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: June 30, 2018
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
Annual Report
June 30, 2018
TABLE OF CONTENTS
Letter from the CEO of AdvisorShares Investments, LLC |
| 1 |
Hypothetical Growth of a $10,000 Investment, Historical Performances |
| 3 |
Shareholder Expense Examples |
| 33 |
Schedules of Investments |
|
|
| 35 | |
| 41 | |
| 44 | |
| 46 | |
| 49 | |
| 58 | |
| 60 | |
| 63 | |
| 64 | |
| 78 | |
| 83 | |
| 85 | |
| 90 | |
| 91 | |
| 92 | |
Statements of Assets and Liabilities |
| 96 |
Statements of Operations |
| 100 |
Statements of Changes in Net Assets |
| 104 |
Financial Highlights |
| 110 |
Notes to Financial Statements |
| 121 |
Report of Independent Registered Public Accounting Firm |
| 144 |
Board of Trustees and Officers (Unaudited) |
| 145 |
Supplemental Information |
| 146 |
ADVISORSHARES TRUST
Letter from the CEO of AdvisorShares Investments, LLC
June 30, 2018
As rumblings of potential trade wars and rising interest rates have tended to overshadow the recent financial news cycle, depending on one’s outlook, an ominous cloud may seem lurking over the broader markets and the asset management industry. Another perspective could easily take a more optimistic viewpoint, regardless if we’re continuing an historic bull market or on a path towards a bear market, that an increasing amount of educational resources and tools using the best investment technology available today in the form of exchange-traded funds (ETFs) are available for investors to manage risk. As an early and established leader in the actively managed ETF space, AdvisorShares remains committed to our fund shareholders and prospective investors through our diverse, innovative suite of ETFs that seek to provide attractive risk-adjusted returns relative to their respective benchmarks. We also continue to be educational advocates on the benefits of actively managed ETFs and how manager and strategy diversification throughout all market environments may improve one’s path toward their investment goals.
AdvisorShares regularly publishes a monthly Active ETF Report that provides a detailed overview of our rapidly expanding investment space. In my letter in last year’s Annual Report, I cited how 187 actively managed ETFs were trading with total net assets exceeding past $37 billion. As of June 30, 2018, 232 actively managed ETFs are trading with total net assets surpassing $58 billion. The growth of the active ETF space has remained remarkably consistent with a growing number of fund sponsors, which includes prominent portfolio managers and some of the largest mutual fund firms, as the asset management industry continues to gravitate toward the active ETF space.
Exhibit 1
As of June 30, 2018; Source: AdvisorShares
AdvisorShares has maintained a steady position with its market share among overall active ETF net assets even as the number of fund sponsors continues to increase. One catalyst of growth can be attributed to the AdvisorShares Dorsey Wright ETF (Ticker: AADR) which utilizes the widely regarded expertise of its portfolio manager, Nasdaq Dorsey Wright, in applying technical analysis and relative strength investing to an international equity strategy. Other funds such as the AdvisorShares Newfleet Multi-Sector Income ETF (Ticker: MINC), the AdvisorShares Wilshire Buyback ETF (Ticker: TTFS), the AdvisorShares STAR Global Buy-Write ETF (Ticker: VEGA) and the AdvisorShares Cornerstone Small
1
ADVISORSHARES TRUST
Letter from the CEO of AdvisorShares Investments, LLC (Continued)
June 30, 2018
Cap ETF (Ticker: SCAP) join AADR as investment strategies that have exhibited exemplary, overall risk-adjusted performance among their peer groups.
We closed one fund during the first half of 2018, which was the AdvisorShares Meidell Tactical Advantage ETF (Ticker: MATH). MATH closed after our firm successfully completed a proxy process to make AdvisorShares 100% employee-owned. Unfortunately, decades-old proxy voting rules forced this closure as MATH did not receive enough proxy votes among its shareholders to meet quorum. The Peritus High Yield ETF (Ticker: HYLD) did not close but moved to another Trust and is no longer an AdvisorShares-affiliated product. While no new ETFs launched during the first six months of 2018, we are preparing for two new ETFs to begin trading soon: a micro cap equity strategy (Ticker: DWMC) and a short equity strategy (Ticker: DWSH) both managed by Dorsey Wright who will be employing their renowned relative strength investment approach to both ETFs.
We remain tremendously optimistic about our actively managed ETF suite. A number of our ETFs that have reached their three-year track record, an important milestone for investors evaluating actively managed strategies, stand out when viewing their overall risk-adjusted performance among their respective peer groups. As we complement our existing strategies with new ETFs entering a new fiscal year, we believe our compelling line-up will continue to benefit our current shareholders as well as attract new investors. We remain bullish on the future of actively managed ETFs and the structural benefits that they deliver—the ability to use limit orders, full transparency, intraday liquidity and operational and tax efficiency. As an early trailblazer within the active ETF space, we look forward to continuing serving you, our shareholders, and thank you for your ongoing support and interest in AdvisorShares.
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 June 30, 2018 and may not reflect his views on the date that this report is first published or anytime thereafter. These views are intended to assist shareholders in understanding their investments and do not constitute investment advice.
2
ADVISORSHARES TRUST
AdvisorShares Cornerstone Small Cap ETF (SCAP)
For the 12-month period ending June 30, 2018, the AdvisorShares Cornerstone Small Cap ETF returned 23.93% on a NAV basis and 24.04% on a Market Price basis. For the same period, the Russell 2000 Index returned 17.57%. As of June 30, 2018, the strategy underlying the ETF has a six-year track record of outperformance, returning 17.71% on an annualized NAV basis, while the Russell 2000 Index has returned 14.34%.
Small cap stocks demonstrated strength during the period, as investors continued to seek companies that would benefit from a changing legislative agenda, particularly tax reform. Additionally, as confidence in the U.S. economy improved at the same time as foreign uncertainty rose, companies exhibiting fundamental strength, differentiated products, and more domestic exposure benefitted.
The strategy underlying the AdvisorShares Cornerstone Small Cap ETF seeks to identify companies which are demonstrating improving fundamentals and quality balance sheets. This growth tilt in the portfolio likely supported performance, as the Russell 2000 Growth Index significantly outperformed the Russell 2000 Value Index during the period.
Within the portfolio, stock selection was key to our significant positive performance during the period. On a sector basis, our overweight position to and stock selection within Information Technology, Consumer Discretionary, and Energy, our underweight position to and stock selection in Financials, and our underweight position to Utilities were positive contributors to performance. Top contributing holdings include HR consulting business Insperity, Chinese insurance broker Fanhua, and tertiary oil driller Denbury Resources. Our underweight position to Health Care, overweight position to Industrials, and stock selection in Consumer Staples slightly offset our positive performance. Top detracting holdings include power plant builder Argan, fiber-optics producer Applied Optoelectronics, and network security provider A10 Networks. Additionally, as the market was very strong during the period, our modest cash holdings also partly offset performance.
Looking forward, we continue to believe that the portfolio underlying the AdvisorShares Cornerstone Small Cap ETF is well positioned for long-term success. We continue to face a changing environment, with some economic and policy uncertainty. We believe we have developed a methodical, disciplined, and diversified approach to managing small cap stocks with a focus on those companies demonstrating fundamental strength, which should continue to be an attractive way to invest in the asset class.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period July 6, 2016 to June 30, 2018
3
HISTORICAL PERFORMANCE
Total Return as of June 30, 2018
|
| 1 Year |
| Since Inception 7/6/2016 |
| Predecessor 3 Year** |
| Predecessor 5 Year** |
| Predecessor Since Inception 6/30/2012** | |||||
AdvisorShares Cornerstone Small Cap ETF NAV |
| 23.93 | % |
| 24.69 | % |
| 14.61 | % |
| 15.69 | % |
| 17.71 | % |
AdvisorShares Cornerstone Small Cap ETF Market Price** |
| 24.04 | % |
| 24.73 | % |
| N/A |
|
| N/A |
|
| N/A |
|
Russell 2000 Index |
| 17.57 | % |
| 21.46 | % |
| 10.96 | % |
| 12.46 | % |
| 14.34 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 3.06% and the net expense ratio is 0.90%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 0.90%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
____________
* Commencement of operations.
** Simultaneous with the commencement of the Fund’s investment operations on July 7, 2016, a separate account (the “Predecessor Account”), which was managed by the same portfolio management team, converted into the Fund. The Predecessor Account began trading June 30, 2012. All performance prior to July 7, 2016 represents actual trading of the Predecessor Account and has not been restated to reflect the estimated total annual operating expenses of the Fund, which, if reflected, would lower returns. Performance after July 7, 2016 is reflective of the total annual operating expenses of the Fund.
*** The price used to calculate market return (“Market Price’’) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund.
The Russell 2000 index is an index measuring the performance approximately 2,000 small-cap companies in the Russell 3000 Index, which is made up of 3,000 of the biggest U.S. stocks. One cannot invest directly in an index.
4
ADVISORSHARES TRUST
AdvisorShares Dorsey Wright ADR ETF (AADR)
The AdvisorShares Dorsey Wright ADR ETF (AADR) finished the year ended 6/30/2018 up substantially more than its benchmarks. AADR realized gains of 15.45% on a NAV basis and a Market Price Return of 15.01%, while the MSCI EAFE Index gained 6.84% and the BNY Mellon Classic ADR Index was up 6.82% over that 12-month period. Momentum in International markets was strong for the majority of the year, but tailed off during the final 4-6 weeks.
The Fund was overweight to Emerging Markets for most of the year, and that is what drove the bulk of the outperformance. For the bulk of the year, the Fund was very overweighted to Emerging Markets, Latin America specifically. Those overweights hurt performance during the final 3 months of the fiscal year when the U.S. Dollar rallied and Emerging Markets began underperforming Developed Markets. In addition to the broad allocation to Emerging Markets, our security selection was very strong. We had a number of holdings up substantially more than the benchmark.
The performance shift to Developed Markets from Emerging Markets is causing us to change the allocations in the Fund. Looking forward, we expect the first couple of months of the new fiscal year to be a transition period where we are selling names that fall out of our model and replacing them with stronger ones. During that time, we expect to see a reduction in our Emerging Markets exposure and a reduction in the Latin America exposure specifically. We expect momentum to perform well in the coming year. Our indicators show a positive backdrop for momentum strategies and are not signaling a shift to other factors.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period July 21, 2010 to June 30, 2018
5
HISTORICAL PERFORMANCE
Total Return as of June 30, 2018
|
| 1 Year |
| 3 Year |
| 5 Year |
| Since Inception 7/21/2010 | ||||
AdvisorShares Dorsey Wright ADR ETF NAV |
| 15.45 | % |
| 12.00 | % |
| 11.06 | % |
| 10.71 | % |
AdvisorShares Dorsey Wright ADR ETF Market Price** |
| 15.01 | % |
| 11.97 | % |
| 11.01 | % |
| 10.67 | % |
MSCI EAFE Index (Net) |
| 6.84 | % |
| 4.90 | % |
| 6.44 | % |
| 7.17 | % |
BNY Mellon Classic ADR Index TR |
| 6.82 | % |
| 4.98 | % |
| 6.30 | % |
| 6.40 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 0.95% and the net expense ratio is 1.02%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 0.88%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
____________
* Commencement of operations.
** The price used to calculate market return (“Market Price’’) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund.
The MSCI EAFE Index is an unmanaged free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada. One cannot invest directly in an index.
The BNY Mellon Classic ADR Index combines the over the counter (OTC) traded ADRs with exchange-listed ADRs bringing transparency to the available universe of American Depositary Receipts, including those issued by many of the world’s premier companies. One cannot invest directly in an index.
6
ADVISORSHARES TRUST
AdvisorShares Focused Equity ETF (CWS)
The AdvisorShares Focused Equity ETF (CWS) had a very good 12 months ending June 30, 2018. Over that time, the market price return gained 11.51% and the Net Asset Value gained 11.57%.
The objective of CWS is to buy and hold high-quality stocks. As a result, we were able to capitalize on the buoyant market environment during those 12 months. Furthermore, our focus on high-quality stocks prevented us from suffering any undue losses. In fact, our relative performance improved during a period of overall market weakness.
The outlook for CWS continues to be quite good. The Fed’s interest-rate policy will likely cause investors to be more discerning, which benefits the CWS strategy.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period September 20, 2016 to June 30, 2018
7
HISTORICAL PERFORMANCE
Total Return as of June 30, 2018
|
| 1 Year |
| Since | ||
AdvisorShares Focused Equity ETF NAV |
| 11.57 | % |
| 14.73 | % |
AdvisorShares Focused Equity ETF Market Price** |
| 11.51 | % |
| 14.70 | % |
S&P 500 Index |
| 14.37 | % |
| 16.74 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 1.39% and the net expense ratio is 0.68%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 0.75%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
____________
* Commencement of operations.
** The price used to calculate market return (“Market Price’’) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund.
The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks. One cannot invest directly in an index.
8
ADVISORSHARES TRUST
AdvisorShares KIM Korea Equity ETF (KOR)
The AdvisorShares KIM Korea Equity ETF’s (KOR) NAV performance for the 12-month period ending June 30, 2018 finished at 0.82% and the market price return finished at 0.79% during that same span. The MSCI Korea Index returned 3.39% during the same 12-month period.
By sector contribution analysis, biggest gainers were material (+15.17%, +1.65% contribution), energy (+14.06%, +0.65% contribution), and consumer staples (+10.03%, +0.54% contribution). In contrast, the biggest decliner was industrials (-13.55%, -1.94% contribution). By stock, biggest gainers were Shinsegae (+94.5%), Cuckoo (+72.9%), and Medy-Tox (+70.6%), where biggest decliners were Orion holdings (-45.2%), Hanjin KAL (-34.9%), and Vieworks (-31.7%).
KOR by style is heavily weighted toward large cap and growth (“large cap growth”). Active returns by style, KOR overweighted macro sensitivity performing +0.70%, and volatility performing +0.60% in the portfolio. On the other hand, KOR underweighted beta resulting -1.42% and -0.55% by size overweight. Korea stock market did not perform outstanding performance in terms of value or growth, thus KOR’s contribution returns on value or growth were not significant. Outperformance by sector asset allocation, KOR overweighted +4.97% of consumer discretionary and +1.22% of materials in the portfolio resulting +0.65% and +0.27% respectively. In contrast, KOR underweighted -1.00% of health care resulting -0.23% underperforming the benchmark.
As the trade dispute issue is unlikely to spread to become a systemic risk, we believe the Korean stock market could make a sharp rally before year-end. The KOSPI’s current valuation at 0.93x 12MF PB and 8.6x 12MF PE is very attractive even given slowing earnings growth. We will take advantage of the recent pullback to increase the portfolio weighting of large-cap exporters with good earnings visibility. With FX rates rising sharply of late, there is better visibility for large-cap exporters that suffered downward earnings revisions throughout 1H18. These exporters now trade at very attractive valuations as shares plunged amid weak investor sentiment.
We will keep increasing the portfolio weighting of the sectors and stocks with standout growth potential. We shall maintain a large portfolio weighting of sectors related to China’s consumer spending that began to recover and the memory sector that constitutes the main pillar of the “industry 4.0” value chain. We will continue to explore retailers, payment solution providers and internet service companies with changing business models and lift their portfolio weightings. Whenever the stocks correct, we will add more biosimilar plays whose pre-emptive investments have erected high barriers to entry and pharmaceutical companies that have built a superior pipeline after lengthy investment efforts.
9
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period September 28, 2016 to June 30, 2018
HISTORICAL PERFORMANCE
Total Return as of June 30, 2018
|
| 1 Year |
| Since | ||
AdvisorShares KIM Korea Equity ETF NAV |
| 0.82 | % |
| 8.48 | % |
AdvisorShares KIM Korea Equity ETF Market Price** |
| 0.79 | % |
| 8.64 | % |
MSCI Korea Net (USD) |
| 3.39 | % |
| 13.59 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 2.58% and the net expense ratio is 0.99%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 0.99%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
____________
* Commencement of operations.
** The price used to calculate market return (“Market Price’’) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund.
The MSCI Korea Index is a single country index and measures the performance of the large and mid cap segments of the South Korean market. With 107 constituents, the index covers about 85% of the Korean equity universe. One cannot invest directly in an index.
10
ADVISORSHARES TRUST
AdvisorShares Madrona Domestic ETF (FWDD)
For the 12-month period ended June 30th 2018, the AdvisorShares Madrona Domestic ETF (FWDD) underperformed its benchmark. While the S&P 500 Index returned 14.37%, FWDD appreciated 9.76% in NAV and posted a Market Price Return of 9.78%. We believe that our work to seek out value for our investors has retained its course of success and that we were able to capture a sizeable portion of the growth equity markets witnessed in the recent year. FWDD works to seek long-term capital appreciation by selecting a portfolio 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.
Lots of factors come into play that attribute to the past 12-month performance of FWDD. Most notably, the Trump Administration’s lowering of the U.S. corporate tax rate from 35% to 21% proved highly conducive to business and sent expectations soaring. Talk of financial and economic deregulation by the administration also supported a highly optimistic view on domestic markets. 2017 witnessed robust growth not just in the U.S., but also around the world. However, tensions with North Korea and surfacing concerns over economic sanctions and trade wars weighed down markets in the beginning of this year.
Looking forward, we expect the favorable corporate and investing climate to continue to ride its course but are also watching a few activities that could make for a less positive year. A trade war with China, a flattening yield curve, and geopolitical unrest could all make their appearance in the year ahead, and the occurrences of these could pump the brakes on the economic steam engine that has been roaring at full speed this past year. President Trump has met with Kim Jung Un in a historic meeting and tensions are seeming to ease, but the full threat of the belligerent country may not have fully subsided. That said, we do not believe strong domestic growth has run its course, and we expect the months ahead to still benefit investors. Our broad diversification in domestic companies will allow investors to both hedge their risks as well as benefit from rising tides that come with corporate growth. We hope to continue our mission of remianing a suitable investment vehicle for those looking for a well-diversified portfolio.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period June 21, 2011 to June 30, 2018
11
HISTORICAL PERFORMANCE
Total Return as of June 30, 2018
|
| 1 Year |
| 3 Year |
| 5 Year |
| Since | ||||
AdvisorShares Madrona Domestic ETF NAV |
| 9.76 | % |
| 7.37 | % |
| 10.89 | % |
| 11.77 | % |
AdvisorShares Madrona Domestic ETF Market Price** |
| 9.78 | % |
| 7.39 | % |
| 10.90 | % |
| 11.78 | % |
S&P 500 Index |
| 14.37 | % |
| 11.93 | % |
| 13.42 | % |
| 13.71 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 1.37% and the net expense ratio is 1.25%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 1.25%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
____________
* Commencement of operations.
** The price used to calculate market return (“Market Price’’) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund.
The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks. One cannot invest directly in an index.
12
ADVISORSHARES TRUST
AdvisorShares Madrona Global Bond ETF (FWDB)
For the 12-month period ended June 30th 2018, the AdvisorShares Madrona Global Bond ETF (FWDB) surpassed its benchmark. While the Bloomberg Barclays U.S. Aggregate Bond Index saw a return of -0.40%, FWDB increased in NAV by 1.55%, and posted a Market Price Return of 1.47%. We believe that our work to seek out value for our investors has retained its course of success and are happy to see returns in excess of our benchmark for another year. With yield curve and mean reversion analytical tools as foundations for allocation, we aim to retain our value as a forward-looking fund.
There are many factors that attribute to the past 12-month performance of FWDB. First, exposure in the financial sector allowed for buoyant gains derived from expectations of domestic financial deregulation and loosened lending requirements. Lower barriers may enable financial institutions to expand their operations and cash flows, and this was priced into increases from our positions in the financial sector. In addition, our convertible securities and floating rate bonds posted attractive returns as underlying corporate performance has been buoyed by a robust business climate. We hold that our investments and allocations that differ from our benchmark give investors appreciation where our benchmark may overlook.
Looking forward to the rest of the year and to 2019, we expect the overall business climate to remain healthy. However, we are also following Federal Reserve activity as well as U.S. economic relations with other countries for any signs of shifting winds. Notably in Asia and China, positions may be impacted by perceptions of a trade war escalating. Despite concerns, as emerging markets continue their transitions to innovative service-based economies, we expect the investment vehicles associated in FWDB to grow accordingly. Our investors are able to benefit from global diversification into the broader investable bond universe. Through a portfolio that provides diversification not based on market cap and a history of outperforming our benchmark, we are excited to see FWDB continue its mission of serving as a suitable option for those with a global investing mindset looking for a truly diversified and analysis-based return.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period June 21, 2011 to June 30, 2018
13
HISTORICAL PERFORMANCE
Total Return as of June 30, 2018
|
| 1 Year |
| 3 Year |
| 5 Year |
| Since Inception 6/21/2011 | ||||
AdvisorShares Madrona Global Bond ETF NAV |
| 1.55 | % |
| 3.84 | % |
| 3.53 | % |
| 3.33 | % |
AdvisorShares Madrona Global Bond ETF Market Price** |
| 1.47 | % |
| 3.83 | % |
| 3.59 | % |
| 3.32 | % |
Bloomberg Barclays U.S. Aggregate Bond Index |
| -0.40 | % |
| 1.72 | % |
| 2.27 | % |
| 2.48 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 1.22% and the net expense ratio is 0.95%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 0.95%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
____________
* Commencement of operations.
** The price used to calculate market return (“Market Price’’) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund.
Bloomberg Barclays U.S. Aggregate Bond Index measures the performance of the U.S. investment grade bond market. One cannot invest directly in an index.
14
ADVISORSHARES TRUST
AdvisorShares Madrona International ETF (FWDI)
For the 12-month period ended June 30th 2018, the AdvisorShares Madrona International ETF outperformed its benchmark. While the MSCI EAFE Index returned 6.84%, FWDI gained 12.39% in NAV and posted a Market Price Return of 12.42%. We believe that our work to seek out value for our investors has retained its course of success and are happy to see returns in excess of our benchmark. FWDI operates with a portfolio primarily composed of up to 200 of the largest American Depositary Receipts (ADRs) from among the largest issuers of Europe, Australasia and the Far East (EAFE) and Canada as well as other emerging markets.
Many factors can be attributed to the past 12-month performance of FWDI. Coordinated global growth continued alongside the U.S.’s gains from a lowered corporate tax rate and financial deregulation. However, tensions with North Korea and concerns over economic sanctions and trade wars weighed concerned global markets and led to a somewhat rocky start at the beginning of 2018. While the United States and North Korea have finally met in person, complete geopolitical tension has not been settled fully and may still linger into the months to come.
Looking forward, we are optimistic that a healthy global corporate climate will continue its route but are also cautious of risks that loom on the horizon. A trade war with China, a flattening yield curve, and geopolitical unrest across the globe could all surprise markets in the year ahead, and these events could slow the global economic engine that has been working together for investors. We expect our broad global diversification will mitigate some of these risks and allow us to benefit from rising tides that may come. We hope to continue our mission of being a suitable investment vehicle for those looking for a well-diversified global portfolio.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period June 21, 2011 to June 30, 2018
15
HISTORICAL PERFORMANCE
Total Return as of June 30, 2018
|
| 1 Year |
| 3 Year |
| 5 Year |
| Since Inception 6/21/2011 | ||||
AdvisorShares Madrona International ETF NAV |
| 12.39 | % |
| 4.66 | % |
| 6.50 | % |
| 4.22 | % |
AdvisorShares Madrona International ETF Market Price** |
| 12.42 | % |
| 4.68 | % |
| 6.53 | % |
| 4.22 | % |
MSCI EAFE Index (Net) |
| 6.84 | % |
| 4.90 | % |
| 6.44 | % |
| 5.49 | % |
BNY Mellon Classic ADR Index TR |
| 6.82 | % |
| 4.98 | % |
| 6.30 | % |
| 4.76 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 1.78% and the net expense ratio is 1.25%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 1.25%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
____________
* Commencement of operations.
** The price used to calculate market return (“Market Price’’) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund.
The MSCI EAFE Index (Net) is an unmanaged free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada. One cannot invest directly in an index.
The BNY Mellon Classic ADR Index TR combines the over the counter (OTC) traded ADRs with exchange- listed ADRs bringing transparency to the available universe of American Depositary Receipts, including those issued by many of the world’s premier companies. One cannot invest directly in an index.
16
ADVISORSHARES TRUST
AdvisorShares New Tech and Media ETF (FNG)
The AdvisorShares New Tech and Media ETF (FNG) debuted on July 11, 2017 and has gained both 6.01% on a NAV basis and 6.05% in Market Price Return from its launch through June 30, 2018 – with a high water mark of approximately 20% and a low of -0.98% in NAV during that span.
FNG is designed with a focus on securities that are among the high-performing technology and media leadership, which have a minimum beta of 1.2 and are designed to historically have outsized performance in both a rising market and a falling market.
A big switch for the FNG in 2018 was a change in portfolio construction where two core “FANG” names, Facebook and Alphabet, were deleted from the portfolio for lack of performance and long-term price growth. The Portfolio Manager continues to search for securities with above average growth and appreciation with a focus on en vogue technologies and future earnings growth potential.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period July 11, 2017 to June 30, 2018
17
HISTORICAL PERFORMANCE
Total Return as of June 30, 2018
|
| Since | |
AdvisorShares New Tech and Media ETF NAV |
| 6.01 | % |
AdvisorShares New Tech and Media ETF Market Price** |
| 6.05 | % |
S&P 500 Index |
| 14.20 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 0.97% and the net expense ratio is 0.82%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 0.85%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
____________
* Commencement of operations.
** The price used to calculate market return (“Market Price’’) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund.
The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks. One cannot invest directly in an index.
18
ADVISORSHARES TRUST
AdvisorShares Newfleet Multi-Sector Income ETF (MINC)
The AdvisorShares Newfleet Multi-Sector Income ETF (MINC) posted a return of 0.87%, based on NAV and 0.70%, based on Market Price as compared to -0.40% for the Bloomberg Barclays U.S. Aggregate Bond Index or -0.16% for the BofA Merrill Lynch 1-5 Year US Corporate & Government Bond Index for the 1-year period ended June 30th 2018. The indices mentioned are the two that are commonly referenced to compare MINC’s performance relative to that of the overall bond market.
MINC benefitted from being able to invest broadly across all of the sectors of the bond market rather than being restricted like the benchmarks, which allocated primarily to securities from the agency mortgage backed, US Government, and Investment Grade Sectors (comprising approximately 90% of the benchmark weighting). The three sectors that drove the bulk of the outperformance for MINC were Residential Mortgage Backed (RMBS), Leveraged Loan, and Asset Backed Sectors (ABS) which are heavy weights in the portfolio but relatively nonexistent in the benchmark. MINC secondarily benefitted from good issue selection within each of the sectors the portfolio was invested in.
In the short to intermediate term, we are constructive on the US economy and credit spread sectors in general which tend to perform well even when interest rates increase as the Fed is doing with its current policy. In particular, history has shown both leveraged loans and high yield as being two sectors that perform well in environments we currently find ourselves. The floating rate nature of structured sectors like Asset-Backed Securities and Residential Mortgage Backed Securities also tend to perform admirably in the face of rising rates thanks to their shorter durations and floating rate coupons. These sectors mentioned will feature heavily for the foreseeable future.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period March 19, 2013 to June 30, 2018
19
HISTORICAL PERFORMANCE
Total Return as of June 30, 2018
|
| 1 Year |
| 3 Year |
| 5 Year |
| Since Inception 3/19/2013 | ||||
AdvisorShares Newfleet Multi-Sector Income ETF NAV |
| 0.87 | % |
| 1.83 | % |
| 2.23 | % |
| 1.84 | % |
AdvisorShares Newfleet Multi-Sector Income ETF Market Price** |
| 0.70 | % |
| 1.82 | % |
| 2.21 | % |
| 1.81 | % |
BofA Merrill Lynch 1-5 Year US Corporate & Government Bond Index |
| -0.16 | % |
| 0.87 | % |
| 1.19 | % |
| 0.98 | % |
Bloomberg Barclays U.S. Aggregate Bond Index |
| -0.40 | % |
| 1.72 | % |
| 2.27 | % |
| 1.71 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 0.84% and the net expense ratio is 0.75%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 0.75%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
____________
* Commencement of operations.
** The price used to calculate market return (“Market Price’’) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund.
The BofA Merrill Lynch 1-5 Year US Corporate & Government Bond Index tracks the performance of US dollar denominated investment grade debt publicly issued in the US domestic market, including US Treasury, US agency, foreign government, supranational and corporate securities, with a remaining term to final maturity less than 5 years, calculated on a total return basis. One cannot invest directly in an index.
The Bloomberg Barclays U.S. Aggregate Bond Index measures the performance of the U.S. investment grade bond market. One cannot invest directly in an index.
20
ADVISORSHARES TRUST
AdvisorShares Pacific Asset Enhanced Floating Rate ETF (FLRT)
The AdvisorShares Pacific Asset Enhanced Floating Rate ETF (FLRT) returned 2.65% on a market price basis and 2.36% on a NAV basis for the year ended June 30, 2018, net of fees. The S&P/LSTA U.S. Leveraged Loan 100 Index gained 3.78%.
The bank loan market provided positive returns for the one-year period ended June 30, 2018. Loan sectors influenced by commodities led the way higher with Energy and Metals/Minerals related credits outperforming the remaining sectors of the index. Additionally, high yield bonds performed well in the back half of 2017, but have been met with resistance thus far in 2018. Weakness within the retail sector loan names detracted from performance as the sector continues to face a secular headwind.
As we enter the second half of 2018, economic growth continues to be positive, monetary policy remains accommodative (although gradually less so), and overall leverage among high-yield companies remains, for the most part, reasonable. Technical conditions remain favorable given robust CLO issuance and retail demand for floating rate yield. We continue to monitor tightening valuations within the bank loan market and maintain that balancing risks in the portfolio is vital. In looking ahead, we continue to believe flexibility and liquidity are critical at this juncture.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period February 18, 2015 to June 30, 2018
21
HISTORICAL PERFORMANCE
Total Return as of June 30, 2018
|
| 1 Year |
| 3 Year |
| Since Inception 2/18/2015 | |||
AdvisorShares Pacific Asset Enhanced Floating Rate ETF NAV |
| 2.36 | % |
| 2.94 | % |
| 2.76 | % |
AdvisorShares Pacific Asset Enhanced Floating Rate ETF Market Price** |
| 2.65 | % |
| 2.93 | % |
| 2.83 | % |
S&P/LSTA U.S. Leveraged Loan 100 Index |
| 3.78 | % |
| 3.72 | % |
| 3.43 | % |
S&P 500 Index |
| 14.37 | % |
| 11.93 | % |
| 10.25 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 1.62% and the net expense ratio is 1.10%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 1.10%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
____________
* Commencement of operations.
** The price used to calculate market return (“Market Price’’) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund.
The S&P/LSTA U.S. Leveraged Loan 100 Index is designed to track the market-weighted performance of the largest institutional leveraged loans based on market weightings, spreads and interest payments. One cannot invest directly in an index.
