
Leucadia National Corp.		3,147		82,514
Insurance — 4.8%
American International Group, Inc.		2,201		120,130
Aon PLC (United Kingdom)		1,353		121,892
Total Insurance				242,022
Iron/Steel — 2.1%
Reliance Steel & Aluminum Co.		1,411		104,005
Mining — 9.0%
Alamos Gold, Inc. (Canada)		5,071		51,420
Franco-Nevada Corp. (Canada)		2,069		118,637
Royal Gold, Inc.		1,687		128,414
Sandstorm Gold Ltd. (Canada)*		13,932		96,409
Stillwater Mining Co.*		3,503		61,478
Total Mining				456,358
Oil & Gas — 8.2%
Apache Corp.		1,182		118,933
Enerplus Corp. (Canada)^(a)		6,411		161,429

See accompanying Notes to Financial Statements.

142

TABLE OF CONTENTS

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

June 30, 2014


Investments	Shares		Value
Oil & Gas — 8.2% (Continued)
Whiting Petroleum Corp.*		1,712	$	137,388
Total Oil & Gas				417,750
Pipelines — 3.6%
Kinder Morgan, Inc.		2,241		81,259
Spectra Energy Corp.		2,421		102,844
Total Pipelines				184,103
Real Estate Investment Trusts — 2.1%
Senior Housing Properties Trust		4,422		107,410
Semiconductors — 2.7%
Intel Corp.		4,445		137,350
Software — 2.2%
Microsoft Corp.		2,625		109,462
Telecommunications — 4.0%
Cisco Systems, Inc.		4,636		115,204
Verizon Communications, Inc.		1,748		85,530
Total Telecommunications				200,734
Transportation — 4.5%
Navios Maritime Partners, LP (Greece)		6,203		120,586
Union Pacific Corp.		1,058		105,536
Total Transportation				226,122
Total Common Stocks (Cost $2,373,296)				2,905,957
EXCHANGE TRADED FUNDS — 30.6%
Commodity Fund — 4.8%
PowerShares DB Agriculture Fund*^(a)		4,554		125,053
PowerShares DB Commodity Index Tracking Fund*		4,554		121,045
Total Commodity Fund				246,098
Debt Fund — 19.6%
AdvisorShares Peritus High Yield ETF^†		4,399		234,467
Guggenheim BulletShares 2015 High Yield Corporate Bond ETF		8,289		223,156
iShares International Preferred Stock ETF		3,941		99,353

See accompanying Notes to Financial Statements.

143

TABLE OF CONTENTS

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

June 30, 2014


Investments	Shares		Value
Debt Fund — 19.6% (Continued)
PIMCO Enhanced Short Maturity ETF		438	$	44,413
PowerShares Senior Loan Portfolio^(a)		8,842		219,901
SPDR Barclays Long Term Treasury ETF		2,600		172,380
Total Debt Fund				993,670
Equity Fund — 6.2%
Global X Silver Miners ETF		12,400		175,832
SPDR S&P International Dividend ETF^(a)		2,700		138,510
Total Equity Fund				314,342
Total Exchange Traded Funds (Cost $1,533,991)				1,554,110
MONEY MARKET FUND — 11.4%
Dreyfus Government Cash Management – Investor Shares, 0.01%^(b) (Cost $579,080)		579,080		579,080
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 8.5%
BNY Mellon Securities Lending Overnight Fund, 0.11%^(c) (Cost $429,413)		429,413		429,413
Total Investments — 107.8% (Cost $4,915,780)				5,468,560
Liabilities in Excess of Other Assets — (7.8)%				(394,324	)
Net Assets — 100.0%			$	5,074,236

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 $418,770; the aggregate market value of the collateral held by the fund is $429,413.

(b)

Rate shown reflects the 7-day yield as of June 30, 2014.

(c)

Rate shown reflects the 1-day yield as of June 30, 2014.

See accompanying Notes to Financial Statements.

144

TABLE OF CONTENTS

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

June 30, 2014

SUMMARY OF SCHEDULE OF INVESTMENTS


	% of Net Assets
Banks		4.2	%
Coal		3.3
Commercial Services		3.0
Commodity Fund		4.8
Debt Fund		19.6
Electric		2.0
Equity Fund		6.2
Holding Companies – Diversified		1.6
Insurance		4.8
Iron/Steel		2.1
Mining		9.0
Oil & Gas		8.2
Pipelines		3.6
Real Estate Investment Trusts		2.1
Semiconductors		2.7
Software		2.2
Telecommunications		4.0
Transportation		4.5
Money Market Fund		19.9
Total Investments		107.8
Liabilities in Excess of Other Assets		(7.8	)
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

145

TABLE OF CONTENTS

ADVISORSHARES QAM EQUITY HEDGE ETF
Schedule of Investments

June 30, 2014


Investments	Shares		Value
EXCHANGE TRADED NOTE — 0.7%
Equity Fund — 0.7%
JPMorgan Alerian MLP Index ETN (Cost $50,066)		1,035	$	54,214
EXCHANGE TRADED FUNDS — 94.7%
Commodity Fund — 0.7%
SPDR Gold Shares*		442		56,593
Currency Fund — 0.4%
WisdomTree Indian Rupee Strategy Fund*		1,512		32,342
Debt Fund — 26.5%
AdvisorShares Sage Core Reserves ETF^{†^(a)}		4,200		419,202
Guggenheim Enhanced Short Duration ETF^(a)		8,346		419,971
iShares Short Treasury Bond ETF^(a)		4,908		541,205
SPDR Barclays 1 – 3 Month T-Bill ETF^(a)*		11,786		539,327
SPDR SSgA Ultra Short Term Bond ETF		8,669		347,454
Total Debt Fund				2,267,159
Equity Fund — 67.1%
EGShares India Consumer ETF*		301		8,467
EGShares India Infrastructure Index Fund		242		3,589
EGShares India Small Cap ETF		1,093		19,029
First Trust Dow Jones Internet Index Fund*		2,684		159,913
First Trust Europe AlphaDEX Fund		393		13,633
First Trust ISE Cloud Computing Index Fund		345		9,332
Global X Brazil Consumer ETF		3,517		62,145
Global X Brazil Financials ETF		418		5,012
Global X Brazil Mid Cap ETF		4,270		57,816
Global X Junior MLP ETF		428		7,618
Global X Nigeria Index ETF		1,255		19,842
Guggenheim Canadian Energy Income ETF		502		8,755
Guggenheim China Small Cap Index ETF		11,554		291,276
Guggenheim China Technology ETF		2,339		84,906
Guggenheim Raymond James SB-1 Equity ETF		3,051		107,822
Guggenheim S&P 500 Equal Weight Consumer Discretionary ETF		283		22,832
Guggenheim S&P 500 Equal Weight Energy ETF		441		40,841

See accompanying Notes to Financial Statements.

146

TABLE OF CONTENTS

ADVISORSHARES QAM EQUITY HEDGE ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Shares		Value
Equity Fund — 67.1% (continued)
Guggenheim S&P 500 Equal Weight ETF		6,407	$	491,481
Guggenheim S&P 500 Equal Weight Financials ETF		2,850		118,987
Guggenheim S&P 500 Equal Weight Healthcare ETF		1,385		171,006
Guggenheim S&P 500 Equal Weight Technology ETF		757		63,429
iShares Microcap ETF		1,495		113,799
iShares MSCI EAFE ETF		1,334		91,206
iShares MSCI Emerging Markets ETF		1,119		48,374
iShares MSCI Emerging Markets Latin America ETF		740		33,589
iShares MSCI Frontier 100 ETF		2,638		95,153
iShares MSCI Germany Small-Cap ETF, Class C		1,180		50,893
iShares MSCI Hong Kong ETF		86		1,796
iShares MSCI Hong Kong Small-Cap ETF		3,284		97,075
iShares MSCI India Small-Cap ETF		1,066		34,059
iShares MSCI Israel Capped ETF		161		8,408
iShares MSCI Pacific Ex-Japan ETF		243		11,968
iShares MSCI Poland Capped ETF		305		8,952
iShares MSCI South Africa ETF		37		2,542
iShares MSCI South Korea Capped ETF		283		18,401
iShares MSCI Taiwan ETF		601		9,496
iShares MSCI United Kingdom ETF		471		9,834
iShares MSCI United Kingdom Small-Cap ETF		3,583		149,085
iShares MSCI USA Momentum Index Fund		3,481		220,208
iShares Nasdaq Biotechnology ETF		399		102,555
iShares North American Natural Resources ETF		5,091		254,295
iShares Russell 1000 Growth ETF		2,816		256,059
iShares Russell 1000 Value ETF		3,913		396,270
iShares Russell 2000 Growth ETF		1,737		240,436
iShares U.S. Broker-Dealers ETF		3,772		142,054
iShares U.S. Medical Devices ETF		1,877		191,492
Market Vectors Agribusiness ETF		124		6,821
Market Vectors Egypt Index ETF		191		12,877
Market Vectors Global Alternative Energy ETF		780		51,277
Market Vectors Gulf States Index ETF		1,581		46,892
Market Vectors Indonesia Index ETF		1,659		40,894

See accompanying Notes to Financial Statements.

147

TABLE OF CONTENTS

ADVISORSHARES QAM EQUITY HEDGE ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Shares			Value
Equity Fund — 67.1% (continued)
Market Vectors Russia ETF		1,068		$	28,120
Market Vectors Russia Small-Cap ETF		2,295			80,164
Market Vectors Uranium+Nuclear Energy ETF		226			11,871
Market Vectors Vietnam ETF		1,290			26,832
PowerShares Dynamic Market Portfolio		2,270			165,483
PowerShares Fundamental Pure Small Growth Portfolio		4,500			112,162
PowerShares S&P SmallCap Financials Portfolio		442			17,490
SPDR Russell/Nomura Small Cap Japan ETF		2,112			110,099
SPDR S&P Emerging Markets SmallCap ETF		599			30,130
SPDR S&P Small Cap Emerging Asia Pacific ETF		173			7,671
Vanguard FTSE All World Ex-US Small-Cap ETF		377			41,907
Vanguard REIT ETF		524			39,216
Vanguard Small-Cap ETF		4,114			481,832
WisdomTree Europe SmallCap Dividend Fund		860			51,961
Yorkville High Income Infrastructure MLP ETF		755			17,169
Total Equity Fund					5,736,598
Total Exchange Traded Funds (Cost $7,590,091)					8,092,692
MONEY MARKET FUND — 5.5%
JP Morgan Prime Money Market Fund — Institutional Class, 0.01%^(b) (Cost $471,792)		471,792			471,792
Total Investments Before Securities Sold, Not Yet Purchased (Cost $8,111,949)					8,618,698
Securities Sold, Not Yet Purchased — (11.6)%
EXCHANGE TRADED FUNDS — (11.6)%
Currency Fund — (5.0)%
CurrencyShares British Pound Sterling Trust*		(944	)		(158,979	)
CurrencyShares Euro Currency Trust*		(336	)		(45,400	)
CurrencyShares Japanese Yen Trust*		(2,339	)		(225,129	)
Total Currency Fund					(429,508	)

See accompanying Notes to Financial Statements.

148

TABLE OF CONTENTS

ADVISORSHARES QAM EQUITY HEDGE ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Shares			Value
Equity Fund — (6.6)%
iShares Core S&P Small-Cap ETF		(1,692	)	$	(189,657	)
iShares Russell 2000 Value ETF		(2,839	)		(293,155	)
SPDR EURO STOXX 50 ETF		(1,896	)		(82,040	)
Total Equity Fund					(564,852	)
Total Securities Sold, Not Yet Purchased [Proceeds Received $(975,554)]					(994,360	)
Total Investments — 89.3% (Cost $7,136,395)					7,624,338
Other Assets in Excess of Liabilities — 10.7%					918,189
Net Assets — 100.0%				$	8,542,527

ETF — Exchange Traded Fund

ETN — Exchange Traded Note

Non-income producing security

†

Affiliated Company

(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 $2,681,457, which includes cash in the amount of $947,145 as of June 30, 2014.

(b)

Rate shown reflects the 7-day yield as of June 30, 2014.

SUMMARY OF SCHEDULE OF INVESTMENTS


	% of Net Assets
Commodity Fund		0.7	%
Currency Fund		(4.6	)
Debt Fund		26.5
Equity Fund		61.2
Money Market Fund		5.5
Total Investments		89.3
Other Assets in Excess of Liabilities		10.7
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

149

TABLE OF CONTENTS

ADVISORSHARES RANGER EQUITY BEAR ETF
Schedule of Investments

June 30, 2014


Investments	Shares			Value
EXCHANGE TRADED FUND — 18.5%
Debt Fund — 18.5%
AdvisorShares Sage Core Reserves ETF^† (Cost $29,997,150)		300,000		$	29,943,000
MONEY MARKET FUNDS — 36.4%
Fidelity Institutional Money Market Government Portfolio — Class III, 0.01%^(a)		56,520,341			56,520,341
Morgan Stanley Institutional Liquidity Funds — Government Portfolio, 0.04%^(a)		2,500,000			2,500,000
Total Money Market Funds (Cost $59,020,341)					59,020,341
Total Investments Before Securities Sold, Not Yet Purchased (Cost $89,017,491)					88,963,341
Securities Sold, Not Yet Purchased — (98.9)%
COMMON STOCKS — (98.9)%
Apparel — (1.7)%
Michael Kors Holdings Ltd.*		(31,800	)		(2,819,070	)
Banks — (3.1)%
Barclays PLC (United Kingdom)^(b)		(200,000	)		(2,922,000	)
Citigroup, Inc.		(44,000	)		(2,072,400	)
Total Banks					(4,994,400	)
Beverages — (1.4)%
Boston Beer Co., Inc. (The), Class A*		(9,900	)		(2,212,848	)
Building Materials — (3.5)%
Fortune Brands Home & Security, Inc.		(144,000	)		(5,749,920	)
Commercial Services — (2.2)%
Western Union Co. (The)		(205,000	)		(3,554,700	)
Computers — (9.6)%
3D Systems Corp.*		(95,000	)		(5,681,000	)
International Business Machines Corp.		(54,600	)		(9,897,342	)
Total Computers					(15,578,342	)

See accompanying Notes to Financial Statements.

150

TABLE OF CONTENTS

ADVISORSHARES RANGER EQUITY BEAR ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Shares			Value
Distribution/Wholesale — (3.6)%
Fastenal Co.		(50,000	)	$	(2,474,500	)
LKQ Corp.*		(125,000	)		(3,336,250	)
Total Distribution/Wholesale					(5,810,750	)
Diversified Financial Services — (5.1)%
Financial Engines, Inc.		(59,000	)		(2,671,520	)
Intercontinental Exchange, Inc.		(18,000	)		(3,400,200	)
Santander Consumer USA Holdings, Inc.		(112,000	)		(2,177,280	)
Total Diversified Financial Services					(8,249,000	)
Entertainment — (1.6)%
SeaWorld Entertainment, Inc.		(90,000	)		(2,549,700	)
Food — (3.4)%
Annie’s, Inc.*		(103,000	)		(3,483,460	)
United Natural Foods, Inc.*		(32,000	)		(2,083,200	)
Total Food					(5,566,660	)
Hand/Machine Tools — (1.6)%
Stanley Black & Decker, Inc.		(30,000	)		(2,634,600	)
Home Builders — (4.6)%
Lennar Corp., Class A		(70,000	)		(2,938,600	)
Winnebago Industries, Inc.*		(178,000	)		(4,482,040	)
Total Home Builders					(7,420,640	)
Internet — (17.2)%
Equinix, Inc.*		(14,000	)		(2,941,260	)
LinkedIn Corp., Class A*		(24,000	)		(4,115,280	)
Netflix, Inc.*		(11,500	)		(5,066,900	)
TripAdvisor, Inc.*		(37,000	)		(4,020,420	)
Trulia, Inc.*		(115,000	)		(5,448,700	)
Yelp, Inc.*		(53,000	)		(4,064,040	)
Zillow, Inc., Class A*		(15,000	)		(2,143,950	)
Total Internet					(27,800,550	)

See accompanying Notes to Financial Statements.

151

TABLE OF CONTENTS

ADVISORSHARES RANGER EQUITY BEAR ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Shares			Value
Leisure Time — (4.4)%
Arctic Cat, Inc.		(90,000	)	$	(3,547,800	)
Norwegian Cruise Line Holdings Ltd.*		(112,000	)		(3,550,400	)
Total Leisure Time					(7,098,200	)
Pharmaceuticals — (4.8)%
Catamaran Corp.*		(74,000	)		(3,267,840	)
Perrigo Co. PLC		(31,000	)		(4,518,560	)
Total Pharmaceuticals					(7,786,400	)
Pipelines — (2.2)%
Enbridge Energy Partners LP		(54,000	)		(1,994,220	)
MarkWest Energy Partners LP		(23,200	)		(1,660,656	)
Total Pipelines					(3,654,876	)
Real Estate — (1.8)%
Realogy Holdings Corp.*		(77,000	)		(2,903,670	)
Retail — (11.6)%
Conn’s, Inc.*		(45,000	)		(2,222,550	)
Kate Spade & Co.*		(50,000	)		(1,907,000	)
Lululemon Athletica, Inc. (Canada)*		(70,500	)		(2,853,840	)
PVH Corp.		(22,400	)		(2,611,840	)
Restoration Hardware Holdings, Inc.*		(21,000	)		(1,954,050	)
Sally Beauty Holdings, Inc.*		(106,000	)		(2,658,480	)
Signet Jewelers Ltd.		(27,000	)		(2,985,930	)
Tiffany & Co.		(16,500	)		(1,654,125	)
Total Retail					(18,847,815	)
Semiconductors — (3.3)%
Cree, Inc.*		(72,500	)		(3,621,375	)
Exar Corp.*		(152,000	)		(1,717,600	)
Total Semiconductors					(5,338,975	)

See accompanying Notes to Financial Statements.

152

TABLE OF CONTENTS

ADVISORSHARES RANGER EQUITY BEAR ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Shares			Value
Software — (5.8)%
E2open, Inc.*		(71,000	)	$	(1,467,570	)
Informatica Corp.*		(89,000	)		(3,172,850	)
Salesforce.com, Inc.*		(81,000	)		(4,704,480	)
Total Software					(9,344,900	)
Telecommunications — (4.3)%
CenturyLink, Inc.		(80,000	)		(2,896,000	)
Frontier Communications Corp.		(420,000	)		(2,452,800	)
Windstream Holdings, Inc.		(155,893	)		(1,552,694	)
Total Telecommunications					(6,901,494	)
Textiles — (2.1)%
Mohawk Industries, Inc.*		(24,700	)		(3,416,998	)
Total Securities Sold, Not Yet Purchased [Proceeds Received $(151,877,901)]					(160,234,508	)
Total Investments — (44.0)% [(Cost $(62,860,410)]					(71,271,167	)
Other Assets in Excess of Liabilities — 144.0%					233,223,129
Net Assets — 100.0%				$	161,951,962

ETF — Exchange Traded Fund

LP — Limited Partnership

PLC — Public Limited Company

†

Affiliated Company

Non-income producing security

(a)

Rate shown reflects the 7-day yield as of June 30, 2014.

(b)

American Depositary Receipt.

Cash of $160,546,760 has been segregated to cover margin requirement for open short sales as of June 30, 2014.

See accompanying Notes to Financial Statements.

153

TABLE OF CONTENTS

ADVISORSHARES RANGER EQUITY BEAR ETF
Schedule of Investments (continued)

June 30, 2014

SUMMARY OF SCHEDULE OF INVESTMENTS


	% of Net Assets
Apparel		(1.7	)%
Banks		(3.1	)
Beverages		(1.4	)
Building Materials		(3.5	)
Commercial Services		(2.2	)
Computers		(9.6	)
Debt Fund		18.5
Distribution/Wholesale		(3.6	)
Diversified Financial Services		(5.1	)
Entertainment		(1.6	)
Food		(3.4	)
Hand/Machine Tools		(1.6	)
Home Builders		(4.6	)
Internet		(17.2	)
Leisure Time		(4.4	)
Pharmaceuticals		(4.8	)
Pipelines		(2.2	)
Real Estate		(1.8	)
Retail		(11.6	)
Semiconductors		(3.3	)
Software		(5.8	)
Telecommunications		(4.3	)
Textiles		(2.1	)
Money Market Funds		36.4
Total Investments		(44.0	)
Other Assets in Excess of Liabilities		144.0
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

154

TABLE OF CONTENTS

ADVISORSHARES SAGE CORE RESERVES ETF
Schedule of Investments

June 30, 2014


Investments	Principal		Value
CORPORATE BONDS — 42.5%
Banks — 7.3%
Bank of America Corp., 1.05%, 03/22/16^@	$	300,000	$	302,364
Bank of New York Mellon Corp. (The), 3.10%, 01/15/15		135,000		137,043
Capital One Financial Corp., 2.13%, 07/15/14		307,000		307,212
Citigroup, Inc., 6.38%, 08/12/14		305,000		307,038
Citigroup, Inc., 1.02%, 04/01/16^@		250,000		251,695
First Horizon National Corp., 5.38%, 12/15/15		325,000		343,926
Goldman Sachs Group, Inc. (The), 5.00%, 10/01/14		370,000		374,271
Morgan Stanley, 2.88%, 07/28/14		300,000		300,534
US Bancorp, 3.15%, 03/04/15		100,000		101,949
Wells Fargo & Co., Series G, 3.75%, 10/01/14		295,000		297,558
Total Banks				2,723,590
Chemicals — 1.9%
EI du Pont de Nemours & Co., 3.25%, 01/15/15		365,000		370,938
Sherwin-Williams Co. (The), 3.13%, 12/15/14		340,000		344,203
Total Chemicals				715,141
Commercial Services — 0.9%
Block Financial LLC, 5.13%, 10/30/14		350,000		354,109
Computers — 1.0%
Hewlett-Packard Co., 2.13%, 09/13/15		365,000		371,543
Diversified Financial Services — 4.7%
American Express Credit Corp., 5.13%, 08/25/14		350,000		352,508
American Express Credit Corp., 0.74%, 07/29/16^@		525,000		528,637
BlackRock, Inc., 3.50%, 12/10/14		245,000		248,559
Ford Motor Credit Co. LLC, 3.88%, 01/15/15		315,000		320,686
General Electric Capital Corp., Series A, 3.75%, 11/14/14		320,000		324,186
Total Diversified Financial Services				1,774,576

See accompanying Notes to Financial Statements.

155

TABLE OF CONTENTS

ADVISORSHARES SAGE CORE RESERVES ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Principal		Value
Electric — 3.5%
Duke Energy Corp., 3.95%, 09/15/14	$	420,000	$	423,054
Georgia Power Co., 0.55%, 03/15/16^@		156,000		155,949
PacifiCorp, 4.95%, 08/15/14		365,000		367,004
Public Service Electric & Gas Co., Series G, 0.85%, 08/15/14		375,000		375,298
Total Electric				1,321,305
Food — 2.0%
ConAgra Foods, Inc., 1.35%, 09/10/15		370,000		372,844
Kroger Co. (The), 4.95%, 01/15/15		360,000		368,660
Total Food				741,504
Gas — 1.1%
Consolidated Natural Gas Co., Series A, 5.00%, 12/01/14		420,000		427,914
Housewares — 1.1%
Newell Rubbermaid, Inc., 2.00%, 06/15/15		390,000		395,064
Insurance — 2.6%
Allstate Corp. (The), 5.00%, 08/15/14		310,000		311,829
CNA Financial Corp., 5.85%, 12/15/14		330,000		338,281
Prudential Financial, Inc., Series B, 5.10%, 09/20/14		320,000		323,284
Total Insurance				973,394
Media — 2.0%
Discovery Communications LLC, 3.70%, 06/01/15		355,000		365,567
Viacom, Inc., 1.25%, 02/27/15		370,000		372,129
Total Media				737,696
Mining — 1.0%
Freeport-McMoRan Copper & Gold, Inc., 1.40%, 02/13/15		370,000		371,521
Oil & Gas — 2.0%
Phillips 66, 1.95%, 03/05/15		370,000		373,765
Valero Energy Corp., 4.50%, 02/01/15		385,000		393,917
Total Oil & Gas				767,682
Pharmaceuticals — 1.1%
Express Scripts Holding Co., 2.10%, 02/12/15		425,000		429,354

See accompanying Notes to Financial Statements.

156

TABLE OF CONTENTS

ADVISORSHARES SAGE CORE RESERVES ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Principal		Value
Pipelines — 1.2%
Enbridge Energy Partners LP, 5.35%, 12/15/14	$	20,000	$	20,425
Kinder Morgan Energy Partners LP, 5.13%, 11/15/14		420,000		427,172
Total Pipelines				447,597
Real Estate Investment Trusts — 1.8%
ERP Operating LP, 5.25%, 09/15/14		315,000		317,964
Hospitality Properties Trust, 5.13%, 02/15/15		250,000		251,261
Simon Property Group LP, 5.63%, 08/15/14		100,000		100,629
Total Real Estate Investment Trusts				669,854
Retail — 3.5%
CVS Caremark Corp., 4.88%, 09/15/14		195,000		196,744
CVS Caremark Corp., 1.20%, 12/05/16		225,000		226,510
Macy’s Retail Holdings, Inc., 5.75%, 07/15/14		180,000		180,354
Target Corp., 1.13%, 07/18/14		325,000		325,120
Walgreen Co., 1.00%, 03/13/15		370,000		371,476
Total Retail				1,300,204
Telecommunications — 2.1%
AT&T, Inc., 2.50%, 08/15/15		365,000		373,028
Verizon Communications, Inc., 2.50%, 09/15/16		385,000		397,049
Total Telecommunications				770,077
Transportation — 1.7%
Norfolk Southern Corp., 5.26%, 09/17/14		249,000		251,457
Ryder System, Inc., 3.60%, 03/01/16		355,000		371,458
Total Transportation				622,915
Total Corporate Bonds (Cost $15,912,797)				15,915,040
FOREIGN BONDS — 11.4%
Banks — 3.2%
Abbey National Treasury Services PLC, 3.88%, 11/10/14 (United Kingdom)^‡		250,000		253,092
Bank of Nova Scotia, 1.85%, 01/12/15 (Canada)		320,000		322,788
Export-Import Bank of Korea, 5.88%, 01/14/15 (South Korea)		310,000		318,615

See accompanying Notes to Financial Statements.

157

TABLE OF CONTENTS

ADVISORSHARES SAGE CORE RESERVES ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Principal		Value
Banks — 3.2% (continued)
Royal Bank of Canada, Series G, 0.44%, 04/29/15 (Canada)^@	$	100,000	$	100,187
Royal Bank of Canada, Series G, 0.69%, 09/09/16 (Canada)^@		200,000		201,205
Total Banks				1,195,887
Beverages — 1.2%
Anheuser-Busch InBev Finance, Inc., 0.42%, 01/27/17 (Belgium)^@		450,000		450,864
Diversified Financial Services — 0.9%
Nomura Holdings, Inc., 5.00%, 03/04/15 (Japan)		250,000		257,049
Nomura Holdings, Inc., 1.68%, 09/13/16 (Japan)^@		100,000		101,713
Total Diversified Financial Services				358,762
Mining — 2.0%
Barrick Gold Corp., 2.90%, 05/30/16 (Canada)		355,000		366,575
BHP Billiton Finance USA Ltd., 1.00%, 02/24/15 (Australia)		370,000		371,814
Total Mining				738,389
Oil & Gas — 2.1%
Canadian Natural Resources Ltd., 4.90%, 12/01/14 (Canada)		350,000		356,286
Petroleos Mexicanos, 4.88%, 03/15/15 (Mexico)		410,000		421,992
Total Oil & Gas				778,278
Pharmaceuticals — 1.0%
Warner Chilcott Co. LLC/Warner Chilcott Finance LLC, 7.75%, 09/15/18 (Puerto Rico)		350,000		368,826
Telecommunications — 1.0%
Vodafone Group PLC, 1.63%, 03/20/17 (United Kingdom)		370,000		373,228
Total Foreign Bonds (Cost $4,264,767)				4,264,234
ASSET BACKED SECURITIES — 16.6%
Diversified Financial Services — 16.6%
Ally Auto Receivables Trust, Class A3, Series 2012-2, 0.74%, 04/15/16		52,293		52,360
Ally Auto Receivables Trust, Class A3, Series 2012-5, 0.62%, 03/15/17		335,408		335,971

See accompanying Notes to Financial Statements.

