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

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number     811-22110     

AdvisorShares Trust

(Exact name of registrant as specified in charter)

4800 Montgomery Lane, Suite 150

Bethesda, Maryland 20814

(Address of principal executive offices) (Zip code)

Dan Ahrens

4800 Montgomery Lane, Suite 150

Bethesda, Maryland 20814

(Name and address of agent for service)

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

Date of fiscal year end: June 30

Date of reporting period: December 31, 2016

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

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

Item 1. Reports to Stockholders.

The Report to Shareholders is attached herewith.

ADVISORSHARES TRUST

4800 Montgomery Lane
Suite 150
Bethesda, Maryland 20814
www.advisorshares.com
1.877.843.3831

Semi-Annual Report

December 31, 2016

TABLE OF CONTENTS

Letter from the CEO of AdvisorShares Investments, LLC	1
Shareholder Expense Examples	4
Schedules of Investments
AdvisorShares Athena High Dividend ETF (DIVI)	7
AdvisorShares Cornerstone Small Cap ETF (SCAP)	9
AdvisorShares Dorsey Wright ADR ETF (AADR) [Formerly, AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF]	15
AdvisorShares Focused Equity ETF (CWS)	17
AdvisorShares Gartman Gold/Euro ETF (GEUR)	18
AdvisorShares Gartman Gold/Yen ETF (GYEN)	19
AdvisorShares Global Echo ETF (GIVE)	20
AdvisorShares KIM Korea Equity ETF (KOR)	23
AdvisorShares Madrona Domestic ETF (FWDD)	26
AdvisorShares Madrona Global Bond ETF (FWDB)	35
AdvisorShares Madrona International ETF (FWDI)	37
AdvisorShares Market Adaptive Unconstrained Income ETF (MAUI)	40
AdvisorShares Meidell Tactical Advantage ETF (MATH)	41
AdvisorShares Morgan Creek Global Tactical ETF (GTAA)	42
AdvisorShares Newfleet Multi-Sector Income ETF (MINC)	43
AdvisorShares Pacific Asset Enhanced Floating Rate ETF (FLRT)	60
AdvisorShares Peritus High Yield ETF (HYLD)	64
AdvisorShares QAM Equity Hedge ETF (QEH)	70
AdvisorShares Ranger Equity Bear ETF (HDGE)	72
AdvisorShares Sage Core Reserves ETF (HOLD)	74
AdvisorShares STAR Global Buy-Write ETF (VEGA)	79
AdvisorShares Wilshire Buyback ETF (TTFS) [Formerly, AdvisorShares TrimTabs Float Shrink ETF]	80
Statements of Assets and Liabilities	84
Statements of Operations	90
Statements of Changes in Net Assets	96
Financial Highlights	106
Notes to Financial Statements	120
Board Review of Investment Advisory and Sub-Advisory Agreements	147
Supplemental Information	154

ADVISORSHARES TRUST
Letter from the CEO of AdvisorShares Investments, LLC

December 31, 2016

While pundits among the financial news media sometimes cite the outflows witnessed by actively managed funds, namely among mutual funds and hedge funds, they neglectfully illustrate an incomplete picture. As with every year-end since their inception, total net assets in the actively managed ETF space have witnessed a clear and steady incline. Through December 31, 2016, 160 actively managed ETFs were listed on U.S. exchanges with total net assets just shy of $30 billion. Twenty-three more actively managed ETFs traded at the end of 2016 than the previous year’s end, along with an approximately $7 billion increase in total net assets. Additionally, as more firms enter the actively managed ETF space, the trend slowly progresses towards a more proportional overall market share by fund sponsor. 2016 realized a net gain of eight new fund sponsors, which included Janus and J.P. Morgan.

Exhibit 1As of December 31, 2016 | Source: NYSE Euronext & AdvisorShares

Exhibit one displays the aforementioned year-over-year growth of the actively managed ETF space. Taking a closer examination at the breakdown of the space’s constituents, the average fund age is 2.81 years, the median fund age is 2.35 years, average assets per fund are $186.587 million and the median assets per fund are $25.929 million. As one of the first entrants in the actively managed ETF space, AdvisorShares through the years has been a key participant among this established growth and has consistently delivered innovative new strategies, which are often industry-firsts for the actively managed ETF space. In July 2016, we launched the AdvisorShares Cornerstone Small Cap ETF (NYSE Arca: SCAP), which became the first actively managed ETF to successfully convert the track record from an already existing fund. In September 2016, we launched two more funds that became industry-firsts in their own rights. The AdvisorShares Focused Equity ETF (NYSE Arca: CWS) became the first ETF — passively managed or actively managed — to offer a variable compensation structure. CWS’ innovative fulcrum fee adjusts according to the fund’s performance versus its S&P 500 benchmark.

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ADVISORSHARES TRUST

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

December 31, 2016

The AdvisorShares KIM Korea Equity ETF (NYSE Arca: KOR) became the first actively managed Korean equity ETF, sub-advised by South Korea’s largest independent asset manager and their well-established equity investment approach.

As our firm launched three new funds during the second-half of 2016, we also closed the AdvisorShares EquityPro ETF (NYSE Arca: EPRO) and the AdvisorShares YieldPro ETF (NASDAQ: YPRO) in October. Our international ADR strategy (NYSE Arca: AADR) changed sub-advisors on September 1st and was rebranded as the AdvisorShares Dorsey Wright ADR ETF while retaining the same ticker symbol.

While the cumulative assets under management of our ETF suite stood stagnant during the last six months, AdvisorShares realized the most collective four-star and five-star Morningstar-rated strategies for their overall risk-adjusted performances of any actively managed ETF sponsor through 2016’s conclusion. As of December 31, 2016, these funds included the AdvisorShares Wilshire Buyback ETF (NYSE Arca: TTFS), the AdvisorShares Dorsey Wright ADR ETF (NYSE Arca: AADR) and the AdvisorShares Newfleet Multi-Sector Income ETF (NYSE Arca: MINC), which all hold five-star ratings for their risk-adjusted performances among their respective Morningstar categories. 

As we enter a new calendar year, we very much look forward to the opportunities on the path ahead for both AdvisorShares and the actively managed ETF space. We remain steadfastly committed to providing regular communications and updates regarding our firm, and our products — by delivering alpha-seeking solutions through the best investment technology available, which we believe fully-transparent ETFs represent. We sincerely thank you, our shareholders, for your continued trust and support. Here is to a healthy and prosperous 2017.

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 result in a loss. There is no guarantee that the individual Funds’ will achieve the stated investment objectives. The risks associated with each Fund include the risks associated with the underlying ETFs, which can result in higher volatility, and are detailed in each Fund’s prospectus and on each Fund’s webpage.

The views in this report were those of the Fund’s CEO as of December 31, 2016 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.

TTFS earned its five-star rating for its three-year, five-year and overall risk-adjusted performances from inception through December 31, 2016, out of 353 funds in Morningstar’s Foreign Mid-Cap Blend category over a three-year period, and out of 342 funds over a five-year period.

AADR earned its five-star rating for its three-year, five-year and overall risk-adjusted performances from inception through December 31, 2016, out of 306 funds in Morningstar’s Foreign Large Growth category over a three-year period, and out of 255 funds over a five-year period.

MINC earned its five-star rating for its three-year, five-year and overall risk-adjusted performances from inception through December 31, 2016, out of 438 funds in Morningstar’s Short-Term Bond category over a three-year period, and out of 350 funds over a five-year period.

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ADVISORSHARES TRUST

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

December 31, 2016

The Morningstar Rating™ is provided for those exchange-traded funds (“ETFs”) with at least a three-year history. Ratings are based on the ETF’s Morningstar Risk-Adjusted Return measure which accounts for variation in monthly performance, placing more emphasis on downward variations and rewarding consistent performance. An ETF’s risk-adjusted return includes a brokerage commission estimate. This estimate is intended to reflect what an average investor would pay when buying or selling an ETF. PLEASE NOTE, this estimate is subject to change and the actual brokerage commission an investor pays may be higher or lower than this estimate. Morningstar compares each ETF’s risk-adjusted return to the open end mutual fund rating breakpoints for that category. Consistent with the open-end mutual fund ratings, the top 10% of ETFs in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. The overall rating for an ETF is based on a weighted average of the time-period ratings (e.g., the ETF’s 3, 5, and 10 year rating). The determination of an ETF’s rating does not affect the retail open end mutual fund data published by Morningstar. Past performance is no guarantee of future results.

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ADVISORSHARES TRUST

Shareholder Expense Examples

As a shareholder of the Fund, you incur transaction cost and ongoing costs, including management fees and other Fund expenses. The following example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds. The examples are based on an initial investment of $1,000 invested at July 1, 2016 and held for the period ended December 31, 2016.

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 other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the hypothetical example is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.

In addition, if these transactional costs were included, your costs would have been higher.

Fund Name	Beginning Account Value 7/1/2016		Ending Account Value 12/31/2016		Annualized Expense Ratio for the Period(1)		Expenses  Paid(2)
AdvisorShares Athena High Dividend ETF
Actual	$	1,000.00	$	1,097.90	0.99	%	$	5.23
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,020.21	0.99	%	$	5.04
AdvisorShares Cornerstone Small Cap ETF
Actual	$	1,000.00	$	1,192.70	0.90	%	$	4.81	(3)
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,020.67	0.90	%	$	4.58
AdvisorShares Dorsey Wright ADR ETF(4)
Actual	$	1,000.00	$	1,035.80	1.25	%	$	6.41
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,018.90	1.25	%	$	6.36
AdvisorShares Focused Equity ETF
Actual	$	1,000.00	$	1,037.80	0.75	%	$	2.14	(5)
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,021.42	0.75	%	$	3.82

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ADVISORSHARES TRUST

Shareholder Expense Examples (continued)

Fund Name	Beginning Account Value 7/1/2016		Ending Account Value 12/31/2016		Annualized Expense Ratio for the Period(1)		Expenses  Paid(2)
AdvisorShares Gartman Gold/Euro ETF
Actual	$	1,000.00	$	905.90	0.65	%	$	3.12
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,021.93	0.65	%	$	3.31
AdvisorShares Gartman Gold/Yen ETF
Actual	$	1,000.00	$	974.90	0.65	%	$	3.24
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,021.93	0.65	%	$	3.31
AdvisorShares Global Echo ETF
Actual	$	1,000.00	$	1,011.30	1.50	%	$	7.60
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,017.64	1.50	%	$	7.63
AdvisorShares KIM Korea Equity ETF
Actual	$	1,000.00	$	922.90	0.99	%	$	2.45	(6)
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,020.21	0.99	%	$	5.04
AdvisorShares Madrona Domestic ETF
Actual	$	1,000.00	$	1,102.20	1.25	%	$	6.62
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,018.90	1.25	%	$	6.36
AdvisorShares Madrona Global Bond ETF
Actual	$	1,000.00	$	997.00	0.95	%	$	4.78
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,020.42	0.95	%	$	4.84
AdvisorShares Madrona International ETF
Actual	$	1,000.00	$	1,106.60	1.25	%	$	6.64
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,018.90	1.25	%	$	6.36
AdvisorShares Market Adaptive Unconstrained Income ETF
Actual	$	1,000.00	$	1,013.60	0.99	%	$	5.02
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,020.21	0.99	%	$	5.04
AdvisorShares Meidell Tactical Advantage ETF
Actual	$	1,000.00	$	1,099.90	1.35	%	$	7.15
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,018.40	1.35	%	$	6.87
AdvisorShares Morgan Creek Global Tactical ETF
Actual	$	1,000.00	$	981.20	1.25	%	$	6.24
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,018.90	1.25	%	$	6.36
AdvisorShares Newfleet Multi-Sector Income ETF
Actual	$	1,000.00	$	1,008.30	0.75	%	$	3.80
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,021.42	0.75	%	$	3.82

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ADVISORSHARES TRUST

Shareholder Expense Examples (continued)

Fund Name	Beginning Account Value 7/1/2016		Ending Account Value 12/31/2016		Annualized Expense Ratio for the Period(1)		Expenses  Paid(2)
AdvisorShares Pacific Asset Enhanced Floating Rate ETF
Actual	$	1,000.00	$	1,044.50	1.10	%	$	5.67
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,019.66	1.10	%	$	5.60
AdvisorShares Peritus High Yield ETF
Actual	$	1,000.00	$	1,108.90	1.26	%	$	6.70
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,018.85	1.26	%	$	6.41
AdvisorShares QAM Equity Hedge ETF
Actual	$	1,000.00	$	1,036.10	1.50	%	$	7.70
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,017.64	1.50	%	$	7.63
AdvisorShares Ranger Equity Bear ETF
Actual	$	1,000.00	$	873.60	1.63	%	$	7.70
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,016.99	1.63	%	$	8.29
AdvisorShares Sage Core Reserves ETF
Actual	$	1,000.00	$	1,004.10	0.35	%	$	1.77
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,023.44	0.35	%	$	1.79
AdvisorShares STAR Global Buy-Write ETF
Actual	$	1,000.00	$	1,035.70	1.85	%	$	9.49
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,015.88	1.85	%	$	9.40
AdvisorShares Wilshire Buyback ETF(7)
Actual	$	1,000.00	$	1,158.00	0.90	%	$	4.90
Hypothetical (assuming a 5% return before expenses)	$	1,000.00	$	1,020.67	0.90	%	$	4.58

____________

(1)Expense ratios reflect expense caps through the period ended December 31, 2016.

(2)Expenses are calculated using each Fund’s annualized expense ratio, multiplied by the average account value for the period, multiplied by 184/365 (to reflect the six-month period).

(3)Actual Expenses Paid are equal to the Fund’s annualized expense ratio, multiplied by the average account value for the period, multiplied by 178/365 (to reflect commencement of operations to December 31, 2016).

(4)Formerly known as, AdvisorShares WCM/BNY Mellon focused Growth ADR ETF.

(5)Actual Expenses Paid are equal to the Fund’s annualized expense ratio, multiplied by the average account value for the period, multiplied by 102/365 (to reflect commencement of operations to December 31, 2016).

(6)Actual Expenses Paid are equal to the Fund’s annualized expense ratio, multiplied by the average account value for the period, multiplied by 94/365 (to reflect commencement of operations to December 31, 2016).

(7)Formerly known as, AdvisorShares TrimTabs Float Shrink ETF.

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ADVISORSHARES ATHENA HIGH DIVIDEND ETF

Schedule of Investments

December 31, 2016 (Unaudited)

Investments	Shares	Value
COMMON STOCKS — 99.7%
Auto Manufacturers — 4.3%
Ford Motor Co.	15,372	$	186,462
General Motors Co.	4,663		162,459
Total Auto Manufacturers			348,921
Banks — 10.2%
Banco de Chile (Chile)(a)	2,580		181,761
Grupo Aval Acciones y Valores SA (Colombia)(a)(b)	27,842		221,066
Grupo Financiero Santander Mexico SAB de CV, Class B (Mexico)(a)	36,189		260,199
PacWest Bancorp	2,862		155,807
Total Banks			818,833
Chemicals — 2.6%
Braskem SA (Brazil)(a)	9,903		210,043
Commercial Services — 3.0%
Macquarie Infrastructure Corp.	2,984		243,793
Diversified Financial Services —  4.0%
Navient Corp.	8,774		144,157
Waddell & Reed Financial, Inc., Class A	9,009		175,765
Total Diversified Financial Services			319,922
Electric — 8.4%
Atlantica Yield PLC (Spain)	8,484		164,165
Huaneng Power International, Inc. (China)(a)(b)	9,772		254,463
NRG Yield, Inc., Class C	16,334		258,077
Total Electric			676,705
Engineering & Construction — 2.3%
Grupo Aeroportuario del Centro Norte SAB de CV (Mexico)(a)(b)	5,367		185,376
Gas — 2.1%
CenterPoint Energy, Inc.	6,951		171,273
Media — 3.2%
Gannett Co., Inc.	26,082		253,256
Mining — 3.1%
Sibanye Gold Ltd. (South Africa)(a)(b)	35,157		248,208
Office/Business Equipment — 2.5%
Pitney Bowes, Inc.	13,091		198,852

Investments	Shares	Value
COMMON STOCKS (continued)
Oil & Gas — 10.7%
Helmerich & Payne, Inc.(b)	1,748	$	135,295
HollyFrontier Corp.	5,588		183,063
PBF Energy, Inc., Class A(b)	6,836		190,588
Vermilion Energy, Inc. (Canada)	4,580		193,139
Western Refining, Inc.	4,285		162,187
Total Oil & Gas			864,272
Pipelines — 4.8%
ONEOK, Inc.	3,079		176,766
SemGroup Corp., Class A	4,999		208,708
Total Pipelines			385,474
Real Estate Investment Trusts — 13.0%
Annaly Capital Management, Inc.	19,620		195,611
CoreCivic, Inc.	7,547		184,600
HCP, Inc.	6,515		193,626
Hospitality Properties Trust	8,998		285,597
Quality Care Properties, Inc.*	1,633		25,311
Starwood Property Trust, Inc.	7,525		165,174
Total Real Estate Investment Trusts			1,049,919
Retail — 7.3%
Abercrombie & Fitch Co., Class A	14,916		178,992
GameStop Corp., Class A	8,926		225,471
Staples, Inc.	19,799		179,181
Total Retail			583,644
Telecommunications — 10.1%
AT&T, Inc.	4,850		206,270
CenturyLink, Inc.	7,552		179,586
Chunghwa Telecom Co. Ltd. (Taiwan)(a)(b)	6,665		210,281
Frontier Communications Corp.	65,115		220,089
Total Telecommunications			816,226
Toys/Games/Hobbies — 2.2%
Mattel, Inc.	6,442		177,477
Transportation — 5.9%
Euronav NV (Belgium)	28,219		224,341
Ship Finance International Ltd. (Norway)(b)	17,013		252,643
Total Transportation			476,984
Total Common Stocks
(Cost $7,551,052)			8,029,178

See accompanying Notes to Financial Statements.

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ADVISORSHARES ATHENA HIGH DIVIDEND ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

Investments	Shares/ Principal		Value
MONEY MARKET FUND — 0.0%**
JP Morgan US Government Money Market Fund – Institutional Class, 0.41%(c) (Cost $2,102)		2,102	$	2,102
REPURCHASE AGREEMENTS — 13.9%(d)
Citigroup Global Markets, Inc., dated 12/30/16, due 01/03/17, 0.53%, total to be received $259,812, (collateralized by various U.S. Government Agency Obligations, 2.00% – 8.50%, 12/01/17 – 01/01/47, totaling $264,171)	$	259,804		259,804
JP Morgan Securities LLC, dated 12/30/16, due 01/03/17, 0.50%, total to be received $77,002, (collateralized by various U.S. Government Agency Obligations, 0.00% – 1.38%, 04/13/17 – 08/31/21, totaling $78,344)		77,000		77,000
Merrill Lynch Pierce Fenner & Smith, Inc., dated 12/30/16, due 01/03/17, 0.50%, total to be received $259,811, (collateralized by various U.S. Government Agency Obligations, 1.74% – 6.00%, 08/01/22 – 01/15/49, totaling $264,312)		259,804		259,804
Mizuho Securities USA, Inc., dated 12/30/16, due 01/03/17, 0.48%, total to be received $259,811, (collateralized by various U.S. Government Agency Obligations, 2.00% – 6.50%, 07/01/24 – 09/20/46, totaling $264,333)		259,804		259,804
RBC Dominion Securities, Inc., dated 12/30/16, due 01/03/17, 0.52%, total to be received $259,812, (collateralized by various U.S. Government Agency Obligations, 0.88% – 7.00%, 02/13/17 – 01/01/47, totaling $264,250)		259,804		259,804
Total Repurchase Agreements (Cost $1,116,216)				1,116,216
Total Investments – 113.6% (Cost $8,669,370)				9,147,496
Liabilities in Excess of Other Assets – (13.6%)				(1,094,488	)
Net Assets — 100.0%			$	8,053,008

____________

PLC – Public Limited Company

*Non-income producing security.

**Less than 0.05%.

(a)American Depositary Receipt.

(b)All or a portion of security is on loan. The aggregate market value of the securities on loan is $1,234,159; the aggregate market value of the collateral held by the fund is $1,261,197. The aggregate market value of the collateral includes non-cash U.S. Treasury securities collateral having a value of $144,981.

(c)Rate shown reflects the 7-day yield as of December 31, 2016.

(d)Collateral received from brokers for securities lending was invested in these short-term investments.

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Auto Manufacturers	4.3	%
Banks	10.2
Chemicals	2.6
Commercial Services	3.0
Diversified Financial Services	4.0
Electric	8.4
Engineering & Construction	2.3
Gas	2.1
Media	3.2
Mining	3.1
Office/Business Equipment	2.5
Oil & Gas	10.7
Pipelines	4.8
Real Estate Investment Trusts	13.0
Retail	7.3
Telecommunications	10.1
Toys/Games/Hobbies	2.2
Transportation	5.9
Money Market Fund	0.0	**
Repurchase Agreements	13.9
Total Investments	113.6
Liabilities in Excess of Other Assets	(13.6	)
Net Assets	100.0	%

____________

**Less than 0.05%.

See accompanying Notes to Financial Statements.

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ADVISORSHARES CORNERSTONE SMALL CAP ETF

Schedule of Investments

December 31, 2016 (Unaudited)

Investments	Shares	Value
COMMON STOCKS — 97.7%
Airlines — 0.9%
SkyWest, Inc.	671	$	24,458
Auto Manufacturers — 0.4%
Wabash National Corp.*	633		10,014
Auto Parts & Equipment — 1.3%
Cooper Tire & Rubber Co.	287		11,150
Douglas Dynamics, Inc.	415		13,965
Spartan Motors, Inc.	954		8,825
Total Auto Parts & Equipment			33,940
Banks — 4.7%
BancFirst Corp.	121		11,259
Cardinal Financial Corp.	408		13,378
Central Pacific Financial Corp.	363		11,406
Chemical Financial Corp.	263		14,247
Eagle Bancorp, Inc.*	352		21,454
Hancock Holding Co.	287		12,370
National Bank Holdings Corp., Class A	306		9,758
TriState Capital Holdings, Inc.*	702		15,514
WashingtonFirst Bankshares, Inc.	396		11,480
Total Banks			120,866
Beverages — 0.2%
Boston Beer Co., Inc. (The), Class A*	38		6,454
Biotechnology — 0.8%
ANI Pharmaceuticals, Inc.*	142		8,608
ARIAD Pharmaceuticals, Inc.*	965		12,005
Total Biotechnology			20,613
Building Materials — 1.8%
AAON, Inc.	270		8,923
Gibraltar Industries, Inc.*	415		17,285
Louisiana-Pacific Corp.*	474		8,973
NCI Building Systems, Inc.*	730		11,425
Total Building Materials			46,606
Chemicals — 1.9%
Balchem Corp.	121		10,154
Chemours Co. (The)	438		9,675
Ferro Corp.*	692		9,916
Innospec, Inc.	142		9,727
Rayonier Advanced Materials, Inc.	564		8,720
Total Chemicals			48,192
Coal — 0.6%
SunCoke Energy, Inc.*	1,274		14,447

Investments	Shares	Value
COMMON STOCKS (continued)
Commercial Services — 8.2%
ABM Industries, Inc.	225	$	9,189
Alarm.com Holdings, Inc.*	332		9,240
Albany Molecular Research, Inc.*	477		8,948
Apollo Education Group, Inc.*	1,011		10,009
Bridgepoint Education, Inc.*	948		9,603
Capella Education Co.	113		9,921
Career Education Corp.*	1,016		10,251
DeVry Education Group, Inc.	180		5,616
Forrester Research, Inc.	206		8,848
Grand Canyon Education, Inc.*	242		14,145
Green Dot Corp., Class A*	318		7,489
HealthEquity, Inc.*	306		12,399
HMS Holdings Corp.*	524		9,516
Insperity, Inc.	249		17,667
Kelly Services, Inc., Class A	408		9,351
LendingTree, Inc.*	52		5,270
LifeLock, Inc.*(a)	564		13,491
Navigant Consulting, Inc.*	481		12,593
On Assignment, Inc.*	197		8,700
Quad/Graphics, Inc.	422		11,343
ServiceSource International, Inc.*	1,591		9,037
Total Commercial Services			212,626
Computers — 4.7%
3D Systems Corp.*	467		6,207
Barracuda Networks, Inc.*	460		9,858
Carbonite, Inc.*	687		11,267
Engility Holdings, Inc.*	256		8,627
Insight Enterprises, Inc.*	289		11,687
Mentor Graphics Corp.	377		13,908
Qualys, Inc.*	197		6,235
Silver Spring Networks, Inc.*	656		8,731
Sykes Enterprises, Inc.*	256		7,388
Tessera Holding Corp.	346		15,293
Varonis Systems, Inc.*	329		8,817
Vocera Communications, Inc.*	692		12,795
Total Computers			120,813
Diversified Financial Services — 2.1%
Cowen Group, Inc., Class A*(a)	665		10,307
Greenhill & Co., Inc.	338		9,363
INTL FCStone, Inc.*	301		11,920
LendingClub Corp.*(a)	1,598		8,389
WageWorks, Inc.*	204		14,790
Total Diversified Financial Services			54,769

See accompanying Notes to Financial Statements.

9

ADVISORSHARES CORNERSTONE SMALL CAP ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

Investments	Shares	Value
COMMON STOCKS (continued)
Electric — 0.4%
Avista Corp.	235	$	9,398
Electrical Components & Equipment — 0.3%
Powell Industries, Inc.	225		8,775
Electronics — 0.7%
Knowles Corp.*	586		9,792
TASER International, Inc.*	346		8,387
Total Electronics			18,179
Energy – Alternate Sources — 1.1%
FutureFuel Corp.	685		9,522
Green Plains, Inc.	287		7,993
Sunrun, Inc.*(a)	1,907		10,126
Total Energy – Alternate Sources			27,641
Engineering & Construction — 1.3%
Argan, Inc.	308		21,729
Exponent, Inc.	180		10,854
Total Engineering & Construction			32,583
Entertainment — 1.1%
Churchill Downs, Inc.	90		13,540
Marriott Vacations Worldwide Corp.	180		15,273
Total Entertainment			28,813
Environmental Control — 0.5%
Casella Waste Systems, Inc., Class A*	1,055		13,092
Food — 1.6%
Fresh Del Monte Produce, Inc.	263		15,946
Sanderson Farms, Inc.(a)	114		10,743
SpartanNash Co.	363		14,353
Total Food			41,042
Hand/Machine Tools — 0.4%
Kennametal, Inc.	318		9,941
Healthcare – Products — 6.1%
Cerus Corp.*(a)	1,697		7,382
CryoLife, Inc.*	581		11,126
Halyard Health, Inc.*	256		9,467
ICU Medical, Inc.*	90		13,261
Inogen, Inc.*	173		11,620
LeMaitre Vascular, Inc.	529		13,405
LivaNova PLC*	135		6,071
Luminex Corp.*	422		8,537
Masimo Corp.*	263		17,726

Investments	Shares	Value
COMMON STOCKS (continued)
Healthcare – Products (continued)
Merit Medical Systems, Inc.*	543	$	14,390
NuVasive, Inc.*	144		9,700
OraSure Technologies, Inc.*	986		8,657
Orthofix International NV*	173		6,259
Vascular Solutions, Inc.*	197		11,052
Zeltiq Aesthetics, Inc.*	236		10,271
Total Healthcare – Products			158,924
Healthcare – Services — 0.3%
Healthways, Inc.*	373		8,486
Home Furnishings — 0.9%
Ethan Allen Interiors, Inc.	235		8,660
iRobot Corp.*	256		14,963
Total Home Furnishings			23,623
Household Products/Wares — 1.4%
ACCO Brands Corp.*	775		10,114
Central Garden & Pet Co.*(a)	453		14,990
SodaStream International Ltd. (Israel)*	262		10,341
Total Household Products/Wares			35,445
Insurance — 1.7%
MBIA, Inc.*	1,099		11,759
NMI Holdings, Inc., Class A*	1,244		13,249
OneBeacon Insurance Group Ltd., Class A	611		9,807
Universal Insurance Holdings, Inc.	353		10,025
Total Insurance			44,840
Internet — 2.6%
FireEye, Inc.*(a)	739		8,794
Groupon, Inc.*(a)	2,230		7,404
Imperva, Inc.*	241		9,254
Liquidity Services, Inc.*	849		8,278
Mimecast Ltd.*	606		10,847
RingCentral, Inc., Class A*	391		8,055
Stamps.com, Inc.*	90		10,319
WebMD Health Corp.*	104		5,155
Total Internet			68,106
Iron/Steel — 1.8%
AK Steel Holding Corp.*(a)	2,103		21,472
Cliffs Natural Resources, Inc.*(a)	1,432		12,043
Schnitzer Steel Industries, Inc., Class A	479		12,310
Total Iron/Steel			45,825

See accompanying Notes to Financial Statements.

10

ADVISORSHARES CORNERSTONE SMALL CAP ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

Investments	Shares	Value
COMMON STOCKS (continued)
Leisure Time — 1.8%
Callaway Golf Co.	1,048	$	11,486
Drew Industries, Inc.*	135		14,546
Fox Factory Holding Corp.*	396		10,989
Nautilus, Inc.*(a)	581		10,749
Total Leisure Time			47,770
Lodging — 0.8%
Belmond Ltd., Class A (United Kingdom)*	790		10,547
Monarch Casino & Resort, Inc.*	353		9,100
Total Lodging			19,647
Machinery – Diversified — 1.3%
Alamo Group, Inc.	142		10,806
Chart Industries, Inc.*	294		10,590
DXP Enterprises, Inc.*	349		12,124
Total Machinery – Diversified			33,520
Media — 0.4%
TiVo Corp.*	469		9,802
Metal Fabricate/Hardware — 0.4%
Haynes International, Inc.	229		9,845
Mining — 0.4%
Stillwater Mining Co.*	709		11,422
Miscellaneous Manufacturing — 2.3%
Fabrinet (Thailand)*	377		15,193
Harsco Corp.	842		11,451
John Bean Technologies Corp.	225		19,339
Smith & Wesson Holding Corp.*(a)	685		14,440
Total Miscellaneous Manufacturing			60,423
Office Furnishings — 0.3%
Herman Miller, Inc.	256		8,755
Oil & Gas — 2.5%
Callon Petroleum Co.*	640		9,837
Carrizo Oil & Gas, Inc.*	197		7,358
CVR Energy, Inc.(a)	539		13,685
Denbury Resources, Inc.*	2,939		10,815
Matador Resources Co.*(a)	389		10,021
Unit Corp.*	438		11,769
Total Oil & Gas			63,485

Investments	Shares	Value
COMMON STOCKS (continued)
Oil & Gas Services — 1.9%
Archrock, Inc.	774	$	10,217
Helix Energy Solutions Group, Inc.*	756		6,668
McDermott International, Inc.*	1,712		12,652
Newpark Resources, Inc.*	1,227		9,202
Oil States International, Inc.*	275		10,725
Total Oil & Gas Services			49,464
Packaging & Containers — 0.5%
Greif, Inc., Class A	249		12,776
Pharmaceuticals — 2.7%
Amphastar Pharmaceuticals, Inc.*	529		9,744
Anika Therapeutics, Inc.*	218		10,673
Corcept Therapeutics, Inc.*	1,581		11,478
Prestige Brands Holdings, Inc.*	204		10,629
Supernus Pharmaceuticals, Inc.*	407		10,277
Teligent, Inc.*(a)	1,090		7,205
Xencor, Inc.*	416		10,949
Total Pharmaceuticals			70,955
Private Equity — 0.3%
Kennedy-Wilson Holdings, Inc.	365		7,482
Real Estate — 0.6%
HFF, Inc., Class A	263		7,956
St Joe Co. (The)*(a)	446		8,474
Total Real Estate			16,430
Real Estate Investment Trusts — 9.6%
Acadia Realty Trust	218		7,124
Agree Realty Corp.	256		11,789
Ares Commercial Real Estate Corp.	694		9,529
CareTrust REIT, Inc.	564		8,640
CoreSite Realty Corp.	180		14,287
Corporate Office Properties Trust	337		10,521
EastGroup Properties, Inc.	135		9,968
Education Realty Trust, Inc.	182		7,699
First Industrial Realty Trust, Inc.	365		10,238
Four Corners Property Trust, Inc.	398		8,167
Getty Realty Corp.	376		9,584
iStar, Inc.*	823		10,180
LaSalle Hotel Properties	351		10,695
Lexington Realty Trust	838		9,050

See accompanying Notes to Financial Statements.

11

ADVISORSHARES CORNERSTONE SMALL CAP ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

Investments	Shares	Value
COMMON STOCKS (continued)
Real Estate Investment Trusts (continued)
Mack-Cali Realty Corp.	332	$	9,635
National Health Investors, Inc.	101		7,491
National Storage Affiliates Trust	388		8,563
Pebblebrook Hotel Trust	299		8,895
Piedmont Office Realty Trust, Inc., Class A	372		7,779
Potlatch Corp.	190		7,913
Ramco-Gershenson Properties Trust	446		7,395
Rexford Industrial Realty, Inc.	384		8,905
Sabra Health Care REIT, Inc.	322		7,863
Silver Bay Realty Trust Corp.	540		9,256
Summit Hotel Properties, Inc.	626		10,035
Urstadt Biddle Properties, Inc., Class A	396		9,548
Washington Real Estate Investment Trust	256		8,369
Total Real Estate Investment Trusts			249,118
Retail — 2.6%
Arcos Dorados Holdings, Inc., Class A (Uruguay)*	1,657		8,948
Big 5 Sporting Goods Corp.	481		8,345
Francesca’s Holdings Corp.*	481		8,672
Jack in the Box, Inc.	142		15,853
Ollie’s Bargain Outlet Holdings, Inc.*(a)	283		8,051
Potbelly Corp.*	543		7,005
Wendy’s Co. (The)	723		9,775
Total Retail			66,649
Savings & Loans — 2.5%
Bank Mutual Corp.	951		8,987
Flagstar Bancorp, Inc.*	346		9,321
Meridian Bancorp, Inc.	539		10,187
Northfield Bancorp, Inc.	602		12,022
Northwest Bancshares, Inc.(a)	626		11,287
OceanFirst Financial Corp.	475		14,264
Total Savings & Loans			66,068
Semiconductors — 6.0%
Alpha & Omega Semiconductor Ltd.*	353		7,508
Amkor Technology, Inc.*	1,290		13,610
Applied Micro Circuits Corp.*	1,178		9,719
CEVA, Inc.*	401		13,454

Investments	Shares	Value
COMMON STOCKS (continued)
Semiconductors (continued)
FormFactor, Inc.*	855	$	9,576
Inphi Corp.*	512		22,845
Intersil Corp., Class A	593		13,224
MaxLinear, Inc., Class A*	754		16,437
Mellanox Technologies Ltd. (Israel)*	187		7,648
Nanometrics, Inc.*	376		9,423
Power Integrations, Inc.	158		10,720
Silicon Laboratories, Inc.*	159		10,335
Veeco Instruments, Inc.*	369		10,756
Total Semiconductors			155,255
Software — 5.0%
2U, Inc.*	270		8,140
Actua Corp.*	695		9,730
Acxiom Corp.*	310		8,308
Bazaarvoice, Inc.*	1,439		6,979
Blackbaud, Inc.	114		7,296
CommVault Systems, Inc.*	180		9,252
CyberArk Software Ltd. (Israel)*	166		7,553
Ebix, Inc.(a)	294		16,773
HubSpot, Inc.*	158		7,426
MINDBODY, Inc., Class A*	550		11,715
Paycom Software, Inc.*(a)	187		8,507
RealPage, Inc.*	398		11,940
SPS Commerce, Inc.*	109		7,618
Synchronoss Technologies, Inc.*	204		7,813
Total Software			129,050
Telecommunications — 4.4%
Cincinnati Bell, Inc.*	418		9,342
Consolidated Communications Holdings, Inc.	334		8,968
DigitalGlobe, Inc.*	332		9,512
Extreme Networks, Inc.*	2,151		10,820
Gigamon, Inc.*	270		12,298
Iridium Communications, Inc.*(a)	813		7,805
Ixia*	683		10,996
LogMeIn, Inc.	173		16,703
Lumos Networks Corp.*	535		8,357
NETGEAR, Inc.*	180		9,783
NeuStar, Inc., Class A*	318		10,621
Total Telecommunications			115,205
Textiles — 0.8%
Culp, Inc.	287		10,662

See accompanying Notes to Financial Statements.

12

ADVISORSHARES CORNERSTONE SMALL CAP ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

Investments	Shares/ Principal		Value
COMMON STOCKS (continued)
Textiles (continued)
UniFirst Corp.		69	$	9,912
Total Textiles				20,574
Transportation — 0.3%
Atlas Air Worldwide Holdings, Inc.*		152		7,927
Trucking & Leasing — 0.5%
GATX Corp.(a)		121		7,451
Greenbrier Cos., Inc. (The)(a)		152		6,316
Total Trucking & Leasing				13,767
Total Common Stocks
(Cost $2,139,840)				2,533,900
MONEY MARKET FUND — 0.8%
STIT – Government & Agency Portfolio, Institutional Class, 0.43%(b) (Cost $20,002)		20,002		20,002
REPURCHASE AGREEMENT — 7.5%(c)
HSBC Securities USA, Inc., dated 12/30/16, due 01/03/17, 0.45%, total to be received $193,503, (collateralized by various U.S. Government Agency Obligations, 0.88% – 3.00%, 05/15/17 – 05/15/46, totaling $196,621)
(Cost $193,498)	$	193,498		193,498
Total Investments — 106.0%
(Cost $2,353,340)				2,747,400
Liabilities in Excess of Other Assets — (6.0%)				(156,109	)
Net Assets — 100.0%			$	2,591,291

____________

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 $235,704; the aggregate market value of the collateral held by the fund is $244,358. The aggregate market value of the collateral includes non-cash U.S. Treasury securities collateral having a value of $50,860.

(b)Rate shown reflects the 7-day yield as of December 31, 2016.

(c)Collateral received from brokers for securities lending was invested in these short-term investments.

SUMMARY OF SCHEDULE OF INVESTMENTS

	%  of Net Assets
Airlines	0.9	%
Auto Manufacturers	0.4
Auto Parts & Equipment	1.3
Banks	4.7
Beverages	0.2
Biotechnology	0.8
Building Materials	1.8
Chemicals	1.9
Coal	0.6
Commercial Services	8.2
Computers	4.7
Diversified Financial Services	2.1
Electric	0.4
Electrical Components & Equipment	0.3
Electronics	0.7
Energy – Alternate Sources	1.1
Engineering & Construction	1.3
Entertainment	1.1
Environmental Control	0.5
Food	1.6
Hand/Machine Tools	0.4
Healthcare – Products	6.1
Healthcare – Services	0.3
Home Furnishings	0.9
Household Products/Wares	1.4
Insurance	1.7
Internet	2.6
Iron/Steel	1.8
Leisure Time	1.8
Lodging	0.8
Machinery – Diversified	1.3
Media	0.4
Metal Fabricate/Hardware	0.4
Mining	0.4
Miscellaneous Manufacturing	2.3
Office Furnishings	0.3
Oil & Gas	2.5
Oil & Gas Services	1.9
Packaging & Containers	0.5
Pharmaceuticals	2.7
Private Equity	0.3
Real Estate	0.6
Real Estate Investment Trusts	9.6
Retail	2.6
Savings & Loans	2.5
Semiconductors	6.0

See accompanying Notes to Financial Statements.

13

ADVISORSHARES CORNERSTONE SMALL CAP ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

SUMMARY OF SCHEDULE OF INVESTMENTS (continued)

	%  of Net Assets
Software	5.0	%
Telecommunications	4.4
Textiles	0.8
Transportation	0.3
Trucking & Leasing	0.5
Money Market Fund	0.8
Repurchase Agreement	7.5
Total Investments	106.0
Liabilities in Excess of Other Assets	(6.0	)
Net Assets	100.0	%

See accompanying Notes to Financial Statements.

14

ADVISORSHARES DORSEY WRIGHT ADR ETF

(Formerly AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF)

Schedule of Investments

December 31, 2016 (Unaudited)

Investments	Shares	Value
COMMON STOCKS — 98.6%
Airlines — 2.4%
Latam Airlines Group SA (Chile)*(a)(b)	53,859	$	440,567
Banks — 13.3%
Banco Bradesco SA (Brazil)(b)	50,827		442,703
Banco do Brasil SA (Brazil)(b)	57,571		478,991
Banco Santander Brasil SA (Brazil)(a)(b)	64,299		571,618
Itau Unibanco Holding SA (Brazil)(b)	41,646		428,121
Sberbank of Russia PJSC (Russia)(b)	42,065		487,113
Total Banks			2,408,546
Building Materials — 2.7%
CRH PLC (Ireland)(b)	14,049		483,005
Chemicals — 8.9%
Braskem SA (Brazil)(a)(b)	27,499		583,254
Sinopec Shanghai Petrochemical Co., Ltd. (China)(a)(b)	8,464		458,156
Sociedad Quimica y Minera de Chile SA (Chile)(b)	20,263		580,535
Total Chemicals			1,621,945
Commercial Services — 6.8%
New Oriental Education & Technology Group, Inc. (China)*(b)	12,245		515,515
TAL Education Group (China)*(a)(b)	10,174		713,706
Total Commercial Services			1,229,221
Diversified Financial Services — 2.4%
KB Financial Group, Inc. (South Korea)(b)	12,070		425,950
Electric — 16.7%
Empresa Distribuidora Y Comercializadora Norte (Argentina)*(a)(b)	56,720		1,579,652
Pampa Energia SA (Argentina)*(a)(b)	41,397		1,441,030
Total Electric			3,020,682
Food — 2.9%
Cosan Ltd., Class A (Brazil)	69,340		520,743
Insurance — 5.1%
Chubb Ltd.	3,820		504,698
Tokio Marine Holdings, Inc. (Japan)(b)	10,472		428,200
Total Insurance			932,898

Investments	Shares	Value
COMMON STOCKS (continued)
Internet — 2.6%
Ctrip.com International Ltd. (China)*(a)(b)	11,791	$	471,640
Iron/Steel — 4.9%
Cia Siderurgica Nacional SA (Brazil)*(a)(b)	102,710		331,753
Ternium SA (Luxembourg)(b)	23,424		565,690
Total Iron/Steel			897,443
Lodging — 2.8%
China Lodging Group Ltd. (China)*(b)	9,810		508,550
Mining — 3.6%
Cia de Minas Buenaventura SAA (Peru)(b)	33,359		376,289
Newcrest Mining Ltd. (Australia)(a)(b)	18,630		267,527
Total Mining			643,816
Oil & Gas — 8.0%
LUKOIL PJSC (Russia)(b)	7,991		448,455
Petroleo Brasileiro SA (Brazil)*(b)	57,867		585,035
Ultrapar Participacoes SA (Brazil)(a)(b)	20,130		417,496
Total Oil & Gas			1,450,986
Real Estate — 6.4%
Cresud SACIF y A (Argentina)*(a)(b)	26,086		411,376
IRSA Inversiones y Representaciones SA (Argentina)*(a)(b)	23,152		426,923
Xinyuan Real Estate Co., Ltd. (China)(b)	65,594		325,346
Total Real Estate			1,163,645
Semiconductors — 3.6%
Silicon Motion Technology Corp. (Taiwan)(b)	15,452		656,401
Software — 2.6%
SAP SE (Germany)(b)	5,496		475,019
Telecommunications — 2.9%
Nice Ltd. (Israel)(b)	7,581		521,270
Total Common Stocks (Cost $17,182,504)			17,872,327
MONEY MARKET FUND — 1.2%
Invesco Government & Agency Portfolio – Private Investment Class, 0.14%(c) (Cost $225,376)	225,376		225,376

See accompanying Notes to Financial Statements.

15

ADVISORSHARES DORSEY WRIGHT ADR ETF

(Formerly AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF)

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

Investments	Principal		Value
REPURCHASE AGREEMENTS — 13.4%(d)
Citigroup Global Markets, Inc., dated 12/30/16, due 01/03/17, 0.53%, total to be received $568,242, (collateralized by various U.S. Government Agency Obligations, 2.00% – 8.50%, 12/01/17 – 01/01/47, totaling $577,777)	$	568,225		568,225
JP Morgan Securities LLC, dated 12/30/16, due 01/03/17, 0.50%, total to be received $168,415, (collateralized by various U.S. Government Agency Obligations, 0.00% – 1.38%, 04/13/17 – 08/31/21, totaling $171,349)		168,410		168,410
Merrill Lynch Pierce Fenner & Smith, Inc., dated 12/30/16, due 01/03/17, 0.50%, total to be received $568,241, (collateralized by various U.S. Government Agency Obligations, 1.74% – 6.00%, 08/01/22 – 01/15/49, totaling $578,084)		568,225		568,225
Mizuho Securities USA, Inc., dated 12/30/16, due 01/03/17, 0.48%, total to be received $568,240, (collateralized by various U.S. Government Agency Obligations, 2.00% – 6.50%, 07/01/24 – 09/20/46, totaling $578,131)		568,225		568,225
RBC Dominion Securities, Inc., dated 12/30/16, due 01/03/17, 0.52%, total to be received $568,241, (collateralized by various U.S. Government Agency Obligations, 0.88% – 7.00%, 02/13/17 – 01/01/47, totaling $577,950)		568,225		568,225
Total Repurchase Agreements
(Cost $2,441,310)				2,441,310
Total Investments — 113.2%
(Cost $19,849,190)				20,539,013
Liabilities in Excess of Other Assets – (13.2%)				(2,399,052	)
Net Assets — 100.0%			$	18,139,961

____________

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 $2,783,077; the aggregate market value of the collateral held by the fund is $2,892,302. The aggregate market value of the collateral includes non-cash U.S. Treasury securities collateral having a value of $450,992.

(b)American Depositary Receipt.

(c)Rate shown reflects the 7-day yield as of December 31, 2016.

(d)Collateral received from brokers for securities lending was invested in these short-term investments.

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Airlines	2.4	%
Banks	13.3
Building Materials	2.7
Chemicals	8.9
Commercial Services	6.8
Diversified Financial Services	2.4
Electric	16.7
Food	2.9
Insurance	5.1
Internet	2.6
Iron/Steel	4.9
Lodging	2.8
Mining	3.6
Oil & Gas	8.0
Real Estate	6.4
Semiconductors	3.6
Software	2.6
Telecommunications	2.9
Money Market Fund	1.2
Repurchase Agreements	13.4
Total Investments	113.2
Liabilities in Excess of Other Assets	(13.2	)
Net Assets	100.0	%

See accompanying Notes to Financial Statements.

16

ADVISORSHARES FOCUSED EQUITY ETF
Schedule of Investments

December 31, 2016 (Unaudited)

Investments	Shares	Value
COMMON STOCKS — 99.4%
Aerospace/Defense — 3.9%
HEICO Corp.	3,937	$	303,740
Banks — 4.0%
Signature Bank*	2,075		311,665
Building Materials — 3.9%
Continental Building Products, Inc.*	13,354		308,477
Chemicals — 11.9%
Axalta Coating Systems Ltd.*	11,495		312,664
RPM International, Inc.	5,747		309,361
Sherwin-Williams Co. (The)	1,149		308,782
Total Chemicals			930,807
Commercial Services — 4.0%
Moody’s Corp.	3,279		309,111
Computers — 4.0%
Cognizant Technology Solutions Corp., Class A*	5,530		309,846
Diversified Financial Services — 8.0%
Alliance Data Systems Corp.	1,359		310,532
Intercontinental Exchange, Inc.	5,481		309,238
Total Diversified Financial Services			619,770
Entertainment — 4.0%
Cinemark Holdings, Inc.	8,077		309,834
Food — 12.0%
Hormel Foods Corp.	8,909		310,122
Ingredion, Inc.	2,492		311,400
JM Smucker Co. (The)	2,427		310,802
Total Food			932,324
Hand/Machine Tools — 4.0%
Snap-on, Inc.	1,808		309,656
Healthcare – Products — 12.0%
C.R. Bard, Inc.	1,396		313,626
Danaher Corp.	3,974		309,336
Stryker Corp.	2,590		310,308
Total Healthcare – Products			933,270
Insurance — 4.0%
Aflac, Inc.	4,449		309,650
Machinery – Diversified — 4.0%
Wabtec Corp.	3,716		308,502
Pharmaceuticals — 3.9%
Express Scripts Holding Co.*	4,468		307,354

Investments	Shares	Value
COMMON STOCKS (continued)
Retail — 3.9%
Ross Stores, Inc.	4,668	$	306,221
Software — 11.9%
Cerner Corp.*	6,541		309,847
Fiserv, Inc.*	2,896		307,787
Microsoft Corp.	4,929		306,288
Total Software			923,922
Total Common Stocks (Cost $7,653,741)			7,734,149
MONEY MARKET FUND — 6.9%
BlackRock Liquidity Funds Treasury Trust Fund Portfolio, Institutional Class, 0.36%(a) (Cost $538,835)	538,835		538,835
Total Investments — 106.3% (Cost $8,192,576)			8,272,984
Liabilities in Excess of Other Assets – (6.3%)			(491,898	)
Net Assets — 100.0%		$	7,781,086

____________

*Non-income producing security.

(a)Rate shown reflects the 7-day yield as of December 31, 2016.

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Aerospace/Defense	3.9	%
Banks	4.0
Building Materials	3.9
Chemicals	11.9
Commercial Services	4.0
Computers	4.0
Diversified Financial Services	8.0
Entertainment	4.0
Food	12.0
Hand / Machine Tools	4.0
Healthcare - Products	12.0
Insurance	4.0
Machinery – Diversified	4.0
Pharmaceuticals	3.9
Retail	3.9
Software	11.9
Money Market Fund	6.9
Total Investments	106.3
Liabilities in Excess of Other Assets	(6.3	)
Net Assets	100.0	%

See accompanying Notes to Financial Statements.

17

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

December 31, 2016 (Unaudited)

Investments	Shares	Value
EXCHANGE TRADED FUND — 28.4%
Debt Fund — 28.4%
AdvisorShares Sage Core Reserves ETF††
(Cost $4,974,000)	50,000	$	4,967,500
MONEY MARKET FUND — 27.7%
BNY Mellon Cash Reserve, 0.01%(a) (Cost $4,828,070)	4,828,070		4,828,070
Total Investments — 56.1%
(Cost $9,802,070)			9,795,570
Other Assets in Excess of Liabilities — 43.9%			7,660,887
Net Assets — 100.0%		$	17,456,457

____________

ETF — Exchange Traded Fund

†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 the Financial Statements.

††Affiliated Company.

(a)Rate shown reflects the 7-day yield as of December 31, 2016.

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Debt Fund	28.4	%
Money Market Fund	27.7
Total Investments	56.1
Other Assets in Excess of Liabilities	43.9
Net Assets	100.0	%

Futures contracts outstanding as of December 31, 2016:

Type	Broker	Expiration Date	Number of Contracts		Value at Trade Date			Value at December 31, 2016			Unrealized Appreciation (Depreciation)
EURO Currency	Interactive Brokers LLC	March 2017	(132	)	$	(17,481,525	)	$	(17,447,100	)	$	34,425
Gold 100 Oz.	Interactive Brokers LLC	February 2017	153			18,282,253			17,621,010			(661,243	)
											$	(626,818	)

Cash posted as collateral from broker for futures contracts was $7,679,048 at December 31, 2016.

See accompanying Notes to Financial Statements.

18

ADVISORSHARES GARTMAN GOLD/YEN ETF

Schedule of Investments (Consolidated)†

December 31, 2016 (Unaudited)

Investments	Shares	Value
EXCHANGE TRADED FUND — 29.3%
Debt Fund — 29.3%
AdvisorShares Sage Core Reserves ETF††
(Cost $4,974,000)	50,000	$	4,967,500
MONEY MARKET FUND — 25.8%
BNY Mellon Cash Reserve, 0.01%(a) (Cost $4,385,124)	4,385,124		4,385,124
Total Investments — 55.1%
(Cost $9,359,124)			9,352,624
Other Assets in Excess of Liabilities — 44.9%			7,614,068
Net Assets — 100.0%		$	16,966,692

____________

ETF — Exchange Traded Fund

†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 the Financial Statements.

††Affiliated Company.

(a)Rate shown reflects the 7-day yield as of December 31, 2016.