The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks. One cannot invest directly in an index.
Bank Loan: funds that invest primarily in floating-rate bank loans instead of bonds. In exchange for their credit risk, they offer high interest payments that typically float above a common short-term benchmark.
22
ADVISORSHARES TRUST
AdvisorShares Ranger Equity Bear ETF (HDGE)
For the 12-month period ended June 30, 2018, the NAV and market price return for the AdvisorShares Ranger Equity Bear ETF was -8.92% and -9.01% respectively. During this period, the S&P 500 returned 14.37%.
Performance was largely driven by stock selection. As the bull market has continued on, more and more companies have resorted to Non-GAAP measures of financial reporting. Companies that have displayed poor earnings quality and weak guidance have provided the opportunity to gain alpha shorting stocks as they underperform. In addition, the Fund avoided many high momentum market leaders which drove the performance of the S&P 500. Most notably the FAANG-type stocks.
The Fund’s outlook remains cautious about the broader markets. While price is near all-time highs, so are many valuation metrics. For example, the median price/sales ratio on the S&P 500 remains highly extended above the last two cycle peaks and at all-time highs. The beta of the portfolio remains high to provide an opportunity for downside capture in market declines. The Fund is near 100% exposure as market sentiment remains too optimistic.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period January 27, 2011 to June 30, 2018
23
HISTORICAL PERFORMANCE
Total Return as of June 30, 2018
|
| 1 Year |
| 3 Year |
| 5 Year |
| Since Inception 1/27/2011 | ||||
AdvisorShares Ranger Equity Bear ETF NAV |
| -8.92 | % |
| -10.50 | % |
| -13.57 | % |
| -14.52 | % |
AdvisorShares Ranger Equity Bear ETF Market Price** |
| -9.01 | % |
| -10.58 | % |
| -13.60 | % |
| -14.55 | % |
S&P 500 Index |
| 14.37 | % |
| 11.93 | % |
| 13.42 | % |
| 12.84 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) and net expense ratio is 2.52%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 1.85%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
____________
* Commencement of operations.
** The price used to calculate market return (“Market Price’’) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund.
The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks. One cannot invest directly in an index.
24
ADVISORSHARES TRUST
AdvisorShares Sage Core Reserves ETF (HOLD)
The AdvisorShares Sage Core Reserves ETF (NYSE Arca: HOLD) gained 1.38% NAV and 1.34% Market Price Return in the 12 months ended June 30, 2018, vs. 1.29% on the Bloomberg Barclays U.S. 1-3 Month Treasury Bill Index. This return is net of fees and calculated daily based on the NAV.
HOLD, a short duration cash alternative benefited primarily from excess carry realized through the holding of spread product, in both the corporate and securitized products space. The Fund’s largest sector weight is in corporate credit, which comprises nearly 60% of the fund. Within the corporate space, the Industrial and Financials subsectors are split nearly evenly at 30% apiece. Structured products represent nearly 30% of the fund, with asset-backed securities making up the preponderance of that space. There are also smaller allocations to US Treasuries and Agency CMO’s.
The story over the past several years has been that central bank policy has been the primary driver of returns. However, we now find ourselves in the middle of the Fed unwinding their balance sheet and hiking rates. This has resulted in a higher cost of capital through both higher rates and wider spreads. However, as rates have increased, the slope of the Treasury curve has flattened to levels not seen since 2007. What remains to be seen is what impact the flat Treasury curve will have on the Fed’s desire to hike rates over the next several years, and whether the higher cost of capital will weigh on economic growth.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period January 14, 2014 to June 30, 2018
25
HISTORICAL PERFORMANCE
Total Return as of June 30, 2018
|
| 1 Year |
| 3 Year |
| Since Inception 1/14/2014 | |||
AdvisorShares Sage Core Reserves ETF NAV |
| 1.38 | % |
| 1.10 | % |
| 0.76 | % |
AdvisorShares Sage Core Reserves ETF Market Price** |
| 1.34 | % |
| 1.08 | % |
| 0.76 | % |
Bloomberg Barclays U.S. 1-3 Month Treasury Bill Index |
| 1.29 | % |
| 0.62 | % |
| 0.43 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 0.65% and the net expense ratio is 0.35%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 0.35%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
____________
* Commencement of operations.
** The price used to calculate market return (“Market Price’’) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund.
The Bloomberg Barclays U.S. 1-3 Month Treasury Bill Index includes all publicly issued zero-coupon U.S. Treasury Bills that have a remaining maturity of less than 3 months and more than 1 month, are rated investment grade, and have $250 million or more of outstanding face value. The Bloomberg Barclays U.S. 1-3 Month Treasury Bill Index is an unmanaged index considered representative of the performance of the U.S. Treasury Bill issued by the U.S. Government. One cannot invest directly in an index.
26
ADVISORSHARES TRUST
AdvisorShares STAR Global Buy-Write ETF (VEGA)
The AdvisorShares STAR Global Buy-Write ETF (VEGA) was up 6.41% based on the NAV (6.45% Market Price Return) for the 1-year performance ended June 30th 2018. It slightly underperformed its benchmark, which was up 6.99%. VEGA ETF’s benchmark is made up of 37.5% MSCI World Index, 37.5% CBOE S&P 500 BuyWrite Index and 25% Bloomberg Barclays Intermediate US Gov/Credit Bond Index. The component parts of the benchmark had the following contributory performance 11.09%, 7.28% and -0.58%, respectively.
The VEGA ETF’s primary contribution in performance is our U.S. Equity holdings, specifically iShares Russell 2000 ETF (IWM), SPDR S&P 500 ETF (SPY) and Financial Select Sector SPDR Fund (XLF). Additionally, our other non-U.S. equity holdings performed well which included XTrackers MSCI Europe Hedged Equity (DBEU), iShares MSCI Emerging Markets ETF (EEM) and iShares MSCI EAFE ETF (EFA). Primary detractors were Fixed Income, specifically Vanguard Intermediate-Term Bond (BIV) and SPDR Doubleline Total Return Tactical ETF (TOTL). During this period, Covered Call provided minimal contribution as Covered Calls are primarily sold on SPY, EFA and EEM; all of which experienced appreciation, sometimes beyond VEGA ETF’s set strikes. Protection Puts were detractors during the period as the move opposite of the underlying, in this case the SPY, which had good performance during the period. iShares MSCI Emerging Markets ETF (EEM) was removed during the period in early June 2018, sighting a need to clarity in the region before reinvesting. Proceeds from the elimination of EEM were left in cash.
The VEGA ETF continues to provide a tactical global-exposure portfolio with an option overlay component. The U.S. Bull market may be at an inflection point, Non-U.S. Developed continues to struggle and Emerging Markets may be in turmoil based on U.S. rate hike increases. There is potential to see volatility increase as Quantitative Tightening ramps up in 2018. This uncertainty in the market plays to VEGA’s strength in option overlay, as volatility is the primary pricing mechanism for options pricing.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period September 17, 2012 to June 30, 2018
27
HISTORICAL PERFORMANCE
Total Return as of June 30, 2018
|
| 1 Year |
| 3 Year |
| 5 Year |
| Since Inception 9/17/2012 | ||||
AdvisorShares STAR Global Buy-Write ETF NAV |
| 6.41 | % |
| 5.51 | % |
| 5.77 | % |
| 4.08 | % |
AdvisorShares STAR Global Buy-Write ETF Market Price** |
| 6.45 | % |
| 5.52 | % |
| 5.77 | % |
| 4.08 | % |
MSCI World Index (Net) |
| 11.09 | % |
| 8.48 | % |
| 9.94 | % |
| 10.12 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 2.18% and the net expense ratio is 1.85%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 1.85%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
____________
* Commencement of operations.
** The price used to calculate market return (“Market Price’’) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund.
The MSCI World Index (Net) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. One cannot invest directly in an index.
28
ADVISORSHARES TRUST
AdvisorShares Vice ETF (ACT)
The AdvisorShares Vice ETF (ACT) was launched with an inception date of December 12, 2017 and therefore does not have a full 12-month period of performance. For the partial period of December 12, 2017 through June 30, 2018, the Fund gained 2.89% based on market return and 2.58% based on Net Asset Value. During the same timeframe, the Standard & Poor’s 500 Index returned just slightly more at 3.10%.
The Fund’s performance was mostly based on individual stock selection and weighting. AdvisorShares Vice ETF focuses primarily on alcohol, tobacco and cannabis-related stocks. Since inception in the past year, top contributors to performance have included both restaurant / bar companies included for their alcohol sales and some alcohol producers, a few smaller capitalization tobacco-related companies, and some pharmaceuticals included as cannabis-related. On the other hand, primary drags to performance also included some alcohol producers, some of the largest tobacco companies, and one pharmaceutical.
While the overall market has been in an extended bull market, in the past year the market has been driven mainly by momentum in a handful of technology-related stocks. In the coming year, we think the market may lack true direction. In negative or stagnant markets, alcohol and tobacco stocks can often look attractive and show their “market-resistant” qualities. We are always keeping a close eye on cannabis-related developments of all types and are cautiously optimistic about the legal future. In the short term, we feel most cannabis stocks are quite over-priced and not attractive. Regardless, we do not invest in direct cannabis growers under current Federal law. In the long term, we feel there may be major breakthroughs and our investable universe of stocks will grow.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period December 12, 2017 to June 30, 2018
29
HISTORICAL PERFORMANCE
Total Return as of June 30, 2018
|
| Since | |
AdvisorShares VICE ETF NAV |
| 2.58 | % |
AdvisorShares VICE ETF Market Price** |
| 2.89 | % |
S&P 500 Index |
| 3.10 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 2.18% and the net expense ratio is 0.75%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 0.75%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
____________
* Commencement of operations.
** The price used to calculate market return (“Market Price’’) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund.
The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks. One cannot invest directly in an index.
30
ADVISORSHARES TRUST
AdvisorShares Wilshire Buyback ETF (TTFS)
The AdvisorShares Wilshire Buyback ETF (NYSE Arca: TTFS) returned a NAV of 3.15% and a market price of 3.26%, significantly underperforming the benchmark Wilshire US Large Cap Index, which returned 14.42%, for the year ended June 30, 2018. The Fund seeks to achieve its performance objective by investing in stocks that are currently reducing the amount of floated shares through share buybacks while meeting specific debt and free cash flow criteria.
Buyback activity has clearly not been rewarded by the market over the past year even as companies which engage in share buybacks are typically more attractively valued. During this period of time, we witnessed significant underperformance of value vs. growth stocks as the Wilshire US Large Cap Value Index returned 9.37%, while the Wilshire US Large Cap Growth Index returned 19.67%. Given our investment approach, the Fund has been largely underweight Information Technology stocks, which represented the largest negative contribution to underperformance for the year. At the same time, the share buyback activity in cyclically sensitive sectors led to an overweight in Industrials, Consumer Discretionary, and Financials, which all meaningfully underperformed technology stocks.
We believe that the US equity market is now being driven by momentum and sentiment, as opposed to valuations, and we expect that when this trend reverses, our portfolio should perform well. We are witnessing a material flattening of the US yield curve, very narrow yield spreads in high yield bonds relative to Treasuries, and stretched valuations in equities. Historically speaking, the alignment of these indicators have typically been a precursor to a challenging market environment. We take comfort in knowing that the Fund currently trades at a meaningfully cheaper valuation than the Index with a forward P/E of 13.35 vs. 16.65 for the Index. On a cash flow basis, the Fund’s price-free-cash-flow (P/FCF) is 14.02 vs. 23.25, substantially cheaper than the Index. Given this dispersion in valuations, we believe that value stocks provide more margin of safety and more total return potential relative to growth stocks. We remain confident in our investment process; we will continue to keep you apprised with insights on our portfolio and results.
HYPOTHETICAL GROWTH OF $10,000 INVESTMENT
For the period October 4, 2011 to June 30, 2018
31
HISTORICAL PERFORMANCE
Total Return as of June 30, 2018
|
| 1 Year |
| 3 Year |
| 5 Year |
| Since Inception 10/4/2011 | ||||
AdvisorShares Wilshire Buyback ETF NAV |
| 3.15 | % |
| 6.86 | % |
| 11.35 | % |
| 15.94 | % |
AdvisorShares Wilshire Buyback ETF Market Price** |
| 3.26 | % |
| 6.87 | % |
| 11.31 | % |
| 15.94 | % |
Russell 3000 Index |
| 14.78 | % |
| 11.58 | % |
| 13.29 | % |
| 16.48 | % |
Wilshire US Large Cap Index |
| 14.42 | % |
| 12.00 | % |
| 13.47 | % |
| 16.41 | % |
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Fund NAV returns are calculated using the Fund’s daily 4:00 p.m. NAV. Returns shown include the reinvestment of all dividends and other distributions. Index returns do not include expenses. As stated in the current prospectus, the Fund’s annual operating expense ratio (gross) is 1.07% and the net expense ratio is 0.87%. (Actual expenses can be referenced in the Financial Highlights section later in this report.) The Fund’s advisor has agreed to waive a portion of its fees and/or reimburse expenses to the extent necessary to keep the Fund’s expenses from exceeding 0.90%. Returns less than one year are not annualized. The performance table and graph do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. For the Fund’s most recent month end performance, please call 1-877-843-3831.
____________
* Commencement of operations.
** The price used to calculate market return (“Market Price’’) is determined by using the closing price listed on the NYSE Arca and does not represent returns an investor would receive if shares were traded at other times. Total returns are calculated using the daily 4:00pm midpoint between the bid and offer. Shares are bought and sold at market price, not NAV and are not individually redeemed from the Fund.
The Russell 3000 Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market. One cannot invest directly in an index.
The Wilshire US Large Cap Index is a float-adjusted, market capitalization-weighted index of the issues ranked above 750 market capitalization of the Wilshire 5000 Total Market IndexSM (Wilshire 5000®). One cannot invest directly in an index.
32
ADVISORSHARES TRUST
Shareholder Expense Examples
As a shareholder of the Fund, you incur transaction cost and ongoing costs, including management fees and other Fund expenses. The following example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds. The examples are based on an initial investment of $1,000 invested at January 1, 2018 and held for the period ended June 30, 2018.
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 1/1/2018 |
| Ending Account Value 6/30/2018 |
| Annualized Expense Ratio for |
| Expenses Paid(1) | |
AdvisorShares Cornerstone Small Cap ETF |
|
|
|
|
|
|
|
|
|
Actual |
| $1,000.00 |
| $1,119.50 |
| 0.90 | % |
| $4.73 |
Hypothetical (assuming a 5% return |
| $1,000.00 |
| $1,020.33 |
| 0.90 | % |
| $4.51 |
AdvisorShares Dorsey Wright ADR ETF |
|
|
|
|
|
|
|
|
|
Actual |
| $1,000.00 |
| $ 913.60 |
| 0.95 | % |
| $4.51 |
Hypothetical (assuming a 5% return |
| $1,000.00 |
| $1,020.08 |
| 0.95 | % |
| $4.76 |
AdvisorShares Focused Equity ETF |
|
|
|
|
|
|
|
|
|
Actual |
| $1,000.00 |
| $1,019.00 |
| 0.66 | % |
| $3.30 |
Hypothetical (assuming a 5% return |
| $1,000.00 |
| $1,021.52 |
| 0.66 | % |
| $3.31 |
AdvisorShares KIM Korea Equity ETF |
|
|
|
|
|
|
|
|
|
Actual |
| $1,000.00 |
| $ 907.30 |
| 0.99 | % |
| $4.68 |
Hypothetical (assuming a 5% return |
| $1,000.00 |
| $1,019.89 |
| 0.99 | % |
| $4.96 |
33
ADVISORSHARES TRUST
Shareholder Expense Examples (continued)
Fund Name |
| Beginning Account Value 1/1/2018 |
| Ending Account Value 6/30/2018 |
| Annualized Expense Ratio for |
| Expenses Paid(1) | |
AdvisorShares Madrona Domestic ETF |
|
|
|
|
|
|
|
|
|
Actual |
| $1,000.00 |
| $ 995.90 |
| 1.25 | % |
| $6.19 |
Hypothetical (assuming a 5% return |
| $1,000.00 |
| $1,018.60 |
| 1.25 | % |
| $6.26 |
AdvisorShares Madrona Global Bond ETF |
|
|
|
|
|
|
|
|
|
Actual |
| $1,000.00 |
| $ 991.20 |
| 0.95 | % |
| $4.69 |
Hypothetical (assuming a 5% return |
| $1,000.00 |
| $1,020.08 |
| 0.95 | % |
| $4.76 |
AdvisorShares Madrona International ETF |
|
|
|
|
|
|
|
|
|
Actual |
| $1,000.00 |
| $ 977.10 |
| 1.25 | % |
| $6.13 |
Hypothetical (assuming a 5% return |
| $1,000.00 |
| $1,018.60 |
| 1.25 | % |
| $6.26 |
AdvisorShares New Tech and Media ETF |
|
|
|
|
|
|
|
|
|
Actual |
| $1,000.00 |
| $ 989.10 |
| 0.80 | % |
| $3.95 |
Hypothetical (assuming a 5% return before expenses) |
| $1,000.00 |
| $1,020.83 |
| 0.80 | % |
| $4.01 |
AdvisorShares Newfleet Multi-Sector Income ETF |
|
|
|
|
|
|
|
|
|
Actual |
| $1,000.00 |
| $1,000.40 |
| 0.75 | % |
| $3.72 |
Hypothetical (assuming a 5% return |
| $1,000.00 |
| $1,021.08 |
| 0.75 | % |
| $3.76 |
AdvisorShares Pacific Asset Enhanced Floating Rate ETF |
|
|
|
|
|
|
|
|
|
Actual |
| $1,000.00 |
| $1,012.90 |
| 1.10 | % |
| $5.49 |
Hypothetical (assuming a 5% return |
| $1,000.00 |
| $1,019.34 |
| 1.10 | % |
| $5.51 |
AdvisorShares Ranger Equity Bear ETF |
|
|
|
|
|
|
|
|
|
Actual |
| $1,000.00 |
| $ 991.70 |
| 1.73 | % |
| $8.54 |
Hypothetical (assuming a 5% return |
| $1,000.00 |
| $1,016.22 |
| 1.73 | % |
| $8.65 |
AdvisorShares Sage Core Reserves ETF |
|
|
|
|
|
|
|
|
|
Actual |
| $1,000.00 |
| $1,007.80 |
| 0.35 | % |
| $1.74 |
Hypothetical (assuming a 5% return |
| $1,000.00 |
| $1,023.06 |
| 0.35 | % |
| $1.76 |
AdvisorShares STAR Global Buy-Write ETF |
|
|
|
|
|
|
|
|
|
Actual |
| $1,000.00 |
| $1,005.30 |
| 1.85 | % |
| $9.20 |
Hypothetical (assuming a 5% return |
| $1,000.00 |
| $1,015.62 |
| 1.85 | % |
| $9.25 |
AdvisorShares Vice ETF |
|
|
|
|
|
|
|
|
|
Actual |
| $1,000.00 |
| $ 978.80 |
| 0.75 | % |
| $3.68 |
Hypothetical (assuming a 5% return |
| $1,000.00 |
| $1,021.08 |
| 0.75 | % |
| $3.76 |
AdvisorShares Wilshire Buyback ETF |
|
|
|
|
|
|
|
|
|
Actual |
| $1,000.00 |
| $ 952.70 |
| 0.84 | % |
| $4.07 |
Hypothetical (assuming a 5% return |
| $1,000.00 |
| $1,020.63 |
| 0.84 | % |
| $4.21 |
____________
(1) Expenses are calculated using each Fund’s annualized expense ratio, multiplied by the average account value for the period, multiplied by 181/365 (to reflect the six-month period).
34
ADVISORSHARES CORNERSTONE SMALL CAP ETF
Schedule of Investments
June 30, 2018
Investments |
| Shares |
| Value | |
COMMON STOCKS — 99.4% |
|
|
|
|
|
|
|
|
|
|
|
Agriculture — 0.4% |
|
|
|
|
|
Phibro Animal Health Corp., Class A |
| 506 |
| $ | 23,301 |
|
|
|
|
|
|
Airlines — 1.0% |
|
|
|
|
|
SkyWest, Inc. |
| 1,046 |
|
| 54,287 |
|
|
|
|
|
|
Apparel — 0.5% |
|
|
|
|
|
Deckers Outdoor Corp.*(a) |
| 215 |
|
| 24,271 |
|
|
|
|
|
|
Auto Manufacturers — 0.3% |
|
|
|
|
|
Wabash National Corp. |
| 955 |
|
| 17,820 |
|
|
|
|
|
|
Auto Parts & Equipment — 1.0% |
|
|
|
|
|
Modine Manufacturing Co.* |
| 1,019 |
|
| 18,597 |
Spartan Motors, Inc. |
| 1,155 |
|
| 17,440 |
Titan International, Inc. |
| 1,527 |
|
| 16,385 |
Total Auto Parts & Equipment |
|
|
|
| 52,422 |
|
|
|
|
|
|
Banks — 5.1% |
|
|
|
|
|
Blue Hills Bancorp, Inc. |
| 821 |
|
| 18,226 |
Community Trust Bancorp, Inc. |
| 436 |
|
| 21,778 |
Eagle Bancorp, Inc.* |
| 549 |
|
| 33,654 |
First BanCorp (Puerto Rico)* |
| 2,319 |
|
| 17,740 |
First Bancorp/Southern Pines NC |
| 523 |
|
| 21,396 |
First Commonwealth Financial Corp. |
| 1,273 |
|
| 19,744 |
First Mid-Illinois Bancshares, Inc. |
| 426 |
|
| 16,742 |
Fulton Financial Corp. |
| 813 |
|
| 13,415 |
Heritage Commerce Corp. |
| 1,154 |
|
| 19,607 |
National Bank Holdings Corp., Class A |
| 477 |
|
| 18,407 |
OFG Bancorp (Puerto Rico) |
| 1,274 |
|
| 17,900 |
Old Second Bancorp, Inc. |
| 1,290 |
|
| 18,576 |
TriState Capital Holdings, Inc.* |
| 1,094 |
|
| 28,553 |
Total Banks |
|
|
|
| 265,738 |
|
|
|
|
|
|
Beverages — 0.3% |
|
|
|
|
|
Boston Beer Co., Inc. (The), |
| 59 |
|
| 17,682 |
|
|
|
|
|
|
Biotechnology — 1.4% |
|
|
|
|
|
ANI Pharmaceuticals, Inc.*(a) |
| 341 |
|
| 22,779 |
Myriad Genetics, Inc.*(a) |
| 658 |
|
| 24,589 |
NuCana PLC (United Kingdom)*(a)(b) |
| 670 |
|
| 12,730 |
PDL BioPharma, Inc.* |
| 6,084 |
|
| 14,237 |
Total Biotechnology |
|
|
|
| 74,335 |
|
|
|
|
|
|
Building Materials — 1.9% |
|
|
|
|
|
American Woodmark Corp.* |
| 194 |
|
| 17,761 |
Cree, Inc.*(a) |
| 408 |
|
| 16,961 |
Gibraltar Industries, Inc.*(a) |
| 587 |
|
| 22,012 |
Investments |
| Shares |
| Value | |
COMMON STOCKS (continued) |
|
|
| ||
|
|
|
|
|
|
Building Materials (continued) |
|
|
|
|
|
PGT Innovations, Inc.* |
| 1,060 |
| $ | 22,101 |
Quanex Building Products Corp. |
| 1,052 |
|
| 18,883 |
Total Building Materials |
|
|
|
| 97,718 |
|
|
|
|
|
|
Chemicals — 1.4% |
|
|
|
|
|
Balchem Corp. |
| 189 |
|
| 18,549 |
Innospec, Inc. |
| 221 |
|
| 16,918 |
Koppers Holdings, Inc.* |
| 364 |
|
| 13,959 |
Kronos Worldwide, Inc. |
| 1,040 |
|
| 23,431 |
Total Chemicals |
|
|
|
| 72,857 |
|
|
|
|
|
|
Coal — 0.5% |
|
|
|
|
|
SunCoke Energy, Inc.* |
| 1,826 |
|
| 24,468 |
|
|
|
|
|
|
Commercial Services — 8.0% |
|
|
|
|
|
Adtalem Global Education, Inc.* |
| 280 |
|
| 13,468 |
Alarm.com Holdings, Inc.*(a) |
| 507 |
|
| 20,473 |
American Public Education, Inc.* |
| 467 |
|
| 19,661 |
Barrett Business Services, Inc. |
| 210 |
|
| 20,280 |
Care.com, Inc.* |
| 914 |
|
| 19,084 |
Career Education Corp.* |
| 1,294 |
|
| 20,924 |
CRA International, Inc. |
| 383 |
|
| 19,491 |
Deluxe Corp. |
| 259 |
|
| 17,148 |
EVERTEC, Inc. (Puerto Rico) |
| 850 |
|
| 18,572 |
Green Dot Corp., Class A* |
| 496 |
|
| 36,401 |
Heidrick & Struggles International, Inc. |
| 472 |
|
| 16,520 |
HMS Holdings Corp.* |
| 869 |
|
| 18,788 |
Insperity, Inc. |
| 776 |
|
| 73,914 |
Kelly Services, Inc., Class A |
| 636 |
|
| 14,278 |
McGrath RentCorp |
| 367 |
|
| 23,220 |
Paylocity Holding Corp.* |
| 441 |
|
| 25,957 |
Resources Connection, Inc. |
| 1,224 |
|
| 20,686 |
Textainer Group Holdings Ltd.*(a) |
| 1,014 |
|
| 16,123 |
Total Commercial Services |
|
|
|
| 414,988 |
|
|
|
|
|
|
Computers — 2.1% |
|
|
|
|
|
Carbonite, Inc.*(a) |
| 1,071 |
|
| 37,378 |
Insight Enterprises, Inc.* |
| 451 |
|
| 22,068 |
Qualys, Inc.* |
| 351 |
|
| 29,589 |
Varonis Systems, Inc.* |
| 248 |
|
| 18,476 |
Total Computers |
|
|
|
| 107,511 |
|
|
|
| ||
Cosmetics/Personal Care — 0.4% |
|
| |||
Inter Parfums, Inc. |
| 358 |
|
| 19,153 |
|
|
|
|
See accompanying Notes to Financial Statements.
35
ADVISORSHARES CORNERSTONE SMALL CAP ETF
Schedule of Investments (continued)
June 30, 2018
Investments |
| Shares |
| Value | |
COMMON STOCKS (continued) |
|
|
| ||
|
|
|
| ||
Distribution/Wholesale — 1.1% |
|
|
| ||
Systemax, Inc. |
| 888 |
| $ | 30,485 |
Titan Machinery, Inc.* |
| 866 |
|
| 13,466 |
Triton International Ltd. (Bermuda) |
| 489 |
|
| 14,993 |
Total Distribution/Wholesale |
|
|
|
| 58,944 |
|
|
|
| ||
Diversified Financial Services — 1.4% |
|
| |||
America First Multifamily Investors LP |
| 2,922 |
|
| 18,555 |
Encore Capital Group, Inc.*(a) |
| 435 |
|
| 15,921 |
Navient Corp. |
| 1,518 |
|
| 19,779 |
WageWorks, Inc.*(a) |
| 318 |
|
| 15,900 |
Total Diversified Financial Services |
|
|
|
| 70,155 |
|
|
|
| ||
Electric — 0.7% |
|
|
|
|
|
Ameresco, Inc., Class A* |
| 1,622 |
|
| 19,464 |
PNM Resources, Inc. |
| 475 |
|
| 18,477 |
Total Electric |
|
|
|
| 37,941 |
|
|
|
| ||
Electrical Components & Equipment — 0.8% | |||||
Encore Wire Corp. |
| 355 |
|
| 16,845 |
Energizer Holdings, Inc.(a) |
| 380 |
|
| 23,925 |
Total Electrical Components & Equipment |
|
|
|
| 40,770 |
|
|
|
| ||
Electronics — 4.2% |
|
|
|
|
|
Brady Corp., Class A |
| 453 |
|
| 17,463 |
Control4 Corp.*(a) |
| 1,100 |
|
| 26,741 |
CTS Corp. |
| 798 |
|
| 28,728 |
ESCO Technologies, Inc. |
| 335 |
|
| 19,330 |
FARO Technologies, Inc.* |
| 323 |
|
| 17,555 |
KEMET Corp.* |
| 1,070 |
|
| 25,841 |
Methode Electronics, Inc. |
| 424 |
|
| 17,087 |
Rogers Corp.* |
| 105 |
|
| 11,703 |
Stoneridge, Inc.* |
| 992 |
|
| 34,859 |
Vishay Intertechnology, Inc. |
| 872 |
|
| 20,230 |
Total Electronics |
|
|
|
| 219,537 |
|
|
|
|
|
|
Energy – Alternate Sources — 0.8% |
|
| |||
Sunrun, Inc.*(a) |
| 2,971 |
|
| 39,069 |
|
|
|
|
|
|
Engineering & Construction — 0.5% |
|
| |||
Exponent, Inc. |
| 560 |
|
| 27,048 |
|
|
|
|
|
|
Entertainment — 1.1% |
|
|
|
|
|
Marriott Vacations Worldwide Corp.(a) |
| 280 |
|
| 31,629 |
Penn National Gaming, Inc.* |
| 733 |
|
| 24,621 |
Total Entertainment |
|
|
|
| 56,250 |
|
|
|
|
|
|
Investments |
| Shares |
| Value | |
COMMON STOCKS (continued) |
|
|
| ||
|
|
|
|
|
|
Food — 1.8% |
|
|
|
|
|
Darling Ingredients, Inc.* |
| 1,140 |
| $ | 22,663 |
Fresh Del Monte Produce, Inc. |
| 390 |
|
| 17,375 |
Sanderson Farms, Inc. |
| 178 |
|
| 18,717 |
Sprouts Farmers Market, Inc.* |
| 803 |
|
| 17,722 |
United Natural Foods, Inc.*(a) |
| 461 |
|
| 19,666 |
Total Food |
|
|
|
| 96,143 |
|
|
|
|
|
|
Forest Products & Paper — 0.4% |
|
| |||
Resolute Forest Products, Inc.* |
| 1,943 |
|
| 20,110 |
|
|
|
|
|
|
Gas — 0.4% |
|
|
|
|
|
New Jersey Resources Corp. |
| 423 |
|
| 18,929 |
|
|
|
|
|
|
Hand/Machine Tools — 0.3% |
|
|
|
|
|
Kennametal, Inc.(a) |
| 496 |
|
| 17,806 |
|
|
|
|
|
|
Healthcare – Products — 4.6% |
|
|
| ||
Cardiovascular Systems, Inc.* |
| 630 |
|
| 20,374 |
CONMED Corp. |
| 310 |
|
| 22,692 |
Inogen, Inc.* |
| 270 |
|
| 50,309 |
LeMaitre Vascular, Inc. |
| 825 |
|
| 27,621 |
Luminex Corp. |
| 651 |
|
| 19,224 |
Merit Medical Systems, Inc.*(a) |
| 846 |
|
| 43,315 |
NuVasive, Inc.* |
| 388 |
|
| 20,223 |
Tactile Systems Technology, Inc.*(a) |
| 662 |
|
| 34,424 |
Total Healthcare – Products |
|
|
|
| 238,182 |
|
|
|
|
|
|
Healthcare – Services — 2.8% |
|
| |||
Amedisys, Inc.* |
| 325 |
|
| 27,775 |
Ensign Group, Inc. (The) |
| 737 |
|
| 26,399 |
LHC Group, Inc.* |
| 322 |
|
| 27,560 |
Providence Service Corp. (The)* |
| 245 |
|
| 19,245 |
Tivity Health, Inc.*(a) |
| 582 |
|
| 20,486 |
Triple-S Management Corp., Class B (Puerto Rico)* |
| 677 |
|
| 26,444 |
Total Healthcare – Services |
|
|
|
| 147,909 |
|
|
|
|
|
|
Household Products/Wares — 0.9% |
|
| |||
ACCO Brands Corp. |
| 1,208 |
|
| 16,731 |
Central Garden & Pet Co.*(a) |
| 706 |
|
| 30,697 |
Total Household Products/Wares |
|
|
|
| 47,428 |
|
|
|
|
|
|
Insurance — 2.2% |
|
|
|
|
|
CNO Financial Group, Inc. |
| 897 |
|
| 17,079 |
eHealth, Inc.* |
| 878 |
|
| 19,404 |
FGL Holdings* |
| 2,073 |
|
| 17,392 |
Health Insurance Innovations, Inc., Class A* |
| 569 |
|
| 18,407 |
Kemper Corp.(a) |
| 328 |
|
| 24,813 |
NMI Holdings, Inc., Class A* |
| 1,069 |
|
| 17,425 |
Total Insurance |
|
|
|
| 114,520 |
See accompanying Notes to Financial Statements.