158

TABLE OF CONTENTS

ADVISORSHARES SAGE CORE RESERVES ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Principal		Value
Diversified Financial Services — 16.6% (continued)
AmeriCredit Automobile Receivables Trust, Class A3, Series 2012-3, 0.96%, 01/09/17	$	78,019	$	78,165
AmeriCredit Automobile Receivables Trust, Class A2B, Series 2013-5, 0.53%, 03/08/17^@		171,069		171,244
BA Credit Card Trust, Class A7, Series 2006-A7, 0.19%, 12/15/16^@		100,000		99,993
BA Credit Card Trust, Class A11, Series 2007-A11, 0.22%, 12/15/19^@		295,000		293,346
BMW Vehicle Owner Trust, Class A2, Series 2013-A, 0.41%, 02/25/16		69,790		69,812
Capital One Multi-Asset Execution Trust, Class A5, Series 2007-A5, 0.19%, 07/15/20^@		525,000		521,152
CarMax Auto Owner Trust, Class A3, Series 2012-1, 0.89%, 09/15/16		220,472		220,978
CarMax Auto Owner Trust, Class B, Series 2011-1, 2.63%, 11/15/16		230,000		233,349
CarMax Auto Owner Trust, Class A2, Series 2013-4, 0.52%, 11/15/16		294,363		294,615
CarMax Auto Owner Trust, Class A3, Series 2012-3, 0.52%, 07/17/17		299,015		299,321
Citibank Credit Card Issuance Trust, Class A2, Series 2013-A2, 0.43%, 05/26/20^@		600,000		600,712
Fifth Third Auto, Class A2, Series 2013-1, 0.59%, 03/15/16		232,029		232,212
Fifth Third Auto Trust, Class A3, Series 2013-A, 0.61%, 09/15/17		185,000		185,281
First National Master Note Trust, Class A, Series 2013-2, 0.68%, 10/15/19^@		325,000		325,490
Ford Credit Auto Owner Trust, Class A2, Series 2013-A, 0.38%, 11/15/15		19,858		19,860
GE Equipment Midticket LLC, Class A3, Series 2012-1, 0.60%, 05/23/16		203,391		203,570
Honda Auto Receivables Owner Trust, Class A2, Series 2013-1, 0.35%, 06/22/15		63,796		63,797
Huntington Auto Trust, Class A3, Series 2012-2, 0.51%, 04/17/17		345,000		345,327
Hyundai Auto Receivables Trust, Class A2, Series 2013-B, 0.53%, 03/15/16		61,210		61,250
Hyundai Auto Receivables Trust, Class A2, Series 2014-B, 0.44%, 02/15/17		341,000		341,158

See accompanying Notes to Financial Statements.

159

TABLE OF CONTENTS

ADVISORSHARES SAGE CORE RESERVES ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Principal		Value
Diversified Financial Services — 16.6% (continued)
Hyundai Auto Receivables Trust, Class A3, Series 2012-C, 0.53%, 04/17/17	$	320,000	$	320,323
Nissan Auto Receivables Owner Trust, Class A3, Series 2012-B, 0.46%, 10/17/16		255,855		255,990
Terwin Mortgage Trust, Class A3, Series 2005-8HE, 0.52%, 07/25/35^@‡		52,036		52,147
World Omni Auto Receivables Trust, Class A3, Series 2012-A, 0.64%, 02/15/17		236,228		236,614
World Omni Automobile Lease Securitization Trust, Class A2B, Series 2013-A, 0.47%, 05/16/16^@		284,784		285,070
Total Asset Backed Securities (Cost $6,196,002)				6,199,107
MORTGAGE BACKED SECURITIES — 21.0%
Commercial Mortgage Backed Securities — 21.0%
Banc of America Merrill Lynch Commercial Mortgage, Inc., Class A1A, Series 2004-5, 4.54%, 11/10/41		49,009		49,173
Banc of America Merrill Lynch Commercial Mortgage, Inc., Class A5, Series 2005-2, 4.86%, 07/10/43^@		318,579		325,043
Banc of America Merrill Lynch Commercial Mortgage, Inc., Class A4, Series 2005-5, 5.12%, 10/10/45^@		197,188		205,353
Banc of America Merrill Lynch Commercial Mortgage, Inc., Class A4, Series 2005-6, 5.18%, 09/10/47^@		350,000		366,039
Bear Stearns Commercial Mortgage Securities Trust, Class A2, Series 2005-PWR7, 4.95%, 02/11/41		77,673		77,660
Bear Stearns Commercial Mortgage Securities Trust, Class A4A, Series 2005-T20, 5.14%, 10/12/42^@		355,000		370,835
CD 2005-CD1 Commercial Mortgage Trust, Class A4, Series 2005-CD1, 5.40%, 07/15/44^@		317,336		330,106
Citigroup Commercial Mortgage Trust, Class AM, Series 2005-C3, 4.83%, 05/15/43^@		80,000		82,227
Credit Suisse First Boston Mortgage Securities Corp., Class A4, Series 2005-C3, 4.69%, 07/15/37		409,869		419,565
Credit Suisse First Boston Mortgage Securities Corp., Class A5, Series 2005-C4, 5.10%, 08/15/38^@		172,009		177,452
DBRR Trust, Class A, Series 2012-EZ1, 0.95%, 09/25/45^‡		32,889		32,918
GE Capital Commercial Mortgage Corp., Class A4, Series 2005-C2, 4.98%, 05/10/43^@		304,899		312,507

See accompanying Notes to Financial Statements.

160

TABLE OF CONTENTS

ADVISORSHARES SAGE CORE RESERVES ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Principal		Value
Commercial Mortgage Backed Securities — 21.0% (continued)
GE Capital Commercial Mortgage Corp., Class A5, Series 2005-C1, 4.77%, 06/10/48^@	$	345,000	$	350,531
GS Mortgage Securities Corp. II, Class A4A, Series 2005-GG4, 4.75%, 07/10/39		418,806		427,556
JPMorgan Chase Commercial Mortgage Securities Corp., Class B, Series 2004-C3, 4.96%, 01/15/42^@		103,127		105,049
JPMorgan Chase Commercial Mortgage Securities Trust, Class A4, Series 2005-LDP2, 4.74%, 07/15/42		335,000		343,046
LB-UBS Commercial Mortgage Trust, Class A4, Series 2005-C1, 4.74%, 02/15/30		283,002		286,418
LB-UBS Commercial Mortgage Trust, Class A4, Series 2005-C7, 5.20%, 11/15/30^@		350,000		360,485
LB-UBS Commercial Mortgage Trust, Class AJ, Series 2005-C3, 4.84%, 07/15/40		305,000		313,380
Morgan Stanley Capital I Trust, Class A5, Series 2005-T17, 4.78%, 12/13/41		326,589		329,787
Morgan Stanley Capital I Trust, Class A4A, Series 2005-HQ6, 4.99%, 08/13/42		300,000		308,257
Morgan Stanley Capital I Trust, Class A4A, Series 2005-T19, 4.89%, 06/12/47		295,650		304,884
Morgan Stanley Capital I Trust, Class A4, Series 2006-T21, 5.16%, 10/12/52^@		345,000		361,348
Morgan Stanley Capital I Trust, Class A5, Series 2005-IQ9, 4.70%, 07/15/56		390,171		393,372
Wachovia Bank Commercial Mortgage Trust, Class A4, Series 2005-C17, 5.08%, 03/15/42^@		121,406		123,394
Wachovia Bank Commercial Mortgage Trust, Class A7, Series 2005-C20, 5.12%, 07/15/42^@		406,573		420,312
Wachovia Bank Commercial Mortgage Trust, Class AMFX, Series 2005-C20, 5.18%, 07/15/42^@		295,000		308,001
Wachovia Bank Commercial Mortgage Trust, Class A4, Series 2005-C21, 5.41%, 10/15/44^@		342,745		357,941
Total Mortgage Backed Securities (Cost $7,927,406)				7,842,639

See accompanying Notes to Financial Statements.

161

TABLE OF CONTENTS

ADVISORSHARES SAGE CORE RESERVES ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Principal/ Shares		Value
MUNICIPAL BONDS — 1.6%
County of Santa Fe NM, Ad Valorem Property Tax GO, 2.50%, 07/01/14	$	90,000	$	90,000
New Jersey NJ Transit Corp., Government Grant Revenue, 5.25%, 09/15/14, (INS: AMBAC)		100,000		101,017
State of California, Ad Valorem Property Tax GO, 5.45%, 04/01/15		400,000		415,308
Total Municipal Bonds (Cost $605,713)				606,325
U.S. TREASURY NOTE — 2.3%
U.S. Treasury Note, 0.25%, 09/15/14 (Cost $875,267)		875,000		875,359
U.S. TREASURY BILL — 0.6%
U.S. Treasury Bill, 12/11/14^(a) (Cost $199,965)		200,000		199,958
MONEY MARKET FUND — 4.9%
JP Morgan US Government Money Market Fund — Institutional Class, 0.01%^(b) (Cost $1,840,417)		1,840,417		1,840,417
Total Investments — 100.9% (Cost $37,822,334)				37,743,079
Liabilities in Excess of Other Assets — (0.9%)				(324,267	)
Net Assets — 100.0%			$	37,418,812

AMBAC — American Municipal Bond Assurance Corporation

GO — General Obligation

INS — Insured

LP — Limited Partnership

PLC — Public Limited Company

Variable rate instrument. The interest rate shown reflects the rate in effect at June 30, 2014.

‡

(a)

Interest rate shown reflects the discount rate at time of purchase.

(b)

Rate shown reflects the 7-day yield as of June 30, 2014.

See accompanying Notes to Financial Statements.

162

TABLE OF CONTENTS

ADVISORSHARES SAGE CORE RESERVES ETF
Schedule of Investments (continued)

June 30, 2014

Futures contracts outstanding as of June 30, 2014:


Type	Broker		Expiration Date		Number of Contracts			Value at Trade Date			Value at June 30, 2014			Unrealized Appreciation
2-Year U.S. Treasury Note		Jefferies & Company Inc.		September 2014		(8	)	$	(1,757,399	)	$	(1,756,750	)	$	649

SUMMARY OF SCHEDULE OF INVESTMENTS


	% of Net Assets
Banks		10.5	%
Beverages		1.2
Chemicals		1.9
Commercial Mortgage Backed Securities		21.0
Commercial Services		0.9
Computers		1.0
Diversified Financial Services		22.2
Electric		3.5
Food		2.0
Gas		1.1
Housewares		1.1
Insurance		2.6
Media		2.0
Mining		3.0
Municipal		1.6
Oil & Gas		4.1
Pharmaceuticals		2.1
Pipelines		1.2
Real Estate Investment Trusts		1.8
Retail		3.5
Telecommunications		3.1
Transportation		1.7
U.S. Treasury Bill		0.6
U.S. Treasury Note		2.3
Money Market Fund		4.9
Total Investments		100.9
Liabilities in Excess of Other Assets		(0.9	)
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

163

TABLE OF CONTENTS

ADVISORSHARES SAGE CORE RESERVES ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Shares		Value
EXCHANGE TRADED FUNDS — 65.5%
Debt Fund — 8.4%
AdvisorShares Sage Core Reserves ETF^†		2,625	$	262,001
iShares 1 – 3 Year Credit Bond ETF		9,764		1,031,860
iShares Barclays 20+ Year Treasury Bond ETF		239		27,131
iShares iBoxx $High Yield Corporate Bond ETF		5,040		479,808
iShares JPMorgan USD Emerging Markets Bond ETF		4,310		496,814
Total Debt Fund				2,297,614
Equity Fund — 57.1%
Consumer Discretionary Select Sector SPDR Fund		8,715		581,639
Consumer Staples Select Sector SPDR Fund		24,014		1,071,505
Energy Select Sector SPDR Fund		8,560		856,856
Financial Select Sector SPDR Fund		54,189		1,232,258
Health Care Select Sector SPDR Fund		13,515		822,117
Industrial Select Sector SPDR Fund		15,171		820,144
iShares MSCI EAFE ETF		19,560		1,337,317
iShares MSCI Emerging Markets ETF		31,155		1,346,831
Materials Select Sector SPDR Fund		4,116		204,318
SPDR S&P 500 ETF Trust		30,361		5,942,255
SPDR S&P Oil & Gas Exploration & Production ETF		1,762		144,977
Technology Select Sector SPDR Fund		28,550		1,094,893
Utilities Select Sector SPDR Fund		5,624		248,918
Total Equity Fund				15,704,028
Total Exchange Traded Funds (Cost $16,521,276)				18,001,642
COMMON STOCKS — 9.7%
Aerospace/Defense — 0.5%
Raytheon Co.		1,353		124,814
Apparel — 1.1%
Hanesbrands, Inc.		1,725		169,809
VF Corp.		2,236		140,868
Total Apparel				310,677

See accompanying Notes to Financial Statements.

164

TABLE OF CONTENTS

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

June 30, 2014


Investments	Shares		Value
Banks — 1.1%
M&T Bank Corp.		1,161	$	144,022
Wells Fargo & Co.		2,728		143,384
Total Banks				287,406
Biotechnology — 0.5%
Gilead Sciences, Inc.*		1,670		138,460
Computers — 1.0%
Accenture PLC, Class A		1,701		137,509
Apple, Inc.		1,582		147,015
Total Computers				284,524
Electric — 0.5%
Exelon Corp.		3,771		137,566
Electronics — 0.5%
Thermo Fisher Scientific, Inc.		1,135		133,930
Food — 0.5%
Hormel Foods Corp.		2,814		138,871
Insurance — 0.5%
Travelers Cos., Inc. (The)		1,562		146,937
Machinery – Diversified — 0.5%
Rockwell Automation, Inc.		1,096		137,176
Metal Fabricate/Hardware — 0.5%
Valmont Industries, Inc.		891		135,388
Miscellaneous Manufacturing — 0.5%
General Electric Co.		5,058		132,924
Oil & Gas — 1.0%
Apache Corp.		1,500		150,930
Exxon Mobil Corp.		1,334		134,307
Total Oil & Gas				285,237
Software — 0.5%
CA, Inc.		4,622		132,836

See accompanying Notes to Financial Statements.

165

TABLE OF CONTENTS

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

June 30, 2014


Investments	Shares/ Principal/ Contracts			Value
Textiles — 0.5%
Mohawk Industries, Inc.*		1,018		$	140,830
Total Common Stocks (Cost $2,558,137)					2,667,576
U.S. TREASURY BILLS — 7.3%
U.S. Treasury Bill, 0.03%, 08/21/14^(a)	$	1,000,000			999,973
U.S. Treasury Bill, 0.03%, 10/16/14^(a)		1,000,000			999,885
Total U.S. Treasury Bills (Cost $1,999,604)					1,999,858
MONEY MARKET FUND — 6.7%
BlackRock Liquidity Funds-T-Fund Portfolio — Institutional Class, 0.01%^(b) (Cost $1,832,863)		1,832,863			1,832,863
PURCHASED PUT OPTION — 0.0%^**
SPDR S&P 500 ETF Trust Option expiring 09/20/14, Strike Price $193.00 (Cost $10,045)		27			8,707
Total Investments Before Written Options — 89.2% (Cost $22,921,925)					24,510,646
WRITTEN CALL OPTIONS — (0.1)%
Accenture PLC Option expiring 07/19/14, Strike Price $87.50		(17	)		(127	)
Apache Corp. Option expiring 07/19/14, Strike Price $105.00		(15	)		(1,177	)
Apple Inc. Option expiring 07/19/14, Strike Price $95.00		(15	)		(1,320	)
Consumer Discretionary Select Sector SPDR Fund Option expiring 07/19/14, Strike Price $67.00		(42	)		(2,184	)
Energy Select Sector SPDR Fund Option expiring 07/19/14, Strike Price $100.00		(38	)		(4,712	)
Gilead Sciences Inc. Option expiring 07/19/14, Strike Price $85.00		(16	)		(1,056	)
Hanesbrands Inc. Option expiring 07/19/14, Strike Price $100.00		(17	)		(1,615	)
Health Care Select Sector SPDR Fund Option expiring 07/19/14, Strike Price $61.00		(64	)		(3,072	)
Industrial Select Sector SPDR Fund Option expiring 07/19/14, Strike Price $55.00		(72	)		(1,152	)
iShares MSCI EAFE Option expiring 07/19/14, Strike Price $70.00		(84	)		(336	)
iShares MSCI Emerging Markets ETF Option expiring 07/19/14, Strike Price $44.00		(180	)		(3,240	)

See accompanying Notes to Financial Statements.

166

TABLE OF CONTENTS

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

June 30, 2014


Investments	Contracts			Value
WRITTEN CALL OPTIONS — (0.1)% (continued)
Materials Select Sector SPDR Fund Option expiring 07/19/14, Strike Price $50.00		(20	)	$	(570	)
Mohawk Industries Inc. Option expiring 07/19/14, Strike Price $140.00		(10	)		(1,650	)
SPDR S&P 500 ETF Trust Option expiring 07/19/14, Strike Price $197.00		(116	)		(10,440	)
SPDR S&P Oil & Gas Exploration & Production ETF Option expiring 07/19/14, Strike Price $87.00		(17	)		(323	)
Thermo Fisher Scientific Inc. Option expiring 07/19/14, Strike Price $125.00		(11	)		(413	)
Travelers Cos., Inc. (The) Option expiring 07/19/14, Strike Price $97.50		(15	)		(150	)
Utilities Select Sector SPDR Fund Option expiring 07/19/14, Strike Price $43.00		(11	)		(1,485	)
Utilities Select Sector SPDR Fund Option expiring 07/19/14, Strike Price $44.00		(5	)		(285	)
VF Corp. Option expiring 07/19/14, Strike Price $65.00		(22	)		(935	)
Wells Fargo & Co. Option expiring 07/19/14, Strike Price $55.00		(27	)		(149	)
Total Written Call Options [Premiums Received $(41,242)]					(36,391	)
WRITTEN PUT OPTIONS — (0.1)%
iShares 20+ Year Treasury Bond ETF Option expiring 07/19/14 @ $111.00		(62	)		(1,798	)
iShares iBoxx $High Yield Corporate Bond ETF Option expiring 07/19/14 @ $95.00		(110	)		(6,325	)
iShares JP Morgan USD Emerging Markets Bond ETF Option expiring 07/19/14 @ $115.00		(44	)		(2,970	)
Total Written Put Options [Premiums Received $(16,001)]					(11,093	)
Total Written Options — (0.2)% [Premiums Received $(57,243)]					(47,484	)
Total Investments — 89.0% (Cost $22,864,682)					24,463,162
Other Assets in Excess of Liabilities — 11.0%					3,026,573
Net Assets — 100.0%				$	27,489,735

See accompanying Notes to Financial Statements.

167

TABLE OF CONTENTS

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

June 30, 2014

ETF — Exchange Traded Fund

PLC — Public Limited Company

†

Affiliated Company

Non-income producing security

Less than 0.05%

(a)

All or a portion of this security has been pledged as collateral for option contracts. The aggregate market value of the collateral was $3,043,981, which includes cash in the amount of $1,044,141 as of June 30, 2014.

(b)

Rate shown reflects the 7-day yield as of June 30, 2014.

SUMMARY OF SCHEDULE OF INVESTMENTS


	% of Net Assets
Debt Fund		8.4	%
Equity Fund		57.1
Aerospace/Defense		0.5
Apparel		1.1
Banks		1.1
Biotechnology		0.5
Computers		1.0
Electric		0.5
Electronics		0.5
Food		0.5
Insurance		0.5
Machinery – Diversified		0.5
Metal Fabricate/Hardware		0.5
Miscellaneous Manufacturing		0.5
Oil & Gas		1.0
Software		0.5
Textiles		0.5
U.S. Treasury Bills		7.3
Money Market Fund		6.7
Purchased Put Option		0.0	^**
Written Call Options		(0.1	)
Written Put Options		(0.1	)
Total Investments		89.0
Other Assets in Excess of Liabilities		11.0
Net Assets		100.0	%

Less than 0.05%

See accompanying Notes to Financial Statements.

168

TABLE OF CONTENTS

ADVISORSHARES TRIMTABS FLOAT SHRINK ETF
Schedule of Investments

June 30, 2014


Investments	Shares		Value
COMMON STOCKS — 99.7%
Advertising — 1.0%
Interpublic Group of Cos., Inc. (The)		73,314	$	1,430,356
Aerospace/Defense — 3.9%
General Dynamics Corp.		11,676		1,360,838
L-3 Communications Holdings, Inc.		11,526		1,391,764
Northrop Grumman Corp.		10,901		1,304,087
Raytheon Co.		14,021		1,293,437
Total Aerospace/Defense				5,350,126
Agriculture — 3.0%
Altria Group, Inc.		33,994		1,425,708
Lorillard, Inc.		23,404		1,426,942
Philip Morris International, Inc.		15,447		1,302,337
Total Agriculture				4,154,987
Apparel — 1.0%
VF Corp.		21,542		1,357,146
Auto Parts & Equipment — 1.0%
Delphi Automotive PLC (United Kingdom)		19,746		1,357,340
Beverages — 3.0%
Coca-Cola Enterprises, Inc.		28,315		1,352,890
Dr Pepper Snapple Group, Inc.		23,310		1,365,500
Monster Beverage Corp.*		19,162		1,361,077
Total Beverages				4,079,467
Biotechnology — 2.0%
Celgene Corp.*		18,072		1,552,024
United Therapeutics Corp.*		13,486		1,193,376
Total Biotechnology				2,745,400
Chemicals — 5.0%
E.I. du Pont de Nemours & Co.		19,391		1,268,947
LyondellBasell Industries N.V., Class A		13,606		1,328,626
Monsanto Co.		11,433		1,426,153
PPG Industries, Inc.		6,756		1,419,773

See accompanying Notes to Financial Statements.

169

TABLE OF CONTENTS

ADVISORSHARES TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Shares		Value
Chemicals — 5.0% (continued)
Sigma-Aldrich Corp.		13,882	$	1,408,745
Total Chemicals				6,852,244
Commercial Services — 2.0%
MasterCard, Inc., Class A		17,798		1,307,619
Moody’s Corp.		16,346		1,432,890
Total Commercial Services				2,740,509
Computers — 5.1%
Apple, Inc.		15,431		1,434,003
Computer Sciences Corp.		21,725		1,373,020
International Business Machines Corp.		7,148		1,295,718
Jack Henry & Associates, Inc.		23,272		1,383,055
Western Digital Corp.		15,904		1,467,939
Total Computers				6,953,735
Cosmetics/Personal Care — 2.0%
Colgate-Palmolive Co.		19,590		1,335,646
Estee Lauder Cos., Inc. (The), Class A		17,994		1,336,235
Total Cosmetics/Personal Care				2,671,881
Distribution/Wholesale — 1.0%
W.W. Grainger, Inc.		5,263		1,338,223
Diversified Financial Services — 2.0%
Franklin Resources, Inc.		24,396		1,411,065
Visa, Inc., Class A		6,461		1,361,397
Total Diversified Financial Services				2,772,462
Electronics — 1.0%
Mettler-Toledo International, Inc.*		5,488		1,389,452
Engineering & Construction — 1.0%
URS Corp.		30,476		1,397,325
Environmental Control — 1.0%
Stericycle, Inc.*		11,627		1,376,869

See accompanying Notes to Financial Statements.

170

TABLE OF CONTENTS

ADVISORSHARES TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Shares		Value
Food — 3.8%
Hershey Co. (The)		13,068	$	1,272,431
Ingredion, Inc.		18,004		1,351,020
McCormick & Co., Inc.		18,316		1,311,243
Mondelez International, Inc., Class A		35,556		1,337,261
Total Food				5,271,955
Forest Products & Paper — 1.1%
International Paper Co.		28,866		1,456,867
Healthcare – Products — 3.9%
Becton, Dickinson and Co.		11,526		1,363,526
C.R. Bard, Inc.		9,023		1,290,379
ResMed, Inc.^(a)		26,492		1,341,290
Zimmer Holdings, Inc.		13,108		1,361,397
Total Healthcare – Products				5,356,592
Healthcare – Services — 2.0%
Laboratory Corp. of America Holdings*		12,909		1,321,881
MEDNAX, Inc.*		23,498		1,366,409
Total Healthcare – Services				2,688,290
Household Products/Wares — 2.0%
Church & Dwight Co., Inc.		19,515		1,365,074
Jarden Corp.*		23,834		1,414,548
Total Household Products/Wares				2,779,622
Housewares — 1.0%
Newell Rubbermaid, Inc.		44,258		1,371,555
Insurance — 3.9%
American Financial Group, Inc.		23,070		1,374,049
Axis Capital Holdings Ltd. (Bermuda)		27,976		1,238,777
Everest Re Group Ltd. (Bermuda)		8,416		1,350,684
Torchmark Corp.		16,586		1,358,725
Total Insurance				5,322,235
Internet — 0.9%
eBay, Inc.*		25,819		1,292,499

See accompanying Notes to Financial Statements.

171

TABLE OF CONTENTS

ADVISORSHARES TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Shares		Value
Leisure Time — 1.0%
Harley-Davidson, Inc.		18,682	$	1,304,938
Machinery – Construction & Mining — 1.0%
Caterpillar, Inc.		13,044		1,417,491
Machinery – Diversified — 2.1%
Flowserve Corp.		18,076		1,343,951
IDEX Corp.		18,319		1,479,076
Total Machinery – Diversified				2,823,027
Media — 3.0%
DIRECTV*		15,952		1,356,079
Sirius XM Holdings, Inc.*^(a)		400,217		1,384,751
Viacom, Inc., Class B		15,534		1,347,264
Total Media				4,088,094
Miscellaneous Manufacturing — 4.1%
3M Co.		9,711		1,391,004
Dover Corp.		15,500		1,409,725
Illinois Tool Works, Inc.		15,610		1,366,812
Ingersoll-Rand PLC (Ireland)		23,295		1,456,170
Total Miscellaneous Manufacturing				5,623,711
Office/Business Equipment — 1.0%
Xerox Corp.		112,834		1,403,655
Oil & Gas — 4.1%
Marathon Oil Corp.		37,200		1,485,024
Marathon Petroleum Corp.		15,396		1,201,966
Occidental Petroleum Corp.		13,770		1,413,215
Tesoro Corp.		24,816		1,455,955
Total Oil & Gas				5,556,160
Oil & Gas Services — 1.1%
Schlumberger Ltd.		13,236		1,561,186
Packaging & Containers — 1.0%
Ball Corp.		22,306		1,398,140

See accompanying Notes to Financial Statements.

172

TABLE OF CONTENTS

ADVISORSHARES TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Shares		Value
Pharmaceuticals — 5.0%
Abbott Laboratories		33,740	$	1,379,966
Eli Lilly & Co.		22,467		1,396,773
Express Scripts Holding Co.*		19,068		1,321,985
Pfizer, Inc.		45,201		1,341,566
VCA, Inc.*		42,034		1,474,973
Total Pharmaceuticals				6,915,263
Real Estate Investment Trusts — 1.0%
Invesco Mortgage Capital, Inc.		77,260		1,341,234
Retail — 8.8%
AutoZone, Inc.*		2,537		1,360,441
Dollar General Corp.*		24,196		1,387,883
Home Depot, Inc. (The)		16,773		1,357,942
Kohl’s Corp.		25,286		1,332,067
McDonald’s Corp.		13,005		1,310,124
Nordstrom, Inc.		19,808		1,345,557
Ross Stores, Inc.		19,648		1,299,322
TJX Cos., Inc. (The)		23,843		1,267,255
Yum! Brands, Inc.		17,222		1,398,426
Total Retail				12,059,017
Semiconductors — 1.0%
Texas Instruments, Inc.		28,335		1,354,130
Shipbuilding — 1.0%
Huntington Ingalls Industries, Inc.		13,890		1,313,855
Software — 3.9%
CA, Inc.		45,976		1,321,350
Fiserv, Inc.*		23,128		1,395,081
Microsoft Corp.		32,463		1,353,707
Oracle Corp.		32,397		1,313,051
Total Software				5,383,189
Telecommunications — 4.0%
Cisco Systems, Inc.		54,572		1,356,114
Corning, Inc.		62,472		1,371,261

See accompanying Notes to Financial Statements.