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Debt Fund	29.3	%
Money Market Fund	25.8
Total Investments	55.1
Other Assets in Excess of Liabilities	44.9
Net Assets	100.0	%

Futures contracts outstanding as of December 31, 2016:

Type	Broker	Expiration Date	Number of Contracts		Value at Trade Date			Value at December 31, 2016			Unrealized Appreciation (Depreciation)
Gold 100 Oz.	Interactive Brokers LLC	February 2017	148		$	17,675,522		$	17,045,160		$	(630,362	)
Japanese Yen Currency	Interactive Brokers LLC	March 2017	(157	)		(17,107,270	)		(16,871,612	)		235,658
											$	(394,704	)

Cash posted as collateral from broker for futures contracts was $7,633,136 at December 31, 2016.

See accompanying Notes to Financial Statements.

19

ADVISORSHARES GLOBAL ECHO ETF

Schedule of Investments

December 31, 2016 (Unaudited)

Investments	Shares	Value
COMMON STOCKS — 66.3%
Apparel — 1.4%
VF Corp.	1,192	$	63,593
Auto Parts & Equipment — 1.4%
Autoliv, Inc. (Sweden)	570		64,495
Biotechnology — 3.6%
Bluebird Bio, Inc.*	490		30,233
Gilead Sciences, Inc.	865		61,943
Illumina, Inc.*	368		47,119
Ionis Pharmaceuticals, Inc.*	498		23,819
Total Biotechnology			163,114
Building Materials — 1.5%
Johnson Controls International PLC	1,675		68,993
Chemicals — 1.4%
Novozymes A/S (Denmark)(a)(b)	1,874		64,672
Commercial Services — 3.8%
Automatic Data Processing, Inc.	772		79,346
MarketAxess Holdings, Inc.	317		46,574
PayPal Holdings, Inc.*	1,200		47,364
Total Commercial Services			173,284
Computers — 1.4%
Apple, Inc.	545		63,122
Cosmetics/Personal Care — 3.0%
Procter & Gamble Co. (The)	747		62,808
Unilever NV (United Kingdom)(c)	1,174		48,204
Unilever PLC (United Kingdom)(a)(b)	569		23,158
Total Cosmetics/Personal Care			134,170
Diversified Financial Services — 1.7%
Mastercard, Inc., Class A	759		78,367
Electric — 0.7%
Ormat Technologies, Inc.	600		32,172
Electronics — 0.6%
Fortive Corp.	500		26,815
Energy – Alternate Sources — 1.1%
Vestas Wind Systems A/S (Denmark)(b)	2,314		50,260
Environmental Control — 1.6%
Tomra Systems ASA (Norway)(b)	6,972		73,302
Food — 6.6%
JM Smucker Co. (The)	662		84,776
Kroger Co. (The)	1,244		42,930

Investments	Shares	Value
COMMON STOCKS (continued)
Food (continued)
Nestle SA (Switzerland)(b)	1,095	$	78,555
Sprouts Farmers Market, Inc.*(a)	2,394		45,295
Whole Foods Market, Inc.	1,500		46,140
Total Food			297,696
Healthcare – Products — 6.3%
Abbott Laboratories	2,099		80,623
Boston Scientific Corp.*	2,910		62,943
Danaher Corp.	905		70,445
Hologic, Inc.*	1,781		71,454
Total Healthcare – Products			285,465
Household Products/Wares — 0.7%
SodaStream International Ltd. (Israel)*	750		29,602
Internet — 3.1%
Alphabet, Inc., Class A*	98		77,660
Facebook, Inc., Class A*	271		31,179
TripAdvisor, Inc.*	700		32,459
Total Internet			141,298
Machinery – Diversified — 3.1%
Rockwell Automation, Inc.	469		63,034
Xylem, Inc.	1,547		76,607
Total Machinery – Diversified			139,641
Miscellaneous Manufacturing — 1.6%
3M Co.	45		8,036
AptarGroup, Inc.	858		63,020
Total Miscellaneous Manufacturing			71,056
Pharmaceuticals — 4.5%
Novartis AG (Switzerland)(b)	1,107		80,634
Perrigo Co. PLC	737		61,340
Teva Pharmaceutical Industries Ltd. (Israel)(b)	1,696		61,480
Total Pharmaceuticals			203,454
Retail — 6.4%
Chipotle Mexican Grill, Inc.*	80		30,185
CVS Health Corp.	803		63,365
Kingfisher PLC (United Kingdom)(a)(b)	7,446		63,663
Starbucks Corp.	786		43,639
Target Corp.	638		46,083
TJX Cos., Inc. (The)	600		45,078
Total Retail			292,013

See accompanying Notes to Financial Statements.

20

ADVISORSHARES GLOBAL ECHO ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

Investments	Shares /Principal		Value
COMMON STOCKS (continued)
Semiconductors — 7.3%
Analog Devices, Inc.		967	$	70,224
Intel Corp.		1,737		63,001
IPG Photonics Corp.*		330		32,574
NXP Semiconductors NV (Netherlands)*		435		42,634
QUALCOMM, Inc.		950		61,940
Xilinx, Inc.		1,050		63,389
Total Semiconductors				333,762
Software — 2.1%
Fiserv, Inc.*		718		76,309
Microsoft Corp.		320		19,885
Total Software				96,194
Transportation — 1.4%
Canadian National Railway Co. (Canada)		940		63,356
Total Common Stocks
(Cost $2,874,970)				3,009,896
U.S. GOVERNMENT AGENCY SECURITIES — 13.9%
Federal National Mortgage Association, 3.02%, 11/01/31	$	14,979		14,739
Federal National Mortgage Association, 3.76%, 05/01/43		331,495		327,122
Government National Mortgage Association, Class AC, Series 2011-109, 3.25%, 04/16/43		51,190		51,586
Government National Mortgage Association, Class AC, Series 2015-160, 2.60%, 01/16/56@		145,002		142,045
Government National Mortgage Association, Class AE, Series 2015-41, 2.90%, 09/16/56@		94,789		95,303
Total U.S. Government Agency Securities
(Cost $662,369)				630,795
ASSET BACKED SECURITIES — 11.5%
SBA, 4.35%, 07/25/38@		104,426		118,376
SBA, 4.40%, 02/25/39@		132,375		151,697
SBAP, Class 1, Series 2009-20H, 4.45%, 08/01/29		140,929		150,169
Toyota Auto Receivables 2016-B Owner Trust, Class A2A, Series 2016-B, 1.02%, 10/15/18		25,000		24,987

Investments	Principal/ Shares		Value
ASSET BACKED SECURITIES (continued)
U.S. SBA, Class 1, Series 2010-10A, 4.11%, 03/10/20	$	76,647	$	79,653
Total Asset Backed Securities
(Cost $534,420)				524,882
MUNICIPAL BONDS — 2.8%
City & County of Honolulu Hi, 1.71%, 10/01/21		15,000		14,650
City of Atlanta GA, 1.98%, 01/01/18		15,000		15,013
Health & Educational Facilities Authority of The State of Missouri, 3.69%, 02/15/47		25,000		24,085
New York State Environmental Facilities Corp., 3.11%, 07/15/39		80,000		71,565
Total Municipal Bonds
(Cost $135,470)				125,313
MONEY MARKET FUNDS — 5.4%
BlackRock Liquidity Funds T-Fund Portfolio, Institutional Class, 0.36%(d)		140,164		140,164
Fidelity Institutional Money Market Government Portfolio – Class I, 0.39%(d)		106,339		106,338
Total Money Market Funds
(Cost $246,502)				246,502
REPURCHASE AGREEMENT — 1.9%(e)
HSBC Securities USA, Inc., dated 12/30/16, due 01/03/17, 0.45%, total to be received $85,257, (collateralized by various U.S. Government Agency Obligations, 0.88% – 3.00%, 05/15/17 – 05/15/46, totaling $86,631)
(Cost $85,255)		85,255		85,255
Total Investments — 101.8%
(Cost $4,538,986)				4,622,643
Liabilities in Excess of Other Assets — (1.8%)				(80,721	)
Net Assets — 100.0%			$	4,541,922

____________

PLC — Public Limited Company

@Variable rate instrument. The interest rate shown reflects the rate in effect at December 31, 2016.

*Non-income producing security.

See accompanying Notes to Financial Statements.

21

ADVISORSHARES GLOBAL ECHO ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

(a)All or a portion of security is on loan. The aggregate market value of the securities on loan is $108,745; the aggregate market value of the collateral held by the fund is $112,152. The aggregate market value of the collateral includes non-cash U.S. Treasury securities collateral having a value of $26,897.

(b)American Depositary Receipt.

(c)Registered Shares.

(d)Rate shown reflects the 7-day yield as of December 31, 2016.

(e)Collateral received from brokers for securities lending was invested in these short-term investments.

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Apparel	1.4	%
Asset Backed Securities	11.5
Auto Parts & Equipment	1.4
Biotechnology	3.6
Building Materials	1.5
Chemicals	1.4
Commercial Services	3.8
Computers	1.4
Cosmetics/Personal Care	3.0
Diversified Financial Services	1.7
Electric	0.7
Electronics	0.6
Energy – Alternate Sources	1.1
Environmental Control	1.6
Food	6.6
Healthcare – Products	6.3
Household Products/Wares	0.7
Internet	3.1
Machinery – Diversified	3.1
Miscellaneous Manufacturing	1.6
Municipal Bonds	2.8
Pharmaceuticals	4.5
Retail	6.4
Semiconductors	7.3
Software	2.1
Transportation	1.4
U.S. Government Agency Securities	13.9
Money Market Funds	5.4
Repurchase Agreement	1.9
Total Investments	101.8
Liabilities in Excess of Other Assets	(1.8	)
Net Assets	100.0	%

See accompanying Notes to Financial Statements.

22

ADVISORSHARES KIM KOREA EQUITY ETF

Schedule of Investments

December 31, 2016 (Unaudited)

Investments	Shares	Value
COMMON STOCKS — 95.1%
Advertising — 2.2%
Innocean Worldwide, Inc. (South Korea)	3,429	$	162,110
Aerospace/Defense — 1.0%
LIG Nex1 Co. Ltd. (South Korea)	1,093		72,849
Agriculture — 1.5%
Easy Bio, Inc. (South Korea)*	22,034		112,013
Airlines — 1.4%
Hanjin Kal Corp. (South Korea)*	8,362		106,273
Apparel — 1.8%
Handsome Co. Ltd. (South Korea)*	4,538		130,940
Auto Manufacturers — 1.6%
Hyundai Motor Co. (South Korea)	1,007		121,727
Auto Parts & Equipment — 3.4%
Halla Holdings Corp. (South Korea)*	1,219		61,162
Hyundai Mobis Co. Ltd. (South Korea)*	866		189,290
Total Auto Parts & Equipment			250,452
Banks — 1.6%
Industrial Bank of Korea (South Korea)*	11,345		119,292
Biotechnology — 1.2%
Samsung Biologics Co. Ltd. (South Korea)*	386		48,258
Seegene, Inc. (South Korea)*	1,395		40,367
Total Biotechnology			88,625
Chemicals — 7.3%
AK Holdings, Inc. (South Korea)*	1,486		68,899
KCC Corp. (South Korea)	461		137,216
Kumho Petrochemical Co. Ltd. (South Korea)*	1,818		123,428
LG Chem Ltd. (South Korea)*	372		80,387
Lotte Chemical Corp. (South Korea)*	453		138,398
Total Chemicals			548,328
Computers — 3.3%
Samsung SDS Co. Ltd. (South Korea)*	837		96,673
SK Holdings Co. Ltd. (South Korea)*	800		152,012
Total Computers			248,685

Investments	Shares	Value
COMMON STOCKS (continued)
Cosmetics/Personal Care — 1.5%
Amorepacific Corp. (South Korea)*	414	$	110,201
Distribution/Wholesale — 1.9%
Hanwha Corp. (South Korea)*	2,606		75,625
LG International Corp. (South Korea)*	2,599		62,942
Total Distribution/Wholesale			138,567
Diversified Financial Services — 5.0%
DGB Financial Group, Inc. (South Korea)*	18,131		146,663
KB Financial Group, Inc. (South Korea)*	4,199		148,797
KIWOOM Securities Co. Ltd. (South Korea)*	1,256		74,874
Total Diversified Financial Services			370,334
Electrical Components & Equipment — 1.4%
LS Corp. (South Korea)*	2,094		102,810
Engineering & Construction — 3.3%
Daelim Industrial Co. Ltd. (South Korea)*	1,893		136,513
Hyundai Engineering & Construction Co. Ltd. (South Korea)*	3,170		112,333
Total Engineering & Construction			248,846
Food — 3.3%
CJ CheilJedang Corp. (South Korea)*	477		141,188
Hyundai Greenfood Co. Ltd. (South Korea)*	8,552		109,042
Total Food			250,230
Gas — 2.3%
Korea Gas Corp. (South Korea)*	4,242		170,165
Healthcare – Products — 1.1%
Value Added Technologies Co. Ltd. (South Korea)*	1,322		39,568
Vieworks Co. Ltd. (South Korea)*	815		40,352
Total Healthcare – Products			79,920
Holding Companies – Diversified — 1.0%
CJ Corp. (South Korea)*	480		74,317
Home Furnishings — 0.9%
SM Entertainment Co. (South Korea)*	3,202		68,663

See accompanying Notes to Financial Statements.

23

ADVISORSHARES KIM KOREA EQUITY ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

Investments	Shares	Value
COMMON STOCKS (continued)
Insurance — 3.4%
KB Insurance Co. Ltd. (South Korea)*	6,789		146,988
Samsung Life Insurance Co. Ltd. (South Korea)*	1,150		107,116
Total Insurance			254,104
Internet — 2.7%
MDS Technology Co. Ltd. (South Korea)*	2,868	$	48,797
NAVER Corp. (South Korea)*	235		150,791
Total Internet			199,588
Iron/Steel — 2.0%
POSCO (South Korea)	696		148,385
Machinery – Diversified — 0.7%
SFA Engineering Corp. (South Korea)*	928		49,558
Media — 2.5%
CJ E&M Corp. (South Korea)*	3,245		190,487
Metal Fabricate/Hardware — 0.6%
Hyosung Corp. (South Korea)*	361		43,489
Mining — 2.1%
Korea Zinc Co. Ltd. (South Korea)*	392		154,165
Miscellaneous Manufacturing — 1.1%
Doosan Corp. (South Korea)	983		85,457
Oil & Gas — 2.1%
S-Oil Corp. (South Korea)	2,280		159,891
Pharmaceuticals — 3.9%
Dong-A Socio Holdings Co. Ltd. (South Korea)*	980		126,983
Green Cross Corp. (South Korea)*	944		122,709
Yuhan Corp. (South Korea)*	267		44,102
Total Pharmaceuticals			293,794
Retail — 2.8%
E-MART, Inc. (South Korea)*	308		46,667
Hyundai Department Store Co. Ltd. (South Korea)*	760		68,587
Samsung C&T Corp. (South Korea)*	889		92,374
Total Retail			207,628

Investments	Shares	Value
COMMON STOCKS (continued)
Semiconductors — 20.5%
Samsung Electronics Co. Ltd. (South Korea)	830	$	1,238,334
Silicon Works Co. Ltd. (South Korea)*	3,261		75,059
SK Hynix, Inc. (South Korea)*	4,378		162,027
TES Co. Ltd. (South Korea)	2,301		51,057
Total Semiconductors			1,526,477
Shipbuilding — 1.2%
Hyundai Heavy Industries Co. Ltd. (South Korea)*	745		89,748
Telecommunications — 1.5%
SK Telecom Co. Ltd. (South Korea)	614		113,873
Total Common Stocks
(Cost $7,314,703)			7,091,991
Total Investments — 95.1%
(Cost $7,314,703)			7,091,991
Other Assets in Excess of Liabilities — 4.9%			368,949
Net Assets — 100.0%		$	7,460,940

____________

*Non-income producing security.

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Advertising	2.2	%
Aerospace/Defense	1.0
Agriculture	1.5
Airlines	1.4
Apparel	1.8
Auto Manufacturers	1.6
Auto Parts & Equipment	3.4
Banks	1.6
Biotechnology	1.2
Chemicals	7.3
Computers	3.3
Cosmetics/Personal Care	1.5
Distribution/Wholesale	1.9
Diversified Financial Services	5.0
Electrical Components & Equipment	1.4
Engineering & Construction	3.3
Food	3.3
Gas	2.3

See accompanying Notes to Financial Statements.

24

ADVISORSHARES KIM KOREA EQUITY ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

SUMMARY OF SCHEDULE OF INVESTMENTS (continued)

	% of Net Assets
Healthcare – Products	1.1	%
Holding Companies – Diversified	1.0
Home Furnishings	0.9
Insurance	3.4
Internet	2.7
Iron/Steel	2.0
Machinery – Diversified	0.7
Media	2.5
Metal Fabricate/Hardware	0.6
Mining	2.1
Miscellaneous Manufacturing	1.1
Oil & Gas	2.1
Pharmaceuticals	3.9
Retail	2.8
Semiconductors	20.5
Shipbuilding	1.2
Telecommunications	1.5
Total Investments	95.1
Other Assets in Excess of Liabilities	4.9
Net Assets	100.0	%

See accompanying Notes to Financial Statements.

25

ADVISORSHARES MADRONA DOMESTIC ETF

Schedule of Investments

December 31, 2016 (Unaudited)

Investments	Shares	Value
COMMON STOCKS — 97.6%
Advertising — 0.3%
Interpublic Group of Cos., Inc. (The)	2,590	$	60,632
Omnicom Group, Inc.	275		23,405
Total Advertising			84,037
Aerospace/Defense — 1.6%
Arconic, Inc.	617		11,439
Boeing Co. (The)	806		125,478
General Dynamics Corp.	142		24,518
Harris Corp.	177		18,137
L-3 Communications Holdings,  Inc.	168		25,554
Lockheed Martin Corp.	73		18,245
Northrop Grumman Corp.	89		20,700
Raytheon Co.	158		22,436
Rockwell Collins, Inc.	772		71,611
TransDigm Group, Inc.	196		48,796
United Technologies Corp.	314		34,421
Total Aerospace/Defense			421,335
Agriculture — 0.7%
Altria Group, Inc.	305		20,624
Archer-Daniels-Midland Co.	1,839		83,951
Philip Morris International, Inc.	602		55,077
Reynolds American, Inc.	578		32,391
Total Agriculture			192,043
Airlines — 0.8%
Delta Air Lines, Inc.	2,743		134,928
Southwest Airlines Co.	1,367		68,131
Total Airlines			203,059
Apparel — 1.7%
Hanesbrands, Inc.(a)	7,083		152,781
Michael Kors Holdings Ltd.*(a)	2,540		109,169
NIKE, Inc., Class B	1,240		63,029
Ralph Lauren Corp.	285		25,741
Under Armour, Inc., Class C*	1,222		30,758
VF Corp.	898		47,908
Total Apparel			429,386
Auto Manufacturers — 1.3%
Ford Motor Co.	10,239		124,199
General Motors Co.	4,145		144,412
PACCAR, Inc.	1,056		67,478
Total Auto Manufacturers			336,089
Auto Parts & Equipment — 1.6%
BorgWarner, Inc.	3,022		119,188
Delphi Automotive PLC	2,023		136,249

Investments	Shares	Value
COMMON STOCKS (continued)
Auto Parts & Equipment (continued)
Goodyear Tire & Rubber Co. (The)	4,761	$	146,972
Total Auto Parts & Equipment			402,409
Banks — 3.0%
Bank of America Corp.	622		13,746
Bank of New York Mellon Corp. (The)	1,368		64,816
BB&T Corp.	355		16,692
Capital One Financial Corp.	571		49,814
Citigroup, Inc.	538		31,973
Citizens Financial Group, Inc.	3,678		131,047
Comerica, Inc.	211		14,371
Fifth Third Bancorp	404		10,896
Goldman Sachs Group, Inc. (The)	386		92,428
Huntington Bancshares, Inc.	1,307		17,279
JPMorgan Chase & Co.	166		14,324
KeyCorp	920		16,809
M&T Bank Corp.	84		13,140
Morgan Stanley	789		33,335
Northern Trust Corp.	458		40,785
PNC Financial Services Group, Inc. (The)	201		23,509
Regions Financial Corp.	1,896		27,227
State Street Corp.	531		41,269
SunTrust Banks, Inc.	438		24,024
US Bancorp	360		18,493
Wells Fargo & Co.	844		46,513
Zions Bancorporation(a)	506		21,778
Total Banks			764,268
Beverages — 0.9%
Brown-Forman Corp., Class B	274		12,308
Coca-Cola Co. (The)	318		13,184
Constellation Brands, Inc., Class A	477		73,129
Dr Pepper Snapple Group, Inc.	405		36,721
Molson Coors Brewing Co., Class B	186		18,100
Monster Beverage Corp.*	1,604		71,122
PepsiCo, Inc.	173		18,101
Total Beverages			242,665
Biotechnology — 2.1%
Alexion Pharmaceuticals, Inc.*	1,043		127,611
Amgen, Inc.	289		42,255
Biogen, Inc.*	338		95,850
Celgene Corp.*	1,234		142,835
Illumina, Inc.*(a)	148		18,950
Regeneron Pharmaceuticals, Inc.*	209		76,722

See accompanying Notes to Financial Statements.

26

ADVISORSHARES MADRONA DOMESTIC ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

Investments	Shares	Value
COMMON STOCKS (continued)
Biotechnology (continued)
Vertex Pharmaceuticals, Inc.*	586	$	43,171
Total Biotechnology			547,394
Building Materials — 2.0%
Fortune Brands Home & Security, Inc.	1,716		91,737
Johnson Controls International PLC	2,079		85,634
Martin Marietta Materials, Inc.	470		104,119
Masco Corp.	3,756		118,765
Vulcan Materials Co.	868		108,630
Total Building Materials			508,885
Chemicals — 1.7%
Albemarle Corp.	164		14,117
CF Industries Holdings, Inc.	479		15,079
Dow Chemical Co. (The)	395		22,602
E.I. du Pont de Nemours & Co.	231		16,955
Eastman Chemical Co.	807		60,695
FMC Corp.	648		36,651
International Flavors & Fragrances, Inc.	168		19,796
LyondellBasell Industries NV, Class A	817		70,082
Monsanto Co.	290		30,511
Mosaic Co. (The)(a)	406		11,908
PPG Industries, Inc.	391		37,051
Praxair, Inc.	478		56,017
Sherwin-Williams Co. (The)	156		41,923
Total Chemicals			433,387
Commercial Services — 3.3%
Automatic Data Processing, Inc.	238		24,462
Cintas Corp.	216		24,961
Ecolab, Inc.	323		37,862
Equifax, Inc.	442		52,258
Global Payments, Inc.	929		64,482
H&R Block, Inc.	3,417		78,557
Moody’s Corp.	379		35,728
Nielsen Holdings PLC	1,411		59,191
PayPal Holdings, Inc.*	739		29,168
Quanta Services, Inc.*	810		28,228
Robert Half International, Inc.	1,533		74,780
S&P Global, Inc.	534		57,426
Total System Services, Inc.	1,460		71,584
United Rentals, Inc.*	1,203		127,013
Verisk Analytics, Inc.*	330		26,786

Investments	Shares	Value
COMMON STOCKS (continued)
Commercial Services (continued)
Western Union Co. (The)	2,164	$	47,002
Total Commercial Services			839,488
Computers — 2.3%
Accenture PLC, Class A	267		31,274
Apple, Inc.	646		74,820
Cognizant Technology Solutions Corp., Class A*	2,115		118,503
Hewlett Packard Enterprise Co.	1,800		41,652
HP, Inc.	1,059		15,716
International Business Machines Corp.	79		13,113
NetApp, Inc.	3,070		108,279
Seagate Technology PLC	1,985		75,767
Teradata Corp.*	3,179		86,373
Western Digital Corp.	440		29,898
Total Computers			595,395
Cosmetics/Personal Care — 0.3%
Colgate-Palmolive Co.	377		24,671
Estee Lauder Cos., Inc. (The), Class A	372		28,454
Procter & Gamble Co. (The)	188		15,807
Total Cosmetics/Personal Care			68,932
Distribution/Wholesale — 0.9%
Fastenal Co.	1,071		50,316
LKQ Corp.*	4,063		124,531
W.W. Grainger, Inc.(a)	257		59,688
Total Distribution/Wholesale			234,535
Diversified Financial Services — 5.6%
Affiliated Managers Group, Inc.*	897		130,334
Alliance Data Systems Corp.	632		144,412
American Express Co.	475		35,188
Ameriprise Financial, Inc.	1,328		147,328
BlackRock, Inc.	178		67,736
Charles Schwab Corp. (The)	1,831		72,270
CME Group, Inc.	209		24,108
Discover Financial Services	773		55,726
E*TRADE Financial Corp.*	3,129		108,420
Franklin Resources, Inc.	1,795		71,046
Intercontinental Exchange, Inc.	991		55,912
Invesco Ltd.	3,610		109,528
Legg Mason, Inc.	4,931		147,486
Mastercard, Inc., Class A	488		50,386
Nasdaq, Inc.	723		48,528

See accompanying Notes to Financial Statements.

27

ADVISORSHARES MADRONA DOMESTIC ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

Investments	Shares	Value
COMMON STOCKS (continued)
Diversified Financial Services (continued)
Synchrony Financial	565	$	20,493
T. Rowe Price Group, Inc.	805		60,584
Visa, Inc., Class A	918		71,622
Total Diversified Financial Services			1,421,107
Electric — 1.7%
AES Corp. (The)	3,908		45,411
Alliant Energy Corp.	413		15,648
Ameren Corp.	319		16,735
American Electric Power Co., Inc.	243		15,299
CMS Energy Corp.	470		19,561
Consolidated Edison, Inc.	164		12,083
Dominion Resources, Inc.	210		16,084
DTE Energy Co.	166		16,353
Duke Energy Corp.	186		14,437
Edison International	211		15,190
Eversource Energy	316		17,453
Exelon Corp.	432		15,332
FirstEnergy Corp.	368		11,397
NextEra Energy, Inc.	148		17,680
NRG Energy, Inc.	3,291		40,348
PG&E Corp.	220		13,369
Pinnacle West Capital Corp.	179		13,967
PPL Corp.	392		13,348
Public Service Enterprise Group, Inc.	821		36,025
SCANA Corp.	220		16,122
Southern Co. (The)	288		14,167
WEC Energy Group, Inc.	305		17,888
Xcel Energy, Inc.	394		16,036
Total Electric			429,933
Electrical Components & Equipment — 0.7%
Acuity Brands, Inc.	435		100,424
AMETEK, Inc.	1,257		61,090
Emerson Electric Co.	427		23,806
Total Electrical Components & Equipment			185,320
Electronics — 1.5%
Agilent Technologies, Inc.	663		30,206
Allegion PLC	1,097		70,208
Amphenol Corp., Class A	239		16,061
Corning, Inc.	676		16,406
FLIR Systems, Inc.	2,094		75,782
Garmin Ltd.(a)	291		14,111
Honeywell International, Inc.	356		41,243

Investments	Shares	Value
COMMON STOCKS (continued)
Electronics (continued)
Mettler-Toledo International, Inc.*	59	$	24,695
PerkinElmer, Inc.	714		37,235
TE Connectivity Ltd.	586		40,598
Waters Corp.*	186		24,996
Total Electronics			391,541
Engineering & Construction — 0.5%
Fluor Corp.	1,831		96,164
Jacobs Engineering Group, Inc.*	651		37,107
Total Engineering & Construction			133,271
Environmental Control — 0.4%
Republic Services, Inc.	324		18,484
Stericycle, Inc.*	835		64,328
Waste Management, Inc.	325		23,046
Total Environmental Control			105,858
Food — 2.3%
Campbell Soup Co.	229		13,848
Conagra Brands, Inc.	1,156		45,720
General Mills, Inc.	426		26,314
Hershey Co. (The)	170		17,583
Hormel Foods Corp.	630		21,930
JM Smucker Co. (The)	170		21,770
Kellogg Co.	244		17,985
Kraft Heinz Co. (The)	1,466		128,011
Kroger Co. (The)	1,146		39,549
McCormick & Co., Inc.	204		19,039
Mondelez International, Inc., Class A	1,064		47,167
Safeway, Inc PDC, LLC CVR*(b)	447		0
Safeway, Inc SCRP. CVR*(b)	447		0
Sysco Corp.	326		18,051
Tyson Foods, Inc., Class A	2,494		153,830
Whole Foods Market, Inc.	478		14,703
Total Food			585,500
Forest Products & Paper — 0.2%
International Paper Co.	943		50,036
Gas — 0.3%
CenterPoint Energy, Inc.	643		15,843
NiSource, Inc.	854		18,908
Sempra Energy	398		40,055
Total Gas			74,806

See accompanying Notes to Financial Statements.

28

ADVISORSHARES MADRONA DOMESTIC ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

Investments	Shares	Value
COMMON STOCKS (continued)
Hand/Machine Tools — 0.7%
Snap-on, Inc.	777	$	133,077
Stanley Black & Decker, Inc.	419		48,055
Total Hand/Machine Tools			181,132
Healthcare – Products — 4.1%
Abbott Laboratories	1,182		45,401
Baxter International, Inc.	907		40,216
Becton Dickinson and Co.	264		43,705
Boston Scientific Corp.*	3,305		71,487
C.R. Bard, Inc.	170		38,192
Cooper Cos., Inc. (The)	387		67,698
Danaher Corp.	612		47,638
DENTSPLY SIRONA, Inc.	585		33,772
Edwards Lifesciences Corp.*	713		66,808
Henry Schein, Inc.*	243		36,866
Hologic, Inc.*	973		39,037
Intuitive Surgical, Inc.*	44		27,903
Medtronic PLC	496		35,330
Patterson Cos., Inc.	1,404		57,606
St. Jude Medical, Inc.	595		47,713
Stryker Corp.	333		39,897
Thermo Fisher Scientific, Inc.	687		96,936
Varian Medical Systems, Inc.*(a)	1,162		104,324
Zimmer Biomet Holdings, Inc.	994		102,581
Total Healthcare – Products			1,043,110
Healthcare – Services — 3.8%
Aetna, Inc.	456		56,548
Anthem, Inc.	476		68,434
Centene Corp.*	2,513		142,010
Cigna Corp.	502		66,962
Davita, Inc.*	1,018		65,356
Envision Healthcare Corp.*	1,861		117,783
HCA Holdings, Inc.*	1,787		132,274
Humana, Inc.	341		69,574
Laboratory Corp. of America Holdings*	610		78,312
Quest Diagnostics, Inc.	415		38,138
UnitedHealth Group, Inc.	617		98,745
Universal Health Services, Inc., Class B	374		39,786
Total Healthcare – Services			973,922
Holding Companies – Diversified — 0.1%
Leucadia National Corp.	838		19,483

Investments	Shares	Value
COMMON STOCKS (continued)
Home Builders — 1.4%
D.R. Horton, Inc.	4,506	$	123,149
Lennar Corp., Class A	1,753		75,256
PulteGroup, Inc.	8,022		147,445
Total Home Builders			345,850
Home Furnishings — 1.4%
Harman International Industries, Inc.	1,157		128,612
Leggett & Platt, Inc.(a)	1,395		68,187
Whirlpool Corp.	858		155,959
Total Home Furnishings			352,758
Household Products/Wares — 0.5%
Avery Dennison Corp.	837		58,774
Church & Dwight Co., Inc.	427		18,869
Clorox Co. (The)	141		16,923
Kimberly-Clark Corp.	197		22,482
Total Household Products/Wares			117,048
Housewares — 0.3%
Newell Brands, Inc.	1,777		79,343
Insurance — 5.5%
Aflac, Inc.	400		27,840
Allstate Corp. (The)	1,093		81,013
American International Group, Inc.	1,694		110,635
Aon PLC	512		57,103
Arthur J Gallagher & Co.	720		37,411
Assurant, Inc.	362		33,615
Berkshire Hathaway, Inc., Class B*	175		28,522
Chubb Ltd.	695		91,823
Cincinnati Financial Corp.	237		17,953
Hartford Financial Services Group, Inc. (The)	1,927		91,822
Lincoln National Corp.	1,429		94,700
Marsh & McLennan Cos., Inc.	799		54,004
MetLife, Inc.	1,731		93,284
Principal Financial Group, Inc.	1,884		109,008
Progressive Corp. (The)	1,079		38,305
Prudential Financial, Inc.	1,241		129,139
Torchmark Corp.	407		30,020
Travelers Cos., Inc. (The)	544		66,597
Unum Group	1,424		62,556
Willis Towers Watson PLC(a)	657		80,338
XL Group Ltd (Ireland)	2,162		80,556
Total Insurance			1,416,244

See accompanying Notes to Financial Statements.

29

ADVISORSHARES MADRONA DOMESTIC ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

Investments	Shares	Value
COMMON STOCKS (continued)
Internet — 3.2%
Alphabet, Inc., Class A*	134	$	106,188
Alphabet, Inc., Class C*	143		110,370
Amazon.com, Inc.*	20		14,998
eBay, Inc.*	1,716		50,948
Expedia, Inc.	1,040		117,811
F5 Networks, Inc.*	453		65,558
Facebook, Inc., Class A*	1,149		132,193
Netflix, Inc.*	83		10,275
Priceline Group, Inc. (The)*	71		104,090
Symantec Corp.	1,196		28,573
TripAdvisor, Inc.*(a)	1,314		60,930
VeriSign, Inc.*(a)	223		16,964
Total Internet			818,898
Iron/Steel — 0.1%
Nucor Corp.	285		16,963
Leisure Time — 1.0%
Harley-Davidson, Inc.	1,787		104,254
Royal Caribbean Cruises Ltd.	1,782		146,195
Total Leisure Time			250,449
Lodging — 0.4%
Marriott International, Inc., Class A	340		28,111
Wyndham Worldwide Corp.	786		60,027
Wynn Resorts Ltd.(a)	161		13,928
Total Lodging			102,066
Machinery – Construction & Mining — 0.1%
Caterpillar, Inc.	162		15,024
Machinery – Diversified — 0.8%
Cummins, Inc.	587		80,225
Deere & Co.	125		12,880
Flowserve Corp.	919		44,158
Rockwell Automation, Inc.	123		16,531
Roper Technologies, Inc.	166		30,391
Xylem, Inc.	566		28,029
Total Machinery – Diversified			212,214
Media — 4.0%
CBS Corp., Class B	2,098		133,475
Charter Communications, Inc., Class A*	55		15,836
Discovery Communications, Inc., Class A*(a)	4,757		130,389
Discovery Communications, Inc., Class C*	4,982		133,418

Investments	Shares	Value
COMMON STOCKS (continued)
Media (continued)
News Corp., Class A	1,211	$	13,878
News Corp., Class B	1,153		13,605
Scripps Networks Interactive, Inc., Class A	1,456		103,915
TEGNA, Inc.	6,926		148,147
Time Warner, Inc.	766		73,942
Twenty-First Century Fox, Inc., Class A	3,927		110,113
Twenty-First Century Fox, Inc., Class B	3,963		107,992
Walt Disney Co. (The)	349		36,373
Total Media			1,021,083
Mining — 0.5%
Freeport-McMoRan, Inc.*	10,639		140,328
Miscellaneous Manufacturing — 1.3%
3M Co.	198		35,357
Dover Corp.	443		33,194
Eaton Corp. PLC	951		63,803
General Electric Co.	1,287		40,669
Illinois Tool Works, Inc.	113		13,838
Ingersoll-Rand PLC	432		32,417
Parker-Hannifin Corp.	186		26,040
Pentair PLC (United Kingdom)	945		52,986
Textron, Inc.	892		43,316
Total Miscellaneous Manufacturing			341,620
Office/Business Equipment — 1.1%
Pitney Bowes, Inc.	9,338		141,844
Xerox Corp.	15,462		134,983
Total Office/Business Equipment			276,827
Oil & Gas — 0.7%
Cabot Oil & Gas Corp.	637		14,880
Chevron Corp.	859		101,104
Devon Energy Corp.	235		10,732
Marathon Petroleum Corp.	263		13,242
Newfield Exploration Co.*	263		10,652
Phillips 66	202		17,455
Valero Energy Corp.	171		11,683
Total Oil & Gas			179,748
Oil & Gas Services — 0.0%**
Schlumberger Ltd.	138		11,585
Packaging & Containers — 1.1%
Ball Corp.	1,027		77,097

See accompanying Notes to Financial Statements.

30

ADVISORSHARES MADRONA DOMESTIC ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

Investments	Shares	Value
COMMON STOCKS (continued)
Packaging & Containers (continued)
Owens-Illinois, Inc.*	8,354	$	145,443
Sealed Air Corp.	1,061		48,106
WestRock Co.	207		10,509
Total Packaging & Containers			281,155
Pharmaceuticals — 6.1%
AbbVie, Inc.	2,315		144,965
Allergan PLC*	640		134,406
AmerisourceBergen Corp.	980		76,626
Bristol-Myers Squibb Co.	1,457		85,147
Cardinal Health, Inc.	1,606		115,584
Eli Lilly & Co.	1,085		79,802
Endo International PLC*	10,286		169,411
Express Scripts Holding Co.*	1,834		126,161
Johnson & Johnson	177		20,392
Mallinckrodt PLC*	2,552		127,141
McKesson Corp.	909		127,669
Mead Johnson Nutrition Co.	274		19,388
Merck & Co., Inc.	691		40,679
Mylan NV*	3,885		148,213
Perrigo Co. PLC	684		56,929
Pfizer, Inc.	1,436		46,641
Zoetis, Inc.	679		36,347
Total Pharmaceuticals			1,555,501
Pipelines — 0.2%
Kinder Morgan, Inc.	574		11,888
ONEOK, Inc.	192		11,023
Spectra Energy Corp.	333		13,683
Williams Cos., Inc. (The)	524		16,317
Total Pipelines			52,911
Real Estate — 0.4%
CBRE Group, Inc., Class A*	3,664		115,379
Real Estate Investment Trust — 1.1%
American Tower Corp.	200		21,136
AvalonBay Communities, Inc.	73		12,932
Boston Properties, Inc.	95		11,949
Crown Castle International Corp.	126		10,933
Equinix, Inc.	37		13,224
Equity Residential	184		11,842
Essex Property Trust, Inc.	47		10,928
Extra Space Storage, Inc.	212		16,375
Federal Realty Investment Trust	75		10,658
General Growth Properties, Inc.	445		11,116

Investments	Shares	Value
COMMON STOCKS (continued)
Real Estate Investment Trust (continued)
HCP, Inc.	423	$	12,572
Host Hotels & Resorts, Inc.	624		11,756
Iron Mountain, Inc.	400		12,992
Kimco Realty Corp.	451		11,347
Macerich Co. (The)	152		10,768
Mid-America Apartment Communities, Inc.	131		12,828
Prologis, Inc.	199		10,505
Public Storage	57		12,740
Simon Property Group, Inc.	78		13,858
SL Green Realty Corp.	97		10,432
Ventas, Inc.	179		11,191
Welltower, Inc.	169		11,311
Weyerhaeuser Co.	367		11,043
Total Real Estate Investment Trust			284,436
Retail — 8.3%
Advance Auto Parts, Inc.	136		23,000
AutoNation, Inc.*	1,887		91,802
AutoZone, Inc.*	86		67,922
Bed Bath & Beyond, Inc.	1,816		73,802
Best Buy Co., Inc.	1,882		80,305
CarMax, Inc.*(a)	1,527		98,323
Chipotle Mexican Grill, Inc.*(a)	48		18,111
Coach, Inc.	1,476		51,689
Costco Wholesale Corp.	115		18,413
CVS Health Corp.	1,479		116,708
Darden Restaurants, Inc.	526		38,251
Dollar General Corp.	984		72,885
Dollar Tree, Inc.*	883		68,150
Foot Locker, Inc.	821		58,201
Gap, Inc. (The)	4,106		92,139
Genuine Parts Co.	130		12,420
Home Depot, Inc. (The)	634		85,007
Kohl’s Corp.	699		34,517
L Brands, Inc.	771		50,763
Lowe’s Cos., Inc.	1,676		119,197
Macy’s, Inc.	1,680		60,161
McDonald’s Corp.	263		32,012
Nordstrom, Inc.	322		15,433
O’Reilly Automotive, Inc.*	214		59,580
PVH Corp.	638		57,573
Ross Stores, Inc.	491		32,210
Signet Jewelers Ltd.	1,070		100,858

See accompanying Notes to Financial Statements.

31

ADVISORSHARES MADRONA DOMESTIC ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

Investments	Shares	Value
COMMON STOCKS (continued)
Retail (continued)
Staples, Inc.	1,615	$	14,616
Starbucks Corp.	562		31,202
Target Corp.	414		29,903
Tiffany & Co.(a)	360		27,875
TJX Cos., Inc. (The)	405		30,428
Tractor Supply Co.	689		52,233
Ulta Salon, Cosmetics & Fragrance, Inc.*	216		55,067
Urban Outfitters, Inc.*	2,988		85,098
Walgreens Boots Alliance, Inc.	755		62,484
Wal-Mart Stores, Inc.	206		14,239
Yum! Brands, Inc.	1,308		82,836
Total Retail			2,115,413
Savings & Loans — 0.1%
People’s United Financial, Inc.	1,241		24,026
Semiconductors — 4.6%
Analog Devices, Inc.	425		30,863
Applied Materials, Inc.	4,451		143,634
Broadcom Ltd. (Singapore)	783		138,411
Intel Corp.	2,111		76,566
KLA-Tencor Corp.	1,767		139,028
Lam Research Corp.	1,231		130,154
Linear Technology Corp.	285		17,770
Microchip Technology, Inc.(a)	1,120		71,848
NVIDIA Corp.	137		14,623
Qorvo, Inc.*	2,705		142,635
QUALCOMM, Inc.	1,291		84,173
Skyworks Solutions, Inc.	1,919		143,272
Texas Instruments, Inc.	432		31,523
Xilinx, Inc.	275		16,602
Total Semiconductors			1,181,102
Software — 3.1%
Activision Blizzard, Inc.	3,892		140,540
Adobe Systems, Inc.*	808		83,184
Akamai Technologies, Inc.*	717		47,810
CA, Inc.	799		25,384
Cerner Corp.*	1,712		81,097
Citrix Systems, Inc.*	577		51,532
Dun & Bradstreet Corp. (The)	110		13,345
Electronic Arts, Inc.*(a)	645		50,800
Fidelity National Information Services, Inc.	882		66,715
Fiserv, Inc.*	355		37,729

Investments	Shares	Value
COMMON STOCKS (continued)
Software (continued)
Intuit, Inc.	474	$	54,325
Microsoft Corp.	402		24,980
Oracle Corp.	1,399		53,792
Paychex, Inc.	274		16,681
Red Hat, Inc.*	434		30,250
salesforce.com, Inc.*	315		21,565
Total Software			799,729
Telecommunications — 1.0%
AT&T, Inc.	424		18,033
Cisco Systems, Inc.	1,573		47,536
Juniper Networks, Inc.	4,447		125,672
Level 3 Communications, Inc.*	636		35,845
Motorola Solutions, Inc.	251		20,805
Verizon Communications, Inc.	328		17,509
Total Telecommunications			265,400
Textiles — 0.4%
Mohawk Industries, Inc.*	490		97,843
Toys/Games/Hobbies — 0.4%
Hasbro, Inc.(a)	701		54,531
Mattel, Inc.	1,535		42,289
Total Toys/Games/Hobbies			96,820
Transportation — 2.0%
C.H. Robinson Worldwide, Inc.	431		31,575
CSX Corp.	580		20,839
Expeditors International of Washington, Inc.	495		26,215
FedEx Corp.	441		82,114
JB Hunt Transport Services, Inc.	551		53,486
Kansas City Southern	894		75,856
Norfolk Southern Corp.	318		34,366
Ryder System, Inc.	1,513		112,628
Union Pacific Corp.	388		40,228
United Parcel Service, Inc., Class B	233		26,711
Total Transportation			504,018
Water — 0.1%
American Water Works Co., Inc.	247		17,873
Total Common Stocks (Cost $23,512,841)			24,987,980
MONEY MARKET FUND — 2.5%
BlackRock Liquidity Funds FedFund Portfolio, 0.42%(c) (Cost $640,094)	640,094		640,094

See accompanying Notes to Financial Statements.

32

ADVISORSHARES MADRONA DOMESTIC ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

Investments	Principal		Value
REPURCHASE AGREEMENT — 1.0%(d)
RBC Dominion Securities, Inc., dated 12/30/16, due 01/03/17, 0.52%, total to be received $249,271, (collateralized by various U.S. Government Agency Obligations, 0.88% – 7.00%, 02/13/17 – 01/01/47, totaling $253,530)
(Cost $249,264)	$	249,264	$	249,264
Total Investments — 101.1%
(Cost $24,402,199)				25,877,338
Liabilities in Excess of Other Assets — (1.1%)				(280,087	)
Net Assets — 100.0%			$	25,597,251

____________

CVR — Contingent Value Rights

PLC — Public Limited Company

*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 $1,002,807; the aggregate market value of the collateral held by the fund is $1,023,985. The aggregate market value of the collateral includes non-cash U.S. Treasury securities collateral having a value of $774,721.

(b)Security fair valued as determined in good faith in accordance with the procedures established by the Board of Trustees.

(c)Rate shown reflects the 7-day yield as of December 31, 2016.

(d)Collateral received from brokers for securities lending was invested in these short-term investments.

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Advertising	0.3	%
Aerospace/Defense	1.6
Agriculture	0.7
Airlines	0.8
Apparel	1.7
Auto Manufacturers	1.3
Auto Parts & Equipment	1.6
Banks	3.0
Beverages	0.9
Biotechnology	2.1
Building Materials	2.0

SUMMARY OF SCHEDULE OF INVESTMENTS (continued)

	% of Net Assets
Chemicals	1.7	%
Commercial Services	3.3
Computers	2.3
Cosmetics/Personal Care	0.3
Distribution/Wholesale	0.9
Diversified Financial Services	5.6
Electric	1.7
Electrical Components & Equipment	0.7
Electronics	1.5
Engineering & Construction	0.5
Environmental Control	0.4
Food	2.3
Forest Products & Paper	0.2
Gas	0.3
Hand/Machine Tools	0.7
Healthcare – Products	4.1
Healthcare – Services	3.8
Holding Companies – Diversified	0.1
Home Builders	1.4
Home Furnishings	1.4
Household Products/Wares	0.5
Housewares	0.3
Insurance	5.5
Internet	3.2
Iron/Steel	0.1
Leisure Time	1.0
Lodging	0.4
Machinery – Construction & Mining	0.1
Machinery – Diversified	0.8
Media	4.0
Mining	0.5
Miscellaneous Manufacturing	1.3
Office/Business Equipment	1.1
Oil & Gas	0.7
Oil & Gas Services	0.0	**
Packaging & Containers	1.1
Pharmaceuticals	6.1
Pipelines	0.2
Real Estate	0.4
Real Estate Investment Trust	1.1
Retail	8.3
Savings & Loans	0.1

See accompanying Notes to Financial Statements.

33

ADVISORSHARES MADRONA DOMESTIC ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

SUMMARY OF SCHEDULE OF INVESTMENTS (continued)

	% of Net Assets
Semiconductors	4.6	%
Software	3.1
Telecommunications	1.0
Textiles	0.4
Toys/Games/Hobbies	0.4
Transportation	2.0
Water	0.1
Money Market Fund	2.5
Repurchase Agreement	1.0
Total Investments	101.1
Liabilities in Excess of Other Assets	(1.1	)
Net Assets	100.0	%

____________

**Less than 0.05%.

See accompanying Notes to Financial Statements.

34

ADVISORSHARES MADRONA GLOBAL BOND ETF

Schedule of Investments

December 31, 2016 (Unaudited)

Investments	Shares	Value
EXCHANGE TRADED FUNDS — 99.2%
Asset Allocation Fund — 6.9%
SPDR Bloomberg Barclays Convertible Securities ETF	28,671	$	1,308,831
Debt Fund — 92.3%
AdvisorShares Peritus High Yield ETF†	58,388		2,081,532
iShares iBoxx $ Investment Grade Corporate Bond ETF	19,083		2,236,146
PIMCO 1 - 5 Year U.S. TIPS Index ETF	14,185		744,287
PowerShares Emerging Markets Sovereign Debt Portfolio	39,879		1,126,981
PowerShares Financial Preferred Portfolio(a)	108,450		1,947,762
PowerShares Fundamental Investment Grade Corporate Bond Portfolio(a)	29,383		741,042
PowerShares International Corporate Bond Portfolio	37,505		918,497
PowerShares National AMT-Free Municipal Bond Portfolio(a)	22,761		566,521
PowerShares Senior Loan Portfolio	63,801		1,490,391
SPDR Bloomberg Barclays High Yield Bond ETF	15,407		561,585
SPDR Nuveen S&P High Yield Municipal Bond ETF(a)	15,183		849,793
Vanguard Intermediate-Term Government Bond ETF	8,663		553,739
Vanguard Long-Term Government Bond ETF	7,537		555,402
Vanguard Mortgage-Backed Securities ETF	35,300		1,845,837
WisdomTree Emerging Markets Corporate Bond Fund(a)	16,084		1,118,964
Total Debt Fund			17,338,479
Total Exchange Traded Funds
(Cost $18,908,071)			18,647,310
MONEY MARKET FUND — 0.8%
BlackRock Liquidity Funds FedFund Portfolio, 0.42%(b) (Cost $151,571)	151,571		151,571

Investments	Principal		Value
REPURCHASE AGREEMENTS — 12.0%(c)
Citigroup Global Markets, Inc., dated 12/30/16, due 01/03/17, 0.53%, total to be received $523,427, (collateralized by various U.S. Government Agency Obligations, 2.00% – 8.50%, 12/01/17 – 01/01/47, totaling $532,211)	$	523,412	$	523,412
JP Morgan Securities LLC, dated 12/30/16, due 01/03/17, 0.50%, total to be received $155,125, (collateralized by various U.S. Government Agency Obligations, 0.00% – 1.38%, 04/13/17 – 08/31/21, totaling $157,829)		155,121		155,121
Merrill Lynch Pierce Fenner & Smith, Inc., dated 12/30/16, due 01/03/17, 0.50%, total to be received $523,427, (collateralized by various U.S. Government Agency Obligations, 1.74% – 6.00%, 08/01/22 – 01/15/49, totaling $532,494)		523,412		523,412
Mizuho Securities USA, Inc., dated 12/30/16, due 01/03/17, 0.48%, total to be received $523,426, (collateralized by various U.S. Government Agency Obligations, 2.00% – 6.50%, 07/01/24 – 09/20/46, totaling $532,537)		523,412		523,412
RBC Dominion Securities, Inc., dated 12/30/16, due 01/03/17, 0.52%, total to be received $523,427, (collateralized by various U.S. Government Agency Obligations, 0.88% – 7.00%, 02/13/17 – 01/01/47, totaling $532,370)		523,412		523,412
Total Repurchase Agreements
(Cost $2,248,769)				2,248,769
Total Investments — 112.0%
(Cost $21,308,411)				21,047,650
Liabilities in Excess of Other Assets — (12.0%)				(2,260,622	)
Net Assets — 100.0%			$	18,787,028

See accompanying Notes to Financial Statements.

35

ADVISORSHARES MADRONA GLOBAL BOND ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

____________

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 $2,184,624; the aggregate market value of the collateral held by the fund is $2,248,769.

(b)Rate shown reflects the 7-day yield as of December 31, 2016.

(c)Collateral received from brokers for securities lending was invested in these short-term investments.

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Asset Allocation Fund	6.9	%
Debt Fund	92.3
Money Market Fund	0.8
Repurchase Agreements	12.0
Total Investments	112.0
Liabilities in Excess of Other Assets	(12.0	)
Net Assets	100.0	%

See accompanying Notes to Financial Statements.