36
ADVISORSHARES CORNERSTONE SMALL CAP ETF
Schedule of Investments (continued)
June 30, 2018
Investments |
| Shares |
| Value | |
COMMON STOCKS (continued) |
|
|
| ||
|
|
|
|
|
|
Internet — 6.2% |
|
|
|
|
|
21Vianet Group, Inc. (China)*(b) |
| 2,304 |
| $ | 22,349 |
8x8, Inc.* |
| 1,010 |
|
| 20,250 |
Bandwidth, Inc., Class A* |
| 615 |
|
| 23,358 |
Blucora, Inc.* |
| 690 |
|
| 25,530 |
Cargurus, Inc.* |
| 574 |
|
| 19,941 |
ChannelAdvisor Corp.* |
| 1,272 |
|
| 17,872 |
Etsy, Inc.* |
| 627 |
|
| 26,453 |
FireEye, Inc.*(a) |
| 1,152 |
|
| 17,729 |
HealthStream, Inc. |
| 665 |
|
| 18,161 |
Limelight Networks, Inc.* |
| 4,649 |
|
| 20,781 |
New Media Investment Group, Inc. |
| 1,106 |
|
| 20,439 |
Perficient, Inc.* |
| 859 |
|
| 22,652 |
QuinStreet, Inc.* |
| 1,387 |
|
| 17,615 |
Shutterfly, Inc.*(a) |
| 236 |
|
| 21,247 |
XO Group, Inc.* |
| 877 |
|
| 28,064 |
Total Internet |
|
|
|
| 322,441 |
|
|
|
|
|
|
Iron/Steel — 0.5% |
|
|
|
|
|
Schnitzer Steel Industries, Inc., |
| 746 |
|
| 25,140 |
|
|
|
|
|
|
Leisure Time — 1.3% |
|
|
|
|
|
Callaway Golf Co.(a) |
| 1,116 |
|
| 21,171 |
Fox Factory Holding Corp.* |
| 616 |
|
| 28,675 |
LCI Industries(a) |
| 210 |
|
| 18,931 |
Total Leisure Time |
|
|
|
| 68,777 |
|
|
|
|
|
|
Lodging — 1.2% |
|
|
|
|
|
Bluegreen Vacations Corp.(a) |
| 920 |
|
| 21,896 |
Marcus Corp. (The) |
| 428 |
|
| 13,910 |
Monarch Casino & Resort, Inc.* |
| 550 |
|
| 24,228 |
Total Lodging |
|
|
|
| 60,034 |
|
|
|
|
|
|
Machinery – Diversified — 1.2% |
|
|
|
|
|
Alamo Group, Inc. |
| 221 |
|
| 19,970 |
Chart Industries, Inc.*(a) |
| 458 |
|
| 28,249 |
Kadant, Inc. |
| 165 |
|
| 15,865 |
Total Machinery – Diversified |
|
|
|
| 64,084 |
|
|
|
|
|
|
Media — 0.3% |
|
|
|
|
|
Gannett Co., Inc.(a) |
| 1,658 |
|
| 17,741 |
|
|
|
|
|
|
Mining — 0.5% |
|
|
|
|
|
Materion Corp. |
| 343 |
|
| 18,573 |
U.S. Silica Holdings, Inc.(a) |
| 372 |
|
| 9,557 |
Total Mining |
|
|
|
| 28,130 |
|
|
|
|
|
|
Investments |
| Shares |
| Value | |
COMMON STOCKS (continued) |
|
|
| ||
|
|
|
|
|
|
Miscellaneous Manufacturing — 2.5% |
|
| |||
Axon Enterprise, Inc.* |
| 304 |
| $ | 19,207 |
EnPro Industries, Inc. |
| 212 |
|
| 14,829 |
Federal Signal Corp. |
| 758 |
|
| 17,654 |
Harsco Corp.* |
| 1,311 |
|
| 28,973 |
John Bean Technologies Corp. |
| 351 |
|
| 31,204 |
Myers Industries, Inc. |
| 983 |
|
| 18,874 |
Total Miscellaneous Manufacturing |
|
|
|
| 130,741 |
|
|
|
|
|
|
Office Furnishings — 0.4% |
|
|
|
|
|
Interface, Inc. |
| 800 |
|
| 18,360 |
|
|
|
|
|
|
Oil & Gas — 4.6% |
|
|
|
|
|
CNX Resources Corp.* |
| 1,257 |
|
| 22,350 |
CVR Energy, Inc.(a) |
| 564 |
|
| 20,862 |
Denbury Resources, Inc.*(a) |
| 10,307 |
|
| 49,577 |
HighPoint Resources Corp.*(a) |
| 4,003 |
|
| 24,338 |
Oasis Petroleum, Inc.*(a) |
| 1,818 |
|
| 23,580 |
PDC Energy, Inc.*(a) |
| 266 |
|
| 16,080 |
Penn Virginia Corp.* |
| 305 |
|
| 25,891 |
SM Energy Co.(a) |
| 705 |
|
| 18,111 |
Talos Energy, Inc.* |
| 531 |
|
| 17,061 |
Whiting Petroleum Corp.* |
| 367 |
|
| 19,348 |
Total Oil & Gas |
|
|
|
| 237,198 |
|
|
|
|
|
|
Oil & Gas Services — 1.9% |
|
|
|
|
|
Archrock, Inc. |
| 2,241 |
|
| 26,892 |
McDermott International, Inc.*(a) |
| 889 |
|
| 17,469 |
NOW, Inc.*(a) |
| 1,261 |
|
| 16,809 |
Oil States International, Inc.*(a) |
| 506 |
|
| 16,243 |
SEACOR Holdings, Inc.*(a) |
| 348 |
|
| 19,930 |
Total Oil & Gas Services |
|
|
|
| 97,343 |
|
|
|
|
|
|
Packaging & Containers — 0.4% |
|
|
|
|
|
Greif, Inc., Class A |
| 388 |
|
| 20,521 |
|
|
|
|
|
|
Pharmaceuticals — 0.9% |
|
|
|
|
|
Enanta Pharmaceuticals, Inc.* |
| 419 |
|
| 48,562 |
|
|
|
|
|
|
Private Equity — 0.2% |
|
|
|
|
|
Kennedy-Wilson Holdings, Inc. |
| 541 |
|
| 11,442 |
|
|
|
|
|
|
Real Estate — 0.3% |
|
|
|
|
|
HFF, Inc., Class A |
| 410 |
|
| 14,084 |
|
|
|
|
|
|
REITS — 7.1% |
|
|
|
|
|
Acadia Realty Trust |
| 603 |
|
| 16,504 |
AG Mortgage Investment Trust, Inc. |
| 925 |
|
| 17,381 |
Agree Realty Corp. |
| 399 |
|
| 21,055 |
|
|
|
|
|
|
See accompanying Notes to Financial Statements.
37
ADVISORSHARES CORNERSTONE SMALL CAP ETF
Schedule of Investments (continued)
June 30, 2018
Investments |
| Shares |
| Value | |
COMMON STOCKS (continued) |
|
|
| ||
|
|
|
|
|
|
REITS (continued) |
|
|
|
|
|
Brandywine Realty Trust |
| 1,154 |
| $ | 19,480 |
EastGroup Properties, Inc.(a) |
| 210 |
|
| 20,068 |
Education Realty Trust, Inc. |
| 537 |
|
| 22,285 |
First Industrial Realty Trust, Inc. |
| 568 |
|
| 18,937 |
InfraREIT, Inc. |
| 883 |
|
| 19,576 |
iStar, Inc.*(a) |
| 1,283 |
|
| 13,844 |
Mack-Cali Realty Corp. |
| 1,220 |
|
| 24,742 |
National Health Investors, Inc. |
| 157 |
|
| 11,568 |
National Storage Affiliates Trust |
| 789 |
|
| 24,317 |
New Senior Investment Group, Inc. |
| 2,350 |
|
| 17,789 |
NexPoint Residential Trust, Inc. |
| 590 |
|
| 16,785 |
PotlatchDeltic Corp. |
| 296 |
|
| 15,052 |
Ramco-Gershenson Properties Trust |
| 662 |
|
| 8,745 |
Rexford Industrial Realty, Inc. |
| 540 |
|
| 16,951 |
STAG Industrial, Inc. |
| 702 |
|
| 19,115 |
Uniti Group, Inc. |
| 1,179 |
|
| 23,615 |
Washington Prime Group, Inc.(a) |
| 2,450 |
|
| 19,869 |
Total REITS |
|
|
|
| 367,678 |
|
|
|
|
|
|
Retail — 6.2% |
|
|
|
|
|
Abercrombie & Fitch Co., Class A |
| 712 |
|
| 17,430 |
America’s Car-Mart, Inc.* |
| 292 |
|
| 18,075 |
BJ’s Restaurants, Inc.(a) |
| 357 |
|
| 21,420 |
Conn’s, Inc.* |
| 620 |
|
| 20,460 |
Dillard’s, Inc., Class A |
| 238 |
|
| 22,491 |
El Pollo Loco Holdings, Inc.*(a) |
| 2,046 |
|
| 23,324 |
Guess?, Inc. |
| 1,291 |
|
| 27,627 |
Movado Group, Inc. |
| 622 |
|
| 30,043 |
Ollie’s Bargain Outlet Holdings, Inc.*(a) |
| 351 |
|
| 25,448 |
PetMed Express, Inc.(a) |
| 398 |
|
| 17,532 |
Regis Corp.*(a) |
| 1,060 |
|
| 17,532 |
Ruth’s Hospitality Group, Inc. |
| 703 |
|
| 19,719 |
Tailored Brands, Inc. |
| 538 |
|
| 13,730 |
Wingstop, Inc. |
| 475 |
|
| 24,757 |
Zumiez, Inc.*(a) |
| 926 |
|
| 23,196 |
Total Retail |
|
|
|
| 322,784 |
|
|
|
|
|
|
Savings & Loans — 1.1% |
|
|
|
|
|
Flagstar Bancorp, Inc.* |
| 539 |
|
| 18,466 |
Northfield Bancorp, Inc.(a) |
| 938 |
|
| 15,590 |
OceanFirst Financial Corp. |
| 740 |
|
| 22,170 |
Total Savings & Loans |
|
|
|
| 56,226 |
Investments |
| Shares |
| Value | |
COMMON STOCKS (continued) |
|
|
| ||
|
|
|
|
|
|
Semiconductors — 2.4% |
|
|
|
|
|
Brooks Automation, Inc. |
| 792 |
| $ | 25,835 |
Cohu, Inc.(a) |
| 949 |
|
| 23,260 |
Diodes, Inc.* |
| 605 |
|
| 20,855 |
Nanometrics, Inc.* |
| 558 |
|
| 19,759 |
Power Integrations, Inc. |
| 247 |
|
| 18,043 |
Veeco Instruments, Inc.*(a) |
| 1,089 |
|
| 15,518 |
Total Semiconductors |
|
|
|
| 123,270 |
|
|
|
|
|
|
Software — 7.7% |
|
|
|
|
|
ACI Worldwide, Inc.* |
| 806 |
|
| 19,884 |
American Software, Inc., Class A |
| 1,348 |
|
| 19,640 |
AppFolio, Inc., Class A* |
| 336 |
|
| 20,546 |
Apptio, Inc., Class A* |
| 793 |
|
| 28,707 |
Blackline, Inc.*(a) |
| 395 |
|
| 17,155 |
Bottomline Technologies (DE), Inc.* |
| 511 |
|
| 25,463 |
Coupa Software, Inc.*(a) |
| 360 |
|
| 22,406 |
Ebix, Inc.(a) |
| 458 |
|
| 34,923 |
Five9, Inc.* |
| 649 |
|
| 22,436 |
Glu Mobile, Inc.* |
| 4,701 |
|
| 30,134 |
Manhattan Associates, Inc.* |
| 472 |
|
| 22,189 |
ManTech International Corp., Class A |
| 345 |
|
| 18,506 |
New Relic, Inc.* |
| 192 |
|
| 19,313 |
Progress Software Corp. |
| 482 |
|
| 18,711 |
SailPoint Technologies Holding, Inc.* |
| 807 |
|
| 19,804 |
SendGrid, Inc.* |
| 648 |
|
| 17,185 |
SPS Commerce, Inc.* |
| 232 |
|
| 17,047 |
Zynga, Inc., Class A* |
| 5,972 |
|
| 24,306 |
Total Software |
|
|
|
| 398,355 |
|
|
|
|
|
|
Telecommunications — 1.8% |
|
|
|
|
|
Comtech Telecommunications Corp. |
| 1,014 |
|
| 32,327 |
InterDigital, Inc. |
| 240 |
|
| 19,416 |
Viavi Solutions, Inc.* |
| 1,834 |
|
| 18,780 |
Vonage Holdings Corp.* |
| 1,781 |
|
| 22,957 |
Total Telecommunications |
|
|
|
| 93,480 |
|
|
|
|
|
|
Textiles — 0.4% |
|
|
|
|
|
UniFirst Corp. |
| 108 |
|
| 19,105 |
|
|
|
|
|
|
Transportation — 1.5% |
|
|
|
|
|
Covenant Transportation Group, Inc., Class A* |
| 674 |
|
| 21,231 |
Echo Global Logistics, Inc.* |
| 690 |
|
| 20,182 |
Genco Shipping & Trading Ltd.* |
| 1,305 |
|
| 20,228 |
Scorpio Bulkers, Inc. |
| 2,399 |
|
| 17,033 |
Total Transportation |
|
|
|
| 78,674 |
See accompanying Notes to Financial Statements.
38
ADVISORSHARES CORNERSTONE SMALL CAP ETF
Schedule of Investments (continued)
June 30, 2018
Investments |
| Shares/ |
| Value | ||
COMMON STOCKS (continued) |
|
|
| |||
|
|
|
|
|
|
|
Trucking & Leasing — 0.5% |
|
|
| |||
GATX Corp. |
|
| 189 |
| $ | 14,029 |
Greenbrier Cos., Inc. (The) |
|
| 237 |
|
| 12,502 |
Total Trucking & Leasing |
|
|
|
|
| 26,531 |
Total Common Stocks |
|
|
|
|
| 5,167,993 |
|
|
|
|
|
|
|
MONEY MARKET FUND — 1.1% |
|
|
| |||
STIT – Government & Agency Portfolio, Institutional Class, 1.80%(c) (Cost $57,555) |
|
| 57,555 |
|
| 57,555 |
|
|
|
|
|
|
|
REPURCHASE AGREEMENT — 3.3%(d) |
|
|
| |||
Citigroup Global Markets, Inc., dated 06/29/18, due 07/02/18, 2.10%, total to be received $172,849, (collateralized by various U.S. Government Agency Obligations, |
| $ | 172,820 |
|
| 172,820 |
Total Investments — 103.8% |
|
|
| |||
|
|
|
|
| 5,398,368 | |
Liabilities in Excess of Other |
|
|
|
|
| (198,795) |
Net Assets — 100.0% |
|
|
|
| $ | 5,199,573 |
____________
LP — Limited Partnership
PLC — Public Limited Company
REITS — Real Estate Investment Trusts
* Non-income producing security.
(a) All or a portion of security is on loan. The aggregate market value of the securities on loan is $1,188,500; the aggregate market value of the collateral held by the fund is $1,214,520. The aggregate market value of the collateral includes non-cash U.S. Treasury securities collateral having a value of $1,041,700.
(b) American Depositary Receipt.
(c) Rate shown reflects the 7-day yield as of June 30, 2018.
(d) Collateral received from brokers for securities lending was invested in these short-term investments.
SUMMARY OF SCHEDULE OF INVESTMENTS
|
| % of | |
|
|
|
|
Agriculture |
| 0.4 | % |
Airlines |
| 1.0 |
|
Apparel |
| 0.5 |
|
Auto Manufacturers |
| 0.3 |
|
Auto Parts & Equipment |
| 1.0 |
|
Banks |
| 5.1 |
|
Beverages |
| 0.3 |
|
Biotechnology |
| 1.4 |
|
Building Materials |
| 1.9 |
|
Chemicals |
| 1.4 |
|
Coal |
| 0.5 |
|
Commercial Services |
| 8.0 |
|
Computers |
| 2.1 |
|
Cosmetics/Personal Care |
| 0.4 |
|
Distribution/Wholesale |
| 1.1 |
|
Diversified Financial Services |
| 1.4 |
|
Electric |
| 0.7 |
|
Electrical Components & Equipment |
| 0.8 |
|
Electronics |
| 4.2 |
|
Energy – Alternate Sources |
| 0.8 |
|
Engineering & Construction |
| 0.5 |
|
Entertainment |
| 1.1 |
|
Food |
| 1.8 |
|
Forest Products & Paper |
| 0.4 |
|
Gas |
| 0.4 |
|
Hand/Machine Tools |
| 0.3 |
|
Healthcare – Products |
| 4.6 |
|
Healthcare – Services |
| 2.8 |
|
Household Products/Wares |
| 0.9 |
|
Insurance |
| 2.2 |
|
Internet |
| 6.2 |
|
Iron/Steel |
| 0.5 |
|
Leisure Time |
| 1.3 |
|
Lodging |
| 1.2 |
|
Machinery – Diversified |
| 1.2 |
|
Media |
| 0.3 |
|
Mining |
| 0.5 |
|
Miscellaneous Manufacturing |
| 2.5 |
|
Office Furnishings |
| 0.4 |
|
Oil & Gas |
| 4.6 |
|
Oil & Gas Services |
| 1.9 |
|
Packaging & Containers |
| 0.4 |
|
Pharmaceuticals |
| 0.9 |
|
Private Equity |
| 0.2 |
|
Real Estate |
| 0.3 |
|
See accompanying Notes to Financial Statements.
39
ADVISORSHARES CORNERSTONE SMALL CAP ETF
Schedule of Investments (continued)
June 30, 2018
SUMMARY OF SCHEDULE OF INVESTMENTS
(continued)
|
| % of | |
REITS |
| 7.1 | % |
Retail |
| 6.2 |
|
Savings & Loans |
| 1.1 |
|
Semiconductors |
| 2.4 |
|
Software |
| 7.7 |
|
Telecommunications |
| 1.8 |
|
Textiles |
| 0.4 |
|
Transportation |
| 1.5 |
|
Trucking & Leasing |
| 0.5 |
|
Money Market Fund |
| 1.1 |
|
Repurchase Agreement |
| 3.3 |
|
Total Investments |
| 103.8 |
|
Liabilities in Excess of Other Assets |
| (3.8 | ) |
Net Assets |
| 100.0 | % |
See accompanying Notes to Financial Statements.
40
ADVISORSHARES DORSEY WRIGHT ADR ETF
Schedule of Investments
June 30, 2018
Investments |
| Shares |
| Value | |
COMMON STOCKS — 99.6% |
|
|
| ||
|
|
|
|
|
|
Aerospace/Defense — 2.7% |
|
| |||
Airbus SE (France)(a) |
| 227,458 |
| $ | 6,617,890 |
|
|
|
|
|
|
Apparel — 2.4% |
|
|
|
|
|
LVMH Moet Hennessy Louis Vuitton SE (France)(a) |
| 87,760 |
|
| 5,818,488 |
|
|
|
|
|
|
Biotechnology — 3.6% |
|
|
|
|
|
Adaptimmune Therapeutics PLC*(a)(b) |
| 342,186 |
|
| 4,061,748 |
Argenx Se (Netherlands)*(a) |
| 59,500 |
|
| 4,930,170 |
Total Biotechnology |
|
|
|
| 8,991,918 |
|
|
|
|
|
|
Chemicals — 3.9% |
|
|
|
|
|
Sociedad Quimica y Minera de Chile SA (Chile)(a)(b) |
| 197,833 |
|
| 9,505,876 |
|
|
|
|
|
|
Commercial Services — 10.6% |
|
|
| ||
New Oriental Education & Technology Group, Inc. (China)(a) |
| 128,135 |
|
| 12,129,259 |
TAL Education Group (China)*(a) |
| 383,276 |
|
| 14,104,557 |
Total Commercial Services |
|
|
|
| 26,233,816 |
|
|
|
|
|
|
Diversified Financial Services — 5.5% |
|
|
| ||
KB Financial Group, Inc. (South Korea)(a)(b) |
| 122,866 |
|
| 5,710,811 |
Noah Holdings Ltd. (China)*(a) |
| 148,518 |
|
| 7,745,214 |
Total Diversified Financial Services |
|
|
|
| 13,456,025 |
|
|
|
|
|
|
Electric — 3.8% |
|
|
|
|
|
Empresa Distribuidora Y Comercializadora Norte (Argentina)*(a)(b) |
| 286,006 |
|
| 9,292,335 |
|
|
|
|
|
|
Food — 2.4% |
|
|
|
|
|
Tesco PLC (United Kingdom)(a) |
| 595,594 |
|
| 6,033,367 |
|
|
|
|
|
|
Forest Products & Paper — 3.5% |
|
|
| ||
Stora Enso OYJ (Finland)(a)(b) |
| 438,033 |
|
| 8,532,883 |
|
|
|
|
|
|
Healthcare – Products — 2.8% |
|
|
| ||
Mazor Robotics Ltd. (Israel)*(a)(b) |
| 124,756 |
|
| 6,925,205 |
|
|
|
|
|
|
Home Furnishings — 3.5% |
|
|
|
|
|
SodaStream International Ltd. (Israel)* |
| 101,278 |
|
| 8,639,013 |
|
|
|
|
|
|
Insurance — 2.4% |
|
|
|
|
|
Aegon NV (Netherlands)(c) |
| 1,005,953 |
|
| 5,955,242 |
Investments |
| Shares |
| Value | |
COMMON STOCKS (continued) |
|
|
| ||
|
|
|
|
|
|
Internet — 10.0% |
|
|
|
|
|
51job, Inc. (China)*(a)(b) |
| 66,844 |
| $ | 6,526,648 |
58.com, Inc. (China)*(a) |
| 78,778 |
|
| 5,462,467 |
Gravity Co. Ltd. (South Korea)(a) |
| 87,186 |
|
| 5,117,818 |
Tencent Holdings Ltd. (China)(a)(b) |
| 138,856 |
|
| 6,977,514 |
Weibo Corp. (China)*(a)(b) |
| 7,434 |
|
| 659,842 |
Total Internet |
|
|
|
| 24,744,289 |
|
|
|
|
|
|
Iron/Steel — 3.1% |
|
|
|
|
|
Ternium SA (Luxembourg)(a) |
| 219,208 |
|
| 7,632,823 |
|
|
|
|
|
|
Lodging — 6.8% |
|
|
|
|
|
Huazhu Group Ltd. (China)(a)(b) |
| 400,132 |
|
| 16,801,543 |
|
|
|
|
|
|
Machinery – Construction & Mining — 2.0% | |||||
Komatsu Ltd. (Japan)(a) |
| 175,937 |
|
| 5,009,806 |
|
|
|
|
|
|
Oil & Gas — 8.4% |
|
|
|
|
|
CNOOC Ltd. (China)(a) |
| 43,931 |
|
| 7,522,744 |
Ecopetrol SA (Colombia)(a)(b) |
| 403,752 |
|
| 8,297,104 |
Petroleo Brasileiro SA (Brazil)(a) |
| 484,284 |
|
| 4,857,368 |
Total Oil & Gas |
|
|
|
| 20,677,216 |
|
|
|
|
|
|
Pharmaceuticals — 2.4% |
|
|
|
|
|
Galapagos NV (Belgium)*(a) |
| 62,914 |
|
| 5,799,412 |
|
|
|
|
|
|
Semiconductors — 5.9% |
|
|
|
|
|
ASML Holding NV (Netherlands)(c) |
| 33,419 |
|
| 6,615,959 |
STMicroelectronics NV (Switzerland)(b) (c) |
| 354,437 |
|
| 7,840,147 |
Total Semiconductors |
|
|
|
| 14,456,106 |
|
|
|
|
|
|
Software — 5.7% |
|
|
|
|
|
Talend SA*(a) |
| 117,336 |
|
| 7,307,686 |
Ubisoft Entertainment SA (France)*(a)(b) |
| 311,364 |
|
| 6,807,974 |
Total Software |
|
|
|
| 14,115,660 |
|
|
|
|
|
|
Telecommunications — 8.2% |
|
|
| ||
Intelsat SA*(b) |
| 464,032 |
|
| 7,730,773 |
Nice Ltd. (Israel)*(a) |
| 74,619 |
|
| 7,743,214 |
TIM Participacoes SA |
| 287,479 |
|
| 4,846,896 |
Total Telecommunications |
|
|
|
| 20,320,883 |
Total Common Stocks |
|
|
|
|
|
|
|
|
| 245,559,796 |
See accompanying Notes to Financial Statements.
41
ADVISORSHARES DORSEY WRIGHT ADR ETF
Schedule of Investments (continued)
June 30, 2018
Investments |
| Shares/ |
| Value | ||
MONEY MARKET FUND — 0.4% |
|
|
| |||
Invesco Government & Agency Portfolio – Private Investment Class, 1.50%(d) (Cost $979,416) |
|
| 979,416 |
| $ | 979,416 |
|
|
|
|
|
|
|
REPURCHASE AGREEMENTS — 8.8%(e) |
|
|
| |||
Deutsche Bank Securities, Inc., dated 06/29/18, due 07/02/18, 2.12%, total to be received $5,064,921, (collateralized by various U.S. Government Agency Obligations, |
| $ | 5,064,026 |
|
| 5,064,026 |
NatWest Markets PLC, dated 06/29/18, due 07/02/18, 2.09%, total to be received $1,499,995, (collateralized by various U.S. Government Agency Obligations, |
|
| 1,499,734 |
|
| 1,499,734 |
NBC Global Finance Ltd., dated 06/29/18, due 07/02/18, 1.95%, total to be received $5,065,167, (collateralized by various U.S. Government Agency Obligations, |
|
| 5,064,344 |
|
| 5,064,344 |
Nomura Securities International, Inc., dated 06/29/18, due 07/02/18, 2.12%, total to be received $5,064,921, (collateralized by various U.S. Government Agency Obligations, |
|
| 5,064,026 |
|
| 5,064,026 |
Investments |
| Shares/Principal |
| Value | ||
REPURCHASE AGREEMENTS (continued) |
|
|
| |||
RBC Dominion Securities, Inc., dated 06/29/18, due 07/02/18, 2.11%, total to be received $5,064,916, (collateralized by various U.S. Government Agency Obligations, |
| $ | 5,064,026 |
| $ | 5,064,026 |
|
|
|
|
|
|
|
Total Repurchase Agreements |
|
|
| |||
|
|
|
|
| 21,756,156 | |
|
|
|
|
|
|
|
Total Investments — 108.8% |
|
|
|
|
|
|
(Cost $261,775,747) |
|
|
|
|
| 268,295,368 |
|
|
|
|
|
|
|
Liabilities in Excess of Other Assets — (8.8%) |
|
|
|
|
| (21,594,785) |
Net Assets — 100.0% |
|
|
|
| $ | 246,700,583 |
____________
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 $30,313,115; the aggregate market value of the collateral held by the fund is $31,077,618. The aggregate market value of the collateral includes non-cash U.S. Treasury securities collateral having a value of $9,321,462.
(c) Registered Shares.
(d) Rate shown reflects the 7-day yield as of June 30, 2018.
(e) Collateral received from brokers for securities lending was invested in these short-term investments.
See accompanying Notes to Financial Statements.
42
ADVISORSHARES DORSEY WRIGHT ADR ETF
Schedule of Investments (continued)
June 30, 2018
SUMMARY OF SCHEDULE OF INVESTMENTS
|
| % of | |
Aerospace/Defense |
| 2.7 | % |
Apparel |
| 2.4 |
|
Biotechnology |
| 3.6 |
|
Chemicals |
| 3.9 |
|
Commercial Services |
| 10.6 |
|
Diversified Financial Services |
| 5.5 |
|
Electric |
| 3.8 |
|
Food |
| 2.4 |
|
Forest Products & Paper |
| 3.5 |
|
Healthcare – Products |
| 2.8 |
|
Home Furnishings |
| 3.5 |
|
Insurance |
| 2.4 |
|
Internet |
| 10.0 |
|
Iron/Steel |
| 3.1 |
|
Lodging |
| 6.8 |
|
Machinery – Construction & Mining |
| 2.0 |
|
Oil & Gas |
| 8.4 |
|
Pharmaceuticals |
| 2.4 |
|
Semiconductors |
| 5.9 |
|
Software |
| 5.7 |
|
Telecommunications |
| 8.2 |
|
Money Market Fund |
| 0.4 |
|
Repurchase Agreements |
| 8.8 |
|
Total Investments |
| 108.8 |
|
Liabilities in Excess of Other Assets |
| (8.8 | ) |
Net Assets |
| 100.0 | % |
See accompanying Notes to Financial Statements.