173

TABLE OF CONTENTS

ADVISORSHARES TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Shares		Value
Telecommunications — 4.0% (continued)
Juniper Networks, Inc.*		54,392	$	1,334,780
Motorola Solutions, Inc.		20,320		1,352,702
Total Telecommunications				5,414,857
Transportation — 3.0%
C.H. Robinson Worldwide, Inc.		22,546		1,438,209
Expeditors International of Washington, Inc.		29,390		1,297,863
United Parcel Service, Inc., Class B		13,502		1,386,115
Total Transportation				4,122,187
Total Common Stocks (Cost $130,665,189)				136,587,271
MONEY MARKET FUND — 0.3%
Wells Fargo Advantage Government Money Market Fund — Institutional Class, 0.01%^(b) (Cost $394,778)		394,778		394,778
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 2.0%
BNY Mellon Securities Lending Overnight Fund, 0.11%^(c) (Cost $2,764,305)		2,764,305		2,764,305
Total Investments — 102.0% (Cost $133,824,272)				139,746,354
Liabilities in Excess of Other Assets — (2.0)%				(2,731,009	)
Net Assets — 100.0%			$	137,015,345

PLC — Public Limited Company

Non-income producing security

(a)

All or a portion of security is on loan. The aggregate market value of the securities on loan is $2,707,254; the aggregate market value of the collateral held by the fund is $2,764,305.

(b)

Rate shown reflects the 7-day yield as of June 30, 2014.

(c)

Rate shown reflects the 1-day yield as of June 30, 2014.

See accompanying Notes to Financial Statements.

174

TABLE OF CONTENTS

ADVISORSHARES TRIMTABS FLOAT SHRINK ETF
Schedule of Investments (continued)

June 30, 2014

SUMMARY OF SCHEDULE OF INVESTMENTS


	% of Net Assets
Advertising		1.0	%
Aerospace/Defense		3.9
Agriculture		3.0
Apparel		1.0
Auto Parts & Equipment		1.0
Beverages		3.0
Biotechnology		2.0
Chemicals		5.0
Commercial Services		2.0
Computers		5.1
Cosmetics/Personal Care		2.0
Distribution/Wholesale		1.0
Diversified Financial Services		2.0
Electronics		1.0
Engineering & Construction		1.0
Environmental Control		1.0
Food		3.8
Forest Products & Paper		1.1
Healthcare – Products		3.9
Healthcare – Services		2.0
Household Products/Wares		2.0
Housewares		1.0
Insurance		3.9
Internet		0.9
Leisure Time		1.0
Machinery – Construction & Mining		1.0
Machinery – Diversified		2.1
Media		3.0
Miscellaneous Manufacturing		4.1
Office/Business Equipment		1.0
Oil & Gas		4.1
Oil & Gas Services		1.1
Packaging & Containers		1.0
Pharmaceuticals		5.0
Real Estate Investment Trusts		1.0
Retail		8.8
Semiconductors		1.0
Shipbuilding		1.0
Software		3.9
Telecommunications		4.0
Transportation		3.0
Money Market Fund		2.3
Total Investments		102.0
Liabilities in Excess of Other Assets		(2.0	)
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

175

TABLE OF CONTENTS

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

June 30, 2014


Investments	Shares		Value
COMMON STOCKS — 98.4%
Apparel — 2.0%
LVMH Moet Hennessy Louis Vuitton SA (France)^(a)		6,574	$	253,625
Beverages — 3.8%
Coca-Cola Enterprises, Inc.		10,180		486,400
Chemicals — 3.9%
Novozymes A/S (Denmark)^(a)		9,857		495,709
Commercial Services — 3.8%
SGS SA (Switzerland)^(a)^(b)		20,296		485,886
Diversified Financial Services — 4.4%
Lazard Ltd., Class A (Bermuda)		10,790		556,332
Electronics — 3.4%
Sensata Technologies Holding N.V. (Netherlands)*		9,351		437,440
Food — 10.0%
Chr. Hansen Holding A/S (Denmark)*^(a)^(b)		17,972		381,006
Jeronimo Martins, SGPS, SA (Portugal)^(a)^(b)		5,631		185,767
Nestle SA (Switzerland)^(a)		6,088		472,855
Shoprite Holdings Ltd. (South Africa)^(a)^(b)		15,194		221,225
Total Food				1,260,853
Forest Products & Paper — 3.0%
Svenska Cellulosa AB SCA (Sweden)^(a)		14,409		374,490
Healthcare – Products — 7.2%
Covidien PLC (Ireland)		6,646		599,336
Sysmex Corp. (Japan)^(a)^(b)		16,546		310,734
Total Healthcare – Products				910,070
Insurance — 4.2%
ACE Ltd. (Switzerland)		5,161		535,196

See accompanying Notes to Financial Statements.

176

TABLE OF CONTENTS

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

June 30, 2014


Investments	Shares		Value
Internet — 9.4%
ASOS PLC (United Kingdom)*^(a)^(b)		7,179	$	367,062
Tencent Holdings Ltd. (China)^(a)		30,695		468,713
Yandex N.V., Class A (Netherlands)*		10,070		358,895
Total Internet				1,194,670
Machinery – Diversified — 3.0%
FANUC Corp. (Japan)^(a)		13,166		379,313
Oil & Gas Services — 2.9%
Core Laboratories N.V. (Netherlands)		2,173		363,021
Pharmaceuticals — 8.4%
NOVO Nordisk A/S (Denmark)^(a)		13,417		619,731
Perrigo Co. PLC		3,013		439,175
Total Pharmaceuticals				1,058,906
Retail — 7.9%
Inditex SA (Spain)^(a)		14,173		437,520
Sun Art Retail Group Ltd. (China)^(a)^(b)		26,526		303,988
Wal-Mart de Mexico SAB de CV (Mexico)^(a)^(b)		9,610		256,491
Total Retail				997,999
Semiconductors — 11.8%
Arm Holdings PLC (United Kingdom)^(a)		6,433		291,029
ASML Holding N.V. (Netherlands)^(c)		5,326		496,756
Taiwan Semiconductor Manufacturing Co., Ltd. (Taiwan)^(a)		32,955		704,907
Total Semiconductors				1,492,692
Transportation — 9.3%
Canadian National Railway Co. (Canada)		8,678		564,244
Canadian Pacific Railway Ltd. (Canada)^(b)		3,422		619,861
Total Transportation				1,184,105
Total Common Stocks (Cost $10,251,468)				12,466,707
MONEY MARKET FUND — 1.7%
Invesco Government & Agency Portfolio — Private Investment Class, 0.01%^(d) (Cost $216,038)		216,038		216,038

See accompanying Notes to Financial Statements.

177

TABLE OF CONTENTS

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

June 30, 2014


Investments	Shares		Value
INVESTMENT OF CASH COLLATERAL FOR SECURITIES LOANED — 17.0%
BNY Mellon Securities Lending Overnight Fund, 0.11%^(e) (Cost $2,148,039)		2,148,039	$	2,148,039
Total Investments — 117.1% (Cost $12,615,545)				14,830,784
Liabilities in Excess of Other Assets — (17.1)%				(2,170,541	)
Net Assets — 100.0%			$	12,660,243

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 $2,097,959; the aggregate market value of the collateral held by the fund is $2,148,039.

(c)

Registered Shares.

(d)

Rate shown reflects the 7-day yield as of June 30, 2014.

(e)

Rate shown reflects the 1-day yield as of June 30, 2014.

SUMMARY OF SCHEDULE OF INVESTMENTS


	% of Net Assets
Apparel		2.0	%
Beverages		3.8
Chemicals		3.9
Commercial Services		3.8
Diversified Financial Services		4.4
Electronics		3.4
Food		10.0
Forest Products & Paper		3.0
Healthcare – Products		7.2
Insurance		4.2
Internet		9.4
Machinery – Diversified		3.0
Oil & Gas Services		2.9
Pharmaceuticals		8.4
Retail		7.9
Semiconductors		11.8
Transportation		9.3
Money Market Fund		18.7
Total Investments		117.1
Liabilities in Excess of Other Assets		(17.1	)
Net Assets		100.0	%

See accompanying Notes to Financial Statements.

178

TABLE OF CONTENTS

ADVISORSHARES YIELDPRO ETF
Schedule of Investments

June 30, 2014


Investments	Shares		Value
EXCHANGE TRADED FUNDS — 80.9%
Debt Fund — 80.9%
AdvisorShares Peritus High Yield ETF^†		188,540	$	10,049,182
iShares iBoxx $ Investment Grade Corporate Bond ETF		63,347		7,554,763
PowerShares Preferred Portfolio		765,245		11,195,534
PowerShares Senior Loan Portfolio		345,872		8,601,837
SPDR Blackstone/GSO Senior Loan ETF		85,936		4,296,800
Vanguard Intermediate-Term Corporate Bond ETF		105,110		9,098,321
Vanguard Long-Term Corporate Bond ETF		82,399		7,436,510
Total Exchange Traded Funds (Cost $57,168,127)				58,232,947
COMMON STOCKS — 17.4%
Commercial Services — 1.0%
R.R. Donnelley & Sons Co.		43,756		742,102
Iron/Steel — 0.5%
Cliffs Natural Resources, Inc.		24,250		364,962
Oil & Gas — 2.4%
Diamond Offshore Drilling, Inc.		23,025		1,142,731
Ensco PLC, Class A (United Kingdom)		11,258		625,607
Total Oil & Gas				1,768,338
Pipelines — 3.3%
El Paso Pipeline Partners LP*		24,316		880,968
Kinder Morgan Energy Partners LP*		10,785		886,635
ONEOK Partners LP*		10,978		643,311
Total Pipelines				2,410,914
Real Estate Investment Trust — 7.2%
American Capital Agency Corp.		42,064		984,718
Annaly Capital Management, Inc.		102,959		1,176,821
Chimera Investment Corp.		109,824		350,339
Hatteras Financial Corp.		12,725		252,082
Invesco Mortgage Capital, Inc.		17,527		304,269
MFA Financial, Inc.		42,871		351,971

See accompanying Notes to Financial Statements.

179

TABLE OF CONTENTS

ADVISORSHARES YIELDPRO ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Shares/ Contracts		Value
Real Estate Investment Trust — 7.2% (continued)
Newcastle Investment Corp.		56,191	$	269,155
NorthStar Realty Finance Corp.		30,592		531,689
Starwood Property Trust, Inc.		22,368		531,687
Two Harbors Investment Corp.		38,074		399,016
Total Real Estate Investment Trust				5,151,747
Retail — 1.0%
Staples, Inc.		64,000		693,760
Telecommunications — 2.0%
AT&T, Inc.		39,908		1,411,147
Total Common Stocks (Cost $12,038,933)				12,542,970
MONEY MARKET FUND — 1.8%
Wells Fargo Advantage Government Money Market Fund – Institutional Class, 0.01%^(a) (Cost $1,302,056)		1,302,056		1,302,056
PURCHASED CALL OPTION — 0.0%**
Chicago Board Options Exchange SPX Volatility Index Option expiring 07/16/14, Strike Price $14.00 (Cost $36,416)		400		16,000
PURCHASED PUT OPTIONS — 0.3%
American Capital Agency Corp. Option expiring 07/19/14, Strike Price $23.00		400		4,400
Annaly Capital Management, Inc. Option expiring 07/19/14, Strike Price $11.00		2,728		10,912
Cliffs Natural Resources, Inc. Option expiring 07/19/14, Strike Price $13.00		349		3,315
Diamond Offshore Drilling, Inc. Option expiring 07/19/14, Strike Price $45.00		385		6,160
Diamond Offshore Drilling, Inc. Option expiring 07/19/14, Strike Price $47.50		130		5,395
iShares 20+ Year Treasury Bond ETF Option expiring 07/19/14, Strike Price $110.00		1,000		16,500
iShares 20+ Year Treasury Bond ETF Option expiring 07/19/14, Strike Price $111.00		1,100		31,900

See accompanying Notes to Financial Statements.

180

TABLE OF CONTENTS

ADVISORSHARES YIELDPRO ETF
Schedule of Investments (continued)

June 30, 2014


Investments	Contracts		Value
PURCHASED PUT OPTIONS — 0.3% (continued)
iShares iBoxx $ High Yield Corporate Bond ETF Option expiring 09/20/14, Strike Price $93.00		400	$	36,000
iShares iBoxx $ High Yield Corporate Bond ETF Option expiring 07/19/14, Strike Price $94.00		500		10,000
iShares iBoxx $ High Yield Corporate Bond ETF Option expiring 09/20/14, Strike Price $94.00		300		39,750
iShares US Preferred Stock ETF Option expiring 07/19/14, Strike Price $39.00		453		3,398
SPDR Barclays High Yield Bond ETF Option expiring 09/20/14, Strike Price $41.00		275		13,750
SPDR S&P 500 ETF Trust Option expiring 07/19/14, Strike Price $194.00		300		27,450
Total Purchased Put Options (Cost $506,698)				208,930
Total Investments — 100.4% (Cost $71,052,230)				72,302,903
Liabilities in Excess of Other Assets — (0.4)%				(267,638	)
Net Assets — 100.0%			$	72,035,265

ETF — Exchange Traded Fund

LP — Limited Partnership

PLC — Public Limited Company

†

Affiliated Company

Non-income producing security

Less than 0.05%

(a)

Rate shown reflects the 7-day yield as of June 30, 2014.

See accompanying Notes to Financial Statements.

181

TABLE OF CONTENTS

ADVISORSHARES YIELDPRO ETF
Schedule of Investments (continued)

June 30, 2014

SUMMARY OF SCHEDULE OF INVESTMENTS


	% of Net Assets
Commercial Services		1.0	%
Debt Fund		80.9
Iron/Steel		0.5
Oil & Gas		2.4
Pipelines		3.3
Purchased Call Option		0.0	**
Purchased Put Options		0.3
Real Estate Investment Trust		7.2
Retail		1.0
Telecommunications		2.0
Money Market Fund		1.8
Total Investments		100.4
Liabilities in Excess of Other Assets		(0.4	)
Net Assets		100.0	%

Less than 0.05%

See accompanying Notes to Financial Statements.

182

TABLE OF CONTENTS

(This page intentionally left blank.)

TABLE OF CONTENTS

ADVISORSHARES TRUST
Statements of Assets and Liabilities

June 30, 2014


	AdvisorShares Accuvest Global Long Short ETF			AdvisorShares Accuvest Global Opportunities ETF			AdvisorShares Athena International Bear ETF			AdvisorShares Cambria Global Tactical ETF			AdvisorShares EquityPro ETF
ASSETS
Investments, at Cost	$	25,366,333		$	31,611,762		$	51,503		$	41,330,755		$	19,115,617
Investments in Affiliates, at Cost (Note 8)		—			—			705,000			—			—
Total Cost of Investments		25,366,333			31,611,762			756,503			41,330,755			19,115,617
Investments, at Market Value (including securities on loan) (Note 2) (a)		25,730,295			31,620,222			51,503			43,761,586			20,276,174
Investments in Affiliates, at Market Value (Note 8)		—			—			703,660			—			—
Total Market Value of Investments		25,730,295			31,620,222			755,163			43,761,586			20,276,174
Cash		11,952			—			600,552			—			—
Cash collateral held at brokers		116,127			—			517,047			—			—
Due from Broker for Futures Contracts		—			—			—			—			—
Receivable from Securities Sold		—			—			—			2,422,921			—
Unrealized Appreciation on Swaps Contracts		127,243			—			—			—			—
Dividends and Interest Receivable		193,160			208,806			61			136,987			386,719
Reclaim Receivable		—			—			—			—			504
Due from Investment Advisor		—			—			3,725			—			—
Prepaid Trustee Fees		—			—			—			—			—
Prepaid Expenses		8,745			6,419			7,750			9,210			7,457
Total Assets		26,187,522			31,835,447			1,884,298			46,330,704			20,670,854
LIABILITIES
Cash collateral for securities on loan		—			6,328,525			—			6,883,911			539,860
Securities Sold, Not Yet Purchased (b)		—			—			836,606			—			—
Unrealized Depreciation on Swaps Contracts		96,214			—			—			—			—
Advisory Payable		26,907			16,949			—			26,816			12,496
Payable for Securities Purchased		—			—			—			2,690,852			—
Trustee Fees Payable		110			110			1,007			110			114
Interest Payable		115,596			—			—			—			—
Dividend Payable on Securities Sold, Not Yet Purchased		—			—			190			—			—
Payable to Global Echo Foundation		—			—			—			—			—
Accrued Expenses		52,679			55,712			26,537			62,293			48,744
Total Liabilities		291,506			6,401,296			864,340			9,663,982			601,214
NET ASSETS	$	25,896,016		$	25,434,151		$	1,019,958		$	36,666,722		$	20,069,640
COMPONENTS OF NET ASSETS
Capital Stock at Zero Par Value	$	38,603,428		$	28,719,248		$	1,316,950		$	53,309,785		$	18,419,139
Undistributed Net Investment Income (Loss)		—			43,980			(20,684	)		354,155			269,918
Undistributed (Accumulated) Net Gain (Loss) on investments, swaps, short sales, foreign currency transactions, futures, options written		(13,102,403	)		(3,337,537	)		(232,372	)		(19,428,049	)		220,026
Unrealized Appreciation (Depreciation) on investments, swaps, short sales, options written, futures and foreign currency translations		394,991			8,460			(43,936	)		2,430,831			1,160,557
NET ASSETS	$	25,896,016		$	25,434,151		$	1,019,958		$	36,666,722		$	20,069,640
SHARES ISSUED AND OUTSTANDING
Shares Outstanding (Unlimited Shares Authorized)		1,250,000			925,000			50,000			1,400,000			625,000
Net Asset Value (NAV) Per Share	$	20.72		$	27.50		$	20.40		$	26.19		$	32.11
(a) Market value of securities on loan	$	—		$	6,166,571		$	—		$	6,721,952		$	528,936
(b) Proceeds Received from Securities Sold, Not Yet Purchased	$	—		$	—		$	794,010		$	—		$	—

See accompanying Notes to Financial Statements.

184

TABLE OF CONTENTS

ADVISORSHARES TRUST
Statements of Assets and Liabilities

June 30, 2014


	AdvisorShares Gartman Gold/British Pound ETF (consolidated)			AdvisorShares Gartman Gold/Euro ETF (consolidated)			AdvisorShares Gartman Gold/Yen ETF (consolidated)			AdvisorShares Global Echo ETF			AdvisorShares International Gold ETF			AdvisorShares Madrona Domestic ETF			AdvisorShares Madrona Global Bond ETF
ASSETS
Investments, at Cost	$	879,015		$	878,068		$	3,173,799		$	7,835,763		$	257,411		$	19,343,241		$	27,860,673
Investments in Affiliates, at Cost (Note 8)		—			—			—			1,112,885			1,001,721			—			2,949,946
Total Cost of Investments		879,015			878,068			3,173,799			8,948,648			1,259,132			19,343,241			30,810,619
Investments, at Market Value (including securities on loan) (Note 2) (a)		879,015			878,068			3,173,799			8,698,001			263,748			24,832,060		$	28,620,578
Investments in Affiliates, at Market Value (Note 8)		—			—			—			1,110,189			1,007,726			—			3,112,080
Total Market Value of Investments		879,015			878,068			3,173,799			9,808,190			1,271,474			24,832,060			31,732,658
Cash		—			—			—			448			—			—			—
Cash collateral held at brokers		—			—			—			—			—			—			—
Due from Broker for Futures Contracts		346,029			392,347			677,428			—			—			—			—
Receivable from Securities Sold		—			—			—			28,548			—			—			—
Unrealized Appreciation on Swaps Contracts		—			—			—			—			—			—			—
Dividends and Interest Receivable		—			—			—			25,727			—			18,631			7,172
Reclaim Receivable		—			—			—			449			—			—			—
Due from Investment Advisor		11,797			11,737			10,517			—			8,487			—			—
Prepaid Trustee Fees		878			878			878			—			878			—			—
Prepaid Expenses		34,887			35,767			35,702			—			23,779			6,423			6,434
Total Assets		1,272,606			1,318,797			3,898,324			9,863,362			1,304,618			24,857,114			31,746,264
LIABILITIES
Cash collateral for securities on loan		—			—			—			566,100			—			39,915			7,299,078
Securities Sold, Not Yet Purchased (b)		—			—			—			—			—			—			—
Unrealized Depreciation on Swaps Contracts		—			—			—			—			—			—			—
Advisory Payable		—			—			—			8,257			—			13,926			8,603
Payable for Securities Purchased		—			—			—			69,888			—			—			—
Trustee Fees Payable		—			—			—			—			—			110			110
Interest Payable		—			—			—			—			—			—			—
Dividend Payable on Securities Sold, Not Yet Purchased		—			—			—			—			—			—			—
Payable to Global Echo Foundation		—			—			—			3,002			—			—			—
Accrued Expenses		16,673			16,571			17,027			—			16,783			47,880			55,782
Total Liabilities		16,673			16,571			17,027			647,247			16,783			101,831			7,363,573
NET ASSETS	$	1,255,933		$	1,302,226		$	3,881,297		$	9,216,115		$	1,287,835		$	24,755,283		$	24,382,691
COMPONENTS OF NET ASSETS
Capital Stock at Zero Par Value	$	1,248,865		$	1,248,865		$	3,755,148		$	8,382,202		$	1,280,000		$	20,255,011		$	23,707,632
Undistributed Net Investment Income (Loss)		(3,055	)		(3,093	)		(7,557	)		30,808			(4,507	)		33,249			13,352
Undistributed (Accumulated) Net Gain (Loss) on investments, swaps, short sales, foreign currency transactions, futures, options written		(29,980	)		(1,778	)		(7,132	)		(56,437	)		—			(1,021,796	)		(260,332	)
Unrealized Appreciation (Depreciation) on investments, swaps, short sales, options written, futures and foreign currency translations		40,103			58,232			140,838			859,542			12,342			5,488,819			922,039
NET ASSETS	$	1,255,933		$	1,302,226		$	3,881,297		$	9,216,115		$	1,287,835		$	24,755,283		$	24,382,691
SHARES ISSUED AND OUTSTANDING
Shares Outstanding (Unlimited Shares Authorized)		100,000			100,000			300,000			150,000			100,000			600,000			925,000
Net Asset Value (NAV) Per Share	$	12.56		$	13.02		$	12.94		$	61.44		$	12.88		$	41.26		$	26.36
(a) Market value of securities on loan	$	—		$	—		$	—		$	553,290		$	—		$	38,848		$	7,111,662
(b) Proceeds Received from Securities Sold, Not Yet Purchased	$	—		$	—		$	—		$	—		$	—		$	—		$	—

See accompanying Notes to Financial Statements.

185

TABLE OF CONTENTS

ADVISORSHARES TRUST
Statements of Assets and Liabilities

June 30, 2014


	AdvisorShares Madrona International ETF			AdvisorShares Meidell Tactical Advantage ETF			AdvisorShares Newfleet Multi-Sector Income ETF			AdvisorShares Peritus High Yield ETF			AdvisorShares Pring Turner Business Cycle ETF
ASSETS
Investments, at Cost	$	21,038,305		$	16,859,575		$	154,332,631		$	1,199,895,672		$	4,688,879
Investments in Affiliates, at Cost (Note 8)		—			—			—			—			226,901
Total Cost of Investments		21,038,305			16,859,575			154,332,631			1,199,895,672			4,915,780
Investments, at Market Value (including securities on loan) (Note 2) (a)		22,457,553			17,343,014			154,733,606			1,227,949,668			5,234,093
Investments in Affiliates, at Market Value (Note 8)		—			—			—			—			234,467
Total Market Value of Investments		22,457,553			17,343,014			154,733,606			1,227,949,668			5,468,560
Cash		1,157			—			—			3,138,814			—
Cash collateral held at brokers		—			—			—			—			—
Due from Broker for Futures Contracts		—			—			—			—			—
Receivable from Securities Sold		—			761,461			156,339			10,527,296			66,720
Capital Shares Receivable		—			—			4,992,148			—			—
Dividends and Interest Receivable		76,685			20,480			751,678			20,075,364			4,365
Reclaim Receivable		10,252			—			—			—			379
Prepaid Trustee Fees		—			—			—			—			—
Prepaid Expenses		6,399			6,380			4,370			5,681			6,458
Total Assets		22,552,046			18,131,335			160,638,141			1,261,696,823			5,546,482
LIABILITIES
Due to Custodian		—			—			1,960,828			—			—
Cash collateral for securities on loan		3,210,703			1,566,357			845,961			166,306,561			429,413
Securities Sold, Not Yet Purchased (b)		—			—			—			—			—
Options Written, at Value (c)		—			—			—			—			—
Advisory Payable		10,492			7,068			45,920			940,722			72
Payable for Securities Purchased		—			753,599			2,926,935			18,307,522			—
Trustee Fees Payable		110			110			110			110			110
Interest Payable		—			—			—			—			—
Dividend Payable on Securities Sold, Not Yet Purchased		—			—			—			—			—
Accrued Expenses		52,093			54,619			47,616			145,318			42,651
Total Liabilities		3,273,398			2,381,753			5,827,370			185,700,233			472,246
NET ASSETS	$	19,278,648		$	15,749,582		$	154,810,771		$	1,075,996,590		$	5,074,236
COMPONENTS OF NET ASSETS
Capital Stock at Zero Par Value	$	19,438,626		$	16,052,106		$	154,733,372		$	1,046,429,633		$	4,612,273
Undistributed Net Investment Income (Loss)		208,792			67,182			77,533			1,623,319			18,295
Undistributed (Accumulated) Net Gain (Loss) on investments, swaps, short sales, foreign currency transactions, futures, options written		(1,788,018	)		(853,145	)		(401,112	)		(110,358	)		(109,112	)
Unrealized Appreciation (Depreciation) on investments, swaps, short sales, options written, futures and foreign currency translations		1,419,248			483,439			400,978			28,053,996			552,780
NET ASSETS	$	19,278,648		$	15,749,582		$	154,810,771		$	1,075,996,590		$	5,074,236
SHARES ISSUED AND OUTSTANDING
Shares Outstanding (Unlimited Shares Authorized).		650,000			525,000			3,100,000			20,200,000			175,000
Net Asset Value (NAV) Per Share	$	29.66		$	30.00		$	49.94		$	53.27		$	29.00
(a) Market value of securities on loan	$	3,119,705		$	1,532,683		$	3,031,357		$	162,332,391		$	418,770
(b) Proceeds Received from Securities Sold, Not Yet Purchased	$	—		$	—		$	—		$	—		$	—
(c) Premiums Received for Options Written	$	—		$	—		$	—		$	—		$	—

See accompanying Notes to Financial Statements.