36

ADVISORSHARES MADRONA INTERNATIONAL ETF

Schedule of Investments

December 31, 2016 (Unaudited)

Investments	Shares	Value
COMMON STOCKS — 98.3%
ARGENTINA — 0.5%
Banco Macro SA(a)	306	$	19,691
Grupo Financiero Galicia SA(a)(b)	898		24,174
Telecom Argentina SA(a)(b)	1,958		35,577
Total Argentina			79,442
BRAZIL — 4.9%
Banco Bradesco SA(a)	6,449		56,171
Banco Santander Brasil SA(a)(b)	4,062		36,111
Cia Brasileira de Distribuicao Grupo Pao de Acucar(a)(b)	9,713		160,750
Cia de Saneamento Basico do Estado de Sao Paulo(a)	17,425		151,249
Embraer SA(a)	3,796		73,073
Fibria Celulose SA(a)(b)	16,523		158,786
Telefonica Brasil SA(a)	6,388		85,472
Total Brazil			721,612
CANADA — 2.4%
Canadian Solar, Inc.*(b)	7,630		92,933
CGI Group, Inc., Class A*(b)	1,015		48,750
Gildan Activewear, Inc.	1,089		27,628
Magna International, Inc.	1,518		65,881
Manulife Financial Corp.	1,058		18,854
Silver Wheaton Corp.(b)	5,014		96,871
Total Canada			350,917
CHILE — 1.4%
Enel Generacion Chile SA(a)	2,479		48,192
Itau Corpbanca(a)	10,763		133,892
Sociedad Quimica y Minera de Chile SA(a)	1,058		30,311
Total Chile			212,395
CHINA — 19.2%
500.com Ltd., Class A*(a)(b)	10,641		163,127
51job, Inc.*(a)(b)	1,965		66,417
AirMedia Group, Inc.*(a)(b)	63,127		155,292
Alibaba Group Holding Ltd.*(a)(b)	5,065		444,758
Autohome, Inc.*(a)	2,168		54,807
Baidu, Inc.*(a)	260		42,747
Baozun, Inc.*(a)	3,207		38,708
Bitauto Holdings Ltd.*(a)(b)	7,521		142,448
China Lodging Group Ltd.*(a)	763		39,554
Daqo New Energy Corp.*(a)(b)	5,605		108,176
Fanhua, Inc.*(a)(b)	7,864		65,114
Huaneng Power International, Inc.(a)(b)	4,934		128,481
iKang Healthcare Group, Inc.*(a)(b)	8,546		148,102

Investments	Shares	Value
COMMON STOCKS (continued)
CHINA (continued)
Jumei International Holding Ltd.*(a)(b)	34,926	$	174,979
KongZhong Corp.*(a)(b)	10,858		75,355
NetEase, Inc.(a)	333		71,708
New Oriental Education & Technology Group, Inc.*(a)	1,066		44,879
Noah Holdings Ltd.*(a)(b)	3,763		82,523
NQ Mobile, Inc., Class A*(a)(b)	37,047		119,291
Semiconductor Manufacturing International Corp.*(a)(b)	8,552		65,166
Tarena International, Inc.(a)	8,311		124,582
Trina Solar Ltd.*(a)(b)	13,925		129,503
Vipshop Holdings Ltd.*(a)	11,605		127,771
Xinyuan Real Estate Co., Ltd.(a)	13,480		66,861
YY, Inc.*(a)	3,479		137,142
Total China			2,817,491
COLOMBIA — 1.0%
Ecopetrol SA*(a)(b)	15,990		144,709
FRANCE — 4.0%
Criteo SA*(a)	14,355		589,703
INDIA — 1.1%
HDFC Bank Ltd.(a)	1,311		79,552
Infosys Ltd.(a)	1,860		27,584
WNS Holdings Ltd.*(a)	1,839		50,664
Total India			157,800
IRELAND — 4.8%
Fly Leasing Ltd.*(a)	36,507		485,543
Trinity Biotech PLC*(a)	32,780		226,838
Total Ireland			712,381
ISRAEL — 4.2%
Teva Pharmaceutical Industries Ltd.(a)	16,924		613,495
ITALY — 2.4%
Eni SpA(a)(b)	10,852		349,868
LUXEMBOURG — 5.0%
Ternium SA(a)	30,150		728,122
MEXICO — 0.1%
Controladora Vuela Cia de Aviacion SAB de CV*(a)	1,149		17,281

See accompanying Notes to Financial Statements.

37

ADVISORSHARES MADRONA INTERNATIONAL ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

Investments	Shares	Value
COMMON STOCKS (continued)
NETHERLANDS — 18.0%
Aegon NV(c)	124,211	$	686,887
Royal Dutch Shell PLC, Class A(a)	12,394		673,986
Royal Dutch Shell PLC, Class B(a)(b)	9,256		536,570
VimpelCom Ltd.(a)(b)	191,905		738,834
Total Netherlands			2,636,277
NORWAY — 1.3%
Statoil ASA(a)(b)	10,925		199,272
PERU — 0.8%
Cia de Minas Buenaventura SAA(a)	8,639		97,448
Grana y Montero SAA(a)	3,494		24,982
Total Peru			122,430
RUSSIA — 0.7%
Mobile TeleSystems PJSC(a)	4,164		37,934
QIWI PLC(a)	4,674		59,687
Total Russia			97,621
SOUTH AFRICA — 0.2%
Mix Telematics Ltd.(a)	4,067		25,175
SOUTH KOREA — 0.4%
Hanwha Q CELLS Co. Ltd.*(a)(b)	7,070		57,691
SPAIN — 2.6%
Grifols SA(a)	23,422		376,392
SWITZERLAND — 6.0%
Credit Suisse Group AG*(a)	20,378		291,609
STMicroelectronics NV(b)(c)	51,425		583,674
Total Switzerland			875,283
TAIWAN — 4.1%
AU Optronics Corp.(a)	21,253		75,236
Himax Technologies, Inc.(a)(b)	18,509		111,794
Silicon Motion Technology Corp.(a)	2,694		114,441
Siliconware Precision Industries Co., Ltd.(a)	11,598		84,665
Taiwan Semiconductor Manufacturing Co., Ltd.(a)	1,817		52,239

Investments	Shares/ Principal		Value
COMMON STOCKS (continued)
TAIWAN (continued)
United Microelectronics Corp.(a)		89,810	$	157,168
Total Taiwan				595,543
UNITED KINGDOM — 8.0%
AstraZeneca PLC(a)(b)		15,632		427,067
BP PLC(a)		13,095		489,491
GlaxoSmithKline PLC(a)		6,624		255,090
Total United Kingdom				1,171,648
UNITED STATES — 5.2%
Mitel Networks Corp.*(b)		10,753		73,120
Resolute Forest Products, Inc.*		8,924		47,743
Shire PLC(a)		2,328		396,645
Uranium Energy Corp.*(b)		113,066		126,634
Valeant Pharmaceuticals International, Inc.*(b)		8,571		124,451
Total United States				768,593
Total Common Stocks
(Cost $14,114,295)				14,421,141
MONEY MARKET FUND — 1.9%
BlackRock Liquidity Funds FedFund Portfolio, 0.42%(d) (Cost $272,263)		272,263		272,263
REPURCHASE AGREEMENTS — 20.6%(e)
BNP Paribas Securities Corp., dated 12/30/16, due 01/03/17, 0.50%, total to be received $704,547, (collateralized by various U.S. Government Agency Obligations, 0.00% – 7.88%, 04/30/18 – 12/20/46, totaling $716,536)	$	704,527		704,527
Citigroup Global Markets, Inc., dated 12/30/16, due 01/03/17, 0.53%, total to be received $704,548, (collateralized by various U.S. Government Agency Obligations, 2.00% – 8.50%, 12/01/17 – 01/01/47, totaling $716,370)		704,527		704,527

See accompanying Notes to Financial Statements.

38

ADVISORSHARES MADRONA INTERNATIONAL ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

Investments	Principal		Value
REPURCHASE AGREEMENTS (continued)
JP Morgan Securities LLC, dated 12/30/16, due 01/03/17, 0.50%, total to be received $208,823, (collateralized by various U.S. Government Agency Obligations, 0.00% – 1.38%, 04/13/17 – 08/31/21, totaling $212,462)	$	208,817	$	208,817
Merrill Lynch Pierce Fenner & Smith, Inc., dated 12/30/16, due 01/03/17, 0.50%, total to be received $704,547, (collateralized by various U.S. Government Agency Obligations, 1.74% – 6.00%, 08/01/22 – 01/15/49, totaling $716,751)		704,527		704,527
RBC Dominion Securities, Inc., dated 12/30/16, due 01/03/17, 0.52%, total to be received $704,547, (collateralized by various U.S. Government Agency Obligations, 0.88% – 7.00%, 02/13/17 – 01/01/47, totaling $716,584)		704,527		704,527
Total Repurchase Agreements
(Cost $3,026,925)				3,026,925
Total Investments — 120.8%
(Cost $17,413,483)				17,720,329
Liabilities in Excess of Other Assets — (20.8%)				(3,050,180	)
Net Assets — 100.0%			$	14,670,149

____________

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 $3,564,894; the aggregate market value of the collateral held by the fund is $3,683,633. The aggregate market value of the collateral includes non-cash U.S. Treasury securities collateral having a value of $656,708.

(c)Registered Shares.

(d)Rate shown reflects the 7-day yield as of December 31, 2016.

(e)Collateral received from brokers for securities lending was invested in these short-term investments.

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Advertising	1.1	%
Aerospace/Defense	0.5
Airlines	0.1
Apparel	0.2
Auto Parts & Equipment	0.4
Banks	4.4
Chemicals	0.9
Commercial Services	1.6
Computers	0.9
Diversified Financial Services	3.9
Electric	1.2
Electronics	0.5
Energy – Alternate Sources	1.9
Entertainment	1.1
Food	1.1
Forest Products & Paper	1.4
Healthcare – Products	1.5
Healthcare – Services	1.0
Holding Companies – Diversified	0.2
Insurance	5.2
Internet	11.2
Iron/Steel	5.0
Lodging	0.3
Mining	2.2
Oil & Gas	16.3
Pharmaceuticals	14.9
Real Estate	0.5
Retail	1.2
Semiconductors	8.0
Software	2.0
Telecommunications	6.6
Water	1.0
Money Market Fund	1.9
Repurchase Agreements	20.6
Total Investments	120.8
Liabilities in Excess of Other Assets	(20.8	)
Net Assets	100.0	%

See accompanying Notes to Financial Statements.

39

ADVISORSHARES MARKET ADAPTIVE UNCONSTRAINED INCOME ETF

Schedule of Investments

December 31, 2016 (Unaudited)

Investments	Shares	Value
EXCHANGE TRADED FUNDS — 97.0%
Debt Fund — 97.0%
iShares 20+ Year Treasury Bond ETF	2,685	$	319,864
iShares 7-10 Year Treasury Bond ETF	1,694		177,565
iShares iBoxx $ Investment Grade Corporate Bond ETF	1,011		118,469
iShares JPMorgan USD Emerging Markets Bond ETF	1,605		176,903
SPDR Bloomberg Barclays High Yield Bond ETF	9,759		355,716
Total Exchange Traded Funds
(Cost $1,141,697)			1,148,517
MONEY MARKET FUND — 9.8%
Goldman Sachs Financial Square Funds – Treasury Instruments Fund, 0.35%(a) (Cost $116,539)	116,539		116,539
Total Investments — 106.8%
(Cost $1,258,236)			1,265,056
Liabilities in Excess of Other Assets — (6.8%)			(80,644	)
Net Assets — 100.0%		$	1,184,412

____________

ETF — Exchange Traded Fund

(a)Rate shown reflects the 7-day yield as of December 31, 2016.

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Debt Fund	97.0	%
Money Market Fund	9.8
Total Investments	106.8
Liabilities in Excess of Other Assets	(6.8	)
Net Assets	100.0	%

See accompanying Notes to Financial Statements.

40

ADVISORSHARES MEIDELL TACTICAL ADVANTAGE ETF

Schedule of Investments

December 31, 2016 (Unaudited)

Investments	Shares/ Principal		Value
EXCHANGE TRADED FUNDS — 54.5%
Debt Fund — 9.7%
iShares 7-10 Year Treasury Bond ETF		13,478	$	1,412,764
Equity Fund — 44.8%
Deutsche X-trackers MSCI EAFE Hedged Equity ETF(a)		25,344		711,153
iShares Core S&P Small-Cap ETF		32,024		4,403,940
Wisdomtree Europe Hedged Equity Fund(a)		25,234		1,448,431
Total Equity Fund				6,563,524
Total Exchange Traded Funds
(Cost $7,500,928)				7,976,288
MONEY MARKET FUND — 3.2%
Dreyfus Institutional Treasury and Agency Cash Advantage Fund, 0.42%(b) (Cost $469,434)		469,434		469,434
REPURCHASE AGREEMENTS — 13.1%(c)
BNP Paribas Securities Corp., dated 12/30/16, due 01/03/17, 0.50%, total to be received $446,260, (collateralized by various U.S. Government Agency Obligations, 0.00%–7.88%, 04/30/18–12/20/46, totaling $453,855)	$	446,248		446,248
Citigroup Global Markets, Inc., dated 12/30/16, due 01/03/17, 0.53%, total to be received $446,261, (collateralized by various U.S. Government Agency Obligations, 2.00% – 8.50%, 12/01/17 – 01/01/47, totaling $453,750)		446,248		446,248
JP Morgan Securities LLC, dated 12/30/16, due 01/03/17, 0.50%, total to be received $132,268, (collateralized by various U.S. Government Agency Obligations, 0.00% – 1.38%, 04/13/17 – 08/31/21, totaling $134,573)		132,264		132,264
Merrill Lynch Pierce Fenner & Smith, Inc., dated 12/30/16, due 01/03/17, 0.50%, total to be received $446,260, (collateralized by various U.S. Government Agency Obligations, 1.74% – 6.00%, 08/01/22 – 01/15/49, totaling $453,991)		446,248		446,248

Investments	Principal		Value
REPURCHASE AGREEMENTS (continued)
RBC Dominion Securities, Inc., dated 12/30/16, due 01/03/17, 0.52%, total to be received $446,261, (collateralized by various U.S. Government Agency Obligations, 0.88% – 7.00%, 02/13/17 – 01/01/47, totaling $453,885)	$	446,248	$	446,248
Total Repurchase Agreements
(Cost $1,917,256)				1,917,256
Total Investments — 70.8%
(Cost $9,887,618)				10,362,978
Other Assets in Excess of Liabilities — 29.2%				4,280,490
Net Assets — 100.0%			$	14,643,468

____________

ETF — Exchange Traded Fund

(a)All or a portion of security is on loan. The aggregate market value of the securities on loan is $2,752,960; the aggregate market value of the collateral held by the fund is $2,812,866. The aggregate market value of the collateral includes non-cash U.S. Treasury securities collateral having a value of $895,610.

(b)Rate shown reflects the 7-day yield as of December 31, 2016.

(c)Collateral received from brokers for securities lending was invested in these short-term investments.

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Debt Fund	9.7	%
Equity Fund	44.8
Money Market Fund	3.2
Repurchase Agreements	13.1
Total Investments	70.8
Other Assets in Excess of Liabilities	29.2
Net Assets	100.0	%

See accompanying Notes to Financial Statements.

41

ADVISORSHARES MORGAN CREEK GLOBAL TACTICAL ETF

Schedule of Investments

December 31, 2016 (Unaudited)

Investments	Shares/Principal		Value
EXCHANGE TRADED FUNDS — 41.1%
Commodity Fund — 2.6%
SPDR Gold Shares*(a)		1,801	$	197,408
Currency Fund — 4.8%
PowerShares DB US Dollar Index Bullish Fund*		7,124		188,501
ProShares UltraShort Euro*(a)		6,150		166,542
Total Currency Fund				355,043
Debt Fund — 4.1%
Direxion Daily 20 Year Plus Treasury Bull 3x Shares*(a)		16,792		303,767
Equity Fund — 29.6%
Direxion Daily S&P 500 Bull 3X*		3,731		402,015
iShares Residential Real Estate Capped ETF		3,050		189,131
ProShares UltraPro QQQ*		2,893		368,076
ProShares UltraShort Financials*		1,140		34,884
Technology Select Sector SPDR Fund		10,776		521,127
Vanguard Global ex-U.S. Real Estate ETF		5,766		285,821
WisdomTree India Earnings Fund(a)		1,869		37,754
WisdomTree Japan Hedged Equity Fund		7,392		366,200
Total Equity Fund				2,205,008
Total Exchange Traded Funds
(Cost $2,802,250)				3,061,226
CLOSED-END FUND — 2.6%
Country Fund — 2.6%
Morgan Stanley China A Share Fund, Inc.
(Cost $276,127)		11,553		196,285
MONEY MARKET FUND — 56.8%
Goldman Sachs Financial Square Fund, 0.35%(b) (Cost $4,234,392)		4,234,392		4,234,392
REPURCHASE AGREEMENTS — 7.3%(c)
Citigroup Global Markets, Inc., dated 12/30/16, due 01/03/17, 0.53%, total to be received $250,007, (collateralized by various U.S. Government Agency Obligations, 2.00% – 8.50%, 12/01/17 – 01/01/47, totaling $254,202)	$	250,000		250,000

Investments	Principal		Value
REPURCHASE AGREEMENTS (continued)
JP Morgan Securities LLC, dated 12/30/16, due 01/03/17, 0.50%, total to be received $45,538, (collateralized by various U.S. Government Agency Obligations, 0.00% – 1.38%, 04/13/17 – 08/31/21, totaling $46,332)	$	45,537	$	45,537
RBC Dominion Securities, Inc., dated 12/30/16, due 01/03/17, 0.52%, total to be received $250,007, (collateralized by various U.S. Government Agency Obligations, 0.88% – 7.00%, 02/13/17 – 01/01/47, totaling $254,279)		250,000		250,000
Total Repurchase Agreements
(Cost $545,537)				545,537
Total Investments — 107.8%
(Cost $7,858,306)				8,037,440
Liabilities in Excess of Other Assets — (7.8%)				(578,356	)
Net Assets — 100.0%			$	7,459,084

____________

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 $531,756; the aggregate market value of the collateral held by the fund is $545,537.

(b)Rate shown reflects the 7-day yield as of December 31, 2016.

(c)Collateral received from brokers for securities lending was invested in these short-term investments.

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Commodity Fund	2.6	%
Country Fund	2.6
Currency Fund	4.8
Debt Fund	4.1
Equity Fund	29.6
Money Market Fund	56.8
Repurchase Agreements	7.3
Total Investments	107.8
Liabilities in Excess of Other Assets	(7.8	)
Net Assets	100.0	%

See accompanying Notes to Financial Statements.

42

ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF

Schedule of Investments

December 31, 2016 (Unaudited)

Investments	Principal		Value
MORTGAGE BACKED SECURITIES — 32.2%
Commercial Mortgage Backed Securities — 13.0%
Access Point Funding I LLC, Class A, Series 2015-A, 2.61%, 04/15/20‡	$	49,905	$	49,968
Aventura Mall Trust, Class C, Series 2013-AVM, 3.74%, 12/05/32@‡		250,000		258,590
Aventura Mall Trust, Class A, Series 2013-AVM, 3.74%, 12/05/32@‡		1,015,000		1,067,483
Banc of America Commercial Mortgage Trust, Class A4, Series 2007-2, 5.64%, 04/10/49@		82,526		82,466
Banc of America Commercial Mortgage Trust, Class AM, Series 2007-4, 5.81%, 02/10/51@		475,000		483,822
Bayview Commercial Asset Trust, Class A3, Series 2008-1, 2.26%, 01/25/38@‡		176,474		173,528
Bcrr Trust, Class 2A1, Series 2009-1, 5.86%, 07/17/40@‡		45,438		45,437
Bear Stearns Commercial Mortgage Securities Trust, Class A4, Series 2007-PW18, 5.70%, 06/11/50		834,221		852,254
Bear Stearns Commercial Mortgage Securities Trust, Class A4, Series 2007-PW17, 5.69%, 06/11/50@		544,943		554,429
Bear Stearns Commercial Mortgage Securities Trust, Class AM, Series 2007-PW17, 5.92%, 06/11/50@		990,000		1,011,519
Citigroup Commercial Mortgage Trust, Class A, Series 2016-SMPL, 2.23%, 09/10/31‡		470,000		458,717
Citigroup Commercial Mortgage Trust, Class A1A, Series 2007-C6, 5.71%, 12/10/49@		1,304,508		1,315,985
Citigroup Commercial Mortgage Trust, Class A4, Series 2007-C6, 5.71%, 12/10/49@		140,000		141,226
Citigroup Commercial Mortgage Trust, Class AM, Series 2008-C7, 6.14%, 12/10/49@		530,000		545,193

Investments	Principal		Value
MORTGAGE BACKED SECURITIES (continued)
Commercial Mortgage Backed Securities (continued)
Citigroup Commercial Mortgage Trust, Class MLSR, Series 2010-RR3, 5.73%, 06/14/50@‡	$	878,975	$	880,808
Colony Multifamily Mortgage Trust, Class A, Series 2014-1, 2.54%, 04/20/50‡		569,524		566,331
Commercial Mortgage Lease-Backed Certificates, Class A3, Series 2001-CMLB, 7.47%, 06/20/31@‡		460,000		524,480
Commercial Mortgage Trust, Class AM, Series 2007-GG11, 5.87%, 12/10/49@		1,532,000		1,565,919
Credit Suisse Commercial Mortgage Trust, Class A, Series 2016-BDWN, 3.41%, 02/15/29@‡		600,000		605,695
Credit Suisse Commercial Mortgage Trust, Class A1A, Series 2007-C1, 5.36%, 02/15/40		81,544		81,447
GAHR Commercial Mortgage Trust, Class CFX, Series 2015-NRF, 3.38%, 12/15/34@‡		200,000		201,160
GS Mortgage Securities Trust, Class A4, Series 2007-GG10, 5.79%, 08/10/45@		829,574		835,756
GS Mortgage Securities Trust, Class A1A, Series 2007-GG10, 5.79%, 08/10/45@		2,151,532		2,173,682
Hilton USA Trust, Class B, Series 2016-SFP, 3.32%, 11/05/35‡		535,000		529,887
JPMBB Commercial Mortgage Securities Trust, Class A4, Series 2014-C22, 3.80%, 09/15/47		809,000		846,020
JPMorgan Chase Commercial Mortgage Securities Trust, Class B, Series 2015-SGP, 3.45%, 07/15/36@‡		535,000		539,435
JPMorgan Chase Commercial Mortgage Securities Trust, Class AM, Series 2006-LDP7, 5.93%, 04/17/45@		96,515		96,371
JPMorgan Chase Commercial Mortgage Securities Trust, Class A3, Series 2011-C4, 4.11%, 07/15/46‡		757,950		780,200

See accompanying Notes to Financial Statements.

43

ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

Investments	Principal		Value
MORTGAGE BACKED SECURITIES (continued)
Commercial Mortgage Backed Securities (continued)
JPMorgan Chase Commercial Mortgage Securities Trust, Class AM, Series 2006-LDP9, 5.37%, 05/15/47	$	736,053	$	735,819
JPMorgan Chase Commercial Mortgage Securities Trust, Class AM, Series 2007-LDPX, 5.46%, 01/15/49@		465,000		461,163
JPMorgan Chase Commercial Mortgage Securities Trust, Class A4, Series 2007-CB19, 5.71%, 02/12/49@		1,353,093		1,361,320
JPMorgan Chase Commercial Mortgage Securities Trust, Class A4, Series 2007-LD12, 5.88%, 02/15/51@		1,875,280		1,900,698
LB Commercial Mortgage Trust, Class A4, Series 2007-C3, 5.92%, 07/15/44@		1,938,240		1,964,228
LB-UBS Commercial Mortgage Trust, Class A3, Series 2007-C2, 5.43%, 02/15/40		318,233		318,893
LB-UBS Commercial Mortgage Trust, Class A4, Series 2007-C6, 5.86%, 07/15/40@		636,146		640,678
LB-UBS Commercial Mortgage Trust, Class A3, Series 2007-C7, 5.87%, 09/15/45@		641,340		657,286
Morgan Stanley Capital Barclays Bank Trust, Class A, Series 2016-MART, 2.20%, 09/13/31‡		885,000		866,263
Morgan Stanley Capital I Trust, Class AM, Series 2008-T29, 6.28%, 01/11/43@		860,000		889,505
Morgan Stanley Capital I Trust, Class A4, Series 2008-T29, 6.28%, 01/11/43@		153,858		159,437
Morgan Stanley Capital I Trust, Class AM, Series 2007-IQ14, 5.69%, 04/15/49@		226,000		221,624
Morgan Stanley Capital I Trust, Class A4, Series 2007-IQ14, 5.69%, 04/15/49@		593,305		594,671
Morgan Stanley Capital I Trust, Class A4, Series 2007-IQ16, 5.81%, 12/12/49		573,998		582,541
Motel 6 Trust, Class B, Series 2015-MTL6, 3.30%, 02/05/30‡		385,000		386,625
Motel 6 Trust, Class D, Series 2015-MTL6, 4.53%, 02/05/30‡		650,000		653,672

Investments	Principal		Value
MORTGAGE BACKED SECURITIES (continued)
Commercial Mortgage Backed Securities (continued)
Wachovia Bank Commercial Mortgage Trust, Class A5, Series 2007-C30, 5.34%, 12/15/43	$	241,979	$	241,711
Wachovia Bank Commercial Mortgage Trust, Class AM, Series 2007-C30, 5.38%, 12/15/43		1,060,000		1,060,299
Wachovia Bank Commercial Mortgage Trust, Class A4, Series 2007-C31, 5.51%, 04/15/47		520,338		521,378
Wachovia Bank Commercial Mortgage Trust, Class AM, Series 2007-C31, 5.59%, 04/15/47@		1,380,000		1,388,844
Wachovia Bank Commercial Mortgage Trust, Class A3, Series 2007-C32, 5.71%, 06/15/49@		912,199		917,814
Total Commercial Mortgage Backed Securities				33,792,277
Residential Mortgage Backed Securities — 19.0%
Agate Bay Mortgage Trust, Class A1, Series 2013-1, 3.50%, 07/25/43@‡		1,530,150		1,546,288
Alternative Loan Trust, Class 1A1, Series 2004-22CB, 6.00%, 10/25/34		134,603		144,949
AMSR Trust, Class C, Series 2016-SFR1, 2.99%, 11/17/33@‡		332,500		333,814
AMSR Trust, Class A, Series 2016-SFR1, 2.14%, 11/17/33@‡		332,500		332,953
Asset Backed Funding Certificates Trust, Class A6, Series 2005-AQ1, 4.78%, 06/25/35		170,112		175,790
Banc of America Funding Trust, Class 5A1, Series 2004-A, 3.12%, 07/20/34@		171,034		169,953
Banc of America Funding Trust, Class 1A1, Series 2005-1, 5.50%, 02/25/35		191,451		192,240
Banc of America Funding Trust, Class A1, Series 2016-R1, 2.50%, 03/25/40@‡		1,210,031		1,196,290
Banc of America Mortgage Trust, Class 4A1, Series 2004-5, 4.75%, 06/25/19		198,598		198,863

See accompanying Notes to Financial Statements.

44

ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

Investments	Principal		Value
MORTGAGE BACKED SECURITIES (continued)
Residential Mortgage Backed Securities (continued)
Banc of America Mortgage Trust, Class 6A3, Series 2004-7, 4.50%, 08/25/19	$	279,407	$	278,580
Bayview Financial Acquisition Trust, Class 1A2, Series 2007-A, 6.21%, 05/28/37		392,165		408,353
Bear Stearns ALT-A Trust, Class 3A1, Series 2004-5, 3.75%, 06/25/34@		596,173		599,035
Bear Stearns ARM Trust, Class 21A1, Series 2004-1, 2.94%, 04/25/34@		490,799		487,862
Bear Stearns ARM Trust, Class 22A1, Series 2004-9, 3.58%, 11/25/34@		561,826		555,630
Bear Stearns ARM Trust, Class 15A1, Series 2004-10, 3.31%, 01/25/35@		680,135		679,313
Bear Stearns ARM Trust, Class 21A1, Series 2004-10, 3.50%, 01/25/35@		832,221		840,234
Centex Home Equity Loan Trust, Class AF5, Series 2004-D, 5.85%, 09/25/34		438,000		452,738
Chase Mortgage Trust, Class M2, Series 2016-1, 3.75%, 04/25/45@‡		529,591		527,339
Chase Mortgage Trust, Class M2, Series 2016-2, 3.75%, 12/25/45@‡		798,471		793,660
Citicorp Residential Mortgage Trust, Class A4, Series 2006-1, 5.94%, 07/25/36		219,577		223,591
Citigroup Mortgage Loan Trust, Class A, Series 2014-A, 4.00%, 01/25/35@‡		448,876		468,660
Citigroup Mortgage Loan Trust, Class A1, Series 2015-PS1, 3.75%, 09/25/42@‡		424,602		438,666
Citigroup Mortgage Loan Trust, Class A1, Series 2015-A, 3.50%, 06/25/58@‡		912,497		929,165
Citigroup Mortgage Loan Trust, Inc., Class A2, Series 2003-UP3, 7.00%, 09/25/33		169,689		176,717
Citigroup Mortgage Loan Trust, Inc., Class A3, Series 2004-UST1, 2.91%, 08/25/34@		276,114		276,995
Colony American Finance Ltd., Class A, Series 2015-1, 2.90%, 10/15/47‡		424,969		423,958

Investments	Principal		Value
MORTGAGE BACKED SECURITIES (continued)
Residential Mortgage Backed Securities (continued)
Colony Starwood Homes 2016-2 Trust, Class C, Series 2016-2A, 2.89%, 12/17/33@‡	$	665,000	$	667,731
COLT Mortgage Loan Trust, Class A1, Series 2016-1, 3.00%, 05/25/46‡		649,515		656,010
COLT Mortgage Loan Trust, Class A1, Series 2016-2, 2.75%, 09/25/46@‡		888,948		895,832
COLT Mortgage Loan Trust, Class A1, Series 2016-3, 2.80%, 12/26/46@‡		216,000		216,783
Countrywide Asset-Backed Certificates, Class A3, Series 2004-S1, 5.12%, 02/25/35		428,175		435,302
Credit Suisse Commercial Mortgage Trust, Class A16, Series 2013-HYB1, 3.03%, 04/25/43@‡		736,894		740,293
Credit Suisse First Boston Mortgage Securities Corp., Class 6A1, Series 2004-8, 4.50%, 12/25/19		58,509		58,486
Credit Suisse First Boston Mortgage Securities Corp., Class 5A1, Series 2003-AR30, 3.08%, 01/25/34@		237,033		240,680
Credit Suisse First Boston Mortgage Securities Corp., Class 6A1, Series 2004-AR8, 2.91%, 09/25/34@		140,133		140,691
Federal Home Loan Mortgage Corporation, Class M2, Series 2016-DNA2, 2.96%, 10/25/28@		500,000		506,503
GMACM Mortgage Loan Trust, Class 12A, Series 2004-AR1, 3.43%, 06/25/34@		357,353		361,436
GSAA Trust, Class AF4, Series 2005-1, 5.62%, 11/25/34		128,608		132,947
GSR Mortgage Loan Trust, Class 1A6, Series 2003-3F, 6.00%, 04/25/33		394,231		401,737
GSR Mortgage Loan Trust, Class 3A1, Series 2004-7, 2.74%, 06/25/34@		508,309		493,932
Home Equity Loan Trust, Class AIIB, Series 2003-HS2, 1.01%, 06/25/28@		192,244		189,009
Irwin Home Equity Loan Trust, Class M1, Series 2003-A, 2.31%, 10/25/27@		163,215		162,243

See accompanying Notes to Financial Statements.

45

ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

Investments	Principal		Value
MORTGAGE BACKED SECURITIES (continued)
Residential Mortgage Backed Securities (continued)
Jefferies Resecuritization Trust, Class 1A1, Series 2014-R1, 4.00%, 12/27/37‡	$	282,618	$	283,189
JPMorgan Mortgage Trust, Class 2A2, Series 2014-2, 3.50%, 06/25/29@‡		178,075		181,523
JPMorgan Mortgage Trust, Class 1A1, Series 2004-A3, 2.99%, 07/25/34@		265,166		263,489
JPMorgan Mortgage Trust, Class 4A1, Series 2006-A2, 3.18%, 08/25/34@		237,405		238,440
JPMorgan Mortgage Trust, Class 2A1, Series 2004-A4, 3.07%, 09/25/34@		122,721		124,831
JPMorgan Mortgage Trust, Class 4A1, Series 2005-A2, 2.67%, 04/25/35@		619,890		610,272
JPMorgan Mortgage Trust, Class 2A2, Series 2014-1, 3.50%, 01/25/44@‡		558,699		564,591
JPMorgan Mortgage Trust, Class 1A1, Series 2014-1, 4.00%, 01/25/44@‡		274,013		284,302
JPMorgan Mortgage Trust, Class AM1, Series 2015-1, 2.66%, 12/25/44@‡		619,968		620,143
JPMorgan Mortgage Trust, Class A2, Series 2015-5, 2.90%, 05/25/45@‡		982,927		991,383
JPMorgan Mortgage Trust, Class 1A4, Series 2015-4, 3.50%, 06/25/45@‡		957,188		967,283
JPMorgan Mortgage Trust, Class A3, Series 2016-1, 3.50%, 05/25/46‡		1,289,010		1,303,411
JPMorgan Mortgage Trust, Class 1A1, Series 2016-3, 3.50%, 10/25/46@‡		502,364		507,663
JPMorgan Mortgage Trust, Class A1, Series 2016-5, 2.60%, 12/25/46@‡		365,000		363,346
MASTR Alternative Loan Trust, Class 6A1, Series 2004-4, 5.50%, 04/25/34		343,245		356,809
MASTR Alternative Loan Trust, Class 2A1, Series 2005-2, 6.00%, 01/25/35		212,053		220,046
MASTR Asset Securitization Trust, Class 1A1, Series 2005-1, 5.00%, 05/25/20		180,815		182,694
MASTR Asset Securitization Trust, Class 4A5, Series 2003-5, 5.50%, 06/25/33		452,342		455,774

Investments	Principal		Value
MORTGAGE BACKED SECURITIES (continued)
Residential Mortgage Backed Securities (continued)
Mastr Specialized Loan Trust, Class A2, Series 2005-3, 5.70%, 11/25/35‡	$	307,052	$	310,509
Merrill Lynch Mortgage Investors Trust, Class A1, Series 2004-A4, 2.86%, 08/25/34@		731,101		741,462
Mill City Mortgage Loan Trust, Class A1, Series 2016-1, 2.50%, 04/25/57@‡		700,822		699,407
Morgan Stanley Residential Mortgage Loan Trust, Class A1, Series 2014-1A, 2.99%, 06/25/44@‡		536,930		542,213
National City Mortgage Capital Trust, Class 2A1, Series 2008-1, 6.00%, 03/25/38		211,326		220,537
New Residential Mortgage Loan Trust, Class A1, Series 2016-2A, 3.75%, 11/26/35@‡		205,709		209,698
New Residential Mortgage Loan Trust, Class A, Series 2014-1A, 3.75%, 01/25/54@‡		961,208		992,665
New Residential Mortgage Loan Trust, Class A3, Series 2014-2A, 3.75%, 05/25/54@‡		260,170		268,008
New Residential Mortgage Loan Trust, Class AFX3, Series 2014-3A, 3.75%, 11/25/54@‡		1,449,899		1,475,327
New Residential Mortgage Loan Trust, Class A1, Series 2015-2A, 3.75%, 08/25/55@‡		1,086,070		1,127,170
New Residential Mortgage Loan Trust, Class A1, Series 2016-1A, 3.75%, 03/25/56@‡		305,736		311,120
New Residential Mortgage Loan Trust, Class A1, Series 2016-3A, 3.75%, 09/25/56@‡		895,633		917,233
New Residential Mortgage Loan Trust, Class A1, Series 2016-4A, 3.75%, 11/25/56@‡		249,156		258,333
NovaStar Mortgage Funding Trust, Class M5, Series 2004-4, 2.48%, 03/25/35@		1,205,000		1,181,598
RASC Series Trust, Class AI6, Series 2004-KS2, 4.30%, 03/25/34@		61,094		61,830
Sequoia Mortgage Trust, Class A9, Series 2014-3, 3.75%, 10/25/44@‡		519,112		528,782
Sequoia Mortgage Trust, Class A6, Series 2014-4, 3.50%, 11/25/44@‡		531,338		532,891

See accompanying Notes to Financial Statements.

46

ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

Investments	Principal		Value
MORTGAGE BACKED SECURITIES (continued)
Residential Mortgage Backed Securities (continued)
Structured Adjustable Rate Mortgage Loan Trust, Class 6A, Series 2004-1, 3.14%, 02/25/34@	$	349,359	$	340,658
Structured Adjustable Rate Mortgage Loan Trust, Class 3A2, Series 2004-4, 3.08%, 04/25/34@		682,905		679,234
Structured Adjustable Rate Mortgage Loan Trust, Class 3A1, Series 2004-4, 3.08%, 04/25/34@		128,232		126,505
Structured Adjustable Rate Mortgage Loan Trust, Class 3A2, Series 2004-5, 3.18%, 05/25/34@		268,719		272,270
Structured Asset Sec Corp. Pass-Through Cert., Class A3, Series 2002-AL1, 3.45%, 02/25/32		803,182		798,377
Structured Asset Securities Corp., Class 2A, Series 2003-37A, 2.91%, 12/25/33@		235,348		234,288
Structured Asset Securities Corp., Class A3A, Series 2004-4XS, 5.50%, 02/25/34		506,591		521,073
Structured Asset Securities Corp. Assistance Loan Trust, Class A, Series 2003-AL1, 3.36%, 04/25/31‡		950,477		939,153
Structured Asset Securities Corp. Mortgage Pass-Through Certificates, Class 1A1, Series 2003-33H, 5.50%, 10/25/33		376,005		384,781
Structured Asset Securities Corp. Mortgage Pass-Through Certificates, Class 6A, Series 2003-34A, 3.34%, 11/25/33@		282,982		279,960
Structured Asset Securities Corp. Mortgage Pass-Through Certificates, Class 3A3, Series 2004-15, 5.50%, 09/25/34		195,396		197,061
Towd Point Mortgage Trust, Class A1B, Series 2015-3, 3.00%, 03/25/54@‡		458,452		463,559
Towd Point Mortgage Trust, Class A1B, Series 2016-1, 2.75%, 02/25/55@‡		866,322		870,527
Towd Point Mortgage Trust, Class M1, Series 2015-6, 3.75%, 04/25/55@‡		260,000		255,314

Investments	Principal		Value
MORTGAGE BACKED SECURITIES (continued)
Residential Mortgage Backed Securities (continued)
Towd Point Mortgage Trust, Class A1B, Series 2015-5, 2.75%, 05/25/55@‡	$	838,309	$	842,437
Towd Point Mortgage Trust, Class A2, Series 2015-5, 3.50%, 05/25/55@‡		250,000		251,703
Towd Point Mortgage Trust, Class A1, Series 2016-4, 2.25%, 07/25/56@‡		574,558		570,075
Vericrest Opportunity Loan Trust, Class A1, Series 2014-NPL9, 3.38%, 11/25/54@‡		122,588		122,940
Vericrest Opportunity Loan Trust, Class A1, Series 2015-NPL3, 3.38%, 10/25/58‡		195,632		195,847
VOLT LI LLC, Class A1, Series 2016-NP11, 3.50%, 10/25/46‡		267,119		267,174
VOLT XXII LLC, Class A1, Series 2016-NPL8, 3.50%, 07/25/46‡		199,979		199,796
VOLT XXII LLC, Class A1, Series 2015-NPL4, 3.50%, 02/25/55‡		104,926		105,269
VOLT XXXI LLC, Class A1, Series 2015-NPL2, 3.38%, 02/25/55‡		208,182		209,204
WaMu Mortgage Pass-Through Certificates, Class A1, Series 2003-AR6, 2.90%, 06/25/33@		227,690		226,965
Washington Mutual MSC Mortgage Pass-Through Certificates Trust, Class 2A1, Series 2003-AR4, 2.62%, 08/25/33@		156,686		154,632
Wells Fargo Mortgage Backed Securities Trust, Class A1, Series 2003-G, 2.90%, 06/25/33@		27,280		27,405
Wells Fargo Mortgage Backed Securities Trust, Class 2A1, Series 2003-J, 2.97%, 10/25/33@		162,861		163,991
Wells Fargo Mortgage Backed Securities Trust, Class 5A1, Series 2003-J, 2.96%, 10/25/33@		163,755		165,339
Wells Fargo Mortgage Backed Securities Trust, Class A1, Series 2004-A, 3.00%, 02/25/34@		214,574		216,562

See accompanying Notes to Financial Statements.

47

ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

Investments	Principal		Value
MORTGAGE BACKED SECURITIES (continued)
Residential Mortgage Backed Securities (continued)
Wells Fargo Mortgage Backed Securities Trust, Class 1A2, Series 2004-K, 3.11%, 07/25/34@	$	363,109	$	363,170
Wells Fargo Mortgage Backed Securities Trust, Class 2A12, Series 2004-K, 3.08%, 07/25/34@		109,674		111,674
Wells Fargo Mortgage Backed Securities Trust, Class A1, Series 2004-U, 3.13%, 10/25/34@		452,724		451,261
Wells Fargo Mortgage Backed Securities Trust, Class 2A1, Series 2004-Z, 3.00%, 12/25/34@		137,454		139,076
Wells Fargo Mortgage Backed Securities Trust, Class A12, Series 2005-3, 5.50%, 05/25/35		161,691		162,420
Wells Fargo Mortgage Backed Securities Trust, Class 2A1, Series 2005-14, 5.50%, 12/25/35		100,453		103,463
Total Residential Mortgage Backed Securities				49,462,386
U.S. Government Agency Securities — 0.2%
Federal Home Loan Mortgage Corporation, Class J, Series 2012-4011, 4.00%, 12/15/41		376,795		393,366
Total Mortgage Backed Securities
(Cost $85,784,588)				83,648,029
ASSET BACKED SECURITIES — 25.8%
American Credit Acceptance Receivables Trust, Class B, Series 2016-1A, 4.24%, 06/13/22‡		665,000		677,664
AmeriCredit Automobile Receivables Trust, Class B, Series 2016-1, 2.30%, 03/08/21		1,720,000		1,729,137
AmeriCredit Automobile Receivables Trust, Class C, Series 2014-2, 2.18%, 06/08/20		500,000		503,250
AmeriCredit Automobile Receivables Trust, Class C, Series 2015-3, 2.73%, 03/08/21		655,000		660,652

Investments	Principal		Value
ASSET BACKED SECURITIES (continued)
AmeriCredit Automobile Receivables Trust, Class C, Series 2015-4, 2.88%, 07/08/21	$	715,000	$	723,136
AmeriCredit Automobile Receivables Trust, Class D, Series 2012-4, 2.68%, 10/09/18		1,050,000		1,050,588
AmeriCredit Automobile Receivables Trust, Class D, Series 2013-2, 2.42%, 05/08/19		575,000		578,508
AmeriCredit Automobile Receivables Trust, Class D, Series 2014-1, 2.54%, 06/08/20		755,000		760,453
Ascentium Equipment Receivables LLC, Class B, Series 2015-1A, 2.26%, 06/10/21‡		600,000		603,912
Associates Manufactured Housing Pass-Through Certificates, Class B1, Series 1996-1, 8.00%, 03/15/27@		467,715		484,099
Avis Budget Rental Car Funding Aesop LLC, Class A, Series 2012-3A, 2.10%, 03/20/19‡		500,000		500,641
Avis Budget Rental Car Funding Aesop LLC, Class A, Series 2013-1A, 1.92%, 09/20/19‡		1,140,000		1,134,721
Avis Budget Rental Car Funding Aesop LLC, Class A, Series 2013-2A, 2.97%, 02/20/20‡		1,465,000		1,480,913
BankAmerica Manufactured Housing Contract Trust, Class B1, Series 1998-1, 7.81%, 08/10/25@		75,279		76,407
BXG Receivables Note Trust, Class A, Series 2013-A, 3.01%, 12/04/28‡		166,646		166,689
BXG Receivables Note Trust, Class A, Series 2015-A, 2.88%, 05/02/30‡		382,018		384,455
California Republic Auto Receivables Trust, Class A4, Series 2014-3, 1.79%, 03/16/20		645,000		647,648
California Republic Auto Receivables Trust, Class B, Series 2014-2, 2.34%, 04/15/20		500,000		503,896
California Republic Auto Receivables Trust, Class B, Series 2015-3, 2.70%, 09/15/21		645,000		645,842

See accompanying Notes to Financial Statements.

48

ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

Investments	Principal		Value
ASSET BACKED SECURITIES (continued)
Capital Auto Receivables Asset Trust, Class C, Series 2013-1, 1.74%, 10/22/18	$	130,437	$	130,493
Capital Auto Receivables Asset Trust, Class C, Series 2013-4, 2.67%, 02/20/19		635,000		639,591
Capital Auto Receivables Asset Trust, Class C, Series 2015-2, 2.67%, 08/20/20		650,000		653,607
CarFinance Capital Auto Trust, Class B, Series 2013-2A, 3.15%, 08/15/19‡		91,736		92,098
CarFinance Capital Auto Trust, Class B, Series 2014-1A, 2.72%, 04/15/20‡		183,104		184,210
CarFinance Capital Auto Trust, Class B, Series 2014-2A, 2.64%, 11/16/20‡		480,000		481,207
CarFinance Capital Auto Trust, Class B, Series 2015-1A, 2.91%, 06/15/21‡		1,000,000		1,002,536
CarFinance Capital Auto Trust, Class D, Series 2014-1A, 4.90%, 04/15/20‡		415,000		414,923
CarMax Auto Owner Trust, Class B, Series 2014-4, 2.20%, 09/15/20		700,000		703,051
CarMax Auto Owner Trust, Class B, Series 2015-4, 2.16%, 08/16/21		713,000		710,833
CarMax Auto Owner Trust, Class B, Series 2016-2, 2.16%, 12/15/21		575,000		570,725
CarMax Auto Owner Trust, Class C, Series 2015-2, 2.39%, 03/15/21		615,000		613,788
Carnow Auto Receivables Trust, Class D, Series 2014-1A, 4.16%, 11/15/18‡		400,000		400,392
CCG Receivables Trust, Class A3, Series 2015-1, 1.92%, 01/17/23‡		1,000,000		1,001,603
CCG Receivables Trust, Class B, Series 2014-1, 2.15%, 11/15/21‡		420,000		420,796
Centre Point Funding LLC, Class 1, Series 2012-2A, 2.61%, 08/20/21‡		555,204		547,661
Chrysler Capital Auto Receivables Trust, Class D, Series 2015-BA, 4.17%, 01/16/23‡		635,000		642,201
Citi Held For Asset Issuance, Class A, Series 2015-PM3, 2.56%, 05/16/22‡		222,830		223,259

Investments	Principal		Value
ASSET BACKED SECURITIES (continued)
CKE Restaurant Holdings, Inc., Class A2, Series 2013-1A, 4.47%, 03/20/43‡	$	585,125	$	578,487
Conseco Financial Corp., Class B1, Series 1995-5, 7.30%, 09/15/26@		169,072		171,942
Diamond Resorts Owner Trust, Class A, Series 2014-1, 2.54%, 05/20/27‡		596,718		592,170
DRB Prime Student Loan Trust, Class A3, Series 2015-D, 2.50%, 01/25/36‡		415,304		414,816
Drive Auto Receivables Trust, Class B, Series 2016-AA, 3.17%, 05/15/20‡		1,200,000		1,210,816
Drive Auto Receivables Trust, Class B, Series 2016-BA, 2.56%, 06/15/20‡		1,250,000		1,257,691
Drive Auto Receivables Trust, Class C, Series 2015-AA, 3.06%, 05/17/21‡		1,225,000		1,237,317
Drive Auto Receivables Trust, Class C, Series 2015-DA, 3.38%, 11/15/21‡		1,000,000		1,016,677
Drive Auto Receivables Trust, Class C, Series 2016-CA, 3.02%, 11/15/21‡		665,000		660,731
Drug Royalty II LP, Class A2, Series 2014-1, 3.48%, 07/15/23‡		267,347		265,634
DT Auto Owner Trust, Class B, Series 2016-1A, 2.79%, 05/15/20‡		700,000		704,341
DT Auto Owner Trust, Class C, Series 2014-2A, 2.46%, 01/15/20‡		74,531		74,635
DT Auto Owner Trust, Class C, Series 2014-3A, 3.04%, 09/15/20‡		544,239		547,340
DT Auto Owner Trust, Class C, Series 2015-3A, 3.25%, 07/15/21‡		655,000		661,025
DT Auto Owner Trust, Class C, Series 2016-2A, 3.67%, 01/18/22‡		625,000		631,393
DT Auto Owner Trust, Class C, Series 2016-3A, 3.15%, 03/15/22‡		650,000		650,111
Exeter Automobile Receivables Trust, Class A, Series 2016-1A, 2.35%, 07/15/20‡		657,093		659,541
Exeter Automobile Receivables Trust, Class C, Series 2013-1A, 3.52%, 02/15/19‡		334,558		336,622

See accompanying Notes to Financial Statements.

49

ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

Investments	Principal		Value
ASSET BACKED SECURITIES (continued)
Exeter Automobile Receivables Trust, Class C, Series 2014-1A, 3.57%, 07/15/19‡	$	1,110,000	$	1,117,323
Exeter Automobile Receivables Trust, Class C, Series 2014-2A, 3.26%, 12/16/19‡		880,000		885,136
Exeter Automobile Receivables Trust, Class C, Series 2015-1A, 4.10%, 12/15/20‡		500,000		507,991
Exeter Automobile Receivables Trust, Class C, Series 2015-2A, 3.90%, 03/15/21‡		600,000		607,801
Flagship Credit Auto Trust, Class A, Series 2016-1, 2.77%, 12/15/20‡		575,021		579,459
Foursight Capital Automobile Receivables Trust, Class A2, Series 2016-1, 2.87%, 10/15/21‡		901,845		894,463
Foursight Capital Automobile Receivables Trust, Class B, Series 2014-1, 3.56%, 11/22/21‡		500,000		498,250
Gold Key Resorts LLC, Class A, Series 2014-A, 3.22%, 03/17/31‡		334,847		332,844
Hertz Vehicle Financing II LP, Class A, Series 2015-2A, 2.02%, 09/25/19‡		1,075,000		1,065,261
Hertz Vehicle Financing LLC, Class A, Series 2016-1A, 2.32%, 03/25/20‡		200,000		198,798
Hertz Vehicle Financing LLC, Class A2, Series 2011-1A, 3.29%, 03/25/18‡		575,000		576,415
Hilton Grand Vacations Trust, Class A, Series 2013-A, 2.28%, 01/25/26‡		604,390		599,670
Hilton Grand Vacations Trust, Class A, Series 2014-AA, 1.77%, 11/25/26‡		204,798		201,084
Hyundai Auto Receivables Trust, Class B, Series 2015-C, 2.15%, 11/15/21		1,000,000		1,001,610
Hyundai Auto Receivables Trust, Class D, Series 2014-B, 2.51%, 12/15/20		425,000		425,909
Hyundai Auto Receivables Trust, Class D, Series 2015-A, 2.73%, 06/15/21		500,000		503,988
LEAF Receivables Funding 10 LLC, Class D, Series 2015-1, 3.74%, 05/17/21‡		615,000		605,299

Investments	Principal		Value
ASSET BACKED SECURITIES (continued)
LEAF Receivables Funding 9 LLC, Class D, Series 2013-1, 5.11%, 09/15/21‡	$	345,000	$	350,391
Marriott Vacation Club Owner Trust, Class A, Series 2012-1A, 2.51%, 05/20/30‡		663,139		663,308
Mid-State Trust, Class A4, Series 1997-6, 7.79%, 07/01/35		293,827		310,070
MVW Owner Trust, Class A, Series 2016-1A, 2.25%, 12/20/33‡		747,273		733,134
MVW Owner Trust, Class B, Series 2015-1A, 2.96%, 12/20/32‡		435,691		436,208
Navistar Financial Dealer Note Master Owner Trust II, Class B, Series 2016-1, 2.51%, 09/27/21@‡		1,065,000		1,073,386
OneMain Financial Issuance Trust, Class A, Series 2014-1A, 2.43%, 06/18/24‡		293,695		293,742
OneMain Financial Issuance Trust, Class A, Series 2015-1A, 3.19%, 03/18/26‡		120,000		121,002
OneMain Financial Issuance Trust, Class A, Series 2015-2A, 2.57%, 07/18/25‡		325,000		325,418
Orange Lake Timeshare Trust, Class A, Series 2015-AA, 2.88%, 09/08/27‡		380,653		379,559
Santander Drive Auto Receivables Trust, Class B, Series 2016-2, 2.08%, 02/16/21		750,000		750,869
Santander Drive Auto Receivables Trust, Class C, Series 2013-3, 1.81%, 04/15/19		317,912		318,437
Santander Drive Auto Receivables Trust, Class C, Series 2014-3, 2.13%, 08/17/20		600,000		602,274
Santander Drive Auto Receivables Trust, Class C, Series 2016-1, 3.09%, 04/15/22		1,370,000		1,391,617
Santander Drive Auto Receivables Trust, Class D, Series 2012-6, 2.52%, 09/17/18		288,438		288,830
Santander Drive Auto Receivables Trust, Class D, Series 2013-1, 2.27%, 01/15/19		785,000		788,214

See accompanying Notes to Financial Statements.