43
ADVISORSHARES FOCUSED EQUITY ETF
Schedule of Investments
June 30, 2018
Investments |
| Shares |
| Value | |
COMMON STOCKS — 99.0% |
|
|
|
|
|
|
|
|
|
|
|
Banks — 3.6% |
|
|
|
|
|
Signature Bank* |
| 4,071 |
| $ | 520,600 |
|
|
|
|
|
|
Building Materials — 4.4% |
|
|
|
|
|
Continental Building Products, Inc.* |
| 19,750 |
|
| 623,113 |
|
|
|
|
|
|
Chemicals — 8.1% |
|
|
|
|
|
RPM International, Inc.(a) |
| 10,538 |
|
| 614,576 |
Sherwin-Williams Co. (The) |
| 1,342 |
|
| 546,959 |
Total Chemicals |
|
|
|
| 1,161,535 |
|
|
|
|
|
|
Commercial Services — 8.3% |
|
|
|
|
|
Carriage Services, Inc. |
| 21,768 |
|
| 534,404 |
Moody’s Corp. |
| 3,825 |
|
| 652,392 |
Total Commercial Services |
|
|
|
| 1,186,796 |
|
|
|
|
|
|
Computers — 8.0% |
|
|
|
|
|
Check Point Software Technologies Ltd. (Israel)* |
| 5,380 |
|
| 525,518 |
Cognizant Technology Solutions Corp., Class A |
| 7,853 |
|
| 620,309 |
Total Computers |
|
|
|
| 1,145,827 |
|
|
|
|
|
|
Diversified Financial Services — 7.7% |
|
|
| ||
Alliance Data Systems Corp. |
| 2,203 |
|
| 513,740 |
Intercontinental Exchange, Inc. |
| 8,001 |
|
| 588,473 |
Total Diversified Financial Services |
|
|
|
| 1,102,213 |
|
|
|
|
|
|
Food — 10.5% |
|
|
|
|
|
Hormel Foods Corp. |
| 15,428 |
|
| 574,076 |
Ingredion, Inc. |
| 4,001 |
|
| 442,910 |
JM Smucker Co. (The)(a) |
| 4,514 |
|
| 485,165 |
Total Food |
|
|
|
| 1,502,151 |
|
|
|
|
|
|
Hand/Machine Tools — 3.6% |
|
|
|
|
|
Snap-on, Inc.(a) |
| 3,161 |
|
| 508,036 |
|
|
|
|
|
|
Healthcare – Products — 12.7% |
|
| |||
Becton Dickinson and Co. |
| 2,578 |
|
| 617,586 |
Danaher Corp. |
| 6,034 |
|
| 595,435 |
Stryker Corp. |
| 3,582 |
|
| 604,856 |
Total Healthcare – Products |
|
|
|
| 1,817,877 |
|
|
|
|
|
|
Household Products/Wares — 4.2% |
|
|
| ||
Church & Dwight Co., Inc.(a) |
| 11,289 |
|
| 600,123 |
|
|
|
|
|
|
Insurance — 7.3% |
|
|
|
|
|
Aflac, Inc. |
| 12,606 |
|
| 542,310 |
Torchmark Corp. |
| 6,187 |
|
| 503,684 |
Total Insurance |
|
|
|
| 1,045,994 |
Investments |
| Shares/Principal |
| Value | ||
COMMON STOCKS (continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Machinery – Diversified — 4.7% |
|
|
| |||
Wabtec Corp.(a) |
|
| 6,838 |
| $ | 674,090 |
|
|
|
|
|
|
|
Media — 4.0% |
|
|
|
|
|
|
FactSet Research Systems, Inc. |
|
| 2,891 |
|
| 572,707 |
|
|
|
|
|
|
|
Retail — 4.1% |
|
|
|
|
|
|
Ross Stores, Inc. |
|
| 6,900 |
|
| 584,775 |
|
|
|
|
|
|
|
Software — 7.8% |
|
|
|
|
|
|
Cerner Corp.* |
|
| 8,163 |
|
| 488,066 |
Fiserv, Inc.* |
|
| 8,574 |
|
| 635,248 |
Total Software |
|
|
|
|
| 1,123,314 |
Total Common Stocks |
|
|
|
|
|
|
|
|
|
|
| 14,169,151 | |
|
|
|
|
|
|
|
MONEY MARKET FUND — 1.2% |
|
|
| |||
BlackRock Liquidity Funds Treasury Trust Fund Portfolio, Institutional Class, 1.70%(b) |
|
| 169,774 |
|
| 169,774 |
|
|
|
|
|
|
|
REPURCHASE AGREEMENT — 0.0%**(c) |
|
|
| |||
Nomura Securities International, Inc., dated 06/29/18, due 07/02/18, 1.75%, total to be received $206, (collateralized by various U.S. Government Agency Obligations, |
| $ | 206 |
|
| 206 |
Total Investments — 100.2% (Cost $12,678,819) |
|
|
|
|
| 14,339,131 |
Liabilities in Excess of Other |
|
| (27,783) | |||
Net Assets — 100.0% |
|
|
|
| $ | 14,311,348 |
____________
* 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 $2,732,822; the aggregate market value of the collateral held by the fund is $2,790,909. The aggregate market value of the collateral includes non-cash U.S. Treasury securities collateral having a value of $2,790,703.
(b) Rate shown reflects the 7-day yield as of June 30, 2018.
(c) Collateral received from brokers for securities lending was invested in this short-term investment.
See accompanying Notes to Financial Statements.
44
ADVISORSHARES FOCUSED EQUITY ETF
Schedule of Investments (continued)
June 30, 2018
SUMMARY OF SCHEDULE OF INVESTMENTS
|
| % of | |
Banks |
| 3.6 | % |
Building Materials |
| 4.4 |
|
Chemicals |
| 8.1 |
|
Commercial Services |
| 8.3 |
|
Computers |
| 8.0 |
|
Diversified Financial Services |
| 7.7 |
|
Food |
| 10.5 |
|
Hand/Machine Tools |
| 3.6 |
|
Healthcare – Products |
| 12.7 |
|
Household Products/Wares |
| 4.2 |
|
Insurance |
| 7.3 |
|
Machinery – Diversified |
| 4.7 |
|
Media |
| 4.0 |
|
Retail |
| 4.1 |
|
Software |
| 7.8 |
|
Money Market Fund |
| 1.2 |
|
Repurchase Agreement |
| 0.0 | ** |
Total Investments |
| 100.2 |
|
Liabilities in Excess of Other Assets |
| (0.2 | ) |
Net Assets |
| 100.0 | % |
____________
** Less than 0.05%.
See accompanying Notes to Financial Statements.
45
ADVISORSHARES KIM KOREA EQUITY ETF
Schedule of Investments
June 30, 2018
Investments |
| Shares |
| Value | |
COMMON STOCKS — 99.4% |
|
|
|
|
|
|
|
|
|
|
|
Advertising — 1.9% |
|
|
|
|
|
Innocean Worldwide, Inc. (South Korea) |
| 3,408 |
| $ | 181,638 |
|
|
|
|
|
|
Airlines — 1.8% |
|
|
|
|
|
Hanjin Kal Corp. (South Korea) |
| 11,257 |
|
| 170,698 |
|
|
|
|
|
|
Apparel — 1.6% |
|
|
|
|
|
Handsome Co. Ltd. (South Korea) |
| 4,019 |
|
| 150,194 |
|
|
|
|
|
|
Auto Manufacturers — 3.2% |
|
|
|
|
|
Hyundai Motor Co. (South Korea) |
| 2,688 |
|
| 302,686 |
|
|
|
|
|
|
Auto Parts & Equipment — 3.9% |
|
| |||
Hyundai Mobis Co. Ltd. |
| 1,795 |
|
| 341,445 |
Mando Corp. (South Korea) |
| 942 |
|
| 32,456 |
Total Auto Parts & Equipment |
|
|
|
| 373,901 |
|
|
|
|
|
|
Banks — 0.9% |
|
|
|
|
|
Industrial Bank of Korea |
| 6,509 |
|
| 89,940 |
|
|
|
|
|
|
Biotechnology — 2.1% |
|
|
|
|
|
Medy-Tox, Inc. (South Korea) |
| 90 |
|
| 61,963 |
Samsung Biologics Co. Ltd. |
| 379 |
|
| 141,806 |
Total Biotechnology |
|
|
|
| 203,769 |
|
|
|
|
|
|
Chemicals — 5.2% |
|
|
|
|
|
Hansol Chemical Co. Ltd. |
| 318 |
|
| 22,341 |
LG Chem Ltd. (South Korea) |
| 475 |
|
| 142,138 |
Lotte Chemical Corp. (South Korea) |
| 834 |
|
| 260,415 |
SK Chemicals Co. Ltd. |
| 487 |
|
| 40,594 |
Wonik Materials Co. Ltd. |
| 711 |
|
| 34,194 |
Total Chemicals |
|
|
|
| 499,682 |
|
|
|
|
|
|
Computers — 3.0% |
|
|
|
|
|
NHN KCP Corp. (South Korea)* |
| 715 |
|
| 8,212 |
Samsung SDS Co. Ltd. |
| 411 |
|
| 73,939 |
Shinsegae Information & Communication Co. Ltd. |
| 578 |
|
| 72,347 |
SK Holdings Co. Ltd. (South Korea) |
| 582 |
|
| 135,252 |
Total Computers |
|
|
|
| 289,750 |
|
|
|
|
|
|
Cosmetics/Personal Care — 3.6% |
|
| |||
Amorepacific Corp. (South Korea) |
| 781 |
|
| 225,996 |
Investments |
| Shares |
| Value | |
COMMON STOCKS (continued) |
|
| |||
|
|
|
| ||
Cosmetics/Personal Care (continued) |
|
|
| ||
AMOREPACIFIC Group |
| 344 |
| $ | 38,119 |
Cosmax, Inc. (South Korea) |
| 337 |
|
| 49,137 |
LG Household & Health Care Ltd. (South Korea) |
| 26 |
|
| 32,567 |
Total Cosmetics/Personal Care |
|
|
|
| 345,819 |
|
|
|
|
|
|
Diversified Financial Services — 5.9% |
|
|
| ||
KB Financial Group, Inc. |
| 3,733 |
|
| 176,853 |
KIWOOM Securities Co. Ltd. (South Korea) |
| 1,637 |
|
| 159,367 |
NH Investment & Securities Co. Ltd. (South Korea) |
| 8,775 |
|
| 117,709 |
Samsung Securities Co. Ltd. (South Korea) |
| 3,592 |
|
| 111,998 |
Total Diversified Financial Services |
|
|
|
| 565,927 |
|
|
|
|
|
|
Electrical Components & Equipment — 1.6% | |||||
LS Corp. (South Korea) |
| 2,191 |
|
| 147,443 |
|
|
|
|
|
|
Electronics — 1.0% |
|
|
|
|
|
L&F Co. Ltd. (South Korea) |
| 266 |
|
| 12,101 |
Samsung Electro-Mechanics Co. Ltd. (South Korea) |
| 588 |
|
| 78,347 |
Total Electronics |
|
|
|
| 90,448 |
|
|
|
|
|
|
Engineering & Construction — 1.6% |
|
|
| ||
Daewoo Engineering & Construction Co. Ltd. |
| 7,278 |
|
| 38,333 |
HDC Holdings Co. Ltd. |
| 1,902 |
|
| 48,808 |
Hyundai Engineering & Construction Co. Ltd. |
| 1,189 |
|
| 61,344 |
Total Engineering & Construction |
|
|
|
| 148,485 |
|
|
|
|
|
|
Food — 2.7% |
|
|
|
|
|
CJ CheilJedang Corp. (South Korea) |
| 740 |
|
| 234,051 |
NUTRIBIOTECH Co. Ltd. |
| 1,226 |
|
| 23,266 |
Total Food |
|
|
|
| 257,317 |
|
|
|
|
|
|
Gas — 0.7% |
|
|
|
|
|
Korea Gas Corp. (South Korea)* |
| 1,215 |
|
| 69,989 |
|
|
|
|
|
|
Healthcare – Products — 0.2% |
|
|
| ||
Interojo Co. Ltd. (South Korea) |
| 474 |
|
| 14,737 |
|
|
|
|
|
|
See accompanying Notes to Financial Statements.
46
ADVISORSHARES KIM KOREA EQUITY ETF
Schedule of Investments (continued)
June 30, 2018
Investments |
| Shares |
| Value | |
COMMON STOCKS (continued) |
|
| |||
|
|
|
|
|
|
Home Furnishings — 0.8% |
|
|
|
|
|
Cuckoo Holdings Co. Ltd. |
| 503 |
| $ | 80,110 |
|
|
|
|
|
|
Insurance — 2.1% |
|
|
|
|
|
Samsung Life Insurance Co. Ltd. (South Korea) |
| 2,278 |
|
| 201,126 |
|
|
|
|
|
|
Internet — 6.0% |
|
|
|
|
|
Cafe24 Corp. (South Korea)* |
| 95 |
|
| 15,258 |
NAVER Corp. (South Korea) |
| 543 |
|
| 371,744 |
NHN Entertainment Corp. |
| 3,162 |
|
| 184,131 |
Total Internet |
|
|
|
| 571,133 |
|
|
|
|
|
|
Investment Companies — 1.7% |
|
| |||
Hyundai Heavy Industries Holdings Co. Ltd. (South Korea)* |
| 511 |
|
| 162,080 |
|
|
|
|
|
|
Iron/Steel — 2.4% |
|
|
|
|
|
POSCO (South Korea) |
| 775 |
|
| 228,780 |
|
|
|
|
|
|
Leisure Time — 1.3% |
|
|
|
|
|
Hana Tour Service, Inc. |
| 932 |
|
| 73,088 |
Very Good Tour Co. Ltd. |
| 4,430 |
|
| 46,506 |
Total Leisure Time |
|
|
|
| 119,594 |
|
|
|
|
|
|
Machinery-Construction & Mining — 0.3% |
|
|
| ||
Hyundai Construction Equipment Co. Ltd. (South Korea)* |
| 227 |
|
| 28,719 |
|
|
|
|
|
|
Machinery-Diversified — 0.3% |
|
| |||
Hyundai Elevator Co. Ltd. |
| 359 |
|
| 28,862 |
|
|
|
|
|
|
Media — 2.8% |
|
|
|
|
|
CJ E&M Corp. (South Korea) |
| 2,966 |
|
| 263,201 |
|
|
|
|
|
|
Metal Fabricate/Hardware — 0.2% |
|
|
| ||
Hyosung Corp. (South Korea)(a),(b) |
| 121 |
|
| 14,548 |
|
|
|
|
|
|
Miscellaneous Manufacturing — 1.1% |
|
|
| ||
POSCO Chemtech Co. Ltd. |
| 736 |
|
| 29,090 |
SK Materials Co. Ltd. (South Korea) |
| 476 |
|
| 76,408 |
Total Miscellaneous Manufacturing |
|
|
|
| 105,498 |
|
|
|
|
|
|
Oil & Gas — 1.2% |
|
|
|
|
|
S-Oil Corp. (South Korea) |
| 1,190 |
|
| 116,918 |
|
|
|
|
|
|
Investments |
| Shares |
| Value | |
COMMON STOCKS (continued) |
|
| |||
|
|
|
|
|
|
Pharmaceuticals — 4.9% |
|
|
|
|
|
Celltrion, Inc. (South Korea)* |
| 639 |
| $ | 174,012 |
Green Cross Corp. (South Korea) |
| 314 |
|
| 58,180 |
Hanmi Pharm Co. Ltd. |
| 464 |
|
| 175,275 |
Yuhan Corp. (South Korea) |
| 330 |
|
| 64,401 |
Total Pharmaceuticals |
|
|
|
| 471,868 |
|
|
|
|
|
|
Retail — 3.9% |
|
|
|
|
|
E-MART, Inc. (South Korea) |
| 405 |
|
| 92,483 |
Samsung C&T Corp. (South Korea) |
| 1,075 |
|
| 112,371 |
Shinsegae, Inc. (South Korea) |
| 450 |
|
| 162,113 |
Total Retail |
|
|
|
| 366,967 |
|
|
|
|
|
|
Semiconductors — 26.4% |
|
|
|
|
|
Innox Advanced Materials Co. Ltd. (South Korea)* |
| 328 |
|
| 16,834 |
Samsung Electronics Co. Ltd. (South Korea) |
| 48,543 |
|
| 2,031,881 |
SK Hynix, Inc. (South Korea) |
| 6,158 |
|
| 473,522 |
Total Semiconductors |
|
|
|
| 2,522,237 |
|
|
|
|
|
|
Shipbuilding — 0.8% |
|
|
|
|
|
Hyundai Heavy Industries Co. Ltd. (South Korea)* |
| 877 |
|
| 80,264 |
|
|
|
|
|
|
Telecommunications — 1.8% |
|
|
|
|
|
Samsung SDI Co. Ltd. (South Korea) |
| 282 |
|
| 54,148 |
SK Telecom Co. Ltd. (South Korea) |
| 582 |
|
| 121,674 |
Total Telecommunications |
|
|
|
| 175,822 |
|
|
|
|
|
|
Transportation — 0.5% |
|
|
|
|
|
Pan Ocean Co. Ltd. (South Korea)* |
| 10,384 |
|
| 45,514 |
Total Common Stocks (Cost $8,607,989) |
|
|
|
| 9,485,664 |
|
|
|
|
|
|
Total Investments — 99.4% (Cost $8,607,989) |
|
|
|
| 9,485,664 |
Other Assets in Excess of |
|
|
|
| 60,962 |
Net Assets — 100.0% |
|
|
| $ | 9,546,626 |
____________
* Non-income producing security.
‡ 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) Significant unobservable inputs were used in the valuation of this portfolio security.
(b) Illiquid security.
See accompanying Notes to Financial Statements.
47
ADVISORSHARES KIM KOREA EQUITY ETF
Schedule of Investments (continued)
June 30, 2018
SUMMARY OF SCHEDULE OF INVESTMENTS
|
| % of | |
Advertising |
| 1.9 | % |
Airlines |
| 1.8 |
|
Apparel |
| 1.6 |
|
Auto Manufacturers |
| 3.2 |
|
Auto Parts & Equipment |
| 3.9 |
|
Banks |
| 0.9 |
|
Biotechnology |
| 2.1 |
|
Chemicals |
| 5.2 |
|
Computers |
| 3.0 |
|
Cosmetics/Personal Care |
| 3.6 |
|
Diversified Financial Services |
| 5.9 |
|
Electrical Components & Equipment |
| 1.6 |
|
Electronics |
| 1.0 |
|
Engineering & Construction |
| 1.6 |
|
Food |
| 2.7 |
|
Gas |
| 0.7 |
|
Healthcare – Products |
| 0.2 |
|
Home Furnishings |
| 0.8 |
|
Insurance |
| 2.1 |
|
Internet |
| 6.0 |
|
Investment Companies |
| 1.7 |
|
Iron/Steel |
| 2.4 |
|
Leisure Time |
| 1.3 |
|
Machinery – Construction & Mining |
| 0.3 |
|
Machinery – Diversified |
| 0.3 |
|
Media |
| 2.8 |
|
Metal Fabricate/Hardware |
| 0.2 |
|
Miscellaneous Manufacturing |
| 1.1 |
|
Oil & Gas |
| 1.2 |
|
Pharmaceuticals |
| 4.9 |
|
Retail |
| 3.9 |
|
Semiconductors |
| 26.4 |
|
Shipbuilding |
| 0.8 |
|
Telecommunications |
| 1.8 |
|
Transportation |
| 0.5 |
|
Total Investments |
| 99.4 |
|
Other Assets in Excess of Liabilities |
| 0.6 |
|
Net Assets |
| 100.0 | % |
See accompanying Notes to Financial Statements.
48
ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments
June 30, 2018
Investments |
| Shares |
| Value |
COMMON STOCKS — 98.2% |
|
|
|
|
|
|
|
|
|
Advertising — 0.3% |
|
|
|
|
Interpublic Group of Cos., Inc. (The) |
| 2,556 |
| $59,913 |
Omnicom Group, Inc. |
| 234 |
| 17,847 |
Total Advertising |
|
|
| 77,760 |
|
|
|
|
|
Aerospace/Defense — 1.6% |
|
|
|
|
Arconic, Inc. |
| 6,913 |
| 117,590 |
Boeing Co. (The) |
| 225 |
| 75,490 |
General Dynamics Corp. |
| 81 |
| 15,099 |
Harris Corp. |
| 108 |
| 15,610 |
L3 Technologies, Inc. |
| 85 |
| 16,347 |
Lockheed Martin Corp. |
| 127 |
| 37,520 |
Northrop Grumman Corp. |
| 52 |
| 16,000 |
Raytheon Co. |
| 252 |
| 48,681 |
Rockwell Collins, Inc. |
| 318 |
| 42,828 |
TransDigm Group, Inc.(a) |
| 175 |
| 60,400 |
United Technologies Corp. |
| 255 |
| 31,883 |
Total Aerospace/Defense |
|
|
| 477,448 |
|
|
|
|
|
Agriculture — 0.8% |
|
|
|
|
Altria Group, Inc. |
| 1,128 |
| 64,059 |
Archer-Daniels-Midland Co. |
| 2,270 |
| 104,034 |
Philip Morris International, Inc. |
| 759 |
| 61,282 |
Total Agriculture |
|
|
| 229,375 |
|
|
|
|
|
Airlines — 2.1% |
|
|
|
|
Alaska Air Group, Inc.(a) |
| 263 |
| 15,882 |
American Airlines Group, Inc.(a) |
| 3,684 |
| 139,845 |
Delta Air Lines, Inc. |
| 3,177 |
| 157,389 |
Southwest Airlines Co. |
| 3,049 |
| 155,133 |
United Continental Holdings, Inc.* |
| 2,654 |
| 185,063 |
Total Airlines |
|
|
| 653,312 |
|
|
|
|
|
Apparel — 0.9% |
|
|
|
|
Hanesbrands, Inc.(a) |
| 2,897 |
| 63,792 |
Michael Kors Holdings Ltd.* |
| 258 |
| 17,183 |
NIKE, Inc., Class B |
| 260 |
| 20,717 |
PVH Corp. |
| 338 |
| 50,605 |
Ralph Lauren Corp. |
| 513 |
| 64,494 |
Under Armour, Inc., Class A*(a) |
| 1,058 |
| 23,784 |
Under Armour, Inc., Class C*(a) |
| 1,213 |
| 25,570 |
VF Corp. |
| 220 |
| 17,935 |
Total Apparel |
|
|
| 284,080 |
|
|
|
|
|
Auto Manufacturers — 1.5% |
|
|
|
|
Ford Motor Co. |
| 15,920 |
| 176,234 |
General Motors Co. |
| 4,694 |
| 184,944 |
Investments |
| Shares |
| Value | |
COMMON STOCKS (continued) |
| ||||
|
|
| |||
Auto Manufacturers (continued) |
|
| |||
PACCAR, Inc. |
| 1,717 |
| $ | 106,385 |
Total Auto Manufacturers |
|
|
| 467,563 | |
|
|
|
|
| |
Auto Parts & Equipment — 0.7% |
|
| |||
Aptiv PLC |
| 798 |
| 73,121 | |
BorgWarner, Inc. |
| 1,250 |
| 53,950 | |
Goodyear Tire & Rubber Co. (The) |
| 3,947 |
| 91,925 | |
Total Auto Parts & Equipment |
|
|
| 218,996 | |
|
|
|
|
| |
Banks — 6.9% |
|
|
|
| |
Bank of America Corp. |
| 2,358 |
| 66,472 | |
Bank of New York Mellon Corp. (The) |
| 736 |
| 39,693 | |
BB&T Corp. |
| 726 |
| 36,620 | |
Capital One Financial Corp. |
| 1,427 |
| 131,141 | |
Citigroup, Inc. |
| 2,108 |
| 141,067 | |
Citizens Financial Group, Inc. |
| 3,916 |
|
| 152,333 |
Comerica, Inc. |
| 1,633 |
|
| 148,472 |
Fifth Third Bancorp |
| 517 |
|
| 14,838 |
Goldman Sachs Group, Inc. (The) |
| 512 |
|
| 112,932 |
Huntington Bancshares, Inc. |
| 5,285 |
|
| 78,007 |
JPMorgan Chase & Co. |
| 1,191 |
|
| 124,102 |
KeyCorp |
| 7,365 |
|
| 143,912 |
M&T Bank Corp. |
| 470 |
|
| 79,971 |
Morgan Stanley |
| 2,636 |
|
| 124,946 |
Northern Trust Corp. |
| 725 |
|
| 74,595 |
PNC Financial Services Group, Inc. (The) |
| 437 |
|
| 59,039 |
Regions Financial Corp. |
| 5,550 |
|
| 98,679 |
State Street Corp. |
| 1,160 |
|
| 107,984 |
SunTrust Banks, Inc. |
| 1,697 |
|
| 112,036 |
SVB Financial Group* |
| 192 |
|
| 55,442 |
US Bancorp |
| 862 |
|
| 43,117 |
Wells Fargo & Co. |
| 2,285 |
|
| 126,680 |
Zions Bancorporation(a) |
| 915 |
|
| 48,211 |
Total Banks |
|
|
|
| 2,120,289 |
|
|
|
|
| |
Beverages — 0.7% |
|
|
|
|
|
Brown-Forman Corp., Class B(a) |
| 332 |
|
| 16,271 |
Coca-Cola Co. (The) |
| 411 |
|
| 18,027 |
Constellation Brands, Inc., Class A |
| 264 |
|
| 57,782 |
Dr Pepper Snapple Group, Inc. |
| 145 |
|
| 17,690 |
Molson Coors Brewing Co., Class B |
| 861 |
|
| 58,582 |
Monster Beverage Corp.* |
| 717 |
|
| 41,084 |
PepsiCo, Inc. |
| 171 |
|
| 18,617 |
Total Beverages |
|
|
|
| 228,053 |
See accompanying Notes to Financial Statements.
49
ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)
June 30, 2018
Investments |
| Shares |
| Value | |
COMMON STOCKS (continued) |
| ||||
|
|
|
|
|
|
Biotechnology — 1.9% |
|
|
|
|
|
Alexion Pharmaceuticals, Inc.* |
| 1,206 |
| $ | 149,725 |
Amgen, Inc. |
| 170 |
|
| 31,380 |
Biogen, Inc.* |
| 227 |
|
| 65,884 |
Celgene Corp.* |
| 1,917 |
|
| 152,248 |
Illumina, Inc.* |
| 75 |
|
| 20,947 |
Incyte Corp.* |
| 273 |
|
| 18,291 |
Regeneron Pharmaceuticals, Inc.* |
| 205 |
|
| 70,723 |
Vertex Pharmaceuticals, Inc.* |
| 356 |
|
| 60,506 |
Total Biotechnology |
|
|
|
| 569,704 |
|
|
|
|
|
|
Building Materials — 1.7% |
|
|
|
|
|
Fortune Brands Home & Security, Inc. |
| 1,359 |
|
| 72,965 |
Johnson Controls International PLC |
| 2,437 |
|
| 81,518 |
Martin Marietta Materials, Inc. |
| 424 |
|
| 94,692 |
Masco Corp. |
| 3,802 |
|
| 142,271 |
Vulcan Materials Co. |
| 1,076 |
|
| 138,868 |
Total Building Materials |
|
|
|
| 530,314 |
|
|
|
|
|
|
Chemicals — 1.4% |
|
|
|
|
|
Air Products & Chemicals, Inc. |
| 106 |
|
| 16,507 |
Albemarle Corp.(a) |
| 529 |
|
| 49,901 |
CF Industries Holdings, Inc. |
| 438 |
|
| 19,447 |
DowDuPont, Inc. |
| 1,025 |
|
| 67,568 |
FMC Corp. |
| 831 |
|
| 74,134 |
International Flavors & Fragrances, Inc. |
| 124 |
|
| 15,371 |
LyondellBasell Industries NV, Class A |
| 591 |
|
| 64,921 |
Mosaic Co. (The) |
| 643 |
|
| 18,036 |
PPG Industries, Inc. |
| 297 |
|
| 30,808 |
Praxair, Inc. |
| 116 |
|
| 18,345 |
Sherwin-Williams Co. (The) |
| 163 |
|
| 66,434 |
Total Chemicals |
|
|
|
| 441,472 |
|
|
|
|
|
|
Commercial Services — 3.1% |
|
| |||
Automatic Data Processing, Inc. |
| 273 |
|
| 36,620 |
Cintas Corp. |
| 203 |
|
| 37,569 |
Ecolab, Inc. |
| 120 |
|
| 16,840 |
Equifax, Inc. |
| 146 |
|
| 18,266 |
Gartner, Inc.*(a) |
| 328 |
|
| 43,591 |
Global Payments, Inc. |
| 611 |
|
| 68,120 |
H&R Block, Inc.(a) |
| 4,372 |
|
| 99,594 |
IHS Markit Ltd.* |
| 757 |
|
| 39,054 |
Moody’s Corp. |
| 224 |
|
| 38,206 |
Nielsen Holdings PLC(a) |
| 1,343 |
|
| 41,539 |
PayPal Holdings, Inc.* |
| 547 |
|
| 45,549 |
Investments |
| Shares |
| Value | |
COMMON STOCKS (continued) |
| ||||
|
|
|
|
| |
Commercial Services (continued) |
|
|
| ||
Quanta Services, Inc.* |
| 2,296 |
| $ | 76,686 |
Robert Half International, Inc. |
| 723 |
|
| 47,067 |
S&P Global, Inc. |
| 295 |
|
| 60,148 |
Total System Services, Inc. |
| 835 |
|
| 70,574 |
United Rentals, Inc.* |
| 1,064 |
|
| 157,068 |
Verisk Analytics, Inc.*(a) |
| 163 |
|
| 17,545 |
Western Union Co. (The)(a) |
| 909 |
|
| 18,480 |
Total Commercial Services |
|
|
|
| 932,516 |
|
|
|
|
|
|
Computers — 2.1% |
|
|
|
|
|
Accenture PLC, Class A |
| 116 |
|
| 18,976 |
Apple, Inc. |
| 446 |
|
| 82,559 |
Cognizant Technology Solutions Corp., Class A |
| 950 |
|
| 75,041 |
DXC Technology Co. |
| 579 |
|
| 46,673 |
HP, Inc. |
| 3,252 |
|
| 73,788 |
NetApp, Inc. |
| 951 |
|
| 74,682 |
Perspecta, Inc. |
| 289 |
|
| 5,939 |
Seagate Technology PLC |
| 2,095 |
|
| 118,305 |
Western Digital Corp. |
| 1,869 |
|
| 144,679 |
Total Computers |
|
|
|
| 640,642 |
|
|
|
|
|
|
Cosmetics/Personal Care — 0.3% |
|
|
| ||
Colgate-Palmolive Co. |
| 450 |
|
| 29,165 |
Coty, Inc., Class A(a) |
| 2,873 |
|
| 40,509 |
Estee Lauder Cos., Inc. (The), Class A |
| 119 |
|
| 16,980 |
Procter & Gamble Co. (The) |
| 239 |
|
| 18,656 |
Total Cosmetics/Personal Care |
|
|
|
| 105,310 |
|
|
|
|
|
|
Distribution/Wholesale — 0.8% |
|
| |||
Fastenal Co.(a) |
| 1,874 |
|
| 90,195 |
LKQ Corp.* |
| 2,582 |
|
| 82,366 |
W.W. Grainger, Inc.(a) |
| 217 |
|
| 66,923 |
Total Distribution/Wholesale |
|
|
|
| 239,484 |
|
|
|
|
|
|
Diversified Financial Services — 6.3% |
|
|
| ||
Affiliated Managers Group, Inc. |
| 803 |
|
| 119,382 |
Alliance Data Systems Corp. |
| 658 |
|
| 153,446 |
American Express Co. |
| 649 |
|
| 63,602 |
Ameriprise Financial, Inc. |
| 1,194 |
|
| 167,017 |
BlackRock, Inc. |
| 132 |
|
| 65,873 |
Cboe Global Markets, Inc. |
| 705 |
|
| 73,369 |
Charles Schwab Corp. (The) |
| 1,835 |
|
| 93,769 |
CME Group, Inc. |
| 301 |
|
| 49,340 |
Discover Financial Services |
| 1,715 |
|
| 120,753 |
E*TRADE Financial Corp.* |
| 2,729 |
|
| 166,906 |
Franklin Resources, Inc. |
| 1,791 |
|
| 57,402 |
See accompanying Notes to Financial Statements.