186

TABLE OF CONTENTS

ADVISORSHARES TRUST
Statements of Assets and Liabilities

June 30, 2014


	AdvisorShares QAM Equity Hedge ETF			AdvisorShares Ranger Equity Bear ETF			AdvisorShares Sage Core Reserves ETF			AdvisorShares STAR Global Buy-Write ETF			AdvisorShares TrimTabs Float Shrink ETF			AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF			AdvisorShares YieldPro ETF
ASSETS
Investments, at Cost	$	7,691,949		$	59,020,341		$	37,822,334		$	22,659,402		$	133,824,272		$	12,615,545		$	61,117,465
Investments in Affiliates, at Cost (Note 8)		420,000			29,997,150			—			262,523			—			—			9,934,765
Total Cost of Investments		8,111,949			89,017,491			37,822,334			22,921,925			133,824,272			12,615,545			71,052,230
Investments, at Market Value (including securities on loan) (Note 2) (a)		8,199,496			59,020,341			37,743,079			24,248,645			139,746,354			14,830,784			62,253,721
Investments in Affiliates, at Market Value (Note 8)		419,202			29,943,000			—			262,001			—			—			10,049,182
Total Market Value of Investments		8,618,698			88,963,341			37,743,079			24,510,646			139,746,354			14,830,784			72,302,903
Cash		2,864			76,109,147			—			1,980,750			—			3,058			—
Cash collateral held at brokers		947,145			160,546,760			—			1,044,141			—			—			—
Due from Broker for Futures Contracts		—			—			51,829			—			—			—			—
Receivable from Securities Sold		—			8,554,906			—			4,564			—			—			—
Capital Shares Receivable		—			—			—			—			—			—			—
Dividends and Interest Receivable		10,923			530			218,798			74,288			177,717			5,426			125,556
Reclaim Receivable		—			—			—			—			—			16,487			—
Prepaid Trustee Fees		—			—			71			—			—			—			464
Prepaid Expenses		7,839			9,788			44,914			7,938			6,680			6,398			34,413
Total Assets		9,587,469			334,184,472			38,058,691			27,622,327			139,930,751			14,862,153			72,463,336
LIABILITIES
Due to Custodian		—			—			10,635			—			370			—			—
Cash collateral for securities on loan		—			—			—			—			2,764,305			2,148,039			—
Securities Sold, Not Yet Purchased (b)		994,360			160,234,508			—			—			—			—			—
Options Written, at Value (c)		—			—			—			47,484			—			—			—
Advisory Payable		4,074			203,839			1,546			30,378			83,661			7,534			46,125
Payable for Securities Purchased		—			11,601,096			597,828			—			—			—			355,980
Trustee Fees Payable		110			110			—			110			110			110			—
Interest Payable		—			61,683			2,097			—			—			—			—
Dividend Payable on Securities Sold, Not Yet Purchased		—			42,033			—			—			—			—			—
Accrued Expenses		46,398			89,241			27,773			54,620			66,960			46,227			25,966
Total Liabilities		1,044,942			172,232,510			639,879			132,592			2,915,406			2,201,910			428,071
NET ASSETS	$	8,542,527		$	161,951,962		$	37,418,812		$	27,489,735		$	137,015,345		$	12,660,243		$	72,035,265
COMPONENTS OF NET ASSETS
Capital Stock at Zero Par Value	$	8,064,610		$	324,486,324		$	37,495,615		$	25,943,123		$	134,560,884		$	10,897,508		$	71,411,424
Undistributed Net Investment Income (Loss)		—			(2,033,900	)		8,116			(60,353	)		552,118			—			142,685
Undistributed (Accumulated) Net Gain (Loss) on investments, swaps, short sales, foreign currency transactions, futures, options written		(10,026	)		(152,089,705	)		(6,313	)		8,485			(4,019,739	)		(452,504	)		(769,517	)
Unrealized Appreciation (Depreciation) on investments, swaps, short sales, options written, futures and foreign currency translations		487,943			(8,410,757	)		(78,606	)		1,598,480			5,922,082			2,215,239			1,250,673
NET ASSETS	$	8,542,527		$	161,951,962		$	37,418,812		$	27,489,735		$	137,015,345		$	12,660,243		$	72,035,265
SHARES ISSUED AND OUTSTANDING
Shares Outstanding (Unlimited Shares Authorized).		300,000			13,750,000			375,000			1,050,000			2,675,000			325,000			2,850,000
Net Asset Value (NAV) Per Share	$	28.48		$	11.78		$	99.78		$	26.18		$	51.22		$	38.95		$	25.28
(a) Market value of securities on loan	$	—		$	—		$	—		$	—		$	2,707,254		$	2,097,959		$	—
(b) Proceeds Received from Securities Sold, Not Yet Purchased	$	975,554		$	151,877,901		$	—		$	—		$	—		$	—		$	—
(c) Premiums Received for Options Written	$	—		$	—		$	—		$	57,243		$	—		$	—		$	—

See accompanying Notes to Financial Statements.

187

TABLE OF CONTENTS

ADVISORSHARES TRUST
Statements of Operations

Year or Period Ended June 30, 2014


	AdvisorShares Accuvest Global Long Short ETF			AdvisorShares Accuvest Global Opportunities ETF			AdvisorShares Athena International Bear ETF⁽¹⁾			AdvisorShares Cambria Global Tactical ETF		AdvisorShares EquityPro ETF
INVESTMENT INCOME:
Dividend Income	$	511,948		$	409,595		$	—		$	922,090	$	500,391
Dividend Income from Affiliates		—			—			2,291			—		—
Interest Income		38			2			188			522		26
Securities lending income (Note 2)		—			33,926			—			132,386		42,334
Foreign withholding tax		—			—			78			—		117
Total Investment Income		511,986			443,523			2,557			1,054,998		542,868
EXPENSES:
Advisory Fees		518,396			199,700			21,904			388,987		81,891
Interest on Securities Sold Short, Not Yet Purchased		87,455			—			15,376			—		—
Accounting & Administration Fees		54,773			65,693			9,946			77,077		30,277
Professional Fees		26,815			25,614			47,863			26,206		50,045
Pricing Fees		8,084			5,042			7,639			5,042		5,051
Exchange Listing Fees		7,579			7,580			17,161			7,579		10,137
Report to Shareholders		4,284			2,516			9,800			4,375		2,915
Custody Fees		3,687			1,666			236			6,789		3,085
Transfer Agent Fees		3,205			1,428			215			3,629		2,549
Trustee Fees		2,772			2,772			3,898			2,771		2,775
Insurance Fees		1,859			867			543			3,514		499
Registration Fees		1,438			503			206			—		1,071
Dividend Expense		—			—			35,857			—		—
Contribution to Global Echo Foundation		—			—			—			—		—
Miscellaneous Fees		6,394			5,325			3,018			8,144		3,286
Total Expenses		726,741			318,706			173,662			534,113		193,581
Advisory Fees Waived/Recoupment		(63,291	)		(55,943	)		(21,904	)		6,175		(67,622	)
Expense Reimbursement		—			—			(76,188	)		—		—
Net Expenses		663,450			262,763			75,570			540,288		125,959
Net Investment Income (Loss)		(151,464	)		180,760			(73,013	)		514,710		416,909
REALIZED AND UNREALIZED GAIN (LOSS) ON:
Net Realized Gain (Loss) on:
Investments		(3,339,785	)		(1,591,294	)		—			874,691		231,226
Investments in Affiliates		—			—			—			—		(255	)
In-Kind Redemptions		4,916,832			2,340,676			—			1,726,243		33,870
In-Kind Redemptions in Affiliates		—			—			—			—		—
Swaps		(2,622,244	)		—			—			—		—
Short Sales		(229,885	)		—			(225,936	)		—		—
Futures		—			—			—			—		—
Distributions by other Investment Companies		—			—			—			6,050		—
Net Change in Unrealized Appreciation (Depreciation) on:
Investments		1,265,455			233,931			(1,340	)		927,505		1,054,167
Swaps		(712,386	)		—			—			—		—
Short Sales		(1,132,861	)		—			(42,596	)		—		—
Futures		—			—			—			—		—
Net Realized and Unrealized Gain (Loss)		(1,854,874	)		983,313			(269,872	)		3,534,489		1,319,008
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATONS	$	(2,006,338	)	$	1,164,073		$	(342,885	)	$	4,049,199	$	1,735,917

(1)

Represents the period July 18, 2013 (commencement of operations) to June 30, 2014.

(2)

Represents the period February 11, 2014 (commencement of operations) to June 30, 2014.

See accompanying Notes to Financial Statements.

188

TABLE OF CONTENTS

ADVISORSHARES TRUST
Statements of Operations

Year or Period Ended June 30, 2014


	AdvisorShares Gartman Gold/British Pound ETF⁽²⁾ (consolidated)			AdvisorShares Gartman Gold/Euro ETF⁽²⁾ (consolidated)			AdvisorShares Gartman Gold/Yen ETF⁽²⁾ (consolidated)			AdvisorShares Global Echo ETF			AdvisorShares International Gold ETF⁽²⁾			AdvisorShares Madrona Domestic ETF			AdvisorShares Madrona Global Bond ETF
INVESTMENT INCOME:
Dividend Income	$	—		$	—		$	—		$	96,754		$	—		$	337,485		$	697,343
Dividend Income from Affiliates		—			—			—			3,472			—			—			198,728
Interest Income		80			80			223			25,265			—			15			13
Securities lending income (Note 2)		—			—			—			12,686			—			933			83,208
Foreign withholding tax		—			—			—			(2,975	)		—			—			—
Total Investment Income		80			80			223			135,202			—			338,433			979,292
EXPENSES:
Advisory Fees		2,652			2,685			6,582			79,413			3,898			173,897			113,618
Interest on Securities Sold Short, Not Yet Purchased		—			—			—			—			—			—			—
Accounting & Administration Fees		193			195			479			—			195			77,869			75,141
Professional Fees		26,512			26,512			26,493			—			26,512			24,870			24,909
Pricing Fees		2,285			2,285			2,285			—			2,285			5,042			5,042
Exchange Listing Fees		6,856			6,856			6,856			—			6,856			11,983			7,580
Report to Shareholders		5,713			5,713			5,713			—			5,713			2,214			4,014
Custody Fees		1,941			1,941			1,994			—			1,941			901			1,824
Transfer Agent Fees		36			37			90			—			37			1,501			1,648
Trustee Fees		507			507			507			—			507			2,771			2,771
Insurance Fees		952			952			952			—			952			1,150			1,299
Registration Fees		185			80			185			—			80			59			111
Dividend Expense		—			—			—			—			—			—			—
Contribution to Global Echo Foundation		—			—			—			28,877			—			—			—
Miscellaneous Fees		4,566			4,579			4,544			—			1,504			5,388			5,816
Total Expenses		52,398			52,342			56,680			108,290			50,480			307,645			243,773
Advisory Fees Waived/Recoupment		(2,652	)		(2,685	)		(6,582	)		—			(3,898	)		(35,931	)		(27,899	)
Expense Reimbursement		(46,611	)		(46,484	)		(42,318	)		—			(41,951	)		—			—
Net Expenses		3,135			3,173			7,780			108,290			4,631			271,714			215,874
Net Investment Income (Loss		(3,055	)		(3,093	)		(7,557	)		26,912			(4,631	)		66,719			763,418
REALIZED AND UNREALIZED GAIN (LOSS) ON:
Net Realized Gain (Loss) on:
Investments		—			—			—			45,468			124			288,347			(191,031	)
Investments in Affiliates		—			—			—			(11,654	)		—			—			—
In-Kind Redemptions		—			—			—			—			—			2,313,369			13,501
In-Kind Redemptions in Affiliates		—			—			—			—			—			—			2,151
Swaps		—			—			—			—			—			—			—
Short Sales		—			—			—			—			—			—			—
Futures		(61,115	)		(32,913	)		(161,492	)		—			—			—			—
Distributions by other Investment Companies		—			—			—			—			—			—			9,043
Net Change in Unrealized Appreciation (Depreciation) on:
Investments		—			—			—			673,768			12,342			2,619,735			1,351,960
Swaps		—			—			—			—			—			—			—
Short Sales		—			—			—			—			—			—			—
Futures		40,103			58,232			140,838			—			—			—			—
Net Realized and Unrealized Gain (Loss)		(21,012	)		25,319			(20,654	)		707,582			12,466			5,221,451			1,185,624
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATONS	$	(24,067	)	$	22,226		$	(28,211	)	$	734,494		$	7,835		$	5,288,170		$	1,949,042

See accompanying Notes to Financial Statements.

189

TABLE OF CONTENTS

ADVISORSHARES TRUST
Statements of Operations

Year or Period Ended June 30, 2014


	AdvisorShares Madrona International ETF			AdvisorShares Meidell Tactical Advantage ETF			AdvisorShares Newfleet Multi-Sector Income ETF			AdvisorShares Peritus High Yield ETF			AdvisorShares Pring Turner Business Cycle ETF
INVESTMENT INCOME:
Dividend Income	$	497,522		$	239,575		$	—		$	1,047,204		$	103,799
Dividend Income from Affiliates		—			108			—			—			20,234
Interest Income		22			—			3,428,128			52,196,402			124
Securities lending income (Note 2)		42,515			15,284			12,300			528,456			7,594
Foreign withholding tax		(51,779	)		—			—			(156,837	)		(2,439	)
Total Investment Income		488,280			254,967			3,440,428			53,615,225			129,312
EXPENSES:
Advisory Fees		142,853			166,231			677,239			6,444,636			53,952
Interest on Securities Sold Short, Not Yet Purchased		—			—			—			—			—
Accounting & Administration Fees		77,039			75,120			73,549			163,744			31,353
Professional Fees		24,804			25,444			33,400			42,670			28,334
Pricing Fees		5,042			5,042			12,961			11,646			6,840
Exchange Listing Fees		7,580			7,566			7,500			7,579			7,596
Report to Shareholders		2,983			2,998			18,046			63,872			1,689
Custody Fees		6,935			1,766			12,601			28,112			743
Transfer Agent Fees		1,216			758			6,995			26,783			453
Trustee Fees		2,771			2,772			2,771			2,772			2,771
Insurance Fees		1,118			628			2,662			10,847			161
Registration Fees		43			718			10,869			50,910			385
Dividend Expense		—			—			—			—			—
Licensing Fees		—			—			—			—			—
Miscellaneous Fees		5,044			4,062			11,253			64,675			3,298
Total Expenses		277,428			293,105			869,846			6,918,246			137,575
Advisory Fees Waived/Recoupment		(54,221	)		(106,095	)		(88,416	)		—			(53,952	)
Expense Reimbursement		—			—			—			—			(3,235	)
Net Expenses		223,207			187,010			781,430			6,918,246			80,388
Net Investment Income (Loss)		265,073			67,957			2,658,998			46,696,979			48,924
REALIZED AND UNREALIZED GAIN (LOSS) ON:
Net Realized Gain (Loss) on:
Investments		867,163			(376,159	)		(51,692	)		7,747			(87,474	)
Investments in Affiliates		—			(667	)		—			—			—
In-Kind Redemptions		1,232,310			599,864			—			—			211,229
In-Kind Redemptions in Affiliates		—			—			—			—			4,293
Swaps		—			—			—			—			—
Short Sales		—			—			—			—			—
Foreign Currency Transactions		—			—			(380	)		—			—
Futures		—			—			—			—			—
Options Written		—			—			—			—			—
Distributions by other Investment Companies		—			—			—			—			345
Net Change in Unrealized Appreciation (Depreciation) on:
Investments		1,576,909			491,104			2,057,224			28,680,594			580,835
Swaps		—			—			—			—			—
Short Sales		—			—			—			—			—
Foreign currency translations		—			—			3			—			—
Options Written		—			—			—			—			—
Futures		—			—			—			—			—
Net Realized and Unrealized Gain (Loss)		3,676,382			714,142			2,005,155			28,688,341			709,228
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATONS	$	3,941,455		$	782,099		$	4,664,153		$	75,385,320		$	758,152

(3)

Represents the period January 14, 2014 (commencement of operations) to June 30, 2014.

(4)

Represents the period March 4, 2014 (commencement of operations) to June 30, 2014.

See accompanying Notes to Financial Statements.

190

TABLE OF CONTENTS

ADVISORSHARES TRUST
Statements of Operations

Year or Period Ended June 30, 2014


	AdvisorShares QAM Equity Hedge ETF			AdvisorShares Ranger Equity Bear ETF			AdvisorShares Sage Core Reserves ETF⁽³⁾			AdvisorShares STAR Global Buy-Write ETF			AdvisorShares TrimTabs Float Shrink ETF			AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF			AdvisorShares YieldPro ETF⁽⁴⁾
INVESTMENT INCOME:
Dividend Income	$	64,333		$	—		$	—		$	343,424		$	1,738,626		$	166,957		$	665,795
Dividend Income from Affiliates		1,365			97,503			—			851			—			—			207,299
Interest Income		111			10,153			172,974			1,502			20			74			72
Securities lending income (Note 2)		—			—			512			—			6,589			24,652			—
Foreign withholding tax		—			—			—			—			—			(21,844	)		—
Total Investment Income		65,809			107,656			173,486			345,777			1,745,235			169,839			873,166
EXPENSES:
Advisory Fees		67,404			2,523,254			46,035			326,907			913,283			72,902			146,172
Interest on Securities Sold Short, Not Yet Purchased		12,875			1,027,818			—			—			—			—			—
Accounting & Administration Fees		44,108			81,362			6,138			40,658			72,409			41,282			7,422
Professional Fees		30,301			30,057			33,026			32,220			26,622			24,751			22,910
Pricing Fees		8,085			8,084			2,896			8,084			5,042			5,042			1,940
Exchange Listing Fees		7,579			7,631			8,687			7,580			7,580			7,579			5,820
Report to Shareholders		1,539			48,887			3,861			4,249			13,683			—			2,587
Custody Fees		126			14,902			3,564			2,152			6,983			890			3,008
Transfer Agent Fees		349			15,141			1,151			1,641			4,790			643			1,392
Trustee Fees		2,772			2,772			1,314			2,772			2,772			2,772			922
Insurance Fees		—			10,068			1,208			760			2,161			548			808
Registration Fees		393			1,182			2,199			1,517			8,305			235			3,142
Dividend Expense		—			1,029,237			—			—			—			—			—
Licensing Fees		—			—			—			—			—			3,918			—
Miscellaneous Fees		3,469			29,295			2,386			5,539			8,999			1,709			1,696
Total Expenses		179,000			4,829,690			112,465			434,079			1,072,629			162,271			197,819
Advisory Fees Waived/Recoupment		(65,019	)		—			(46,035	)		13,817			(159,385	)		(40,767	)		—
Expense Reimbursement		—			—			(12,723	)		—			—			—			—
Net Expenses		113,981			4,829,690			53,707			447,896			913,244			121,504			197,819
Net Investment Income (Loss)		(48,172	)		(4,722,034	)		119,779			(102,119	)		831,991			48,335			675,347
REALIZED AND UNREALIZED GAIN (LOSS) ON:
Net Realized Gain (Loss) on:
Investments		173,776			—			907			(319,971	)		(4,000,841	)		(282,823	)		(769,517	)
Investments in Affiliates		—			—			—			—			—			—			—
In-Kind Redemptions		157,313			—			—			74,582			14,974,040			353,783			23
In-Kind Redemptions in Affiliates		(35	)		—			—			—			—			—			169
Swaps		11,612			—			—			—			—			—			—
Short Sales		(7,176	)		(48,679,864	)		—			—			—			—			—
Foreign Currency Transactions		—			—			—			—			—			—			—
Futures		—			—			1,108			—			—			—			—
Options Written		2,867			—			—			585,087			—			—			—
Distributions by other Investment Companies		—			—			—			—			—			—			—
Net Change in Unrealized Appreciation (Depreciation) on:
Investments		312,444			(54,150	)		(79,255	)		2,155,768			5,511,917			1,505,268			1,250,673
Swaps		5,101			—			—			—			—			—			—
Short Sales		(25,129	)		(3,638,124	)		—			—			—			—			—
Foreign currency translations		—			—			—			—			—			—			—
Options Written		—			—			—			84,235			—			—			—
Futures		—			—			649			—			—			—			—
Net Realized and Unrealized Gain (Loss)		630,773			(52,372,138	)		(76,591	)		2,579,701			16,485,116			1,576,228			481,348
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATONS	$	582,601		$	(57,094,172	)	$	43,188		$	2,477,582		$	17,317,107		$	1,624,563		$	1,156,695

See accompanying Notes to Financial Statements.

191

TABLE OF CONTENTS

ADVISORSHARES TRUST
Statements of Changes in Net Assets


	AdvisorShares Accuvest Global Long Short ETF						AdvisorShares Accuvest Global Opportunities ETF						AdvisorShares Athena International Bear ETF
	Year ended June 30, 2014			Year ended June 30, 2013			Year ended June 30, 2014			Year ended June 30, 2013			For the period July 18, 2013* to June 30, 2014
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income (Loss)	$	(151,464	)	$	(439,369	)	$	180,760		$	74,807		$	(73,013	)
Net Realized Gain (Loss)		(1,275,082	)		504,090			749,382			1,493,850			(225,936	)
Net Change in Unrealized Appreciation (Depreciation)		(579,792	)		393,922			233,931			(322,229	)		(43,936	)
Net Increase (Decrease) In Net Assets Resulting From Operations		(2,006,338	)		458,643			1,164,073			1,246,428			(342,885	)
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		69,802,024			78,003,559			57,020,186			53,907,465			2,500,000
Value of Shares Redeemed		(84,472,216	)		(53,911,620	)		(50,425,093	)		(50,580,810	)		(1,137,157	)
Net Increase (Decrease) From Capital Stock Transactions		(14,670,192	)		24,091,939			6,595,093			3,326,655			1,362,843
Net Increase (Decrease) in Net Assets		(16,676,530	)		24,550,582			7,604,269			4,387,629			1,019,958
Net Assets:
Beginning of Period		42,572,546			18,021,964			17,829,882			13,442,253			—
End of Period	$	25,896,016		$	42,572,546		$	25,434,151		$	17,829,882		$	1,019,958
Undistributed Net Investment Income (Loss)	$	—		$	(98,523	)	$	43,980		$	23,165		$	(20,684	)
Changes in Shares Outstanding
Shares Outstanding, Beginning of Period		1,950,000			850,000			675,000			550,000			—
Shares Sold		3,250,000			3,550,000			2,100,000			1,975,000			100,000
Shares Repurchased		(3,950,000	)		(2,450,000	)		(1,850,000	)		(1,850,000	)		(50,000	)
End of Period		1,250,000			1,950,000			925,000			675,000			50,000

Commencement of operations.

(1)

Formerly known as, AdvisorShares Global Alpha & Beta ETF.

See accompanying Notes to Financial Statements.

192

TABLE OF CONTENTS

ADVISORSHARES TRUST
Statements of Changes in Net Assets


	AdvisorShares Cambria Global Tactical ETF						AdvisorShares EquityPro ETF⁽¹⁾						AdvisorShares Gartman Gold/British Pound ETF (consolidated)			AdvisorShares Gartman Gold/Euro ETF (consolidated)			AdvisorShares Gartman Gold/Yen ETF (consolidated)
	Year ended June 30, 2014			Year ended June 30, 2013			Year ended June 30, 2014			For the period July 10, 2012* to June 30, 2013			For the period February 11, 2014* to June 30, 2014			For the period February 11, 2014* to June 30, 2014			For the period February 11, 2014* to June 30, 2014
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income (Loss)	$	514,710		$	1,014,497		$	416,909		$	12,958		$	(3,055	)	$	(3,093	)	$	(7,557	)
Net Realized Gain (Loss)		2,606,984			2,304,034			264,841			42,439			(61,115	)		(32,913	)		(161,492	)
Net Change in Unrealized Appreciation (Depreciation)		927,505			(824,107	)		1,054,167			106,390			40,103			58,232			140,838
Net Increase (Decrease) In Net Assets Resulting From Operations		4,049,199			2,494,424			1,735,917			161,787			(24,067	)		22,226			(28,211	)
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income		—			(1,451,034	)		(154,669	)		(6,753	)		—			—			—
Net Realized Gains		—			—			—			(948	)		—			—			—
Total Distributions		—			(1,451,034	)		(154,669	)		(7,701	)		—			—			—
CAPITAL STOCK TRANSACTIONS
Proceeds from Shares Issued		1,306,971			12,334			20,096,255			2,500,000			1,280,000			1,280,000			3,909,508
Value of Shares Redeemed		(18,631,777	)		(29,284,343	)		(2,964,386	)		(1,297,563	)		—			—			—
Net Increase (Decrease) From Capital Stock Transactions		(17,324,806	)		(29,272,009	)		17,131,869			1,202,437			1,280,000			1,280,000			3,909,508
Net Increase (Decrease) in Net Assets		(13,275,607	)		(28,228,619	)		18,713,117			1,356,523			1,255,933			1,302,226			3,881,297
Net Assets:
Beginning of Period		49,942,329			78,170,948			1,356,523			—			—			—			—
End of Period	$	36,666,722		$	49,942,329		$	20,069,640		$	1,356,523		$	1,255,933		$	1,302,226		$	3,881,297
Undistributed Net Investment Income (Loss)	$	354,155		$	(142,589	)	$	269,918		$	5,352		$	(3,055	)	$	(3,093	)	$	(7,557	)
Changes in Shares Outstanding
Shares Outstanding, Beginning of Period		2,100,000			3,300,000			50,000			—			—			—			—
Shares Sold		50,000			—			675,000			100,000			100,000			100,000			300,000
Shares Repurchased		(750,000	)		(1,200,000	)		(100,000	)		(50,000	)		—			—			—
End of Period		1,400,000			2,100,000			625,000			50,000			100,000			100,000			300,000

See accompanying Notes to Financial Statements.

193

TABLE OF CONTENTS

ADVISORSHARES TRUST
Statements of Changes in Net Assets


	AdvisorShares Global Echo ETF						AdvisorShares International Gold ETF			AdvisorShares Madrona Domestic ETF
	Year ended June 30, 2014			Year ended June 30, 2013			For the period February 11, 2014* to June 30, 2014			Year ended June 30, 2014			Year ended June 30, 2013
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income (Loss)	$	26,912		$	(6,054	)	$	(4,631	)	$	66,719		$	83,034
Net Realized Gain (Loss)		33,814			187,729			124			2,601,716			1,105,722
Net Change in Unrealized Appreciation (Depreciation)		673,768			127,314			12,342			2,619,735			2,851,528
Net Increase (Decrease) In Net Assets Resulting From Operations		734,494			308,989			7,835			5,288,170			4,040,284
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income		(2,380	)		—			—			(59,938	)		(73,945	)
Net Realized Gains		—			(23,426	)		—			—			—
Total Distributions		(2,380	)		(23,426	)		—			(59,938	)		(73,945	)
CAPITAL STOCK TRANSACTIONS
Proceeds from Shares Issued		3,045,916			5,247,921			1,280,000			10,327,769			6,508,179
Value of Shares Redeemed		—			(5,175,016	)		—			(9,393,829	)		(7,069,627	)
Net Increase (Decrease) From Capital Stock Transactions		3,045,916			72,905			1,280,000			933,940			(561,448	)
Net Increase (Decrease) in Net Assets		3,778,030			358,468			1,287,835			6,162,172			3,404,891
Net Assets:
Beginning of Period		5,438,085			5,079,617			—			18,593,111			15,188,220
End of Period	$	9,216,115		$	5,438,085		$	1,287,835		$	24,755,283		$	18,593,111
Undistributed Net Investment Income (Loss)	$	30,808		$	2,380		$	(4,507	)	$	33,249		$	28,705
Changes in Shares Outstanding
Shares Outstanding, Beginning of Period		100,000			100,000			—			575,000			600,000
Shares Sold		50,000			100,000			100,000			275,000			225,000
Shares Repurchased		—			(100,000	)		—			(250,000	)		(250,000	)
End of Period		150,000			100,000			100,000			600,000			575,000

Commencement of operations.

See accompanying Notes to Financial Statements.

194

TABLE OF CONTENTS

ADVISORSHARES TRUST
Statements of Changes in Net Assets


	AdvisorShares Madrona Global Bond ETF						AdvisorShares Madrona International ETF							AdvisorShares Meidell Tactical Advantage ETF						AdvisorShares Newfleet Multi-Sector Income ETF
	Year ended June 30, 2014			Year ended June 30, 2013			Year ended June 30, 2014				Year ended June 30, 2013			Year ended June 30, 2014			Year ended June 30, 2013			Year ended June 30, 2014			For the period March 19, 2013* to June 30, 2013
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income (Loss)	$	763,418		$	630,435		$	265,073			$	246,686		$	67,957		$	36,417		$	2,658,998		$	400,687
Net Realized Gain (Loss)		(166,336	)		168,222			2,099,473		��		692,737			223,038			936,023			(52,072	)		(25,422	)
Net Change in Unrealized Appreciation (Depreciation)		1,351,960			(789,608	)		1,576,909				1,095,122			491,104			(25,603	)		2,057,227			(1,656,249	)
Net Increase (Decrease) In Net Assets Resulting From Operations		1,949,042			9,049			3,941,455				2,034,545			782,099			946,837			4,664,153			(1,280,984	)
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income		(761,153	)		(624,855	)		(318,396	)			(185,288	)		—			(64,270	)		(2,905,125	)		(400,645	)
Net Realized Gains		—			(3,106	)		—				—			—			—			—			—
Total Distributions		(761,153	)		(627,961	)		(318,396	)			(185,288	)		—			(64,270	)		(2,905,125	)		(400,645	)
CAPITAL STOCK TRANSACTIONS
Proceeds from Shares Issued		1,282,317			7,924,963			6,765,707				8,719,712			22,189,205			22,505,890			72,137,339			85,043,450
Value of Shares Redeemed		(630,454	)		(5,958,081	)		(6,088,375	)			(9,809,428	)		(16,430,574	)		(19,832,014	)		(2,447,417	)		—
Net Increase (Decrease) From Capital Stock Transactions		651,863			1,966,882			677,332				(1,089,716	)		5,758,631			2,673,876			69,689,922			85,043,450
Net Increase (Decrease) in Net Assets		1,839,752			1,347,970			4,300,391				759,541			6,540,730			3,556,443			71,448,950			83,361,821
Net Assets:
Beginning of Period		22,542,939			21,194,969			14,978,257				14,218,716			9,208,852			5,652,409			83,361,821			—
End of Period	$	24,382,691		$	22,542,939		$	19,278,648			$	14,978,257		$	15,749,582		$	9,208,852		$	154,810,771		$	83,361,821
Undistributed Net Investment Income (Loss)	$	13,352		$	12,454		$	208,792			$	211,004		$	67,182		$	(437	)	$	77,533		$	42
Changes in Shares Outstanding
Shares Outstanding, Beginning of Period		900,000			825,000			625,000				675,000			325,000			225,000			1,700,000			—
Shares Sold		50,000			300,000			250,000				350,000			750,000			800,000			1,450,000			1,700,000
Shares Repurchased		(25,000	)		(225,000	)		(225,000	)			(400,000	)		(550,000	)		(700,000	)		(50,000	)		—
End of Period		925,000			900,000			650,000				625,000			525,000			325,000			3,100,000			1,700,000

See accompanying Notes to Financial Statements.