50

ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

Investments	Principal		Value
ASSET BACKED SECURITIES (continued)
Santander Drive Auto Receivables Trust, Class D, Series 2013-5, 2.73%, 10/15/19	$	475,000	$	480,542
Sierra Timeshare Receivables Funding LLC, Class A, Series 2014-1A, 2.07%, 03/20/30‡		121,645		120,855
Sierra Timeshare Receivables Funding LLC, Class A, Series 2014-2A, 2.05%, 06/20/31‡		79,990		79,867
Sierra Timeshare Receivables Funding LLC, Class B, Series 2012-2A, 3.42%, 03/20/29‡		86,406		86,554
Silverleaf Finance XV LLC, Class A, Series 2012-D, 3.00%, 03/17/25‡		67,435		67,436
Silverleaf Finance XVIII LLC, Class A, Series 2014-A, 2.81%, 01/15/27‡		309,343		305,150
SLM Private Education Loan Trust, Class A2A, Series 2013-B, 1.85%, 06/17/30‡		500,000		497,639
SLM Private Education Loan Trust, Class A2A, Series 2013-C, 2.94%, 10/15/31‡		270,000		273,272
SLM Private Education Loan Trust, Class A2A, Series 2014-A, 2.59%, 01/15/26‡		1,275,000		1,278,903
SNAAC Auto Receivables Trust, Class C, Series 2014-1A, 2.21%, 01/15/20‡		243,951		244,145
Sofi Consumer Loan Program LLC, Class A, Series 2016-3, 3.05%, 12/26/25‡		642,423		641,076
SoFi Professional Loan Program LLC, Class A2, Series 2014-B, 2.55%, 08/27/29‡		411,340		413,024
SoFi Professional Loan Program LLC, Class A2, Series 2015-A, 2.42%, 03/25/30‡		240,063		239,518
SoFi Professional Loan Program LLC, Class A2, Series 2016-A, 2.76%, 12/26/36‡		403,954		406,661
SoFi Professional Loan Program LLC, Class A2B, Series 2016-C, 2.36%, 12/27/32‡		1,006,000		991,907
TCF Auto Receivables Owner Trust, Class B, Series 2014-1A, 2.33%, 05/15/20‡		800,000		806,864
Tidewater Auto Receivables Trust, Class C, Series 2014-AA, 2.56%, 08/15/19‡		500,000		501,920

Investments	Principal		Value
ASSET BACKED SECURITIES (continued)
Trip Rail Master Funding LLC, Class A1, Series 2014-1A, 2.86%, 04/15/44‡	$	227,664	$	222,447
Trip Rail Master Funding LLC, Class A1A, Series 2011-1A, 4.37%, 07/15/41‡		248,181		250,892
U-Haul S Fleet LLC, Class 1, Series 2010-BT1A, 4.90%, 10/25/23‡		718,469		724,665
United Auto Credit Securitization Trust, Class B, Series 2016-1, 2.73%, 05/15/18‡		717,530		718,876
Welk Resorts LLC, Class A, Series 2015-AA, 2.79%, 06/16/31‡		440,206		434,767
Wendys Funding LLC, Class A2II, Series 2015-1A, 4.08%, 06/15/45‡		528,313		523,242
Westgate Resorts LLC, Class A, Series 2016-1A, 3.50%, 12/20/28‡		431,369		429,940
Westlake Automobile Receivables Trust, Class B, Series 2016-3A, 2.07%, 12/15/21‡		1,230,000		1,225,179
Westlake Automobile Receivables Trust, Class C, Series 2015-1A, 2.29%, 11/16/20‡		500,000		501,422
Westlake Automobile Receivables Trust, Class C, Series 2016-2A, 2.83%, 05/17/21‡		780,000		782,128
Total Asset Backed Securities
(Cost $67,100,683)				67,093,525
CORPORATE BONDS — 18.8%
Consumer Discretionary — 1.7%
American Axle & Manufacturing, Inc., 5.13%, 02/15/19		115,000		116,393
CSC Holdings LLC, 6.75%, 11/15/21		365,000		393,287
Lennar Corp., 4.50%, 11/15/19(a)		305,000		318,344
Live Nation Entertainment, Inc., 4.88%, 11/01/24‡		455,000		457,275
Marriott International, Inc., 3.13%, 10/15/21		520,000		526,292
Newell Rubbermaid, Inc., 2.60%, 03/29/19		375,000		379,320

See accompanying Notes to Financial Statements.

51

ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

Investments	Principal		Value
CORPORATE BONDS (continued)
Consumer Discretionary (continued)
Newell Rubbermaid, Inc., 3.15%, 04/01/21	$	65,000	$	66,214
QVC, Inc., 3.13%, 04/01/19		610,000		616,679
Toll Brothers Finance Corp., 4.00%, 12/31/18		175,000		180,031
Toll Brothers Finance Corp., 6.75%, 11/01/19		117,000		128,554
Toll Brothers Finance Corp., 5.63%, 01/15/24		35,000		36,487
Toll Brothers Finance Corp., 4.88%, 11/15/25		140,000		137,900
TRI Pointe Holdings, Inc./TRI Pointe Group, Inc., 4.38%, 06/15/19		575,000		587,938
Wyndham Worldwide Corp., 2.50%, 03/01/18		450,000		453,908
Total Consumer Discretionary				4,398,622
Consumer Staples — 0.1%
Kraft Heinz Foods Co., 2.80%, 07/02/20		185,000		186,909
Energy — 1.6%
Antero Resources Corp., 5.63%, 06/01/23		210,000		216,037
Blue Racer Midstream LLC/Blue Racer Finance Corp., 6.13%, 11/15/22‡		155,000		155,775
Carrizo Oil & Gas, Inc., 6.25%, 04/15/23(a)		640,000		659,200
Enbridge Energy Partners LP, 4.38%, 10/15/20(a)		110,000		114,935
Holly Energy Partners LP/Holly Energy Finance Corp., 6.00%, 08/01/24‡		35,000		36,662
Kinder Morgan, Inc., 5.63%, 11/15/23‡		545,000		599,030
MPLX LP, 5.50%, 02/15/23		320,000		332,964
NGL Energy Partners LP/NGL Energy Finance Corp., 5.13%, 07/15/19		535,000		533,663
Occidental Petroleum Corp., 2.60%, 04/15/22		50,000		49,908
Range Resources Corp., 5.00%, 08/15/22‡		260,000		259,675
Regency Energy Partners LP/Regency Energy Finance Corp., 5.00%, 10/01/22		440,000		466,828
Sabine Oil & Gas Corp., 7.25%, 06/15/19^		92,000		253
Sunoco LP/Sunoco Finance Corp., 6.38%, 04/01/23		665,000		676,638
Total Energy				4,101,568

Investments	Principal		Value
CORPORATE BONDS (continued)
Financials — 7.2%
Air Lease Corp., 2.63%, 09/04/18	$	520,000	$	523,838
Ally Financial, Inc., 3.25%, 11/05/18		145,000		145,544
Ally Financial, Inc., 4.13%, 03/30/20		270,000		273,375
Ally Financial, Inc., 4.25%, 04/15/21		625,000		632,422
Ares Capital Corp., 4.88%, 11/30/18		76,000		78,810
Ares Capital Corp., 3.88%, 01/15/20		210,000		213,082
Aviation Capital Group Corp., 2.88%, 09/17/18‡		195,000		197,681
Bank of America Corp., 2.00%, 01/11/18		235,000		235,600
Bank of America Corp., 5.65%, 05/01/18		200,000		209,620
Bank of America Corp., 5.49%, 03/15/19		66,000		70,088
Bank of New York Mellon Corp. (The), 4.95%#@		555,000		558,469
Bank of New York Mellon Corp. (The), 2.05%, 05/03/21(a)		650,000		638,369
Bear Stearns Cos. LLC (The), 7.25%, 02/01/18		75,000		79,380
Berkshire Hathaway Finance Corp., 1.30%, 08/15/19		1,370,000		1,353,882
Fifth Third Bancorp, 4.50%, 06/01/18		321,000		331,928
First Horizon National Corp., 3.50%, 12/15/20		550,000		555,507
First Tennessee Bank NA, 2.95%, 12/01/19		250,000		250,789
Ford Motor Credit Co. LLC, 8.13%, 01/15/20		455,000		525,055
Ford Motor Credit Co. LLC, 3.20%, 01/15/21		650,000		651,559
FS Investment Corp., 4.25%, 01/15/20		585,000		588,955
General Motors Financial Co., Inc., 2.40%, 04/10/18		355,000		355,490
General Motors Financial Co., Inc., 3.20%, 07/06/21		700,000		694,882
General Motors Financial Co., Inc., 3.70%, 05/09/23		280,000		275,902
Goldman Sachs Group, Inc. (The), 5.63%, 01/15/17		670,000		670,823
Goldman Sachs Group, Inc. (The), 2.35%, 11/15/21		165,000		160,490

See accompanying Notes to Financial Statements.

52

ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

Investments	Principal		Value
CORPORATE BONDS (continued)
Financials (continued)
Huntington Bancshares, Inc., 7.00%, 12/15/20	$	200,000	$	226,648
Jefferies Group LLC, 5.13%, 04/13/18		275,000		284,341
JPMorgan Chase & Co., 5.30%#@		40,000		40,922
JPMorgan Chase & Co., 6.13%, 06/27/17		280,000		286,165
JPMorgan Chase & Co., 2.25%, 01/23/20		380,000		379,272
JPMorgan Chase & Co., 2.30%, 08/15/21		170,000		166,959
JPMorgan Chase Bank NA, 1.65%, 09/23/19		580,000		574,458
Lazard Group LLC, 4.25%, 11/14/20		275,000		288,114
Lincoln National Corp., 8.75%, 07/01/19		39,000		44,898
Lincoln National Corp., 4.20%, 03/15/22		475,000		503,351
Lincoln National Corp., 6.05%, 04/20/67@		100,000		77,250
Morgan Stanley, 2.13%, 04/25/18		180,000		180,775
New York Life Global Funding, 1.95%, 02/11/20‡		65,000		64,559
Santander Holdings USA, Inc., 2.70%, 05/24/19		245,000		244,954
Santander Holdings USA, Inc., 2.65%, 04/17/20		475,000		471,155
SBA Tower Trust, 2.93%, 12/11/17‡		725,000		725,944
SBA Tower Trust, 3.16%, 10/15/20‡		425,000		428,577
SBA Tower Trust, 2.88%, 07/15/21‡		780,000		774,329
Springleaf Finance Corp., 5.25%, 12/15/19		190,000		191,900
Starwood Property Trust, Inc., 5.00%, 12/15/21‡		125,000		126,988
State Street Corp., 4.96%, 03/15/18		300,000		310,026
TIAA Asset Management Finance Co. LLC, 2.95%, 11/01/19‡		400,000		407,179
Voya Financial, Inc., 2.90%, 02/15/18		279,000		282,533
Wells Fargo Bank NA, 2.15%, 12/06/19		785,000		784,845

Investments	Principal		Value
CORPORATE BONDS (continued)
Financials (continued)
Willis North America, Inc., 6.20%, 03/28/17	$	250,000	$	252,797
Zions Bancorporation, 4.50%, 03/27/17		330,000		331,440
Total Financials				18,721,919
Health Care — 1.7%
Abbott Laboratories, 2.35%, 11/22/19		240,000		240,450
Abbott Laboratories, 2.90%, 11/30/21		335,000		334,424
AbbVie, Inc., 2.50%, 05/14/20		540,000		540,573
AbbVie, Inc., 2.30%, 05/14/21		375,000		367,798
Actavis Funding SCS, 3.00%, 03/12/20		85,000		86,242
Actavis Funding SCS, 3.45%, 03/15/22		85,000		86,375
Centene Corp., 5.63%, 02/15/21		320,000		337,248
Centene Corp., 4.75%, 05/15/22		405,000		411,075
Forest Laboratories LLC, 4.38%, 02/01/19‡		200,000		207,931
Mylan NV, 3.15%, 06/15/21‡		170,000		167,007
Owens & Minor, Inc., 3.88%, 09/15/21		95,000		95,316
Shire Acquisitions Investments Ireland DAC, 2.40%, 09/23/21		260,000		251,434
Tenet Healthcare Corp., 6.25%, 11/01/18		150,000		159,000
Tenet Healthcare Corp., 4.46%, 06/15/20@		800,000		810,000
Tenet Healthcare Corp., 6.00%, 10/01/20		105,000		110,250
Tenet Healthcare Corp., 7.50%, 01/01/22‡		25,000		26,125
Zimmer Biomet Holdings, Inc., 3.15%, 04/01/22		295,000		294,546
Total Health Care				4,525,794
Industrials — 2.0%
America West Airlines Pass-Through Trust, Series 011G, 7.10%, 04/02/21		773,171		834,058
Continental Airlines Class A Pass-Through Trust, Series 991A, 6.55%, 08/02/20		270,816		282,313

See accompanying Notes to Financial Statements.

53

ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

Investments	Principal		Value
CORPORATE BONDS (continued)
Industrials (continued)
Continental Airlines Class A-1 Pass-Through Trust, Series 00A1, 8.05%, 11/01/20	$	402,488	$	447,768
Continental Airlines Class A-1 Pass-Through Trust, Series 01A1, 6.70%, 12/15/22		262,694		279,440
Continental Airlines Class C-2 Pass-Through Trust, Series AMBC, 6.24%, 03/15/20		168,747		176,762
Delta Air Lines Class A Pass-Through Trust, Series 2A, 4.95%, 05/23/19		469,109		492,213
Masco Corp., 3.50%, 04/01/21		515,000		518,862
Masco Corp., 5.95%, 03/15/22		400,000		443,000
Penske Truck Leasing Co. LP/PTL Finance Corp., 2.50%, 06/15/19		195,000		195,584
Penske Truck Leasing Co. LP/PTL Finance Corp., 3.38%, 02/01/22‡		230,000		232,206
UAL Pass-Through Trust, Series 071A, 6.64%, 01/02/24(a)		1,265,254		1,364,893
Total Industrials				5,267,099
Information Technology — 1.1%
Apple, Inc., 2.25%, 02/23/21		325,000		324,921
Diamond 1 Finance Corp./Diamond 2 Finance Corp., 5.45%, 06/15/23‡		85,000		90,283
Dun & Bradstreet Corp. (The), 3.25%, 12/01/17		150,000		151,490
Dun & Bradstreet Corp. (The), 4.00%, 06/15/20		150,000		154,077
First Data Corp., 5.00%, 01/15/24‡		260,000		262,358
Hewlett Packard Enterprise Co., 2.45%, 10/05/17		435,000		437,500
Hewlett Packard Enterprise Co., 2.85%, 10/05/18		325,000		328,283
Hewlett Packard Enterprise Co., 3.60%, 10/15/20		65,000		66,182
Microsoft Corp., 1.55%, 08/08/21		650,000		630,859
Microsoft Corp., 2.00%, 08/08/23		140,000		133,935
Oracle Corp., 1.90%, 09/15/21		260,000		254,240
Oracle Corp., 2.40%, 09/15/23		155,000		150,302
Total Information Technology				2,984,430

Investments	Principal		Value
CORPORATE BONDS (continued)
Materials — 0.1%
Airgas, Inc., 3.05%, 08/01/20	$	43,000	$	43,985
Freeport-McMoRan, Inc., 3.88%, 03/15/23(a)		335,000		309,038
Total Materials				353,023
Real Estate — 1.9%
CoreCivic, Inc., 5.00%, 10/15/22(a)		450,000		451,125
Corporate Office Properties LP, 3.70%, 06/15/21		460,000		469,968
DDR Corp., 7.88%, 09/01/20		280,000		326,330
DDR Corp., 3.50%, 01/15/21		145,000		147,337
Digital Realty Trust LP, 3.40%, 10/01/20		420,000		427,595
Digital Realty Trust LP, 3.95%, 07/01/22		270,000		277,780
Education Realty Operating Partnership LP, 4.60%, 12/01/24		100,000		99,840
Government Properties Income Trust, 3.75%, 08/15/19		85,000		85,985
HCP, Inc., 3.75%, 02/01/19		140,000		143,997
Healthcare Trust of America Holdings LP, 3.38%, 07/15/21		150,000		151,216
Kimco Realty Corp., 3.40%, 11/01/22		105,000		106,688
MPT Operating Partnership LP/MPT Finance Corp., 6.38%, 02/15/22		45,000		46,687
National Retail Properties, Inc., 5.50%, 07/15/21		250,000		276,885
Select Income REIT, 4.15%, 02/01/22		515,000		510,544
Senior Housing Properties Trust, 3.25%, 05/01/19		415,000		416,466
Ventas Realty LP, 4.00%, 04/30/19		310,000		321,530
WEA Finance LLC/Westfield UK & Europe Finance PLC, 3.25%, 10/05/20‡		535,000		544,564
Total Real Estate				4,804,537
Telecommunication Services — 1.1%
AT&T, Inc., 3.88%, 08/15/21		210,000		217,042
AT&T, Inc., 3.00%, 06/30/22		1,045,000		1,027,068
Crown Castle International Corp., 4.88%, 04/15/22		355,000		378,892
Frontier Communications Corp., 10.50%, 09/15/22		645,000		680,507

See accompanying Notes to Financial Statements.

54

ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

Investments	Principal		Value
CORPORATE BONDS (continued)
Telecommunication Services (continued)
T-Mobile USA, Inc., 6.46%, 04/28/19	$	275,000	$	280,156
Verizon Communications, Inc., 3.65%, 09/14/18		50,000		51,672
Verizon Communications, Inc., 4.60%, 04/01/21		125,000		134,156
Total Telecommunication Services				2,769,493
Utilities — 0.3%
AmeriGas Finance LLC/AmeriGas Finance Corp., 7.00%, 05/20/22		88,000		92,785
Dominion Resources, Inc., 2.96%, 07/01/19		50,000		50,651
Exelon Corp., 2.85%, 06/15/20		555,000		561,372
Total Utilities				704,808
Total Corporate Bonds
(Cost $48,491,626)				48,818,202
TERM LOANS — 9.3%
Consumer Discretionary — 2.5%
Altice US Finance I Corp., 3.88%, 01/15/25@		477,560		484,127
AMC Entertainment Holdings, Inc. (fka AMC Entertainment Inc.), 3.51%, 12/15/23@		80,000		80,970
Aristocrat International Pty Ltd. (Australia), 3.63%, 10/20/21@		555,787		562,618
Boyd Gaming Corp., 4.00%, 08/14/20@		97,007		98,099
Boyd Gaming Corp., 3.76%, 09/15/23@		153,615		155,699
Caesars Entertainment Corp., 1.50%, 10/31/21@		129,052		151,717
CDS US Intermediate Holdings, Inc., 5.00%, 07/08/22@		532,263		537,774
Charter Communications Operating, LLC, 3.00%, 07/01/20@		606,820		610,655
Charter Communications Operating, LLC (aka CCO Safari LLC), 2.75%, 01/14/22@		89,325		89,911
Charter Communications Operating, LLC (aka CCO Safari LLC), 3.01%, 01/15/24@		76,423		76,996
Harbor Freight Tools USA, Inc., 3.89%, 08/18/23@		658,350		668,726

Investments	Principal		Value
TERM LOANS (continued)
Consumer Discretionary (continued)
Hilton Worldwide Finance LLC, 3.26%, 10/25/23@	$	719,865	$	729,180
Hilton Worldwide Finance, LLC, 3.50%, 10/26/20@		52,946		53,498
Libbey Glass, Inc., 3.75%, 04/09/21@		295,595		298,829
MGM Growth Properties Operating Partnership LP, 3.52%, 04/25/23@		622,298		630,409
PetSmart, Inc., 4.00%, 03/11/22@		524,600		526,806
Six Flags Theme Parks, Inc., 06/30/22@		131,218		132,432
Station Casinos LLC, 3.75%, 06/08/23@		308,450		312,963
Univision Communications, Inc., 4.00%, 03/01/20@		246,025		247,694
Total Consumer Discretionary				6,449,103
Consumer Staples — 1.4%
Albertson’s LLC, 3.77%, 08/25/21@		525,282		532,232
Aramark Services, Inc., 3.50%, 09/07/19@		323,626		327,319
Aramark Services, Inc., 3.50%, 02/24/21@		489,924		495,215
Coty, Inc., 3.09%, 10/27/22@		381,069		382,854
Dell International LLC, 4.00%, 09/07/23@		450,000		458,289
Galleria Co., 3.81%, 01/26/23@		180,952		182,167
Hostess Brands, LLC, 4.00%, 08/03/22@		898,010		909,347
Kronos, Inc., 5.00%, 11/01/23@		333,000		337,684
Pinnacle Foods Finance LLC, 3.51%, 01/13/23@		63,360		64,482
Total Consumer Staples				3,689,589
Energy — 0.2%
MEG Energy Corp. (Canada), 3.75%, 03/31/20@		565,134		551,359
Financials — 0.2%
Delos Finance Sarl (Luxembourg), 3.75%, 03/06/21@		289,000		291,477
RPI Finance Trust, 3.50%, 10/14/22@		246,301		249,482
Total Financials				540,959

See accompanying Notes to Financial Statements.

55

ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

Investments	Principal		Value
TERM LOANS (continued)
Health Care — 1.0%
Acadia Healthcare Co., Inc., 3.76%, 02/16/23@	$	179,095	$	180,886
CHS/Community Health Systems, Inc., 4.19%, 12/31/18@		229,739		226,532
CHS/Community Health Systems, Inc., 4.00%, 01/27/21@		512,061		497,447
Envision Healthcare Corp. (fka Emergency Medical Services Corp.), 4.00%, 12/01/23@		314,000		318,123
HCA, Inc., 4.02%, 03/17/23@		610,388		618,857
MPH Acquisition Holdings LLC, 5.00%, 06/07/23@		103,931		105,917
Team Health, Inc., 3.75%, 11/23/22@		223,744		224,350
Valeant Pharmaceuticals International, Inc. (Canada), 5.00%, 02/13/19@		249,954		250,204
Valeant Pharmaceuticals International, Inc. (Canada), 5.47%, 08/05/20@		260,000		259,801
Total Health Care				2,682,117
Industrials — 1.3%
Advanced Disposal Services, Inc. (fka ADS Waste Holdings, Inc.), 3.50%, 11/10/23@		644,293		650,872
Air Canada (Canada), 3.61%, 10/06/23@		97,000		97,828
American Airlines, Inc., 3.25%, 10/10/21@		248,920		250,845
American Airlines, Inc., 3.26%, 04/28/23@		500,000		503,490
AWAS Finance Luxembourg 2012 SA (Luxembourg), 3.63%, 07/16/18@		405,656		409,123
McGraw-Hill Global Education Holdings LLC, 5.00%, 05/04/22@		224,870		225,503
Quikrete Holdings, Inc., 11/15/23@		463,000		468,306
TransDigm, Inc., 4.00%, 06/04/21@		539,943		544,751
United Airlines, Inc., 3.50%, 09/15/21@		103,182		104,193
Total Industrials				3,254,911
Information Technology — 0.9%
Abacus Innovations Corp., 3.52%, 08/16/23@		191,000		193,200
Donnelley Financial Solutions, 5.00%, 09/29/23@		120,857		122,318

Investments	Principal		Value
TERM LOANS (continued)
Information Technology (continued)
First Data Corp., 3.76%, 03/24/21@	$	528,196	$	534,981
NXP BV (Netherlands), 3.27%, 12/07/20@		185,090		186,328
ON Semiconductor Corp., 4.02%, 03/31/23@		244,388		247,944
Rackspace Hosting, Inc., 4.50%, 11/03/23@		671,000		680,716
Western Digital Corp., 4.50%, 04/29/23@		299,495		304,736
Total Information Technology				2,270,223
Materials — 0.3%
Anchor Glass Container Corp., 4.25%, 12/07/23@		76,000		76,784
Huntsman International LLC, 3.96%, 04/01/23@		230,263		233,044
Ineos U.S. Finance LLC, 3.75%, 12/15/20@		192,815		194,041
PolyOne Corp., 3.50%, 11/11/22@		172,261		174,495
Total Materials				678,364
Real Estate — 0.1%
ESH Hospitality, Inc., 3.75%, 08/30/23@		91,770		93,053
Realogy Group LLC, 3.75%, 07/20/22@		288,623		290,970
Total Real Estate				384,023
Telecommunication Services — 0.7%
Level 3 Financing, Inc., 4.00%, 01/15/20@		225,000		228,375
Level 3 Financing, Inc., 3.50%, 05/31/22@		290,000		293,927
T-Mobile USA, Inc., 3.50%, 11/09/22@		378,180		383,438
UPC Financing Partnership, 4.08%, 08/31/24@		505,288		511,367
Virgin Media Bristol LLC, 4.07%, 01/31/25@		465,000		467,762
Total Telecommunication Services				1,884,869
Utilities — 0.7%
Calpine Corp., 3.75%, 01/15/24@		442,265		445,056
Dynegy, Inc., 5.00%, 06/27/23@		686,000		695,861
NRG Energy, Inc., 3.50%, 06/30/23@		387,467		391,966

See accompanying Notes to Financial Statements.

56

ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

Investments	Principal		Value
TERM LOANS (continued)
Utilities (continued)
Vistra Operations Co. LLC (fka Tex Operations Co. LLC), 5.00%, 08/04/23@	$	229,592	$	232,696
Vistra Operations Co. LLC (fka Tex Operations Co. LLC), 5.00%, 08/04/23@		52,041		52,745
Vistra Operations Co. LLC (fka Tex Operations Co. LLC), 4.00%, 12/14/23@		69,000		70,024
Total Utilities				1,888,348
Total Term Loans
(Cost $23,990,138)				24,273,865
FOREIGN BONDS — 5.1%
Consumer Discretionary — 0.4%
Delphi Automotive PLC (United Kingdom), 3.15%, 11/19/20		530,000		538,965
NCL Corp. Ltd. (Bermuda), 4.75%, 12/15/21‡		580,000		581,090
Total Consumer Discretionary				1,120,055
Energy — 0.6%
Encana Corp. (Canada), 3.90%, 11/15/21(a)		555,000		560,372
Petroleos Mexicanos (Mexico), 4.88%, 01/24/22		905,000		909,978
Total Energy				1,470,350
Financials — 2.1%
AerCap Ireland Capital Ltd./AerCap Global Aviation Trust (Ireland), 4.25%, 07/01/20		165,000		169,950
AerCap Ireland Capital Ltd./AerCap Global Aviation Trust (Ireland), 4.50%, 05/15/21		405,000		420,734
AerCap Ireland Capital Ltd./AerCap Global Aviation Trust (Ireland), 3.95%, 02/01/22		150,000		151,687
Corp. Andina de Fomento (Supranational), 2.00%, 05/10/19		420,000		417,788
Guanay Finance Ltd. (Chile), 6.00%, 12/15/20‡		584,391		593,157
HSBC Holdings PLC (United Kingdom), 2.95%, 05/25/21		640,000		640,150
Industrial & Commercial Bank of China Ltd. (China), 3.23%, 11/13/19		475,000		487,275
Korea Development Bank (The) (South Korea), 4.63%, 11/16/21		375,000		406,834

Investments	Principal		Value
FOREIGN BONDS (continued)
Financials (continued)
Mizuho Financial Group, Inc. (Japan), 2.27%, 09/13/21	$	785,000	$	762,752
Nordea Bank AB (Sweden), 1.63%, 09/30/19‡		940,000		928,462
UBS Group Funding Jersey Ltd. (Switzerland), 2.65%, 02/01/22‡		400,000		389,215
Total Financials				5,368,004
Health Care — 0.3%
Fresenius US Finance II, Inc. (Germany), 4.50%, 01/15/23‡		140,000		144,900
Teva Pharmaceutical Finance Netherlands III BV (Israel), 1.70%, 07/19/19		400,000		393,254
Teva Pharmaceutical Finance Netherlands III BV (Israel), 2.20%, 07/21/21		165,000		158,022
Teva Pharmaceutical Finance Netherlands III BV (Israel), 2.80%, 07/21/23		65,000		61,619
Total Health Care				757,795
Industrials — 0.3%
Air Canada Class B Pass-Through Trust (Canada), 5.38%, 05/15/21‡		431,703		443,035
BAE Systems Holdings, Inc. (United Kingdom), 2.85%, 12/15/20‡		145,000		145,344
British Airways Class B Pass-Through Trust (United Kingdom), 5.63%, 06/20/20‡		245,302		257,567
Total Industrials				845,946
Information Technology — 0.2%
NXP BV/NXP Funding LLC (Netherlands), 4.13%, 06/01/21‡		500,000		517,500
Materials — 0.4%
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC  (New Zealand), 4.38%, 07/15/21@‡		670,000		686,750
Teck Resources Ltd. (Canada), 8.00%, 06/01/21‡		55,000		60,638
Vale Overseas Ltd. (Brazil), 5.88%, 06/10/21(a)		275,000		288,750
Total Materials				1,036,138

See accompanying Notes to Financial Statements.

57

ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

Investments	Principal/ Shares		Value
FOREIGN BONDS (continued)
Sovereign Government — 0.5%
Indonesia Government International Bond (Indonesia), 3.70%, 01/08/22‡	$	455,000	$	457,160
Oman Government International Bond (Oman), 3.63%, 06/15/21‡		690,000		691,394
Provincia de Buenos Aires (Argentina), 5.75%, 06/15/19‡		205,000		214,010
Total Sovereign Government				1,362,564
Utilities — 0.3%
Majapahit Holding BV (Indonesia), 7.75%, 01/20/20‡		245,000		275,625
State Grid Overseas Investment 2014 Ltd. (China), 2.75%, 05/07/19‡		500,000		506,917
Total Utilities				782,542
Total Foreign Bonds
(Cost $13,137,484)				13,260,894
U.S. GOVERNMENT AGENCY SECURITIES — 1.5%
Federal National Mortgage Association, 2.50%, 02/01/31		1,183,047		1,186,314
Federal National Mortgage Association, 3.00%, 10/01/30		585,564		601,602
Federal National Mortgage Association, 3.00%, 10/01/30		840,201		863,214
Federal National Mortgage Association, 4.00%, 01/01/46		810,546		853,108
Federal National Mortgage Association, Class NA, Series 2009-36, 5.00%, 06/25/37		82,211		86,752
Federal National Mortgage Association, Class PA, Series 2012-10, 4.00%, 11/25/41		195,249		200,232
Total U.S. Government Agency Securities
(Cost $3,852,328)				3,791,222
U.S. TREASURY NOTE — 0.4%
U.S. Treasury Note, 01/31/21, 1.38%
(Cost $1,007,017)		1,000,000		984,023
MONEY MARKET FUND — 6.9%
JP Morgan US Government Money Market Fund – Institutional Class, 0.41%(b)
(Cost $17,865,582)		17,865,582		17,865,582

Investments	Principal		Value
REPURCHASE AGREEMENTS — 0.8%(c)
Citigroup Global Markets, Inc., dated 12/30/16, due 01/03/17, 0.53%, total to be received $488,877, (collateralized by various U.S. Government Agency Obligations, 2.00% – 8.50%, 12/01/17 – 01/01/47, totaling $497,081)	$	488,863	$	488,863
JP Morgan Securities LLC, dated 12/30/16, due 01/03/17, 0.50%, total to be received $144,889, (collateralized by various U.S. Government Agency Obligations, 0.00% – 1.38%, 04/13/17 – 08/31/21, totaling $147,414)		144,885		144,885
Merrill Lynch Pierce Fenner & Smith, Inc., dated 12/30/16, due 01/03/17, 0.50%, total to be received $488,877, (collateralized by various U.S. Government Agency Obligations, 1.74% – 6.00%, 08/01/22 – 01/15/49, totaling $497,345)		488,863		488,863
Mizuho Securities USA, Inc., dated 12/30/16, due 01/03/17, 0.48%, total to be received $488,876, (collateralized by various U.S. Government Agency Obligations, 2.00% – 6.50%, 07/01/24 – 09/20/46, totaling $497,385)		488,863		488,863
RBC Dominion Securities, Inc., dated 12/30/16, due 01/03/17, 0.52%, total to be received $488,877, (collateralized by various U.S. Government Agency Obligations, 0.88% – 7.00%, 02/13/17 – 01/01/47, totaling $497,229)		488,863		488,863
Total Repurchase Agreements
(Cost $2,100,337)				2,100,337
Total Investments — 100.8%
(Cost $263,329,783)				261,835,679
Liabilities in Excess of Other Assets — (0.8%)				(1,989,002	)
Net Assets — 100.0%			$	259,846,677

See accompanying Notes to Financial Statements.

58

ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

____________

LP — Limited Partnership

PLC — Public Limited Company

^Is in default.

#Perpetual security with no stated maturity date.

@Variable rate instrument. The interest rate shown reflects the rate in effect at December 31, 2016.

‡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.

(a)All or a portion of security is on loan. The aggregate market value of the securities on loan is $2,373,953; the aggregate market value of the collateral held by the fund is $2,433,870. The aggregate market value of the collateral includes non-cash U.S. Treasury securities collateral having a value of $333,533.

(b)Rate shown reflects the 7-day yield as of December 31, 2016.

(c)Collateral received from brokers for securities lending was invested in these short-term investments.

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Asset Backed Securities	25.8	%
Commercial Mortgage Backed Securities	13.0
Consumer Discretionary	4.6
Consumer Staples	1.5
Energy	2.4
Financials	9.5
Health Care	3.0
Industrials	3.6
Information Technology	2.2
Materials	0.8
Real Estate	2.0
Residential Mortgage Backed Securities	19.0
Sovereign Government	0.5
Telecommunication Services	1.8
U.S. Government Agency Securities	1.7
U.S. Treasury Note	0.4
Utilities	1.3
Money Market Fund	6.9
Repurchase Agreements	0.8
Total Investments	100.8
Liabilities in Excess of Other Assets	(0.8	)
Net Assets	100.0	%

See accompanying Notes to Financial Statements.

59

ADVISORSHARES PACIFIC ASSET ENHANCED FLOATING RATE ETF

Schedule of Investments

December 31, 2016 (Unaudited)

Investments	Principal		Value
TERM LOANS — 83.9%
Advertising — 1.7%
Acosta, Inc., 4.25%, 09/26/21@	$	491,266	$	480,367
Aerospace & Defense — 3.3%
Accudyne Industries Borrower SCA, 4.00%, 12/13/19 (Luxembourg)@		488,586		463,197
TransDigm, Inc., 3.75%, 06/09/23@		437,889		442,979
Total Aerospace & Defense				906,176
Auto Parts & Equipment — 2.6%
Cooper-Standard Automotive, Inc., 3.75%, 11/02/23@		227,806		230,558
Federal-Mogul Holdings Corp., 4.75%, 04/15/21@		491,206		487,522
Total Auto Parts & Equipment				718,080
Building Materials — 1.8%
GYP Holdings III Corp., 4.50%, 04/01/21@		491,212		496,124
Chemicals — 0.9%
MacDermid, Inc., 5.00%, 06/07/23@		245,011		248,626
Commercial Services — 3.7%
Brightview Landscapes LLC, 4.00%, 12/18/20@		245,581		246,599
Brightview Landscapes LLC, 7.50%, 12/17/21@		250,000		252,031
Camelot Finance LP, 4.75%, 10/03/23@		498,750		505,503
Total Commercial Services				1,004,133
Computers — 1.5%
Western Digital Corp., 4.52%, 04/29/23@		398,000		404,965
Distribution/Wholesale — 5.4%
Nexeo Solutions LLC, 5.25%, 06/09/23@		497,500		502,475
Spin Holdco, Inc., 4.25%, 11/14/19@		490,614		489,868
Univar USA, Inc., 4.25%, 07/01/22@		493,750		499,201
Total Distribution/Wholesale				1,491,544
Diversified Financial Services — 0.9%
AlixPartners LLP, 4.00%, 07/28/22@		246,881		249,372

Investments	Principal		Value
TERM LOANS (continued)
Entertainment — 1.8%
Scientific Games International, Inc., 6.00%, 10/01/21@	$	490,000	$	497,007
Environmental Control — 0.9%
Waste Industries USA, Inc., 3.52%, 02/27/20@		245,625		247,429
Food — 3.1%
Albertsons LLC, 4.06%, 06/22/23@		349,091		354,061
U.S. Foods, Inc., 3.75%, 06/27/23@		491,187		497,071
Total Food				851,132
Hand/Machine Tools — 1.8%
Apex Tool Group LLC, 4.50%, 01/31/20@		490,447		487,178
Healthcare – Services — 3.5%
CHS/Community Health Systems, Inc., 3.75%, 12/31/19@		167,662		163,105
CHS/Community Health Systems, Inc., 4.00%, 01/27/21@		308,496		299,692
IASIS Healthcare LLC, 4.50%, 05/03/18@		491,049		488,289
Total Healthcare – Services				951,086
Insurance — 1.7%
HUB International Ltd., 4.00%, 10/02/20@		244,962		247,204
USI, Inc., 4.25%, 12/27/19@		230,260		231,964
Total Insurance				479,168
Internet — 2.6%
Uber Technologies, Inc., 5.00%, 07/13/23@		498,750		500,620
Zayo Group LLC, 3.75%, 05/06/21@		223,071		225,828
Total Internet				726,448
Leisure Time — 3.1%
24 Hour Fitness Worldwide, Inc., 4.75%, 05/28/21@		244,975		243,138
BRP US, Inc., 3.75%, 06/30/23 (Canada)@		250,000		252,890
ClubCorp Club Operations, Inc., 4.00%, 12/15/22@		361,205		365,871
Total Leisure Time				861,899

See accompanying Notes to Financial Statements.

60

ADVISORSHARES PACIFIC ASSET ENHANCED FLOATING RATE ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

Investments	Principal		Value
TERM LOANS (continued)
Lodging — 4.4%
Boyd Gaming Corp., 3.76%, 09/15/23@	$	498,750	$	505,518
Caesars Entertainment Resort Properties LLC, 7.00%, 10/09/20@		244,950		247,629
Caesars Growth Properties Holdings LLC, 6.25%, 05/08/21@		244,975		247,196
Hilton Worldwide Finance LLC, 3.50%, 10/26/20@		14,085		14,232
Hilton Worldwide Finance LLC, 3.26%, 10/25/23@		191,507		193,985
Total Lodging				1,208,560
Machinery – Diversified — 2.3%
Clark Equipment Co., 4.50%, 05/28/21 (South Korea)@		198,471		201,573
RBS Global, Inc., 3.75%, 08/21/23@		417,105		419,503
Total Machinery – Diversified				621,076
Media — 1.7%
Altice US Finance I Corp., 3.88%, 01/15/25@		246,815		250,209
iHeartCommunications, Inc., 7.52%, 01/30/19@		250,000		204,375
Total Media				454,584
Miscellaneous Manufacturing — 0.9%
Gates Global LLC, 4.25%, 07/05/21@		241,431		241,972
Oil & Gas — 3.8%
Chesapeake Energy Corp., 8.50%, 08/23/21@		500,000		545,625
EP Energy LLC, 9.75%, 06/30/21@		250,000		262,188
Fieldwood Energy LLC, 8.00%, 08/31/20@		250,000		238,437
Total Oil & Gas				1,046,250
Packaging & Containers — 6.9%
Ardagh Holdings USA, Inc., 4.00%, 12/17/21 (Ireland)@		464,895		470,997
BWAY Holding Co., 4.75%, 08/24/23@		473,521		475,683
Reynolds Group Holdings, Inc., 4.25%, 02/05/23 (New Zealand)@		449,223		455,809

Investments	Principal		Value
TERM LOANS (continued)
Packaging & Containers (continued)
SIG Combibloc, 4.00%, 03/11/22 (Luxembourg)@	$	476,964	$	481,586
Total Packaging & Containers				1,884,075
Pharmaceuticals — 1.7%
Valeant Pharmaceuticals International, Inc., 5.50%, 04/01/22@		480,752		481,815
Real Estate — 1.8%
DTZ US Borrower LLC, 4.25%, 11/04/21@		497,475		500,895
Retail — 16.5%
1011778 BC ULC, 3.75%, 12/10/21 (Canada)@		373,756		377,611
BJ’s Wholesale Club, Inc., 4.50%, 09/26/19@		479,351		484,669
CEC Entertainment, Inc., 4.00%, 02/15/21@		489,924		489,109
Dollar Tree, Inc., 3.25%, 07/06/22@		47,468		47,988
Michaels Stores, Inc., 3.75%, 01/27/23@		201,338		203,965
Neiman Marcus Group Ltd. LLC, 4.25%, 10/25/20@		491,162		428,416
NPC International, Inc., 4.75%, 12/28/18@		490,348		493,413
Petco Animal Supplies, Inc., 5.00%, 01/26/23@		498,744		502,130
PetSmart, Inc., 4.00%, 03/10/22@		492,500		494,571
Rite Aid Corp., 5.75%, 08/21/20@		250,000		252,239
Smart & Final Stores LLC, 4.50%, 11/15/22@		250,000		249,922
SRS Distribution Inc., 5.25%, 08/25/22@		498,741		507,157
Total Retail				4,531,190
Semiconductors — 1.8%
Microsemi Corp., 3.75%, 01/15/23@		107,560		108,784
ON Semiconductor Corp., 4.02%, 03/31/23@		374,063		379,505
Total Semiconductors				488,289
Software — 1.8%
Infor U.S., Inc., 3.75%, 06/03/20@		240,661		241,388

See accompanying Notes to Financial Statements.

61

ADVISORSHARES PACIFIC ASSET ENHANCED FLOATING RATE ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

Investments	Principal		Value
TERM LOANS (continued)
Software (continued)
Solera LLC, 5.75%, 03/03/23@	$	248,125	$	251,847
Total Software				493,235
Total Term Loans
(Cost $22,924,169)				23,052,675
CORPORATE BONDS — 8.1%
Diversified Financial Services — 0.9%
Jefferies Finance LLC, 7.38%, 04/01/20‡		250,000		251,250
Electric — 0.9%
Dynegy, Inc., 6.75%, 11/01/19(a)		250,000		255,625
Entertainment — 0.5%
Penn National Gaming, Inc., 5.88%, 11/01/21(a)		124,000		129,890
Healthcare – Services — 0.9%
Tenet Healthcare Corp., 8.00%, 08/01/20		250,000		247,525
Home Builders — 0.9%
Lennar Corp., 4.50%, 06/15/19		250,000		259,375
Lodging — 1.5%
Caesars Entertainment Resort Properties LLC, 8.00%, 10/01/20		125,000		131,562
MGM Resorts International, 6.75%, 10/01/20		250,000		278,750
Total Lodging				410,312
Media — 1.0%
CSC Holdings LLC, 6.63%, 10/15/25‡		250,000		273,750
Real Estate — 0.6%
Howard Hughes Corp. (The), 6.88%, 10/01/21‡		150,000		158,820

Investments	Principal		Value
CORPORATE BONDS (continued)
Telecommunications — 0.9%
Sprint Communications, Inc., 6.00%, 11/15/22	$	250,000	$	252,500
Total Corporate Bonds
(Cost $2,179,245)				2,239,047
MONEY MARKET FUND — 7.0%
JP Morgan US Government Money Market Fund – Institutional Class, 0.41%(b) (Cost $1,922,642)		1,922,642		1,922,642
REPURCHASE AGREEMENT — 0.5%(c)
HSBC Securities USA, Inc., dated 12/30/16, due 01/03/17, 0.45%, total to be received $127,267, (collateralized by various U.S. Government Agency Obligations, 0.88% – 3.00%, 05/15/17 – 05/15/46, totaling $129,318)
(Cost $127,264)		127,264		127,264
Total Investments — 99.5%
(Cost $27,153,320)				27,341,628
Other Assets in Excess of Liabilities — 0.5%				145,624
Net Assets — 100.0%			$	27,487,252

____________

LP — Limited Partnership

@Variable rate instrument. The interest rate shown reflects the rate in effect at December 31, 2016.

‡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.

(a)All or a portion of security is on loan. The aggregate market value of the securities on loan is $367,930; the aggregate market value of the collateral held by the fund is $376,620. The aggregate market value of the collateral includes non-cash U.S. Treasury securities collateral having a value of $249,356.

(b)Rate shown reflects the 7-day yield as of December 31, 2016.

(c)Collateral received from brokers for securities lending was invested in these short-term investments.

See accompanying Notes to Financial Statements.

62

ADVISORSHARES PACIFIC ASSET ENHANCED FLOATING RATE ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Advertising	1.7	%
Aerospace & Defense	3.3
Auto Parts & Equipment	2.6
Building Materials	1.8
Chemicals	0.9
Commercial Services	3.7
Computers	1.5
Distribution/Wholesale	5.4
Diversified Financial Services	1.8
Electric	0.9
Entertainment	2.3
Environmental Control	0.9
Food	3.1
Hand/Machine Tools	1.8
Healthcare – Services	4.4
Home Builders	0.9
Insurance	1.7
Internet	2.6
Leisure Time	3.1
Lodging	5.9
Machinery – Diversified	2.3
Media	2.7
Miscellaneous Manufacturing	0.9
Oil & Gas	3.8
Packaging & Containers	6.9
Pharmaceuticals	1.7
Real Estate	2.4
Retail	16.5
Semiconductors	1.8
Software	1.8
Telecommunications	0.9
Money Market Fund	7.0
Repurchase Agreement	0.5
Total Investments	99.5
Other Assets in Excess of Liabilities	0.5
Net Assets	100.0	%

Total Return Swaps contracts outstanding as of December 31, 2016:

Reference Entity	Number of Contracts	Annual Financing Rate Received (Paid)		Termination Date	Notional Amounts		Fair Value		Unrealized Appreciation/ (Depreciation)
iBoxx USD Liquid Leveraged Loans	3,000,000	(0.65	)%	3/20/2017	$	3,000,000	$	3,143,918	$	143,918

J.P Morgan Chase Bank acts as the counterparty to the total return swap contracts listed above. The Fund either receives fees from, or pays fees to, the counterparty, depending upon the total return of the benchmark, and the agreed-upon floating financing rate.

See accompanying Notes to Financial Statements.

63

ADVISORSHARES PERITUS HIGH YIELD ETF

Schedule of Investments

December 31, 2016 (Unaudited)

Investments	Principal		Value
CORPORATE BONDS — 67.3%
Aerospace/Defense — 1.0%
Triumph Group, Inc., 5.25%, 06/01/22	$	2,146,000	$	2,011,875
Agriculture — 1.0%
Alliance One International, Inc., 8.50%, 04/15/21‡(a)		1,922,000		1,955,635
Auto Parts & Equipment — 1.7%
Cooper-Standard Automotive, Inc., 5.63%, 11/15/26‡		1,028,000		1,019,005
Titan International, Inc., 6.88%, 10/01/20		2,348,000		2,309,845
Total Auto Parts & Equipment				3,328,850
Biotechnology — 1.6%
AMAG Pharmaceuticals, Inc., 7.88%, 09/01/23‡		3,124,000		3,139,620
Chemicals — 2.5%
CVR Partners LP/CVR Nitrogen Finance Corp., 9.25%, 06/15/23‡(a)		2,916,000		3,014,415
Hexion, Inc., 10.00%, 04/15/20		2,014,000		2,011,483
Total Chemicals				5,025,898
Commercial Services — 4.8%
Constellis Holdings LLC/Constellis Finance Corp., 9.75%, 05/15/20‡		2,438,000		2,511,140
LSC Communications, Inc., 8.75%, 10/15/23‡		930,000		936,975
Quad/Graphics, Inc., 7.00%, 05/01/22(a)		3,371,000		3,303,580
StoneMor Partners LP/Cornerstone Family Services of West Virginia Subsidiary, 7.88%, 06/01/21(a)		2,079,000		1,902,285
United Rentals North America, Inc., 5.50%, 05/15/27		930,000		924,188
Total Commercial Services				9,578,168
Computers — 1.7%
Conduent Finance, Inc./Xerox Business Services LLC, 10.50%, 12/15/24‡		242,000		259,545
Harland Clarke Holdings Corp., 9.25%, 03/01/21‡		3,562,000		3,147,918
Total Computers				3,407,463

Investments	Principal		Value
CORPORATE BONDS (continued)
Diversified Financial Services — 3.3%
Alliance Data Systems Corp., 5.88%, 11/01/21‡	$	1,402,000	$	1,426,535
CNG Holdings, Inc., 9.38%, 05/15/20‡		1,962,000		1,711,845
Speedy Cash Intermediate Holdings Corp., 10.75%, 05/15/18‡		3,529,000		3,396,662
Total Diversified Financial Services				6,535,042
Electric — 0.7%
Dynegy, Inc., 8.00%, 01/15/25‡(a)		1,402,000		1,321,385
Electrical Components & Equipment — 1.5%
Artesyn Embedded Technologies, Inc., 9.75%, 10/15/20‡		3,340,000		3,072,800
Electronics — 1.1%
Kemet Corp., 10.50%, 05/01/18(a)		2,172,000		2,170,643
Energy – Alternate Sources — 1.0%
Enviva Partners LP/Enviva Partners Finance Corp., 8.50%, 11/01/21‡		1,872,000		1,956,240
Entertainment — 1.9%
AMC Entertainment Holdings, Inc., 5.88%, 11/15/26‡		1,166,000		1,195,150
Lions Gate Entertainment Corp., 5.88%, 11/01/24‡		1,402,000		1,430,040
Mohegan Tribal Gaming Authority, 7.88%, 10/15/24‡(a)		1,166,000		1,193,692
Total Entertainment				3,818,882
Environmental Control — 0.5%
Advanced Disposal Services, Inc., 5.63%, 11/15/24‡		930,000		927,675
Food — 3.8%
Bi-Lo LLC/Bi-Lo Finance Corp., 9.25%, 02/15/19‡(a)		3,569,000		3,042,572
Simmons Foods, Inc., 7.88%, 10/01/21‡		2,007,000		2,072,228
SUPERVALU, Inc., 6.75%, 06/01/21(a)		2,411,000		2,447,165
Total Food				7,561,965

See accompanying Notes to Financial Statements.