50
ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)
June 30, 2018
Investments |
| Shares |
| Value | |
COMMON STOCKS (continued) |
| ||||
|
|
|
|
|
|
Diversified Financial Services (continued) |
|
|
| ||
Intercontinental Exchange, Inc. |
| 796 |
| $ | 58,546 |
Invesco Ltd. |
| 3,522 |
|
| 93,544 |
Jefferies Financial Group, Inc. |
| 5,332 |
|
| 121,250 |
Mastercard, Inc., Class A |
| 418 |
|
| 82,145 |
Raymond James Financial, Inc. |
| 1,627 |
|
| 145,372 |
Synchrony Financial |
| 4,522 |
|
| 150,944 |
T. Rowe Price Group, Inc. |
| 665 |
|
| 77,200 |
Visa, Inc., Class A |
| 556 |
|
| 73,642 |
Total Diversified Financial Services |
|
|
|
| 1,933,502 |
|
|
|
|
|
|
Electric — 2.0% |
|
|
|
|
|
AES Corp. (The) |
| 2,546 |
|
| 34,142 |
Alliant Energy Corp. |
| 411 |
|
| 17,394 |
Ameren Corp. |
| 303 |
|
| 18,438 |
American Electric Power Co., Inc. |
| 251 |
|
| 17,382 |
CenterPoint Energy, Inc. |
| 692 |
|
| 19,175 |
CMS Energy Corp. |
| 378 |
|
| 17,872 |
Consolidated Edison, Inc. |
| 221 |
|
| 17,234 |
Dominion Energy, Inc. |
| 268 |
|
| 18,272 |
DTE Energy Co. |
| 167 |
|
| 17,306 |
Duke Energy Corp. |
| 220 |
|
| 17,398 |
Edison International |
| 267 |
|
| 16,893 |
Entergy Corp. |
| 217 |
|
| 17,531 |
Eversource Energy |
| 293 |
|
| 17,173 |
Exelon Corp. |
| 444 |
|
| 18,914 |
NextEra Energy, Inc. |
| 107 |
|
| 17,872 |
NRG Energy, Inc. |
| 5,909 |
|
| 181,406 |
PG&E Corp. |
| 373 |
|
| 15,875 |
Pinnacle West Capital Corp. |
| 218 |
|
| 17,562 |
PPL Corp.(a) |
| 609 |
|
| 17,387 |
Public Service Enterprise Group, Inc. |
| 346 |
|
| 18,732 |
SCANA Corp. |
| 481 |
|
| 18,528 |
Sempra Energy |
| 158 |
|
| 18,345 |
Southern Co. (The) |
| 376 |
|
| 17,413 |
WEC Energy Group, Inc. |
| 277 |
|
| 17,908 |
Xcel Energy, Inc. |
| 378 |
|
| 17,267 |
Total Electric |
|
|
|
| 623,419 |
|
|
|
|
|
|
Electrical Components & Equipment — 0.4% |
|
|
| ||
Acuity Brands, Inc.(a) |
| 448 |
|
| 51,910 |
AMETEK, Inc. |
| 242 |
|
| 17,463 |
Emerson Electric Co. |
| 733 |
|
| 50,679 |
Total Electrical Components & Equipment |
|
|
|
| 120,052 |
Investments |
| Shares |
| Value | |
COMMON STOCKS (continued) |
| ||||
|
|
|
|
|
|
Electronics ��� 1.0% |
|
|
|
|
|
Agilent Technologies, Inc. |
| 264 |
| $ | 16,326 |
Allegion PLC(a) |
| 694 |
|
| 53,688 |
Amphenol Corp., Class A |
| 211 |
|
| 18,389 |
Corning, Inc. |
| 1,237 |
|
| 34,030 |
FLIR Systems, Inc. |
| 331 |
|
| 17,202 |
Fortive Corp. |
| 239 |
|
| 18,429 |
Garmin Ltd. |
| 299 |
|
| 18,239 |
Honeywell International, Inc. |
| 207 |
|
| 29,818 |
Mettler-Toledo International, Inc.* |
| 31 |
|
| 17,938 |
PerkinElmer, Inc.(a) |
| 428 |
|
| 31,342 |
TE Connectivity Ltd. |
| 486 |
|
| 43,769 |
Waters Corp.* |
| 91 |
|
| 17,617 |
Total Electronics |
|
|
|
| 316,787 |
|
|
|
|
|
|
Engineering & Construction — 0.7% |
|
|
| ||
Fluor Corp. |
| 1,171 |
|
| 57,122 |
Jacobs Engineering Group, Inc. |
| 2,415 |
|
| 153,328 |
nVent Electric PLC (United Kingdom)* |
| 659 |
|
| 16,541 |
Total Engineering & Construction |
|
|
|
| 226,991 |
|
|
|
|
|
|
Environmental Control — 0.5% |
|
| |||
Republic Services, Inc. |
| 576 |
|
| 39,375 |
Stericycle, Inc.* |
| 1,129 |
|
| 73,713 |
Waste Management, Inc. |
| 506 |
|
| 41,158 |
Total Environmental Control |
|
|
|
| 154,246 |
Food — 1.8% |
|
|
|
|
|
Campbell Soup Co.(a) |
| 418 |
|
| 16,946 |
Conagra Brands, Inc. |
| 886 |
|
| 31,657 |
General Mills, Inc. |
| 392 |
|
| 17,350 |
Hershey Co. (The) |
| 370 |
|
| 34,432 |
Hormel Foods Corp. |
| 477 |
|
| 17,749 |
JM Smucker Co. (The)(a) |
| 763 |
|
| 82,007 |
Kellogg Co.(a) |
| 283 |
|
| 19,773 |
Kraft Heinz Co. (The) |
| 786 |
|
| 49,376 |
Kroger Co. (The) |
| 678 |
|
| 19,289 |
McCormick & Co., Inc. |
| 165 |
|
| 19,155 |
Mondelez International, Inc., Class A |
| 1,761 |
|
| 72,201 |
Sysco Corp. |
| 1,126 |
|
| 76,895 |
Tyson Foods, Inc., Class A |
| 1,349 |
|
| 92,879 |
Total Food |
|
|
|
| 549,709 |
|
|
|
|
|
|
Gas — 0.1% |
|
|
|
|
|
NiSource, Inc. |
| 725 |
|
| 19,053 |
|
|
|
|
|
|
See accompanying Notes to Financial Statements.
51
ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)
June 30, 2018
Investments |
| Shares |
| Value | |
COMMON STOCKS (continued) |
| ||||
|
|
|
|
|
|
Hand/Machine Tools — 0.5% |
|
|
|
|
|
Snap-on, Inc.(a) |
| 556 |
| $ | 89,360 |
Stanley Black & Decker, Inc. |
| 395 |
|
| 52,460 |
Total Hand/Machine Tools |
|
|
|
| 141,820 |
|
|
|
|
|
|
Healthcare – Products — 2.0% |
|
| |||
Abbott Laboratories |
| 905 |
|
| 55,196 |
Align Technology, Inc.* |
| 162 |
|
| 55,427 |
Baxter International, Inc. |
| 609 |
|
| 44,969 |
Becton Dickinson and Co. |
| 282 |
|
| 67,556 |
Boston Scientific Corp.* |
| 1,015 |
|
| 33,190 |
Cooper Cos., Inc. (The) |
| 145 |
|
| 34,140 |
Danaher Corp. |
| 174 |
|
| 17,170 |
DENTSPLY SIRONA, Inc. |
| 684 |
|
| 29,939 |
Edwards Lifesciences Corp.* |
| 134 |
|
| 19,506 |
Henry Schein, Inc.*(a) |
| 431 |
|
| 31,308 |
Hologic, Inc.* |
| 1,203 |
|
| 47,819 |
IDEXX Laboratories, Inc.* |
| 89 |
|
| 19,397 |
Intuitive Surgical, Inc.* |
| 40 |
|
| 19,139 |
Medtronic PLC |
| 219 |
|
| 18,749 |
ResMed, Inc. |
| 180 |
|
| 18,644 |
Stryker Corp. |
| 106 |
|
| 17,899 |
Thermo Fisher Scientific, Inc. |
| 219 |
|
| 45,364 |
Varian Medical Systems, Inc.* |
| 139 |
|
| 15,807 |
Zimmer Biomet Holdings, Inc. |
| 158 |
|
| 17,608 |
Total Healthcare – Products |
|
|
|
| 608,827 |
|
|
|
|
|
|
Healthcare – Services — 3.9% |
|
| |||
Aetna, Inc. |
| 289 |
|
| 53,031 |
Anthem, Inc. |
| 356 |
|
| 84,739 |
Centene Corp.* |
| 980 |
|
| 120,746 |
Cigna Corp. |
| 531 |
|
| 90,243 |
DaVita, Inc.* |
| 2,145 |
|
| 148,949 |
Envision Healthcare Corp.* |
| 4,119 |
|
| 181,277 |
HCA Healthcare, Inc. |
| 1,174 |
|
| 120,452 |
Humana, Inc. |
| 190 |
|
| 56,550 |
IQVIA Holdings, Inc.* |
| 860 |
|
| 85,845 |
Laboratory Corp. of America Holdings* |
| 369 |
|
| 66,247 |
Quest Diagnostics, Inc. |
| 457 |
|
| 50,243 |
UnitedHealth Group, Inc. |
| 281 |
|
| 68,940 |
Universal Health Services, Inc., Class B |
| 643 |
|
| 71,656 |
Total Healthcare – Services |
|
|
|
| 1,198,918 |
|
|
|
|
|
|
Home Builders — 1.6% |
|
|
|
|
|
D.R. Horton, Inc. |
| 3,692 |
|
| 151,372 |
Lennar Corp., Class A |
| 3,122 |
|
| 163,905 |
Investments |
| Shares |
| Value | |
COMMON STOCKS (continued) |
| ||||
|
|
|
|
|
|
Home Builders (continued) |
|
|
|
|
|
PulteGroup, Inc.(a) |
| 5,987 |
| $ | 172,126 |
Total Home Builders |
|
|
|
| 487,403 |
|
|
|
|
|
|
Home Furnishings — 0.5% |
|
|
|
|
|
Leggett & Platt, Inc.(a) |
| 1,505 |
|
| 67,183 |
Whirlpool Corp. |
| 628 |
|
| 91,833 |
Total Home Furnishings |
|
|
|
| 159,016 |
|
|
|
|
|
|
Household Products/Wares — 0.2% |
|
|
| ||
Church & Dwight Co., Inc.(a) |
| 376 |
|
| 19,988 |
Clorox Co. (The)(a) |
| 149 |
|
| 20,152 |
Kimberly-Clark Corp. |
| 170 |
|
| 17,908 |
Total Household Products/Wares |
|
|
|
| 58,048 |
|
|
|
|
|
|
Housewares — 0.1% |
|
|
|
|
|
Newell Brands, Inc.(a) |
| 1,585 |
|
| 40,877 |
|
|
|
|
|
|
Insurance — 6.9% |
|
|
|
|
|
Aflac, Inc. |
| 1,278 |
|
| 54,980 |
Allstate Corp. (The) |
| 742 |
|
| 67,722 |
American International Group, Inc. |
| 3,245 |
|
| 172,050 |
Aon PLC |
| 562 |
|
| 77,090 |
Arthur J Gallagher & Co. |
| 844 |
|
| 55,096 |
Assurant, Inc. |
| 1,666 |
|
| 172,414 |
Berkshire Hathaway, Inc., Class B* |
| 89 |
|
| 16,612 |
Brighthouse Financial, Inc.* |
| 3,166 |
|
| 126,862 |
Chubb Ltd. |
| 514 |
|
| 65,288 |
Cincinnati Financial Corp. |
| 233 |
|
| 15,578 |
Everest Re Group Ltd. |
| 735 |
|
| 169,403 |
Hartford Financial Services Group, Inc. (The) |
| 2,823 |
|
| 144,340 |
Lincoln National Corp. |
| 1,768 |
|
| 110,058 |
Loews Corp. |
| 338 |
|
| 16,319 |
Marsh & McLennan Cos., Inc. |
| 211 |
|
| 17,296 |
MetLife, Inc. |
| 2,680 |
|
| 116,848 |
Principal Financial Group, Inc. |
| 1,292 |
|
| 68,411 |
Progressive Corp. (The) |
| 1,372 |
|
| 81,154 |
Prudential Financial, Inc. |
| 1,011 |
|
| 94,539 |
Torchmark Corp. |
| 747 |
|
| 60,813 |
Travelers Cos., Inc. (The) |
| 1,109 |
|
| 135,675 |
Unum Group |
| 1,379 |
|
| 51,009 |
Willis Towers Watson PLC |
| 480 |
|
| 72,768 |
XL Group Ltd (Bermuda) |
| 2,781 |
|
| 155,597 |
Total Insurance |
|
|
|
| 2,117,922 |
|
|
|
|
|
|
See accompanying Notes to Financial Statements.
52
ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)
June 30, 2018
Investments |
| Shares |
| Value | |
COMMON STOCKS (continued) |
| ||||
|
|
|
|
|
|
Internet — 2.2% |
|
|
|
|
|
Alphabet, Inc., Class A* |
| 71 |
| $ | 80,172 |
Alphabet, Inc., Class C* |
| 71 |
|
| 79,211 |
Amazon.com, Inc.* |
| 12 |
|
| 20,398 |
Booking Holdings, Inc.* |
| 24 |
|
| 48,650 |
eBay, Inc.* |
| 1,782 |
|
| 64,615 |
Expedia Group, Inc.(a) |
| 535 |
|
| 64,302 |
F5 Networks, Inc.* |
| 247 |
|
| 42,595 |
Facebook, Inc., Class A* |
| 704 |
|
| 136,801 |
Netflix, Inc.* |
| 57 |
|
| 22,312 |
Symantec Corp. |
| 1,821 |
|
| 37,604 |
TripAdvisor, Inc.*(a) |
| 436 |
|
| 24,290 |
VeriSign, Inc.* |
| 360 |
|
| 49,471 |
Total Internet |
|
|
|
| 670,421 |
|
|
|
|
|
|
Iron/Steel — 0.5% |
|
|
|
|
|
Nucor Corp. |
| 2,265 |
|
| 141,563 |
|
|
|
|
|
|
Leisure Time — 1.2% |
|
|
|
|
|
Carnival Corp. |
| 1,328 |
|
| 76,108 |
Harley-Davidson, Inc.(a) |
| 1,993 |
|
| 83,866 |
Norwegian Cruise Line Holdings Ltd.* |
| 2,113 |
|
| 99,839 |
Royal Caribbean Cruises Ltd. |
| 944 |
|
| 97,798 |
Total Leisure Time |
|
|
|
| 357,611 |
|
|
|
|
|
|
Lodging — 0.7% |
|
|
|
|
|
Hilton Worldwide Holdings, Inc. |
| 211 |
|
| 16,703 |
Marriott International, Inc., Class A |
| 484 |
|
| 61,274 |
Wyndham Destinations, Inc. |
| 148 |
|
| 6,552 |
Wyndham Hotels & Resorts, Inc. |
| 148 |
|
| 8,707 |
Wynn Resorts Ltd. |
| 759 |
|
| 127,011 |
Total Lodging |
|
|
|
| 220,247 |
|
|
|
|
|
|
Machinery – Construction & Mining — 0.1% |
|
|
| ||
Caterpillar, Inc. |
| 306 |
|
| 41,515 |
|
|
|
|
|
|
Machinery – Diversified — 0.8% |
|
|
|
|
|
Cummins, Inc. |
| 551 |
|
| 73,283 |
Deere & Co. |
| 125 |
|
| 17,475 |
Flowserve Corp. |
| 378 |
|
| 15,271 |
Pentair PLC (United Kingdom) |
| 659 |
|
| 27,731 |
Rockwell Automation, Inc. |
| 241 |
|
| 40,062 |
Roper Technologies, Inc. |
| 65 |
|
| 17,934 |
Xylem, Inc.(a) |
| 624 |
|
| 42,045 |
Total Machinery – Diversified |
|
|
|
| 233,801 |
|
|
|
|
|
|
Investments |
| Shares |
| Value | |
COMMON STOCKS (continued) |
| ||||
|
|
|
|
|
|
Media — 1.9% |
|
|
|
|
|
CBS Corp., Class B |
| 3,430 |
| $ | 192,835 |
Comcast Corp., Class A |
| 3,630 |
|
| 119,100 |
News Corp., Class A |
| 1,093 |
|
| 16,942 |
News Corp., Class B |
| 1,078 |
|
| 17,086 |
Twenty-First Century Fox, Inc., Class A |
| 1,451 |
|
| 72,100 |
Twenty-First Century Fox, Inc., Class B |
| 1,501 |
|
| 73,954 |
Viacom, Inc., Class B(a) |
| 546 |
|
| 16,467 |
Walt Disney Co. (The) |
| 739 |
|
| 77,455 |
Total Media |
|
|
|
| 585,939 |
|
|
|
|
|
|
Mining — 0.7% |
|
|
|
|
|
Freeport-McMoRan, Inc. |
| 11,448 |
|
| 197,592 |
Newmont Mining Corp. |
| 422 |
|
| 15,914 |
Total Mining |
|
|
|
| 213,506 |
|
|
|
|
|
|
Miscellaneous Manufacturing — 1.3% |
|
|
| ||
3M Co. |
| 181 |
|
| 35,606 |
AO Smith Corp. |
| 284 |
|
| 16,799 |
Dover Corp. |
| 862 |
|
| 63,098 |
Eaton Corp. PLC |
| 807 |
|
| 60,315 |
General Electric Co. |
| 1,236 |
|
| 16,822 |
Illinois Tool Works, Inc. |
| 299 |
|
| 41,424 |
Ingersoll-Rand PLC |
| 651 |
|
| 58,414 |
Parker-Hannifin Corp.(a) |
| 414 |
|
| 64,522 |
Textron, Inc. |
| 846 |
|
| 55,760 |
Total Miscellaneous Manufacturing |
|
|
|
| 412,760 |
|
|
|
|
|
|
Office/Business Equipment — 0.3% |
|
|
| ||
Xerox Corp. |
| 3,871 |
|
| 92,904 |
|
|
|
|
|
|
Oil & Gas — 8.2% |
|
|
|
|
|
Anadarko Petroleum Corp. |
| 1,170 |
|
| 85,703 |
Andeavor |
| 1,517 |
|
| 199,000 |
Apache Corp.(a) |
| 2,948 |
|
| 137,819 |
Cabot Oil & Gas Corp. |
| 6,885 |
|
| 163,863 |
Chevron Corp. |
| 1,292 |
|
| 163,348 |
Cimarex Energy Co.(a) |
| 1,740 |
|
| 177,028 |
Concho Resources, Inc.*(a) |
| 483 |
|
| 66,823 |
ConocoPhillips |
| 265 |
|
| 18,449 |
Devon Energy Corp. |
| 1,944 |
|
| 85,458 |
EOG Resources, Inc. |
| 1,120 |
|
| 139,362 |
EQT Corp. |
| 1,824 |
|
| 100,648 |
Exxon Mobil Corp. |
| 1,299 |
|
| 107,466 |
Marathon Oil Corp. |
| 970 |
|
| 20,234 |
Marathon Petroleum Corp. |
| 1,910 |
|
| 134,006 |
See accompanying Notes to Financial Statements.
53
ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)
June 30, 2018
Investments |
| Shares |
| Value | |
COMMON STOCKS (continued) |
| ||||
|
|
|
|
|
|
Oil & Gas (continued) |
|
|
|
|
|
Newfield Exploration Co.* |
| 6,185 |
| $ | 187,096 |
Noble Energy, Inc. |
| 2,458 |
|
| 86,718 |
Phillips 66 |
| 1,595 |
|
| 179,134 |
Pioneer Natural Resources Co. |
| 534 |
|
| 101,054 |
Range Resources Corp.(a) |
| 11,756 |
|
| 196,678 |
Valero Energy Corp. |
| 1,517 |
|
| 168,129 |
Total Oil & Gas |
|
|
|
| 2,518,016 |
|
|
|
|
|
|
Oil & Gas Services — 1.1% |
|
|
|
|
|
Apergy Corp.*(a) |
| 431 |
|
| 17,994 |
Baker Hughes a GE Co.(a) |
| 2,178 |
|
| 71,939 |
Halliburton Co. |
| 3,075 |
|
| 138,560 |
National Oilwell Varco, Inc.(a) |
| 455 |
|
| 19,747 |
Schlumberger Ltd. |
| 1,380 |
|
| 92,502 |
Total Oil & Gas Services |
|
|
|
| 340,742 |
|
|
|
|
|
|
Packaging & Containers — 0.7% |
|
|
| ||
Ball Corp.(a) |
| 710 |
|
| 25,241 |
Packaging Corp. of America |
| 685 |
|
| 76,576 |
Sealed Air Corp.(a) |
| 394 |
|
| 16,725 |
WestRock Co. |
| 1,774 |
|
| 101,153 |
Total Packaging & Containers |
|
|
|
| 219,695 |
|
|
|
|
|
|
Pharmaceuticals — 3.1% |
|
|
|
|
|
AbbVie, Inc. |
| 1,629 |
|
| 150,927 |
Allergan PLC |
| 419 |
|
| 69,856 |
AmerisourceBergen Corp. |
| 191 |
|
| 16,286 |
Bristol-Myers Squibb Co. |
| 1,168 |
|
| 64,637 |
Cardinal Health, Inc. |
| 1,266 |
|
| 61,819 |
CVS Health Corp. |
| 1,530 |
|
| 98,455 |
Eli Lilly & Co. |
| 713 |
|
| 60,840 |
Express Scripts Holding Co.* |
| 1,956 |
|
| 151,023 |
Johnson & Johnson |
| 138 |
|
| 16,745 |
McKesson Corp. |
| 225 |
|
| 30,015 |
Merck & Co., Inc. |
| 293 |
|
| 17,785 |
Mylan NV* |
| 2,833 |
|
| 102,385 |
Perrigo Co. PLC |
| 448 |
|
| 32,664 |
Pfizer, Inc. |
| 1,430 |
|
| 51,880 |
Zoetis, Inc. |
| 206 |
|
| 17,549 |
Total Pharmaceuticals |
|
|
|
| 942,866 |
|
|
|
|
|
|
Pipelines — 0.9% |
|
|
|
|
|
Kinder Morgan, Inc. |
| 4,886 |
|
| 86,336 |
ONEOK, Inc. |
| 292 |
|
| 20,390 |
Williams Cos., Inc. (The) |
| 5,659 |
|
| 153,415 |
Total Pipelines |
|
|
|
| 260,141 |
Investments |
| Shares |
| Value | |
COMMON STOCKS (continued) |
| ||||
|
|
|
|
|
|
Real Estate — 0.3% |
|
|
|
|
|
CBRE Group, Inc., Class A* |
| 1,765 |
| $ | 84,261 |
|
|
|
|
|
|
REITS — 1.6% |
|
|
|
|
|
Alexandria Real Estate Equities, Inc. |
| 143 |
|
| 18,042 |
American Tower Corp. |
| 127 |
|
| 18,310 |
AvalonBay Communities, Inc. |
| 107 |
|
| 18,392 |
Boston Properties, Inc. |
| 148 |
|
| 18,562 |
Crown Castle International Corp. |
| 164 |
|
| 17,683 |
Digital Realty Trust, Inc. |
| 171 |
|
| 19,080 |
Equinix, Inc. |
| 42 |
|
| 18,055 |
Equity Residential |
| 288 |
|
| 18,343 |
Essex Property Trust, Inc. |
| 73 |
|
| 17,452 |
Extra Space Storage, Inc. |
| 201 |
|
| 20,062 |
Federal Realty Investment Trust |
| 155 |
|
| 19,615 |
HCP, Inc. |
| 783 |
|
| 20,217 |
Host Hotels & Resorts, Inc. |
| 891 |
|
| 18,773 |
Iron Mountain, Inc.(a) |
| 513 |
|
| 17,960 |
Kimco Realty Corp. |
| 1,308 |
|
| 22,223 |
Mid-America Apartment Communities, Inc. |
| 194 |
|
| 19,530 |
Prologis, Inc. |
| 269 |
|
| 17,671 |
Public Storage |
| 90 |
|
| 20,417 |
Realty Income Corp. |
| 351 |
|
| 18,880 |
Regency Centers Corp. |
| 310 |
|
| 19,245 |
SBA Communications Corp.* |
| 105 |
|
| 17,338 |
Simon Property Group, Inc. |
| 118 |
|
| 20,083 |
Ventas, Inc. |
| 369 |
|
| 21,015 |
Welltower, Inc. |
| 344 |
|
| 21,565 |
Weyerhaeuser Co. |
| 477 |
|
| 17,391 |
Total REITS |
|
|
|
| 475,904 |
|
|
|
|
|
|
Retail — 6.7% |
|
|
|
|
|
Advance Auto Parts, Inc. |
| 799 |
|
| 108,424 |
AutoZone, Inc.* |
| 191 |
|
| 128,148 |
Best Buy Co., Inc. |
| 1,262 |
|
| 94,120 |
CarMax, Inc.*(a) |
| 1,247 |
|
| 90,869 |
Chipotle Mexican Grill, Inc.* |
| 51 |
|
| 22,000 |
Costco Wholesale Corp. |
| 89 |
|
| 18,599 |
Darden Restaurants, Inc. |
| 475 |
|
| 50,854 |
Dollar General Corp. |
| 942 |
|
| 92,881 |
Dollar Tree, Inc.* |
| 767 |
|
| 65,195 |
Foot Locker, Inc. |
| 1,450 |
|
| 76,343 |
Gap, Inc. (The) |
| 2,274 |
|
| 73,655 |
Genuine Parts Co.(a) |
| 410 |
|
| 37,634 |
Home Depot, Inc. (The) |
| 387 |
|
| 75,504 |
Kohl’s Corp.(a) |
| 587 |
|
| 42,792 |
See accompanying Notes to Financial Statements.
54
ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)
June 30, 2018
Investments |
| Shares |
| Value | |
COMMON STOCKS (continued) |
| ||||
|
|
|
|
|
|
Retail (continued) |
|
|
|
|
|
L Brands, Inc. |
| 2,121 |
| $ | 78,222 |
Lowe’s Cos., Inc. |
| 1,604 |
|
| 153,294 |
Macy’s, Inc.(a) |
| 3,072 |
|
| 114,985 |
McDonald’s Corp. |
| 111 |
|
| 17,393 |
Nordstrom, Inc.(a) |
| 357 |
|
| 18,485 |
O’Reilly Automotive, Inc.* |
| 480 |
|
| 131,314 |
Ross Stores, Inc. |
| 707 |
|
| 59,918 |
Starbucks Corp. |
| 949 |
|
| 46,359 |
Tapestry, Inc. |
| 976 |
|
| 45,589 |
Target Corp. |
| 243 |
|
| 18,497 |
Tiffany & Co. |
| 172 |
|
| 22,635 |
TJX Cos., Inc. (The) |
| 637 |
|
| 60,630 |
Tractor Supply Co. |
| 1,238 |
|
| 94,695 |
Ulta Beauty, Inc.* |
| 309 |
|
| 72,139 |
Walgreens Boots Alliance, Inc. |
| 1,499 |
|
| 89,962 |
Walmart, Inc. |
| 199 |
|
| 17,044 |
Yum! Brands, Inc. |
| 204 |
|
| 15,957 |
Total Retail |
|
|
|
| 2,034,136 |
|
|
|
|
|
|
Savings & Loans — 0.1% |
|
|
|
|
|
People’s United Financial, Inc.(a) |
| 939 |
|
| 16,987 |
|
|
|
|
|
|
Semiconductors — 4.7% |
|
|
|
|
|
Advanced Micro Devices, Inc.*(a) |
| 1,760 |
|
| 26,382 |
Applied Materials, Inc. |
| 2,829 |
|
| 130,672 |
Broadcom, Inc. |
| 350 |
|
| 84,924 |
Intel Corp. |
| 950 |
|
| 47,225 |
IPG Photonics Corp.* |
| 80 |
|
| 17,650 |
KLA-Tencor Corp. |
| 1,518 |
|
| 155,641 |
Lam Research Corp. |
| 900 |
|
| 155,565 |
Microchip Technology, Inc.(a) |
| 1,075 |
|
| 97,771 |
Micron Technology, Inc.* |
| 3,848 |
|
| 201,789 |
NVIDIA Corp. |
| 157 |
|
| 37,193 |
Qorvo, Inc.* |
| 1,965 |
|
| 157,534 |
QUALCOMM, Inc. |
| 1,615 |
|
| 90,634 |
Skyworks Solutions, Inc. |
| 1,554 |
|
| 150,194 |
Texas Instruments, Inc. |
| 463 |
|
| 51,046 |
Xilinx, Inc. |
| 273 |
|
| 17,816 |
Total Semiconductors |
|
|
|
| 1,422,036 |
|
|
|
|
|
|
Shipbuilding — 0.5% |
|
|
|
|
|
Huntington Ingalls Industries, Inc. |
| 681 |
|
| 147,634 |
|
|
|
|
|
|
Software — 2.2% |
|
|
|
|
|
Activision Blizzard, Inc. |
| 761 |
|
| 58,079 |
Adobe Systems, Inc.* |
| 221 |
|
| 53,882 |
Akamai Technologies, Inc.* |
| 246 |
|
| 18,015 |
ANSYS, Inc.* |
| 109 |
|
| 18,986 |
Investments |
| Shares |
| Value | |
COMMON STOCKS (continued) |
| ||||
|
|
|
|
|
|
Software (continued) |
|
|
|
|
|
Autodesk, Inc.* |
| 140 |
| $ | 18,353 |
CA, Inc. |
| 504 |
|
| 17,968 |
Cadence Design Systems, Inc.* |
| 438 |
|
| 18,970 |
Cerner Corp.* |
| 651 |
|
| 38,923 |
Citrix Systems, Inc.* |
| 302 |
|
| 31,662 |
Electronic Arts, Inc.* |
| 319 |
|
| 44,985 |
Fidelity National Information Services, Inc. |
| 639 |
|
| 67,753 |
Fiserv, Inc.* |
| 247 |
|
| 18,300 |
Intuit, Inc. |
| 98 |
|
| 20,022 |
Microsoft Corp. |
| 188 |
|
| 18,539 |
MSCI, Inc. |
| 117 |
|
| 19,355 |
Oracle Corp. |
| 913 |
|
| 40,227 |
Paychex, Inc. |
| 289 |
|
| 19,753 |
Red Hat, Inc.* |
| 109 |
|
| 14,646 |
salesforce.com, Inc.* |
| 148 |
|
| 20,187 |
Synopsys, Inc.* |
| 206 |
|
| 17,627 |
Take-Two Interactive Software, Inc.* |
| 739 |
|
| 87,468 |
Total Software |
|
|
|
| 663,700 |
|
|
|
|
|
|
Telecommunications — 0.8% |
|
|
|
|
|
AT&T, Inc. |
| 3,027 |
|
| 97,197 |
Cisco Systems, Inc. |
| 399 |
|
| 17,169 |
Juniper Networks, Inc.(a) |
| 3,251 |
|
| 89,142 |
Motorola Solutions, Inc. |
| 158 |
|
| 18,386 |
Verizon Communications, Inc. |
| 347 |
|
| 17,458 |
Total Telecommunications |
|
|
|
| 239,352 |
|
|
|
|
|
|
Textiles — 0.2% |
|
|
|
|
|
Mohawk Industries, Inc.* |
| 320 |
|
| 68,566 |
|
|
|
|
|
|
Toys/Games/Hobbies — 0.2% |
|
|
|
|
|
Hasbro, Inc.(a) |
| 679 |
|
| 62,678 |
|
|
|
|
|
|
Transportation — 1.8% |
|
|
|
|
|
C.H. Robinson Worldwide, Inc. |
| 187 |
|
| 15,644 |
CSX Corp. |
| 1,374 |
|
| 87,634 |
Expeditors International of Washington, Inc. |
| 271 |
|
| 19,810 |
FedEx Corp. |
| 335 |
|
| 76,065 |
JB Hunt Transport Services, Inc. |
| 602 |
|
| 73,173 |
Kansas City Southern |
| 620 |
|
| 65,695 |
Norfolk Southern Corp. |
| 550 |
|
| 82,979 |
Union Pacific Corp. |
| 565 |
|
| 80,049 |
United Parcel Service, Inc., Class B |
| 541 |
|
| 57,471 |
Total Transportation |
|
|
|
| 558,520 |
See accompanying Notes to Financial Statements.