195

TABLE OF CONTENTS

ADVISORSHARES TRUST
Statements of Changes in Net Assets


	AdvisorShares Peritus High Yield ETF						AdvisorShares Pring Turner Business Cycle ETF
	Year ended June 30, 2014			Year ended June 30, 2013			Year ended June 30, 2014			For the period December 18, 2012* to June 30, 2013
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income (Loss)	$	46,696,979		$	14,982,941		$	48,924		$	28,574
Net Realized Gain (Loss)		7,747			410,917			128,393			(20,383	)
Net Change in Unrealized Appreciation (Depreciation)		28,680,594			2,388,124			580,835			(28,055	)
Net Increase (Decrease) In Net Assets Resulting From Operations		75,385,320			17,781,982			758,152			(19,864	)
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income		(45,294,692	)		(14,668,314	)		(59,326	)		—
Net Realized Gains		(385,440	)		(20,661	)		—			—
Total Distributions		(45,680,132	)		(14,688,975	)		(59,326	)		—
CAPITAL STOCK TRANSACTIONS
Proceeds from Shares Issued		786,562,567			172,000,936			1,309,926			5,748,989
Value of Shares Redeemed		—			(7,693,597	)		(2,663,641	)		—
Net Increase (Decrease) From Capital Stock Transactions		786,562,567			164,307,339			(1,353,715	)		5,748,989
Net Increase (Decrease) in Net Assets		816,267,755			167,400,346			(654,889	)		5,729,125
Net Assets:
Beginning of Period		259,728,835			92,328,489			5,729,125			—
End of Period	$	1,075,996,590		$	259,728,835		$	5,074,236		$	5,729,125
Undistributed Net Investment Income (Loss)	$	1,623,319		$	535,653		$	18,295		$	28,724
Changes in Shares Outstanding
Shares Outstanding, Beginning of Period		5,150,000			1,900,000			225,000			—
Shares Sold		15,050,000			3,400,000			50,000			225,000
Shares Repurchased		—			(150,000	)		(100,000	)		—
End of Period		20,200,000			5,150,000			175,000			225,000

Commencement of operations.

See accompanying Notes to Financial Statements.

196

TABLE OF CONTENTS

ADVISORSHARES TRUST
Statements of Changes in Net Assets


	AdvisorShares QAM Equity Hedge ETF						AdvisorShares Ranger Equity Bear ETF						AdvisorShares Sage Core Reserves ETF			AdvisorShares STAR Global Buy-Write ETF
	Year ended June 30, 2014			For the period August 7, 2012* to June 30, 2013			Year ended June 30, 2014			Year ended June 30, 2013			For the period January 14, 2014* to June 30, 2014			Year ended June 30, 2014			For the period September 17, 2012* to June 30, 2013
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income (Loss)	$	(48,172	)	$	(16,228	)	$	(4,722,034	)	$	(8,381,936	)	$	119,779		$	(102,119	)	$	(16,633	)
Net Realized Gain (Loss)		338,357			12,398			(48,679,864	)		(91,193,659	)		2,015			339,698			(269,448	)
Net Change in Unrealized Appreciation (Depreciation)		292,416			195,527			(3,692,274	)		(11,309,064	)		(78,606	)		2,240,003			(641,523	)
Net Increase (Decrease) In Net Assets Resulting From Operations		582,601			191,697			(57,094,172	)		(110,884,659	)		43,188			2,477,582			(927,604	)
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income		—			(11,280	)		—			—			(119,991	)		—			(91,839	)
Net Realized Gains		(119,153	)		(15,366	)		—			—			—			—			(17,177	)
Total Distributions		(119,153	)		(26,646	)		—			—			(119,991	)		—			(109,016	)
CAPITAL STOCK TRANSACTIONS
Proceeds from Shares Issued		5,525,090			3,766,470			66,544,424			236,542,256			37,495,615			4,947,012			23,464,423
Value of Shares Redeemed		(1,377,532	)		—			(65,855,506	)		(220,523,864	)		—			(2,362,662	)		—
Net Increase (Decrease) From Capital Stock Transactions		4,147,558			3,766,470			688,918			16,018,392			37,495,615			2,584,350			23,464,423
Net Increase (Decrease) in Net Assets		4,611,006			3,931,521			(56,405,254	)		(94,866,267	)		37,418,812			5,061,932			22,427,803
Net Assets:
Beginning of Period		3,931,521			—			218,357,216			313,223,483			—			22,427,803			—
End of Period	$	8,542,527		$	3,931,521		$	161,951,962		$	218,357,216		$	37,418,812		$	27,489,735		$	22,427,803
Undistributed Net Investment Income (Loss)	$	—		$	(17,470	)	$	(2,033,900	)	$	(3,078,610	)	$	8,116		$	(60,353	)	$	(109,831	)
Changes in Shares Outstanding
Shares Outstanding, Beginning of Period		150,000			—			13,500,000			13,425,000			—			950,000			—
Shares Sold		200,000			150,000			4,950,000			11,850,000			375,000			200,000			950,000
Shares Repurchased		(50,000	)		—			(4,700,000	)		(11,775,000	)		—			(100,000	)		—
End of Period		300,000			150,000			13,750,000			13,500,000			375,000			1,050,000			950,000

See accompanying Notes to Financial Statements.

197

TABLE OF CONTENTS

ADVISORSHARES TRUST
Statements of Changes in Net Assets


	AdvisorShares TrimTabs Float Shrink ETF						AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF						AdvisorShares YieldPro ETF
	Year ended June 30, 2014			Year ended June 30, 2013			Year ended June 30, 2014			Year ended June 30, 2013			For the period March 4, 2014* to June 30, 2014
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income (Loss)	$	831,991		$	77,198		$	48,335		$	25,558		$	675,347
Net Realized Gain (Loss)		10,973,199			2,467,788			70,960			(4,822	)		(769,325	)
Net Change in Unrealized Appreciation (Depreciation)		5,511,917			92,939			1,505,268			900,436			1,250,673
Net Increase (Decrease) In Net Assets Resulting From Operations		17,317,107			2,637,925			1,624,563			921,172			1,156,695
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income		(300,553	)		(69,329	)		(54,540	)		(37,975	)		(532,662	)
Net Realized Gains		—			(40,008	)		—			—			—
Total Distributions		(300,553	)		(109,337	)		(54,540	)		(37,975	)		(532,662	)
CAPITAL STOCK TRANSACTIONS
Proceeds from Shares Issued		402,230,886			57,124,119			5,438,789			—			72,033,809
Value of Shares Redeemed		(307,889,188	)		(42,286,488	)		(1,694,175	)		—			(622,577	)
Net Increase (Decrease) From Capital Stock Transactions		94,341,698			14,837,631			3,744,614			—			71,411,232
Net Increase (Decrease) in Net Assets		111,358,252			17,366,219			5,314,637			883,197			72,035,265
Net Assets:
Beginning of Period		25,657,093			8,290,874			7,345,606			6,462,409			—
End of Period	$	137,015,345		$	25,657,093		$	12,660,243		$	7,345,606		$	72,035,265
Undistributed Net Investment Income (Loss)	$	552,118		$	20,680		$	—		$	2,589		$	142,685
Changes in Shares Outstanding
Shares Outstanding, Beginning of Period		625,000			250,000			225,000			225,000			—
Shares Sold		8,600,000			1,500,000			150,000			—			2,875,000
Shares Repurchased		(6,550,000	)		(1,125,000	)		(50,000	)		—			(25,000	)
End of Period		2,675,000			625,000			325,000			225,000			2,850,000

Commencement of operations.

See accompanying Notes to Financial Statements.

198

TABLE OF CONTENTS

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
	For the year ended June 30, 2014			For the period July 18, 2013* to June 30, 2014			For the year ended June 30, 2014			For the year ended June 30, 2014
CASH FLOWS PROVIDED (USED) BY OPERATING ACTIVITIES:
Dividends and Interest received	$	829,193		$	2,496		$	62,666		$	109,485
Operating expenses paid		(584,000	)		(8,268	)		(78,284	)		(2,852,382	)
Net purchases of short-term investments		(961,696	)		(51,503	)		264,345			33,368,924
Realized gain (loss) on swap and option contracts		(2,622,244	)		—			6,088			—
Purchases of long-term investments		(130,487,517	)		(705,000	)		(16,265,276	)		(29,997,150	)
Proceeds from disposition of long-term investments		150,565,809			—			11,982,633			—
Increase/Decrease in receivables for securities sold		—			—			298,378			10,145,537
Increase/Decrease in payables for securities purchased		(1,068,007	)		—			(331,779	)		(23,355,764	)
Net increase in short sales		(10,559,894	)		568,074			733,348			(106,166,674	)
Dividends paid		(120,503	)		(35,667	)		—			(1,021,818	)
Interest paid		(143,807	)		(15,376	)		(12,983	)		(1,058,848	)
Net Cash Flows Provided (Used) By Operating Activities		4,847,334			(245,244	)		(3,340,864	)		(120,828,690	)
CASH FLOWS PROVIDED (USED) BY FINANCING ACTIVITIES:
Distributions from net investment income and realized gains		—			—			(119,153	)		—
Net proceeds from sale of shares		(13,593,463	)		1,362,843			4,147,558			(6,579,258	)
Deposits with brokers for swap contracts and short sales		10,346,416			(517,047	)		(717,794	)		87,101,683
Net Cash Flows Provided (Used) By Financing Activities		(3,247,047	)		845,796			3,310,611			80,522,425
NET INCREASE/DECREASE IN CASH		1,600,287			600,552			(30,253	)		(40,306,265	)
Cash, Beginning of period		(1,588,335	)		—			33,117			116,415,412
Cash, End of period	$	11,952		$	600,552		$	2,864		$	76,109,147
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	$	(2,006,338	)	$	(342,885	)	$	582,601		$	(57,094,172	)
Increase/Decrease in investments, at value		7,076,946			81,443			(3,904,534	)		(50,422,762	)
Increase/Decrease in payable for securities purchased		(1,068,007	)		—			(331,779	)		(23,355,764	)
Increase/Decrease in receivable for securities sold		—			—			298,378			10,145,537
Increase/Decrease in dividends and interest receivable		317,207			(61	)		(3,143	)		1,829
Increase/Decrease in unrealized appreciation (depreciation) on swaps		712,386			—			(5,101	)		—
Increase/Decrease in prepaid expense		(550	)		(7,750	)		74			1,705
Increase/Decrease in interest payable		(56,352	)		—			(108	)		(31,030	)
Increase/Decrease in dividends payable		(120,503	)		190			—			7,419
Increase/Decrease in accrued expenses		(7,455	)		23,819			22,748			(81,452	)
Total Adjustments		6,853,672			97,641			(3,923,465	)		(63,734,518	)
Net Cash Flows Provided (Used) By Operating Activities	$	4,847,334		$	(245,244	)	$	(3,340,864	)	$	(120,828,690	)

Commencement of operations.

See accompanying Notes to Financial Statements.

199

TABLE OF CONTENTS

ADVISORSHARES TRUST
Financial Highlights


	AdvisorShares Accuvest Global Long Short ETF
	Year ended June 30, 2014			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)⁽²⁾		(0.08	)		(0.34	)		(0.68	)		(0.67	)
Net Realized and Unrealized Gain (Loss)		(1.03	)		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		(1.11	)		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	$	20.72		$	21.83		$	21.20		$	20.86
Market Value, End of Period	$	20.72		$	21.98		$	21.22		$	20.86
Total Return
Total Investment Return Based on Net Asset Value⁽⁴⁾		(5.08	)%		2.97	%		3.15	%		(16.56	)%
Total Investment Return Based on Market⁽⁴⁾		(5.73	)%		3.58	%		3.24	%		(16.56	)%
Ratios/Supplemental Data
Net Assets, End of Period (000's omitted)	$	25,896		$	42,573		$	18,022		$	9,385
Ratio to Average Net Assets of:
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense⁽⁵⁾		1.50	%		1.50	%		1.50	%		1.50	%
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense⁽⁵⁾		1.89	%		4.25	%		8.15	%		3.33	%
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense⁽⁵⁾		1.66	%		1.79	%		3.88	%		1.73	%
Net investment Income (Loss)⁽⁵⁾		(0.39	)%		(1.57	)%		(3.20	)%		(2.82	)%
Portfolio Turnover Rate⁽⁶⁾		226	%		270	%		365	%		751	%

Commencement of operations.

(1)

Formerly known as, AdvisorShares Global Alpha & Beta ETF.

(2)

Based on average shares outstanding.

(3)

Less than $0.005.

(4)

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.

(5)

Ratios of periods of less than one year have been annualized.

(6)

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

See accompanying Notes to Financial Statements.

200

TABLE OF CONTENTS

ADVISORSHARES TRUST
Financial Highlights


	AdvisorShares Accuvest Global Opportunities ETF									AdvisorShares Athena International Bear ETF			AdvisorShares Cambria Global Tactical ETF
	Year ended June 30, 2014			Year ended June 30, 2013			For the period January 25, 2012* to June 30, 2012			For the period July 18, 2013* to June 30, 2014			Year ended June 30, 2014			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	$	26.41		$	24.44		$	25.00		$	25.00		$	23.78		$	23.69		$	25.92		$	25.10
Investment Operations
Net Investment Income (Loss)⁽²⁾		0.23			0.12			0.31			(0.99	)		0.30			0.38			0.21			0.25
Net Realized and Unrealized Gain (Loss)		1.07			2.16			(0.87	)		(3.61	)		2.11			0.27			(2.24	)		0.79
Distributions of Net Realized Gains by other investment companies		—			—			—			—			—			0.00	⁽³⁾		—			—
Net Increase (Decrease) in Net Assets Resulting from InvestmentOperations		1.30			2.28			(0.56	)		(4.60	)		2.41			0.65			(2.03	)		1.04
Distributions from Net Investment Income		(0.21	)		(0.31	)		—			—			—			(0.56	)		—			(0.22	)
Distributions from Realized Capital Gains		—			—			—			—			—			—			(0.20	)		—
Total Distributions		(0.21	)		(0.31	)		—			—			—			(0.56	)		(0.20	)		(0.22	)
Net Asset Value, End of Period	$	27.50		$	26.41		$	24.44		$	20.40		$	26.19		$	23.78		$	23.69		$	25.92
Market Value, End of Period	$	27.48		$	26.41		$	24.45		$	20.38		$	26.16		$	23.79		$	23.64		$	25.93
Total Return
Total Investment Return Based on Net Asset Value⁽⁴⁾		4.89	%		9.25	%		(2.24	)%		(18.40	)%		10.13	%		2.68	%		(7.84	)%		4.17	%
Total Investment Return Based on Market⁽⁴⁾		4.83	%		9.18	%		(2.20	)%		(18.48	)%		9.96	%		2.92	%		(8.07	)%		4.20	%
Ratios/Supplemental Data
Net Assets, End of Period (000's omitted)	$	25,434		$	17,830		$	13,442		$	1,020		$	36,667		$	49,942		$	78,171		$	178,837
Ratio to Average Net Assets of:
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense⁽⁵⁾		1.25	%		1.25	%		1.25	%		1.50	%		1.25	%		1.15	%		0.99	%		1.02	%
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense⁽⁵⁾		1.52	%		1.54	%		2.27	%		10.67	%		1.24	%		1.15	%		1.08	%		1.04	%
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense⁽⁵⁾		1.52	%		1.54	%		2.27	%		7.52	%		1.24	%		1.15	%		1.08	%		1.04	%
Net investment Income (Loss)⁽⁵⁾		0.86	%		0.45	%		2.90	%		(4.49	)%		1.19	%		1.54	%		0.87	%		1.45	%
Portfolio Turnover Rate⁽⁶⁾		188	%		100	%		135	%		481	%		232	%		236	%		475	%		187	%

See accompanying Notes to Financial Statements.

201

TABLE OF CONTENTS

ADVISORSHARES TRUST
Financial Highlights


	AdvisorShares EquityPro ETF⁽¹⁾						AdvisorShares Gartman Gold/British Pound ETF (consolidated)			AdvisorShares Gartman Gold/Euro ETF (consolidated)			AdvisorShares Gartman Gold/Yen ETF (consolidated)
	Year ended June 30, 2014			For the period July 10, 2012* to June 30, 2013			For the period February 11, 2014* to June 30, 2014			For the period February 11, 2014* to June 30, 2014			For the period February 11, 2014* to June 30, 2014
Selected Data for a Share of Capital Stock Outstanding
Net Asset Value, Beginning of Period	$	27.13		$	25.00		$	12.80		$	12.80		$	12.80
Investment Operations
Net Investment Income (Loss)⁽²⁾		1.24			0.22			(0.03	)		(0.03	)		(0.03	)
Net Realized and Unrealized Gain (Loss)		4.08			2.06			(0.21	)		0.25			0.17
Distributions of Net Realized Gains by other investment companies		—			—			—			—			—
Net Increase (Decrease) in Net Assets Resulting from Investment Operations		5.32			2.28			(0.24	)		0.22			0.14
Distributions from Net Investment Income		(0.34	)		(0.13	)		—			—			—
Distributions from Realized Capital Gains		—			(0.02	)		—			—			—
Total Distributions		(0.34	)		(0.15	)		—			—			—
Net Asset Value, End of Period	$	32.11		$	27.13		$	12.56		$	13.02		$	12.94
Market Value, End of Period	$	32.11		$	27.12		$	12.61		$	13.07		$	13.04
Total Return
Total Investment Return Based on Net Asset Value⁽⁴⁾		19.71	%		9.16	%		(1.88	)%		1.72	%		1.09	%
Total Investment Return Based on Market⁽⁴⁾		19.76	%		9.11	%		(1.48	)%		2.11	%		1.88	%
Ratios/Supplemental Data
Net Assets, End of Period (000's omitted)	$	20,070		$	1,357		$	1,256		$	1,302		$	3,881
Ratio to Average Net Assets of:
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense⁽⁵⁾		1.25	%		1.25	%		0.65	%		0.65	%		0.65	%
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense⁽⁵⁾		1.92	%		6.95	%		10.87	%		10.72	%		4.74	%
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense⁽⁵⁾		1.92	%		6.95	%		10.87	%		10.72	%		4.74	%
Net investment Income (Loss)⁽⁵⁾		4.13	%		0.88	%		(0.63	)%		(0.63	)%		(0.63	)%
Portfolio Turnover Rate⁽⁶⁾		21	%		43	%		0	%		0	%		0	%

Commencement of operations.

(1)

Formerly known as, AdvisorShares Global Alpha & Beta ETF.

(2)

Based on average shares outstanding.

(3)

Less than $0.005.

(4)

(5)

Ratios of periods of less than one year have been annualized.

(6)

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

See accompanying Notes to Financial Statements.

202

TABLE OF CONTENTS

ADVISORSHARES TRUST
Financial Highlights


	AdvisorShares Global Echo ETF									AdvisorShares International Gold ETF			AdvisorShares Madrona Domestic ETF
	Year ended June 30, 2014			Year ended June 30, 2013			For the period May 23, 2012* to June 30, 2012			For the period February 11, 2014* to June 30, 2014			Year ended June 30, 2014			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	$	54.38		$	50.80		$	50.00		$	12.80		$	32.34		$	25.31		$	26.07		$	25.00
Investment Operations
Net Investment Income (Loss)⁽²⁾		0.22			(0.07	)		(0.02	)		(0.05	)		0.11			0.15			0.10			0.00	⁽³⁾
Net Realized and Unrealized Gain (Loss)		6.86			3.88			0.82			0.13			8.91			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		7.08			3.81			0.80			0.08			9.02			7.16			(0.69	)		1.07
Distributions from Net Investment Income		(0.02	)		—			—			—			(0.10	)		(0.13	)		(0.07	)		—
Distributions from Realized Capital Gains		—			(0.23	)		—			—			—			—			—			—
Total Distributions		(0.02	)		(0.23	)		—			—			(0.10	)		(0.13	)		(0.07	)		—
Net Asset Value, End of Period	$	61.44		$	54.38		$	50.80		$	12.88		$	41.26		$	32.34		$	25.31		$	26.07
Market Value, End of Period	$	61.46		$	54.53		$	50.99		$	12.78		$	41.26		$	32.34		$	25.28		$	26.07
Total Return
Total Investment Return Based on Net Asset Value⁽⁴⁾		13.03	%		7.54	%		1.60	%		0.63	%		27.93	%		28.37	%		(2.65	)%		4.28	%
Total Investment Return Based on Market⁽⁴⁾		12.75	%		7.43	%		1.98	%		(0.16	)%		27.93	%		28.52	%		(2.76	)%		4.28	%
Ratios/Supplemental Data
Net Assets, End of Period (000's omitted)	$	9,216		$	5,438		$	5,080		$	1,288		$	24,755		$	18,593		$	15,188		$	2,607
Ratio to Average Net Assets of:
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense⁽⁵⁾		1.50	%		1.50	%		1.50	%		0.95	%		1.25	%		1.25	%		1.25	%		1.25	%
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense⁽⁵⁾		1.50	%		1.50	%		1.50	%		10.36	%		1.42	%		1.61	%		1.46	%		10.96	%
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense⁽⁵⁾		1.50	%		1.50	%		1.50	%		10.36	%		1.42	%		1.61	%		1.46	%		10.96	%
Net investment Income (Loss)⁽⁵⁾		0.37	%		(0.13	)%		(0.32	)%		(0.95	)%		0.31	%		0.51	%		0.40	%		0.23	%
Portfolio Turnover Rate⁽⁶⁾		157	%		180	%		70	%		2	%		14	%		33	%		40	%		0	%

See accompanying Notes to Financial Statements.

203

TABLE OF CONTENTS

ADVISORSHARES TRUST
Financial Highlights


	AdvisorShares Madrona Global Bond ETF
	Year ended June 30, 2014			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
Investment Operations
Net Investment Income (Loss)⁽²⁾		0.86			0.72			0.71			0.01
Net Realized and Unrealized Gain (Loss)		1.30			(0.66	)		0.67			—
Distributions of Net Realized Gains by other investment companies		—			0.01			—			—
Net Increase (Decrease) in Net Assets Resulting from Investment Operations		2.16			0.07			1.38			0.01
Distributions from Net Investment Income		(0.85	)		(0.71	)		(0.70	)		—
Distributions from Realized Capital Gains		—			(0.00	)⁽³⁾		—			—
Total Distributions		(0.85	)		(0.71	)		(0.70	)		—
Net Asset Value, End of Period	$	26.36		$	25.05		$	25.69		$	25.01
Market Value, End of Period	$	26.42		$	24.96		$	25.68		$	25.02
Total Return
Total Investment Return Based on Net Asset Value⁽⁴⁾		8.80	%		0.20	%		5.59	%		0.04	%
Total Investment Return Based on Market⁽⁴⁾		9.44	%		(0.13	)%		5.49	%		0.08	%
Ratios/Supplemental Data
Net Assets, End of Period (000's omitted)	$	24,383		$	22,543		$	21,195		$	2,501
Ratio to Average Net Assets of:
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense⁽⁵⁾		0.95	%		0.95	%		0.95	%		0.95	%
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense⁽⁵⁾		1.07	%		1.02	%		0.99	%		11.08	%
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense⁽⁵⁾		1.07	%		1.02	%		0.99	%		11.08	%
Net investment Income (Loss)⁽⁵⁾		3.36	%		2.73	%		2.81	%		1.68	%
Portfolio Turnover Rate⁽⁶⁾		20	%		28	%		12	%		0	%

Commencement of operations.

(1)

Formerly known as, AdvisorShares Global Alpha & Beta ETF.

(2)

Based on average shares outstanding.

(3)

Less than $0.005.

(4)

(5)

Ratios of periods of less than one year have been annualized.

(6)

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

See accompanying Notes to Financial Statements.

204

TABLE OF CONTENTS

ADVISORSHARES TRUST
Financial Highlights


	AdvisorShares Madrona International ETF												AdvisorShares Meidell Tactical Advantage ETF
	Year ended June 30, 2014			Year ended June 30, 2013			Year ended June 30, 2012			For the period June 21, 2011* to June 30, 2011			Year ended June 30, 2014			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	$	23.97		$	21.06		$	26.17		$	25.00		$	28.33		$	25.12		$	25.06		$	25.00
Investment Operations
Net Investment Income (Loss)⁽²⁾		0.41			0.39			0.32			0.01			0.14			0.14			0.00	⁽³⁾		0.01
Net Realized and Unrealized Gain (Loss)		5.77			2.82			(5.33	)		1.16			1.53			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		6.18			3.21			(5.01	)		1.17			1.67			3.44			0.08			0.06
Distributions from Net Investment Income		(0.49	)		(0.30	)		(0.08	)		—			—			(0.23	)		(0.02	)		—
Distributions from Realized Capital Gains		—			—			(0.02	)		—			—			—			—			—
Total Distributions		(0.49	)		(0.30	)		(0.10	)		—			—			(0.23	)		(0.02	)		—
Net Asset Value, End of Period	$	29.66		$	23.97		$	21.06		$	26.17		$	30.00		$	28.33		$	25.12		$	25.06
Market Value, End of Period	$	29.58		$	23.95		$	21.11		$	26.18		$	30.00		$	28.37		$	25.48		$	25.07
Total Return
Total Investment Return Based on Net Asset Value⁽⁴⁾		25.91	%		15.24	%		(19.11	)%		4.68	%		5.89	%		13.81	%		0.31	%		0.24	%
Total Investment Return Based on Market⁽⁴⁾		25.64	%		14.86	%		(18.95	)%		4.72	%		5.75	%		12.33	%		1.71	%		0.28	%
Ratios/Supplemental Data
Net Assets, End of Period (000's omitted)	$	19,279		$	14,978		$	14,219		$	2,617		$	15,750		$	9,209		$	5,652		$	2,506
Ratio to Average Net Assets of:
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense⁽⁵⁾		1.25	%		1.25	%		1.25	%		1.25	%		1.35	%		1.35	%		1.35	%		1.35	%
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense⁽⁵⁾		1.55	%		1.65	%		1.54	%		10.99	%		2.12	%		2.99	%		3.69	%		13.70	%
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense⁽⁵⁾		1.55	%		1.65	%		1.54	%		10.99	%		2.12	%		2.99	%		3.69	%		13.70	%
Net investment Income (Loss)⁽⁵⁾		1.48	%		1.65	%		1.48	%		1.14	%		0.49	%		0.51	%		0.01	%		1.00	%
Portfolio Turnover Rate⁽⁶⁾		182	%		93	%		110	%		19	%		687	%		605	%		817	%		5	%

See accompanying Notes to Financial Statements.