64

ADVISORSHARES PERITUS HIGH YIELD ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

Investments	Principal		Value
CORPORATE BONDS (continued)
Food Service — 0.6%
AdvancePierre Foods Holdings, Inc., 5.50%, 12/15/24‡	$	1,176,000	$	1,189,971
Gas — 1.0%
AmeriGas Partners LP/AmeriGas Finance Corp., 5.50%, 05/20/25		494,000		500,792
NGL Energy Partners LP/NGL Energy Finance Corp., 7.50%, 11/01/23‡		1,402,000		1,454,575
Total Gas				1,955,367
Healthcare – Products — 2.0%
Greatbatch Ltd., 9.13%, 11/01/23‡		1,899,000		1,899,000
Mallinckrodt International Finance SA / Mallinckrodt CB LLC, 5.63%, 10/15/23‡		2,257,000		2,115,938
Total Healthcare – Products				4,014,938
Healthcare – Services — 1.7%
Envision Healthcare Corp., 6.25%, 12/01/24‡		1,212,000		1,281,690
Select Medical Corp., 6.38%, 06/01/21(a)		2,056,000		2,066,280
Tenet Healthcare Corp., 7.50%, 01/01/22‡		92,000		96,140
Total Healthcare – Services				3,444,110
Lodging — 1.7%
Hilton Grand Vacations Borrower LLC/Hilton Grand Vacations Borrower, Inc., 6.13%, 12/01/24‡		1,471,000		1,535,356
Jack Ohio Finance LLC/Jack Ohio Finance 1 Corp., 6.75%, 11/15/21‡		930,000		943,950
Jack Ohio Finance LLC/Jack Ohio Finance 1 Corp., 10.25%, 11/15/22‡		930,000		948,600
Total Lodging				3,427,906
Machinery – Diversified — 1.0%
Xerium Technologies, Inc., 9.50%, 08/15/21‡		2,080,000		2,080,000
Media — 2.3%
CBS Radio, Inc., 7.25%, 11/01/24‡(a)		1,735,000		1,826,087
Lee Enterprises, Inc., 9.50%, 03/15/22‡(a)		2,626,000		2,796,690
Total Media				4,622,777

Investments	Principal		Value
CORPORATE BONDS (continued)
Mining — 1.7%
Alcoa Nederland Holding BV, 6.75%, 09/30/24‡	$	1,500,000	$	1,631,250
Alcoa Nederland Holding BV, 7.00%, 09/30/26‡		1,500,000		1,646,250
Total Mining				3,277,500
Miscellaneous Manufacturing — 2.6%
Koppers, Inc., 7.88%, 12/01/19(a)		2,030,000		2,060,450
Techniplas LLC, 10.00%, 05/01/20‡		3,448,000		3,008,380
Total Miscellaneous Manufacturing				5,068,830
Oil & Gas — 6.4%
Alta Mesa Holdings LP/Alta Mesa Finance Services Corp., 7.88%, 12/15/24‡		1,225,000		1,274,000
Calumet Specialty Products Partners LP/Calumet Finance Corp., 11.50%, 01/15/21‡		1,838,000		2,109,105
Chesapeake Energy Corp., 8.00%, 01/15/25‡		1,225,000		1,254,094
EP Energy LLC/Everest Acquisition Finance, Inc., 8.00%, 11/29/24‡(a)		1,212,000		1,308,596
Gulfport Energy Corp., 6.00%, 10/15/24‡		1,402,000		1,433,545
Parsley Energy LLC/Parsley Finance Corp., 5.38%, 01/15/25‡		1,471,000		1,483,356
Rowan Cos., Inc., 7.38%, 06/15/25(a)		1,471,000		1,504,098
Sanchez Energy Corp., 7.75%, 06/15/21(a)		2,399,000		2,452,978
Total Oil & Gas				12,819,772
Pharmaceuticals — 1.9%
Horizon Pharma, Inc./Horizon Pharma USA, Inc., 8.75%, 11/01/24‡		2,436,000		2,478,630
inVentiv Group Holdings, Inc./inVentiv Health, Inc./inVentiv Health Clinical, Inc., 7.50%, 10/01/24‡		1,166,000		1,227,098
Total Pharmaceuticals				3,705,728

See accompanying Notes to Financial Statements.

65

ADVISORSHARES PERITUS HIGH YIELD ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

Investments	Principal		Value
CORPORATE BONDS (continued)
Pipelines — 4.0%
American Midstream Partners LP / American Midstream Finance Corp., 8.50%, 12/15/21‡	$	990,000	$	985,050
Cheniere Corpus Christi Holdings LLC, 5.88%, 03/31/25‡		1,471,000		1,506,392
Crestwood Midstream Partners LP / Crestwood Midstream Finance Corp., 6.25%, 04/01/23		1,838,000		1,883,950
Martin Midstream Partners LP/Martin Midstream Finance Corp., 7.25%, 02/15/21(a)		2,262,000		2,245,035
Tesoro Logistics LP / Tesoro Logistics Finance Corp., 5.25%, 01/15/25		1,225,000		1,255,625
Total Pipelines				7,876,052
Real Estate — 0.5%
Crescent Communities LLC/Crescent Ventures Inc., 8.88%, 10/15/21‡		930,000		941,625
Real Estate Investment Trusts — 1.2%
Communications Sales & Leasing, Inc. / CSL Capital LLC, 7.13%, 12/15/24‡		1,471,000		1,489,388
QCP SNF West/Central/East/AL REIT LLC, 8.13%, 11/01/23‡(a)		930,000		936,975
Total Real Estate Investment Trusts				2,426,363
Retail — 2.7%
Ferrellgas Partners LP/Ferrellgas Partners Finance Corp., 8.63%, 06/15/20(a)		2,017,000		1,996,830
Guitar Center, Inc., 6.50%, 04/15/19‡(a)		2,249,000		2,052,213
Landry’s, Inc., 6.75%, 10/15/24‡		1,374,000		1,398,045
Total Retail				5,447,088
Semiconductors — 1.1%
Amkor Technology, Inc., 6.38%, 10/01/22(a)		2,162,000		2,261,992
Software — 1.7%
Genesys Telecommunications Laboratories, Inc./Greeneden Lux 3 Sarl/Greeneden US Holdings, 10.00%, 11/30/24‡		488,000		519,720

Investments	Principal		Value
CORPORATE BONDS (continued)
Software (continued)
Inception Merger Sub, Inc. / Rackspace Hosting, Inc., 8.63%, 11/15/24‡	$	1,637,000	$	1,736,775
JDA Escrow LLC / JDA Bond Finance, Inc., 7.38%, 10/15/24‡(a)		1,116,000		1,160,640
Total Software				3,417,135
Telecommunications — 5.1%
EarthLink Holdings Corp., 8.88%, 05/15/19		844,000		864,678
Frontier Communications Corp., 11.00%, 09/15/25(a)		2,016,000		2,089,080
Gogo Intermediate Holdings LLC / Gogo Finance Co., Inc., 12.50%, 07/01/22‡		1,654,000		1,798,725
GTT Escrow Corp., 7.88%, 12/31/24‡		242,000		252,938
Trilogy International Partners LLC / Trilogy International Finance, Inc., 13.38%, 05/15/19‡		1,838,000		1,893,140
Windstream Services LLC, 7.75%, 10/01/21(a)		3,056,000		3,156,848
Total Telecommunications				10,055,409
Total Corporate Bonds
(Cost $131,603,763)				133,844,704
TERM LOANS — 18.3%
Advertising — 1.2%
Affinion Group, Inc., 6.75%, 04/30/18@		2,460,776		2,454,624
Agriculture — 1.0%
North Atlantic Trading Co., Inc., 9.25%, 01/13/20@		2,044,108		2,031,332
Coal — 0.7%
Murray Energy Corp., 8.75%, 04/16/20@		1,500,000		1,435,500
Commercial Services — 1.0%
Jackson Hewitt Tax Service, Inc., 8.00%, 07/24/20@		1,960,000		1,893,850
Electronics — 1.8%
Isola USA Corp., 9.25%, 11/29/18@		4,201,512		3,676,323

See accompanying Notes to Financial Statements.

66

ADVISORSHARES PERITUS HIGH YIELD ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

Investments	Principal		Value
TERM LOANS (continued)
Food — 2.2%
Flavors Holdings, Inc., 6.75%, 04/03/20@	$	2,535,699	$	2,066,594
Shearer’s Foods LLC, 7.75%, 06/30/22@		2,431,000		2,272,985
Total Food				4,339,579
Forest Products & Paper — 1.9%
Appvion, Inc., 6.25%, 06/28/19@		2,019,025		1,944,998
Verso Paper Holdings LLC, 12.00%, 10/14/21@		1,920,000		1,879,209
Total Forest Products & Paper				3,824,207
Healthcare – Services — 3.2%
21st Century Oncology, Inc., 7.13%, 04/28/22@		1,984,899		1,836,032
Lantheus Medical Imaging, Inc., 7.00%, 06/30/22@		1,939,008		1,943,856
Radnet Management, Inc., 8.00%, 03/19/21@		2,613,333		2,588,833
Total Healthcare – Services				6,368,721
Oil & Gas — 1.9%
Osum Production Corp., 6.50%, 07/31/20 (Canada)@		4,852,815		3,760,931
Software — 1.1%
Greenway Health LLC, 9.25%, 11/04/21@		2,253,846		2,197,500
Telecommunications — 1.2%
Global Tel*Link Corp, 9.00%, 11/20/20@		2,375,000		2,312,359
Transportation — 1.1%
YRC Worldwide, Inc., 8.00%, 02/13/19@		2,220,271		2,206,861
Total Term Loans
(Cost $38,481,884)				36,501,787
FOREIGN BONDS — 11.7%
Biotechnology — 1.0%
Concordia International Corp., 9.00%, 04/01/22 (Canada)‡(a)		2,259,000		1,922,974
Chemicals — 1.7%
Kissner Holdings LP / Kissner Milling Co. Ltd. / BSC Holding, Inc. / Kissner USA, 8.38%, 12/01/22 (Canada)‡		1,402,000		1,419,525
Perstorp Holding AB, 8.50%, 06/30/21 (Sweden)‡		2,000,000		2,005,000
Total Chemicals				3,424,525

Investments	Principal		Value
FOREIGN BONDS (continued)
Environmental Control — 0.6%
Tervita Escrow Corp., 7.63%, 12/01/21 (Canada)‡(a)	$	1,225,000	$	1,252,563
Home Builders — 0.6%
Mattamy Group Corp., 6.88%, 12/15/23 (Canada)‡		1,225,000		1,246,437
Lodging — 1.0%
Studio City Co. Ltd., 5.88%, 11/30/19 (Hong Kong)‡(a)		1,000,000		1,030,000
Studio City Co. Ltd., 7.25%, 11/30/21 (Hong Kong)‡		1,000,000		1,037,500
Total Lodging				2,067,500
Media — 1.0%
Ziggo Bond Finance BV, 6.00%, 01/15/27 (Netherlands)‡		750,000		729,375
Ziggo Secured Finance BV, 5.50%, 01/15/27 (Netherlands)‡		1,250,000		1,221,625
Total Media				1,951,000
Mining — 1.3%
Alamos Gold, Inc., 7.75%, 04/01/20 (Canada)‡		2,051,000		2,143,295
Hudbay Minerals, Inc., 7.25%, 01/15/23 (Canada)‡		194,000		201,275
Hudbay Minerals, Inc., 7.63%, 01/15/25 (Canada)‡		193,000		201,083
Total Mining				2,545,653
Miscellaneous Manufacturing — 1.2%
Bombardier, Inc., 6.13%, 01/15/23 (Canada)‡		2,405,000		2,304,952
Oil & Gas — 1.7%
Noble Holding International Ltd., 7.75%, 01/15/24 (United Kingdom)(a)		990,000		933,669
Northern Blizzard Resources, Inc., 7.25%, 02/01/22 (Canada)‡		2,422,000		2,422,000
Total Oil & Gas				3,355,669
Transportation — 1.6%
Global Ship Lease, Inc., 10.00%, 04/01/19 (United Kingdom)‡		3,475,000		3,197,000
Total Foreign Bonds
(Cost $23,403,612)				23,268,273

See accompanying Notes to Financial Statements.

67

ADVISORSHARES PERITUS HIGH YIELD ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

Investments	Shares/ Principal		Value
MONEY MARKET FUNDS — 3.8%
BlackRock Liquidity Funds FedFund Portfolio, Institutional Class, 0.42%(b)(c)		810,000	$	810,000
Federated Government Obligations Fund, Institutional Class, 0.43%(b)(c)		905,000		905,000
Fidelity Investments Money Market Funds – Government Portfolio, Institutional Class, 0.43%(b)(c)		983,000		983,000
JPMorgan U.S. Government Money Market Fund – Institutional Class, 0.41%(b)		2,362,038		2,362,038
JPMorgan U.S. Government Money Market Fund, Institutional Class, 0.44%(b)(c)		810,000		810,000
Morgan Stanley Institutional Liquidity Funds – Government Portfolio, Institutional Class, 0.44%(b)(c)		810,000		810,000
STIT – Government & Agency Portfolio, Institutional Class, 0.43%(b)(c)		810,000		810,000
Total Money Market Funds
(Cost $7,490,038)				7,490,038
REPURCHASE AGREEMENTS — 9.1%(c)
Citigroup Global Markets, Inc., dated 12/30/16, due 01/03/17, 0.53%, total to be received $5,421,784, (collateralized by various U.S. Government Agency Obligations, 2.00% – 8.50%, 12/01/17 – 01/01/47, totaling $5,512,762)	$	5,421,624		5,421,624
HSBC Securities USA, Inc., dated 12/30/16, due 01/03/17, 0.45%, total to be received $1,900,637, (collateralized by various U.S. Government Agency Obligations, 0.88% – 3.00%, 05/15/17 – 05/15/46, totaling $1,931,263)		1,900,589		1,900,589
Merrill Lynch Pierce Fenner & Smith, Inc., dated 12/30/16, due 01/03/17, 0.50%, total to be received $5,421,775, (collateralized by various U.S. Government Agency Obligations, 1.74% – 6.00%, 08/01/22 – 01/15/49, totaling $5,515,692)		5,421,624		5,421,624

Investments	Principal		Value
REPURCHASE AGREEMENTS(continued)
RBC Dominion Securities, Inc., dated 12/30/16, due 01/03/17, 0.52%, total LP to be received $5,421,781, (collateralized by various U.S. Government Agency Obligations, 0.88% – 7.00%, 02/13/17 – 01/01/47, totaling $5,514,410)	$	5,421,624	$	5,421,624
Total Repurchase Agreements
(Cost $18,165,461)				18,165,461
Total Investments — 110.2%
(Cost $219,144,758)				219,270,263
Liabilities in Excess of Other Assets — (10.2%)				(20,221,294)
Net Assets — 100.0%			$	199,048,969

____________

LP — Limited Partnership

@Variable rate instrument. The interest rate shown reflects the rate in effect at December 31, 2016.

‡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.

(a)All or a portion of security is on loan. The aggregate market value of the securities on loan is $33,328,565; the aggregate market value of the collateral held by the fund is $34,121,877. The aggregate market value of the collateral includes non-cash U.S. Treasury securities collateral having a value of $10,828,416.

(b)Rate shown reflects the 7-day yield as of December 31, 2016.

(c)Collateral received from brokers for securities lending was invested in these short-term investments.

See accompanying Notes to Financial Statements.

68

ADVISORSHARES PERITUS HIGH YIELD ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Advertising	1.2	%
Aerospace/Defense	1.0
Agriculture	2.0
Auto Parts & Equipment	1.7
Biotechnology	2.6
Chemicals	4.2
Coal	0.7
Commercial Services	5.8
Computers	1.7
Diversified Financial Services	3.3
Electric	0.7
Electrical Components & Equipment	1.5
Electronics	2.9
Energy – Alternate Sources	1.0
Entertainment	1.9
Environmental Control	1.1
Food	6.0
Food Service	0.6
Forest Products & Paper	1.9
Gas	1.0
Healthcare – Products	2.0
Healthcare – Services	4.9
Home Builders	0.6
Lodging	2.7
Machinery – Diversified	1.0
Media	3.3
Mining	3.0
Miscellaneous Manufacturing	3.8
Oil & Gas	10.0
Pharmaceuticals	1.9
Pipelines	4.0
Real Estate	0.5
Real Estate Investment Trusts	1.2
Retail	2.7
Semiconductors	1.1
Software	2.8
Telecommunications	6.3
Transportation	2.7
Money Market Funds	3.8
Repurchase Agreements	9.1
Total Investments	110.2
Liabilities in Excess of Other Assets	(10.2	)
Net Assets	100.0	%

See accompanying Notes to Financial Statements.

69

ADVISORSHARES QAM EQUITY HEDGE ETF

Schedule of Investments

December 31, 2016 (Unaudited)

Investments	Shares	Value
EXCHANGE TRADED FUNDS — 81.1%
Asset Allocation Fund — 0.1%
SPDR Bloomberg Barclays Convertible Securities ETF	107	$	4,885
Commodity Fund — 0.3%
SPDR Gold Shares*	152		16,661
Debt Fund — 28.0%
AdvisorShares Sage Core Reserves ETF†	2,800		278,180
Guggenheim Enhanced Short Duration ETF*	5,563		278,817
iShares Short Treasury Bond ETF	3,272		360,902
iShares U.S. Preferred Stock ETF	1,021		37,991
SPDR Bloomberg Barclays 1-3 Month T-Bill ETF	7,857		359,065
SPDR SSgA Ultra Short Term Bond ETF	5,780		232,356
Total Debt Fund			1,547,311
Equity Fund — 52.7%
ALPS Medical Breakthroughs ETF*	2,474		56,704
BioShares Biotechnology Clinical Trials Fund*	727		13,369
Columbia India Small Capital ETF	927		13,061
First Trust Dow Jones Internet Index Fund*	1,107		88,372
First Trust NASDAQ ABA Community Bank Index Fund	424		22,442
Global X MSCI Nigeria ETF	1,516		6,458
Guggenheim China Small Cap ETF	7,692		171,455
Guggenheim China Technology ETF	663		23,384
Guggenheim Raymond James SB-1 Equity ETF	5,213		200,129
Guggenheim S&P 500 Equal Weight ETF	1,916		166,002
Guggenheim S&P 500 Equal Weight Financials ETF	1,590		58,560
Guggenheim S&P 500 Equal Weight Healthcare ETF	160		23,347
Guggenheim S&P 500 Equal Weight Technology ETF	752		81,584
Guggenheim S&P Midcap 400 Pure Growth ETF	299		38,526
iShares Core S&P Small-Cap ETF	105		14,440
iShares Global Clean Energy ETF	2,230		17,639
iShares Global Consumer Discretionary ETF	216		19,475
iShares Global Healthcare ETF	207		19,628

Investments	Shares	Value
EXCHANGE TRADED FUNDS (continued)
Equity Fund (continued)
iShares JPX-Nikkei 400 ETF	1,086	$	57,580
iShares Latin America 40 ETF	363		10,011
iShares Micro-Cap ETF	2,781		238,721
iShares Mortgage Real Estate Capped ETF	174		7,318
iShares MSCI Brazil Capped ETF	1,510		50,343
iShares MSCI EAFE ETF	648		37,409
iShares MSCI Emerging Markets ETF	543		19,010
iShares MSCI Europe Financials ETF	1,508		28,592
iShares MSCI France ETF	580		14,309
iShares MSCI Frontier 100 ETF	1,616		40,158
iShares MSCI Germany ETF	982		26,003
iShares MSCI Germany Small-Cap ETF	165		6,838
iShares MSCI Hong Kong ETF	1,087		21,175
iShares MSCI India Small-Cap ETF	2,201		71,919
iShares MSCI Ireland Capped ETF	121		4,541
iShares MSCI Japan Small Cap ETF	1,293		79,610
iShares MSCI Pacific ex Japan ETF	507		20,062
iShares MSCI Taiwan Capped ETF	789		23,173
iShares MSCI Thailand Capped ETF	426		30,710
iShares MSCI United Kingdom ETF	267		8,194
iShares MSCI United Kingdom Small-Cap ETF	2,116		71,775
iShares MSCI USA Momentum Factor ETF	422		32,013
iShares North American Natural Resources ETF	1,357		48,784
iShares Russell 1000 Growth ETF	1,135		119,061
iShares Russell 1000 Value ETF	292		32,713
iShares Russell 2000 Value ETF	318		37,823
iShares U.S. Broker-Dealers & Securities Exchanges ETF	361		17,862
iShares U.S. Oil & Gas Exploration & Production ETF	246		16,098
JPMorgan Alerian MLP Index ETN	770		24,340
KraneShares CSI China Internet ETF	266		9,238
PowerShares DWA Technology Momentum Portfolio	864		34,638
PowerShares Dynamic Market Portfolio	443		35,769
PowerShares S&P SmallCap Information Technology Portfolio	627		43,671

See accompanying Notes to Financial Statements.

70

ADVISORSHARES QAM EQUITY HEDGE ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

Investments	Shares	Value
EXCHANGE TRADED FUNDS (continued)
Equity Fund (continued)
QuantShares U.S. Market Neutral Anti-Beta Fund*	1,051	$	20,705
QuantShares U.S. Market Neutral Momentum Fund*	300		6,831
SPDR EURO STOXX 50 ETF	977		32,690
SPDR S&P Emerging Asia Pacific ETF	671		50,412
SPDR S&P Emerging Markets SmallCap ETF	1,812		71,973
SPDR S&P Health Care Equipment ETF	1,342		66,738
SPDR S&P Semiconductor ETF	115		6,453
SPDR S&P Software & Services ETF	105		5,726
VanEck Vectors Brazil Small-Cap ETF	1,779		28,268
VanEck Vectors ChinaAMC CSI 300 ETF	730		26,952
VanEck Vectors Russia ETF	2,282		48,424
VanEck Vectors Russia Small-Cap ETF	344		13,103
VanEck Vectors Unconventional Oil & Gas ETF	2,834		51,664
Vanguard Small-Cap ETF	584		75,313
WisdomTree Europe SmallCap Dividend Fund	371		20,264
WisdomTree India Earnings Fund	978		19,756
WisdomTree Japan Hedged Financials Fund	224		5,374
WisdomTree Middle East Dividend Fund	683		11,392
Total Equity Fund			2,916,074
Total Exchange Traded Funds
(Cost $4,254,942)			4,484,931
MONEY MARKET FUND — 19.0%
BlackRock Liquidity Funds Treasury Trust Fund Portfolio, Institutional Class, 0.36%(a) (Cost $1,051,941)	1,051,941		1,051,941

Investments	Shares		Value
Securities Sold, Not Yet Purchased — (4.6)%
EXCHANGE TRADED FUNDS — (4.6)%
Currency Fund — (4.6)%
CurrencyShares British Pound Sterling Trust*	(670	)	$	(80,574)
CurrencyShares Euro Trust*	(1,118	)		(114,327)
CurrencyShares Japanese Yen Trust*	(723	)		(59,662)
Total Currency Fund				(254,563)
Total Securities Sold, Not Yet Purchased (Proceeds Received $(267,980))				(254,563)
Total Investments — 95.5%
(Cost $5,038,903)				5,282,309
Other Assets in Excess of Liabilities — 4.5%				250,759
Net Assets — 100.0%			$	5,533,068

____________

ETF — Exchange Traded Fund

ETN — Exchange Traded Note

*Non-income producing security.

†Affiliated Company.

(a)Rate shown reflects the 7-day yield as of December 31, 2016.

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Asset Allocation Fund	0.1	%
Commodity Fund	0.3
Currency Fund	(4.6	)
Debt Fund	28.0
Equity Fund	52.7
Money Market Fund	19.0
Total Investments	95.5
Liabilities in Excess of Other Assets	4.5
Net Assets	100.0	%

See accompanying Notes to Financial Statements.

71

ADVISORSHARES RANGER EQUITY BEAR ETF

Schedule of Investments

December 31, 2016 (Unaudited)

Investments	Shares		Value
EXCHANGE TRADED FUND — 40.5%
Debt Fund — 40.5%
AdvisorShares Sage Core Reserves ETF†
(Cost $67,115,250)	675,000		$	67,061,250
MONEY MARKET FUNDS — 9.7%
Fidelity Institutional Money Market Government Portfolio – Class III, 0.14%(a)	15,635,281			15,635,281
Morgan Stanley Institutional Liquidity Funds – Government Portfolio, 0.44%(a)	500,000			500,000
Total Money Market Funds
(Cost $16,135,281)				16,135,281
Total Investments Before Securities Sold, Not Yet Purchased
(Cost $83,250,531)				83,196,531
Securities Sold, Not Yet Purchased — (98.7)%
COMMON STOCKS — (98.7)%
Aerospace/Defense — (2.5)%
Orbital ATK, Inc.	(46,546	)		(4,083,481	)
Apparel — (2.7)%
Carter’s, Inc.	(52,500	)		(4,535,475	)
Banks — (6.9)%
Capital One Financial Corp.	(25,000	)		(2,181,000	)
Deutsche Bank AG (Germany)*	(252,100	)		(4,563,010	)
UMB Financial Corp.	(62,000	)		(4,781,440	)
Total Banks				(11,525,450	)
Commercial Services — (7.2)%
Equifax, Inc.	(36,000	)		(4,256,280	)
INC Research Holdings, Inc., Class A*	(50,000	)		(2,630,000	)
ServiceMaster Global Holdings, Inc.*	(135,000	)		(5,085,450	)
Total Commercial Services				(11,971,730	)
Computers — (5.4)%
Electronics For Imaging, Inc.*	(90,000	)		(3,947,400	)
EPAM Systems, Inc.*	(77,500	)		(4,984,025	)
Total Computers				(8,931,425	)
Distribution/Wholesale — (1.8)%
LKQ Corp.*	(100,000	)		(3,065,000	)

Investments	Shares		Value
COMMON STOCKS (continued)
Diversified Financial Services — (7.8)%
Credit Acceptance Corp.*	(35,800	)	$	(7,786,858	)
Santander Consumer USA Holdings, Inc.*	(382,236	)		(5,160,186	)
Total Diversified Financial Services				(12,947,044	)
Electrical Components & Equipment — (3.0)%
AMETEK, Inc.	(101,000	)		(4,908,600	)
Electronics — (2.2)%
OSI Systems, Inc.*	(47,500	)		(3,615,700	)
Engineering & Construction — (2.5)%
AECOM*	(113,000	)		(4,108,680	)
Hand/Machine Tools — (2.7)%
Snap-on, Inc.	(26,500	)		(4,538,655	)
Healthcare – Products — (3.8)%
Globus Medical, Inc., Class A*	(147,000	)		(3,647,070	)
Zeltiq Aesthetics, Inc.*	(60,550	)		(2,635,136	)
Total Healthcare – Products				(6,282,206	)
Home Furnishings — (2.6)%
Tempur Sealy International, Inc.*	(63,250	)		(4,318,710	)
Internet — (6.8)%
Alibaba Group Holding Ltd. (China)*(b)	(60,000	)		(5,268,600	)
Facebook, Inc., Class A*	(30,000	)		(3,451,500	)
Netflix, Inc.*	(20,000	)		(2,476,000	)
Total Internet				(11,196,100	)
Leisure Time — (4.1)%
Brunswick Corp.	(50,000	)		(2,727,000	)
Harley-Davidson, Inc.	(70,000	)		(4,083,800	)
Total Leisure Time				(6,810,800	)
Machinery – Construction & Mining — (2.7)%
Caterpillar, Inc.	(47,500	)		(4,405,150	)
Media — (3.0)%
FactSet Research Systems, Inc.	(31,000	)		(5,066,330	)
Pharmaceuticals — (6.1)%
Akorn, Inc.*	(175,000	)		(3,820,250	)
DexCom, Inc.*	(39,937	)		(2,384,239	)

See accompanying Notes to Financial Statements.

72

ADVISORSHARES RANGER EQUITY BEAR ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

Investments	Shares		Value
COMMON STOCKS (continued)
Pharmaceuticals (continued)
Express Scripts Holding Co.*	(57,000	)	$	(3,921,030	)
Total Pharmaceuticals				(10,125,519	)
Retail — (14.4)%
CarMax, Inc.*	(146,000	)		(9,400,940	)
Domino’s Pizza, Inc.	(20,000	)		(3,184,800	)
Panera Bread Co., Class A*	(26,500	)		(5,434,885	)
Signet Jewelers Ltd.	(61,500	)		(5,796,990	)
Total Retail				(23,817,615	)
Semiconductors — (1.4)%
M/A-COM Technology Solutions Holdings, Inc.*	(48,900	)		(2,263,092	)
Software — (9.1)%
BroadSoft, Inc.*	(85,000	)		(3,506,250	)
Cadence Design Systems, Inc.*	(70,000	)		(1,765,400	)
Medidata Solutions, Inc.*	(45,000	)		(2,235,150	)
PROS Holdings, Inc.*	(150,000	)		(3,228,000	)
SS&C Technologies Holdings, Inc.	(150,000	)		(4,290,000	)
Total Software				(15,024,800	)
Total Securities Sold, Not Yet Purchased [Proceeds Received $(152,246,673)]				(163,541,562	)
Total Investments — (48.5)%
(Cost $(68,996,142))				(80,345,031	)
Other Assets in Excess of Liabilities — 148.5%				245,948,550
Net Assets — 100.0%			$	165,603,519

____________

ETF — Exchange Traded Fund

†Affiliated Company.

*Non-income producing security.

(a)Rate shown reflects the 7-day yield as of December 31, 2016.

(b)American Depositary Receipt.

Cash of $165,684,521 has been segregated to cover margin requirement for open short sales as of December 31, 2016.

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Aerospace/Defense	(2.5	)%
Apparel	(2.7	)
Banks	(6.9	)
Commercial Services	(7.2	)
Computers	(5.4	)
Debt Fund	40.5
Distribution/Wholesale	(1.8	)
Diversified Financial Services	(7.8	)
Electrical Components & Equipment	(3.0	)
Electronics	(2.2	)
Engineering & Construction	(2.5	)
Hand/Machine Tools	(2.7	)
Healthcare – Products	(3.8	)
Home Furnishings	(2.6	)
Internet	(6.8	)
Leisure Time	(4.1	)
Machinery – Construction & Mining	(2.7	)
Media	(3.0	)
Pharmaceuticals	(6.1	)
Retail	(14.4	)
Semiconductors	(1.4	)
Software	(9.1	)
Money Market Funds	9.7
Total Investments	(48.5	)
Other Assets in Excess of Liabilities	148.5
Net Assets	100.0	%

See accompanying Notes to Financial Statements.

73

ADVISORSHARES SAGE CORE RESERVES ETF

Schedule of Investments

December 31, 2016 (Unaudited)

Investments	Principal		Value
CORPORATE BONDS — 48.1%
Agriculture — 1.2%
Bunge Ltd. Finance Corp., 3.20%, 06/15/17	$	1,050,000	$	1,058,023
Auto Manufacturers — 2.5%
Ford Motor Credit Co. LLC, 1.50%, 01/17/17(a)		1,065,000		1,065,097
General Motors Financial Co., Inc., 2.63%, 07/10/17		1,065,000		1,070,897
Total Auto Manufacturers				2,135,994
Banks — 8.9%
Bank of America Corp., 5.70%, 05/02/17		850,000		861,653
BB&T Corp., Series MTN, 2.15%, 03/22/17		865,000		866,221
Capital One Financial Corp., 6.75%, 09/15/17		220,000		227,898
Citigroup, Inc., 1.35%, 03/10/17		1,085,000		1,085,278
Goldman Sachs Group, Inc. (The), Series FRN, 2.70%, 02/25/21@		1,065,000		1,096,641
JPMorgan Chase & Co., 2.00%, 08/15/17		530,000		532,012
JPMorgan Chase & Co., 2.41%, 03/01/21@		630,000		649,775
Morgan Stanley, Series MTN, 6.25%, 08/28/17		970,000		999,609
PNC Bank NA, Series BKTN, 4.88%, 09/21/17		298,000		305,160
Wachovia Corp., 5.75%, 06/15/17		745,000		759,238
Wells Fargo & Co., 5.63%, 12/11/17		380,000		394,023
Total Banks				7,777,508
Beverages — 1.2%
Molson Coors Brewing Co., 2.00%, 05/01/17		1,090,000		1,092,740
Chemicals — 1.2%
Sherwin-Williams Co. (The), 1.35%, 12/15/17		1,061,000		1,059,308
Diversified Financial Services — 2.9%
American Express Credit Corp., Series MTN, 1.13%, 06/05/17		635,000		634,940
American Express Credit Corp., Series F, 2.01%, 09/14/20@		540,000		549,282

Investments	Principal		Value
CORPORATE BONDS (continued)
Diversified Financial Services (continued)
NYSE Holdings LLC, 2.00%, 10/05/17	$	690,000	$	694,055
Synchrony Financial, 1.88%, 08/15/17		605,000		605,568
Total Diversified Financial Services				2,483,845
Electric — 1.7%
American Electric Power Co., Inc., Series E, 1.65%, 12/15/17		752,000		752,410
Edison International, 3.75%, 09/15/17		690,000		700,871
Total Electric				1,453,281
Food — 0.6%
Kroger Co. (The), 6.40%, 08/15/17		540,000		556,133
Gas — 1.1%
Sempra Energy, 2.30%, 04/01/17		970,000		971,959
Insurance — 1.0%
Aflac, Inc., 2.65%, 02/15/17		380,000		380,579
MetLife, Inc., 1.76%, 12/15/17		505,000		505,912
Total Insurance				886,491
Internet — 1.2%
eBay, Inc., 1.35%, 07/15/17		1,065,000		1,065,584
Media — 1.8%
DIRECTV Holdings LLC/DIRECTV Financing Co., Inc., 2.40%, 03/15/17		495,000		496,241
Time Warner Cable, Inc., 5.85%, 05/01/17		1,030,000		1,044,701
Total Media				1,540,942
Miscellaneous Manufacturing — 0.9%
Eaton Corp., 1.50%, 11/02/17		750,000		750,777
Oil & Gas — 3.7%
Chevron Corp., 1.10%, 12/05/17		1,065,000		1,062,738
ConocoPhillips Co., 1.05%, 12/15/17		1,075,000		1,069,752
Phillips 66, 2.95%, 05/01/17		1,050,000		1,055,942
Total Oil & Gas				3,188,432
Pharmaceuticals — 3.0%
Actavis, Inc., 1.88%, 10/01/17		1,065,000		1,067,231

See accompanying Notes to Financial Statements.

74

ADVISORSHARES SAGE CORE RESERVES ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

Investments	Principal		Value
CORPORATE BONDS (continued)
Pharmaceuticals (continued)
AmerisourceBergen Corp., 1.15%, 05/15/17	$	475,000	$	474,869
Cardinal Health, Inc., 1.90%, 06/15/17		1,030,000		1,032,938
Total Pharmaceuticals				2,575,038
Pipelines — 2.2%
Boardwalk Pipelines LP, 5.50%, 02/01/17		430,000		431,154
Energy Transfer Partners LP, 6.13%, 02/15/17		670,000		673,491
Kinder Morgan Energy Partners LP, 6.00%, 02/01/17		795,000		797,423
Total Pipelines				1,902,068
Real Estate Investment Trusts — 3.1%
HCP, Inc., 5.63%, 05/01/17		861,000		872,514
Simon Property Group LP, 2.15%, 09/15/17		615,000		617,682
Ventas Realty LP / Ventas Capital Corp., 2.00%, 02/15/18		690,000		691,595
Welltower, Inc., 4.70%, 09/15/17		500,000		510,827
Total Real Estate Investment Trusts				2,692,618
Retail — 3.7%
Macy’s Retail Holdings, Inc., 7.45%, 07/15/17		845,000		871,792
McDonald’s Corp., Series GMTN, 5.80%, 10/15/17		485,000		501,660
Target Corp., 6.00%, 01/15/18		525,000		548,984
Walgreens Boots Alliance, Inc., 1.75%, 11/17/17		1,305,000		1,308,536
Total Retail				3,230,972
Semiconductors — 1.2%
Intel Corp., 1.35%, 12/15/17		1,055,000		1,056,734
Software — 0.6%
Microsoft Corp., 0.88%, 11/15/17		500,000		499,764
Telecommunications — 2.8%
AT&T, Inc., 2.40%, 03/15/17		1,000,000		1,002,506
AT&T, Inc., 1.93%, 06/30/20@		350,000		352,076
Verizon Communications, Inc., 1.10%, 11/01/17		1,075,000		1,072,682
Total Telecommunications				2,427,264

Investments	Principal		Value
CORPORATE BONDS (continued)
Transportation — 1.6%
Norfolk Southern Corp., 7.70%, 05/15/17	$	345,000	$	352,916
Ryder System, Inc., Series MTN, 2.50%, 03/01/17		1,000,000		1,001,070
Total Transportation				1,353,986
Total Corporate Bonds
(Cost $41,737,330)				41,759,461
ASSET BACKED SECURITIES — 22.6%
Diversified Financial Services — 22.6%
Ally Auto Receivables Trust, Class A3, Series 2014-1, 0.97%, 10/15/18		426,500		426,380
American Express Credit Account Master Trust, Class A, Series 2013-2, 1.12%, 05/17/21@		1,520,000		1,525,273
American Express Credit Account Master Trust, Class A, Series 2014-1, 1.07%, 12/15/21@		400,000		400,941
American Express Credit Account Secured Note Trust, Class A, Series 2012-4, 0.94%, 05/15/20@		350,000		350,060
BA Credit Card Trust, Class A, Series 2015-A1, 1.03%, 06/15/20@		1,310,000		1,312,038
BA Credit Card Trust, Class A11, Series 2007-A11, 0.77%, 12/15/19@		590,000		589,773
Cabela’s Credit Card Master Note Trust, Class A1, Series 2012-1A, 1.63%, 02/18/20‡		700,000		700,477
Capital One Multi-Asset Execution Trust, Class A3, Series 2014-A3, 1.08%, 01/18/22@		400,000		400,362
Capital One Multi-Asset Execution Trust, Class A5, Series 2007-A5, 0.74%, 07/15/20@		525,000		524,518
CarMax Auto Owner Trust, Class A2B, Series 2015-4, 1.30%, 04/15/19@		517,950		518,591
CarMax Auto Owner Trust, Class A3, Series 2014-1, 0.79%, 10/15/18		276,367		276,197
Chase Issuance Trust, Class A, Series 2013-A9, 1.12%, 11/16/20@		400,000		401,363

See accompanying Notes to Financial Statements.

75

ADVISORSHARES SAGE CORE RESERVES ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

Investments	Principal		Value
ASSET BACKED SECURITIES (continued)
Diversified Financial Services (continued)
Chase Issuance Trust, Class A3, Series 2013-A3, 0.98%, 04/15/20@	$	345,000	$	345,632
Citibank Credit Card Issuance Trust, Class A2, Series 2013-A2, 1.04%, 05/26/20@		600,000		600,774
Citibank Credit Card Issuance Trust, Class A4, Series 2013-A4, 1.18%, 07/24/20@		500,000		501,761
Citibank Credit Card Issuance Trust, Class A4, Series 2014-A4, 1.23%, 04/24/19		750,000		750,339
Discover Card Execution Note Trust, Class A3, Series 2014-A3, 1.22%, 10/15/19		715,000		715,278
Fifth Third Auto Trust, Class A3, Series 2014-2, 0.89%, 11/15/18		139,677		139,633
Ford Credit Auto Owner Trust, Class A3, Series 2014-B, 0.90%, 10/15/18		280,697		280,609
Ford Credit Auto Owner Trust, Class C, Series 2014-A, 1.90%, 09/15/19		445,000		446,733
Ford Credit Floorplan Master Owner Trust A, Class A1, Series 2014-1, 1.20%, 02/15/19		850,000		850,061
Honda Auto Receivables Owner Trust, Class A2, Series 2015-3, 0.92%, 11/20/17		62,371		62,364
Honda Auto Receivables Owner Trust, Class A3, Series 2014-2, 0.77%, 03/19/18		90,039		89,967
Honda Auto Receivables Owner Trust, Class A3, Series 2014-3, 0.88%, 06/15/18		581,318		580,954
Honda Auto Receivables Owner Trust, Class A3, Series 2015-1, 1.05%, 10/15/18		1,016,035		1,015,537
Hyundai Auto Receivables Trust, Class A2A, Series 2015-C, 0.99%, 11/15/18		903,455		902,830
Hyundai Auto Receivables Trust, Class B, Series 2013-A, 1.13%, 09/17/18		800,000		799,774
Nissan Auto Receivables Owner Trust, Class A2A, Series 2015-C, 0.87%, 11/15/18		518,874		518,603
Nissan Auto Receivables Owner Trust, Class A3, Series 2013-C, 0.67%, 08/15/18		65,528		65,484
Toyota Auto Receivables, Class A2A, Series 2016-C, 1.00%, 01/15/19		1,000,000		998,445

Investments	Principal		Value
ASSET BACKED SECURITIES (continued)
Diversified Financial Services (continued)
Toyota Auto Receivables Owner Trust, Class A2A, Series 2016-A, 1.03%, 07/16/18	$	1,382,618	$	1,382,653
USAA Auto Owner Trust, Class B, Series 2014-1, 1.34%, 08/17/20		1,145,000		1,145,129
Total Asset Backed Securities
(Cost $19,613,954)				19,618,533
MORTGAGE BACKED SECURITIES — 13.5%
Commercial Mortgage Backed Securities — 13.5%
Banc of America Commercial Mortgage Trust, Class AM, Series 2007-4, 5.81%, 02/10/51@		425,000		432,893
Bear Stearns Commercial Mortgage Securities Trust, Class A1A, Series 2007-PW16, 5.71%, 06/11/40@		194,478		196,367
Bear Stearns Commercial Mortgage Securities Trust, Class A4, Series 2007-T28, 5.74%, 09/11/42@		556,062		565,642
Bear Stearns Commercial Mortgage Securities Trust, Class A4, Series 2007-PW15, 5.33%, 02/11/44		210,927		211,049
Bear Stearns Commercial Mortgage Securities Trust, Class A4, Series 2007-PW17, 5.69%, 06/11/50@		708,426		720,758
CD Mortgage Trust, Class A4, Series 2007-CD5, 5.89%, 11/15/44@		1,029,812		1,046,764
CFCRE Commercial Mortgage Trust, Class A2, Series 2011-C2, 3.06%, 12/15/47		2,633		2,631
COMM Mortgage Trust, Class A4, Series 2007-C9, 5.81%, 12/10/49@		1,051,670		1,060,368
DBRR Trust, Class A, Series 2013-EZ3, 1.64%, 12/18/49@‡		20,494		20,595
Fannie Mae Connecticut Avenue Securities, Class 1M1, Series 2014-C02, 1.71%, 05/25/24@		189,071		189,512
Fannie Mae Connecticut Avenue Securities, Class 1M1, Series 2014-C03, 1.96%, 07/25/24@		789,384		791,522
Fannie Mae Connecticut Avenue Securities, Class 2M1, Series 2015-C02, 1.96%, 05/25/25@		252,128		252,277

See accompanying Notes to Financial Statements.

76

ADVISORSHARES SAGE CORE RESERVES ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

Investments	Principal		Value
MORTGAGE BACKED SECURITIES (continued)
Commercial Mortgage Backed Securities (continued)
Fannie Mae Connecticut Avenue Securities, Class 1M1, Series 2016-C04, 2.21%, 01/25/29@	$	1,381,211	$	1,390,383
Fannie Mae Connecticut Avenue Securities, Class 1M1, Series 2016-C06, 2.06%, 04/25/29@		990,536		992,857
Freddie Mac REMICS, Class ED, Series 2010-3645, 2.50%, 12/15/20		609,610		616,735
Freddie Mac Structured Agency Credit Risk Debt Notes, Class M2, Series 2014-DN3, 3.16%, 08/25/24@		377,188		378,319
GS Mortgage Securities Trust, Class A2, Series 2011-GC5, 3.00%, 08/10/44		6,178		6,175
GS Mortgage Securities Trust, Class A2, Series 2012-GCJ7, 2.32%, 05/10/45		297,869		298,243
HILT Mortgage Trust, Class C, Series 2014-ORL, 2.30%, 07/15/29@‡		580,000		570,666
HILT Mortgage Trust, Class XEXT, Series 2014-ORL, 1.10%, 07/15/29@‡		6,598,125		6,186
LB-UBS Commercial Mortgage Trust, Class A3, Series 2007-C7, 5.87%, 09/15/45@		283,465		290,513
Morgan Stanley Capital I Trust, Class A1A, Series 2007-T27, 5.64%, 06/11/42@		522,619		528,737
Morgan Stanley Capital I Trust, Class A4, Series 2007-T27, 5.64%, 06/11/42@		948,928		959,762
Morgan Stanley Capital I Trust, Class A4, Series 2007-IQ16, 5.81%, 12/12/49		215,249		218,453
Total Mortgage Backed Securities
(Cost $11,751,581)				11,747,407
FOREIGN BONDS — 7.6%
Banks — 1.8%
Bank of Nova Scotia (The), Series BKTN, 1.25%, 04/11/17 (Canada)		765,000		765,265
BNP Paribas SA, Series MTN, 2.38%, 09/14/17 (France)		760,000		765,153
Total Banks				1,530,418

Investments	Principal/ Shares		Value
FOREIGN BONDS (continued)
Beverages — 0.7%
Anheuser-Busch InBev Worldwide, Inc., 1.38%, 07/15/17 (Belgium)	$	580,000	$	580,582
Oil & Gas — 3.9%
BP Capital Markets PLC, 1.85%, 05/05/17 (United Kingdom)		1,000,000		1,002,225
Petroleos Mexicanos, 3.50%, 01/30/23 (Mexico)		385,000		354,393
Shell International Finance BV, 1.13%, 08/21/17 (Netherlands)		1,060,000		1,060,051
Total Capital International SA, 1.55%, 06/28/17 (France)		1,000,000		1,001,717
Total Oil & Gas				3,418,386
Telecommunications — 1.2%
Vodafone Group PLC, 1.63%, 03/20/17 (United Kingdom)		1,065,000		1,065,265
Total Foreign Bonds
(Cost $6,616,378)				6,594,651
U.S. TREASURY NOTE — 4.0%
U.S. Treasury Note, 0.88%, 05/15/17
(Cost $3,484,064)		3,480,000		3,483,737
MUNICIPAL BONDS — 0.5%
City of Houston TX Airport System Revenue, 1.30%, 01/01/17		50,000		50,000
Massachusetts Educational Financing Authority, 5.00%, 01/01/17		45,000		45,000
Michigan Finance Authority, Series A, 5.00%, 05/01/17		290,000		293,460
South Carolina State Public Service Authority, 5.04%, 01/01/17		50,000		50,000
Total Municipal Bonds
(Cost $438,695)				438,460
U.S. TREASURY BILL — 0.1%
U.S. Treasury Bill, 0.37%, 03/30/17(b)
(Cost $99,912)		100,000		99,882
MONEY MARKET FUND — 4.5%
JP Morgan US Government Money Market Fund – Institutional Class, 0.41%(c) (Cost $3,953,976)		3,953,976		3,953,976

See accompanying Notes to Financial Statements.

77

ADVISORSHARES SAGE CORE RESERVES ETF

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

Investments	Principal		Value
REPURCHASE AGREEMENT — 0.0%**(d)
Citigroup Global Markets, Inc., dated 12/30/16, due 01/03/17, 0.51%, total to be received $30,908, (collateralized by various U.S. Government Agency Obligations, 0.13%-1.75%, 04/15/20-01/15/28, totaling $31,426)
(Cost $30,907)	$	30,907	$	30,907
Total Investments — 100.9%
(Cost $87,726,797)				87,727,014
Liabilities in Excess of Other Assets — (0.9%)				(815,787)
Net Assets — 100.0%			$	86,911,227

____________

LP — Limited Partnership

PLC — Public Limited Company

@Variable rate instrument. The interest rate shown reflects the rate in effect at December 31, 2016.

**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.

(a)All or a portion of security is on loan. The aggregate market value of the securities on loan is $30,206; the aggregate market value of the collateral held by the fund is $30,907.

(b)Represents a zero coupon bond. Rate shown reflects the effective yield.

(c)Rate shown reflects the 7-day yield as of December 31, 2016.

(d)Collateral received from brokers for securities lending was invested in these short-term investments.

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Agriculture	1.2	%
Auto Manufacturers	2.5
Banks	10.7
Beverages	1.9
Chemicals	1.2
Commercial Mortgage Backed Securities	13.5
Diversified Financial Services	25.5
Electric	1.7
Food	0.6
Gas	1.1
Insurance	1.0
Internet	1.2
Media	1.8
Miscellaneous Manufacturing	0.9
Municipal Bonds	0.5
Oil & Gas	7.6
Pharmaceuticals	3.0
Pipelines	2.2
Real Estate Investment Trusts	3.1
Retail	3.7
Semiconductors	1.2
Software	0.6
Telecommunications	4.0
Transportation	1.6
U.S. Treasury Bill	0.1
U.S. Treasury Note	4.0
Money Market Fund	4.5
Repurchase Agreement	0.0	**
Total Investments	100.9
Liabilities in Excess of Other Assets	(0.9	)
Net Assets	100.0	%

____________

**Less than 0.05%

See accompanying Notes to Financial Statements.

78

ADVISORSHARES STAR GLOBAL BUY-WRITE ETF

Schedule of Investments

December 31, 2016 (Unaudited)

Investments	Shares/ Contracts		Value
EXCHANGE TRADED FUNDS — 94.5%
Asset Allocation Fund — 2.0%
SPDR Bloomberg Barclays Convertible Securities ETF	7,447		$	339,955
Debt Fund — 14.4%
PowerShares Fundamental High Yield Corporate Bond Portfolio	45,649			857,745
SPDR Doubleline Total Return Tactical ETF	16,797			812,807
Vanguard Intermediate-Term Bond ETF	9,786			812,923
Total Debt Fund				2,483,475
Equity Fund — 78.1%
iShares MSCI EAFE ETF	20,887			1,205,807
iShares MSCI Emerging Markets ETF	20,331			711,788
SPDR S&P 500 ETF Trust(a)	49,329			11,026,511
Vanguard REIT ETF	5,767			475,951
Total Equity Fund				13,420,057
Total Exchange Traded Funds
(Cost $14,980,173)				16,243,487
MONEY MARKET FUND — 5.7%
BlackRock Liquidity Funds T-Fund Portfolio, Institutional Class, 0.36%(b) (Cost $977,526)	977,526			977,526
PURCHASED PUT OPTION — 0.6%
SPDR S&P 500 ETF Trust, Option expiring 03/17/17, Strike Price $225.00 (Cost $94,986)	154			97,867
Total Investments Before Written Options — 100.8%
(Cost $16,052,685)				17,318,880
WRITTEN CALL OPTIONS — (0.1)%
iShares MSCI EAFE ETF, expiring 01/20/17, Strike Price $59.00	(104	)		(1,820)
iShares MSCI Emerging Markets ETF, expiring 01/20/17, Strike Price $36.00	(102	)		(2,499)
SPDR S&P 500 ETF Trust, expiring 01/20/17, Strike Price $229.00	(247	)		(9,633)
Total Written Call Options [Premiums Received $(36,627)]				(13,952)

Investments	Value
WRITTEN CALL OPTIONS (continued)
Total Written Options — (0.1)%
[Premiums Received (36,627)]	$	(13,952)
Total Investments — 100.7%
(Cost $16,016,058)		17,304,928
Liabilities in Excess of Other Assets — (0.7%)		(118,100)
Net Assets — 100.0%	$	17,186,828

____________

ETF — Exchange Traded Fund

(a)All or a portion of this security has been pledged as collateral for option contracts. The aggregate market value of the collateral was $2,128,900 as of December 31, 2016.

(b)Rate shown reflects the 7-day yield as of December 31, 2016.

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Asset Allocation Fund	2.0	%
Debt Fund	14.4
Equity Fund	78.1
Purchased Put Option	0.6
Written Call Options	(0.1	)
Money Market Fund	5.7
Total Investments	100.7
Liabilities in Excess of Other Assets	(0.7	)
Net Assets	100.0	%

See accompanying Notes to Financial Statements.