55
ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)
June 30, 2018
Investments |
| Shares/ |
| Value | ||
COMMON STOCKS (continued) |
|
| ||||
|
|
|
|
|
|
|
Water — 0.1% |
|
|
|
|
|
|
American Water Works Co., Inc. |
|
| 205 |
| $ | 17,503 |
Total Common Stocks |
|
|
|
|
|
|
|
|
|
|
| 30,015,912 | |
|
|
|
|
|
|
|
MONEY MARKET FUND — 1.9% |
|
|
| |||
BlackRock Liquidity Funds FedFund Portfolio, Institutional Class, 1.80%(b) (Cost $587,044) |
|
| 587,044 |
|
| 587,044 |
|
|
|
|
|
|
|
REPURCHASE AGREEMENTS — 1.0%(c) |
|
|
| |||
NBC Global Finance Ltd., dated 06/29/18, due 07/02/18, 1.95%, total to be received $250,041, (collateralized by various U.S. Government Agency Obligations, |
| $ | 250,000 |
|
| 250,000 |
Nomura Securities International, Inc., dated 06/29/18, due 07/02/18, 2.12%, total to be received $42,720, (collateralized by various U.S. Government Agency Obligations, 0.00% – 9.00%, 07/15/18 – 05/20/68, totaling $43,404) |
|
| 42,712 |
|
| 42,712 |
Total Repurchase Agreements |
|
|
|
|
|
|
|
|
|
|
| 292,712 | |
|
|
|
|
|
|
|
Total Investments — 101.1% |
|
|
|
|
|
|
|
|
|
|
| 30,895,668 | |
|
|
|
|
|
|
|
Liabilities in Excess of Other Assets — (1.1%) |
|
|
|
|
| (322,402) |
Net Assets — 100.0% |
|
|
|
| $ | 30,573,266 |
____________
PLC — Public Limited Company
REITS — Real Estate Investment Trusts
* Non-income producing security.
(a) All or a portion of security is on loan. The aggregate market value of the securities on loan is $3,016,413; the aggregate market value of the collateral held by the fund is $3,082,028. The aggregate market value of the collateral includes non-cash U.S. Treasury securities collateral having a value of $2,789,316.
(b) Rate shown reflects the 7-day yield as of June 30, 2018.
(c) Collateral received from brokers for securities lending was invested in these short-term investments.
SUMMARY OF SCHEDULE OF INVESTMENTS
|
| % of | |
Advertising |
| 0.3 | % |
Aerospace/Defense |
| 1.6 |
|
Agriculture |
| 0.8 |
|
Airlines |
| 2.1 |
|
Apparel |
| 0.9 |
|
Auto Manufacturers |
| 1.5 |
|
Auto Parts & Equipment |
| 0.7 |
|
Banks |
| 6.9 |
|
Beverages |
| 0.7 |
|
Biotechnology |
| 1.9 |
|
Building Materials |
| 1.7 |
|
Chemicals |
| 1.4 |
|
Commercial Services |
| 3.1 |
|
Computers |
| 2.1 |
|
Cosmetics/Personal Care |
| 0.3 |
|
Distribution/Wholesale |
| 0.8 |
|
Diversified Financial Services |
| 6.3 |
|
Electric |
| 2.0 |
|
Electrical Components & Equipment |
| 0.4 |
|
Electronics |
| 1.0 |
|
Engineering & Construction |
| 0.7 |
|
Environmental Control |
| 0.5 |
|
Food |
| 1.8 |
|
Gas |
| 0.1 |
|
Hand/Machine Tools |
| 0.5 |
|
Healthcare – Products |
| 2.0 |
|
Healthcare – Services |
| 3.9 |
|
Home Builders |
| 1.6 |
|
Home Furnishings |
| 0.5 |
|
Household Products/Wares |
| 0.2 |
|
Housewares |
| 0.1 |
|
Insurance |
| 6.9 |
|
Internet |
| 2.2 |
|
Iron/Steel |
| 0.5 |
|
Leisure Time |
| 1.2 |
|
Lodging |
| 0.7 |
|
Machinery – Construction & Mining |
| 0.1 |
|
Machinery – Diversified |
| 0.8 |
|
Media |
| 1.9 |
|
Mining |
| 0.7 |
|
Miscellaneous Manufacturing |
| 1.3 |
|
Office/Business Equipment |
| 0.3 |
|
Oil & Gas |
| 8.2 |
|
Oil & Gas Services |
| 1.1 |
|
Packaging & Containers |
| 0.7 |
|
Pharmaceuticals |
| 3.1 |
|
See accompanying Notes to Financial Statements.
56
ADVISORSHARES MADRONA DOMESTIC ETF
Schedule of Investments (continued)
June 30, 2018
SUMMARY OF SCHEDULE OF INVESTMENTS
(continued)
|
| % of | |
Pipelines |
| 0.9 | % |
Real Estate |
| 0.3 |
|
REITS |
| 1.6 |
|
Retail |
| 6.7 |
|
Savings & Loans |
| 0.1 |
|
Semiconductors |
| 4.7 |
|
Shipbuilding |
| 0.5 |
|
Software |
| 2.2 |
|
Telecommunications |
| 0.8 |
|
Textiles |
| 0.2 |
|
Toys/Games/Hobbies |
| 0.2 |
|
Transportation |
| 1.8 |
|
Water |
| 0.1 |
|
Money Market Fund |
| 1.9 |
|
Repurchase Agreements |
| 1.0 |
|
Total Investments |
| 101.1 |
|
Liabilities in Excess of Other Assets |
| (1.1 | ) |
Net Assets |
| 100.0 | % |
See accompanying Notes to Financial Statements.
57
ADVISORSHARES MADRONA GLOBAL BOND ETF
Schedule of Investments
June 30, 2018
Investments |
| Shares/ |
| Value | ||
EXCHANGE TRADED FUNDS — 98.3% |
|
|
| |||
|
|
|
| |||
Asset Allocation Fund — 13.1% |
|
|
| |||
SPDR Bloomberg Barclays Convertible Securities ETF |
|
| 45,505 |
| $ | 2,412,675 |
|
|
|
|
|
|
|
Debt Fund — 85.2% |
|
|
|
|
|
|
Invesco Emerging Markets Sovereign Debt ETF |
|
| 19,656 |
|
| 521,277 |
Invesco Financial Preferred ETF(a) |
|
| 118,216 |
|
| 2,182,267 |
Invesco Fundamental Investment Grade Corporate Bonds ETF(a) |
|
| 131,826 |
|
| 3,257,473 |
Invesco National AMT-Free Municipal Bond ETF(a) |
|
| 21,686 |
|
| 544,752 |
Invesco Senior Loan ETF |
|
| 62,700 |
|
| 1,435,830 |
Invesco Taxable Municipal Bond |
|
| 24,455 |
|
| 723,990 |
Invesco Variable Rate Preferred ETF(a) |
|
| 36,136 |
|
| 897,980 |
Peritus High Yield ETF(a) |
|
| 59,043 |
|
| 2,160,384 |
Vanguard Intermediate-Term Treasury ETF |
|
| 8,728 |
|
| 546,809 |
Vanguard Mortgage-Backed Securities ETF |
|
| 24,776 |
|
| 1,273,734 |
WisdomTree Emerging Markets Corporate Bond Fund |
|
| 30,847 |
|
| 2,122,891 |
Total Debt Fund |
|
|
|
|
| 15,667,387 |
Total Exchange Traded Funds |
|
|
|
|
|
|
|
|
|
|
| 18,080,062 | |
|
|
|
|
|
|
|
MONEY MARKET FUND — 1.9% |
|
|
| |||
BlackRock Liquidity Funds FedFund Portfolio, Institutional Class, 1.80%(b) (Cost $358,862) |
|
| 358,862 |
|
| 358,862 |
|
|
|
|
|
|
|
REPURCHASE AGREEMENTS — 19.6%(c) |
|
|
| |||
Deutsche Bank Securities, Inc., dated 06/29/18, due 07/02/18, 2.12%, total to be received $838,574, (collateralized by various U.S. Government Agency Obligations, |
| $ | 838,426 |
|
| 838,426 |
NatWest Markets PLC, dated 06/29/18, due 07/02/18, 2.09%, total to be received $248,414, (collateralized by various U.S. Government Agency Obligations, |
|
| 248,371 |
|
| 248,371 |
Investments |
| Shares/ |
| Value | ||
REPURCHASE AGREEMENTS (continued) | ||||||
|
|
|
|
|
|
|
NBC Global Finance Ltd., dated 06/29/18, due 07/02/18, 1.95%, total to be received $838,562, (collateralized by various U.S. Government Agency Obligations, |
| $ | 838,426 |
| $ | 838,426 |
Nomura Securities International, Inc., dated 06/29/18, due 07/02/18, 2.12%, total to be received $838,574, (collateralized by various U.S. Government Agency Obligations, |
|
| 838,426 |
|
| 838,426 |
RBC Dominion Securities, Inc., dated 06/29/18, due 07/02/18, 2.11%, total to be received $838,573, (collateralized by various U.S. Government Agency Obligations, |
|
| 838,426 |
|
| 838,426 |
Total Repurchase Agreements |
|
|
| |||
|
|
|
|
| 3,602,075 | |
|
|
|
|
|
|
|
Total Investments — 119.8% |
|
|
|
|
|
|
|
|
|
|
| 22,040,999 | |
|
|
|
|
|
|
|
Liabilities in Excess of Other Assets — (19.8%) |
|
|
|
|
| (3,635,654) |
Net Assets — 100.0% |
|
|
|
| $ | 18,405,345 |
____________
ETF — Exchange Traded Fund
PLC — Public Limited Company
(a) All or a portion of security is on loan. The aggregate market value of the securities on loan is $3,510,085; the aggregate market value of the collateral held by the fund is $3,602,075.
(b) Rate shown reflects the 7-day yield as of June 30, 2018.
(c) Collateral received from brokers for securities lending was invested in these short-term investments.
See accompanying Notes to Financial Statements.
58
ADVISORSHARES MADRONA GLOBAL BOND ETF
Schedule of Investments (continued)
June 30, 2018
SUMMARY OF SCHEDULE OF INVESTMENTS
|
| % of | |
Asset Allocation Fund |
| 13.1 | % |
Debt Fund |
| 85.2 |
|
Money Market Fund |
| 1.9 |
|
Repurchase Agreements |
| 19.6 |
|
Total Investments |
| 119.8 |
|
Liabilities in Excess of Other Assets |
| (19.8 | ) |
Net Assets |
| 100.0 | % |
Affiliated holdings are funds which are managed by the Trust or an affiliate of the Trust. Transactions with affiliated companies during the year ended June 30, 2018 were as follows:
Affiliated Fund Name |
| Value at 6/30/2017 |
| Purchases/ Additions |
| Sales/ Reductions |
| Realized Gain (Loss) |
| Change in |
| Value at 6/30/2018 |
| Dividend Income | |||||||||
Peritus High Yield ETF(a) |
| $ | 2,226,968 |
| $ | 1,545,193 |
| $ | (1,624,724 | ) |
| $ | 55,370 |
| $ | (42,423 | ) |
| $ | 2,160,384 |
| $ | 104,369 |
____________
(a) Effective June 25, 2018, this security was no longer an affiliate of the Fund. All values in the above table were considered while the Fund was affiliated.
See accompanying Notes to Financial Statements.
59
ADVISORSHARES MADRONA INTERNATIONAL ETF
Schedule of Investments
June 30, 2018
Investments |
| Shares |
| Value | |
COMMON STOCKS — 96.9% |
|
| |||
|
|
|
|
|
|
ARGENTINA — 3.0% |
|
|
|
|
|
Banco Macro SA(a) |
| 1,290 |
| $ | 75,839 |
Empresa Distribuidora Y Comercializadora Norte*(a)(b) |
| 2,442 |
|
| 79,341 |
Grupo Financiero Galicia SA(a) |
| 1,940 |
|
| 63,981 |
Grupo Supervielle SA(a)(b) |
| 4,732 |
|
| 50,065 |
Loma Negra Cia Industrial Argentina SA*(a) |
| 5,793 |
|
| 59,436 |
Pampa Energia SA*(a) |
| 2,202 |
|
| 78,765 |
Total Argentina |
|
|
|
| 407,427 |
|
|
|
|
|
|
BELGIUM — 4.9% |
|
|
|
|
|
Anheuser-Busch InBev SA/NV(a)(b) |
| 6,636 |
|
| 668,643 |
|
|
|
|
|
|
BRAZIL — 6.3% |
|
|
|
|
|
Ambev SA(a) |
| 14,943 |
|
| 69,186 |
Banco Bradesco SA(a) |
| 11,965 |
|
| 82,080 |
Banco Santander Brasil SA(a) |
| 9,643 |
|
| 72,322 |
Cia de Saneamento Basico do Estado de Sao Paulo(a) |
| 11,901 |
|
| 71,525 |
Embraer SA(a) |
| 4,123 |
|
| 102,663 |
Fibria Celulose SA(a)(b) |
| 5,776 |
|
| 107,376 |
Itau Unibanco Holding SA(a) |
| 7,502 |
|
| 77,871 |
Telefonica Brasil SA(a) |
| 7,776 |
|
| 92,301 |
TIM Participacoes SA(a)(b) |
| 4,735 |
|
| 79,832 |
Vale SA(a) |
| 8,410 |
|
| 107,816 |
Total Brazil |
|
|
|
| 862,972 |
|
|
|
|
|
|
CANADA — 3.7% |
|
|
|
|
|
Canadian Solar, Inc.* |
| 15,565 |
|
| 190,516 |
CGI Group, Inc., Class A* |
| 689 |
|
| 43,628 |
Magna International, Inc. |
| 2,711 |
|
| 157,590 |
Manulife Financial Corp. |
| 6,397 |
|
| 114,954 |
Total Canada |
|
|
|
| 506,688 |
|
|
|
|
|
|
CHILE — 0.5% |
|
|
|
|
|
Latam Airlines Group SA(a)(b) |
| 6,623 |
|
| 65,501 |
|
|
|
|
|
|
CHINA — 17.0% |
|
|
|
|
|
58.com, Inc.*(a) |
| 775 |
|
| 53,739 |
Alibaba Group Holding Ltd.*(a) |
| 3,040 |
|
| 564,011 |
Autohome, Inc.(a) |
| 736 |
|
| 74,336 |
Baidu, Inc.*(a) |
| 222 |
|
| 53,946 |
Baozun, Inc.*(a)(b) |
| 1,259 |
|
| 68,867 |
Bitauto Holdings Ltd.*(a)(b) |
| 2,995 |
|
| 71,221 |
Bright Scholar Education Holdings Ltd.*(a) |
| 3,686 |
|
| 61,298 |
Changyou.com Ltd.(a) |
| 4,596 |
|
| 76,615 |
Ctrip.Com International Ltd.*(a)(b) |
| 1,223 |
|
| 58,252 |
Daqo New Energy Corp.*(a) |
| 1,117 |
|
| 39,698 |
Investments |
| Shares |
| Value | |
COMMON STOCKS (continued) |
|
|
| ||
|
|
|
|
|
|
CHINA (continued) |
|
|
|
|
|
Fang Holdings Ltd.*(a) |
| 16,055 |
| $ | 62,293 |
Huaneng Power International, Inc.(a)(b) |
| 2,984 |
|
| 78,330 |
Huazhu Group Ltd.(a) |
| 1,316 |
|
| 55,259 |
JD.Com, Inc.*(a)(b) |
| 1,208 |
|
| 47,052 |
JinkoSolar Holding Co., Ltd.*(a)(b) |
| 3,815 |
|
| 52,533 |
Jumei International Holding Ltd.*(a) |
| 34,790 |
|
| 89,758 |
LexinFintech Holdings Ltd.*(a)(b) |
| 3,276 |
|
| 40,131 |
Link Motion, Inc.*(a)(b) |
| 50,133 |
|
| 57,152 |
Momo, Inc.*(a) |
| 2,433 |
|
| 105,836 |
NetEase, Inc.(a) |
| 283 |
|
| 71,506 |
New Oriental Education & Technology Group, Inc.(a) |
| 733 |
|
| 69,386 |
Noah Holdings Ltd.*(a) |
| 1,238 |
|
| 64,562 |
Tarena International, Inc.(a)(b) |
| 8,941 |
|
| 67,683 |
Vipshop Holdings Ltd.*(a)(b) |
| 4,984 |
|
| 54,076 |
Weibo Corp.*(a)(b) |
| 419 |
|
| 37,190 |
Yirendai Ltd.(a)(b) |
| 2,633 |
|
| 55,872 |
YY, Inc.*(a) |
| 877 |
|
| 88,112 |
ZTO Express Cayman, Inc.(a)(b) |
| 4,948 |
|
| 98,960 |
Total China |
|
|
|
| 2,317,674 |
|
|
|
|
|
|
FRANCE — 10.2% |
|
|
|
|
|
Criteo SA*(a)(b) |
| 22,919 |
|
| 752,889 |
Sanofi(a) |
| 15,920 |
|
| 636,959 |
Total France |
|
|
|
| 1,389,848 |
|
|
|
|
|
|
GERMANY — 4.3% |
|
|
|
|
|
Fresenius Medical Care AG & Co. KGaA(a)(b) |
| 11,649 |
|
| 586,527 |
|
|
|
|
|
|
HONG KONG — 3.5% |
|
|
|
|
|
Melco Resorts Entertainment Ltd.(a) |
| 16,939 |
|
| 474,292 |
|
|
|
|
|
|
INDIA — 0.6% |
|
|
|
|
|
HDFC Bank Ltd.(a) |
| 439 |
|
| 46,104 |
ICICI Bank Ltd.*(a) |
| 4,677 |
|
| 37,556 |
Total India |
|
|
|
| 83,660 |
|
|
|
|
|
|
IRELAND — 6.0% |
|
|
|
|
|
Ryanair Holdings PLC*(a)(b) |
| 4,244 |
|
| 484,792 |
Trinity Biotech PLC*(a)(b) |
| 67,025 |
|
| 335,125 |
Total Ireland |
|
|
|
| 819,917 |
|
|
|
|
|
|
LUXEMBOURG — 6.0% |
|
|
|
|
|
Tenaris SA(a) |
| 11,521 |
|
| 419,249 |
Ternium SA(a) |
| 11,626 |
|
| 404,818 |
Total Luxembourg |
|
|
|
| 824,067 |
See accompanying Notes to Financial Statements.
60
ADVISORSHARES MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
June 30, 2018
Investments |
|
|
| Value | |
COMMON STOCKS (continued) |
|
|
| ||
|
|
|
|
|
|
MEXICO — 1.0% |
|
|
|
|
|
America Movil SAB de CV, Class L(a) |
| 1,754 |
| $ | 29,222 |
Cemex SAB de CV*(a) |
| 6,275 |
|
| 41,164 |
Coca-Cola Femsa SAB de CV(a) |
| 534 |
|
| 30,134 |
Grupo Televisa SAB(a) |
| 2,052 |
|
| 38,885 |
Total Mexico |
|
|
|
| 139,405 |
|
|
|
|
|
|
NETHERLANDS — 6.0% |
|
|
|
|
|
Royal Dutch Shell PLC, Class A(a) |
| 6,008 |
|
| 415,934 |
Royal Dutch Shell PLC, |
| 5,535 |
|
| 402,118 |
Total Netherlands |
|
|
|
| 818,052 |
|
|
|
|
|
|
PERU — 0.2% |
|
|
|
|
|
Cia de Minas Buenaventura SAA(a) |
| 1,888 |
|
| 25,733 |
|
|
|
|
|
|
RUSSIA — 0.2% |
|
|
|
|
|
Mobile TeleSystems PJSC(a) |
| 2,704 |
|
| 23,876 |
|
|
|
|
|
|
SOUTH AFRICA — 0.2% |
|
|
|
|
|
MiX Telematics Ltd.(a) |
| 1,541 |
|
| 27,307 |
|
|
|
|
|
|
SOUTH KOREA — 0.2% |
|
|
|
|
|
Hanwha Q CELLS Co. Ltd.*(a)(b) |
| 3,400 |
|
| 21,964 |
|
|
|
|
|
|
SWEDEN — 2.8% |
|
|
|
|
|
Telefonaktiebolaget LM Ericsson(a) |
| 49,840 |
|
| 382,273 |
|
|
|
|
|
|
SWITZERLAND — 2.7% |
|
|
|
|
|
STMicroelectronics NV(c) |
| 16,323 |
|
| 361,065 |
|
|
|
|
|
|
TAIWAN — 5.0% |
|
|
|
|
|
Silicon Motion Technology Corp.(a) |
| 12,460 |
|
| 659,009 |
Taiwan Semiconductor Manufacturing Co., Ltd.(a) |
| 519 |
|
| 18,975 |
Total Taiwan |
|
|
|
| 677,984 |
|
|
|
|
|
|
UNITED KINGDOM — 4.7% |
|
|
|
|
|
AstraZeneca PLC(a)(b) |
| 8,385 |
|
| 294,397 |
BP PLC(a) |
| 7,582 |
|
| 346,194 |
Total United Kingdom |
|
|
|
| 640,591 |
|
|
|
|
|
|
UNITED STATES — 7.9% |
|
|
|
|
|
Carnival PLC(a) |
| 4,980 |
|
| 287,097 |
Mitel Networks Corp.* |
| 17,867 |
|
| 196,001 |
Shire PLC(a)(b) |
| 3,075 |
|
| 519,060 |
Tucows, Inc., Class A*(b) |
| 1,275 |
|
| 77,329 |
Total United States |
|
|
|
| 1,079,487 |
Total Common Stocks |
|
|
|
|
|
(Cost $12,878,326) |
|
|
|
| 13,204,953 |
Investments |
| Shares/ |
| Value | |
COMMON STOCKS (continued) |
|
|
| ||
|
|
|
|
|
|
MONEY MARKET FUND — 3.3% |
|
|
| ||
BlackRock Liquidity Funds FedFund Portfolio, Institutional Class, 1.80%(d) (Cost $445,080) |
| 445,080 |
| $ | 445,080 |
|
|
|
|
|
|
REPURCHASE AGREEMENTS — 14.7%(e) |
|
|
| ||
Deutsche Bank Securities, Inc., dated 06/29/18, due 07/02/18, 2.12%, total to be received $466,626, (collateralized by various U.S. Government Agency Obligations, |
| $ 466,544 |
|
| 466,544 |
NatWest Markets PLC, dated 06/29/18, due 07/02/18, 2.09%, total to be received $138,238, (collateralized by various U.S. Government Agency Obligations, |
| 138,214 |
|
| 138,214 |
NBC Global Finance Ltd., dated 06/29/18, due 07/02/18, 1.95%, total to be received $466,620, (collateralized by various U.S. Government Agency Obligations, 0.00% – 3.63%, |
| 466,544 |
|
| 466,544 |
Nomura Securities International, Inc., dated 06/29/18, due 07/02/18, 2.12%, total to be received $466,626, (collateralized by various U.S. Government Agency Obligations, 0.00% – 9.00%, 07/15/18 – 05/20/68, totaling $474,100) |
| 466,544 |
|
| 466,544 |
RBC Dominion Securities, Inc., dated 06/29/18, due 07/02/18, 2.11%, total to be received $466,626, (collateralized by various U.S. Government Agency Obligations, 3.00% – 7.00%, 11/01/36 – 06/01/48, totaling $474,371) |
| 466,544 |
|
| 466,544 |
Total Repurchase Agreements |
|
|
|
|
|
(Cost $2,004,390) |
|
|
|
| 2,004,390 |
See accompanying Notes to Financial Statements.
61
ADVISORSHARES MADRONA INTERNATIONAL ETF
Schedule of Investments (continued)
June 30, 2018
Investments |
| Principal |
| Value | |
REPURCHASE AGREEMENTS (continued) | |||||
Total Investments — 114.9% |
|
|
|
|
|
(Cost $15,327,796) |
|
|
|
| 15,654,423 |
Liabilities in Excess of Other Assets — (14.9%) |
|
|
|
| (2,035,211) |
Net Assets — 100.0% |
|
|
| $ | 13,619,212 |
____________
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 $3,775,356; the aggregate market value of the collateral held by the fund is $3,869,561. The aggregate market value of the collateral includes non-cash U.S. Treasury securities collateral having a value of $1,865,171.
(c) Registered Shares.
(d) Rate shown reflects the 7-day yield as of June 30, 2018.
(e) Collateral received from brokers for securities lending was invested in these short-term investments.
SUMMARY OF SCHEDULE OF INVESTMENTS
|
| % of | |
Aerospace/Defense |
| 0.8 | % |
Airlines |
| 4.0 |
|
Auto Parts & Equipment |
| 1.2 |
|
Banks |
| 3.7 |
|
Beverages |
| 5.6 |
|
Biotechnology |
| 3.8 |
|
Building Materials |
| 0.7 |
|
Chemicals |
| 0.3 |
|
Commercial Services |
| 1.5 |
|
Computers |
| 0.3 |
|
Diversified Financial Services |
| 1.2 |
|
Electric |
| 1.7 |
|
Energy – Alternate Sources |
| 1.9 |
|
Forest Products & Paper |
| 0.8 |
|
Healthcare – Products | �� | 2.5 |
|
Healthcare – Services |
| 4.3 |
|
Insurance |
| 0.8 |
|
Internet |
| 15.8 |
|
Iron/Steel |
| 3.8 |
|
Leisure Time |
| 2.1 |
|
Lodging |
| 3.9 |
|
Media |
| 0.3 |
|
Metal Fabricate/Hardware |
| 3.1 |
|
Mining |
| 0.2 |
|
Oil & Gas |
| 8.6 |
|
SUMMARY OF SCHEDULE OF INVESTMENTS
(continued)
|
| % of | |
Pharmaceuticals |
| 6.8 | % |
Semiconductors |
| 7.6 |
|
Software |
| 3.9 |
|
Telecommunications |
| 4.5 |
|
Transportation |
| 0.7 |
|
Water |
| 0.5 |
|
Money Market Fund |
| 3.3 |
|
Repurchase Agreements |
| 14.7 |
|
Total Investments |
| 114.9 |
|
Liabilities in Excess of Other Assets |
| (14.9 | ) |
Net Assets |
| 100.0 | % |
See accompanying Notes to Financial Statements.