205

TABLE OF CONTENTS

ADVISORSHARES TRUST
Financial Highlights


	AdvisorShares Newfleet Multi-Sector Income ETF
	Year ended June 30, 2014			For the period March 19, 2013* to June 30, 2013
Selected Data for a Share of Capital Stock Outstanding
Net Asset Value, Beginning of Period	$	49.04		$	50.00
Investment Operations
Net Investment Income (Loss)⁽²⁾		1.26			0.28
Net Realized and Unrealized Gain (Loss)		0.99			(0.99	)
Distributions of Net Realized Gains by other investment companies		—			—
Net Increase (Decrease) in Net Assets Resulting from Investment Operations		2.25			(0.71	)
Distributions from Net Investment Income		(1.35	)		(0.25	)
Distributions from Realized Capital Gains		—			—
Total Distributions		(1.35	)		(0.25	)
Net Asset Value, End of Period	$	49.94		$	49.04
Market Value, End of Period	$	49.94		$	49.01
Total Return
Total Investment Return Based on Net Asset Value⁽⁴⁾		4.65	%		(1.42	)%
Total Investment Return Based on Market⁽⁴⁾		4.70	%		(1.48	)%
Ratios/Supplemental Data
Net Assets, End of Period (000's omitted)	$	154,811		$	83,362
Ratio to Average Net Assets of:
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense⁽⁵⁾		0.75	%		0.75	%
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense⁽⁵⁾		0.83	%		1.13	%
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense⁽⁵⁾		0.83	%		1.13	%
Net investment Income (Loss)⁽⁵⁾		2.55	%		1.98	%
Portfolio Turnover Rate⁽⁶⁾		85	%		105	%

Commencement of operations.

(1)

Formerly known as, AdvisorShares Global Alpha & Beta ETF.

(2)

Based on average shares outstanding.

(3)

Less than $0.005.

(4)

(5)

Ratios of periods of less than one year have been annualized.

(6)

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

See accompanying Notes to Financial Statements.

206

TABLE OF CONTENTS

ADVISORSHARES TRUST
Financial Highlights


	AdvisorShares Peritus High Yield ETF												AdvisorShares Pring Turner Business Cycle ETF
	Year ended June 30, 2014			Year ended June 30, 2013			Year ended June 30, 2012			For the period December 1, 2010* to June 30, 2011			Year ended June 30, 2014			For the period December 18, 2012* to June 30, 2013
Selected Data for a Share of Capital Stock Outstanding
Net Asset Value, Beginning of Period	$	50.43		$	48.59		$	51.59		$	50.00		$	25.46		$	25.00
Investment Operations
Net Investment Income (Loss)⁽²⁾		4.14			4.28			4.20			2.25			0.24			0.18
Net Realized and Unrealized Gain (Loss)		2.69			1.66			(2.74	)		1.30			3.60			0.28
Distributions of Net Realized Gains by other investment companies		—			—			0.00	⁽³⁾		—			—			—
Net Increase (Decrease) in Net Assets Resulting from Investment Operations		6.83			5.94			1.46			3.55			3.84			0.46
Distributions from Net Investment Income		(3.95	)		(4.09	)		(3.99	)		(1.96	)		(0.30	)		—
Distributions from Realized Capital Gains		(0.04	)		(0.01	)		(0.47	)		—			—			—
Total Distributions		(3.99	)		(4.10	)		(4.46	)		(1.96	)		(0.30	)		—
Net Asset Value, End of Period	$	53.27		$	50.43		$	48.59		$	51.59		$	29.00		$	25.46
Market Value, End of Period	$	53.27		$	49.91		$	48.64		$	51.87		$	29.04		$	25.47
Total Return
Total Investment Return Based on Net Asset Value⁽⁴⁾		14.04	%		12.58	%		3.27	%		7.16	%		15.19	%		1.84	%
Total Investment Return Based on Market⁽⁴⁾		15.20	%		11.29	%		2.75	%		7.73	%		15.30	%		1.88	%
Ratios/Supplemental Data
Net Assets, End of Period (000's omitted)	$	1,075,997		$	259,729		$	92,328		$	43,851		$	5,074		$	5,729
Ratio to Average Net Assets of:
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense⁽⁵⁾		1.18	%		1.25	%		1.35	%		1.34	%		1.49	%		1.49	%
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense⁽⁵⁾		1.18	%		1.23	%		1.35	%		1.57	%		2.55	%		4.70	%
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense⁽⁵⁾		1.18	%		1.23	%		1.35	%		1.57	%		2.55	%		4.70	%
Net investment Income (Loss)⁽⁵⁾		7.95	%		8.44	%		8.64	%		7.47	%		0.91	%		1.35	%
Portfolio Turnover Rate⁽⁶⁾		87	%		37	%		80	%		81	%		35	%		26	%

See accompanying Notes to Financial Statements.

207

TABLE OF CONTENTS

ADVISORSHARES TRUST
Financial Highlights


	AdvisorShares QAM Equity Hedge ETF
	Year ended June 30, 2014			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	$	26.21		$	25.00
Investment Operations
Net Investment Income (Loss)⁽²⁾		(0.20	)		(0.12	)
Net Realized and Unrealized Gain (Loss)		2.95			1.51
Distributions of Net Realized Gains by other investment companies		—			—
Net Increase (Decrease) in Net Assets Resulting from Investment Operations		2.75			1.39
Distributions from Net Investment Income		—			(0.08	)
Distributions from Realized Capital Gains		(0.48	)		(0.10	)
Total Distributions		(0.48	)		(0.18	)
Net Asset Value, End of Period	$	28.48		$	26.21
Market Value, End of Period	$	28.45		$	26.16
Total Return
Total Investment Return Based on Net Asset Value⁽⁴⁾		10.52	%		5.57	%
Total Investment Return Based on Market⁽⁴⁾		10.62	%		5.36	%
Ratios/Supplemental Data
Net Assets, End of Period (000's omitted)	$	8,543		$	3,932
Ratio to Average Net Assets of:
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense⁽⁵⁾		1.50	%		1.50	%
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense⁽⁵⁾		2.66	%		4.61	%
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense⁽⁵⁾		2.46	%		4.55	%
Net investment Income (Loss)⁽⁵⁾		(0.71	)%		(0.50	)%
Portfolio Turnover Rate⁽⁶⁾		179	%		114	%

Commencement of operations.

(1)

Formerly known as, AdvisorShares Global Alpha & Beta ETF.

(2)

Based on average shares outstanding.

(3)

Less than $0.005.

(4)

(5)

Ratios of periods of less than one year have been annualized.

(6)

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

See accompanying Notes to Financial Statements.

208

TABLE OF CONTENTS

ADVISORSHARES TRUST
Financial Highlights


	AdvisorShares Ranger Equity Bear ETF													AdvisorShares Sage Core Reserves ETF			AdvisorShares STAR Global Buy-Write ETF
	Year ended June 30, 2014				Year ended June 30, 2013			Year ended June 30, 2012			For the period January 27, 2011* to June 30, 2011			For the period January 14, 2014* to June 30, 2014			Year ended June 30, 2014			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		$	100.00		$	23.61		$	25.00
Investment Operations
Net Investment Income (Loss)⁽²⁾		(0.38	)			(0.60	)		(0.72	)		(0.30	)		0.36			(0.10	)		(0.03	)
Net Realized and Unrealized Gain (Loss)		(4.01	)	��		(6.56	)		1.40			(2.05	)		(0.25	)		2.67			(1.16	)
Distributions of Net Realized Gains by other investment companies		—				—			—			—			—			—			—
Net Increase (Decrease) in Net Assets Resulting from Investment Operations		(4.39	)			(7.16	)		0.68			(2.35	)		0.11			2.57			(1.19	)
Distributions from Net Investment Income		—				—			—			—			(0.33	)		—			(0.17	)
Distributions from Realized Capital Gains		—				—			—			—			—			—			(0.03	)
Total Distributions		—				—			—			—			(0.33	)		—			(0.20	)
Net Asset Value, End of Period	$	11.78			$	16.17		$	23.33		$	22.65		$	99.78		$	26.18		$	23.61
Market Value, End of Period	$	11.79			$	16.16		$	23.34		$	22.65		$	99.80		$	26.22		$	23.62
Total Return
Total Investment Return Based on Net Asset Value⁽⁴⁾		(27.15	)%			(30.69	)%		3.00	%		(9.40	)%		0.11	%		10.89	%		(4.80	)%
Total Investment Return Based on Market⁽⁴⁾		(27.04	)%			(30.76	)%		3.05	%		(9.40	)%		0.13	%		11.01	%		(4.76	)%
Ratios/Supplemental Data
Net Assets, End of Period (000's omitted)	$	161,952			$	218,357		$	313,223		$	50,389		$	37,419		$	27,490		$	22,428
Ratio to Average Net Assets of:
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense⁽⁵⁾		1.65	%			1.61	%		1.69	%		1.79	%		0.35	%		1.85	%		1.85	%
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense⁽⁵⁾		2.87	%			3.12	%		3.06	%		3.16	%		0.73	%		1.79	%		2.35	%
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense⁽⁵⁾		1.65	%			1.61	%		1.68	%		1.88	%		0.73	%		1.79	%		2.35	%
Net investment Income (Loss)⁽⁵⁾		(2.81	)%			(3.11	)%		(3.06	)%		(3.07	)%		0.78	%		(0.42	)%		(0.14	)%
Portfolio Turnover Rate⁽⁶⁾		484	%			697	%		756	%		635	%		12	%		166	%		40	%

See accompanying Notes to Financial Statements.

209

TABLE OF CONTENTS

ADVISORSHARES TRUST
Financial Highlights


	AdvisorShares TrimTabs Float Shrink ETF
	Year ended June 30, 2014			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)⁽²⁾		0.43			0.23			0.07
Net Realized and Unrealized Gain (Loss)		9.89			7.99			6.90
Distributions of Net Realized Gains by other investment companies		—			—			—
Net Increase (Decrease) in Net Assets Resulting from Investment Operations		10.32			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	$	51.22		$	41.05		$	33.16
Market Value, End of Period	$	51.25		$	41.13		$	33.24
Total Return
Total Investment Return Based on Net Asset Value⁽⁴⁾		25.18	%		25.01	%		26.62	%
Total Investment Return Based on Market⁽⁴⁾		25.00	%		24.96	%		26.93	%
Ratios/Supplemental Data
Net Assets, End of Period (000's omitted)	$	137,015		$	25,657		$	8,291
Ratio to Average Net Assets of:
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense⁽⁵⁾		0.99	%		0.99	%		0.99	%
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense⁽⁵⁾		1.16	%		1.90	%		2.34	%
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense⁽⁵⁾		1.16	%		1.90	%		2.34	%
Net investment Income (Loss)⁽⁵⁾		0.90	%		0.62	%		0.31	%
Portfolio Turnover Rate⁽⁶⁾		7	%		57	%		201	%

Commencement of operations.

(1)

Formerly known as, AdvisorShares Global Alpha & Beta ETF.

(2)

Based on average shares outstanding.

(3)

Less than $0.005.

(4)

(5)

Ratios of periods of less than one year have been annualized.

(6)

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

See accompanying Notes to Financial Statements.

210

TABLE OF CONTENTS

ADVISORSHARES TRUST
Financial Highlights


	AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF												AdvisorShares YieldPro ETF
	Year ended June 30, 2014			Year ended June 30, 2013			Year ended June 30, 2012			For the period July 21, 2010* to June 30, 2011			For the period March 4, 2014* to June 30, 2014
Selected Data for a Share of Capital Stock Outstanding
Net Asset Value, Beginning of Period	$	32.65		$	28.72		$	31.46		$	25.00		$	25.00
Investment Operations
Net Investment Income (Loss)⁽²⁾		0.18			0.11			0.07			0.15			0.29
Net Realized and Unrealized Gain (Loss)		6.29			3.99			(2.58	)		6.40			0.20
Distributions of Net Realized Gains by other investment companies		—			0.00	⁽³⁾		—			—			—
Net Increase (Decrease) in Net Assets Resulting from Investment Operations		6.47			4.10			(2.51	)		6.55			0.49
Distributions from Net Investment Income		(0.17	)		(0.17	)		(0.11	)		(0.09	)		(0.21	)
Distributions from Realized Capital Gains		—			—			(0.12	)		—			—
Total Distributions		(0.17	)		(0.17	)		(0.23	)		(0.09	)		(0.21	)
Net Asset Value, End of Period	$	38.95		$	32.65		$	28.72		$	31.46		$	25.28
Market Value, End of Period	$	38.93		$	32.63		$	28.70		$	31.58		$	25.31
Total Return
Total Investment Return Based on Net Asset Value⁽⁴⁾		19.85	%		14.30	%		(7.94	)%		26.21	%		1.95	%
Total Investment Return Based on Market⁽⁴⁾		19.85	%		14.29	%		(8.36	)%		26.69	%		2.07	%
Ratios/Supplemental Data
Net Assets, End of Period (000's omitted)	$	12,660		$	7,346		$	6,462		$	8,651		$	72,035
Ratio to Average Net Assets of:
Expenses, net of expense waivers and reimbursements, excluding interest and dividend expense⁽⁵⁾		1.25	%		1.25	%		1.25	%		1.25	%		1.07	%
Expenses, prior to expense waivers and reimbursements, including interest and dividend expense⁽⁵⁾		1.67	%		2.52	%		4.17	%		3.04	%		1.07	%
Expenses, prior to expense waivers and reimbursements, excluding interest and dividend expense⁽⁵⁾		1.67	%		2.52	%		4.17	%		3.04	%		1.07	%
Net investment Income (Loss)⁽⁵⁾		0.50	%		0.36	%		0.24	%		0.52	%		3.64	%
Portfolio Turnover Rate⁽⁶⁾		24	%		38	%		16	%		34	%		8	%

See accompanying Notes to Financial Statements.

211

TABLE OF CONTENTS

ADVISORSHARES TRUST
Notes to Financial Statements

June 30, 2014

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 24 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 Gartman Gold/British Pound ETF		GGBP		February 11, 2014
AdvisorShares Gartman Gold/Euro ETF		GEUR		February 11, 2014
AdvisorShares Gartman Gold/Yen ETF		GYEN		February 11, 2014
AdvisorShares Global Echo ETF		GIVE		May 23, 2012
AdvisorShares International Gold ETF		GLDE		February 11, 2014
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 Sage Core Reserves ETF		HOLD		January 14, 2014
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
AdvisorShares YieldPro ETF		YPRO		March 4, 2014

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.

212

TABLE OF CONTENTS

ADVISORSHARES TRUST
Notes to Financial Statements (Continued)

June 30, 2014

1. Organization - (continued)

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.

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. 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 Gartman Gold/British Pound ETF (“Gartman Gold/British Pound ETF”) seeks to provide positive returns by utilizing the British pound to invest its assets in the gold market. GGBP offers investors an alternative method to invest in gold by financing gold purchases in liquid currencies other than the U.S. dollar. The British pound is obtained through the sale of either exchange-traded currency futures or “over-the-counter” foreign exchange forward contracts.

AdvisorShares Gartman Gold/Euro ETF (“Gartman Gold/Euro ETF”) seeks to provide positive returns by utilizing the European Union’s Euro to invest its assets in the gold market. GEUR offers investors an alternative method to invest in gold by financing gold purchases in liquid currencies other than the U.S. dollar. Euros are obtained through the sale of either exchange-traded currency futures or “over-the-counter” foreign exchange forward contracts.

AdvisorShares Gartman Gold/Yen ETF (“Gartman Gold/Yen ETF”) seeks to provide positive returns by utilizing the Japanese yen to invest its assets in the gold market. GYEN offers investors an alternative method to invest in gold by financing gold purchases in liquid currencies other than the U.S. dollar. The Japanese yen is obtained through the sale of either exchange-traded currency futures or “over-the-counter” foreign exchange forward contracts.

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, and actively managed ETF with a focus on sustainable investing.

AdvisorShares International Gold ETF (“International Gold ETF”) seeks to provide positive absolute returns by investing in exchange-traded products (ETPs) that provide diversified exposure to the international gold market. GLDE offers investors an alternative method to invest in gold by financing gold purchases in liquid currencies other than the U.S. dollar.

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.

213

TABLE OF CONTENTS

ADVISORSHARES TRUST
Notes to Financial Statements (Continued)

June 30, 2014

1. Organization - (continued)

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. 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, 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 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. 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.

214

TABLE OF CONTENTS

ADVISORSHARES TRUST
Notes to Financial Statements (Continued)

June 30, 2014

1. Organization - (continued)

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. 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 Sage Core Reserves ETF (“Sage Core Reserves ETF”) seeks to preserve capital while maximizing income. The Sub-Advisor seeks to achieve the fund’s investment objective by investing in a variety of fixed income securities, including bonds, forwards and instruments issued by U.S. and foreign issuers. It will invest in U.S. dollar-denominated investment grade debt securities, including mortgage- or asset-backed securities, rated Baa- or higher by Moody’s Investors Service, Inc. (“Moody’s”), or equivalently rated by Standard & Poor’s Ratings Services (“S&P”) or Fitch, Inc. (“Fitch”), or, if unrated, determined by the Sub-Advisor to be of comparable quality.

AdvisorShares STAR Global Buy-Write ETF (“STAR Global Buy-Write ETF”) seeks consistent repeatable returns across all market cycles. 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.

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.

215

TABLE OF CONTENTS

ADVISORSHARES TRUST
Notes to Financial Statements (Continued)

June 30, 2014

1. Organization - (continued)

AdvisorShares YieldPro ETF (“YieldPro ETF”) seeks to provide current income and capital appreciation. The fund is considered a “fund of funds” that seeks to achieve its investment objective by primarily investing in both long and short positions in other affiliated and unaffiliated exchange traded funds (“ETFs”) that offer diversified exposure to fixed income and other income producing securities. It may also invest in equity, inverse or other types of ETFs to supplement its fixed income ETF positions. The fund intends to invest the majority of its assets in investments that provide a competitive yield on a risk-adjusted basis.

2. Consolidation of Subsidiaries

The Consolidated Schedules of Investments; Consolidated Statements of Assets and Liabilities, of Operations and of Changes in Net Assets; and the Consolidated Financial Highlights of the ETFs listed below include the accounts of wholly owned subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation.


Funds		Wholly Owned Subsidiary
Gartman Gold/British Pound ETF		AdvisorShares Gartman Gold/British Pound CFC
Gartman Gold/Euro ETF		AdvisorShares Gartman Gold/Euro CFC
Gartman Gold/Yen ETF		AdvisorShares Gartman Gold/Yen CFC

A summary of each ETF’s investment in its corresponding subsidiary is as follows:


Funds	Inception Date of Subsidiary		Subsidiary Net Assets at June 30, 2014		% of ETF’s Total Net Assets at June 30, 2014
Gartman Gold/British Pound ETF		February 11, 2014	$	140,955		11.2	%
Gartman Gold/Euro ETF		February 11, 2014		140,955		10.8
Gartman Gold/Yen ETF		February 11, 2014		471,910		12.2

3. 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.

216

TABLE OF CONTENTS

ADVISORSHARES TRUST
Notes to Financial Statements (Continued)

June 30, 2014

3. Summary of Significant Accounting Policies - (continued)

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 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

Certain Funds 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.

217

TABLE OF CONTENTS

ADVISORSHARES TRUST
Notes to Financial Statements (Continued)

June 30, 2014

3. Summary of Significant Accounting Policies - (continued)

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, QAM Equity Hedge ETF and Ranger Equity Bear ETF for the year ended June 30, 2014 are $87,455, $15,376, $12,875 and $1,027,818, respectively, which are included as interest on securities sold short, not yet purchsed 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 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

218

TABLE OF CONTENTS

ADVISORSHARES TRUST
Notes to Financial Statements (Continued)

June 30, 2014

3. Summary of Significant Accounting Policies - (continued)

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 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. 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.

219

TABLE OF CONTENTS

ADVISORSHARES TRUST
Notes to Financial Statements (Continued)

June 30, 2014

3. Summary of Significant Accounting Policies - (continued)

The securities lending income earned by the Funds are disclosed on the Statements of Operations. The value of loaned securities and related collateral outstanding at June 30, 2014 are shown in the Schedules of Investments and Statements of Assets and Liabilities.


Liabilities:	Description		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				Net Amount
Fund	Description		Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Statement of Financial Position					Financial Instruments		Collateral Pledged/ Received		Net Amount
Accuvest Global Long Short ETF		Swaps	$	96,214	$	—	$	31,029		$	127,243	$	10,111,289	$	—
Accuvest Global Opportunities		Securities Lending		6,328,525		—		6,328,525			6,328,525*		—		—
Cambria Global Tactical ETF		Securities Lending		6,883,911		—		6,883,911			6,883,911*		—		—
EquityPro ETF		Securities Lending		539,860		—		539,860			539,860*		—		—
Global Echo ETF		Securities Lending		566,100		—		566,100			566,100*		—		—
Madrona Domestic ETF		Securities Lending		39,915		—		39,915			39,915*		—		—
Madrona Global Bond ETF		Securities Lending		7,299,078		—		7,299,078			7,299,078*		—		—
Madrona International ETF		Securities Lending		3,211,866		—		3,211,866	⁽¹⁾		3,211,866*		—		—
Meidell Tactical Advantage ETF		Securities Lending		1,566,357		—		1,566,357			1,566,357*		—		—
Newfleet Multi-Sector Income ETF		Securities Lending		3,070,939		—		3,070,939	⁽¹⁾		3,070,939*		—		—
Peritus High Yield ETF		Securities Lending		166,306,561		—		166,306,561			166,306,561*		—		—
Pring Turner Business Cycle ETF		Securities Lending		429,413		—		429,413			429,413*		—		—
TrimTabs Float Shrink ETF		Securities Lending		2,764,305		—		2,764,305			2,764,305*		—		—
WCM/BNY Mellon Focused Growth ADR ETF		Securities Lending		2,148,039		—		2,148,039			2,148,039*		—		—

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

⁽¹⁾

Includes the value of securities received as collateral which are not shown on the Statements of Assets and Liabilities because the Fund does not have the right to sell or repledge the securities received as collateral.

Dividends and Distributions

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

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.

220

TABLE OF CONTENTS

ADVISORSHARES TRUST
Notes to Financial Statements (Continued)

June 30, 2014

4. 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	%
Gartman Gold/British Pound ETF		0.55	%
Gartman Gold/Euro ETF		0.55	%
Gartman Gold/Yen ETF		0.55	%
Global Echo ETF		1.10	%
International Gold ETF		0.80	%
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	%
Sage Core Reserves ETF		0.30	%
STAR Global Buy-Write ETF		1.35	%
TrimTabs Float Shrink ETF		0.99	%
WCM/BNY Mellon Focused Growth ADR ETF		0.75	%
YieldPro ETF		0.80	%

221

TABLE OF CONTENTS

ADVISORSHARES TRUST
Notes to Financial Statements (Continued)

June 30, 2014

4. 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:


	Rate:
$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.

From time to time, each sub-advisor 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 year ended June 30, 2014 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	%
Gartman Gold/British Pound ETF		0.65	%
Gartman Gold/Euro ETF		0.65	%
Gartman Gold/Yen ETF		0.65	%
Global Echo ETF		—
International Gold ETF		0.95	%
Madrona Domestic ETF		1.25	%
Madrona Global Bond ETF		0.95	%
Madrona International ETF		1.25	%

222

TABLE OF CONTENTS

ADVISORSHARES TRUST
Notes to Financial Statements (Continued)

June 30, 2014

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


Fund:	Rate:
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	%
Sage Core Reserves ETF		0.35	%
STAR Global Buy-Write ETF		1.85	%
TrimTabs Float Shrink ETF		0.99	%
WCM/BNY Mellon Focused Growth ADR ETF		1.25	%
YieldPro ETF		1.25	%

For the year ended June 30, 2014, 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	$	204,653	$	202,243		06/30/2015
		83,973		83,973		06/30/2016
		63,291		63,291		06/30/2017
Total Accuvest Global Long Short ETF		351,917		349,507
Accuvest Global Opportunities ETF		45,384		45,384		06/30/2015
		49,308		49,308		06/30/2016
		55,943		55,943		06/30/2017
Total Accuvest Global Opportunities ETF		150,635		150,635
Athena International Bear ETF		98,092		98,092		06/30/2017
Cambria Global Tactical ETF		129,750		101,464		06/30/2015
		15,570		15,570		06/30/2016
		4,358		4,358		06/30/2017
Total Cambria Global Tactical ETF		149,678		121,392
EquityPro ETF		83,603		83,603		06/30/2016
		67,622		67,622		06/30/2017
Total EquityPro ETF		151,225		151,225
Gartman Gold/British Pound ETF		49,263		49,263		06/30/2017
Gartman Gold/Euro ETF		49,169		49,169		06/30/2017
Gartman Gold/Yen ETF		48,900		48,900		06/30/2017
International Gold ETF		45,849		45,849		06/30/2017
Madrona Domestic ETF		30,175		29,886		06/30/2015
		59,617		59,617		06/30/2016
		35,931		35,931		06/30/2017
Total Madrona Domestic ETF		125,723		125,434

223

TABLE OF CONTENTS

ADVISORSHARES TRUST
Notes to Financial Statements (Continued)

June 30, 2014

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


Fund:	Expenses Reimbursed:		Recoupment Balance:		Recoupment Expiration:
Madrona Global Bond ETF	$	5,992	$	—		06/30/2015
		28,515		8,167		06/30/2016
		27,899		27,899		06/30/2017
Total Madrona Global Bond ETF		62,406		36,066
Madrona International ETF		36,187		36,122		06/30/2015
		60,597		60,597		06/30/2016
		54,221		54,221		06/30/2017
Total Madrona International ETF		151,005		150,940
Meidell Tactical Advantage ETF		79,573		73,208		06/30/2015
		119,857		119,857		06/30/2016
		106,095		106,095		06/30/2017
Total Meidell Tactical Advantage ETF		305,525		299,160
Newfleet Multi-Sector Income ETF		76,615		76,615		06/30/2016
		88,416		88,416		06/30/2017
Total Newfleet Multi-Sector Income ETF		165,031		165,031
Pring Turner Business Cycle ETF		68,085		68,085		06/30/2016
		57,187		57,187		06/30/2017
Total Pring Turner Business Cycle ETF		125,272		125,272
QAM Equity Hedge ETF		98,205		98,205		06/30/2016
		65,019		65,019		06/30/2017
Total QAM Equity Hedge ETF		163,224		163,224
Sage Core Reserves ETF		58,758		58,758		06/30/2017
STAR Global Buy-Write ETF		58,584		41,527		06/30/2016
		3,240		3,240		06/30/2017
Total STAR Global Buy-Write ETF		61,824		44,767
TrimTabs Float Shrink ETF		66,768		66,768		06/30/2015
		113,494		113,494		06/30/2016
		159,385		159,385		06/30/2017
Total TrimTabs Float Shrink ETF		339,647		339,647
WCM/BNY Mellon Focused Growth ADR ETF		214,032		209,961		06/30/2015
		93,893		93,893		06/30/2016
		40,767		40,767		06/30/2017
Total WCM/BNY Mellon Focused Growth ADR ETF		348,692		344,621

As part of its agreement with the Trust, the Advisor has contractually agreed to pay all operating expenses of the Global Echo ETF. 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.

224

TABLE OF CONTENTS

ADVISORSHARES TRUST
Notes to Financial Statements (Continued)

June 30, 2014

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

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.

5. Creation and Redemption Transactions

The Funds issue and redeem shares on a continuous basis at NAV in groups of 25,000 shares, at minimum, called “Creation Units.” Except when aggregated in Creation Units, shares are not redeemable securities of a Fund. Only “Authorized Participants” may purchase or redeem shares directly from each Fund. An Authorized Participant is either (i) a broker-dealer or other participant in the clearing process through the Continuous Net Settlement System of the National Securities Clearing Corporation or (ii) a DTC participant and, in each case, must have executed a Participant Agreement with the Distributor. Most retail investors will not qualify as Authorized Participants or have the resources to buy and sell whole Creation Units. Therefore, they will be unable to purchase or redeem the shares directly from the Fund. Rather, most retail investors will purchase shares in the secondary market with the assistance of a broker and will be subject to customary brokerage commissions or fees.