79

ADVISORSHARES WILSHIRE BUYBACK ETF

(Formerly AdvisorShares TrimTabs Float Shrink ETF)

Schedule of Investments

December 31, 2016 (Unaudited)

Investments	Shares	Value
COMMON STOCKS — 98.7%
Aerospace/Defense — 2.5%
Lockheed Martin Corp.	2,228	$	556,866
Spirit AeroSystems Holdings, Inc., Class A	40,468		2,361,308
TransDigm Group, Inc.	2,705		673,437
Total Aerospace/Defense			3,591,611
Airlines — 5.1%
Alaska Air Group, Inc.(a)	14,482		1,284,988
Southwest Airlines Co.	24,124		1,202,340
United Continental Holdings, Inc.*	67,102		4,890,394
Total Airlines			7,377,722
Apparel — 0.7%
Ralph Lauren Corp.	10,593		956,760
Auto Parts & Equipment — 2.5%
Allison Transmission Holdings, Inc.	67,182		2,263,362
Lear Corp.	10,635		1,407,755
Total Auto Parts & Equipment			3,671,117
Banks — 5.3%
Capital One Financial Corp.	23,539		2,053,542
Northern Trust Corp.	7,869		700,735
PNC Financial Services Group, Inc. (The)	9,230		1,079,541
Regions Financial Corp.	148,529		2,132,876
State Street Corp.	12,533		974,065
US Bancorp	13,685		702,998
Total Banks			7,643,757
Beverages — 1.9%
Brown-Forman Corp., Class B(a)	49,238		2,211,771
Dr Pepper Snapple Group, Inc.	5,986		542,751
Total Beverages			2,754,522
Biotechnology — 2.1%
Biogen, Inc.*	8,091		2,294,446
United Therapeutics Corp.*(a)	5,318		762,761
Total Biotechnology			3,057,207
Chemicals — 3.6%
Celanese Corp., Series A	14,471		1,139,446
Dow Chemical Co. (The)	15,330		877,183
PPG Industries, Inc.	5,156		488,583
Valspar Corp. (The)	20,544		2,128,564
WR Grace & Co.	9,138		618,094
Total Chemicals			5,251,870

Investments	Shares	Value
COMMON STOCKS (continued)
Commercial Services — 7.2%
Automatic Data Processing, Inc.	22,072	$	2,268,560
H&R Block, Inc.	133,763		3,075,211
Robert Half International, Inc.	16,283		794,285
Service Corp. International	33,852		961,397
United Rentals, Inc.*	31,511		3,326,931
Total Commercial Services			10,426,384
Diversified Financial Services — 7.5%
American Express Co.	28,588		2,117,799
Ameriprise Financial, Inc.	25,671		2,847,941
Discover Financial Services	29,888		2,154,626
E*TRADE Financial Corp.*	37,413		1,296,360
Eaton Vance Corp.	20,237		847,526
Invesco Ltd.	30,206		916,450
Nasdaq, Inc.	9,901		664,555
Total Diversified Financial Services			10,845,257
Electric — 0.8%
NRG Energy, Inc.	98,548		1,208,198
Electrical Components & Equipment — 0.5%
Emerson Electric Co.	13,750		766,562
Electronics — 1.1%
FLIR Systems, Inc.	19,588		708,890
Trimble, Inc.*	27,310		823,396
Total Electronics			1,532,286
Engineering & Construction — 0.8%
Jacobs Engineering Group, Inc.*	10,134		577,638
SBA Communications Corp., Class A*	5,351		552,544
Total Engineering & Construction			1,130,182
Food — 3.5%
Sysco Corp.	48,796		2,701,835
Whole Foods Market, Inc.	77,719		2,390,636
Total Food			5,092,471
Healthcare – Products — 0.8%
Abbott Laboratories	13,334		512,159
Patterson Cos., Inc.	15,749		646,181
Total Healthcare – Products			1,158,340
Healthcare – Services — 0.8%
DaVita Inc.*	9,604		616,577
Universal Health Services, Inc., Class B	4,899		521,155
Total Healthcare – Services			1,137,732

See accompanying Notes to Financial Statements.

80

ADVISORSHARES WILSHIRE BUYBACK ETF

(Formerly AdvisorShares TrimTabs Float Shrink ETF)

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

Investments	Shares	Value
COMMON STOCKS (continued)
Home Builders — 0.5%
NVR, Inc.*	472	$	787,768
Insurance — 14.0%
Alleghany Corp.*	1,539		935,897
Allstate Corp. (The)	27,866		2,065,428
Axis Capital Holdings Ltd.	37,195		2,427,718
Hartford Financial Services Group, Inc. (The)	32,042		1,526,801
Lincoln National Corp.	36,351		2,408,981
Loews Corp.	24,976		1,169,626
Principal Financial Group, Inc.	13,174		762,247
Prudential Financial, Inc.	6,694		696,578
Reinsurance Group of America, Inc.	8,191		1,030,673
RenaissanceRe Holdings Ltd. (Bermuda)	16,099		2,193,006
Travelers Cos., Inc. (The)	15,240		1,865,681
Unum Group	31,743		1,394,470
XL Group Ltd (Ireland)	48,526		1,808,079
Total Insurance			20,285,185
Internet — 1.0%
IAC/InterActiveCorp*	9,912		642,199
Priceline Group, Inc. (The)*	557		816,595
Total Internet			1,458,794
Leisure Time — 2.2%
Harley-Davidson, Inc.	54,300		3,167,862
Machinery – Diversified — 4.3%
Deere & Co.	26,647		2,745,707
Nordson Corp.	31,442		3,523,076
Total Machinery – Diversified			6,268,783
Media — 3.5%
CBS Corp., Class B	36,862		2,345,161
Twenty-First Century Fox, Inc., Class A	97,009		2,720,132
Total Media			5,065,293
Miscellaneous Manufacturing — 0.5%
Parker-Hannifin Corp.	5,535		774,900
Oil & Gas — 1.7%
Valero Energy Corp.	35,301		2,411,764
Pharmaceuticals — 2.0%
AmerisourceBergen Corp.	31,161		2,436,478
McKesson Corp.	3,233		454,075
Total Pharmaceuticals			2,890,553

Investments	Shares	Value
COMMON STOCKS (continued)
Real Estate Investment Trust — 2.9%
AGNC Investment Corp.	76,316	$	1,383,609
Host Hotels & Resorts, Inc.	33,045		622,568
Macerich Co. (The)	30,345		2,149,640
Total Real Estate Investment Trust			4,155,817
Retail — 11.2%
Advance Auto Parts, Inc.	3,865		653,649
Best Buy Co., Inc.	77,172		3,292,929
Domino’s Pizza, Inc.	17,514		2,788,929
Foot Locker, Inc.	11,860		840,755
Home Depot, Inc. (The)	6,347		851,006
Nordstrom, Inc.(a)	68,736		3,294,516
PVH Corp.	6,182		557,864
Ross Stores, Inc.	9,358		613,885
Sally Beauty Holdings, Inc.*(a)	71,687		1,893,971
Tiffany & Co.(a)	9,818		760,208
TJX Cos., Inc. (The)	8,967		673,691
Total Retail			16,221,403
Software — 5.5%
Akamai Technologies, Inc.*	10,256		683,870
CA, Inc.	16,849		535,293
CDK Global, Inc.	15,074		899,767
Cerner Corp.*	9,237		437,557
Citrix Systems, Inc.*	19,880		1,775,483
Intuit, Inc.	19,105		2,189,624
Oracle Corp.	38,281		1,471,904
Total Software			7,993,498
Telecommunications — 0.5%
CenturyLink, Inc.(a)	28,007		666,006
Textiles — 0.4%
Mohawk Industries, Inc.*	2,942		587,459
Transportation — 1.8%
CSX Corp.	25,957		932,635
JB Hunt Transport Services, Inc.	11,291		1,096,017
Norfolk Southern Corp.	5,897		637,289
Total Transportation			2,665,941
Total Common Stocks
(Cost $123,983,439)			143,003,004

See accompanying Notes to Financial Statements.

81

ADVISORSHARES WILSHIRE BUYBACK ETF

(Formerly AdvisorShares TrimTabs Float Shrink ETF)

Schedule of Investments (continued)

December 31, 2016 (Unaudited)

Investments	Shares/ Principal		Value
MONEY MARKET FUND — 1.2%
Wells Fargo Advantage Government Money Market Fund – Institutional Class, 0.37%(b) (Cost $1,668,456)		1,668,456	$	1,668,456
REPURCHASE AGREEMENTS — 1.8%(c)
Citigroup Global Markets, Inc., dated 12/30/16, due 01/03/17, 0.53%, total to be received $593,906, (collateralized by various U.S. Government Agency Obligations, 2.00%-8.50%, 12/01/17-01/01/47, totaling $603,872)	$	593,889		593,889
Deutsche Bank Securities, Inc., dated 12/30/16, due 01/03/17, 0.50%, total to be received $593,906, (collateralized by a U.S. Government Agency Obligation, 2.25%, 11/15/24, totaling $604,061)		593,889		593,889
JP Morgan Securities LLC, dated 12/30/16, due 01/03/17, 0.50%, total to be received $176,025, (collateralized by various U.S. Government Agency Obligations, 0.00%-1.38%, 04/13/17-08/31/21, totaling $179,092)		176,020		176,020
Merrill Lynch Pierce Fenner & Smith, Inc., dated 12/30/16, due 01/03/17, 0.50%, total to be received $593,906, (collateralized by various U.S. Government Agency Obligations, 1.74%-6.00%, 08/01/22-01/15/49, totaling $604,193)		593,889		593,889
RBC Dominion Securities, Inc., dated 12/30/16, due 01/03/17, 0.52%, total to be received $593,906, (collateralized by various U.S. Government Agency Obligations, 0.88%-7.00%, 02/13/17-01/01/47, totaling $604,053)		593,889		593,889
Total Repurchase Agreements
(Cost $2,551,576)				2,551,576
Total Investments — 101.7%
(Cost $128,203,471)				147,223,036
Liabilities in Excess of Other Assets — (1.7%)				(2,483,922)
Net Assets — 100.0%			$	144,739,114

____________

*Non-income producing security.

(a)All or a portion of security is on loan. The aggregate market value of the securities on loan is $5,598,055; the aggregate market value of the collateral held by the fund is $5,724,497. The aggregate market value of the collateral includes non-cash U.S. Treasury securities collateral having a value of $3,172,921.

(b)Rate shown reflects the 7-day yield as of December 31, 2016.

(c)Collateral received from brokers for securities lending was invested in these short-term investments.

SUMMARY OF SCHEDULE OF INVESTMENTS

	% of Net Assets
Aerospace/Defense	2.5	%
Airlines	5.1
Apparel	0.7
Auto Parts & Equipment	2.5
Banks	5.3
Beverages	1.9
Biotechnology	2.1
Chemicals	3.6
Commercial Services	7.2
Diversified Financial Services	7.5
Electric	0.8
Electrical Components & Equipment	0.5
Electronics	1.1
Engineering & Construction	0.8
Food	3.5
Healthcare – Products	0.8
Healthcare – Services	0.8
Home Builders	0.5
Insurance	14.0
Internet	1.0
Leisure Time	2.2
Machinery – Diversified	4.3
Media	3.5
Miscellaneous Manufacturing	0.5
Oil & Gas	1.7
Pharmaceuticals	2.0
Real Estate Investment Trust	2.9
Retail	11.2
Software	5.5
Telecommunications	0.5
Textiles	0.4
Transportation	1.8
Money Market Fund	1.2
Repurchase Agreements	1.8
Total Investments	101.7
Liabilities in Excess of Other Assets	(1.7	)
Net Assets	100.0	%

See accompanying Notes to Financial Statements.

82

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ADVISORSHARES TRUST
Statements of Assets and Liabilities

December 31, 2016 (Unaudited)

	AdvisorShares Athena High Dividend ETF			AdvisorShares Cornerstone Small Cap ETF		AdvisorShares Dorsey Wright ADR ETF(1)
ASSETS
Investments, at Cost	$	7,553,154		$	2,159,842	$	17,407,880
Investments in Affiliates, at Cost (Note 9)		—			—		—
Repurchase Agreements, at Cost (Note 3)		1,116,216			193,498		2,441,310
Total Cost of Investments		8,669,370			2,353,340		19,849,190
Investments, at Market Value (including securities on loan) (Note 3)(a)		8,031,280			2,553,902		18,097,703
Investments in Affiliates, at Market Value (Note 9)		—			—		—
Repurchase Agreements, at Market Value (Note 3)		1,116,216			193,498		2,441,310
Total Market Value of Investments		9,147,496			2,747,400		20,539,013
Cash		—			—		—
Foreign currency holdings(b)		—			—		—
Cash collateral held at brokers		—			—		—
Dividends and Interest Receivable		33,338			4,986		34,208
Receivable from Securities Sold		—			550		—
Reclaim Receivable		412			—		11,685
Due from Investment Advisor		—			6,917		—
Prepaid Expenses		11,012			34,938		34,016
Total Assets		9,192,258			2,794,791		20,618,922
LIABILITIES
Cash collateral for securities on loan(c)		1,116,216			193,498		2,441,310
Advisory Fees Payable		233			—		8,902
Trustee Fees Payable		58			—		77
Payable for Securities Purchased		—			—		—
CCO Fees Payable		420			508		447
Payable to Global Echo Foundation		—			—		—
Due to Custodian		—			—		—
Accrued Expenses		22,323			9,494		28,225
Total Liabilities		1,139,250			203,500		2,478,961
NET ASSETS	$	8,053,008		$	2,591,291	$	18,139,961
COMPONENTS OF NET ASSETS
Capital Stock at Zero Par Value	$	11,776,748		$	2,004,102	$	17,114,654
Undistributed (Accumulated) Net Investment Income (Loss)		23,255			725		(11,557	)
Undistributed (Accumulated) Net Gain (Loss) on investments, swaps, short sales, foreign currency transactions, futures, and options written		(4,225,121	)		192,404		347,041
Unrealized Appreciation (Depreciation) on investments, swaps, short sales, options written, futures, and foreign currency translations		478,126			394,060		689,823
NET ASSETS	$	8,053,008		$	2,591,291	$	18,139,961
SHARES ISSUED AND OUTSTANDING
Shares Outstanding (Unlimited Shares Authorized)		450,000			86,476		450,000
Net Asset Value (NAV) Per Share	$	17.90		$	29.97	$	40.31
(a) Market value of securities on loan	$	1,234,159		$	235,704	$	2,783,077
(b) Foreign currency holdings, at Cost	$	—		$	—	$	—
(c) Non-cash collateral for securities on loan	$	144,981		$	50,860	$	450,992

See accompanying Notes to Financial Statements.

84

ADVISORSHARES TRUST
Statements of Assets and Liabilities

December 31, 2016 (Unaudited)

AdvisorShares Focused Equity ETF			AdvisorShares Gartman Gold/Euro ETF (Consolidated)			AdvisorShares Gartman Gold/Yen ETF (Consolidated)			AdvisorShares Global Echo ETF			AdvisorShares KIM Korea Equity ETF
$	8,192,576		$	4,828,070		$	4,385,124		$	4,453,731		$	7,314,703
	—			4,974,000			4,974,000			—			—
	—			—			—			85,255			—
	8,192,576			9,802,070			9,359,124			4,538,986			7,314,703
	8,272,984			4,828,070			4,385,124			4,537,388			7,091,991
	—			4,967,500			4,967,500			—			—
	—			—			—			85,255			—
	8,272,984			9,795,570			9,352,624			4,622,643			7,091,991
	—			—			—			—			317,715
	—			—			—			—			45,963
	—			7,679,048			7,633,136			—			—
	3,007			66			59			9,827			68,889
	2,704,122			—			—			7,982			—
	—			—			—			—			—
	6,288			—			—			—			2,419
	19,563			5,607			5,055			—			18,147
	11,005,964			17,480,291			16,990,874			4,640,452			7,545,124
	—			—			—			85,255			—
	—			122			1,096			4,256			—
	—			113			40			—			—
	3,218,218			—			—			—			77,764
	156			235			260			—			88
	—			—			—			1,547			—
	—			—			—			7,472			—
	6,504			23,364			22,786			—			6,332
	3,224,878			23,834			24,182			98,530			84,184
$	7,781,086		$	17,456,457		$	16,966,692		$	4,541,922		$	7,460,940
$	7,723,158		$	19,123,767		$	19,009,071		$	4,450,106		$	7,729,996
	(1,433	)		(1,406,964	)		(1,591,049	)		(12,442	)		22,323
	(21,047	)		372,972			(50,126	)		20,601			(68,718	)
	80,408			(633,318	)		(401,204	)		83,657			(222,661	)
$	7,781,086		$	17,456,457		$	16,966,692		$	4,541,922		$	7,460,940
	300,000			1,500,000			1,575,000			75,000			325,000
$	25.94		$	11.64		$	10.77		$	60.56		$	22.96
$	—		$	—		$	—		$	108,745		$	—
$	—		$	—		$	—		$	—		$	45,963
$	—		$	—		$	—		$	26,897		$	—

See accompanying Notes to Financial Statements.

85

ADVISORSHARES TRUST
Statements of Assets and Liabilities

December 31, 2016 (Unaudited)

	AdvisorShares Madrona Domestic ETF			AdvisorShares Madrona Global Bond ETF			AdvisorShares Madrona International ETF
ASSETS
Investments, at Cost	$	24,152,935		$	17,139,750		$	14,386,558
Investments in Affiliates, at Cost (Note 9)		—			1,919,892			—
Repurchase Agreements, at Cost (Note 3)		249,264			2,248,769			3,026,925
Total Cost of Investments		24,402,199			21,308,411			17,413,483
Investments, at Market Value (including securities on loan) (Note 3)(a)		25,628,074			16,717,349			14,693,404
Investments in Affiliates, at Market Value (Note 9)		—			2,081,532			—
Repurchase Agreements, at Market Value (Note 3)		249,264			2,248,769			3,026,925
Total Market Value of Investments		25,877,338			21,047,650			17,720,329
Cash		—			—			1,808
Unrealized Appreciation on Swaps Contracts		—			—			—
Dividends and Interest Receivable		30,663			25,477			11,185
Receivable from Securities Sold		—			—			—
Reclaim Receivable		—			—			10,423
Due from Investment Advisor		—			—			—
Prepaid Expenses		4,952			4,448			4,098
Total Assets		25,912,953			21,077,575			17,747,843
LIABILITIES
Cash collateral for securities on loan(b)		249,264			2,248,769			3,026,925
Advisory Fees Payable		20,622			7,635			8,852
Trustee Fees Payable		86			93			52
Payable for Securities Purchased		—			—			—
CCO Fees Payable		526			444			427
Due to Broker		—			—			—
Accrued Expenses		45,204			33,606			41,438
Total Liabilities		315,702			2,290,547			3,077,694
NET ASSETS	$	25,597,251		$	18,787,028		$	14,670,149
COMPONENTS OF NET ASSETS
Capital Stock at Zero Par Value	$	25,859,916		$	19,888,592		$	20,610,591
Undistributed (Accumulated) Net Investment Income (Loss)		(2,875	)		(21,747	)		(2,648	)
Undistributed (Accumulated) Net Gain (Loss) on investments, swaps, short sales, foreign currency transactions, futures, and options written		(1,734,929	)		(819,056	)		(6,244,640	)
Unrealized Appreciation (Depreciation) on investments, swaps, short sales, options written, futures and foreign currency translations		1,475,139			(260,761	)		306,846
NET ASSETS	$	25,597,251		$	18,787,028		$	14,670,149
SHARES ISSUED AND OUTSTANDING
Shares Outstanding (Unlimited Shares Authorized)		575,000			750,000			600,000
Net Asset Value (NAV) Per Share	$	44.52		$	25.05		$	24.45
(a) Market value of securities on loan	$	1,002,807		$	2,184,624		$	3,564,894
(b) Non-cash collateral for securities on loan	$	774,721		$	—		$	656,708

See accompanying Notes to Financial Statements.

86

ADVISORSHARES TRUST
Statements of Assets and Liabilities

December 31, 2016 (Unaudited)

AdvisorShares Market Adaptive Unconstrained Income ETF			AdvisorShares Meidell Tactical Advantage ETF			AdvisorShares Morgan Creek Global Tactical ETF			AdvisorShares Newfleet Multi- Sector Income ETF			AdvisorShares Pacific Asset Enhanced Floating Rate ETF
$	1,258,236		$	7,970,362		$	7,312,769		$	261,229,446		$	27,026,056
	—			—			—			—			—
	—			1,917,256			545,537			2,100,337			127,264
	1,258,236			9,887,618			7,858,306			263,329,783			27,153,320
	1,265,056			8,445,722			7,491,903			259,735,342			27,214,364
	—			—			—			—			—
	—			1,917,256			545,537			2,100,337			127,264
	1,265,056			10,362,978			8,037,440			261,835,679			27,341,628
	—			—			—			490,692			25,517
	—			—			—			—			143,918
	5,346			21,303			2,192			1,001,969			117,975
	352,448			7,622,597			—			21,659			15,727
	—			—			—			—			—
	6,910			—			—			—			—
	17,410			5,730			3,477			58,685			25,429
	1,647,170			18,012,608			8,043,109			263,408,684			27,670,194
	—			1,917,256			545,537			2,100,337			127,264
	—			8,901			1,357			143,424			15,470
	21			94			130			369			137
	437,800			1,413,000			—			1,167,397			—
	357			352			385			1,032			424
	—			—			—			2,393			—
	24,580			29,537			36,616			147,055			39,647
	462,758			3,369,140			584,025			3,562,007			182,942
$	1,184,412		$	14,643,468		$	7,459,084		$	259,846,677		$	27,487,252
$	1,342,697		$	16,082,762		$	27,502,203		$	265,342,996		$	27,488,348
	(28,791	)		(30,954	)		(54,878	)		(963,682	)		7,439
	(136,314	)		(1,883,700	)		(20,167,375	)		(3,038,533	)		(340,761	)
	6,820			475,360			179,134			(1,494,104	)		332,226
$	1,184,412		$	14,643,468		$	7,459,084		$	259,846,677		$	27,487,252
	50,000			500,000			325,000			5,350,000			550,000
$	23.69		$	29.29		$	22.95		$	48.57		$	49.98
$	—		$	2,752,960		$	531,756		$	2,373,953		$	367,930
$	—		$	895,610		$	—		$	333,533		$	249,356

See accompanying Notes to Financial Statements.

87

ADVISORSHARES TRUST
Statements of Assets and Liabilities

December 31, 2016 (Unaudited)

	AdvisorShares Peritus High Yield ETF			AdvisorShares QAM Equity Hedge ETF
ASSETS
Investments, at Cost	$	200,979,297		$	5,026,883
Investments in Affiliates, at Cost (Note 9)		—			280,000
Repurchase Agreements, at Cost (Note 3)		18,165,461			—
Total Cost of Investments		219,144,758			5,306,883
Investments, at Market Value (including securities on loan) (Note 3)(a)		201,104,802			5,258,692
Investments in Affiliates, at Market Value (Note 9)		—			278,180
Repurchase Agreements, at Market Value (Note 3)		18,165,461			—
Total Market Value of Investments		219,270,263			5,536,872
Cash.		564,349			847
Cash collateral held at brokers		—			269,945
Dividends and Interest Receivable		2,736,654			1,303
Receivable from Securities Sold		—			—
Due from Investment Advisor		—			1,069
Prepaid CCO Fees		—			—
Prepaid Expenses		95,107			7,566
Total Assets		222,666,373			5,817,602
LIABILITIES
Interest Payable.		—			—
Cash collateral for securities on loan(b)		23,293,461			—
Advisory Fees Payable		193,947			—
Trustee Fees Payable		327			60
Securities Sold, Not Yet Purchased(c)		—			254,563
Payable for Securities Purchased		—			—
Options Written, at Value(d)		—			—
Capital Shares Payable		—			—
CCO Fees Payable		3,072			391
Due to Broker		—			—
Dividend Payable		—			—
Dividend Payable on Securities Sold, Not Yet Purchased		—			—
Accrued Expenses		126,597			29,520
Total Liabilities		23,617,404			284,534
NET ASSETS	$	199,048,969		$	5,533,068
COMPONENTS OF NET ASSETS
Capital Stock at Zero Par Value	$	379,454,594		$	5,532,111
Undistributed (Accumulated) Net Investment Income (Loss)		(93,433	)		(20,425	)
Undistributed (Accumulated) Net Gain (Loss) on investments, swaps, short sales, foreign currency transactions, futures, and options written		(180,437,697	)		(222,024	)
Unrealized Appreciation (Depreciation) on investments, swaps, short sales, options written, futures, and foreign currency translations		125,505			243,406
NET ASSETS	$	199,048,969		$	5,533,068
SHARES ISSUED AND OUTSTANDING
Shares Outstanding (Unlimited Shares Authorized)		5,500,000			200,000
Net Asset Value (NAV) Per Share	$	36.19		$	27.67
(a) Market value of securities on loan	$	33,328,565		$	—
(b) Non-cash collateral for securities on loan	$	10,828,416		$	—
(c) Proceeds Received from Securities Sold, Not Yet Purchased	$	—		$	267,980
(d) Premiums Received for Options Written	$	—		$	—

____________

(1) Formerly known as, AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF.

(2) Formerly known as, AdvisorShares TrimTabs Float Shrink ETF.

See accompanying Notes to Financial Statements.

88

ADVISORSHARES TRUST
Statements of Assets and Liabilities

December 31, 2016 (Unaudited)

AdvisorShares Ranger Equity Bear ETF			AdvisorShares Sage Core Reserves ETF			AdvisorShares STAR Global Buy-Write ETF			AdvisorShares Wilshire Buyback ETF(2)
$	16,135,281		$	87,695,890		$	16,052,685		$	125,651,895
	67,115,250			—			—			—
	—			30,907			—			2,551,576
	83,250,531			87,726,797			16,052,685			128,203,471
	16,135,281			87,696,107			17,318,880			144,671,460
	67,061,250			—			—			—
	—			30,907			—			2,551,576
	83,196,531			87,727,014			17,318,880			147,223,036
	79,609,147			—			—			—
	165,684,521			119,156			—			—
	16,229			365,603			72,322			195,225
	6,710,911			—			—			—
	—			—			—			—
	—			548			—			—
	24,445			43,518			3,259			40,008
	335,241,784			88,255,839			17,394,461			147,458,269
	9,265			—			—			—
	—			30,907			—			2,551,576
	224,697			17,203			18,930			90,961
	142			—			97			445
	163,541,562			—			—			—
	5,076,346			1,240,534			—			—
	—			—			13,952			—
	693,826			—			—			—
	163			—			524			3,741
	—			—			434			—
	—			—			140,175			—
	15,810			—			—			—
	76,454			55,968			33,521			72,432
	169,638,265			1,344,612			207,633			2,719,155
$	165,603,519		$	86,911,227		$	17,186,828		$	144,739,114
$	374,429,296		$	87,198,129		$	16,762,184		$	143,597,302
	(4,696,733	)		(44,431	)		(9,359	)		21,989
	(192,780,155	)		(242,688	)		(854,867	)		(17,899,742	)
	(11,348,889	)		217			1,288,870			19,019,565
$	165,603,519		$	86,911,227		$	17,186,828		$	144,739,114
	17,875,000			875,000			625,000			2,275,000
$	9.26		$	99.33		$	27.50		$	63.62
$	—		$	30,206		$	—		$	5,598,055
$	—		$	—		$	—		$	3,172,921
$	152,246,673		$	—		$	—		$	—
$	—		$	—		$	36,627		$	—

See accompanying Notes to Financial Statements.

89

ADVISORSHARES TRUST
Statements of Operations

For the Six Months Ended December 31, 2016 (Unaudited)

	AdvisorShares Athena High Dividend ETF			AdvisorShares Cornerstone Small Cap ETF(1)
INVESTMENT INCOME:
Dividend Income	$	224,502		$	16,467
Dividend Income from Affiliates		—			—
Interest Income		57			31
Securities lending income (net) (Note 3)		3,759			297
Foreign withholding tax		(5,128	)		—
Total Investment Income		223,190			16,795
EXPENSES:
Advisory Fees		30,919			9,724
Accounting & Administration Fees		28,784			598
Professional Fees		15,013			29,234
Exchange Listing Fees		3,218			5,189
Custody Fees		1,130			773
Report to Shareholders		1,479			5,191
Trustee Fees		2,134			1,768
CCO Fees		1,280			1,163
Pricing Fees		2,259			2,329
Transfer Agent Fees		290			112
Insurance Fees		265			25
Contribution to Global Echo Foundation		—			—
Licensing Fees		—			—
Miscellaneous Fees		386			639
Total Expenses		87,157			56,745
Advisory Fees Waived/Recoupment		(30,919	)		(9,724	)
Expense Reimbursement		(17,976	)		(33,557	)
Net Expenses		38,262			13,464
Net Investment Income (Loss)		184,928			3,331
REALIZED AND UNREALIZED GAIN (LOSS) ON:
Net Realized Gain (Loss) on:
Investments		405,863			36,890
In-Kind Redemptions		32,618			155,514
Futures		—			—
Foreign Currency Transactions		—			—
Distributions by other Investment Companies		—			—
Net Change in Unrealized Appreciation (Depreciation) on:
Investments		121,439			394,060
Futures		—			—
Foreign Currency Translations		—			—
Net Realized and Unrealized Gain (Loss)		559,920			586,464
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	744,848		$	589,795

See accompanying Notes to Financial Statements.

90

ADVISORSHARES TRUST
Statements of Operations

For the Six Months Ended December 31, 2016 (Unaudited)

AdvisorShares Dorsey Wright ADR ETF(2)			AdvisorShares Focused Equity ETF(3)			AdvisorShares Gartman Gold/ Euro ETF (Consolidated)			AdvisorShares Gartman Gold/ Yen ETF (Consolidated)			AdvisorShares Global Echo ETF			AdvisorShares KIM Korea Equity ETF(4)
$	101,357		$	9,577		$	—		$	—		$	26,516		$	88,318
	—			—			9,754			9,753			—			—
	327			151			1,132			1,097			12,982			—
	11,308			—			—			—			284			—
	(23,267	)		—			—			—			(356	)		(19,429	)
	89,725			9,728			10,886			10,850			39,426			68,889
	60,770			8,524			69,523			66,201			29,451			7,878
	37,705			455			36,831			36,202			—			375
	16,473			21,369			14,526			14,471			—			14,504
	4,633			2,148			3,851			3,851			—			2,057
	871			310			1,284			1,277			—			537
	3,085			3,092			3,190			3,934			—			2,576
	2,049			1,046			2,035			2,135			—			1,030
	1,583			803			1,507			1,610			—			735
	3,856			1,237			4,389			4,168			—			1,125
	608			85			948			903			—			70
	432			—			326			560			—			—
	—			—			—			—			10,709			—
	3,943			—			—			—			—			—
	612			521			8			60			—			413
	136,620			39,590			138,418			135,372			40,160			31,300
	(35,336	)		(8,524	)		(56,246	)		(57,127	)		—			(7,878	)
	—			(22,542	)		—			—			—			(14,137	)
	101,284			8,524			82,172			78,245			40,160			9,285
	(11,559	)		1,204			(71,286	)		(67,395	)		(734	)		59,604
	(700,995	)		(21,047	)		—			—			103,733			(37,119	)
	1,791,146			—			—			—			166,215			—
	—			—			(104,606	)		949,706			—			—
	—			—			—			—			—			(31,599	)
	—			—			—			—			1			—
	(574,073	)		80,408			(6,500	)		(6,500	)		(185,615	)		(222,712	)
	—			—			(2,472,503	)		(1,570,000	)		—			—
	—			—			—			—			—			51
	516,078			59,361			(2,583,609	)		(626,794	)		84,334			(291,379	)
$	504,519		$	60,565		$	(2,654,895	)	$	(694,189	)	$	83,600		$	(231,775	)

See accompanying Notes to Financial Statements.

91

ADVISORSHARES TRUST
Statements of Operations

For the Six Months Ended December 31, 2016 (Unaudited)

	AdvisorShares Madrona Domestic ETF			AdvisorShares Madrona Global Bond ETF
INVESTMENT INCOME:
Dividend Income	$	263,274		$	337,370
Dividend Income from Affiliates		—			79,798
Interest Income		1,116			451
Securities lending income (net) (Note 3)		1,132			30,412
Foreign withholding tax		—			—
Total Investment Income		265,522			448,031
EXPENSES:
Advisory Fees		112,152			50,517
Accounting & Administration Fees		42,740			37,361
Professional Fees		13,302			13,170
Exchange Listing Fees		4,715			4,634
Custody Fees		5,387			760
Report to Shareholders		3,986			3,051
Trustee Fees		2,134			2,132
CCO Fees		2,082			1,849
Pricing Fees		3,941			3,934
Transfer Agent Fees		1,052			758
Insurance Fees		1,076			794
Miscellaneous Fees		1,036			853
Total Expenses		193,603			119,813
Advisory Fees Waived/Recoupment		(18,365	)		(23,830	)
Expense Reimbursement		—			—
Net Expenses		175,238			95,983
Net Investment Income (Loss)		90,284			352,048
REALIZED AND UNREALIZED GAIN (LOSS) ON:
Net Realized Gain (Loss) on:
Investments		(865,863	)		(53,015	)
Investments in Affiliates		—			18,248
In-Kind Redemptions		2,550,920			64,938
Swaps		—			—
Distributions by other Investment Companies		144			6,493
Net Change in Unrealized Appreciation (Depreciation) on:
Investments		954,078			(444,153	)
Swaps		—			—
Net Realized and Unrealized Gain (Loss)		2,639,279			(407,489	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	2,729,563		$	(55,441	)

See accompanying Notes to Financial Statements.

92

ADVISORSHARES TRUST
Statements of Operations

For the Six Months Ended December 31, 2016 (Unaudited)

AdvisorShares Madrona International ETF			AdvisorShares Market Adaptive Unconstrained Income ETF			AdvisorShares Meidell Tactical Advantage ETF			AdvisorShares Morgan Creek Global Tactical ETF			AdvisorShares Newfleet Multi-Sector Income ETF			AdvisorShares Pacific Asset Enhanced Floating Rate ETF
$	195,070		$	22,502		$	117,877		$	26,754		$	—		$	—
	—			—			—			—			—			—
	1,812			296			1,450			4,459			3,517,468			635,748
	13,758			—			5,372			9,587			3,923			895
	(18,842	)		—			—			—			(154	)		—
	191,798			22,798			124,699			40,800			3,521,237			636,643
	61,654			5,393			98,293			34,578			869,671			130,399
	40,905			28,941			37,532			36,834			93,454			24,437
	12,940			17,887			13,921			12,464			24,528			14,198
	4,634			1,492			4,684			4,191			4,632			5,353
	3,176			724			1,588			633			15,784			3,455
	2,159			949			2,246			636			32,657			3,431
	2,136			2,141			2,131			2,035			2,110			2,130
	1,669			1,217			1,666			1,418			8,884			1,846
	3,941			1,752			3,009			3,969			10,215			4,456
	578			45			614			288			10,036			1,029
	569			30			567			246			7,726			782
	673			210			653			443			6,455			886
	135,034			60,781			166,904			97,735			1,086,152			192,402
	(38,700	)		(5,393	)		(56,324	)		(34,578	)		(82,685	)		(41,414	)
	—			(49,456	)		—			(15,133	)		—			—
	96,334			5,932			110,580			48,024			1,003,467			150,988
	95,464			16,866			14,119			(7,224	)		2,517,770			485,655
	120,826			12,938			1,277,667			(8,607	)		158,410			(54,435	)
	—			—			2,663			—			—			—
	110,849			—			249,032			—			22			—
	—			—			—			—			—			(11,457	)
	236			—			—			5,320			2,843			—
	1,227,720			(13,953	)		42,891			(132,020	)		(518,496	)		606,250
	—			—			—			—			—			161,054
	1,459,631			(1,015	)		1,572,253			(135,307	)		(357,221	)		701,412
$	1,555,095		$	15,851		$	1,586,372		$	(142,531	)	$	2,160,549		$	1,187,067

See accompanying Notes to Financial Statements.

93

ADVISORSHARES TRUST
Statements of Operations

For the Six Months Ended December 31, 2016 (Unaudited)

	AdvisorShares Peritus High Yield ETF			AdvisorShares QAM Equity Hedge ETF
INVESTMENT INCOME:
Dividend Income	$	—		$	41,336
Dividend Income from Affiliates		—			1,481
Interest Income		9,503,833			1,677
Securities lending income (net) (Note 3)		55,759			—
Total Investment Income		9,559,592			44,494
EXPENSES:
Advisory Fees		1,138,123			27,615
Accounting & Administration Fees		55,677			37,670
Professional Fees		27,752			11,801
Exchange Listing Fees		4,634			4,634
Custody Fees		8,999			225
Report to Shareholders		31,451			695
Trustee Fees		1,933			2,134
CCO Fees		9,533			1,329
Pricing Fees		7,132			5,481
Transfer Agent Fees		7,761			207
Insurance Fees		6,409			165
Interest on Securities Sold, Not Yet Purchased		—			1,319
Dividend Expense		—			—
Miscellaneous Fees		6,223			381
Total Expenses		1,305,627			93,656
Advisory Fees Waived/Recoupment		2,250			(27,615	)
Expense Reimbursement		—			(23,299	)
Net Expenses		1,307,877			42,742
Net Investment Income (Loss)		8,251,715			1,752
REALIZED AND UNREALIZED GAIN (LOSS) ON:
Net Realized Gain (Loss) on:
Investments		(13,989,688	)		61,860
Investments in Affiliates		—			—
In-Kind Redemptions		134,387			—
Short Sales		—			3,369
Options Written		—			—
Distributions by other Investment Companies		987			207
Net Change in Unrealized Appreciation (Depreciation) on:
Investments		26,655,277			112,293
Short Sales		—			13,417
Options Written		—			—
Net Realized and Unrealized Gain (Loss)		12,800,963			191,146
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	21,052,678		$	192,898

____________

(1)Represents the period July 6, 2016 (commencement of operations) to December 31, 2016.

(2)Formerly known as, AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF.

(3)Represents the period September 20, 2016 (commencement of operations) to December 31, 2016.

(4)Represents the period September 28, 2016 (commencement of operations) to December 31, 2016.

(5)Formerly known as, AdvisorShares TrimTabs Float Shrink ETF.

See accompanying Notes to Financial Statements.

94

ADVISORSHARES TRUST
Statements of Operations

For the Six Months Ended December 31, 2016 (Unaudited)

AdvisorShares Ranger Equity Bear ETF			AdvisorShares Sage Core Reserves ETF			AdvisorShares STAR Global Buy-Write ETF			AdvisorShares Wilshire Buyback ETF(5)
$	—		$	—		$	212,661		$	1,360,635
	417,841			—			—			—
	2,635			609,100			1,140			2,862
	—			626			—			13,992
	420,476			609,726			213,801			1,377,489
	1,499,311			146,932			118,379			656,424
	39,982			47,329			37,617			36,061
	24,288			17,063			13,900			34,186
	4,634			3,949			4,634			4,633
	7,520			4,741			1,308			7,450
	20,882			6,238			2,845			31,242
	2,066			2,134			2,132			2,111
	6,307			2,710			1,819			8,712
	5,645			6,712			4,598			2,825
	7,497			3,674			658			5,470
	4,826			1,743			683			7,179
	667,786			—			—			—
	585,829			—			—			—
	6,232			1,223			741			6,519
	2,882,805			244,448			189,314			802,812
	—			(73,029	)		(27,091	)		(146,387	)
	—			—			—			—
	2,882,805			171,419			162,223			656,425
	(2,462,329	)		438,307			51,578			721,064
	—			11,862			(177,257	)		(6,607,684	)
	(180,309	)		—			—			—
	—			—			70,078			6,031,919
	(10,710,200	)		—			—			—
	—			—			(26,296	)		—
	—			—			943			—
	(85,725	)		(36,945	)		693,852			21,323,650
	(13,156,242	)		—			—			—
	—			—			1,334			—
	(24,132,476	)		(25,083	)		562,654			20,747,885
$	(26,594,805	)	$	413,224		$	614,232		$	21,468,949

See accompanying Notes to Financial Statements.

95

ADVISORSHARES TRUST
Statements of Changes in Net Assets

	AdvisorShares Athena High Dividend ETF
		Six months ended December 31, 2016 (Unaudited)			Year ended June 30, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income (Loss)	$	184,928		$	278,470
Net Realized Gain (Loss)		438,481			(3,566,483	)
Net Change in Unrealized Appreciation (Depreciation)		121,439			1,364,474
Net Increase (Decrease) In Net Assets Resulting From Operations		744,848			(1,923,539	)
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income		(187,278	)		(259,133	)
Net Realized Gains		���			—
Total Distributions		(187,278	)		(259,133	)
CAPITAL STOCK TRANSACTIONS
Proceeds from Shares Issued		402,732			—
Value of Shares Redeemed		(420,146	)		(5,569,228	)
Net Increase (Decrease) From Capital Stock Transactions		(17,414	)		(5,569,228	)
Net Increase (Decrease) in Net Assets		540,156			(7,751,900	)
Net Assets:
Beginning of Period		7,512,852			15,264,752
End of Period	$	8,053,008		$	7,512,852
Undistributed (Accumulated) Net Investment Income (Loss)	$	23,255		$	25,605
Changes in Shares Outstanding
Shares Outstanding, Beginning of Period		450,000			800,000
Shares Sold		25,000			—
Shares Repurchased		(25,000	)		(350,000	)
Shares Outstanding, End of Period		450,000			450,000

See accompanying Notes to Financial Statements.

96

ADVISORSHARES TRUST
Statements of Changes in Net Assets

AdvisorShares Cornerstone Small Cap ETF			AdvisorShares Dorsey Wright ADR ETF(1)						AdvisorShares Focused Equity ETF			AdvisorShares Gartman Gold/Euro ETF (Consolidated)
	For the period July 6, 2016* to December 31, 2016			Six months ended December 31, 2016 (Unaudited)			Year ended June 30, 2016			For the period September 20, 2016* to December 31, 2016 (Unaudited)			Six months ended December 31, 2016 (Unaudited)			Year ended June 30, 2016
$	3,331		$	(11,559	)	$	70,747		$	1,204		$	(71,286	)	$	(92,263)
	192,404			1,090,151			483,995			(21,047	)		(104,606	)		(200,543)
	394,060			(574,073	)		(688,575	)		80,408			(2,479,003	)		1,833,062
	589,795			504,519			(133,833	)		60,565			(2,654,895	)		1,540,256
	(2,606	)		(57,839	)		(80,669	)		(2,637	)		(1,243,425	)		—
	—			—			—			—			(47,955	)		(893,000)
	(2,606	)		(57,839	)		(80,669	)		(2,637	)		(1,291,380	)		(893,000)
	2,759,267			12,240,914			3,855,068			7,723,158			10,357,136			12,811,077
	(755,165	)		(9,195,616	)		(4,536,081	)		—			(11,387,233	)		(7,783,359)
	2,004,102			3,045,298			(681,013	)		7,723,158			(1,030,097	)		5,027,718
	2,591,291			3,491,978			(895,515	)		7,781,086			(4,976,372	)		5,674,974
	—			14,647,983			15,543,498			—			22,432,829			16,757,855
$	2,591,291		$	18,139,961		$	14,647,983		$	7,781,086		$	17,456,457		$	22,432,829
$	725		$	(11,557	)	$	57,841		$	(1,433	)	$	(1,406,964	)	$	(92,253)
	—			375,000			400,000			—			1,625,000			1,275,000
	111,476			300,000			100,000			300,000			750,000			975,000
	(25,000	)		(225,000	)		(125,000	)		—			(875,000	)		(625,000)
	86,476			450,000			375,000			300,000			1,500,000			1,625,000

See accompanying Notes to Financial Statements.

97

ADVISORSHARES TRUST
Statements of Changes in Net Assets

	AdvisorShares Gartman Gold/Yen ETF (Consolidated)						AdvisorShares Global Echo ETF
		Six months ended December 31, 2016 (Unaudited)			Year ended June 30, 2016			Six months ended December 31, 2016 (Unaudited)			Year ended June 30, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income (Loss)	$	(67,395	)	$	(120,061	)	$	(734	)	$	(6,439	)
Net Realized Gain (Loss)		949,706			(3,173,447	)		269,949			(68,100	)
Net Change in Unrealized Appreciation (Depreciation)		(1,576,500	)		1,583,471			(185,615	)		(197,111	)
Net Increase (Decrease) In Net Assets Resulting From Operations		(694,189	)		(1,710,037	)		83,600			(271,650	)
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income		(1,403,577	)		—			(12,099	)		(20,356	)
Net Realized Gains		—			(512,262	)		—			(57,228	)
Total Distributions		(1,403,577	)		(512,262	)		(12,099	)		(77,584	)
CAPITAL STOCK TRANSACTIONS
Proceeds from Shares Issued		2,404,697			19,557,212			—			—
Value of Shares Redeemed		(7,589,120	)		(16,107,685	)		(1,531,858	)		(1,507,359	)
Net Increase (Decrease) From Capital Stock Transactions		(5,184,423	)		3,449,527			(1,531,858	)		(1,507,359	)
Net Increase (Decrease) in Net Assets		(7,282,189	)		1,227,228			(1,460,357	)		(1,856,593	)
Net Assets:
Beginning of Period		24,248,881			23,021,653			6,002,279			7,858,872
End of Period	$	16,966,692		$	24,248,881		$	4,541,922		$	6,002,279
Undistributed (Accumulated) Net Investment Income (Loss)	$	(1,591,049	)	$	(120,077	)	$	(12,442	)	$	391
Changes in Shares Outstanding
Shares Outstanding, Beginning of Period		2,025,000			1,750,000			100,000			125,000
Shares Sold		200,000			1,600,000			—			—
Shares Repurchased		(650,000	)		(1,325,000	)		(25,000	)		(25,000	)
Shares Outstanding, End of Period		1,575,000			2,025,000			75,000			100,000

See accompanying Notes to Financial Statements.

98

ADVISORSHARES TRUST
Statements of Changes in Net Assets

AdvisorShares KIM Korea Equity ETF			AdvisorShares Madrona Domestic ETF						AdvisorShares Madrona Global Bond ETF
	For the period September 28, 2016* to December 31, 2016			Six months ended December 31, 2016 (Unaudited)			Year ended June 30, 2016			Six months ended December 31, 2016 (Unaudited)			Year ended June 30, 2016
$	59,604		$	90,284		$	173,979		$	352,048		$	714,208
	(68,718	)		1,685,201			268,366			36,664			43,922
	(222,661	)		954,078			(2,651,897	)		(444,153	)		419,244
	(231,775	)		2,729,563			(2,209,552	)		(55,441	)		1,177,374
	(37,281	)		(174,323	)		(118,397	)		(377,557	)		(721,446)
	—			—			—			—			—
	(37,281	)		(174,323	)		(118,397	)		(377,557	)		(721,446)
	7,729,996			5,659,352			7,647,630			647,163			2,474,466
	—			(10,062,641	)		(9,448,872	)		(1,914,769	)		(10,538,481)
	7,729,996			(4,403,289	)		(1,801,242	)		(1,267,606	)		(8,064,015)
	7,460,940			(1,848,049	)		(4,129,191	)		(1,700,604	)		(7,608,087)
	—			27,445,300			31,574,491			20,487,632			28,095,719
$	7,460,940		$	25,597,251		$	27,445,300		$	18,787,028		$	20,487,632
$	22,323		$	(2,875	)	$	81,164		$	(21,747	)	$	3,762
	—			675,000			725,000			800,000			1,125,000
	325,000			125,000			175,000			25,000			100,000
	—			(225,000	)		(225,000	)		(75,000	)		(425,000)
	325,000			575,000			675,000			750,000			800,000

See accompanying Notes to Financial Statements.

99

ADVISORSHARES TRUST
Statements of Changes in Net Assets

	AdvisorShares Madrona International ETF						AdvisorShares Market Adaptive Unconstrained Income ETF
		Six months ended December 31, 2016 (Unaudited)			Year ended June 30, 2016			Six months ended December 31, 2016 (Unaudited)			Year ended June 30, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income (Loss)	$	95,464		$	286,475		$	16,866		$	14,691
Net Realized Gain (Loss)		231,911			(3,103,349	)		12,938			19,130
Net Change in Unrealized Appreciation (Depreciation)		1,227,720			(592,166	)		(13,953	)		(41,784	)
Net Increase (Decrease) In Net Assets Resulting From Operations		1,555,095			(3,409,040	)		15,851			(7,963	)
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income		(306,516	)		(242,962	)		—			(14,901	)
Total Distributions		(306,516	)		(242,962	)		—			(14,901	)
CAPITAL STOCK TRANSACTIONS
Proceeds from Shares Issued		—			1,330,179			—			567,348
Value of Shares Redeemed		(1,240,797	)		(2,380,477	)		—			(1,169,735	)
Net Increase (Decrease) From Capital Stock Transactions		(1,240,797	)		(1,050,298	)		—			(602,387	)
Net Increase (Decrease) in Net Assets		7,782			(4,702,300	)		15,851			(625,251	)
Net Assets:
Beginning of Period		14,662,367			19,364,667			1,168,561			1,793,812
End of Period	$	14,670,149		$	14,662,367		$	1,184,412		$	1,168,561
Undistributed (Accumulated) Net Investment Income (Loss)	$	(2,648	)	$	208,404		$	(28,791	)	$	(45,657	)
Changes in Shares Outstanding
Shares Outstanding, Beginning of Period		650,000			700,000			50,000			75,000
Shares Sold		—			50,000			—			25,000
Shares Repurchased		(50,000	)		(100,000	)		—			(50,000	)
Shares Outstanding, End of Period		600,000			650,000			50,000			50,000

See accompanying Notes to Financial Statements.

100

ADVISORSHARES TRUST
Statements of Changes in Net Assets

AdvisorShares Meidell Tactical Advantage ETF						AdvisorShares Morgan Creek Global Tactical ETF						AdvisorShares Newfleet Multi-Sector Income ETF
	Six months ended December 31, 2016 (Unaudited)			Year ended June 30, 2016			Six months ended December 31, 2016 (Unaudited)			Year ended June 30, 2016			Six months ended December 31, 2016 (Unaudited)			Year ended June 30, 2016
$	14,119		$	(47,388	)	$	(7,224	)	$	(29,636	)	$	2,517,770		$	6,056,456
	1,529,362			(2,747,566	)		(3,287	)		(894,252	)		161,275			(1,122,319)
	42,891			138,383			(132,020	)		363,211			(518,496	)		810,979
	1,586,372			(2,656,571	)		(142,531	)		(560,677	)		2,160,549			5,745,116
	—			(64,850	)		—			(132,900	)		(3,627,477	)		(6,656,079)
	—			(64,850	)		—			(132,900	)		(3,627,477	)		(6,656,079)
	—			5,034,610			—			2,187,104			7,340,744			56,042,886
	(5,582,157	)		(645,687	)		—			(6,200,874	)		(7,290,627	)		(9,809,241)
	(5,582,157	)		4,388,923			—			(4,013,770	)		50,117			46,233,645
	(3,995,785	)		1,667,502			(142,531	)		(4,707,347	)		(1,416,811	)		45,322,682
	18,639,253			16,971,751			7,601,615			12,308,962			261,263,488			215,940,806
$	14,643,468		$	18,639,253		$	7,459,084		$	7,601,615		$	259,846,677		$	261,263,488
$	(30,954	)	$	(45,073	)	$	(54,878	)	$	(47,654	)	$	(963,682	)	$	146,025
	700,000			550,000			325,000			500,000			5,350,000			4,400,000
	—			175,000			—			100,000			150,000			1,150,000
	(200,000	)		(25,000	)		—			(275,000	)		(150,000	)		(200,000)
	500,000			700,000			325,000			325,000			5,350,000			5,350,000

See accompanying Notes to Financial Statements.

101

ADVISORSHARES TRUST
Statements of Changes in Net Assets

	AdvisorShares Pacific Asset Enhanced Floating Rate ETF						AdvisorShares Peritus High Yield ETF
	Six months ended December 31, 2016 (Unaudited)			Year ended June 30, 2016			Six months ended December 31, 2016 (Unaudited)			Year ended June 30, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income (Loss)	$	485,655		$	954,988		$	8,251,715		$	21,260,864
Net Realized Gain (Loss)		(65,892	)		(262,970	)		(13,854,314	)		(50,581,746	)
Net Change in Unrealized Appreciation (Depreciation)		767,304			(255,201	)		26,655,277			(1,853,685	)
Net Increase (Decrease) In Net Assets Resulting From Operations		1,187,067			436,817			21,052,678			(31,174,567	)
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income		(500,148	)		(948,096	)		(7,670,590	)		(20,463,098	)
Net Realized Gains		—			—			—			—
Total Distributions		(500,148	)		(948,096	)		(7,670,590	)		(20,463,098	)
CAPITAL STOCK TRANSACTIONS
Proceeds from Shares Issued		—			—			—			6,037,172
Value of Shares Redeemed		—			—			(15,933,978	)		(128,789,551	)
Net Increase (Decrease) From Capital Stock Transactions		—			—			(15,933,978	)		(122,752,379	)
Net Increase (Decrease) in Net Assets		686,919			(511,279	)		(2,551,890	)		(174,390,044	)
Net Assets:
Beginning of Period		26,800,333			27,311,612			201,600,859			375,990,903
End of Period	$	27,487,252		$	26,800,333		$	199,048,969		$	201,600,859
Undistributed (Accumulated) Net Investment Income (Loss)	$	7,439		$	21,932		$	(93,433	)	$	(674,558	)
Changes in Shares Outstanding
Shares Outstanding, Beginning of Period		550,000			550,000			5,950,000			9,250,000
Shares Sold		—			—			—			150,000
Shares Repurchased		—			—			(450,000	)		(3,450,000	)
Shares Outstanding, End of Period		550,000			550,000			5,500,000			5,950,000

See accompanying Notes to Financial Statements.