62
ADVISORSHARES NEW TECH AND MEDIA ETF
Schedule of Investments
June 30, 2018
Investments |
| Shares |
| Value | |
COMMON STOCKS — 80.6% |
|
|
| ||
|
|
|
| ||
Commercial Services — 4.4% |
|
|
| ||
Square, Inc., Class A*(a) |
| 33,619 |
| $ | 2,072,275 |
|
|
|
|
|
|
Computers — 2.5% |
|
|
|
|
|
Fortinet, Inc.* |
| 19,309 |
|
| 1,205,461 |
|
|
|
|
|
|
Healthcare – Products — 2.6% |
|
|
| ||
Intuitive Surgical, Inc.* |
| 2,574 |
|
| 1,231,608 |
|
|
|
|
|
|
Internet — 23.4% |
|
|
|
|
|
Amazon.com, Inc.* |
| 2,172 |
|
| 3,691,966 |
Netflix, Inc.* |
| 13,123 |
|
| 5,136,736 |
Palo Alto Networks, Inc.* |
| 10,712 |
|
| 2,200,995 |
Total Internet |
|
|
|
| 11,029,697 |
|
|
|
|
|
|
Office/Business Equipment — 3.7% |
|
|
| ||
Zebra Technologies Corp., Class A* |
| 12,068 |
|
| 1,728,741 |
|
|
|
|
|
|
Semiconductors — 13.8% |
|
|
|
|
|
Analog Devices, Inc. |
| 12,334 |
|
| 1,183,077 |
Micron Technology, Inc.* |
| 32,346 |
|
| 1,696,224 |
NVIDIA Corp. |
| 9,503 |
|
| 2,251,261 |
Qorvo, Inc.* |
| 17,200 |
|
| 1,378,924 |
Total Semiconductors |
|
|
|
| 6,509,486 |
|
|
|
|
|
|
Software — 27.3% |
|
|
|
|
|
Adobe Systems, Inc.* |
| 9,254 |
|
| 2,256,218 |
AppFolio, Inc., Class A* |
| 36,100 |
|
| 2,207,515 |
CyberArk Software Ltd. (Israel)* |
| 19,309 |
|
| 1,215,695 |
Microsoft Corp. |
| 11,134 |
|
| 1,097,924 |
New Relic, Inc.* |
| 22,870 |
|
| 2,300,493 |
salesforce.com, Inc.* |
| 8,800 |
|
| 1,200,320 |
Veeva Systems, Inc., Class A* |
| 18,000 |
|
| 1,383,480 |
VMware, Inc., Class A* |
| 8,364 |
|
| 1,229,257 |
Total Software |
|
|
|
| 12,890,902 |
|
|
|
|
|
|
Telecommunications — 2.9% |
|
|
| ||
Arista Networks, Inc.* |
| 5,260 |
|
| 1,354,397 |
Total Common Stocks |
|
|
|
|
|
(Cost $36,216,281) |
|
|
|
| 38,022,567 |
|
|
|
|
|
|
MONEY MARKET FUND — 5.6% |
|
|
| ||
Dreyfus Institutional Treasury and Agency Cash Advantage Fund, 1.80%(b) (Cost $2,634,491) |
| 2,634,491 |
|
| 2,634,491 |
|
|
|
|
|
|
Investments |
| Principal |
| Value | ||
REPURCHASE AGREEMENT — 0.0%**(c) | ||||||
RBC Dominion Securities, Inc., dated 06/29/18, due 07/02/18, 2.28%, total to be received $790, (collateralized by various U.S. Government Agency Obligations, 3.00% – 7.00%, |
|
|
|
|
|
|
(Cost $790) |
| $ | 790 |
| $ | 790 |
|
|
|
|
|
|
|
Total Investments — 86.2% |
|
|
|
|
|
|
(Cost $38,851,562) |
|
|
|
|
| 40,657,848 |
Other Assets in Excess of Liabilities — 13.8% |
|
|
|
|
| 6,515,519 |
Net Assets — 100.0% |
|
|
|
| $ | 47,173,367 |
____________
* 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 $3,304,116; the aggregate market value of the collateral held by the fund is $3,376,092. The aggregate market value of the collateral includes non-cash U.S. Treasury securities collateral having a value of $3,375,302.
(b) Rate shown reflects the 7-day yield as of June 30, 2018.
(c) Collateral received from brokers for securities lending was invested in this short-term investment.
SUMMARY OF SCHEDULE OF INVESTMENTS
|
| % of | |
Commercial Services |
| 4.4 | % |
Computers |
| 2.5 |
|
Healthcare – Products |
| 2.6 |
|
Internet |
| 23.4 |
|
Office/Business Equipment |
| 3.7 |
|
Semiconductors |
| 13.8 |
|
Software |
| 27.3 |
|
Telecommunications |
| 2.9 |
|
Money Market Fund |
| 5.6 |
|
Repurchase Agreement |
| 0.0 | ** |
Total Investments |
| 86.2 |
|
Other Assets in Excess of Liabilities |
| 13.8 |
|
Net Assets |
| 100.0 | % |
____________
** Less than 0.05%.
See accompanying Notes to Financial Statements.
63
ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments
June 30, 2018
Investments |
| Principal |
| Value | ||
MORTGAGE BACKED SECURITIES — 30.2% | ||||||
|
|
|
| |||
Commercial Mortgage Backed Securities — 5.9% | ||||||
Access Point Funding I LLC, Class A, Series 2017-A, 3.06%, 04/15/29‡ |
| $ | 246,084 |
| $ | 244,715 |
Aventura Mall Trust, Class C, Series 2013-AVM, 3.87%, 12/05/32@‡* |
|
| 250,000 |
|
| 254,449 |
Bayview Commercial Asset Trust, Class A2, Series 2006-2A, 2.37%, (1-Month USD LIBOR + 0.28%), 07/25/36@‡ |
|
| 187,034 |
|
| 182,171 |
BX Trust, Class B, Series 2018-GW, 3.09%, (1-Month USD LIBOR + 1.02%), 05/15/35@‡ |
|
| 700,000 |
|
| 699,490 |
Caesars Palace Las Vegas Trust, Class C, Series 2017-VICI, 4.14%, 10/15/34‡ |
|
| 445,000 |
|
| 449,014 |
Citigroup Commercial Mortgage Trust, Class A, Series 2016-SMPL, 2.23%, 09/10/31‡ |
|
| 470,000 |
|
| 455,410 |
Cold Storage Trust, Class A, Series 2017-ICE3, 3.07%, (1-Month USD LIBOR + 1.00%), 04/15/36@‡ |
|
| 775,000 |
|
| 779,098 |
Colony Multifamily Mortgage Trust, Class A, Series 2014-1, 2.54%, 04/20/50‡ |
|
| 57,548 |
|
| 57,233 |
Commercial Mortgage Lease-Backed Certificates, Class A3, Series 2001-CMLB, 7.47%, 06/20/31@‡* |
|
| 460,000 |
|
| 486,342 |
Credit Suisse Commercial Mortgage Trust, Class A, Series 2016-BDWN, 4.97%, (1-Month USD LIBOR + 2.90%), 02/15/29@‡ |
|
| 980,000 |
|
| 984,471 |
GAHR Commercial Mortgage Trust, Class CFX, Series 2015-NRF, 3.49%, 12/15/34@‡* |
|
| 200,000 |
|
| 199,445 |
Hospitality Mortgage Trust, Class B, Series 2017-HIT, 3.21%, (1-Month USD LIBOR + 1.18%), 05/08/30@‡ |
|
| 750,000 |
|
| 750,724 |
JPMorgan Chase Commercial Mortgage Securities Trust, Class B, Series 2015-SGP, 4.82%, (1-Month USD LIBOR + 2.75%), 07/15/36@‡ |
|
| 535,000 |
|
| 538,244 |
JPMorgan Chase Commercial Mortgage Securities Trust, Class A3, Series 2011-C4, 4.11%, 07/15/46‡ |
|
| 56,452 |
|
| 56,395 |
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 |
| $ | 322,254 |
| $ | 324,625 |
Morgan Stanley Capital I Trust, Class A, Series 2017-CLS, 2.77%, (1-Month USD LIBOR + 0.70%), 11/15/34@‡ |
|
| 600,000 |
|
| 599,635 |
Motel 6 Trust, Class A, Series 2017-MTL6, 2.99%, (1-Month USD LIBOR + 0.92%), 08/15/34@‡ |
|
| 655,044 |
|
| 655,930 |
SBA Tower Trust, 3.17%, 04/15/42‡ |
|
| 780,000 |
|
| 766,882 |
Sutherland Commercial Mortgage Loans, Class A, Series 2017-SBC6, 3.19%, 05/25/37@‡* |
|
| 363,945 |
|
| 362,811 |
Velocity Commercial Capital Loan Trust, Class AFX, Series 2017-1, 3.00%, 05/25/47@‡* |
|
| 189,834 |
|
| 187,886 |
VSD, 3.60%, 12/25/43 |
|
| 149,019 |
|
| 148,918 |
Total Commercial Mortgage Backed Securities |
|
|
|
|
| 9,183,888 |
|
|
|
|
|
|
|
Residential Mortgage Backed Securities — 24.3% | ||||||
Ajax Mortgage Loan Trust, Class A, Series 2017-B, 3.16%, 09/25/56@‡* |
|
| 279,655 |
|
| 275,221 |
Alternative Loan Trust, Class 1A1, Series 2004-22CB, 6.00%, 10/25/34 |
|
| 101,823 |
|
| 105,251 |
AMSR Trust, Class C, Series 2016-SFR1, 4.34%, (1-Month USD LIBOR + 2.25%), 11/17/33@‡ |
|
| 762,500 |
|
| 765,733 |
Angel Oak Mortgage Trust I LLC, Class A1, Series 2018-2, 3.67%, 07/27/48@‡* |
|
| 155,000 |
|
| 155,389 |
Angel Oak Mortgage Trust LLC, Class A1, Series 2017-3, 2.71%, 11/25/47@‡* |
|
| 532,961 |
|
| 530,734 |
Arroyo Mortgage Trust, Class A1, Series 2018-1, 3.76%, 04/25/48@‡* |
|
| 680,836 |
|
| 683,821 |
Asset Backed Funding Certificates Trust, Class A6, Series 2005-AQ1, 4.78%, 01/25/35 |
|
| 78,227 |
|
| 80,583 |
Banc of America Funding Trust, Class 5A1, Series 2004-A, 3.87%, 07/20/34@* |
|
| 159,792 |
|
| 160,490 |
See accompanying Notes to Financial Statements.
64
ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)
June 30, 2018
Investments |
| Principal |
| Value | ||
MORTGAGE BACKED SECURITIES (continued) | ||||||
|
|
|
| |||
Residential Mortgage Backed Securities (continued) | ||||||
Banc of America Funding Trust, Class 1A1, Series 2005-1, 5.50%, 02/25/35 |
| $ | 145,634 |
| $ | 146,128 |
Bayview Financial Acquisition Trust, Class 1A2, Series 2007-A, 6.21%, 05/28/37 |
|
| 195,148 |
|
| 200,057 |
Bayview Koitere Fund Trust, Class A, Series 2017-RT4, 3.50%, 07/28/57@‡* |
|
| 219,059 |
|
| 219,035 |
Bayview Opportunity Master Fund IVa Trust, Class A1, Series 2017-RT1, 3.00%, 03/28/57@‡* |
|
| 782,651 |
|
| 772,042 |
Bayview Opportunity Master Fund IVb Trust, Class A, Series 2017-SPL4, 3.50%, 01/28/55@‡* |
|
| 436,361 |
|
| 436,642 |
Bear Stearns ALT-A Trust, Class 3A1, Series 2004-5, 4.14%, 06/25/34@* |
|
| 278,417 |
|
| 284,255 |
Bear Stearns ARM Trust, Class 21A1, Series 2004-1, 3.91%, 04/25/34@* |
|
| 271,385 |
|
| 272,744 |
Bear Stearns ARM Trust, Class 22A1, Series 2004-9, 3.98%, 11/25/34@* |
|
| 432,048 |
|
| 439,266 |
Bear Stearns ARM Trust, Class 21A1, Series 2004-10, 3.84%, 01/25/35@* |
|
| 680,178 |
|
| 686,364 |
Bear Stearns ARM Trust, Class 15A1, Series 2004-10, 3.73%, 01/25/35@* |
|
| 399,179 |
|
| 411,146 |
Centex Home Equity Loan Trust, Class AF5, Series 2004-D, 5.85%, 09/25/34 |
|
| 282,385 |
|
| 290,940 |
Citigroup Mortgage Loan Trust, Inc., Class A, Series 2014-A, 4.00%, 01/25/35@‡* |
|
| 418,109 |
|
| 424,007 |
Citigroup Mortgage Loan Trust, Inc., Class A, Series 2013-A, 3.00%, 05/25/42@‡* |
|
| 1,032,058 |
|
| 1,016,679 |
Citigroup Mortgage Loan Trust, Inc., Class A1, Series 2015-PS1, 3.75%, 09/25/42@‡* |
|
| 236,852 |
|
| 237,908 |
Citigroup Mortgage Loan Trust, Inc., Class A1, Series 2015-A, 3.50%, 06/25/58@‡* |
|
| 558,154 |
|
| 556,388 |
Citigroup Mortgage Loan Trust, Inc., Class A1, Series 2018-RP1, 3.00%, 09/25/64@‡* |
|
| 194,037 |
|
| 191,504 |
Investments |
| Principal |
| Value | ||
MORTGAGE BACKED SECURITIES (continued) | ||||||
|
|
|
| |||
Residential Mortgage Backed Securities (continued) | ||||||
Colony American Finance Ltd., Class A, Series 2015-1 (Cayman Islands), 2.90%, 10/15/47‡ |
| $ | 291,659 |
| $ | 289,925 |
Colony Starwood Homes Trust, Class C, Series 2016-2A, 4.22%, (1-Month USD LIBOR + 2.15%), 12/17/33@‡ |
|
| 665,000 |
|
| 665,522 |
COLT Mortgage Loan Trust, Class A3, Series 2017-1, 3.07%, 05/27/47@‡* |
|
| 273,892 |
|
| 273,569 |
COLT Mortgage Loan Trust, Class A1, Series 2018-1, 2.93%, 02/25/48@‡* |
|
| 555,378 |
|
| 554,206 |
COLT Mortgage Loan Trust, Class A1, Series 2018-2, 3.47%, 07/27/48@‡* |
|
| 336,269 |
|
| 337,120 |
Corevest American Finance Trust, Class A, Series 2018-1, 3.80%, 06/15/51‡ |
|
| 310,000 |
|
| 309,999 |
Countrywide Asset-Backed Certificates, Class A3, Series 2004-S1, 5.12%, 02/25/35 |
|
| 261,594 |
|
| 263,958 |
Credit Suisse Commercial Mortgage Trust, Class A16, Series 2013-HYB1, 3.01%, 04/25/43@‡* |
|
| 441,197 |
|
| 439,799 |
Credit Suisse Commercial Mortgage Trust, Class A2, Series 2014-IVR2, 3.79%, 04/25/44@‡* |
|
| 494,550 |
|
| 495,757 |
Credit Suisse First Boston Mortgage Securities Corp., Class 6A1, Series 2004-AR8, 3.67%, 09/25/34@* |
|
| 85,853 |
|
| 87,426 |
Credit Suisse First Boston Mortgage-Backed Pass-Through Certificates, Class 6A1, Series 2004-8, 4.50%, 12/25/19 |
|
| 51,421 |
|
| 51,967 |
Credit Suisse First Boston Mortgage-Backed Pass-Through Certificates, Class 5A1, Series 2003-AR30, 3.87%, 01/25/34@* |
|
| 149,319 |
|
| 153,951 |
Deephaven Residential Mortgage Trust, Class A1, Series 2017-1A, 2.73%, 12/26/46@‡* |
|
| 302,700 |
|
| 302,176 |
Deephaven Residential Mortgage Trust, Class A1, Series 2017-2A, 2.45%, 06/25/47@‡* |
|
| 153,417 |
|
| 151,670 |
See accompanying Notes to Financial Statements.
65
ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)
June 30, 2018
Investments |
| Principal |
| Value | ||
MORTGAGE BACKED SECURITIES (continued) | ||||||
|
|
|
| |||
Residential Mortgage Backed Securities (continued) | ||||||
Deephaven Residential Mortgage Trust, Class A3, Series 2017-3A, 2.81%, 10/25/47@‡* |
| $ | 184,356 |
| $ | 183,389 |
Galton Funding Mortgage Trust, Class A21, Series 2017-1, 3.50%, 07/25/56@‡* |
|
| 655,848 |
|
| 653,774 |
GMACM Mortgage Loan Trust, Class 12A, Series 2004-AR1, 4.23%, 06/25/34@* |
|
| 192,060 |
|
| 195,160 |
GSAA Trust, Class AF4, Series 2005-1, 5.62%, 11/25/34 |
|
| 68,025 |
|
| 69,118 |
GSR Mortgage Loan Trust, Class 1A6, Series 2003-3F, 6.00%, 04/25/33 |
|
| 221,456 |
|
| 230,037 |
GSR Mortgage Loan Trust, Class 3A1, Series 2004-7, 3.89%, 06/25/34@* |
|
| 294,157 |
|
| 291,547 |
Jefferies Resecuritization Trust, Class 1A1, Series 2014-R1, 4.00%, 12/27/37@‡* |
|
| 14,020 |
|
| 14,020 |
JPMorgan Mortgage Trust, Class AM, Series 2014-2, 3.40%, 06/25/29@‡* |
|
| 589,209 |
|
| 587,856 |
JPMorgan Mortgage Trust, Class 2A2, Series 2014-2, 3.50%, 06/25/29@‡* |
|
| 343,431 |
|
| 345,014 |
JPMorgan Mortgage Trust, Class 1A1, Series 2004-A3, 4.15%, 07/25/34@* |
|
| 186,032 |
|
| 186,632 |
JPMorgan Mortgage Trust, Class 4A1, Series 2006-A2, 4.17%, 08/25/34@* |
|
| 147,761 |
|
| 149,669 |
JPMorgan Mortgage Trust, Class 2A1, Series 2004-A4, 3.68%, 09/25/34@* |
|
| 93,561 |
|
| 95,361 |
JPMorgan Mortgage Trust, Class 4A1, Series 2005-A2, 3.47%, 04/25/35@* |
|
| 460,435 |
|
| 459,122 |
JPMorgan Mortgage Trust, Class AM1, Series 2015-1, 2.90%, 12/25/44@‡* |
|
| 349,621 |
|
| 349,997 |
JPMorgan Mortgage Trust, Class A2, Series 2015-5, 2.97%, 05/25/45@‡* |
|
| 600,685 |
|
| 599,982 |
JPMorgan Mortgage Trust, Class 2A2, Series 2017-3, 2.50%, 08/25/47@‡* |
|
| 740,801 |
|
| 715,394 |
JPMorgan Mortgage Trust, Class A1, Series 2017-5, 3.17%, 10/26/48@‡* |
|
| 1,518,248 |
|
| 1,502,182 |
Investments |
| Principal |
| Value | ||
MORTGAGE BACKED SECURITIES (continued) | ||||||
|
|
|
| |||
Residential Mortgage Backed Securities (continued) | ||||||
JPMorgan Mortgage Trust, Class A3, Series 2017-4, 3.50%, 11/25/48@‡* |
| $ | 215,575 |
| $ | 212,249 |
MASTR Alternative Loan Trust, Class 6A1, Series 2004-4, 5.50%, 04/25/34 |
|
| 249,665 |
|
| 259,469 |
MASTR Alternative Loan Trust, Class 2A1, Series 2005-2, 6.00%, 01/25/35 |
|
| 160,383 |
|
| 166,856 |
MASTR Asset Securitization Trust, Class 1A1, Series 2005-1, 5.00%, 05/25/20 |
|
| 25,268 |
|
| 25,315 |
MASTR Specialized Loan Trust, Class A2, Series 2005-3, 5.70%, 11/25/35‡ |
|
| 183,560 |
|
| 187,844 |
Merrill Lynch Mortgage Investors Trust, Class A1, Series 2004-A4, 3.68%, 08/25/34@* |
|
| 538,107 |
|
| 539,279 |
Mill City Mortgage Loan Trust, Class A1, Series 2016-1, 2.50%, 04/25/57@‡* |
|
| 531,525 |
|
| 523,406 |
Mill City Mortgage Loan Trust, Class A1, Series 2017-1, 2.75%, 11/25/58@‡* |
|
| 291,887 |
|
| 288,370 |
National City Mortgage Capital Trust, Class 2A1, Series 2008-1, 6.00%, 03/25/38 |
|
| 130,273 |
|
| 135,159 |
New Residential Mortgage Loan Trust, Class A1, Series 2016-2A, 3.75%, 11/26/35@‡* |
|
| 1,073,622 |
|
| 1,079,665 |
New Residential Mortgage Loan Trust, Class A3, Series 2014-2A, 3.75%, 05/25/54@‡* |
|
| 162,182 |
|
| 163,234 |
New Residential Mortgage Loan Trust, Class A1, Series 2015-2A, 3.75%, 08/25/55@‡* |
|
| 909,046 |
|
| 913,170 |
New Residential Mortgage Loan Trust, Class A1, Series 2016-1A, 3.75%, 03/25/56@‡* |
|
| 207,349 |
|
| 208,179 |
New Residential Mortgage Loan Trust, Class A1, Series 2016-3A, 3.75%, 09/25/56@‡* |
|
| 640,716 |
|
| 642,359 |
New Residential Mortgage Loan Trust, Class A1, Series 2016-4A, 3.75%, 11/25/56@‡* |
|
| 420,185 |
|
| 421,633 |
See accompanying Notes to Financial Statements.
66
ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)
June 30, 2018
Investments |
| Principal |
| Value | ||
MORTGAGE BACKED SECURITIES (continued) | ||||||
|
|
|
| |||
Residential Mortgage Backed Securities (continued) | ||||||
NovaStar Mortgage Funding Trust, Class M5, Series 2004-4, 3.82%, (1-Month USD LIBOR + 1.73%), 03/25/35@ |
| $ | 977,875 |
| $ | 993,104 |
Oak Hill Advisors Residential Loan Trust, Class A1, Series 2017-NPL2, 3.00%, 07/25/57‡ |
|
| 296,612 |
|
| 294,411 |
Pretium Mortgage Credit Partners I LLC, Class A1, Series 2017-NPL3, 3.25%, 06/29/32‡ |
|
| 388,581 |
|
| 387,148 |
Pretium Mortgage Credit Partners I LLC, Class A1, Series 2018-NPL3, 4.13%, 08/27/33‡ |
|
| 250,000 |
|
| 250,625 |
Pretium Mortgage Credit Partners I LLC, Class A1, Series 2017-NPL2, 3.25%, 03/28/57‡ |
|
| 281,106 |
|
| 280,747 |
Progress Residential Trust, Class B, Series 2017-SFR1, 3.02%, 08/17/34‡ |
|
| 665,000 |
|
| 643,981 |
RASC Series Trust, Class AI6, Series 2004-KS2, 4.30%, 03/25/34@* |
|
| 21,829 |
|
| 21,893 |
RCO Mortgage LLC, Class A1, Series 2017-1, 3.38%, 08/25/22‡ |
|
| 142,753 |
|
| 142,324 |
Starwood Waypoint Homes Trust, Class A, Series 2017-1, 3.04%, (1-Month USD LIBOR + 0.95%), 01/17/35@‡ |
|
| 502,670 |
|
| 505,135 |
Structured Adjustable Rate Mortgage Loan Trust, Class 6A, Series 2004-1, 4.11%, 02/25/34@* |
|
| 239,117 |
|
| 239,397 |
Structured Adjustable Rate Mortgage Loan Trust, Class 3A1, Series 2004-4, 3.92%, 04/25/34@* |
|
| 80,182 |
|
| 80,763 |
Structured Adjustable Rate Mortgage Loan Trust, Class 3A2, Series 2004-4, 3.92%, 04/25/34@* |
|
| 427,014 |
|
| 434,515 |
Structured Asset Securities Corp., Class 2A, Series 2003-37A, 3.69%, 12/25/33@* |
|
| 162,595 |
|
| 163,896 |
Structured Asset Securities Corp., Class A3A, Series 2004-4XS, 5.23%, 02/25/34 |
|
| 436,308 |
|
| 442,581 |
Investments |
| Principal |
| Value | ||
MORTGAGE BACKED SECURITIES (continued) | ||||||
|
|
|
| |||
Residential Mortgage Backed Securities (continued) | ||||||
Structured Asset Securities Corp. Mortgage Pass-Through Certificates, Class 1A1, Series 2003-33H, 5.50%, 10/25/33 |
| $ | 279,376 |
| $ | 285,216 |
Structured Asset Securities Corp. Mortgage Pass-Through Certificates, Class 6A, Series 2003-34A, 4.15%, 11/25/33@* |
|
| 207,118 |
|
| 207,226 |
Towd Point Mortgage Trust, Class M1, Series 2015-6, 3.75%, 04/25/55@‡* |
|
| 260,000 |
|
| 262,253 |
Towd Point Mortgage Trust, Class A2, Series 2015-5, 3.50%, 05/25/55@‡* |
|
| 250,000 |
|
| 249,227 |
Towd Point Mortgage Trust, Class A1B, Series 2015-5, 2.75%, 05/25/55@‡* |
|
| 548,648 |
|
| 542,459 |
Towd Point Mortgage Trust, Class A1, Series 2016-3, 2.25%, 04/25/56@‡* |
|
| 420,568 |
|
| 412,530 |
Towd Point Mortgage Trust, Class A1, Series 2016-4, 2.25%, 07/25/56@‡* |
|
| 471,677 |
|
| 461,382 |
Tricon American Homes Trust, Class A, Series 2017-SFR1, 2.72%, 09/17/34‡ |
|
| 265,000 |
|
| 255,996 |
Verus Securitization Trust, Class A1, Series 2017-1A, 2.85%, 01/25/47@‡* |
|
| 135,323 |
|
| 135,247 |
Verus Securitization Trust, Class A1, Series 2017-2A, 2.49%, 07/25/47@‡* |
|
| 760,112 |
|
| 753,504 |
Verus Securitization Trust, Class A1, Series 2018-1, 2.93%, 02/25/48@‡* |
|
| 761,236 |
|
| 756,774 |
Verus Securitization Trust, Class A3, Series 2018-INV1, 4.05%, 03/25/58@‡* |
|
| 102,928 |
|
| 103,183 |
VOLT LVI LLC, Class A1, Series 2017-NPL3, 3.50%, 03/25/47‡ |
|
| 481,976 |
|
| 482,055 |
VOLT LVIII LLC, Class A1, Series 2017-NPL5, 3.38%, 05/28/47‡ |
|
| 92,547 |
|
| 92,624 |
WaMu Mortgage Pass-Through Certificates Trust, Class A1, Series 2003-AR6, 4.21%, 06/25/33@* |
|
| 135,069 |
|
| 136,783 |
Washington Mutual MSC Mortgage Pass-Through Certificates Trust, Class 2A1, Series 2003-AR4, 3.23%, 08/25/33@* |
|
| 93,965 |
|
| 93,663 |
See accompanying Notes to Financial Statements.
67
ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)
June 30, 2018
Investments |
| Principal |
| Value | ||
MORTGAGE BACKED SECURITIES (continued) | ||||||
|
|
|
| |||
Residential Mortgage Backed Securities (continued) | ||||||
Wells Fargo Mortgage Backed Securities Trust, Class A1, Series 2003-G, 3.60%, 06/25/33@* |
| $ | 17,962 |
| $ | 18,238 |
Wells Fargo Mortgage Backed Securities Trust, Class 5A1, Series 2003-J, 3.49%, 10/25/33@* |
|
| 112,821 |
|
| 114,474 |
Wells Fargo Mortgage Backed Securities Trust, Class 2A1, Series 2003-J, 3.48%, 10/25/33@* |
|
| 109,211 |
|
| 111,250 |
Wells Fargo Mortgage Backed Securities Trust, Class A1, Series 2004-A, 3.79%, 02/25/34@* |
|
| 225,554 |
|
| 234,134 |
Wells Fargo Mortgage Backed Securities Trust, Class 1A2, Series 2004-K, 4.49%, 07/25/34@* |
|
| 197,981 |
|
| 202,493 |
Wells Fargo Mortgage Backed Securities Trust, Class 2A12, Series 2004-K, 4.40%, 07/25/34@* |
|
| 75,147 |
|
| 77,556 |
Wells Fargo Mortgage Backed Securities Trust, Class A1, Series 2004-U, 3.87%, 10/25/34@* |
|
| 269,899 |
|
| 272,614 |
Wells Fargo Mortgage Backed Securities Trust, Class 2A1, Series 2004-Z, 3.74%, 12/25/34@* |
| $ | 77,106 |
| $ | 78,813 |
Wells Fargo Mortgage Backed Securities Trust, Class 2A1, Series 2005-AR10, 3.91%, 06/25/35@* |
|
| 408,360 |
|
| 421,566 |
Wells Fargo Mortgage Backed Securities Trust, Class 2A1, Series 2005-14, 5.50%, 12/25/35 |
|
| 62,074 |
|
| 63,955 |
Total Residential Mortgage Backed Securities |
|
|
|
|
| 37,819,548 |
Total Mortgage Backed Securities |
|
|
|
|
|
|
(Cost $47,260,216) |
|
|
|
|
| 47,003,436 |
|
|
|
|
|
|
|
ASSET BACKED SECURITIES — 29.2% |
|
|
| |||
ACC Trust, Class A, Series 2018-1, 3.70%, 12/21/20‡ |
|
| 396,766 |
|
| 396,981 |
American Credit Acceptance Receivables Trust, Class B, Series 2016-1A, 4.24%, 06/13/22‡ |
|
| 212,960 |
|
| 213,317 |
Investments |
| Principal |
| Value | ||
ASSET BACKED SECURITIES (continued) | ||||||
| ||||||
American Credit Acceptance Receivables Trust, Class C, Series 2017-2, 2.86%, 06/12/23‡ |
| $ | 645,000 |
| $ | 641,588 |
AmeriCredit Automobile Receivables Trust, Class B, Series 2016-1, 2.30%, 03/08/21 |
|
| 720,000 |
|
| 717,917 |
AmeriCredit Automobile Receivables Trust, Class B, Series 2016-2, 2.21%, 05/10/21 |
|
| 290,000 |
|
| 288,749 |
AmeriCredit Automobile Receivables Trust, Class C, Series 2014-2, 2.18%, 06/08/20 |
|
| 219,028 |
|
| 218,910 |
AmeriCredit Automobile Receivables Trust, Class C, Series 2015-3, 2.73%, 03/08/21 |
|
| 655,000 |
|
| 655,134 |
AmeriCredit Automobile Receivables Trust, Class C, Series 2015-4, 2.88%, 07/08/21 |
|
| 715,000 |
|
| 714,562 |
AmeriCredit Automobile Receivables Trust, Class C, Series 2017-1, 2.71%, 08/18/22 |
|
| 650,000 |
|
| 642,908 |
AmeriCredit Automobile Receivables Trust, Class D, Series 2014-1, 2.54%, 06/08/20 |
|
| 755,000 |
|
| 754,929 |
Aqua Finance Trust, Class A, Series 2017-A, 3.72%, 11/15/35‡ |
|
| 507,019 |
|
| 498,206 |
Ascentium Equipment Receivables Trust, Class B, Series 2017-1A, 2.85%, 10/10/21‡ |
|
| 645,000 |
|
| 630,113 |
Associates Manufactured Housing Pass-Through Certificates, Class B1, Series 1996-1, 8.00%, 03/15/27@* |
|
| 162,010 |
|
| 164,368 |
Avid Automobile Receivables Trust, Class A, Series 2018-1, 2.84%, 08/15/23‡ |
|
| 448,243 |
|
| 445,875 |
Avis Budget Rental Car Funding Aesop LLC, Class A, Series 2013-2A, 2.97%, 02/20/20‡ |
|
| 1,465,000 |
|
| 1,466,031 |
BRE Grand Islander Timeshare Issuer LLC, Class A, Series 2017-1A, 2.94%, 05/25/29‡ |
|
| 474,179 |
|
| 463,377 |
BXG Receivables Note Trust, Class A, Series 2013-A, 3.01%, 12/04/28‡ |
|
| 110,803 |
|
| 109,390 |
See accompanying Notes to Financial Statements.