6. 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

225

TABLE OF CONTENTS

ADVISORSHARES TRUST
Notes to Financial Statements (Continued)

June 30, 2014

6. Summary of Fair Value Disclosure - (continued)

significant event (e.g., an event that occurs after the close of the markets on which the security is traded but before the time as of which a Fund’s net asset value is computed and that may materially affect the value of the Fund’s investment). Examples of events that may be “significant events” are government actions, natural disasters, armed conflicts and acts of terrorism. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of June 30, 2014 in valuing the Funds’ assets carried at fair value:


Assets	Accuvest Global Long Short ETF			Accuvest Global Opportunities ETF		Athena International Bear ETF			Cambria Global Tactical ETF		EquityPro ETF		Gartman Gold/British Pound ETF
Level 1
Exchange Traded Funds	$	24,768,599		$	25,060,226	$	703,660		$	36,476,798	$	19,341,980	$	—
Money Market Fund		961,696			231,471		51,503			400,877		394,334		879,015
Futures†		—			—		—			—		—		62,090
Level 2
Swaps Contracts†		127,243			—		—			—		—		—
Investment of Cash Collateral for Securities Loaned		—			6,328,525		—			6,883,911		539,860		—
Liabilities
Level 1
Common Stocks		—			—		(836,606	)		—		—		—
Futures†		—			—		—			—		—		(21,987	)
Level 2
Swap Contracts		(96,214	)		—		—			—		—		—
Total	$	25,761,324		$	31,620,222	$	(81,443	)	$	43,761,586	$	20,276,174	$	919,118


Assets	Gartman Gold/Euro ETF			Gartman Gold/Yen ETF			Global Echo ETF		International Gold ETF		Madrona Domestic ETF		Madrona Global Bond ETF
Level 1
Exchange Traded Funds	$	—		$	—		$	2,068,657	$	1,245,801	$	—	$	24,134,554
Common Stocks		—			—			5,011,682		—		24,393,245		—
Money Market Fund		878,068			3,173,799			224,323		25,673		398,900		299,026
Futures†		62,090			186,270			—		—		—		—
Level 2
Municipal Bonds		—			—			300,000		—		—		—
Asset Backed Securities		—			—			1,379,644		—		—		—
Commercial Mortgage Backed Securities		—			—			257,784		—		—		—
Investment of Cash Collateral for Securities Loaned		—			—			566,100		—		39,915		7,299,078
Liabilities
Level 1
Futures†		(3,858	)		(45,432	)		—		—		—		—
Total	$	936,300		$	3,314,637		$	9,808,190	$	1,271,474	$	24,832,060	$	31,732,658

226

TABLE OF CONTENTS

ADVISORSHARES TRUST
Notes to Financial Statements (Continued)

June 30, 2014

6. Summary of Fair Value Disclosure - (continued)


Assets	Madrona International ETF		Meidell Tactical Advantage ETF		Newfleet Multi-Sector Income ETF		Peritus High Yield ETF		Pring Turner Business Cycle ETF		QAM Equity Hedge ETF
Level 1
Exchange Traded Funds	$	—	$	15,293,305	$	—	$	—	$	1,554,110	$	8,092,692
Exchange Traded Notes		—		—		—		—		—		54,214
Common Stocks		18,938,975		—		—		90,094,516		2,905,957		—
Preferred Stocks		130,728		—		—		—		—		—
Money Market Fund		177,147		483,352		—		20,161,488		579,080		471,792
Level 2
Corporate Bonds		—		—		31,518,979		592,471,783		—		—
Foreign Bonds		—		—		8,051,070		196,754,350		—		—
U.S. Treasury Notes		—		—		6,507,107		—		—		—
U.S. Government Agency Securities		—		—		2,550,089		—		—		—
Asset Backed Securities		—		—		35,092,327		—		—		—
Mortgage Backed Securities		—		—		49,122,281		—		—		—
Term Loans		—		—		21,045,792		162,160,970		—		—
Investment of Cash Collateral for Securities Loaned		3,210,703		1,566,357		845,961		166,306,561		429,413		—
Liabilities
Level 1
Exchange Traded Funds		—		—		—		—		—		(994,360	)
Total	$	22,457,553	$	17,343,014	$	154,733,606	$	1,227,949,668	$	5,468,560	$	7,624,338


Assets	Ranger Equity Bear ETF			Sage Core Reserves ETF		STAR Global Buy-Write ETF			TrimTabs Float Shrink ETF		WCM/BNY Mellon Focused Growth ADR ETF		YieldPro ETF
Level 1
Exchange Traded Funds	$	29,943,000		$	—	$	18,001,642		$	—	$	—	$	58,232,947
Common Stocks		—			—		2,667,576			136,587,271		12,466,707		12,542,970
Purchased Options		—			—		8,707			—		—		224,930
Money Market Fund		59,020,341			1,840,417		1,832,863			394,778		216,038		1,302,056
Futures†		—			649		—			—		—		—
Level 2
Corporate Bonds		—			15,915,040		—			—		—		—
Foreign Bonds		—			4,264,234		—			—		—		—
Municipal Bonds		—			606,325		—			—		—		—
U.S. Treasury Notes		—			875,359		—			—		—		—
U.S. Treasury Bills		—			199,958		1,999,858			—		—		—
Asset Backed Securities		—			6,199,107		—			—		—		—
Commercial Mortgage Backed Securities		—			7,842,639		—			—		—		—
Investment of Cash Collateral for Securities Loaned		—			—		—			2,764,305		2,148,039		—
Liabilities
Level 1
Exchange Traded Funds		(160,234,508	)		—		—			—		—		—
Written Options		—			—		(47,484	)		—		—		—
Total	$	(71,271,167	)	$	37,743,728	$	24,463,162		$	139,746,354	$	14,830,784	$	72,302,903

†

Derivative instruments, including swap contracts and futures, 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 year ended June 30, 2014.

The Funds did not hold any level 3 securities as of June 30, 2014.

227

TABLE OF CONTENTS

ADVISORSHARES TRUST
Notes to Financial Statements (Continued)

June 30, 2014

7. Valuation of Derivative Instruments

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

At June 30, 2014, the fair values of derivative instruments were as follows:

Statement of Assets and Liabilities:


Fund:	Asset Derivatives:		Interest Rate Risk		Equity Risk		Commodity Risk
Accuvest Global Long Short ETF		Unrealized Appreciation on Swaps Contracts	$	—	$	127,243	$	—
Gartman Gold/British Pound ETF		Unrealized Appreciation on Futures Contracts		—		—		62,090
Gartman Gold/Euro ETF		Unrealized Appreciation on Futures Contracts		—		—		62,090
Gartman Gold/Yen ETF		Unrealized Appreciation on Futures Contracts		—		—		186,270
Sage Core Reserves ETF		Unrealized Appreciation on Futures Contracts		649		—		—
STAR Global Buy-Write ETF		Investments – Options Purchased		—		8,707		—
YieldPro ETF		Investments – Options Purchased		48,400		176,530		—
			$	49,049	$	312,480	$	310,450


Fund:	Liability Derivatives:		Interest Rate Risk			Equity Risk			Foreign Exchange Risk
Accuvest Global Long Short ETF		Unrealized Depreciation on Swaps Contracts	$	—		$	(96,214	)	$	—
Gartman Gold/British Pound ETF		Unrealized Depreciation Futures Contracts		—			—			(21,987	)
Gartman Gold/Euro ETF		Unrealized Depreciation Futures Contracts		—			—			(3,858	)
Gartman Gold/Yen ETF		Unrealized Depreciation Futures Contracts		—			—			(45,432	)
STAR Global Buy-Write ETF		Options Written, at Value		(1,798	)		(45,686	)		—
			$	(1,798	)	$	(141,900	)	$	(71,277	)

228

TABLE OF CONTENTS

ADVISORSHARES TRUST
Notes to Financial Statements (Continued)

June 30, 2014

7. Valuation of Derivative Instruments - (continued)

Transactions in derivative instruments during the year ended June 30, 2014, were as follows:

Statement of Operations:


Fund:	Realized Gain (Loss):		Equity Risk			Foreign Exchange Risk			Commodity Risk			Interest Rate Risk
Accuvest Global Long Short ETF		Swaps	$	(2,622,244	)	$	—		$	—		$	—
Gartman Gold/British Pound ETF		Futures		—			(29,980	)		(31,135	)		—
Gartman Gold/Euro ETF		Futures		—			(1,778	)		(31,135	)		—
Gartman Gold/Yen ETF		Futures		—			(7,132	)		(154,360	)		—
QAM Equity Hedge ETF		Swaps		11,612			—			—			—
QAM Equity Hedge ETF		Options Written		2,867			—			—			—
Sage Core Reserves ETF		Futures		—			—			—			1,108
STAR Global Buy-Write ETF		Investments – Options Purchased		(403,583	)		—			—			—
STAR Global Buy-Write ETF		Options Written		585,087			—			—			—
YieldPro ETF		Investments – Options Purchased		(984,743	)		—			—			—
			$	(3,411,004	)	$	(38,890	)	$	(216,630	)	$	1,108


Fund:	Change in Unrealized Gain (Loss):		Equity Risk			Foreign Exchange Risk			Commodity Risk		Interest Rate Risk
Accuvest Global Long Short ETF		Swaps	$	(712,386	)	$	—		$	—	$	—
Gartman Gold/British Pound ETF		Futures		—			(21,987	)		62,090		—
Gartman Gold/Euro ETF		Futures		—			(3,858	)		62,090		—
Gartman Gold/Yen ETF		Futures		—			(45,432	)		186,270		—
QAM Equity Hedge ETF		Swaps		5,101			—			—		—
Sage Core Reserves ETF		Futures		—			—			—		649
STAR Global Buy-Write ETF		Investments – Options Purchased		174,240			—			—		—
STAR Global Buy-Write ETF		Options Written		84,235			—			—		—
YieldPro ETF		Investments – Options Purchased		(318,184	)		—			—		—
			$	(766,994	)	$	(71,277	)	$	310,450	$	649

During the year ended June 30, 2014, the volume of the derivatives held by the Funds was as follows:


	Accuvest Global Long Short ETF		Gartman Gold/British Pound ETF		Gartman Gold/Euro ETF		Gartman Gold/Yen ETF		QAM Equity Hedge ETF		Sage Core Reserves ETF		STAR Global Buy-Write ETF		YieldPro ETF
Long Equity Swaps Contracts		3,353,543		—		—		—		8,997		—		—		—
Short Equity Swaps Contracts		2,834,122		—		—		—		12,837		—		—		—
Purchased Equity Options Contracts		—		—		—		—		90		—		15,746		19,921
Written Equity Options Contracts		—		—		—		—		90		—		14,759		12,651
Short Futures Contracts		—		15		15		35		—		—		—		—
Long Futures Contracts		—		1		—		13		—		18		—		—

8. 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

229

TABLE OF CONTENTS

ADVISORSHARES TRUST
Notes to Financial Statements (Continued)

June 30, 2014

8. Federal Income Tax - (continued)

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 (2012 – 2014), as defined by IRS statute of limitations, for all major jurisdictions, including federal tax authorities and certain state tax authorities. As of June 30, 2014, 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 June 30, 2014, 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	$	25,954,682	$	634,443	$	(858,830	)	$	(224,387	)	$	31,029
Accuvest Global Opportunities ETF		31,694,694		312,536		(387,008	)		(74,472	)		—
Athena International Bear ETF		756,503		9,297		(63,246	)		(1,340	)		(52,602	)
Cambria Global Tactical ETF		41,486,602		2,353,098		(78,114	)		2,274,984			—
EquityPro ETF		19,126,009		1,255,187		(105,022	)		1,150,165			—
Gartman Gold/British Pound ETF		879,015		—		—			—			—
Gartman Gold/Euro ETF		878,068		—		—			—			—
Gartman Gold/Yen ETF		3,173,799		—		—			—			—
Global Echo ETF		8,981,608		965,843		(139,261	)		826,582			—
International Gold ETF		1,259,132		17,199		(4,857	)		12,342			—
Madrona Domestic ETF		19,356,828		5,680,692		(205,460	)		5,475,232			—
Madrona Global Bond ETF		30,854,488		998,510		(120,340	)		878,170			—
Madrona International ETF		21,129,945		1,812,089		(484,481	)		1,327,608			—
Meidell Tactical Advantage ETF		16,861,043		481,971		—			481,971			—
Newfleet Multi-Sector Income ETF		154,332,871		1,251,951		(851,216	)		400,735			3
Peritus High Yield ETF		1,199,895,672		37,289,699		(9,235,703	)		28,053,996			—
Pring Turner Business Cycle ETF		4,922,178		563,182		(16,800	)		546,382			—
QAM Equity Hedge ETF		8,162,959		517,162		(86,759	)		455,740			(25,337	)
Ranger Equity Bear ETF		89,017,491		2,626,908		(16,221,775	)		(54,150	)		(13,540,717	)
Sage Core Reserves ETF		37,822,351		13,527		(92,799	)		(79,272	)		—
STAR Global Buy-Write ETF		22,526,928		2,038,721		(45,244	)		1,983,718			9,759
TrimTabs Float Shrink ETF		133,836,544		7,236,536		(1,326,726	)		5,909,810			—
WCM/BNY Mellon Focused Growth ADR ETF		12,618,069		2,640,511		(427,796	)		2,212,715			—
YieldPro ETF		71,052,230		1,632,003		(381,330	)		1,250,673			—

230

TABLE OF CONTENTS

ADVISORSHARES TRUST
Notes to Financial Statements (Continued)

June 30, 2014

8. Federal Income Tax - (continued)

At June 30, 2014, the components of distributable earnings/loss on a tax basis were as follows:


Fund	Undistributed Income		Accumulated Capital Gains/(Losses)			Timing Difference			Net Unrealized Appreciation (Depreciation)			Total Earnings (Losses)
Accuvest Global Long Short ETF	$	—	$	(9,241,224	)	$	(3,272,830	)	$	(193,358	)	$	(12,707,412	)
Accuvest Global Opportunities ETF		43,980		(2,683,788	)		(570,817	)		(74,472	)		(3,285,097	)
Athena International Bear ETF		—		(54,496	)		(188,547	)		(53,949	)		(296,992	)
Cambria Global Tactical ETF		354,155		(19,272,202	)		—			2,274,984			(16,643,063	)
EquityPro ETF		295,925		204,411			—			1,150,165			1,650,501
Gartman Gold/British Pound ETF		27,900		—			(20,832	)		—			7,068
Gartman Gold/Euro ETF		27,862		—			25,499			—			53,361
Gartman Gold/Yen ETF		24,353		—			101,796			—			126,149
Global Echo ETF		30,808		(13,478	)		(9,999	)		826,582			833,913
International Gold ETF		—		—			(4,507	)		12,342			7,835
Madrona Domestic ETF		33,249		(991,114	)		(17,095	)		5,475,232			4,500,272
Madrona Global Bond ETF		13,352		(106,975	)		(109,488	)		878,170			675,059
Madrona International ETF		212,640		(1,680,182	)		(20,044	)		1,327,608			(159,978	)
Meidell Tactical Advantage ETF		67,182		(560,050	)		(291,627	)		481,971			(302,524	)
Newfleet Multi-Sector Income ETF		77,533		(251,685	)		(149,187	)		400,738			77,399
Peritus High Yield ETF		1,623,319		—			(110,358	)		28,053,996			29,566,957
Pring Turner Business Cycle ETF		18,295		(23,177	)		(79,537	)		546,382			461,963
QAM Equity Hedge ETF		28,703		18,811			—			430,403			477,917
Ranger Equity Bear ETF		—		(124,434,165	)		(24,505,330	)		(13,594,867	)		(162,534,362	)
Sage Core Reserves ETF		8,116		—			(5,647	)		(79,272	)		(76,803	)
STAR Global Buy-Write ETF		—		(174,384	)		(272,481	)		1,993,477			1,546,612
TrimTabs Float Shrink ETF		552,118		(509,037	)		(3,498,430	)		5,909,810			2,454,461
WCM/BNY Mellon Focused Growth ADR ETF		—		(449,980	)		—			2,212,715			1,762,735
YieldPro ETF		142,685		—			(769,517	)		1,250,673			623,841

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

231

TABLE OF CONTENTS

ADVISORSHARES TRUST
Notes to Financial Statements (Continued)

June 30, 2014

8. Federal Income Tax - (continued)

At June 30, 2014, the effect of permanent book/tax reclassifications resulted in increases/(decreases) to the components of net assets as follows:


Fund	Undistributed Net Investment Income			Accumulated Net Realized Gains/(Losses)			Paid-in Capital
Accuvest Global Long Short ETF	$	249,987		$	(4,358,476	)	$	4,108,489
Accuvest Global Opportunities ETF		(5,048	)		(2,221,547	)		2,226,595
Athena International Bear ETF		52,329			(6,436	)		(45,893	)
Cambria Global Tactical ETF		(17,966	)		(1,481,264	)		1,499,230
EquityPro ETF		2,326			(39,668	)		37,342
Gartman Gold/British Pound ETF		—			31,135			(31,135	)
Gartman Gold/Euro ETF		—			31,135			(31,135	)
Gartman Gold/Yen ETF		—			154,360			(154,360	)
Global Echo ETF		3,896			(3,896	)		—
International Gold ETF		124			(124	)		—
Madrona Domestic ETF		(2,237	)		(2,310,841	)		2,313,078
Madrona Global Bond ETF		(1,367	)		(10,958	)		12,325
Madrona International ETF		51,111			(1,262,790	)		1,211,679
Meidell Tactical Advantage ETF		(338	)		(591,608	)		591,946
Newfleet Multi-Sector Income ETF		323,618			(323,618	)		—
Peritus High Yield ETF		(314,621	)		314,621			—
Pring Turner Business Cycle ETF		(27	)		(217,122	)		217,149
QAM Equity Hedge ETF		65,642			(216,481	)		150,839
Ranger Equity Bear ETF		5,766,744			(101,882	)		(5,664,862	)
Sage Core Reserves ETF		8,328			(8,328	)		—
STAR Global Buy-Write ETF		151,597			(45,947	)		(105,650	)
TrimTabs Float Shrink ETF		—			(14,942,131	)		14,942,131
WCM/BNY Mellon Focused Growth ADR ETF		3,616			(355,138	)		351,522
YieldPro ETF		—			(192	)		192

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

232

TABLE OF CONTENTS

ADVISORSHARES TRUST
Notes to Financial Statements (Continued)

June 30, 2014

8. Federal Income Tax - (continued)

The tax character of distributions paid during the years ended June 30, 2014 and 2013 were:


Fund	2014 Ordinary Income		2014 Long Term Capital Gains		2013 Ordinary Income		2013 Long Term Capital Gains
Accuvest Global Opportunities ETF	$	154,897	$	—	$	185,454	$	—
Cambria Global Tactical ETF		—		—		1,451,034		—
EquityPro ETF		154,669		—		7,701		—
Global Echo ETF		2,380		—		23,426		—
Madrona Domestic ETF		59,938		—		73,945		—
Madrona Global Bond ETF		761,153		—		624,852		3,109
Madrona International ETF		318,396		—		185,288		—
Meidell Tactical Advantage ETF		—		—		64,270		—
Newfleet Multi-Sector Income ETF		2,905,125		—		400,645		—
Peritus High Yield ETF		45,680,132		—		14,688,975		—
Pring Turner Business Cycle ETF		59,326		—		—		—
QAM Equity Hedge ETF		92,485		26,668		26,646		—
Sage Core Reserves ETF		119,991		—		—		—
STAR Global Buy-Write ETF		—		—		109,016		—
TrimTabs Float Shrink ETF		300,553		—		109,337		—
WCM/BNY Mellon Focused Growth ADR ETF		54,540		—		37,975		—
YieldPro ETF		532,662		—		—		—

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, 2014 are as follows:


Fund	Late Year Ordinary Deferral		Short-Term Post-October Loss		Long-Term Post-October Loss
Accuvest Global Long Short ETF	$	—	$	3,272,830	$	—
Accuvest Global Opportunities ETF		—		570,817		—
Athena International Bear ETF		20,684		167,863		—
Gartman Gold/British Pound ETF		—		20,787		31,180
Gartman Gold/Euro ETF		—		2,254		3,382
Gartman Gold/Yen ETF		—		21,026		31,538
Global Echo ETF		—		9,999		—
International Gold ETF		4,507		—		—
Madrona Domestic ETF		—		—		17,095
Madrona Global Bond ETF		—		61,379		48,109
Madrona International ETF		—		20,044		—
Meidell Tactical Advantage ETF		—		291,627		—
Newfleet Multi-Sector Income ETF		—		113,887		35,300
Peritus High Yield ETF		—		110,358		—
Pring Turner Business Cycle ETF		—		63,474		16,063
Ranger Equity Bear ETF		2,033,900		22,471,430		—
Sage Core Reserves ETF		—		5,647		—
STAR Global Buy-Write ETF		60,353		—		208,171
TrimTabs Float Shrink ETF		—		3,498,430		—
YieldPro ETF		—		769,517		—

233

TABLE OF CONTENTS

ADVISORSHARES TRUST
Notes to Financial Statements (Continued)

June 30, 2014

8. Federal Income Tax - (continued)

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	$	8,809,566	$	431,658	$	9,241,224
Accuvest Global Opportunities ETF		2,683,788		—		2,683,788
Athena International Bear ETF		54,496		—		54,496
Cambria Global Tactical ETF		19,272,202		—		19,272,202
Global Echo ETF		13,478		—		13,478
Madrona Domestic ETF		801,839		189,275		991,114
Madrona Global Bond ETF		66,750		40,225		106,975
Madrona International ETF		1,647,319		32,863		1,680,182
Meidell Tactical Advantage ETF		556,690		3,360		560,050
Newfleet Multi-Sector Income ETF		251,685		—		251,685
Pring Turner Business Cycle ETF		23,177		—		23,177
Ranger Equity Bear ETF		124,434,165		—		124,434,165
STAR Global Buy-Write ETF		17,583		156,801		174,384
TrimTabs Float Shrink ETF		509,037		—		509,037
WCM/BNY Mellon Focused Growth ADR ETF		—		449,980		449,980

The following Funds utilized capital loss carryforwards to offset taxable capital gains realized during the year ended June 30, 2014:


Fund	Amount
Cambria Global Tactical ETF	$	207,553
Global Echo ETF		41,338
Madrona Domestic ETF		247,464
Madrona International ETF		771,219

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.

234

TABLE OF CONTENTS

ADVISORSHARES TRUST
Notes to Financial Statements (Continued)

June 30, 2014

9. 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 year ended June 30, 2014 are as follows:


Affiliated Fund Name	Value at 06/30/2013		Purchases/ Additions		Sales/ Reductions			Value at 06/30/2014		Dividend Income		Realized Gain (Loss)
Athena International Bear ETF
Sage Core Reserves ETF	$	—	$	705,000	$	—		$	703,660	$	2,291	$	—
Global Echo ETF
Ranger Equity Bear ETF		25,840		277,862		(280,814	)		11,780		—		(10,325	)
Sage Core Reserves ETF		—		2,380,352		(1,278,907	)		1,098,409		3,472		(1,329	)
International Gold ETF
Gartman Gold/British Pound ETF		—		332,149		—			327,291		—		—
Gartman Gold/Euro ETF		—		335,803		—			339,300		—		—
Gartman Gold/Yen ETF		—		333,769		—			341,135		—		—
Madrona Global Bond ETF
Peritus High Yield ETF		2,049,143		964,110		(58,152	)		3,112,080		198,728		2,151
Meidell Tactical Advantage ETF
Sage Core Reserves ETF		—		547,519		(546,852	)		—		108		(667	)
Pring Turner Business Cycle ETF
Peritus High Yield ETF		282,085		64,296		(129,875	)		234,467		20,234		4,293
QAM Equity Hedge ETF
Sage Core Reserves ETF		—		489,937		(69,902	)		419,202		1,365		(35	)
Ranger Equity Bear ETF
Sage Core Reserves ETF		—		29,997,150		—			29,943,000		97,503		—
STAR Global Buy-Write ETF
Sage Core Reserves ETF		—		262,523		—			262,001		851		—
YieldPro ETF
Peritus High Yield ETF		—		10,021,663		(87,067	)		10,049,182		207,299		169

235

TABLE OF CONTENTS

ADVISORSHARES TRUST
Notes to Financial Statements (Continued)

June 30, 2014

10. Investment Transactions

Purchases and sales of investments for the year ended June 30, 2014 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	$	113,142,394	$	—	$	65,737,940	$	104,781,694	$	—	$	83,617,039
Accuvest Global Opportunities ETF		40,432,444		—		55,269,116		39,758,271		—		49,386,199
Athena International Bear ETF		8,208,983		—		—		8,077,612		—		—
Cambria Global Tactical ETF		106,690,535		—		1,287,923		95,794,525		—		18,135,499
EquityPro ETF		2,218,561		—		19,565,224		2,069,307		—		2,876,416
Global Echo ETF		11,774,384		—		2,279,588		10,701,206		—		—
International Gold ETF		1,256,416		—		—		23,081		—		—
Madrona Domestic ETF		11,187,689		—		928,252		2,963,925		—		8,298,588
Madrona Global Bond ETF		4,496,375		—		1,275,053		4,544,543		—		622,921
Madrona International ETF		38,153,310		—		662,922		32,107,343		—		5,998,317
Meidell Tactical Advantage ETF		88,522,810		—		21,295,314		85,093,247		—		16,355,740
Newfleet Multi-Sector Income ETF		118,212,006		40,939,247		—		46,855,099		41,642,103		—
Peritus High Yield ETF		1,263,486,697		—		—		503,763,467		—		—
Pring Turner Business Cycle ETF		2,335,351		—		965,499		1,512,871		—		2,038,894
QAM Equity Hedge ETF		13,273,392		—		3,820,271		12,155,882		—		1,387,345
Ranger Equity Bear ETF		1,003,069,822		—		—		866,921,503		—		—
Sage Core Reserves ETF		24,060,963		—		—		1,956,282		—		—
STAR Global Buy-Write ETF		30,279,325		—		3,393,382		28,230,611		—		1,501,885
TrimTabs Float Shrink ETF		6,202,675		—		397,748,706		72,841,674		—		236,627,428
WCM/BNY Mellon Focused Growth ADR ETF		2,456,628		—		5,264,773		5,027,621		—		1,643,257
YieldPro ETF		6,274,034		—		68,447,593		5,027,621		—		591,686

Options Written transactions, during the year ended June 30, 2014, were as follows:


STAR Global Buy-Write ETF	Contracts			Premiums Paid/Received
Options outstanding at June 30, 2013		2,592		$	241,514
Options written		12,925			1,012,556
Options terminated in closing purchase transactions		(6,032	)		(479,967	)
Options expired		(8,264	)		(686,552	)
Options exercised		(191	)		(30,308	)
Options outstanding at June 30, 2014		1,030			57,243

236

TABLE OF CONTENTS

ADVISORSHARES TRUST
Notes to Financial Statements (Continued)

June 30, 2014

11. 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 is 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.

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.

12. New Accounting Pronouncements

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.

237

TABLE OF CONTENTS

ADVISORSHARES TRUST
Notes to Financial Statements (Continued)

June 30, 2014

12. New Accounting Pronouncements - (continued)

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.

13. 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.

Since June 30, 2014, the following events occurred:

Effective July 24, 2014, First Affirmative Financial Network, LLC, an investment sub-advisor to AdvisorShares Global Echo ETF, has resigned. The assets of First Affirmative Financial Network, LLC will be allocated to the remaining three sub-advisors to the Fund.

Effective July 28, 2014, AdvisorShares Cambria Global Tactical ETF changed its name to AdvisorShares Morgan Creek Global Tactical ETF. At this time, Morgan Creek Capital Management assumed sub-advisory responsibilities.