102

ADVISORSHARES TRUST
Statements of Changes in Net Assets

AdvisorShares QAM Equity Hedge ETF						AdvisorShares Ranger Equity Bear ETF						AdvisorShares Sage Core Reserves ETF
Six months ended December 31, 2016 (Unaudited)			Year ended June 30, 2016			Six months ended December 31, 2016 (Unaudited)			Year ended June 30, 2016			Six months ended December 31, 2016 (Unaudited)			Year ended June 30, 2016
$	1,752		$	(35,241	)	$	(2,462,329	)	$	(4,119,728	)	$	438,307		$	320,217
	65,436			(202,189	)		(10,890,509	)		(10,405,339	)		11,862			(77,612)
	125,710			(178,320	)		(13,241,967	)		(2,030,289	)		(36,945	)		129,670
	192,898			(415,750	)		(26,594,805	)		(16,555,356	)		413,224			372,275
	—			—			—			—			(500,610	)		(342,487)
	—			(65,720	)		—			—			—			—
	—			(65,720	)		—			—			(500,610	)		(342,487)
	—			—			45,555,133			183,691,687			12,428,209			77,049,895
	—			(1,349,002	)		(67,304,352	)		(81,247,512	)		(37,292,020	)		—
	—			(1,349,002	)		(21,749,219	)		102,444,175			(24,863,811	)		77,049,895
	192,898			(1,830,472	)		(48,344,024	)		85,888,819			(24,951,197	)		77,079,683
	5,340,170			7,170,642			213,947,543			128,058,724			111,862,424			34,782,741
$	5,533,068		$	5,340,170		$	165,603,519		$	213,947,543		$	86,911,227		$	111,862,424
$	(20,425	)	$	(22,177	)	$	(4,696,733	)	$	(2,234,404	)	$	(44,431	)	$	17,872
	200,000			250,000			20,175,000			11,775,000			1,125,000			350,000
	—			—			4,700,000			15,975,000			125,000			775,000
	—			(50,000	)		(7,000,000	)		(7,575,000	)		(375,000	)		—
	200,000			200,000			17,875,000			20,175,000			875,000			1,125,000

See accompanying Notes to Financial Statements.

103

ADVISORSHARES TRUST
Statements of Changes in Net Assets

	AdvisorShares STAR Global Buy-Write ETF						AdvisorShares Wilshire Buyback ETF(2)
	Six months ended December 31, 2016 (Unaudited)			Year ended June 30, 2016			Six months ended December 31, 2016 (Unaudited)			Year ended June 30, 2016
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net Investment Income (Loss)	$	51,578		$	82,434		$	721,064		$	1,748,728
Net Realized Gain (Loss)		(132,532	)		936,477			(575,765	)		(10,209,879)
Net Change in Unrealized Appreciation (Depreciation)		695,186			(1,039,731	)		21,323,650			(884,414)
Net Increase (Decrease) In Net Assets Resulting From Operations		614,232			(20,820	)		21,468,949			(9,345,565)
DISTRIBUTIONS TO SHAREHOLDERS FROM
Net Investment Income		(140,175	)		—			(1,650,149	)		(1,684,986)
Total Distributions		(140,175	)		—			(1,650,149	)		(1,684,986)
CAPITAL STOCK TRANSACTIONS
Proceeds from Shares Issued		—			5,254,099			23,475,789			22,380,556
Value of Shares Redeemed		(687,160	)		(14,430,069	)		(54,125,469	)		(98,252,134)
Net Increase (Decrease) From Capital Stock Transactions		(687,160	)		(9,175,970	)		(30,649,680	)		(75,871,578)
Net Increase (Decrease) in Net Assets		(213,103	)		(9,196,790	)		(10,830,880	)		(86,902,129)
Net Assets:
Beginning of Period		17,399,931			26,596,721			155,569,994			242,472,123
End of Period	$	17,186,828		$	17,399,931		$	144,739,114		$	155,569,994
Undistributed (Accumulated) Net Investment Income (Loss)	$	(9,359	)	$	79,238		$	21,989		$	951,074
Changes in Shares Outstanding
Shares Outstanding, Beginning of Period		650,000			1,000,000			2,800,000			4,250,000
Shares Sold		—			200,000			425,000			400,000
Shares Repurchased		(25,000	)		(550,000	)		(950,000	)		(1,850,000)
Shares Outstanding, End of Period		625,000			650,000			2,275,000			2,800,000

____________

*Commencement of operations.

(1)Formerly known as, AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF.

(2)Formerly known as, AdvisorShares TrimTabs Float Shrink ETF.

See accompanying Notes to Financial Statements.

104

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ADVISORSHARES TRUST
Financial Highlights

	AdvisorShares Athena High Dividend ETF									AdvisorShares Cornerstone Small Cap ETF
	Six months ended December 31, 2016 (Unaudited)			Year ended June 30, 2016			For the period July 29, 2014* to June 30, 2015			For the period July 6, 2016* to December 31, 2016 (Unaudited)
Selected Data for a Share of Capital Stock Outstanding
Net Asset Value, Beginning of Year/Period	$	16.70		$	19.08		$	25.00		$	25.15
Investment Operations
Net Investment Income (Loss)(3)		0.41			0.51			0.90			0.03
Net Realized and Unrealized Gain (Loss)		1.21			(2.41	)		(6.03	)		4.82
Distributions of Net Realized Gains by other investment companies		—			—			—			—
Net Increase (Decrease) in Net Assets Resulting from Investment Operations(5)		1.62			(1.90	)		(5.13	)		4.85
Distributions from Net Investment Income		(0.42	)		(0.48	)		(0.79	)		(0.03	)
Distributions from Realized Capital Gains		—			—			—			—
Total Distributions		(0.42	)		(0.48	)		(0.79	)		(0.03	)
Net Asset Value, End of Year/Period	$	17.90		$	16.70		$	19.08		$	29.97
Market Value, End of Year/Period	$	17.90		$	16.70		$	19.08		$	29.97
Total Return
Total Investment Return Based on Net Asset Value(6)		9.79	%		(9.84	)%		(20.71	)%		19.27	%
Total Investment Return Based on Market(6)		9.80	%		(9.83	)%		(20.65	)%		19.28	%
Ratios/Supplemental Data
Net Assets, End of Year/Period (000’s omitted)	$	8,053		$	7,513		$	15,265		$	2,591
Ratio to Average Net Assets of:
Expenses, net of expense waivers and reimbursements(7)		0.99	%		0.99	%		0.99	%		0.90	%
Expenses, prior to expense waivers and reimbursements(7)		2.26	%		1.76	%		1.71	%		3.79	%
Net Investment Income (Loss)(7)		4.78	%		3.13	%		4.60	%		0.22	%
Portfolio Turnover Rate(10)		107	%		199	%		193	%		47	%

See accompanying Notes to Financial Statements.

106

ADVISORSHARES TRUST
Financial Highlights

AdvisorShares Dorsey Wright ADR ETF(1)																		AdvisorShares Focused Equity ETF
Six months ended December 31, 2016 (Unaudited)			Year ended June 30, 2016			Year ended June 30, 2015			Year ended June 30, 2014			Year ended June 30, 2013			Year ended June 30, 2012			For the period September 20, 2016* to December 31, 2016 (Unaudited)
$	39.06		$	38.86		$	38.95		$	32.65		$	28.72		$	31.46		$	25.00
	(0.03	)		0.17			0.34			0.18			0.11			0.07			0.01
	1.43			0.23			(0.20	)		6.29			3.99			(2.58	)		0.94
	—			—			—			—			0.00	(4)		—			—
	1.40			0.40			0.14			6.47			4.10			(2.51	)		0.95
	(0.15	)		(0.20	)		(0.23	)		(0.17	)		(0.17	)		(0.11	)		(0.01	)
	—			—			—			—			—			(0.12	)		—
	(0.15	)		(0.20	)		(0.23	)		(0.17	)		(0.17	)		(0.23	)		(0.01	)
$	40.31		$	39.06		$	38.86		$	38.95		$	32.65		$	28.72		$	25.94
$	40.25		$	39.06		$	38.77		$	38.93		$	32.63		$	28.70		$	25.95
	3.58	%		1.05	%		0.36	%		19.85	%		14.30	%		(7.94	)%		3.78	%
	3.43	%		1.27	%		0.19	%		19.85	%		14.29	%		(8.36	)%		3.84	%
$	18,140		$	14,648		$	15,543		$	12,660		$	7,346		$	6,462		$	7,781
	1.25	%		1.25	%		1.25	%		1.25	%		1.25	%		1.25	%		0.75	%
	1.69	%		1.62	%		1.63	%		1.67	%		2.52	%		4.17	%		3.48	%
	(0.14	)%		0.44	%		0.88	%		0.50	%		0.36	%		0.24	%		0.11	%
	68	%(12)		25	%		27	%		24	%		38	%		16	%		68	%

See accompanying Notes to Financial Statements.

107

ADVISORSHARES TRUST
Financial Highlights

	AdvisorShares Gartman Gold/Euro ETF (Consolidated)
	Six months ended December 31, 2016 (Unaudited)			Year ended June 30, 2016			Year ended June 30, 2015			For the period February 11, 2014* to June 30, 2014
Selected Data for a Share of Capital Stock Outstanding
Net Asset Value, Beginning of Year/Period	$	13.80		$	13.14		$	13.02		$	12.80
Investment Operations
Net Investment Income (Loss)(3)		(0.04	)		(0.08	)		(0.08	)		(0.03	)
Net Realized and Unrealized Gain (Loss)		(1.26	)		1.63			0.97			0.25
Distributions of Net Realized Gains by other investment companies		—			—			—			—
Net Increase (Decrease) in Net Assets Resulting from Investment Operations(5)		(1.30	)		1.55			0.89			0.22
Distributions from Net Investment Income		(0.83	)		—			(0.14	)		—
Distributions from Realized Capital Gains		(0.03	)		(0.89	)		(0.63	)		—
Total Distributions		(0.86	)		(0.89	)		(0.77	)		—
Net Asset Value, End of Year/Period	$	11.64		$	13.80		$	13.14		$	13.02
Market Value, End of Year/Period	$	11.62		$	13.98		$	13.11		$	13.07
Total Return
Total Investment Return Based on Net Asset Value(6)		(9.41	)%		13.29	%		7.33	%		1.72	%
Total Investment Return Based on Market(6)		(10.72	)%		15.11	%		6.56	%		2.11	%
Ratios/Supplemental Data
Net Assets, End of Year/Period (000’s omitted)	$	17,456		$	22,433		$	16,758		$	1,302
Ratio to Average Net Assets of:
Expenses, net of expense waivers and reimbursements(7)		0.65	%		0.65	%		0.65	%		0.65	%
Expenses, prior to expense waivers and reimbursements(7)		1.10	%		1.43	%		2.21	%		10.72	%
Net Investment Income (Loss)(7)		(0.56	)%		(0.64	)%		(0.63	)%		(0.63	)%
Portfolio Turnover Rate(10)		0	%		0	%		0	%		0	%

See accompanying Notes to Financial Statements.

108

ADVISORSHARES TRUST
Financial Highlights

AdvisorShares Gartman Gold/Yen ETF (Consolidated)												AdvisorShares Global Echo ETF
Six months ended December 31, 2016 (Unaudited)			Year ended June 30, 2016			Year ended June 30, 2015			For the period February 11, 2014* to June 30, 2014			Six months ended December 31, 2016 (Unaudited)			Year ended June 30, 2016			Year ended June 30, 2015			Year ended June 30, 2014			Year ended June 30, 2013			For the period May 23, 2012* to June 30, 2012
$	11.97		$	13.16		$	12.94		$	12.80		$	60.02		$	62.87		$	61.44		$	54.38		$	50.80		$	50.00
	(0.03	)		(0.08	)		(0.08	)		(0.03	)		(0.01	)		(0.05	)		(0.06	)		0.22			(0.07	)		(0.02	)
	(0.28	)		(0.70	)		0.86			0.17			0.70			(2.16	)		1.92			6.86			3.88			0.82
	—			—			—			—			0.00	(4)		—			—			—			—			—
	(0.31	)		(0.78	)		0.78			0.14			0.69			(2.21	)		1.86			7.08			3.81			0.80
	(0.89	)		—			(0.04	)		—			(0.15	)		(0.18	)		(0.43	)		(0.02	)		—			—
	—			(0.41	)		(0.52	)		—			—			(0.46	)		—			—			(0.23	)		—
	(0.89	)		(0.41	)		(0.56	)		—			(0.15	)		(0.64	)		(0.43	)		(0.02	)		(0.23	)		—
$	10.77		$	11.97		$	13.16		$	12.94		$	60.56		$	60.02		$	62.87		$	61.44		$	54.38		$	50.80
$	10.75		$	12.04		$	13.19		$	13.04		$	60.52		$	60.01		$	62.28		$	61.46		$	54.53		$	50.99
	(2.51	)%		(5.73	)%		6.06	%		1.09	%		1.13	%		(3.51	)%		3.05	%		13.03	%		7.54	%		1.60	%
	(3.31	)%		(5.36	)%		5.45	%		1.88	%		1.09	%		(2.61	)%		2.06	%		12.75	%		7.43	%		1.98	%
$	16,967		$	24,249		$	23,022		$	3,881		$	4,542		$	6,002		$	7,859		$	9,216		$	5,438		$	5,080
	0.65	%		0.65	%		0.65	%		0.65	%		1.50	%		1.50	%		1.50	%		1.50	%		1.50	%		1.50	%
	1.12	%		1.23	%		1.99	%		4.74	%		1.50	%		1.50	%		1.50	%		1.50	%		1.50	%		1.50	%
	(0.56	)%		(0.64	)%		(0.62	)%		(0.63	)%		(0.03	)%		(0.09	)%		(0.09	)%		0.37	%		(0.13	)%		(0.32	)%
	0	%		0	%		0	%		0	%		34	%		28	%		68	%		157	%		180	%		70	%

See accompanying Notes to Financial Statements.

109

ADVISORSHARES TRUST
Financial Highlights

	AdvisorShares KIM Korea Equity ETF			AdvisorShares Madrona Domestic ETF
	For the period September 28, 2016* to December 31, 2016 (Unaudited)			Six months ended December 31, 2016 (Unaudited)			Year ended June 30, 2016			Year ended June 30, 2015			Year ended June 30, 2014			Year ended June 30, 2013			Year ended June 30, 2012
Selected Data for a Share of Capital Stock Outstanding
Net Asset Value, Beginning of Year/Period	$	25.00		$	40.66		$	43.55		$	41.26		$	32.34		$	25.31		$	26.07
Investment Operations
Net Investment Income (Loss)(3)		0.38			0.14			0.23			0.13			0.11			0.15			0.10
Net Realized and Unrealized Gain (Loss)		(2.31	)		4.02			(2.97	)		2.30			8.91			7.01			(0.79	)
Distributions of Net Realized Gains by other investment companies		—			0.00	(4)		—			—			—			—			—
Net Increase (Decrease) in Net Assets Resulting from Investment Operations(5)		(1.93	)		4.16			(2.74	)		2.43			9.02			7.16			(0.69	)
Distributions from Net Investment Income		(0.11	)		(0.30	)		(0.15	)		(0.14	)		(0.10	)		(0.13	)		(0.07	)
Distributions from Realized Capital Gains		—			—			—			—			—			—			—
Total Distributions		(0.11	)		(0.30	)		(0.15	)		(0.14	)		(0.10	)		(0.13	)		(0.07	)
Net Asset Value, End of Year/Period	$	22.96		$	44.52		$	40.66		$	43.55		$	41.26		$	32.34		$	25.31
Market Value, End of Year/Period	$	22.98		$	44.53		$	40.67		$	43.55		$	41.26		$	32.34		$	25.28
Total Return
Total Investment Return Based on Net Asset Value(6)		(7.71	)%		10.22	%		(6.29	)%		5.89	%		27.93	%		28.37	%		(2.65	)%
Total Investment Return Based on Market(6)		(7.62	)%		10.23	%		(6.26	)%		5.89	%		27.93	%		28.52	%		(2.76	)%
Ratios/Supplemental Data
Net Assets, End of Year/Period (000’s omitted)	$	7,461		$	25,597		$	27,445		$	31,574		$	24,755		$	18,593		$	15,188
Ratio to Average Net Assets of:
Expenses, net of expense waivers and reimbursements(7)		0.99	%		1.25	%		1.25	%		1.25	%		1.25	%		1.25	%		1.25	%
Expenses, prior to expense waivers and reimbursements(7)		3.34	%		1.38	%		1.32	%		1.37	%		1.42	%		1.61	%		1.46	%
Net Investment Income (Loss)(7)		6.36	%		0.64	%		0.57	%		0.30	%		0.31	%		0.51	%		0.40	%
Portfolio Turnover Rate(10)		10	%		26	%		53	%		15	%		14	%		33	%		40	%

See accompanying Notes to Financial Statements.

110

ADVISORSHARES TRUST
Financial Highlights

AdvisorShares Madrona Global Bond ETF
Six months ended December 31, 2016 (Unaudited)			Year ended June 30, 2016			Year ended June 30, 2015			Year ended June 30, 2014			Year ended June 30, 2013				Year ended June 30, 2012
$	25.61		$	24.97		$	26.36		$	25.05		$	25.69			$	25.01
	0.45			0.75			0.74			0.86			0.72				0.71
	(0.53	)		0.59			(1.39	)		1.30			(0.66	)			0.67
	0.01			0.06			0.04			—			0.01				—
	(0.07	)		1.40			(0.61	)		2.16			0.07				1.38
	(0.49	)		(0.76	)		(0.78	)		(0.85	)		(0.71	)			(0.70	)
	—			—			—			—			(0.00		)(4)		—
	(0.49	)		(0.76	)		(0.78	)		(0.85	)		(0.71		)		(0.70	)
$	25.05		$	25.61		$	24.97		$	26.36		$	25.05			$	25.69
$	25.05		$	25.62		$	24.96		$	26.42		$	24.96			$	25.68
	(0.30	)%		5.76	%		(2.37	)%		8.80	%		0.20		%		5.59	%
	(0.34	)%		5.84	%		(2.63	)%		9.44	%		(0.13		)%		5.49	%
$	18,787		$	20,488		$	28,096		$	24,383		$	22,543			$	21,195
	0.95	%		0.95	%		0.95	%		0.95	%		0.95		%		0.95	%
	1.19	%		1.05	%		0.99	%		1.07	%		1.02		%		0.99	%
	3.48	%		3.01	%		2.88	%		3.36	%		2.73		%		2.81	%
	8	%		24	%		34	%		20	%		28		%		12	%

See accompanying Notes to Financial Statements.

111

ADVISORSHARES TRUST
Financial Highlights

	AdvisorShares Madrona International ETF
	Six months ended December 31, 2016 (Unaudited)			Year ended June 30, 2016			Year ended June 30, 2015			Year ended June 30, 2014			Year ended June 30, 2013			Year ended June 30, 2012
Selected Data for a Share of Capital Stock Outstanding
Net Asset Value, Beginning of Year/Period	$	22.56		$	27.66		$	29.66		$	23.97		$	21.06		$	26.17
Investment Operations
Net Investment Income (Loss)(3)		0.15			0.41			0.39			0.41			0.39			0.32
Net Realized and Unrealized Gain (Loss)		2.25			(5.17	)		(1.92	)		5.77			2.82			(5.33	)
Distributions of Net Realized Gains by other investment companies		0.00	(4)		—			—			—			—			—
Net Increase (Decrease) in Net Assets Resulting from Investment Operations(5)		2.40			(4.76	)		(1.53	)		6.18			3.21			(5.01	)
Distributions from Net Investment Income		(0.51	)		(0.34	)		(0.47	)		(0.49	)		(0.30	)		(0.08	)
Distributions from Realized Capital Gains		—			—			—			—			—			(0.02	)
Total Distributions		(0.51	)		(0.34	)		(0.47	)		(0.49	)		(0.30	)		(0.10	)
Net Asset Value, End of Year/Period	$	24.45		$	22.56		$	27.66		$	29.66		$	23.97		$	21.06
Market Value, End of Year/Period	$	24.45		$	22.56		$	27.65		$	29.58		$	23.95		$	21.11
Total Return
Total Investment Return Based on Net Asset Value(6)		10.66	%		(17.32	)%		(5.06	)%		25.91	%		15.24	%		(19.11	)%
Total Investment Return Based on Market(6)		10.64	%		(17.25	)%		(4.82	)%		25.64	%		14.86	%		(18.95	)%
Ratios/Supplemental Data
Net Assets, End of Year/Period (000’s omitted)	$	14,670		$	14,662		$	19,365		$	19,279		$	14,978		$	14,219
Ratio to Average Net Assets of:
Expenses, net of expense waivers and reimbursements(7)		1.25	%		1.25	%		1.25	%		1.25	%		1.25	%		1.25	%
Expenses, prior to expense waivers and reimbursements(7)		1.75	%		1.62	%		1.69	%		1.55	%		1.65	%		1.54	%
Net Investment Income (Loss)(7)		1.24	%		1.69	%		1.41	%		1.48	%		1.65	%		1.48	%
Portfolio Turnover Rate(10)		130	%		196	%		85	%		182	%		93	%		110	%

See accompanying Notes to Financial Statements.

112

ADVISORSHARES TRUST
Financial Highlights

AdvisorShares Market Adaptive Unconstrained Income ETF									AdvisorShares Meidell Tactical Advantage ETF
Six months ended December 31, 2016 (Unaudited)			Year ended June 30, 2016			For the period July 8, 2014* to June 30, 2015			Six months ended December 31, 2016 (Unaudited)			Year ended June 30, 2016			Year ended June 30, 2015			Year ended June 30, 2014			Year ended June 30, 2013			Year ended June 30, 2012
$	23.37		$	23.92		$	25.00		$	26.63		$	30.86		$	30.00		$	28.33		$	25.12		$	25.06
	0.34			0.29			(0.01	)		0.02			(0.07	)		0.17			0.14			0.14			0.00	(4)
	(0.02	)		(0.62	)		(0.62	)		2.64			(4.07	)		0.87			1.53			3.30			0.08
	—			0.08			—			—			0.01			—			—			—			—
	0.32			(0.25	)		(0.63	)		2.66			(4.13	)		1.04			1.67			3.44			0.08
	—			(0.30	)		(0.45	)		—			(0.10	)		(0.18	)		—			(0.23	)		(0.02	)
	—			—			—			—			—			—			—			—			—
	—			(0.30	)		(0.45	)		—			(0.10	)		(0.18	)		—			(0.23	)		(0.02	)
$	23.69		$	23.37		$	23.92		$	29.29		$	26.63		$	30.86		$	30.00		$	28.33		$	25.12
$	23.70		$	23.37		$	23.90		$	29.29		$	26.56		$	30.87		$	30.00		$	28.37		$	25.48
	1.36	%		(1.04	)%		(2.58	)%		9.99	%		(13.40	)%		3.47	%		5.89	%		13.81	%		0.31	%
	1.41	%		(0.96	)%		(2.61	)%		10.28	%		(13.63	)%		3.52	%		5.75	%		12.33	%		1.71	%
$	1,184		$	1,169		$	1,794		$	14,643		$	18,639		$	16,972		$	15,750		$	9,209		$	5,652
	0.99	%		1.35	%(11)		1.75	%		1.35	%		1.35	%		1.35	%		1.35	%		1.35	%		1.35	%
	10.14	%		7.97	%(11)		6.20	%		2.04	%		1.88	%		1.99	%		2.12	%		2.99	%		3.69	%
	2.81	%		1.22	%		(0.02	)%		0.17	%		(0.26	)%		0.57	%		0.49	%		0.51	%		0.01	%
	1,371	%		1,303	%(12)		203	%		496	%		1,428	%		434	%		687	%		605	%		817	%

See accompanying Notes to Financial Statements.

113

ADVISORSHARES TRUST
Financial Highlights

	AdvisorShares Morgan Creek Global Tactical ETF
	Six months ended December 31, 2016 (Unaudited)			Year ended June 30, 2016			Year ended June 30, 2015			Year ended June 30, 2014			Year ended June 30, 2013			Year ended June 30, 2012
Selected Data for a Share of Capital Stock Outstanding
Net Asset Value, Beginning of Year/Period	$	23.39		$	24.62		$	26.19		$	27.38		$	23.69		$	25.92
Investment Operations
Net Investment Income (Loss)(3)		(0.02	)		(0.08	)		0.06			0.30			0.38			0.21
Net Realized and Unrealized Gain (Loss)		(0.44	)		(1.18	)		(1.06	)		2.11			0.27			(2.24	)
Distributions of Net Realized Gains by other investment companies		0.02			0.36			0.07			—			0.00	(4)		—
Net Increase (Decrease) in Net Assets Resulting from Investment Operations(5)		(0.44	)		(0.90	)		(0.93	)		2.41			0.65			(2.03	)
Distributions from Net Investment Income		—			(0.33	)		(0.64	)		—			(0.56	)		—
Distributions from Realized Capital Gains		—			—			—			—			—			(0.20	)
Total Distributions		—			(0.33	)		(0.64	)		—			(0.56	)		(0.20	)
Net Asset Value, End of Year/Period	$	22.95		$	23.39		$	24.62		$	26.19		$	23.78		$	23.69
Market Value, End of Year/Period	$	22.95		$	23.39		$	24.60		$	26.16		$	23.79		$	23.64
Total Return
Total Investment Return Based on Net Asset Value(6)		(1.88	)%		(3.60	)%		(3.59	)%		10.13	%		2.68	%		(7.84	)%
Total Investment Return Based on Market(6)		(1.88	)%		(3.51	)%		(3.52	)%		9.96	%		2.92	%		(8.07	)%
Ratios/Supplemental Data
Net Assets, End of Year/Period (000’s omitted)	$	7,459		$	7,602		$	12,309		$	36,667		$	49,942		$	78,171
Ratio to Average Net Assets of:
Expenses, net of expense waivers and reimbursements(7)		1.25	%		1.25	%		1.25	%		1.25	%		1.15	%		0.99	%
Expenses, prior to expense waivers and reimbursements(7)		2.54	%		2.26	%		2.23	%		1.24	%		1.15	%		1.08	%
Net Investment Income (Loss)(7)		(0.19	)%		(0.33	)%		0.23	%		1.19	%		1.54	%		0.87	%
Portfolio Turnover Rate(10)		8	%		81	%		244	%		232	%		236	%		475	%

See accompanying Notes to Financial Statements.

114

ADVISORSHARES TRUST
Financial Highlights

AdvisorShares Newfleet Multi-Sector Income ETF															AdvisorShares Pacific Asset Enhanced Floating Rate ETF
Six months ended December 31, 2016 (Unaudited)			Year ended June 30, 2016			Year ended June 30, 2015			Year ended June 30, 2014			For the period March 19, 2013* to June 30, 2013			Six months ended December 31, 2016 (Unaudited)			Year ended June 30, 2016			For the period February 18, 2015* to June 30, 2015
$	48.83		$	49.08		$	49.94		$	49.04		$	50.00		$	48.73		$	49.66		$	50.00
	0.46			1.25			1.28			1.26			0.28			0.88			1.74			0.62
	(0.05	)		(0.13	)		(0.77	)		0.99			(0.99	)		1.28			(0.95	)		(0.38	)
	—			—			—			—			—			—			—			—
	0.41			1.12			0.51			2.25			(0.71	)		2.16			0.79			0.24
	(0.67	)		(1.37	)		(1.37	)		(1.35	)		(0.25	)		(0.91	)		(1.72	)		(0.58	)
	—			—			—			—			—			—			—			—
	(0.67	)		(1.37	)		(1.37	)		(1.35	)		(0.25	)		(0.91	)		(1.72	)		(0.58	)
$	48.57		$	48.83		$	49.08		$	49.94		$	49.04		$	49.98		$	48.73		$	49.66
$	48.55		$	48.82		$	49.04		$	49.94		$	49.01		$	50.97		$	48.26		$	49.78
	0.83	%		2.33	%		1.04	%		4.65	%		(1.42	)%		4.45	%		1.69	%		0.47	%
	0.82	%		2.39	%		0.95	%		4.70	%		(1.48	)%		7.56	%		0.46	%		0.71	%
$	259,847		$	261,263		$	215,941		$	154,811		$	83,362		$	27,487		$	26,800		$	27,312
	0.75	%		0.75	%		0.75	%		0.75	%		0.75	%		1.10	%		1.10	%		1.10	%
	0.81	%		0.81	%		0.82	%		0.83	%		1.13	%		1.40	%		1.51	%		1.41	%
	1.88	%		2.57	%		2.60	%		2.55	%		1.98	%		3.54	%		3.58	%		3.46	%
	24	%		51	%		49	%		85	%		105	%		30	%		27	%		102	%

See accompanying Notes to Financial Statements.

115

ADVISORSHARES TRUST
Financial Highlights

	AdvisorShares Peritus High Yield ETF
	Six months ended December 31, 2016 (Unaudited)			Year ended June 30, 2016			Year ended June 30, 2015			Year ended June 30, 2014			Year ended June 30, 2013			Year ended June 30, 2012
Selected Data for a Share of Capital Stock Outstanding
Net Asset Value, Beginning of Year/Period	$	33.88		$	40.65		$	53.27		$	50.43		$	48.59		$	51.59
Investment Operations
Net Investment Income (Loss)(3)		1.42			3.11			3.59			4.14			4.28			4.20
Net Realized and Unrealized Gain (Loss)		2.22			(6.93	)		(12.33	)		2.69			1.66			(2.74	)
Distributions of Net Realized Gains by other investment companies		0.00	(4)		—			—			—			—			0.00	(4)
Net Increase (Decrease) in Net Assets Resulting from Investment Operations(5)		3.64			(3.82	)		(8.74	)		6.83			5.94			1.46
Distributions from Net Investment Income		(1.33	)		(2.95	)		(3.88	)		(3.95	)		(4.09	)		(3.99	)
Distributions from Realized Capital Gains		—			—			—			(0.04	)		(0.01	)		(0.47	)
Total Distributions		(1.33	)		(2.95	)		(3.88	)		(3.99	)		(4.10	)		(4.46	)
Net Asset Value, End of Year/Period	$	36.19		$	33.88		$	40.65		$	53.27		$	50.43		$	48.59
Market Value, End of Year/Period	$	35.61		$	33.84		$	40.58		$	53.27		$	49.91		$	48.64
Total Return
Total Investment Return Based on Net Asset Value(6)		10.89	%		(9.34	)%		(16.82	)%		14.04	%		12.58	%		3.27	%
Total Investment Return Based on Market(6)		9.29	%		(9.20	)%		(16.88	)%		15.20	%		11.29	%		2.75	%
Ratios/Supplemental Data
Net Assets, End of Year/Period (000’s omitted)	$	199,049		$	201,601		$	375,991		$	1,075,997		$	259,729		$	92,328
Ratio to Average Net Assets of:
Expenses, net of expense waivers and reimbursements(7)		1.26	%		1.22	%		1.23	%		1.18	%		1.25	%		1.35	%
Expenses, prior to expense waivers and reimbursements(7)		1.26	%		1.28	%		1.23	%		1.18	%		1.23	%		1.35	%
Net Investment Income (Loss)(7)		7.98	%		8.77	%		7.65	%		7.95	%		8.44	%		8.64	%
Portfolio Turnover Rate(10)		61	%		79	%		88	%		87	%		37	%		80	%

See accompanying Notes to Financial Statements.

116

ADVISORSHARES TRUST
Financial Highlights

AdvisorShares QAM Equity Hedge ETF															AdvisorShares Ranger Equity Bear ETF
Six months ended December 31, 2016 (Unaudited)			Year ended June 30, 2016			Year ended June 30, 2015			Year ended June 30, 2014			For the period August 7, 2012* to June 30, 2013			Six months ended December 31, 2016 (Unaudited)			Year ended June 30, 2016			Year ended June 30, 2015			Year ended June 30, 2014			Year ended June 30, 2013			Year ended June 30, 2012
$	26.70		$	28.68		$	28.48		$	26.21		$	25.00		$	10.60		$	10.88		$	11.78		$	16.17		$	23.33		$	22.65
	0.01			(0.16	)		(0.13	)		(0.20	)		(0.12	)		(0.12	)		(0.27	)		(0.31	)		(0.38	)		(0.60	)		(0.72	)
	0.96			(1.51	)		0.54			2.95			1.51			(1.22	)		(0.01	)		(0.59	)		(4.01	)		(6.56	)		1.40
	0.00	(4)		0.02			0.01			—			—			—			—			—			—			—			—
	0.97			(1.65	)		0.42			2.75			1.39			(1.34	)		(0.28	)		(0.90	)		(4.39	)		(7.16	)		0.68
	—			—			—			—			(0.08	)		—			—			—			—			—			—
	—			(0.33	)		(0.22	)		(0.48	)		(0.10	)		—			—			—			—			—			—
	—			(0.33	)		(0.22	)		(0.48	)		(0.18	)		—			—			—			—			—			—
$	27.67		$	26.70		$	28.68		$	28.48		$	26.21		$	9.26		$	10.60		$	10.88		$	11.78		$	16.17		$	23.33
	27.65		$	26.71		$	28.68		$	28.45		$	26.16		$	9.25		$	10.61		$	10.88		$	11.79		$	16.16		$	23.34
	3.61	%		(5.76	)%		1.48	%		10.52	%		5.57	%		(12.64	)%		(2.53	)%		(7.64	)%		(27.15	)%		(30.69	)%		3.00	%
	3.52	%		(5.72	)%		1.60	%		10.62	%		5.36	%		(12.82	)%		(2.48	)%		(7.72	)%		(27.04	)%		(30.76	)%		3.05	%
$	5,533		$	5,340		$	7,171		$	8,543		$	3,932		$	165,604		$	213,948		$	128,059		$	161,952		$	218,357		$	313,223
	1.55	%(8)		1.68	%(8)		1.65	%(8)		1.70	%(8)		1.56	%(8)		2.88	%(9)		2.68	%(9)		2.80	%(9)		2.87	%(9)		3.12	%(9)		3.07	%(9)
	3.39	%(8)		3.15	%(8)		2.83	%(8)		2.66	%(8)		4.61	%(8)		2.88	%(9)		2.68	%(9)		2.80	%(9)		2.87	%(9)		3.12	%(9)		3.06	%(9)
	0.06	%		(0.59	)%		(0.46	)%		(0.71	)%		(0.50	)%		(2.46	)%		(2.49	)%		(2.72	)%		(2.81	)%		(3.11	)%		(3.06	)%
	56	%		132	%		131	%		179	%		114	%		96	%		402	%		419	%		484	%		697	%		756	%

See accompanying Notes to Financial Statements.

117

ADVISORSHARES TRUST
Financial Highlights

	AdvisorShares Sage Core Reserves ETF
	Six months ended December 31, 2016 (Unaudited)			Year ended June 30, 2016			Year ended June 30, 2015			For the period January 14, 2014* to June 30, 2014
Selected Data for a Share of Capital Stock Outstanding
Net Asset Value, Beginning of Year/Period	$	99.43		$	99.38		$	99.78		$	100.00
Investment Operations
Net Investment Income (Loss)(3)		0.45			0.69			0.12			0.36
Net Realized and Unrealized Gain (Loss)		(0.02	)		0.12			(0.12	)		(0.25	)
Distributions of Net Realized Gains by other investment companies		—			—			—			—
Net Increase (Decrease) in Net Assets Resulting from Investment Operations(5)		0.43			0.81			—			0.11
Distributions from Net Investment Income		(0.53	)		(0.76	)		(0.40	)		(0.33	)
Distributions from Realized Capital Gains		—			—			—			—
Total Distributions		(0.53	)		(0.76	)		(0.40	)		(0.33	)
Net Asset Value, End of Year/Period	$	99.33		$	99.43		$	99.38		$	99.78
Market Value, End of Year/Period	$	99.35		$	99.63		$	99.40		$	99.80
Total Return
Total Investment Return Based on Net Asset Value(6)		0.41	%		0.83	%		0.00	%(4)		0.11	%
Total Investment Return Based on Market(6)		0.23	%		1.00	%		0.00	%(4)		0.13	%
Ratios/Supplemental Data
Net Assets, End of Year/Period (000’s omitted)	$	86,911		$	111,862		$	34,783		$	37,419
Ratio to Average Net Assets of:
Expenses, net of expense waivers and reimbursements(7)		0.35	%		0.35	%		0.35	%		0.35	%
Expenses, prior to expense waivers and reimbursements(7)		0.50	%		0.55	%		0.73	%		0.73	%
Net Investment Income (Loss)(7)		0.89	%		0.70	%		0.12	%		0.78	%
Portfolio Turnover Rate(10)		22	%		72	%		59	%		12	%

____________

*Commencement of operations.

(1)Formerly known as, AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF.

(2)Formerly known as, AdvisorShares TrimTabs Float Shrink ETF.

(3)Based on average shares outstanding.

(4)Amount represents less than $0.005 or 0.005%.

(5)The amount shown for a share distribution throughout the period may not correlate with the Statements of Operations for the period due to the timing of sales and repurchases of Fund Shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.

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

(7)Ratios of periods of less than one year have been annualized. Excludes expenses incurred by the underlying investments in other funds.

(8)The expense ratio includes interest and dividend expenses on short sales of 0.05%, 0.18%, 0.15%, 0.20%, and 0.06% for the periods ended December 31, 2016, June 30, 2016, June 30, 2015, June 30, 2014 and June 30, 2013 respectively.

(9)The expense ratio includes interest and dividend expenses on short sales of 1.25%, 1.05%, 1.15%, 1.22%, 1.51%, and 1.38% for the periods ended December 31, 2016, June 30, 2016, June 30, 2015, June 30, 2014, June 30, 2013 and June 30, 2012 respectively.

(10)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.

(11)Effective November 1, 2015, the Fund’s Expense Limitation Agreement changed from 1.75% to 0.99%.

(12)Effective November 1, 2015, the Fund underwent a sub-advisor and objective change. As a result, investment transactions were increased during the period, which caused a higher than normal portfolio turnover rate.

See accompanying Notes to Financial Statements.

118

ADVISORSHARES TRUST
Financial Highlights

AdvisorShares STAR Global Buy-Write ETF															AdvisorShares Wilshire Buyback ETF(2)
Six months ended December 31, 2016 (Unaudited)			Year ended June 30, 2016			Year ended June 30, 2015			Year ended June 30, 2014			For the period September 17, 2012* to June 30, 2013			Six months ended December 31, 2016 (Unaudited)			Year ended June 30, 2016			Year ended June 30, 2015			Year ended June 30, 2014			Year ended June 30, 2013			For the period October 4, 2011* to June 30, 2012
$	26.77		$	26.60		$	26.18		$	23.61		$	25.00		$	55.56		$	57.05		$	51.22		$	41.05		$	33.16		$	26.20
	0.08			0.10			0.01			(0.10	)		(0.03	)		0.30			0.47			0.42			0.43			0.23			0.07
	0.87			0.07			0.41			2.67			(1.16	)		8.49			(1.54	)		5.75			9.89			7.99			6.90
	0.00	(4)		0.00	(4)		—			—			—			—			—			—			—			—			—
	0.95			0.17			0.42			2.57			(1.19	)		8.79			(1.07	)		6.17			10.32			8.22			6.97
	(0.22	)		—			—			—			(0.17	)		(0.73	)		(0.42	)		(0.34	)		(0.15	)		(0.21	)		(0.01	)
	—			—			—			—			(0.03	)		—			—			—			—			(0.12	)		—
	(0.22	)		—			—			—			(0.20	)		(0.73	)		(0.42	)		(0.34	)		(0.15	)		(0.33	)		(0.01	)
$	27.50		$	26.77		$	26.60		$	26.18		$	23.61		$	63.62		$	55.56		$	57.05		$	51.22		$	41.05		$	33.16
$	27.49		$	26.76		$	26.61		$	26.22		$	23.62		$	63.67		$	55.53		$	57.05		$	51.25		$	41.13		$	33.24
	3.57	%		0.64	%		1.60	%		10.89	%		(4.80	)%		15.80	%		(1.87	)%		12.06	%		25.18	%		25.01	%		26.62	%
	2.73	%		0.56	%		1.49	%		11.01	%		(4.76	)%		15.96	%		(1.91	)%		11.99	%		25.00	%		24.96	%		26.93	%
$	17,187		$	17,400		$	26,597		$	27,490		$	22,428		$	144,739		$	155,570		$	242,472		$	137,015		$	25,657		$	8,291
	1.85	%		1.85	%		1.85	%		1.85	%		1.85	%		0.90	%		0.99	%		0.99	%		0.99	%		0.99	%		0.99	%
	2.16	%		1.97	%		1.87	%		1.79	%		2.35	%		1.10	%		1.21	%		1.11	%		1.16	%		1.90	%		2.34	%
	0.59	%		0.38	%		0.03	%		(0.42	)%		(0.14	)%		0.99	%		0.86	%		0.76	%		0.90	%		0.62	%		0.31	%
	15	%		58	%		45	%		166	%		40	%		84	%		196	%		52	%		7	%		57	%		201	%

See accompanying Notes to Financial Statements.

119

ADVISORSHARES TRUST
Notes to Financial Statements

December 31, 2016 (unaudited)

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 Funds are investment companies and accordingly follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification Topic 946 “Financial Services — Investment Companies”. 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 22 active funds (the “Funds” or “ETFs” and individually, the “Fund” or “ETF”):

Fund	Ticker	Commencement of Operations
AdvisorShares Athena High Dividend ETF	DIVI	July 29, 2014
AdvisorShares Cornerstone Small Cap ETF	SCAP	July 6, 2016
AdvisorShares Dorsey Wright ADR ETF(1)	AADR	July 21, 2010
AdvisorShares Focused Equity ETF	CWS	September 20, 2016
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 KIM Korea Equity ETF	KOR	September 28, 2016
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 Market Adaptive Unconstrained Income ETF	MAUI	July 8, 2014
AdvisorShares Meidell Tactical Advantage ETF	MATH	June 23, 2011
AdvisorShares Morgan Creek Global Tactical ETF	GTAA	October 26, 2010
AdvisorShares Newfleet Multi-Sector Income ETF	MINC	March 19, 2013
AdvisorShares Pacific Asset Enhanced Floating Rate ETF	FLRT	February 18, 2015
AdvisorShares Peritus High Yield ETF	HYLD	December 1, 2010
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 Wilshire Buyback ETF(2)	TTFS	October 4, 2011

____________

(1)Formerly known as, AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF. Effective September 1, 2016.

(2)Formerly known as, AdvisorShares TrimTabs Float Shrink ETF. Effective July 1, 2016.

AdvisorShares Athena High Dividend ETF (‘‘Athena High Dividend ETF’’) seeks long-term capital appreciation. The Portfolio Manager uses a behavioral finance approach to identifying securities for DIVI’s portfolio. Stocks are screened and selected using the Portfolio Manager’s patented research.

AdvisorShares Cornerstone Small Cap ETF (“Cornerstone Small Cap ETF”) seeks to provide total return through long-term capital appreciation and current income. The Portfolio Manager invests in a diversified group of U.S.-traded equity securities, including common and preferred stock, ADRs, and publicly-traded REITs.

120

ADVISORSHARES TRUST
Notes to Financial Statements (Continued)

December 31, 2016 (unaudited)

1. Organization – (continued)

AdvisorShares Dorsey Wright ADR ETF (“Dorsey Wright ADR ETF”) seeks to achieve the Fund’s investment objective by selecting primarily a portfolio of U.S.-traded securities of non-U.S. organizations, most often American Depositary Receipts (“ADRs”). The Fund invests in developed and emerging markets and may invest in securities of any market capitalization.

AdvisorShares Focused Equity ETF (“Focused Equity ETF”) seeks long-term capital appreciation. CWS invests primarily in a focused group of U.S. exchange-listed equity securities that the portfolio manager believes have favorable fundamental attributes.

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 KIM Korea Equity ETF (“KIM Korea Equity ETF”) seeks to provide long-term capital appreciation above the capital appreciation of its primary benchmark, the MSCI Korea Index, and other Korea-focused indexes. The Fund seeks to achieve its investment objective by investing primarily in growth-oriented stocks of any capitalization range listed on the Korea Exchange. The fund engages in sector allocation based on analysis of the macro economy and its effect on corporate competitiveness and industry cycles and strives to invest with large economic cycles as compared to short-term market trends and short-term supply and demand.

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

AdvisorShares Madrona Global Bond ETF (‘‘Madrona Global Bond ETF’’) seeks investment results that exceed the price and yield performance of its benchmark, the Barclays Capital Aggregate Bond Index. 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.

121

ADVISORSHARES TRUST
Notes to Financial Statements (Continued)

December 31, 2016 (unaudited)

1. Organization – (continued)

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. Its portfolio may also include ADRs that provide exposure to certain markets deemed to be emerging markets.

AdvisorShares Market Adaptive Unconstrained Income ETF (‘‘Market Adaptive Unconstrained Income ETF’’) seeks to provide long-term total return and income with a secondary emphasis on capital preservation. MAUI is a non-traditional bond strategy and is designed to be different from most fixed income funds. It tactically allocates to various global regions, income categories, credit qualities, and durations, and when the environment calls for it, will get defensive and move to ultra-short-term fixed income.

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 Morgan Creek Global Tactical ETF (‘‘Morgan Creek Global Tactical ETF’’) seeks to preserve and grow capital from investments in the U.S. and foreign equity, fixed income, commodity and currency markets, independent of market direction. The Portfolio Manager seeks to achieve GTAA’s objective by utilizing a combination a qualitative and quantitative approaches with established risk management controls to actively manage the portfolio in an attempt to control the downside losses and protect capital.

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 Pacific Asset Enhanced Floating Rate ETF (‘‘Pacific Asset Enhanced Floating Rate ETF’’) seeks to provide a high level of current income. The fund seeks to achieve its investment objective by selecting a focused portfolio comprised primarily of income producing floating rate loans and floating rate debt securities.

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.

122

ADVISORSHARES TRUST
Notes to Financial Statements (Continued)

December 31, 2016 (unaudited)

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 Wilshire Buyback ETF (‘‘Wilshire Buyback ETF’’) seeks to achieve its investment objective by primarily investing in the broad U.S. equity market. The Fund invests in stocks with liquidity and fundamental characteristics that are historically associated with superior long-term performance. Based on extensive historical research, Wilshire Associates Incorporated designed a quantitative stock selection process to make allocation decisions in the Fund’s portfolio.

Some of the Funds are considered “fund of funds” and seek to achieve their investment objectives by investing primarily in other affiliated and unaffiliated exchange-traded funds (“ETFs”), as well as

123

ADVISORSHARES TRUST
Notes to Financial Statements (Continued)

December 31, 2016 (unaudited)

1. Organization – (continued)

other exchange-traded products, including, but not limited to, exchange-traded notes (“ETNs”) and closed-end funds (collectively with ETFs and ETNs, “ETPs”), that offer diversified exposure to various global regions, credit qualities, durations and maturity dates.

For the period ended December 31, 2016, the Funds held significant positions (greater than 25% of net assets), except those invested in short term money market instruments, in other funds as follows:

Funds	Security Name	Market Value as of December 31, 2016		% of Fund Net Assets as of December 31, 2016		Reference location
Gartman Gold/Euro ETF	AdvisorShares Sage Core Reserves ETF	$	4,967,500	28.5	%	Contained within this report.
Gartman Gold/Yen ETF	AdvisorShares Sage Core Reserves ETF		4,967,500	29.3		Contained within this report.
Market Adaptive Unconstrained Income ETF	SPDR Bloomberg Barclays High Yield Bond ETF		355,716	30.0		https://us.spdrs.com
	iShares 20+ Year Treasury Bond ETF		319,864	27.0		https://www.ishares.com/us
Meidell Tactical Advantage ETF	iShares Core S&P Small-Cap ETF		4,403,940	30.1		https://www.ishares.com/us
Ranger Equity Bear ETF	AdvisorShares Sage Core Reserves ETF		67,061,250	40.5		Contained within this report.
STAR Global Buy-Write ETF	SPDR S&P 500 ETF Trust		11,026,511	64.2		https://us.spdrs.com

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/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 December 31, 2016		% of ETF’s Total Net Assets at December 31, 2016
Gartman Gold/Euro ETF	February 11, 2014	$	2,863,162	16.4	%
Gartman Gold/Yen ETF	February 11, 2014	$	2,813,808	16.6	%

124

ADVISORSHARES TRUST
Notes to Financial Statements (Continued)

December 31, 2016 (unaudited)

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.

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.

Distributions received from investments in Real Estate Investment Trusts (“REITs”) are recorded as dividend income on ex-dividend date, subject to reclassification upon notice of the character of such distributions by the issuer. The portion of dividend attributable to the return of capital is recorded against the cost basis of the security,

Foreign Taxes

The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, capital gains on investments, certain foreign currency transactions or other corporate events. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Funds invest. These foreign taxes, if any, are paid by the Funds and are reflected in their Statements of Operations.

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.

125

ADVISORSHARES TRUST
Notes to Financial Statements (Continued)

December 31, 2016 (unaudited)

3. Summary of Significant Accounting Policies – (continued)

Swap Agreements

Certain funds 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.

Repurchase Agreements

The Funds may enter into repurchase agreements provided that the value of the underlying collateral, including accrued interest, will equal or exceed the value of the repurchase agreement during the term of the agreement. The underlying collateral for all repurchase agreements is held in safekeeping by the Fund’s custodian or at the Federal Reserve Bank. If the seller defaults and the value of the collateral declines, or if bankruptcy proceedings commence with respect to the seller of the security, realization of the collateral by the Fund may be delayed or limited.

At December 31, 2016 the market values of repurchase agreements outstanding are included as cash collateral for securities on loan on the Statements of Assets and Liabilities.

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

126

ADVISORSHARES TRUST
Notes to Financial Statements (Continued)

December 31, 2016 (unaudited)

3. Summary of Significant Accounting Policies – (continued)

greater than, respectively, the proceeds originally received. The Funds are also subject to the risk that it may be unable to reacquire a security to terminate a short position except at a price substantially in excess of the last quoted price.

The Funds are required to pledge cash or securities to the broker as collateral for the securities sold short. Collateral requirements are calculated daily based on the current market value of the short positions. Cash deposited with broker for collateral for securities sold short is recorded as an asset on the Statements 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 QAM Equity Hedge ETF and Ranger Equity Bear ETF for the period ended December 31, 2016 are $1,319 and $667,786, respectively, which are included as Interest on Securities Sold, Not Yet Purchased in the Statements 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.

127

ADVISORSHARES TRUST
Notes to Financial Statements (Continued)

December 31, 2016 (unaudited)

3. Summary of Significant Accounting Policies – (continued)

Options

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

Short-Term Investments

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

Securities Lending

The Funds participate in a securities lending program offered by The Bank of New York Mellon (‘‘BNYM’’) (the ‘‘Program’’), providing for the lending of securities to qualified brokers. Securities lending income includes earnings of such temporary cash investments, plus or minus any rebate to a borrower. These earnings (after any rebate) are then divided between BNYM, as a fee for its services under the Program, and the Funds, according to agreed-upon rates. Collateral on all securities loaned is accepted in cash and is maintained at a minimum level of 102% (105% in the case of certain foreign securities) of the market value, plus interest, if applicable, of investments on loan. It is the Fund’s policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to the Funds if and to the extent that the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. Under the terms of the Program, the Funds are indemnified for such losses by BNYM. Cash collateral is held in a separate account managed by BNYM, who is authorized to exclusively enter into overnight repurchase agreements. BNYM bears the risk of any deficiency in the amount of the cash collateral available for return to the borrower due to any loss on the collateral invested.

The repurchase agreement income related to the Program earned by the Funds is disclosed on the Statements of Operations.

128

ADVISORSHARES TRUST
Notes to Financial Statements (Continued)

December 31, 2016 (unaudited)

3. Summary of Significant Accounting Policies – (continued)

The value of loaned securities and related collateral outstanding at December 31, 2016 are shown in the Schedules of Investments and Statements of Assets and Liabilities.

	Gross Amounts of			Gross Amounts Offset in the Statements		Net Amounts Presented in the Statements			Gross Amounts not offset in the Statements of Assets and Liabilities
Fund and Description	Recognized Assets (Liabilities)			of Assets and (Liabilities)		of Assets and (Liabilities)			Financial Instruments			Collateral Pledged/ Received		Net Amount
Athena High Dividend ETF
Securities Lending	$	(1,116,216	)	$	—	$	(1,116,216	)	$	1,116,216	(1)	$	—	$	—
Repurchase Agreements		1,116,216			—		1,116,216			1,116,216	(2)		—		—
Cornerstone Small Cap ETF
Securities Lending		(193,498	)		—		(193,498	)		193,498	(1)		—		—
Repurchase Agreements		193,498			—		193,498			193,498	(2)		—		—
Dorsey Wright ADR ETF
Securities Lending		(2,441,310	)		—		(2,441,310	)		2,441,310	(1)		—		—
Repurchase Agreements		2,441,310			—		2,441,310			2,441,310	(2)		—		—
Global Echo ETF
Securities Lending		(85,255	)		—		(85,255	)		85,255	(1)		—		—
Repurchase Agreements		85,255			—		85,255			85,255	(2)		—		—
Madrona Domestic ETF
Securities Lending		(249,264	)		—		(249,264	)		249,264	(1)		—		—
Repurchase Agreements		249,264			—		249,264			249,264	(2)		—		—
Madrona Global Bond ETF
Securities Lending		(2,248,769	)		—		(2,248,769	)		2,248,769	(1)		—		—
Repurchase Agreements		2,248,769			—		2,248,769			2,248,769	(2)		—		—
Madrona International ETF
Securities Lending		(3,026,925	)		—		(3,026,925	)		3,026,925	(1)		—		—
Repurchase Agreements		3,026,925			—		3,026,925			3,026,925	(2)		—		—
Meidell Tactical Advantage ETF
Securities Lending		(1,917,256	)		—		(1,917,256	)		1,917,256	(1)		—		—
Repurchase Agreements		1,917,256			—		1,917,256			1,917,256	(2)		—		—
Morgan Creek Global Tactical ETF
Securities Lending		(545,537	)		—		(545,537	)		545,537	(1)		—		—
Repurchase Agreements		545,537			—		545,537			545,537	(2)		—		—
Newfleet Multi-Sector Income ETF
Securities Lending		(2,100,337	)		—		(2,100,337	)		2,100,337	(1)		—		—
Repurchase Agreements		2,100,337			—		2,100,337			2,100,337	(2)		—		—
Pacific Asset Enhanced Floating Rate ETF
Swaps		143,918			—		143,918			—			—		143,918
Securities Lending		(127,264	)		—		(127,264	)		127,264	(1)		—		—
Repurchase Agreements		127,264			—		127,264			127,264	(2)		—		—
Peritus High Yield ETF
Securities Lending		(18,165,461	)		—		(18,165,461	)		18,165,461	(1)		—		—
Repurchase Agreements		18,165,461			—		18,165,461			18,165,461	(2)		—		—
Sage Core Reserves ETF
Securities Lending		(30,907	)		—		(30,907	)		30,907	(1)		—		—
Repurchase Agreements		30,907			—		309,007			30,907	(2)		—		—
Wilshire Buyback ETF
Securities Lending		(2,551,576	)		—		(2,551,576	)		2,551,576	(1)		—		—
Repurchase Agreements		2,551,576			—		2,551,576			2,551,576	(2)		—		—

____________

(1)Collateral for securities on loan is included in the Schedules of Investments and consists of Repurchase Agreements.

(2)Repurchase agreements are collateralized by U.S. Government Agency Obligations in the event the other party to the repurchase agreement defaults on its obligation.

129

ADVISORSHARES TRUST
Notes to Financial Statements (Continued)

December 31, 2016 (unaudited)

3. Summary of Significant Accounting Policies – (continued)

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.

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’’) pursuant to which the Advisor acts as the Fund’s investment adviser. Pursuant to the 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 which is calculated daily and paid monthly based on average daily net assets. 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:
Athena High Dividend ETF	0.80	%
Cornerstone Small Cap ETF	0.65	%
Dorsey Wright ADR ETF	0.75	%
Focused Equity ETF	0.75	%
Gartman Gold/Euro ETF	0.55	%
Gartman Gold/Yen ETF	0.55	%
Global Echo ETF	1.10	%
KIM Korea Equity ETF	0.84	%
Madrona Domestic ETF	0.80	%
Madrona Global Bond ETF	0.50	%
Madrona International ETF	0.80	%
Market Adaptive Unconstrained Income ETF	0.90	%
Meidell Tactical Advantage ETF	1.20	%
Morgan Creek 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	%
Newfleet Multi-Sector Income ETF	0.65	%
Pacific Asset Enhanced Floating Rate ETF	0.95	%
Peritus High Yield ETF	1.10	%
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	%
Wilshire Buyback ETF	0.90	%*

____________

*Prior to July 1, 2016, the annual management fee was 0.99%.

130

ADVISORSHARES TRUST
Notes to Financial Statements (Continued)

December 31, 2016 (unaudited)

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

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 between each 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 amount for each Fund’s average daily net assets (with the exception of Global Echo ETF). The expense limitation agreement will be terminated upon termination of the investment advisory agreement between the Advisor and the Fund. The investment advisory agreement may only be terminated with the approval of the Fund’s Board. The expense caps in effect for each Fund during the period ended December 31, 2016 were as follows:

Fund:	Rate:
Athena High Dividend ETF	0.99	%
Cornerstone Small Cap ETF	0.90	%
Dorsey Wright ADR ETF	1.25	%
Focused Equity ETF	0.75	%
Gartman Gold/Euro ETF	0.65	%
Gartman Gold/Yen ETF	0.65	%
Global Echo ETF	—
KIM Korea Equity ETF	0.99	%
Madrona Domestic ETF	1.25	%
Madrona Global Bond ETF	0.95	%
Madrona International ETF	1.25	%
Market Adaptive Unconstrained Income ETF	0.99	%
Meidell Tactical Advantage ETF	1.35	%
Morgan Creek Global Tactical ETF	1.25	%
Newfleet Multi-Sector Income ETF	0.75	%
Pacific Asset Enhanced Floating Rate ETF	1.10	%
Peritus High Yield ETF	1.35	%
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	%
Wilshire Buyback ETF	0.90	%	*

____________

*Prior to July 1, 2016, the expense cap was 0.99%.

131

ADVISORSHARES TRUST
Notes to Financial Statements (Continued)

December 31, 2016 (unaudited)

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

For the period ended December 31, 2016, the Advisor waived fees and reimbursed expenses for each Fund as follows. Each Fund may recoup such waivers until the date indicated, or for a maximum of three years from reimbursement, whichever is sooner.

Fund:	Expenses Reimbursed:		Recoupment Balance:		Recoupment Expiration:	Year Incurred
Athena High Dividend ETF	$	83,036	$	79,776	6/30/2018	2015
		68,711		68,711	6/30/2019	2016
		48,895		48,895	6/30/2020	2017
Total		200,642		197,382
Cornerstone Small Cap ETF		43,281		43,281	6/30/2020	2017
Total		43,281		43,281
Dorsey Wright ADR ETF		40,767		40,767	6/30/2017	2014
		55,807		55,807	6/30/2018	2015
		58,928		58,928	6/30/2019	2016
		35,336		35,336	6/30/2020	2017
Total		190,838		190,838
Focused Equity ETF		31,066		31,066	6/30/2020	2017
Total		31,066		31,066
Gartman Gold/Euro ETF		49,169		49,169	6/30/2017	2014
		118,897		118,897	6/30/2018	2015
		111,217		111,217	6/30/2019	2016
		56,246		56,246	6/30/2020	2017
Total		335,529		335,529
Gartman Gold/Yen ETF		48,900		48,900	6/30/2017	2014
		122,306		122,306	6/30/2018	2015
		107,681		107,681	6/30/2019	2016
		57,127		57,127	6/30/2020	2017
Total		336,014		336,014
KIM Korea Equity ETF		22,015		22,015	6/30/2020	2017
Total		22,015		22,015
Madrona Domestic ETF		35,931		35,931	6/30/2017	2014
		35,654		35,654	6/30/2018	2015
		21,361		21,361	6/30/2019	2016
		18,365		18,365	6/30/2020	2017
Total		111,311		111,311

132

ADVISORSHARES TRUST
Notes to Financial Statements (Continued)

December 31, 2016 (unaudited)

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

Fund:	Expenses Reimbursed:		Recoupment Balance:		Recoupment Expiration:	Year Incurred
Madrona Global Bond ETF	$	27,899	$	27,899	6/30/2017	2014
		12,090		11,721	6/30/2018	2015
		23,218		23,218	6/30/2019	2016
		23,830		23,830	6/30/2020	2017
Total		87,037		86,668
Madrona International ETF		54,221		54,221	6/30/2017	2014
		79,853		79,853	6/30/2018	2015
		63,601		63,601	6/30/2019	2016
		38,700		38,700	6/30/2020	2017
Total		236,375		236,375
Market Adaptive Unconstrained Income ETF		97,168		92,537	6/30/2018	2015
		79,494		79,494	6/30/2019	2016
		54,849		54,849	6/30/2020	2017
Total		231,511		226,880
Meidell Tactical Advantage ETF		106,095		106,095	6/30/2017	2014
		103,519		103,519	6/30/2018	2015
		96,939		96,939	6/30/2019	2016
		56,324		56,324	6/30/2020	2017
Total		362,877		362,877
Morgan Creek Global Tactical ETF		4,358		—	6/30/2017	2014
		175,707		173,246	6/30/2018	2015
		91,350		91,350	6/30/2019	2016
		49,711		49,711	6/30/2020	2017
Total		321,126		314,307
Newfleet Multi-Sector Income ETF		88,416		88,416	6/30/2017	2014
		139,832		139,832	6/30/2018	2015
		132,621		132,621	6/30/2019	2016
		82,685		82,685	6/30/2020	2017
Total		443,554		443,554
Pacific Asset Enhanced Floating Rate ETF		30,047		30,047	6/30/2018	2015
		108,286		108,286	6/30/2019	2016
		41,414		41,414	6/30/2020	2017
Total		179,747		179,747

133

ADVISORSHARES TRUST
Notes to Financial Statements (Continued)

December 31, 2016 (unaudited)

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

Fund:	Expenses Reimbursed:		Recoupment Balance:		Recoupment Expiration:	Year Incurred
QAM Equity Hedge ETF	$	65,019	$	65,019	6/30/2017	2014
		88,514		88,514	6/30/2018	2015
		88,518		88,518	6/30/2019	2016
		50,914		50,914	6/30/2020	2017
Total		292,965		292,965
Sage Core Reserves ETF		58,758		58,758	6/30/2017	2014
		141,235		141,235	6/30/2018	2015
		90,545		90,545	6/30/2019	2016
		73,029		73,029	6/30/2020	2017
Total		363,567		363,567
STAR Global Buy-Write ETF		3,240		3,240	6/30/2017	2014
		13,786		13,786	6/30/2018	2015
		25,820		25,820	6/30/2019	2016
		27,091		27,091	6/30/2020	2017
Total		69,937		69,937
Wilshire Buyback ETF		159,385		159,385	6/30/2017	2014
		211,220		211,220	6/30/2018	2015
		454,474		454,474	6/30/2019	2016
		146,387		146,387	6/30/2020	2017
Total		971,466		971,466

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.

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.

134

ADVISORSHARES TRUST
Notes to Financial Statements (Continued)

December 31, 2016 (unaudited)

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 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

135

ADVISORSHARES TRUST
Notes to Financial Statements (Continued)

December 31, 2016 (unaudited)

6. Summary of Fair Value Disclosure – (continued)

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 December 31, 2016 in valuing the Funds’ assets and liabilities carried at fair value:

Assets	Athena High Dividend ETF		Cornerstone Small Cap ETF		Dorsey Wright ADR ETF		Focused Equity ETF		Gartman Gold/Euro ETF			Gartman Gold/Yen ETF			Global Echo ETF		KIM Korea Equity ETF
Level 1
Exchange Traded Funds	$	—	$	—	$	—	$	—	$	4,967,500		$	4,967,500		$	—	$	—
Common Stocks		8,029,178		2,533,900		17,872,327		7,734,149		—			—			3,009,896		7,091,991.00
Money Market Funds		2,102		20,002		225,376		538,835		4,828,070			4,385,124			246,502		—
Futures†		—		—		—		—		34,425			235,658					—
Level 2
Municipal Bonds		—		—		—		—		—			—			125,313		—
Asset Backed Securities		—		—		—		—		—			—			524,882		—
U.S. Government Agency Securities		—		—		—		—		—			—			630,795		—
Repurchase Agreements for Securities Loaned		1,116,216		193,498		2,441,310		—		—			—			85,255		—
Liabilities
Level 1
Futures†		—		—		—		—		(661,243	)		(630,362	)		—		—
Total	$	9,147,496	$	2,747,400	$	20,539,013	$	8,272,984	$	9,168,752		$	8,957,920		$	4,622,643	$	7,091,991

Assets	Madrona Domestic ETF		Madrona Global Bond ETF		Madrona International ETF		Market Adaptive Unconstrained Income ETF		Meidell Tactical Advantage ETF		Morgan Creek Global Tactical ETF		Newfleet Multi- Sector Income ETF
Level 1
Exchange Traded Funds	$	—	$	18,647,310	$	—	$	1,148,517	$	7,976,288	$	3,061,226	$	—
Closed End Fund		—		—		—		—		—		196,285		—
Common Stocks		24,987,980		—		14,421,141		—		—		—		—
Money Market Funds		640,094		151,571		272,263		116,539		469,434		4,234,392		17,865,582
Level 2
Mortgage Backed Securities		—		—		—		—		—		—		83,648,029
Asset Backed Securities		—		—		—		—		—		—		67,093,525
Corporate Bonds		—		—		—		—		—		—		48,818,202
Term Loans		—		—		—		—		—		—		24,273,865
Foreign Bonds		—		—		—		—		—		—		13,260,894
U.S. Government Agency Securities		—		—		—		—		—		—		3,791,222
U.S. Treasury Note		—		—		—		—		—		—		984,023
Repurchase Agreements for Securities Loaned		249,264		2,248,769		3,026,925		—		1,917,256		545,537		2,100,337
Level 3
Common Stocks		0		—		—		—		—		—		—
Total	$	25,877,338	$	21,047,650	$	17,720,329	$	1,265,056	$	10,362,978	$	8,037,440	$	261,835,679

136

ADVISORSHARES TRUST
Notes to Financial Statements (Continued)

December 31, 2016 (unaudited)

6. Summary of Fair Value Disclosure – (continued)

Assets	Pacific Asset Enhanced Floating Rate ETF		Peritus High Yield ETF		QAM Equity Hedge ETF			Ranger Equity Bear ETF			Sage Core Reserves ETF		STAR Global Buy-Write ETF			Wilshire Buyback ETF
Level 1
Exchange Traded Funds	$	—	$	—	$	4,484,931		$	67,061,250		$	—	$	16,243,487		$	—
Common Stocks		—		—		—			—			—		—			143,003,004
Purchased Options		—		—		—			—			—		97,867			—
Money Market Funds		1,922,642		7,490,038		1,051,941			16,135,281			3,953,976		977,526			1,668,456
Level 2
Corporate Bonds		2,239,047		133,844,704		—			—			41,759,461		—			—
Foreign Bonds		—		23,268,273		—			—			6,594,651		—			—
Municipal Bonds		—		—		—			—			438,460		—			—
U.S. Treasury Notes		—		—		—			—			3,483,737		—			—
U.S. Treasury Bill		—		—		—			—			99,882		—			—
Asset Backed Securities		—		—		—			—			19,618,533		—			—
Mortgage Backed Securities		—		—		—			—			11,747,407		—			—
Term Loans		23,052,675		36,501,787		—			—			—		—			2,551,576
Repurchase Agreements for Securities Loaned		127,264		18,165,461		—			—			30,907		—			—
Liabilities
Level 1
Exchange Traded Funds		—		—		(254,563	)		—			—		—			—
Common Stocks		—		—		—			(163,541,562	)		—		—			—
Written Options		—		—		—			—			—		(13,952	)		—
Level 2
Swaps Contracts†		143,918		—		—			—			—		—			—
Total	$	27,485,546	$	219,270,263	$	5,282,309		$	(80,345,031	)	$	87,727,014	$	17,304,928		$	147,223,036

____________

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

There were no recognized transfers between Level 1 and Level 2.

137

ADVISORSHARES TRUST
Notes to Financial Statements (Continued)

December 31, 2016 (unaudited)

A reconciliation of assets or liabilities in which Level 3 inputs are used in determining fair value is presented when there are significant (individually, greater than 1% of the net assets of a fund, or collectively, greater than 5% of the net assets of a fund) Level 3 assets or liabilities at the end of the period.

7. 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 December 31, 2016, the fair values of derivative instruments were as follows:

Statements of Assets and Liabilities:

Fund:	Asset Derivatives:	Equity Risk		Foreign Exchange Risk		Commodity Risk		Interest Rate Risk
Gartman Gold/Euro ETF	Unrealized Appreciation on Futures Contracts	$	—	$	34,425	$	—	$	—
Gartman Gold/Yen ETF	Unrealized Appreciation on Futures Contracts		—		235,658		—		—
Pacific Asset Enhanced Floating Rate ETF	Unrealized Appreciation on Swaps Contracts		—		—		—		143,918
STAR Global Buy-Write ETF	Options Purchased, at Value		97,867		—		—		—

Fund:	Liability Derivatives:	Equity Risk			Foreign Exchange Risk		Commodity Risk			Interest Rate Risk
Gartman Gold/Euro ETF	Unrealized Depreciation on Futures Contracts	$	—		$	—	$	(661,243	)	$	—
Gartman Gold/Yen ETF	Unrealized Depreciation on Futures Contracts		—			—		(630,362	)		—
STAR Global Buy-Write ETF	Options Written, at Value		(13,952	)		—		—			—

Transactions in derivative instruments during the period ended December 31, 2016, were as follows:

Statements of Operations:

Fund:	Realized Gain (Loss):	Equity Risk			Foreign Exchange Risk		Commodity Risk			Interest Rate Risk
Gartman Gold/Euro ETF	Futures	$	—		$	1,946,492	$	(2,051,098	)	$	—
Gartman Gold/Yen ETF	Futures		—			1,944,425		(994,719	)		—
Pacific Asset Enhanced Floating Rate ETF	Swaps		—			—		—			(11,457	)
STAR Global Buy-Write ETF	Options Written		(26,296	)		—		—			—

138

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Notes to Financial Statements (Continued)

December 31, 2016 (unaudited)

7. Derivative Instruments – (continued)

Fund:	Change in Unrealized Gain (Loss):	Equity Risk		Foreign Exchange Risk			Commodity Risk			Interest Rate Risk
Gartman Gold/Euro ETF	Futures	$	—	$	(483,100	)	$	(1,989,403	)	$	—
Gartman Gold/Yen ETF	Futures		—		949,474			(2,519,474	)		—
Pacific Asset Enhanced Floating Rate ETF	Swaps		—		—			—			161,054
STAR Global Buy-Write ETF	Investments – Options Purchased		26,519		—			—			—
STAR Global Buy-Write ETF	Options Written		1,334		—			—			—

For the period ended December 31, 2016, the volume of the derivatives opened by the Funds was as follows:

	Gartman Global/Euro ETF	Gartman Global/Yen ETF	STAR Global Buy-Write ETF
Purchased Options Contracts	—	—	643
Written Options Contracts	—	—	3,378
Short Futures Contracts	—	—	—
Long Futures Contracts	498	517	—

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 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 (2014 − 2016), as defined by IRS statute of limitations, for all major jurisdictions, including federal tax authorities and certain state tax authorities.

139

ADVISORSHARES TRUST
Notes to Financial Statements (Continued)

December 31, 2016 (unaudited)

8. Federal Income Tax – (continued)

As of December 31, 2016, the Funds did not have a liability for any unrecognized tax benefits. The Funds have no examination in progress and is not aware of any tax positions for which it is reasonably possible that the amounts of unrecognized tax benefits will significantly change in the next twelve months.

At December 31, 2016, 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)
Athena High Dividend ETF	$	8,669,370		$	752,451	$	(274,325	)	$	478,126		$	—
Cornerstone Small Cap ETF		2,353,340			425,931		(31,871	)		394,060			—
Dorsey Wright ADR ETF		19,849,190			1,389,771		(699,948	)		689,823			—
Focused Equity ETF		8,192,576			159,647		(79,239	)		80,408			—
Gartman Gold/Euro ETF		9,802,070			—		(6,500	)		(6,500	)		(626,818	)
Gartman Gold/Yen ETF		9,359,124			—		(6,500	)		(6,500	)		(394,704	)
Global Echo ETF		4,538,986			255,805		(172,148	)		83,657			—
KIM Korea Equity ETF		7,314,703			74,028		(296,740	)		(222,712	)		—
Madrona Domestic ETF		24,402,199			2,225,914		(750,775	)		1,475,139			—
Madrona Global Bond ETF		21,308,411			214,703		(475,464	)		(260,761	)		—
Madrona International ETF		17,413,483			902,016		(595,170	)		306,846			—
Market Adaptive Unconstrained Income ETF		1,258,236			7,317		(497	)		6,820			—
Meidell Tactical Advantage ETF		9,887,618			476,281		(921	)		475,360			—
Morgan Creek Global Tactical ETF		7,858,306			428,099		(248,965	)		179,134			—
Newfleet Multi-Sector Income ETF		263,329,783			1,581,856		(3,075,960	)		(1,494,104	)		—
Pacific Asset Enhanced Floating Rate ETF		27,153,320			356,822		(168,514	)		188,308			143,918
Peritus High Yield ETF		219,144,758			4,973,628		(4,848,123	)		125,505			—
QAM Equity Hedge ETF		5,038,903			273,405		(29,999	)		243,406			—
Ranger Equity Bear ETF		(68,996,142	)		3,269,325		(14,618,214	)		(11,348,889	)		—
Sage Core Reserves ETF		87,726,797			69,613		(69,396	)		217			—
STAR Global Buy-Write ETF		16,052,685			1,296,074		(29,879	)		1,266,195			22,675
Wilshire Buyback ETF		128,203,471			22,297,857		(3,278,292	)		19,019,565			—

140

ADVISORSHARES TRUST
Notes to Financial Statements (Continued)

December 31, 2016 (unaudited)

8. Federal Income Tax – (continued)

Under current tax regulations, capital losses on securities transactions realized after October 31 (‘‘Post-October Losses’’) may be deferred and treated as occurring on the first business day of the following fiscal Under the recently enacted Regulated Investment Company Modernization Act of 2010, the Funds will be permitted to defer taxable ordinary income losses incurred after December 31 and treat as occurring on the first business day of the following fiscal year. Post-October losses and ordinary income losses deferred to July 1, 2016 are as follows:

Fund	Late Year Ordinary Deferral		Short-Term Post-October Loss		Long-Term Post- October Loss
Athena High Dividend ETF	$	—	$	508,722	$	584,139
Dorsey Wright ADR ETF		—		297,911		86,646
Gartman Gold/Euro ETF		—		—		24,489
Gartman Gold/Yen ETF		—		256,513		1,203,697
Global Echo ETF		—		157,095		27,813
Madrona Domestic ETF		—		522,233		1,045,825
Madrona Global Bond ETF		—		8,963		169,180
Madrona International ETF		—		1,836,140		816,050
Market Adaptive Unconstrained Income ETF		45,657		—		—
Meidell Tactical Advantage ETF		45,505		1,496,961		—
Morgan Creek Global Tactical ETF		47,654		371,999		—
Newfleet Multi-Sector Income ETF		—		—		1,202,986
Pacific Asset Enhanced Floating Rate ETF		—		16,354		—
Peritus High Yield ETF		—		16,349,431		24,804,841
QAM Equity Hedge ETF		22,177		150,784		—
Ranger Equity Bear ETF		2,234,404		14,108,166		—
Sage Core Reserves ETF		—		14,634		94,098
STAR Global Buy-Write ETF		—		109,572		140,710
Wilshire Buyback ETF		—		6,045,271		43,391

141

ADVISORSHARES TRUST
Notes to Financial Statements (Continued)

December 31, 2016 (unaudited)

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
Athena High Dividend ETF	$	3,124,233	$	177,949	$	3,302,182
Dorsey Wright ADR ETF		87,432		210,388		297,820
Gartman Gold/Yen ETF		101,375		152,062		253,437
Global Echo ETF		64,440		—		64,440
Madrona Domestic ETF		1,384,922		457,709		1,842,631
Madrona Global Bond ETF		343,709		299,962		643,671
Madrona International ETF		3,763,754		55,931		3,819,685
Market Adaptive Unconstrained Income ETF		90,638		30,354		120,992
Meidell Tactical Advantage ETF		1,610,726		—		1,610,726
Morgan Creek Global Tactical ETF		19,722,117		—		19,722,117
Newfleet Multi-Sector Income ETF		1,230,440		718,750		1,949,190
Pacific Asset Enhanced Floating Rate ETF		258,515		—		258,515
Peritus High Yield ETF		81,537,432		43,891,679		125,429,111
QAM Equity Hedge ETF		36,000		—		36,000
Ranger Equity Bear ETF		164,220,841		—		164,220,841
Sage Core Reserves ETF		76,638		68,966		145,604
STAR Global Buy-Write ETF		—		319,870		319,870
Wilshire Buyback ETF		11,231,384		—		11,231,384

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

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Notes to Financial Statements (Continued)

December 31, 2016 (unaudited)

as under previous law. The carry forward capital losses noted above are all post-enactment capital loss carry forwards.

The following Funds utilized capital loss carryforwards to offset taxable capital gains realized during the period ended December 31, 2016:

Fund	Amount
Dorsey Wright ADR ETF	$	93,985

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 period ended December 31, 2016 are as follows:

Affiliated Fund Name	Value at 6/30/2016		Purchases/ Additions		Sales/ Reductions			Value at 12/31/2016		Dividend Income		Realized Gain (Loss)
Gartman Gold/Euro ETF
Sage Core Reserves ETF	$	—	$	4,974,000	$	—		$	4,967,500	$	9,754	$	—
Gartman Gold/Yen ETF
Sage Core Reserves ETF		—		4,974,000		—			4,967,500		9,753		—
Madrona Global Bond ETF
Peritus High Yield ETF		1,631,570		642,469		(285,699	)		2,081,532		79,798		18,248
Meidell Tactical Advantage ETF
Cornerstone Small Cap ETF		—		878,499		881,162			—		—		2,663
QAM Equity Hedge ETF
Sage Core Reserves ETF		278,950		—		—			278,180		1,481		—
Ranger Equity Bear ETF
Sage Core Reserves ETF		102,115,625		—		(34,788,341	)		67,061,250		417,841		(180,309	)

10. Investment Transactions

Purchases and sales of investments for the period ended December 31, 2016 are as follows:

	Purchases						Sales
Fund	Long Term		U.S. Government		In-Kind		Long Term		U.S. Government		In-Kind
Athena High Dividend ETF	$	8,203,101	$	—	$	402,800	$	8,185,968	$	—	$	417,970
Cornerstone Small Cap ETF		1,360,268		—		2,702,422		1,376,996		—		738,257
Dorsey Wright ADR ETF		10,638,689		—		12,533,053		10,347,660		—		9,300,699
Focused Equity ETF		3,913,993		—		6,569,538		2,808,744		—		—
Gartman Gold/Euro ETF		4,974,000		—		—		—		—		—
Gartman Gold/Yen ETF		4,974,000		—		—		—		—		—
Global Echo ETF		1,634,473		13,036		1,709,684		2,083,764		13,090		2,699,228
KIM Korea Equity ETF		7,675,534		—		—		323,712		—		—
Madrona Domestic ETF		9,415,623		—		4,520,314		6,860,241		—		11,501,803
Madrona Global Bond ETF		1,634,577		—		640,838		1,652,018		—		1,896,599
Madrona International ETF		18,982,265		—		—		18,662,866		—		1,154,574
Market Adaptive Unconstrained Income ETF		13,058,595		—		—		13,032,911		—		—
Meidell Tactical Advantage ETF		70,703,654		—		—		76,968,948		—		5,408,943
Morgan Creek Global Tactical ETF		314,856		—		—		893,028		—		—
Newfleet Multi-Sector Income ETF		60,835,898		—		245,961		67,651,164		—		245,961
Pacific Asset Enhanced Floating Rate ETF		8,970,625		—		—		7,497,344		—		—
Peritus High Yield ETF		122,835,885		—		—		126,556,239		—		12,373,479
QAM Equity Hedge ETF		2,529,017		—		—		2,887,214		—		—
Ranger Equity Bear ETF		306,931,485		—		—		266,736,684		—		—
Sage Core Reserves ETF		13,671,610		—		—		25,862,175		—		—
STAR Global Buy-Write ETF		2,481,256		—		—		2,728,702		—		649,202
Wilshire Buyback ETF		120,376,092		—		23,125,301		123,220,949		—		52,955,370

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Notes to Financial Statements (Continued)

December 31, 2016 (unaudited)

10. Investment Transactions – (continued)

Options written transactions during the period ended December 31, 2016, were as follows:

STAR Global Buy-Write ETF	Contracts		Premiums Paid/ Received
Options outstanding at June 30, 2016	512		$	37,313
Options written	2,723			211,471
Options terminated in closing purchase transactions	(1,468	)		(127,908	)
Options expired	(1,314	)		(84,249	)
Options exercised	—			—
Options outstanding at December 31, 2016	453			36,627

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.

Credit Risk

Credit risk is the risk that an issuer or guarantor of debt instruments or the counterparty to a financial transaction, including derivatives contracts, repurchase agreements or loans of portfolio securities, is unable or unwilling to make timely interest and/or principal payments or to otherwise honor its obligations. The Fund’s, and its affiliates, manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of each Fund’s exposure to credit and counterparty risks with respect to those financial assets is approximated by their value recorded in its Statements of Assets and Liabilities. High yield securities may also be subject to greater levels of credit or default risk than higher-rated securities and high yield securities may be less liquid and more difficult to sell at an advantageous time or price or to value than higher-rated securities. In particular, high yield securities are often issued by smaller, less creditworthy companies or by highly leveraged (indebted) companies, which are generally less able than more financially stable companies to make scheduled payments of interest and principal.

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

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Notes to Financial Statements (Continued)

December 31, 2016 (unaudited)

11. Risks Involved with Investing in the Funds – (continued)

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. Regulatory Matters

In October 2016, the Securities and Exchange Commission (SEC) issued a new rule, Investment Company Reporting Modernization, which, among other provisions, amends Regulation S-X to require standardized, enhanced disclosures, particularly related to derivatives, in investment company financial statements. Compliance with the guidance is effective for financial statements filed with the SEC on or after August 1, 2017; adoption will have no effect on the fund’s net assets or results of operations. Management is currently evaluating the impacts to the financial statement disclosures, if any.

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Notes to Financial Statements (Continued)

December 31, 2016 (unaudited)

13. Subsequent Events

The Funds have adopted authoritative standards of accounting for disclosure of events that occur after the Statements of Assets 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 December 31, 2016 the following events occurred:

The following Funds paid dividends after December 31, 2016:

Fund	Ticker	Ordinary Income Per Share Distributed		Payable Date
Athena High Dividend ETF	DIVI	$	0.05083	1/31/2017
Madrona Global Bond ETF	FWDB	$	0.00458	1/31/2017
Newfleet Multi-Sector Income ETF	MINC	$	0.08905	1/31/2017
Pacific Asset Enhanced Floating Rate ETF	FLRT	$	0.10344	1/31/2017
Peritus High Yield ETF	HYLD	$	0.18428	1/31/2017
Sage Core Reserves ETF	HOLD	$	0.07101	1/31/2017

Effective January 23, 2017, AdvisorShares Global Echo ETF changed its fee structure from a unified fee structure of 1.10% to an annual investment advisory fee of 0.80%. As part of the change, the Advisor will contractually agree, through a combination of fee waivers and expense reimbursements, to generally limit the Fund’s total annual operating expenses to 0.99%, excluding certain specified expenses.

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Board Review of Investment Advisory and Sub-Advisory Agreements

Renewal of the Sub-Advisory Agreements for AdvisorShares Global Echo ETF, AdvisorShares Athena High Dividend ETF, AdvisorShares Madrona Domestic ETF, AdvisorShares Madrona Global Bond ETF, AdvisorShares Madrona International ETF, AdvisorShares Morgan Creek Global Tactical ETF, AdvisorShares QAM Equity Hedge ETF, AdvisorShares Ranger Equity Bear ETF, and AdvisorShares STAR Global Buy-Write ETF

At meetings of the Board of Trustees (the “Board”) of AdvisorShares Trust (the “Trust”) held on August 23, 2016 and November 30, 2016, the Board, including those trustees who are not “interested persons” of the Trust, as that term is defined in the Investment Company Act of 1940 (the “1940 Act”) (the “Independent Trustees”), unanimously approved the renewal of separate sub-advisory agreements (collectively, the “Sub-Advisory Agreements”), on behalf of certain series of the Trust (each a “Fund” and collectively the “Funds”), between AdvisorShares Investments, LLC (the “Advisor”) and (1) AthenaInvest Advisors LLC, on behalf of the AdvisorShares Athena High Dividend ETF, (2) Commerce Asset Management, LLC, on behalf of the AdvisorShares QAM Equity Hedge ETF, (3) Community Capital Management, Inc. and Reynders, McVeigh Capital Management LLC, on behalf of the AdvisorShares Global Echo ETF, (4) Madrona Funds, LLC, on behalf of the AdvisorShares Madrona Domestic ETF, AdvisorShares Madrona Global Bond ETF, and AdvisorShares Madrona International ETF, (5) Partnervest Advisory Services, on behalf of the AdvisorShares STAR Global Buy-Write ETF, and (6) Ranger Alternative Management, L.P., on behalf of the AdvisorShares Ranger Equity Bear ETF (collectively, the “Sub-Advisors”), pursuant to which the Sub-Advisors perform portfolio management and related services for the Funds.

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

As discussed in further detail below, 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 provided by the Sub-Advisor; (ii) the personnel and operations of the Sub-Advisor; (iii) the investment performance of each Fund; (iv) the costs of the services provided and profits and other benefits realized by the Sub-Advisor and its affiliates from the relationship with each Fund; (v) the extent to which economies of scale would be realized as each Fund grows; and (vi) whether fee levels reflect the sharing of these economies of scale for the benefit of each Fund’s shareholders. At the meetings, the Board was presented with additional information to help it evaluate each Sub-Advisor’s fee and other aspects of the Sub-Advisory Agreements.

The Board received an overview of each Sub-Advisor’s operations and management of the Funds, including comparative fee data and profitability analysis for each Fund, and was also provided with information with respect to compliance oversight. The Board reviewed the management of each Fund, including the Fund’s strategy, the focus in the markets, the Fund’s positioning in the market, and its attractive and unique offering. The Board reviewed each Sub-Advisor’s overall business generally, including any noteworthy personnel changes.

The Board deliberated on the renewal of the Sub-Advisory Agreements in light of the written materials that it received before the meetings, information it received at the meetings, and information it had received at prior board meetings. In its deliberations, the Board considered the factors and reached

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the conclusions described below relating to the selection of each Sub-Advisor and the renewal of its Sub-Advisory Agreement. The Board did not identify any single piece of information discussed below that was paramount, controlling or determinative of its decision.

Nature, Extent and Quality of Services

In considering the nature, extent and quality of the services provided by each Sub-Advisor, the Board reviewed the portfolio management services provided to each Fund. The most recent Form ADV for each Sub-Advisor also was provided to the Board, as were responses to a detailed series of questions that, among other things, requested information about their business, services, and compensation. The Board considered each Sub-Advisor’s overall quality of personnel, operations, and financial condition, its investment advisory capabilities, and information concerning each Sub-Advisor’s compliance function, operational capabilities, and portfolio management team. Based on its review, within the context of its full deliberations, the Board determined that it was satisfied with the nature, extent and quality of the services provided to the Funds by the Sub-Advisors.

Performance

The Board was provided with information regarding each Fund’s performance for various periods, as well as comparative performance information. Each Sub-Advisor provided information regarding factors impacting the performance of the Funds, outlining current market conditions, and explaining its expectations and strategies for the future. Based on this information, the Board concluded that it was satisfied with the investment results that each Sub-Advisor had been able to achieve for its respective Fund(s).

Cost of Advisory Services and Profitability

In considering whether the sub-advisory fees payable with respect to each Fund were reasonable, the Board reviewed the sub-advisory fees paid by the Advisor to each Sub-Advisor, the fees waived and/or expenses reimbursed by each Sub-Advisor over the period, the costs and other expenses incurred by each Sub-Advisor in providing advisory services, and the profitability analysis with respect to each Fund. The Board also reviewed information comparing the advisory fees paid by each Fund to those paid by comparable funds. Based on its review, in the context of its full deliberations, the Board concluded for each Fund that the sub-advisory fees appeared reasonable in light of the services rendered.

Economies of Scale

The Board considered for each Fund whether economies of scale were realized during the current contract period, noting any fee waivers and/or expense reimbursements by the Sub-Advisors and whether the Advisor’s and/or Sub-Advisors’ fees included breakpoints. The Board determined to reassess at an appropriate time in the future whether the aggregate advisory fee appropriately took into account any economies of scale that had been realized as a result of any significant asset growth of the Funds.

Ancillary Benefits

The Board noted the potential benefits to be received by each Sub-Advisor as a result of its relationship with a Fund (other than the sub-advisory fee), including the intangible benefits of its association with the Trust generally and any favorable publicity arising in connection with a Fund’s performance.

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

Approval of New and Interim Sub-Advisory Agreements for AdvisorShares Dorsey Wright ADR ETF

At its August 23, 2016 meeting, the Board considered the approval of a new sub-advisory agreement between the Advisor and Dorsey, Wright & Associates, LLC (“Dorsey Wright”) (the “Sub-Advisory Agreement”), on behalf of the AdvisorShares Dorsey Wright ADR ETF (formerly the AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF) (the “Fund”). The Board also considered the approval of an interim sub-advisory agreement between the Advisor and Dorsey Wright that became effective at the termination of the sub-advisory agreement between the Advisor and the Fund’s previous sub-advisor and continued in effect until the Sub-Advisory Agreement was approved by shareholders of the Fund. With respect to the Board’s consideration and approval, references below to the Sub-Advisory Agreement also refer to the interim sub-advisory agreement where applicable.

In considering whether to approve the Sub-Advisory Agreement, the Board reviewed and discussed information and analysis provided by Dorsey Wright and the Advisor. Below is a summary of the factors considered by the Board and the conclusions that formed the basis for the Board’s approval. The Board did not identify any single piece of information as paramount or controlling and individual trustees may have attributed different weights to various factors.

Nature, Extent and Quality of Services

In considering the nature, extent and quality of the services to be provided by Dorsey Wright to the Fund, the Board reviewed, among other things, Dorsey Wright’s personnel, experience, and compliance program. The Board considered the background and experience of Dorsey Wright’s senior management and the qualification and background of the portfolio manager proposed to be responsible for the day-to-day portfolio management of the Fund. The Board also reviewed information pertaining to Dorsey Wright’s organizational structure, investment operations, and other relevant information, including information relating to the financial condition of Dorsey Wright to determine whether adequate resources were available to provide a high level of service to the Fund. The Board concluded that, within the context of its full deliberations, it was satisfied with the nature, extent and quality of the services to be provided to the Fund by Dorsey Wright.

Performance

In connection with the assessment of Dorsey Wright’s ability to perform its duties under the Sub-Advisory Agreement, the Board considered the sufficiency of its resources and concluded that Dorsey Wright had the financial resources necessary to perform its obligations under the Sub-Advisory Agreement. The Board also reviewed information about Dorsey Wright’s investment philosophy, the proposed portfolio construction of the Fund, and the specific investment techniques to be employed, as well as information regarding the investment performance of Dorsey Wright’s comparable accounts.

Cost of Services and Profitability

The Board considered the cost of the services to be provided by Dorsey Wright, reviewed the fee to be paid pursuant to the Sub-Advisory Agreement, and considered the estimated profitability projected by Dorsey Wright. The Board noted that the Advisor would be responsible for paying Dorsey Wright

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

out of the advisory fee it receives from the Fund. The Board also noted that the aggregate advisory fee to be paid to the Adviser and sub-advisory fee to be paid to Dorsey Wright would be identical to the current fees for the Fund in connection with the interim sub-advisory agreement, as well as to the fees in connection with the sub-advisory agreement with the Fund’s previous sub-advisor. The Board evaluated the proposed fee arrangement in light of the factors that judicial decisions have specified as pertinent generally. The Board also considered the Advisor’s contractual arrangement to waive its advisory fee and/or reimburse expenses in an effort to control the expense ratio of the Fund. Based on its review, within the context of its full deliberations, the Board determined that the fee proposed to be paid to Dorsey Wright is fair and reasonable.

Economies of Scale

The Board considered the potential for economies of scale 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 the Fund, the Board determined to reassess whether the fee appropriately took into account any economies of scale that had been realized as a result of that growth.

Ancillary Benefits

The Board noted the potential benefits to be received by Dorsey Wright as a result of its relationship with the Fund (other than the sub-advisory fee), including the intangible benefits of its association with the Trust generally and any favorable publicity arising in connection with the Fund’s performance.

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 Sub-Advisory Agreement are fair and reasonable; (ii) concluded that the fee to be paid to Dorsey Wright is fair and reasonable in light of the services that it will provide to the Fund; and (iii) agreed to approve the Sub-Advisory Agreement for an initial term of two years.

Approval of the Advisory and Sub-Advisory Agreements for AdvisorShares Cornerstone Small Cap ETF and AdvisorShares KIM Korea Equity ETF

At a meeting held on February 17, 2016, the Board considered the approval of the investment advisory agreement (the “Advisory Agreement”) between the Trust and the Advisor on behalf of the AdvisorShares Cornerstone Small Cap ETF and AdvisorShares KIM Korea Equity ETF (the “Funds”). The Board noted that the Advisor provides investment advisory services to the other series of the Trust. The Board also considered the approval of separate sub-advisory agreements (the “Sub-Advisory Agreements,” and collectively with the Advisory Agreement, the “New Agreements”) between the Advisor and (1) Cornerstone Investment Partners, LLC, on behalf of the AdvisorShares Cornerstone Small Cap ETF, and (2) Korea Investment Management Co. Ltd., on behalf of the AdvisorShares KIM Korea Equity ETF (together the “Sub-Advisors”), pursuant to which the Sub-Advisors perform portfolio management and related services for the Funds.

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 Advisor and Sub-Advisors. In that regard, the Board reviewed presentations 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

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

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.

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

Nature, Extent and Quality of Services

In considering the nature, extent and quality of the services to be provided by the Advisor and Sub-Advisors to the Funds, the Board reviewed, among other things, the Sub-Advisors’ personnel, experience, and compliance program. The Board considered the background and experience of the Sub-Advisors’ senior management and the qualification and background of the portfolio managers proposed to be responsible for the day-to-day portfolio management of the Funds. The Board also reviewed information pertaining to the Sub-Advisors’ organizational structure, investment operations, and other relevant information, including information relating to the financial condition of each Sub-Advisor to determine whether adequate resources were available to provide a high level of service to the Funds.

The Board noted the extensive responsibilities that the Advisor has as investment adviser to the Funds, including the selection of the Funds’ sub-advisors and oversight of the sub-advisors’ compliance with Fund policies and objectives, oversight of general Fund compliance with federal and state laws, and the implementation of Board directives as they relate to the Funds.

The Board concluded that, within the context of its full deliberations, it was satisfied with the nature, extent and quality of the services to be provided to the Funds by the Advisor and the Sub-Advisors.

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 and concluded that each Sub-Advisor had the financial resources necessary to perform its obligations under its Sub-Advisory Agreement. The Board also reviewed information about each Sub-Advisor’s investment philosophy, the proposed portfolio construction of each Fund, and the specific investment techniques to be employed, as well as information regarding the investment performance of each Sub-Advisor’s comparable accounts.

Cost of Services and Profitability

The Board considered the cost of the services to be provided by the Advisor and Sub-Advisors, reviewed the fees to be paid pursuant to the New Agreements, and considered the estimated profitability projected by the Advisor and each Sub-Advisor. The Board noted that the Advisor would be responsible for paying each Sub-Advisor out of the advisory fee it receives from the applicable Fund. The Board also reviewed information regarding advisory fees of comparable funds, and evaluated the proposed 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 its advisory fee and/or reimburse expenses in an effort to control the expense ratios of the Funds. Based on its review, within the context of its full deliberations, the Board determined that the fees proposed to be paid to the Advisor and Sub-Advisors are fair and reasonable.

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

Economies of Scale

The Board considered the potential for economies of scale 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 a Fund, the Board determined to reassess whether the investment advisory and sub-advisory fees appropriately took into account any economies of scale that had been realized as a result of that growth.

Ancillary Benefits

The Board noted the potential benefits to be received by each Sub-Advisor as a result of its relationship with a Fund (other than the sub-advisory fee), including the intangible benefits of its association with the Trust generally and any favorable publicity arising in connection with a Fund’s performance.

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 fee to be paid to the Advisor is fair and reasonable in light of the services that it will provide to the Funds; (iii) concluded that the fee to be paid to 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.

Approval of the Advisory Agreement for AdvisorShares Focused Equity ETF

At a meeting held on May 24, 2016, the Board considered the approval of the investment advisory agreement (the “Advisory Agreement”) between the Trust and the Advisor on behalf of the AdvisorShares Focused Equity ETF (the “Fund”). The Board noted that the Advisor provides investment advisory services to the other series of the Trust and that the renewal of the advisory agreement with respect to those series also was being considered by the Board at the same meeting.

In connection with its consideration of the Advisory Agreement, the Board, including the Independent Trustees, was presented with, and requested, received and evaluated, materials about the services proposed to be provided thereunder, including information about the key features of the Fund and related matters. In that regard, the Board reviewed a presentation from the Advisor, which included information with respect to the investment advisory fee rate, the services to be provided, and the proposed portfolio manager. The Board also reviewed the information provided by the Advisory in connection with the renewal of its advisory agreement with respect to the other series of the Trust.

In considering the Advisory Agreement, the Board considered factors bearing on the nature, extent and quality of the services proposed to be provided to the Fund and the cost of those services, with a view toward making a business judgment as to whether the Advisory Agreement is, under the circumstances, in the best interests of the Fund. In its deliberations, the Board did not identify any single piece of information that was paramount or controlling and individual trustees may have attributed different weights to various factors. Certain factors considered by the Board are addressed in more detail below.

Nature, Extent and Quality of Services

In considering the nature, extent and quality of the services to be provided by the Advisor to the Fund, the Board noted that the Advisor would be providing portfolio management services to the Fund and reviewed, among other things, the qualification and background of the portfolio manager proposed to be responsible for the day-to-day portfolio management of the Fund. The Board also reviewed information pertaining to the other services to be provided by the Advisor to the Fund and

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

the Advisor’s capacity to provide such services. The Board concluded that, within the context of its full deliberations, it was satisfied with the nature, extent and quality of the services to be provided to the Fund by the Advisor.

Performance

In connection with the assessment of the ability of the Advisor to perform its duties under the Advisory Agreement, the Board considered the sufficiency of its resources and concluded that the Advisor had the financial and operational resources necessary to perform its obligations under the Advisory Agreement. The Board also reviewed information about the Advisor’s investment philosophy and the proposed portfolio construction of the Fund.

Cost of Services and Profitability

The Board considered the cost of the services to be provided by the Advisor, reviewed the fee to be paid pursuant to the Advisory Agreement, and considered the estimated profitability projected by the Advisor. The Board noted that the proposed advisory fee includes a fulcrum fee component, which is intended to align the Advisor’s incentives with those of the Fund, and reviewed the structure of the arrangement. The Board also reviewed information regarding advisory fees of comparable funds, and evaluated the proposed fee arrangement in light of this information and the factors that judicial decisions have specified as pertinent generally. The Board also considered the Advisor’s contractual arrangement to waive its advisory fee and/or reimburse expenses in an effort to control the expense ratio of the Fund. Based on its review, within the context of its full deliberations, the Board determined that the fee proposed to be paid to the Advisor is fair and reasonable.

Economies of Scale

The Board considered the potential for economies of scale 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 the Fund, the Board determined to reassess whether the investment advisory fee appropriately took into account any economies of scale that had been realized as a result of that growth.

Conclusion

Based on its deliberations and evaluation of the information described above, the Board, including the Independent Trustees, unanimously: (i) concluded that the terms of the Advisory Agreement are fair and reasonable; (ii) concluded that the fee to be paid to the Advisor is fair and reasonable in light of the services that it will provide to the Fund; and (iii) agreed to approve the Advisory Agreement for an initial term of two years.

153

SUPPLEMENTAL INFORMATION

Quarterly Portfolio Holdings Information

The Funds are 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 on the SEC’s website at www.sec.gov. You can also obtain copies of Form N-Q by 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.

Proxy Voting Information

A description of the Funds proxy voting policies and procedures, as well as a record of how the Funds voted proxies during the most recent 12-month period ended June 30, is available without charge upon request by calling 1-877-843-3831. This information is also available on the SEC’s website at www.sec.gov.

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 www.advisorshares.com.

154

ADVISORSHARES TRUST

Investment Advisor

AdvisorShares Investments, LLC
4800 Montgomery Lane, Suite 150
Bethesda, MD 20814

Sub-Advisors

Madrona Funds, LLC

2911 Bond Street, Suite 105
Everett, WA 98201

Morgan Creek Capital Management, LLC

301 West Barbee Chapel Road, Suite 200
Chapel Hill, NC 27517

Ranger Alternative Management, L.P.

2828 N. Harwood Street, Suite 1900
Dallas, TX 75201

Peritus I Asset Management, LLC

26 West Anapamu, 3rd Floor
Santa Barbara, CA 93103

American Wealth Management

570 Hammill Lane
Reno, NV 89511

Community Capital Management, Inc.

2500 Weston Road, Suite 101
Weston, FL 33331

Reynders, McVeigh Capital Management, LLC

121 High Street, 5th Floor
Boston, MA 02110

Newfleet Asset Management, LLC

100 Pearl Street
Hartford, CT 06103

Partnervest Advisory Services, LLC

1216 State Street, 3rd Floor
Santa Barbara, CA 93101

Commerce Asset Management, LLC

6075 Poplar Avenue, Suite 700
Memphis, TN 38119

AthenaInvest, Inc.

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

Sage Advisory Services, Ltd. Co.

5900 Southwest Parkway, Building I
Austin, TX 78735

Pacific Life Fund Advisors, LLC

700 Newport Center Drive
Newport Beach, CA 92660

Cornerstone Investment Partners, LLC

3438 Peachtree Road NE, Suite 900
Atlanta, GA 30326

Dorsey, Wright & Associates, LLC

1101 Boulder Spring Drive, Suite 150
Richmond, VA 23225

Korea Investment Management Co., Ltd.

88 Uisadang-Daero, Yeondgdeungpo
Seoul, Korea,150-745

Wilshire Associates Incorporated

1299 Ocean Avenue
Santa Monica, CA 90401

Distributor

Foreside Fund Services, LLC

Three Canal Plaza, Suite 100
Portland, ME 04101

Custodian/Fund Administrator/Transfer Agent

The Bank of New York Mellon
101 Barclay Street
New York, NY 10286

Legal Counsel

Morgan, Lewis & Bockius LLP
1111 Pennsylvania Avenue, NW
Washington, D.C. 20004

Independent Registered Public Accounting Firm

Tait, Weller & Baker LLP
1818 Market Street
Philadelphia, PA 19103

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

 

Item 2. Code of Ethics.

Not Applicable for the semi-annual reporting period.

Item 3. Audit Committee Financial Expert.

Not Applicable for the semi-annual reporting period.

Item 4. Principal Accountant Fees and Services.

Not Applicable for the semi-annual reporting period.

Item 5. Audit Committee of Listed Registrants.

Not Applicable for the semi-annual reporting period.

Item 6. Investments.

(a) Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form.

(b) Not applicable.

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

Not applicable.

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

Not applicable.

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

Not applicable.

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

Not applicable.

Item 11. Controls and Procedures.

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

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

Item 12. Exhibits.

(a)(1) Not applicable.

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

(a)(3) Not applicable.

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

SIGNATURES

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

(Registrant) AdvisorShares Trust

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

Date 2/28/2017

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 2/28/2017

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

Date 2/28/2017

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