The following Funds paid dividends after June 30, 2014:

Fund

Ticker

Per Share Distributed

Payable Date

Madrona Global Bond ETF

FWDB

0.06862

07/31/2014

Madrona Global Bond ETF

FWDB

0.06534

08/29/2014

Newfleet Multi-Sector Income ETF

MINC

0.11440

07/31/2014

Newfleet Multi-Sector Income ETF

MINC

0.11492

08/29/2014

Peritus High Yield ETF

HYLD

0.36558

07/31/2014

Peritus High Yield ETF

HYLD

0.34760

08/29/2014

Sage Core Reserves ETF

HOLD

0.08870

07/31/2014

Sage Core Reserves ETF

HOLD

0.07330

08/29/2014

YieldPro ETF

YPRO

0.09880

07/31/2014

YieldPro ETF

YPRO

0.07910

08/29/2014

14. Unaudited Tax Information

Qualified Dividend Income — Certain dividends paid by the Funds may be subject to a minimum tax rate of 15%, as provided by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The percentage of ordinary income distributions for the period ended June 30, 2014, taxed at a maximum rate of 15% were:


Fund	Percentage
Accuvest Global Opportunities ETF		100.00	%
EquityPro ETF		100.00	%
Madrona Domestic ETF		100.00	%
Madrona Global Bond ETF		14.06	%
Madrona International ETF		100.00	%
Peritus High Yield ETF		1.71	%
Pring Turner Business Cycle ETF		51.58	%

238

TABLE OF CONTENTS

ADVISORSHARES TRUST
Notes to Financial Statements (Continued)

June 30, 2014

14. Unaudited Tax Information - (continued)


Fund	Percentage
QAM Equity Hedge ETF		35.77	%
TrimTabs Float Shrink ETF		100.00	%
WCM/BNY Mellon Focused Growth ADR ETF		100.00	%
YieldPro ETF		31.42	%

Dividends Received Deduction — For corporate shareholders, the percentage of ordinary income distributions for the period ended June 30, 2014 that qualifies for the dividends received deduction were:


Fund	Percentage
Accuvest Global Opportunities ETF		35.58	%
EquityPro ETF		100.00	%
Madrona Domestic ETF		100.00	%
Madrona Global Bond ETF		8.39	%
Madrona International ETF		100.00	%
Pring Turner Business Cycle ETF		42.50	%
QAM Equity Hedge ETF		25.44	%
TrimTabs Float Shrink ETF		100.00	%
WCM/BNY Mellon Focused Growth ADR ETF		17.59	%
YieldPro ETF		33.40	%

Qualified Interest Income — For NRA shareholders, the percentage of ordinary income distributions for the period ended June 30, 2014 that qualifies as qualified interest income were:


Fund	Percentage
Madrona Global Bond ETF		47.25	%
Newfleet Multi-Sector Income ETF		100.00	%
Peritus High Yield ETF		85.07	%
Sage Core Reserves ETF		100.00	%
YieldPro ETF		50.10	%

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


Fund	Taxes paid		Foreign Source Income
Accuvest Global Opportunities ETF	$	50,327	$	341,842
Cambria Global Tactical ETF		35,967		330,193
Madrona International ETF		40,355		442,458
Meidell Tactical Advantage ETF		3,375		36,380

239

TABLE OF CONTENTS

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Trustees and Shareholders
AdvisorShares Trust

We have audited the accompanying statements of assets and liabilities of Accuvest Global Long Short ETF, Accuvest Global Opportunities ETF, Cambria Global Tactical ETF, EquityPro ETF (formerly Global Alpha & Beta ETF), Global Echo ETF, Madrona Domestic ETF, Madrona Global Bond ETF, Madrona International ETF, Meidell Tactical Advantage ETF, Newfleet Multi-Sector Income ETF, Peritus High Yield ETF, 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, Athena International Bear ETF, Sage Core Reserves ETF, International Gold ETF, and YieldPro ETF, each a series of AdvisorShares Trust (the “Trust”), including the schedules of investments as of June 30, 2014, and the related statements of operations, the statements of changes in net assets and the financial highlights for the periods indicated thereon. We have audited the accompanying consolidated statements of assets and liabilities of Gartman Gold/Euro ETF, Gartman Gold/Yen ETF, Gartman Gold/British Pound ETF, each a series of AdvisorShares Trust (the “Trust”), including the consolidated schedules of investments as of June 30, 2014, and the related consolidated statements of operations, the consolidated statements of changes in net assets and the consolidated financial highlights for the periods indicated thereon These financial statements and financial highlights are the responsibility of the Trust’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust’s internal controls over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of June 30, 2014, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Accuvest Global Long Short ETF, Accuvest Global Opportunities ETF, Cambria Global Tactical ETF, EquityPro ETF (formerly Global Alpha & Beta ETF), Global Echo ETF, Madrona Domestic ETF, Madrona Global Bond ETF, Madrona International ETF, Meidell Tactical Advantage ETF, Newfleet Multi-Sector Income ETF, Peritus High Yield ETF, 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, Athena International Bear ETF, Sage Core Reserves ETF, International Gold ETF and YieldPro ETF as of June 30, 2014, and the results of their operations, the changes in their net assets and their financial highlights for the periods indicated thereon, in conformity with accounting principles generally accepted in the United States of America.

In our opinion, the consolidated financial statements and consolidated financial highlights referred to above present fairly, in all material respects, the consolidated financial position of Gartman Gold/Euro ETF, Gartman Gold/Yen ETF and Gartman Gold/British Pound ETF as of June 30, 2014, and the results of their consolidated operations, the consolidated changes in their net assets and their consolidated financial highlights for the periods indicated thereon, in conformity with accounting principles generally accepted in the United States of America.

TAIT, WELLER & BAKER LLP

Philadelphia, Pennsylvania
August 27, 2014

240

TABLE OF CONTENTS

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 Year of Birth	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 During Past 5 Years
Interested Trustee
Noah Hamman* 2 Bethesda Metro Center, Suite 1330 Bethesda, MD 20814 (1968)	Trustee (no set term); served since 2009	President of AdvisorShares Trust (2009 – present); Chief Executive Officer, President, and Founder of AdvisorShares Investments, LLC (2006 – present); President and Chief Executive Officer of Arrow Investment Advisors, LLC (2006 – 2008); Vice-President – Business Development of Rydex Investments (2001 – 2006).	28	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).	28	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).	28	None
Officers of AdvisorShares Trust
Noah Hamman 2 Bethesda Metro Center, Suite 1330 Bethesda, MD 20814 (1968)	President (no set term); served since 2009	President of AdvisorShares Trust (2009 – present); Chief Executive Officer, President, and Founder of AdvisorShares Investments, LLC (2006 – present); President and Chief Executive Officer of Arrow Investment Advisors, LLC (2006 – 2008); Vice-President – Business Development of Rydex Investments (2001 – 2006).	28	Not applicable

241

TABLE OF CONTENTS

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


Name, Address, and Year of Birth	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 During Past 5 Years
Dan Ahrens 4144 N. Central Expressway, Suite 600 Dallas, TX 75204 (1966)	Secretary & Treasurer (no set terms); served since 2009	Managing Director of AdvisorShares Investments, LLC (2013 – present); Chief Compliance Officer of the Trust (2009 – 2013); Executive Vice President of AdvisorShares Investments, LLC (2008 – 2013); President of Ahrens Advisors, LP (2005 – 2008); President of Mutuals Advisors, Inc. & Mutuals.com Funds (2003 – 2005).	28	Not applicable
Stefanie Little 11 Gina Marie Lane Elkton, MD 21921 (1967)	Chief Compliance Officer (no set term); served since 2013	Chief Compliance Officer of AdvisorShares Investments, LLC and the Trust (2013 – present); Managing Member of SEC Compliance Alliance, LLC (2012 – present), President of Little Consulting Group, Inc. (2011 – present); Director of Cipperman Compliance Services (2008 – 2011).	28	Not applicable

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.

242

TABLE OF CONTENTS

Board Review of Investment Advisory and Sub-Advisory Agreements

Renewal of the Advisory Agreement and the AdvisorShares Peritus High Yield ETF, AdvisorShares Meidell Tactical Advantage ETF, AdvisorShares TrimTabs Float Shrink ETF, AdvisorShares Pring Turner Business Cycle ETF, AdvisorShares Newfleet Multi-Sector Income ETF, AdvisorShares Accuvest Global Long Short ETF, and AdvisorShares Accuvest Global Opportunities ETF Sub-Advisory Agreements

At meetings of the Board of Trustees (the “Board”) of AdvisorShares Trust (the “Trust”) held on February 12, 2014 and May 12, 2014 (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 (a) separate sub-advisory agreements (collectively, the “Sub-Advisory Agreements”) between AdvisorShares Investments, LLC (the “Advisor”) and (1) Peritus I Asset Management, LLC, on behalf of the AdvisorShares Peritus High Yield ETF, (2) American Wealth Management, on behalf of the AdvisorShares Meidell Tactical Advantage ETF, (3) TrimTabs Asset Management, LLC, on behalf of the AdvisorShares TrimTabs Float Shrink ETF, (4) Pring Turner Capital Group, on behalf of the AdvisorShares Pring Turner Business Cycle ETF, (5) Newfleet Asset Management, on behalf of the AdvisorShares Newfleet Multi-Sector Income ETF, and (6) Accuvest Global Advisors, on behalf of the AdvisorShares Accuvest Global Long Short ETF and AdvisorShares Accuvest Global Opportunities ETF (collectively, the “Sub-Advisors”), pursuant to which the Sub-Advisors perform portfolio management and related services for the Funds, and (b) the investment advisory agreement (together with the Sub-Advisory Agreements, the “Advisory Agreements”) between the Advisor and the Trust, on behalf of each series of the Trust (each, a “Fund” and collectively, the “Funds”).

Pursuant to Section 15(c) of the 1940 Act, the Board must annually review and approve the existing Advisory Agreements after their initial two-year term: (i) by the vote of the Board or by a vote of the shareholders of the Funds and (ii) by the vote of a majority of the Independent Trustees, cast in person at a meeting called for the purpose of voting on such approval. Each year, the Board calls and holds meetings to decide whether to renew the 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 Advisory Agreements for an additional year.

Prior to the Meetings, the Board, including the Independent Trustees, reviewed written materials from the Advisor and each Sub-Advisor regarding, among other things: (i) the nature, extent and quality of the services to be provided by the Advisor and each Sub-Advisor; (ii) the investment performance of each Fund; (iii) the costs of the services to be provided and profits to be realized by the Advisor and its affiliates from the relationship with the Funds; (iv) the costs of the services to be provided and profits and other benefits to be realized by the Sub-Advisor and its affiliates from the relationship with each Fund; (v) the respective personnel and operations of the Sub-Advisor; (vi) the extent to which economies of scale would be realized as each Fund grows; and (vii) 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 the Advisor and each Sub-Advisor, along with other service providers to the Funds, presented additional oral and written information to help the Board evaluate the Advisor’s and each Sub-Advisor’s advisory fees and other aspects of the Advisory Agreements. The Advisor provided an overview of the Advisor’s operations and management of the Funds, including comparative fee data and profitability analysis for each Fund, and also discussed compliance oversight. Representatives from each Sub-Advisor then discussed their management of each Fund in more detail, including the Fund’s strategy, the focus in the markets, the Fund’s positioning in the market, and its attractive and unique offering. The representatives also discussed their company’s overall business generally, including any noteworthy personnel changes. The Board then discussed

243

TABLE OF CONTENTS

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

the written materials that it received before the Meetings, the Advisor’s and Sub-Advisors’ oral presentations, and any other information that the Board received at the Meetings, as well as information it had received at prior board meetings, and then deliberated on the renewal of the Advisory Agreements in light of this information. In its deliberations, the Board considered the factors and reached the conclusions described below relating to the selection of the Advisor and Sub-Advisors and the renewal of the Advisory Agreements. The Board did not identify any single piece of information discussed below that was all-important, controlling or determinative of its decision.

Nature, Extent and Quality of Services

In considering the nature, extent and quality of the services provided by the Advisor and each Sub-Advisor, the Board reviewed the portfolio management services provided to the Funds. The Board also noted the extensive responsibilities that the Advisor has as investment adviser to the Funds, including the selection of the Funds’ sub-advisers and oversight of the sub-advisers’ compliance with Fund policies and objectives, oversight of general Fund compliance with federal laws, and the implementation of Board directives as they relate to the Funds. The most recent Form ADV for the Advisor and each Sub-Advisor was also provided to the Board, as were the responses of the Advisor and 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 the Advisor’s overall quality of personnel, operations, and financial condition, and investment advisory capabilities and information concerning each 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 the Advisor and each Sub-Advisor.

Performance of the Funds

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

Cost of Advisory Services, Profitability and Economies of Scale

In concluding that the advisory and sub-advisory fees payable with respect to each Fund were reasonable, the Board reviewed a report of the advisory fees paid by each Fund to the Advisor, the sub-advisory fees paid by the Advisor to each Sub-Advisor, and the fees and expenses waived and/or reimbursed by the Advisor and each Sub-Advisor over the period, the costs and other expenses incurred by the Advisor and 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 the Advisory

244

TABLE OF CONTENTS

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

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

Initial Approval of the Advisory and Sub-Advisory Agreements for AdvisorShares Sage Core Reserves ETF and AdvisorShares YieldPro ETF

At meetings of the Board held on May 20, 2013 and August 6, 2013 (together, the “Meetings”), the Board considered the approval of the investment advisory agreement (the “Advisory Agreement”) between the Trust and AdvisorShares Investments, LLC (the “Advisor”), for an initial term of two years, on behalf of the AdvisorShares Sage Core Reserves ETF and AdvisorShares YieldPro 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) Sage Advisory Services, Ltd. Co., on behalf of the AdvisorShares Sage Core Reserves ETF, and (2) The Elemental Financial Group LLC (together, the “Sub-Advisors;” collectively with the Advisor, the “Advisors”), on behalf of the AdvisorShares YieldPro ETF, pursuant to which the Sub-Advisors perform portfolio management and related services for the Funds.

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 and approval of the proposed New Agreements.

At the conclusion of its review of the materials discussed above and the discussions among the Trustees leading up to and during the 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.

245

TABLE OF CONTENTS

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

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 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 Fund, 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.

246

TABLE OF CONTENTS

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

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 fee for each Sub-Advisor is 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.

247

TABLE OF CONTENTS

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.

248

TABLE OF CONTENTS

(This page intentionally left blank.)

TABLE OF CONTENTS

(This page intentionally left blank.)

TABLE OF CONTENTS

ADVISORSHARES TRUST

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

Sub-Advisors
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, California 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, California 95403

Community Capital Management, Inc.
2500 Weston Road, Suite 101
Weston, Florida 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, Massachusetts 02110

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

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

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

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

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

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

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

Treesdale Partners, LLC
1325 Avenue of the Americas, Suite 2302
New York, New York 10019

Sage Advisory Services, Ltd. Co.
5900 Southwest Parkway, Building I
Austin, Texas 78735

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

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

Legal Counsel
Bingham McCutchen LLP
2020 K Street, N.W.
Washington, D.C. 20006

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

TABLE OF CONTENTS

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.

[GRAPHIC MISSING]

Item 2. Code of Ethics.

(a)

The registrant, as of the end of the period covered by this report, has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party.

(c)

There have been no amendments, during the period covered by this report, to a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics description.

(d)

The registrant has not granted any waivers, including an implicit waiver, from a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, that relates to one or more of the items set forth in paragraph (b) of this item’s instructions.

Item 3. Audit Committee Financial Expert.

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

Item 4. Principal Accountant Fees and Services.

Audit Fees

(a)

The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years are $299,400 for 2014 and $236,300 for 2013.

Audit-Related Fees

(b)

The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph (a) of this Item are $0 for 2014 and $0 for 2013.

Tax Fees

(c)

The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning are $67,200 for 2014 and $45,900 for 2013.

All Other Fees

(d)

The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item are $0 for 2014 and $0 for 2013.

(e)

(1)

Disclose the audit committee's pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.

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

(e)

(2)

The percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X are as follows:

(b) N/A

(d) N/A

(f)

No response required.

(g)

The aggregate non-audit fees billed by the registrant's accountant for services rendered to the registrant, and rendered to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant was $0 for 2014 and $0 for 2013.

(h)

Not applicable.

Item 5. Audit Committee of Listed registrants.

(a)

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

(b)

Not applicable.

Item 6. 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)

Code of ethics, or any amendment thereto, that is the subject of disclosure required by Item 2 is attached hereto.

(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.

(12.other)

Not applicable.

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

08/27/14

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

08/27/14

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

Date

08/27/14

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

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

ADVISORSHARES TRUST

Annual Report

June 30, 2014

TABLE OF CONTENTS

ADVISORSHARES TRUSTLetter from the CEO of AdvisorShares Investments, LLCJune 30, 2014

ADVISORSHARES TRUSTLetter from the CEO of AdvisorShares Investments, LLC (Continued)June 30, 2014

ADVISORSHARES TRUSTLetter from the CEO of AdvisorShares Investments, LLC (Continued)June 30, 2014

ADVISORSHARES TRUSTAdvisorShares Accuvest Global Long Short ETF (AGLS)

HYPOTHETICAL GROWTH OF $10,000 INVESTMENTFor the period July 9, 2010* to June 30, 2014

HISTORICAL PERFORMANCETotal Return as of June 30, 2014

ADVISORSHARES TRUSTAdvisorShares Accuvest Global Opportunities ETF (ACCU)

HYPOTHETICAL GROWTH OF $10,000 INVESTMENTFor the period January 25, 2012* to June 30, 2014

HISTORICAL PERFORMANCETotal Return as of June 30, 2014

ADVISORSHARES TRUSTAdvisorShares Athena International Bear ETF (HDGI)

HYPOTHETICAL GROWTH OF $10,000 INVESTMENTFor the period July 18, 2013* to June 30, 2014

HISTORICAL PERFORMANCETotal Return as of June 30, 2014

ADVISORSHARES TRUSTAdvisorShares Cambria Global Tactical ETF (GTAA)

HYPOTHETICAL GROWTH OF $10,000 INVESTMENTFor the period October 26, 2010* to June 30, 2014

HISTORICAL PERFORMANCETotal Return as of June 30, 2014

ADVISORSHARES TRUSTAdvisorShares EquityPro ETF (EPRO)

HYPOTHETICAL GROWTH OF $10,000 INVESTMENTFor the period July 10, 2012* to June 30, 2014

HISTORICAL PERFORMANCETotal Return as of June 30, 2014

ADVISORSHARES TRUSTAdvisorShares Gartman Gold/British Pound ETF (GGBP)

HYPOTHETICAL GROWTH OF $10,000 INVESTMENTFor the period February 11, 2014* to June 30, 2014

HISTORICAL PERFORMANCETotal Return as of June 30, 2014

ADVISORSHARES TRUSTAdvisorShares Gartman Gold/Euro ETF (GEUR)

HYPOTHETICAL GROWTH OF $10,000 INVESTMENTFor the period February 11, 2014* to June 30, 2014

HISTORICAL PERFORMANCETotal Return as of June 30, 2014

ADVISORSHARES TRUSTAdvisorShares Gartman Gold/Yen ETF (GYEN)

HYPOTHETICAL GROWTH OF $10,000 INVESTMENTFor the period February 11, 2014* to June 30, 2014

HISTORICAL PERFORMANCETotal Return as of June 30, 2014

ADVISORSHARES TRUSTAdvisorShares Global Echo ETF (GIVE)

HYPOTHETICAL GROWTH OF $10,000 INVESTMENTFor the period May 23, 2012* to June 30, 2014

HISTORICAL PERFORMANCETotal Return as of June 30, 2014

ADVISORSHARES TRUSTAdvisorShares International Gold ETF (GLDE)

HYPOTHETICAL GROWTH OF $10,000 INVESTMENTFor the period February 11, 2014* to June 30, 2014

HISTORICAL PERFORMANCETotal Return as of June 30, 2014

ADVISORSHARES TRUSTAdvisorShares Madrona Domestic ETF (FWDD)

HYPOTHETICAL GROWTH OF $10,000 INVESTMENTFor the period June 21, 2011* to June 30, 2014

HISTORICAL PERFORMANCETotal Return as of June 30, 2014

ADVISORSHARES TRUSTAdvisorShares Madrona Global Bond ETF (FWDB)

HYPOTHETICAL GROWTH OF $10,000 INVESTMENTFor the period June 21, 2011* to June 30, 2014

HISTORICAL PERFORMANCETotal Return as of June 30, 2014

ADVISORSHARES TRUSTAdvisorShares Madrona International ETF (FWDI)

HYPOTHETICAL GROWTH OF $10,000 INVESTMENTFor the period June 21, 2011* to June 30, 2014

HISTORICAL PERFORMANCETotal Return as of June 30, 2014

ADVISORSHARES TRUSTAdvisorShares Meidell Tactical Advantage ETF (MATH)

HYPOTHETICAL GROWTH OF $10,000 INVESTMENTFor the period June 23, 2011* to June 30, 2014

HISTORICAL PERFORMANCETotal Return as of June 30, 2014

ADVISORSHARES TRUSTAdvisorShares Newfleet Multi-Sector Income ETF (MINC)

HYPOTHETICAL GROWTH OF $10,000 INVESTMENTFor the period March 19, 2013* to June 30, 2014

HISTORICAL PERFORMANCETotal Return as of June 30, 2014

ADVISORSHARES TRUSTAdvisorShares Peritus High Yield ETF (HYLD)

HYPOTHETICAL GROWTH OF $10,000 INVESTMENTFor the period December 1, 2010* to June 30, 2014

HISTORICAL PERFORMANCETotal Return as of June 30, 2014

ADVISORSHARES TRUSTAdvisorShares Pring Turner Business Cycle ETF (DBIZ)

HYPOTHETICAL GROWTH OF $10,000 INVESTMENTFor the period December 18, 2012* to June 30, 2014

HISTORICAL PERFORMANCETotal Return as of June 30, 2014

ADVISORSHARES TRUSTAdvisorShares QAM Equity Hedge ETF (QEH)

HYPOTHETICAL GROWTH OF $10,000 INVESTMENTFor the period August 7, 2012* to June 30, 2014

HISTORICAL PERFORMANCETotal Return as of June 30, 2014

ADVISORSHARES TRUSTAdvisorShares Ranger Equity Bear ETF (HDGE)

HYPOTHETICAL GROWTH OF $10,000 INVESTMENTFor the period January 27, 2011* to June 30, 2014

HISTORICAL PERFORMANCETotal Return as of June 30, 2014

ADVISORSHARES TRUSTAdvisorShares Sage Core Reserves ETF (HOLD)

HYPOTHETICAL GROWTH OF $10,000 INVESTMENTFor the period January 14, 2014* to June 30, 2014

HISTORICAL PERFORMANCETotal Return as of June 30, 2014

ADVISORSHARES TRUSTAdvisorShares STAR Global Buy-Write ETF (VEGA)

HYPOTHETICAL GROWTH OF $10,000 INVESTMENTFor the period September 17, 2012* to June 30, 2014

HISTORICAL PERFORMANCETotal Return as of June 30, 2014

ADVISORSHARES TRUSTAdvisorShares TrimTabs Float Shrink ETF (TTFS)

HYPOTHETICAL GROWTH OF $10,000 INVESTMENTFor the period October 5, 2011* to June 30, 2014

HISTORICAL PERFORMANCETotal Return as of June 30, 2014

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

HYPOTHETICAL GROWTH OF $10,000 INVESTMENTFor the period July 21, 2010* to June 30, 2014

HISTORICAL PERFORMANCETotal Return as of June 30, 2014

ADVISORSHARES TRUSTAdvisorShares YieldPro ETF (YPRO)

HYPOTHETICAL GROWTH OF $10,000 INVESTMENTFor the period March 4, 2014* to June 30, 2014

HISTORICAL PERFORMANCETotal Return as of June 30, 2014

ADVISORSHARES TRUST
Letter from the CEO of AdvisorShares Investments, LLC

June 30, 2014

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

June 30, 2014

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

June 30, 2014

ADVISORSHARES TRUST
AdvisorShares Accuvest Global Long Short ETF (AGLS)

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period July 9, 2010* to June 30, 2014

HISTORICAL PERFORMANCE
Total Return as of June 30, 2014

ADVISORSHARES TRUST
AdvisorShares Accuvest Global Opportunities ETF (ACCU)

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period January 25, 2012* to June 30, 2014

HISTORICAL PERFORMANCE
Total Return as of June 30, 2014

ADVISORSHARES TRUST
AdvisorShares Athena International Bear ETF (HDGI)

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period July 18, 2013* to June 30, 2014

HISTORICAL PERFORMANCE
Total Return as of June 30, 2014

ADVISORSHARES TRUST
AdvisorShares Cambria Global Tactical ETF (GTAA)

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period October 26, 2010* to June 30, 2014

HISTORICAL PERFORMANCE
Total Return as of June 30, 2014

ADVISORSHARES TRUST
AdvisorShares EquityPro ETF (EPRO)

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period July 10, 2012* to June 30, 2014

HISTORICAL PERFORMANCE
Total Return as of June 30, 2014

ADVISORSHARES TRUST
AdvisorShares Gartman Gold/British Pound ETF (GGBP)

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period February 11, 2014* to June 30, 2014

HISTORICAL PERFORMANCE
Total Return as of June 30, 2014

ADVISORSHARES TRUST
AdvisorShares Gartman Gold/Euro ETF (GEUR)

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period February 11, 2014* to June 30, 2014

HISTORICAL PERFORMANCE
Total Return as of June 30, 2014

ADVISORSHARES TRUST
AdvisorShares Gartman Gold/Yen ETF (GYEN)

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period February 11, 2014* to June 30, 2014

HISTORICAL PERFORMANCE
Total Return as of June 30, 2014

ADVISORSHARES TRUST
AdvisorShares Global Echo ETF (GIVE)

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period May 23, 2012* to June 30, 2014

HISTORICAL PERFORMANCE
Total Return as of June 30, 2014

ADVISORSHARES TRUST
AdvisorShares International Gold ETF (GLDE)

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period February 11, 2014* to June 30, 2014

HISTORICAL PERFORMANCE
Total Return as of June 30, 2014

ADVISORSHARES TRUST
AdvisorShares Madrona Domestic ETF (FWDD)

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period June 21, 2011* to June 30, 2014

HISTORICAL PERFORMANCE
Total Return as of June 30, 2014

ADVISORSHARES TRUST
AdvisorShares Madrona Global Bond ETF (FWDB)

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period June 21, 2011* to June 30, 2014

HISTORICAL PERFORMANCE
Total Return as of June 30, 2014

ADVISORSHARES TRUST
AdvisorShares Madrona International ETF (FWDI)

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period June 21, 2011* to June 30, 2014

HISTORICAL PERFORMANCE
Total Return as of June 30, 2014

ADVISORSHARES TRUST
AdvisorShares Meidell Tactical Advantage ETF (MATH)

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period June 23, 2011* to June 30, 2014

HISTORICAL PERFORMANCE
Total Return as of June 30, 2014

ADVISORSHARES TRUST
AdvisorShares Newfleet Multi-Sector Income ETF (MINC)

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period March 19, 2013* to June 30, 2014

HISTORICAL PERFORMANCE
Total Return as of June 30, 2014

ADVISORSHARES TRUST
AdvisorShares Peritus High Yield ETF (HYLD)

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period December 1, 2010* to June 30, 2014

HISTORICAL PERFORMANCE
Total Return as of June 30, 2014

ADVISORSHARES TRUST
AdvisorShares Pring Turner Business Cycle ETF (DBIZ)

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period December 18, 2012* to June 30, 2014

HISTORICAL PERFORMANCE
Total Return as of June 30, 2014

ADVISORSHARES TRUST
AdvisorShares QAM Equity Hedge ETF (QEH)

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period August 7, 2012* to June 30, 2014

HISTORICAL PERFORMANCE
Total Return as of June 30, 2014

ADVISORSHARES TRUST
AdvisorShares Ranger Equity Bear ETF (HDGE)

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period January 27, 2011* to June 30, 2014

HISTORICAL PERFORMANCE
Total Return as of June 30, 2014

ADVISORSHARES TRUST
AdvisorShares Sage Core Reserves ETF (HOLD)

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period January 14, 2014* to June 30, 2014

HISTORICAL PERFORMANCE
Total Return as of June 30, 2014

ADVISORSHARES TRUST
AdvisorShares STAR Global Buy-Write ETF (VEGA)

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period September 17, 2012* to June 30, 2014

HISTORICAL PERFORMANCE
Total Return as of June 30, 2014

ADVISORSHARES TRUST
AdvisorShares TrimTabs Float Shrink ETF (TTFS)

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period October 5, 2011* to June 30, 2014

HISTORICAL PERFORMANCE
Total Return as of June 30, 2014

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

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period July 21, 2010* to June 30, 2014

HISTORICAL PERFORMANCE
Total Return as of June 30, 2014

ADVISORSHARES TRUST
AdvisorShares YieldPro ETF (YPRO)

HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period March 4, 2014* to June 30, 2014

HISTORICAL PERFORMANCE
Total Return as of June 30, 2014

ADVISORSHARES ACCUVEST GLOBAL LONG SHORT ETF
Schedule of Investments

June 30, 2014

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

June 30, 2014

ADVISORSHARES ACCUVEST GLOBAL OPPORTUNITIES ETF
Schedule of Investments

June 30, 2014

ADVISORSHARES ATHENA INTERNATIONAL BEAR ETF
Schedule of Investments

June 30, 2014

ADVISORSHARES ATHENA INTERNATIONAL BEAR ETF
Schedule of Investments (continued)

June 30, 2014