68
ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)
June 30, 2018
Investments |
| Principal |
| Value | ||
ASSET BACKED SECURITIES (continued) | ||||||
| ||||||
BXG Receivables Note Trust, Class A, Series 2015-A, 2.88%, 05/02/30‡ |
| $ | 517,979 |
| $ | 504,611 |
California Republic Auto Receivables Trust, Class A4, Series 2014-3, 1.79%, 03/16/20 |
|
| 100,009 |
|
| 99,894 |
California Republic Auto Receivables Trust, Class B, Series 2014-2, 2.34%, 04/15/20 |
|
| 500,000 |
|
| 499,776 |
Capital Auto Receivables Asset Trust, Class C, Series 2015-2, 2.67%, 08/20/20 |
|
| 650,000 |
|
| 650,144 |
CarFinance Capital Auto Trust, Class B, Series 2014-2A, 2.64%, 11/16/20‡ |
|
| 338,077 |
|
| 337,936 |
CarFinance Capital Auto Trust, Class B, Series 2015-1A, 2.91%, 06/15/21‡ |
|
| 1,000,000 |
|
| 998,664 |
Centre Point Funding LLC, Class 1, Series 2012-2A, 2.61%, 08/20/21‡ |
|
| 388,652 |
|
| 384,251 |
Chrysler Capital Auto Receivables Trust, Class D, Series 2015-BA, 4.17%, 01/16/23‡ |
|
| 635,000 |
|
| 638,937 |
CLUB Credit Trust, Class B, Series 2017-P1, 3.56%, 09/15/23‡ |
|
| 270,000 |
|
| 268,937 |
CPS Auto Receivables Trust, Class B, Series 2017-C, 2.30%, 07/15/21‡ |
|
| 805,000 |
|
| 798,549 |
Dell Equipment Finance Trust, Class A3, Series 2017-2, 2.19%, 10/24/22‡ |
|
| 615,000 |
|
| 608,646 |
Diamond Resorts Owner Trust, Class A, Series 2014-1, 2.54%, 05/20/27‡ |
|
| 300,217 |
|
| 299,356 |
Diamond Resorts Owner Trust, Class A, Series 2017-1A, 3.27%, 10/22/29‡ |
|
| 454,010 |
|
| 443,177 |
DRB Prime Student Loan Trust, Class A3, Series 2015-D, 2.50%, 01/25/36‡ |
|
| 144,885 |
|
| 144,422 |
Drive Auto Receivables Trust, Class C, Series 2015-DA, 3.38%, 11/15/21‡ |
|
| 402,970 |
|
| 403,702 |
Drive Auto Receivables Trust, Class C, Series 2016-CA, 3.02%, 11/15/21‡ |
|
| 665,000 |
|
| 665,619 |
Drive Auto Receivables Trust, Class C, Series 2017-2, 2.75%, 09/15/23 |
|
| 805,000 |
|
| 803,407 |
Investments |
| Principal |
| Value | ||
ASSET BACKED SECURITIES (continued) | ||||||
| ||||||
Drug Royalty II LP, Class A2, Series 2014-1, 3.48%, 07/15/23‡ |
| $ | 119,037 |
| $ | 118,593 |
DT Auto Owner Trust, Class C, Series 2015-3A, 3.25%, 07/15/21‡ |
|
| 146,353 |
|
| 146,456 |
DT Auto Owner Trust, Class C, Series 2016-2A, 3.67%, 01/18/22‡ |
|
| 407,921 |
|
| 409,094 |
DT Auto Owner Trust, Class C, Series 2016-3A, 3.15%, 03/15/22‡ |
|
| 540,439 |
|
| 541,051 |
Exeter Automobile Receivables Trust, Class B, Series 2017-1A, 3.00%, 12/15/21‡ |
|
| 455,000 |
|
| 455,278 |
Exeter Automobile Receivables Trust, Class B, Series 2017-2A, 2.82%, 05/16/22‡ |
|
| 785,000 |
|
| 780,971 |
Exeter Automobile Receivables Trust, Class B, Series 2017-3A, 2.81%, 09/15/22‡ |
|
| 270,000 |
|
| 267,047 |
Exeter Automobile Receivables Trust, Class C, Series 2014-2A, 3.26%, 12/16/19‡ |
|
| 165,309 |
|
| 165,410 |
Exeter Automobile Receivables Trust, Class C, Series 2015-1A, 4.10%, 12/15/20‡ |
|
| 460,804 |
|
| 463,652 |
Exeter Automobile Receivables Trust, Class C, Series 2015-2A, 3.90%, 03/15/21‡ |
|
| 1,115,000 |
|
| 1,124,121 |
Exeter Automobile Receivables Trust, Class C, Series 2018-1A, 3.03%, 01/17/23‡ |
|
| 465,000 |
|
| 460,591 |
Exeter Automobile Receivables Trust, Class C, Series 2018-2A, 3.69%, 03/15/23‡ |
|
| 445,000 |
|
| 444,636 |
First Investors Auto Owner Trust, Class B, Series 2017-2A, 2.65%, 11/15/22‡ |
|
| 650,000 |
|
| 642,244 |
Flagship Credit Auto Trust, Class A, Series 2016-1, 2.77%, 12/15/20‡ |
|
| 159,913 |
|
| 159,967 |
Flagship Credit Auto Trust, Class D, Series 2014-2, 5.21%, 02/15/21‡ |
|
| 645,000 |
|
| 654,611 |
Foursight Capital Automobile Receivables Trust, Class A2, Series 2016-1, 2.87%, 10/15/21‡ |
|
| 365,911 |
|
| 365,421 |
Foursight Capital Automobile Receivables Trust, Class B, Series 2017-1, 3.05%, 12/15/22‡ |
|
| 650,000 |
|
| 641,953 |
See accompanying Notes to Financial Statements.
69
ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)
June 30, 2018
Investments |
| Principal |
| Value | ||
ASSET BACKED SECURITIES (continued) | ||||||
| ||||||
Foursight Capital Automobile Receivables Trust, Class C, Series 2018-1, 3.68%, 08/15/23‡ |
| $ | 445,000 |
| $ | 443,168 |
GLS Auto Receivables Trust, Class B, Series 2017-1A, 2.98%, 12/15/21‡ |
|
| 770,000 |
|
| 764,562 |
Gold Key Resorts LLC, Class A, Series 2014-A, 3.22%, 03/17/31‡ |
|
| 184,940 |
|
| 182,751 |
Hertz Vehicle Financing II LP, Class A, Series 2015-1A, 2.73%, 03/25/21‡ |
|
| 910,000 |
|
| 900,464 |
Hertz Vehicle Financing II LP, Class A, Series 2016-1A, 2.32%, 03/25/20‡ |
|
| 200,000 |
|
| 199,171 |
Hilton Grand Vacations Trust, Class A, Series 2013-A, 2.28%, 01/25/26‡ |
|
| 311,783 |
|
| 309,667 |
Hyundai Auto Lease Securitization Trust, Class A2A, Series 2018-A, 2.55%, 08/17/20‡ |
|
| 550,000 |
|
| 548,994 |
Hyundai Auto Receivables Trust, Class D, Series 2014-B, 2.51%, 12/15/20 |
|
| 425,000 |
|
| 424,937 |
Hyundai Auto Receivables Trust, Class D, Series 2015-A, 2.73%, 06/15/21 |
|
| 500,000 |
|
| 499,888 |
Mariner Finance Issuance Trust, Class A, Series 2017-AA, 3.62%, 02/20/29‡ |
|
| 645,000 |
|
| 647,843 |
Marriott Vacation Club Owner Trust, Class A, Series 2012-1A, 2.51%, 05/20/30‡ |
|
| 350,109 |
|
| 348,265 |
MVW Owner Trust, Class B, Series 2015-1A, 2.96%, 12/20/32‡ |
|
| 224,489 |
|
| 220,175 |
Navistar Financial Dealer Note Master Owner Trust II, Class B, Series 2016-1, 3.84%, (1-Month USD LIBOR + 1.75%), 09/27/21@‡ |
|
| 1,065,000 |
|
| 1,067,081 |
OneMain Direct Auto Receivables Trust, Class B, Series 2016-1A, 2.76%, 05/15/21‡ |
|
| 1,010,000 |
|
| 1,010,139 |
OneMain Financial Issuance Trust, Class A, Series 2015-1A, 3.19%, 03/18/26‡ |
|
| 67,293 |
|
| 67,521 |
OneMain Financial Issuance Trust, Class A, Series 2015-2A, 2.57%, 07/18/25‡ |
|
| 40,567 |
|
| 40,608 |
Oportun Funding IX LLC, Class A, Series 2018-B, 3.91%, 07/08/24‡ |
|
| 390,000 |
|
| 389,957 |
Investments |
| Principal |
| Value | ||
ASSET BACKED SECURITIES (continued) | ||||||
| ||||||
Orange Lake Timeshare Trust, Class A, Series 2012-AA, 3.45%, 03/10/27‡ |
| $ | 38,015 |
| $ | 38,024 |
Orange Lake Timeshare Trust, Class A, Series 2015-AA, 2.88%, 09/08/27‡ |
|
| 221,524 |
|
| 217,018 |
Prestige Auto Receivables Trust, Class C, Series 2017-1A, 2.81%, 01/17/23‡ |
|
| 810,000 |
|
| 794,889 |
Prosper Marketplace Issuance Trust, Class A, Series 2018-1A, 3.11%, 06/17/24‡ |
|
| 380,259 |
|
| 380,393 |
Santander Drive Auto Receivables Trust, Class C, Series 2016-1, 3.09%, 04/15/22 |
|
| 1,370,000 |
|
| 1,371,759 |
Santander Drive Auto Receivables Trust, Class C, Series 2017-1, 2.58%, 05/16/22 |
|
| 650,000 |
|
| 645,615 |
Sierra Timeshare Receivables Funding LLC, Class A, Series 2014-1A, 2.07%, 03/20/30‡ |
|
| 59,051 |
|
| 58,919 |
Sierra Timeshare Receivables Funding LLC, Class A, Series 2014-2A, 2.05%, 06/20/31@‡* |
|
| 37,025 |
|
| 36,862 |
Silverleaf Finance XVIII LLC, Class A, Series 2014-A, 2.81%, 01/15/27‡ |
|
| 99,530 |
|
| 99,490 |
Skopos Auto Receivables Trust, Class A, Series 2018-1A, 3.19%, 09/15/21‡ |
|
| 390,782 |
|
| 390,932 |
SLM Private Education Loan Trust, Class A2A, Series 2013-B, 1.85%, 06/17/30‡ |
|
| 298,230 |
|
| 296,084 |
|
|
|
|
|
|
|
SLM Private Education Loan Trust, Class A2A, Series 2013-C, 2.94%, 10/15/31‡ |
|
| 122,181 |
|
| 122,394 |
Sofi Consumer Loan Program LLC, Class A, Series 2016-3, 3.05%, 12/26/25‡ |
|
| 519,269 |
|
| 517,808 |
Sofi Consumer Loan Program LLC, Class A, Series 2017-1, 3.28%, 01/26/26‡ |
|
| 490,112 |
|
| 489,867 |
Sofi Professional Loan Program LLC, Class A2A, Series 2017-C, 1.75%, 07/25/40‡ |
|
| 398,766 |
|
| 395,387 |
SoFi Professional Loan Program LLC, Class A1FX, Series 2017-B, 1.83%, 05/25/40‡ |
|
| 273,585 |
|
| 272,195 |
Springleaf Funding Trust, Class A, Series 2016-AA, 2.90%, 11/15/29‡ |
|
| 805,000 |
|
| 801,062 |
See accompanying Notes to Financial Statements.
70
ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)
June 30, 2018
Investments |
| Principal |
| Value | ||
ASSET BACKED SECURITIES (continued) | ||||||
| ||||||
Taco Bell Funding LLC, Class A2I, Series 2016-1A, 3.83%, 05/25/46‡ |
| $ | 453,100 |
| $ | 454,491 |
Tesla Auto Lease Trust, Class A, Series 2018-A, 2.32%, 12/20/19‡ |
|
| 447,081 |
|
| 445,682 |
Tidewater Auto Receivables Trust, Class B, Series 2018-AA, 3.45%, 11/15/24‡ |
|
| 525,000 |
|
| 525,038 |
TRIP Rail Master Funding LLC, Class A1, Series 2017-1A, 2.71%, 08/15/47‡ |
|
| 561,178 |
|
| 553,921 |
Welk Resorts LLC, Class A, Series 2015-AA, 2.79%, 06/16/31‡ |
|
| 280,691 |
|
| 275,692 |
Wendys Funding LLC, Class A2II, Series 2015-1A, 4.08%, 06/15/45‡ |
|
| 520,288 |
|
| 527,270 |
Westgate Resorts LLC, Class A, Series 2016-1A, 3.50%, 12/20/28‡ |
|
| 278,649 |
|
| 277,886 |
Westgate Resorts LLC, Class A, Series 2018-1A, 3.38%, 12/20/31‡ |
|
| 506,609 |
|
| 505,719 |
Westlake Automobile Receivables Trust, Class B, Series 2016-3A, 2.07%, 12/15/21‡ |
|
| 605,000 |
|
| 603,649 |
Westlake Automobile Receivables Trust, Class C, Series 2016-2A, 2.83%, 05/17/21‡ |
|
| 780,000 |
|
| 779,956 |
Total Asset Backed Securities |
|
|
|
|
|
|
(Cost $45,573,590) |
|
|
|
|
| 45,356,672 |
|
|
|
|
|
|
|
CORPORATE BONDS — 20.0% |
|
|
| |||
Consumer Discretionary — 2.2% |
|
|
| |||
Aptiv PLC, 3.15%, 11/19/20 |
|
| 530,000 |
|
| 526,452 |
Charter Communications Operating LLC/Charter Communications Operating Capital, 4.50%, 02/01/24 |
|
| 235,000 |
|
| 235,056 |
Dollar Tree, Inc., 3.06%, (3-Month USD LIBOR + 0.70%), 04/17/20@ |
|
| 97,000 |
|
| 97,210 |
DR Horton, Inc., 4.75%, 02/15/23(a) |
|
| 410,000 |
|
| 423,620 |
Ford Motor Credit Co. LLC, 3.20%, 01/15/21 |
|
| 650,000 |
|
| 643,066 |
General Motors Financial Co., Inc., 3.55%, 04/09/21 |
|
| 94,000 |
|
| 93,756 |
Hyundai Capital America, 2.45%, 06/15/21‡ |
|
| 515,000 |
|
| 497,144 |
Lennar Corp., 5.25%, 06/01/26 |
|
| 390,000 |
|
| 384,150 |
Investments |
| Principal |
| Value | ||
CORPORATE BONDS (continued) | ||||||
|
|
|
|
|
|
|
Consumer Discretionary (continued) |
|
|
| |||
TRI Pointe Group, Inc./TRI Pointe Homes, Inc., 5.88%, 06/15/24 |
| $ | 495,000 |
| $ | 493,762 |
Total Consumer Discretionary |
|
|
|
|
| 3,394,216 |
|
|
|
|
|
|
|
Consumer Staples — 1.0% |
|
|
| |||
Campbell Soup Co., 3.30%, 03/15/21 |
|
| 110,000 |
|
| 109,615 |
Campbell Soup Co., 3.65%, 03/15/23 |
|
| 450,000 |
|
| 442,315 |
CVS Health Corp., 3.05%, (3-Month USD LIBOR + 0.72%), 03/09/21@ |
|
| 130,000 |
|
| 130,706 |
CVS Health Corp., 3.70%, 03/09/23 |
|
| 382,000 |
|
| 380,468 |
Kraft Heinz Foods Co., 3.50%, 07/15/22 |
|
| 281,000 |
|
| 277,993 |
Kraft Heinz Foods Co., 4.00%, 06/15/23 |
|
| 265,000 |
|
| 264,505 |
Total Consumer Staples |
|
|
|
|
| 1,605,602 |
|
|
|
|
|
|
|
Energy — 0.9% |
|
|
|
|
|
|
Carrizo Oil & Gas, Inc., 6.25%, 04/15/23(a) |
|
| 350,000 |
|
| 356,125 |
Kinder Morgan, Inc., 3.15%, 01/15/23 |
|
| 350,000 |
|
| 338,285 |
Kinder Morgan, Inc., 5.63%, 11/15/23‡ |
|
| 545,000 |
|
| 580,993 |
Transocean Guardian Ltd., 5.88%, 01/15/24‡ |
|
| 115,000 |
|
| 114,713 |
Total Energy |
|
|
|
|
| 1,390,116 |
|
|
|
|
|
|
|
Financials — 8.9% |
|
|
|
|
|
|
Ares Capital Corp., 3.50%, 02/10/23 |
|
| 545,000 |
|
| 520,011 |
Aviation Capital Group LLC, 3.88%, 05/01/23‡ |
|
| 306,000 |
|
| 305,445 |
Bank of America Corp., 5.49%, 03/15/19 |
|
| 66,000 |
|
| 67,123 |
Bank of America Corp., 3.36%, (3-Month USD LIBOR + 1.00%), 04/24/23@ |
|
| 535,000 |
|
| 540,922 |
Bank of America Corp., 3.13%, (3-Month USD LIBOR + 0.77%), 02/05/26@ |
|
| 96,000 |
|
| 94,365 |
Bank of New York Mellon Corp. (The), Series E, 4.95%, (3-Month USD LIBOR + 3.42%)#@ |
|
| 555,000 |
|
| 567,487 |
Citigroup, Inc., 3.32%, (3-Month USD LIBOR + 0.96%), 04/25/22@ |
|
| 670,000 |
|
| 676,314 |
See accompanying Notes to Financial Statements.
71
ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)
June 30, 2018
Investments |
| Principal |
| Value | ||
CORPORATE BONDS (continued) | ||||||
|
|
|
|
|
|
|
Financials (continued) |
|
|
| |||
Citigroup, Inc., 3.58%, (3-Month USD LIBOR + 1.25%), 07/01/26@ |
| $ | 850,000 |
| $ | 850,679 |
First Tennessee Bank NA, 2.95%, 12/01/19 |
|
| 250,000 |
|
| 248,930 |
FS Investment Corp., 4.25%, 01/15/20 |
|
| 585,000 |
|
| 586,445 |
Goldman Sachs Group, Inc. (The), 2.35%, 11/15/21 |
|
| 165,000 |
|
| 158,806 |
Goldman Sachs Group, Inc. (The), 3.00%, 04/26/22 |
|
| 515,000 |
|
| 503,373 |
Goldman Sachs Group, Inc. (The), 3.92%, (3-Month USD LIBOR + 1.60%), 11/29/23@ |
|
| 270,000 |
|
| 279,116 |
Goldman Sachs Group, Inc. (The), 3.49%, (3-Month USD LIBOR + 1.17%), 05/15/26@ |
|
| 595,000 |
|
| 588,352 |
Goldman Sachs Group, Inc. (The), 4.11%, (3-Month USD LIBOR + 1.75%), 10/28/27@ |
|
| 650,000 |
|
| 663,683 |
Huntington Bancshares, Inc., 7.00%, 12/15/20(a) |
|
| 200,000 |
|
| 215,881 |
Icahn Enterprises LP/Icahn Enterprises Finance Corp., 6.25%, 02/01/22 |
|
| 350,000 |
|
| 357,875 |
iStar, Inc., 6.00%, 04/01/22 |
|
| 235,000 |
|
| 235,588 |
Jefferies Group LLC, 6.88%, 04/15/21 |
|
| 82,000 |
|
| 88,427 |
JPMorgan Chase & Co., 3.26%, (3-Month USD LIBOR + 0.90%), 04/25/23@ |
|
| 400,000 |
|
| 403,683 |
JPMorgan Chase & Co., Series Z, 5.30%, (3-Month USD LIBOR + 3.80%)#@ |
|
| 805,000 |
|
| 821,905 |
Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp., 5.88%, 08/01/21‡ |
|
| 425,000 |
|
| 435,923 |
Lincoln National Corp., 4.40%, (3-Month USD LIBOR + 2.04%), 04/20/67@ |
|
| 100,000 |
|
| 93,250 |
Morgan Stanley, 3.76%, (3-Month USD LIBOR + 1.40%), 10/24/23@ |
|
| 1,950,000 |
|
| 1,995,813 |
Navient Corp., 6.50%, 06/15/22 |
|
| 290,000 |
|
| 297,250 |
Nuveen Finance LLC, 2.95%, 11/01/19‡ |
|
| 400,000 |
|
| 398,568 |
Santander Holdings USA, Inc., 3.70%, 03/28/22 |
|
| 585,000 |
|
| 576,889 |
Investments |
| Principal |
| Value | ||
CORPORATE BONDS (continued) | ||||||
|
|
|
|
|
|
|
Financials (continued) |
|
|
|
|
|
|
SBA Tower Trust, 3.16%, 10/08/20‡ |
| $ | 570,000 |
| $ | 565,409 |
SBA Tower Trust, 2.88%, 07/09/21‡ |
|
| 780,000 |
|
| 758,640 |
Total Financials |
|
|
|
|
| 13,896,152 |
|
|
|
|
|
|
|
Health Care — 2.0% |
|
|
|
|
|
|
Allergan Funding SCS, 3.00%, 03/12/20 |
|
| 85,000 |
|
| 84,632 |
Allergan Funding SCS, 3.45%, 03/15/22 |
|
| 85,000 |
|
| 83,711 |
Anthem, Inc., 2.95%, 12/01/22 |
|
| 347,000 |
|
| 337,351 |
Becton Dickinson and Co., 3.21%, (3-Month USD LIBOR + 0.88%), 12/29/20@ |
|
| 183,000 |
|
| 183,317 |
Becton Dickinson and Co., 2.89%, 06/06/22 |
|
| 622,000 |
|
| 602,171 |
Cardinal Health, Inc., 1.95%, 06/14/19 |
|
| 400,000 |
|
| 396,767 |
Cardinal Health, Inc., 2.62%, 06/15/22 |
|
| 640,000 |
|
| 614,081 |
Tenet Healthcare Corp., 4.63%, 07/15/24‡ |
|
| 485,000 |
|
| 461,211 |
Zimmer Biomet Holdings, Inc., 3.15%, 04/01/22 |
|
| 295,000 |
|
| 289,855 |
Total Health Care |
|
|
|
|
| 3,053,096 |
|
|
|
|
|
|
|
Industrials — 1.7% |
|
|
|
|
|
|
Continental Airlines Class C-2 Pass-Through Trust, Series AMBC, 6.24%, 03/15/20 |
|
| 87,426 |
|
| 89,393 |
General Dynamics Corp., 3.00%, 05/11/21 |
|
| 155,000 |
|
| 154,565 |
General Electric Co., Series D, 5.00%, (3-Month USD LIBOR + 3.33%)#@ |
|
| 370,000 |
|
| 364,912 |
Masco Corp., 3.50%, 04/01/21 |
|
| 515,000 |
|
| 514,658 |
Penske Truck Leasing Co. LP/PTL Finance Corp., 2.50%, 06/15/19 |
|
| 195,000 |
|
| 193,967 |
Penske Truck Leasing Co. LP/PTL Finance Corp., 4.13%, 08/01/23‡ |
|
| 385,000 |
|
| 386,586 |
Pitney Bowes, Inc., 4.38%, 05/15/22 |
|
| 738,000 |
|
| 672,753 |
TransDigm, Inc., 6.50%, 07/15/24 |
|
| 270,000 |
|
| 275,400 |
Total Industrials |
|
|
|
|
| 2,652,234 |
|
|
|
|
|
|
|
See accompanying Notes to Financial Statements.
72
ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)
June 30, 2018
Investments |
| Principal |
| Value | ||
CORPORATE BONDS (continued) | ||||||
| ||||||
Information Technology — 0.3% |
|
|
| |||
Broadcom Corp./Broadcom Cayman Finance Ltd., 2.38%, 01/15/20 |
| $ | 395,000 |
| $ | 389,998 |
|
|
|
|
|
|
|
Materials — 0.2% |
|
|
|
|
|
|
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer Lu, 5.85%, (3-Month USD LIBOR + 3.50%), 07/15/21@‡ |
|
| 380,000 |
|
| 384,484 |
|
|
|
|
|
|
|
Real Estate — 0.5% |
|
|
|
|
|
|
Education Realty Operating Partnership LP, 4.60%, 12/01/24 |
|
| 100,000 |
|
| 100,548 |
Government Properties Income Trust, 3.75%, 08/15/19 |
|
| 85,000 |
|
| 85,128 |
Hospitality Properties Trust, 4.65%, 03/15/24 |
|
| 515,000 |
|
| 515,290 |
Total Real Estate |
|
|
|
|
| 700,966 |
|
|
|
|
|
|
|
Telecommunication Services — 2.0% |
|
|
| |||
AT&T, Inc., 3.25%, (3-Month USD LIBOR + 0.89%), 02/15/23@‡ |
|
| 525,000 |
|
| 530,539 |
Crown Castle International Corp., 4.88%, 04/15/22 |
|
| 355,000 |
|
| 366,289 |
Motorola Solutions, Inc., 3.75%, 05/15/22 |
|
| 51,173 |
|
| 51,053 |
Motorola Solutions, Inc., 3.50%, 03/01/23 |
|
| 260,000 |
|
| 252,101 |
Sprint Spectrum Co. LLC/Sprint Spectrum Co. II LLC/Sprint Spectrum Co. III LLC, 3.36%, 09/20/21‡ |
|
| 633,750 |
|
| 628,205 |
Sprint Spectrum Co. LLC/Sprint Spectrum Co. II LLC/Sprint Spectrum Co. III LLC, 4.74%, 03/20/25‡ |
|
| 445,000 |
|
| 442,686 |
Verizon Communications, Inc., 3.44%, (3-Month USD LIBOR + 1.10%), 05/15/25@ |
|
| 782,000 |
|
| 781,827 |
Total Telecommunication Services |
|
|
|
|
| 3,052,700 |
|
|
|
|
|
|
|
Utilities — 0.3% |
|
|
|
|
|
|
PSEG Power LLC, 3.85%, 06/01/23 |
|
| 510,000 |
|
| 508,225 |
Total Corporate Bonds |
|
|
|
|
|
|
(Cost $31,383,473) |
|
|
|
|
| 31,027,789 |
|
|
|
|
|
|
|
Investments |
| Principal |
| Value | ||
TERM LOANS — 11.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerospace — 0.6% |
|
|
|
|
|
|
TransDigm, Inc., 4.48%, (1-Month USD LIBOR + 2.50%), 06/09/23@ |
| $ | 202,440 |
| $ | 201,504 |
TransDigm, Inc., 4.59%, (1-Month USD LIBOR + 2.50%), 08/22/24@ |
|
| 168,304 |
|
| 167,323 |
TransDigm, Inc., 4.48%, (1-Month USD LIBOR + 2.50%), 05/30/25@ |
|
| 74,813 |
|
| 74,339 |
United AirLines, Inc., 3.84%, (1-Month USD LIBOR + 1.75%), 04/01/24@ |
|
| 424,625 |
|
| 420,910 |
Total Aerospace |
|
|
|
|
| 864,076 |
|
|
|
|
|
|
|
Chemicals — 0.2% |
|
|
|
|
|
|
Ineos US Finance LLC, 4.09%, (1-Month USD LIBOR + 2.00%), 04/01/24@ |
|
| 363,175 |
|
| 361,699 |
|
|
|
|
|
|
|
Consumer Non-Durables — 0.1% |
|
|
| |||
Energizer Holdings, Inc., 06/21/25(b) |
|
| 80,000 |
|
| 80,100 |
HLF Financing, 7.59%, (1-Month USD LIBOR + 5.50%), 02/15/23@ |
|
| 117,813 |
|
| 119,028 |
Total Consumer Non-Durables |
|
|
|
|
| 199,128 |
|
|
|
|
|
|
|
Energy — 0.4% |
|
|
|
|
|
|
Medallion Midland Acquisition, LLC, 5.34%, (1-Month USD LIBOR + 3.25%), 10/30/24@ |
|
| 258,700 |
|
| 256,760 |
Ultra Resources, Inc., 5.09%, (1-Month USD LIBOR + 3.00%), 04/12/24@ |
|
| 365,000 |
|
| 337,170 |
Total Energy |
|
|
|
|
| 593,930 |
|
|
|
|
|
|
|
Financials — 0.2% |
|
|
|
|
|
|
Delos Finance S.a.r.l., 4.08%, (3-Month USD LIBOR + 1.75%), 10/06/23@ |
|
| 289,000 |
|
| 289,361 |
|
|
|
|
|
|
|
Food and Drug — 0.3% |
|
|
|
|
|
|
Albertson’s LLC, 4.84%, (1-Month USD LIBOR + 2.75%), 08/25/21@ |
|
| 478,994 |
|
| 475,076 |
|
|
|
|
|
|
|
Food/Tobacco — 0.6% |
|
|
|
|
|
|
Aramark Servies, Inc., 3.72%, (3-Month USD LIBOR + 1.75%), 03/28/24@ |
|
| 342,580 |
|
| 342,955 |
Hostess Brands, LLC, 4.34%, (1-Month USD LIBOR + 2.25%), 08/03/22@ |
|
| 465,123 |
|
| 462,944 |
See accompanying Notes to Financial Statements.
73
ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)
June 30, 2018
Investments |
| Principal |
| Value | ||
TERM LOANS (continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Food/Tobacco (continued) |
|
|
|
|
|
|
JBS U.S., 4.83%, (3-Month USD LIBOR + 2.50%), 10/30/22@ |
| $ | 175,970 |
| $ | 174,871 |
Total Food/Tobacco |
|
|
|
|
| 980,770 |
|
|
|
|
|
|
|
Gaming/Leisure — 2.1% |
|
|
|
|
|
|
Aristocrat Leisure Limited, 4.11%, (3-Month USD LIBOR + 1.75%), 10/19/24@ |
|
| 423,938 |
|
| 421,818 |
Eldorado Resorts, Inc., 4.38%, (2-Month USD LIBOR + 2.25%), 04/17/24@ |
|
| 594,085 |
|
| 593,345 |
GVC Holdings PLC, 03/29/24(b) |
|
| 339,150 |
|
| 338,940 |
MGM Growth Properties Operating Partnership LP, 4.09%, (1-Month USD LIBOR + 2.00%), 03/25/25@ |
|
| 612,893 |
|
| 610,784 |
Playa Resorts Holding B.V., 4.84%, (1-Month USD LIBOR + 2.75%), 04/29/24@ |
|
| 468,530 |
|
| 464,137 |
Scientific Games International, Inc., 4.84%, (2-Month USD LIBOR + 2.75%), 08/14/24@ |
|
| 4,988 |
|
| 4,961 |
Seminole Tribe of Florida, 3.84%, (1-Month USD LIBOR + 1.75%), 07/08/24@ |
|
| 397,000 |
|
| 398,417 |
Station Casinos LLC, 4.60%, (1-Month USD LIBOR + 2.50%), 06/08/23@ |
|
| 370,614 |
|
| 369,919 |
Total Gaming/Leisure |
|
|
|
|
| 3,202,321 |
|
|
|
|
|
|
|
Health Care — 0.9% |
|
|
|
|
|
|
Acadia Healthcare Co., Inc., 4.59%, (1-Month USD LIBOR + 2.50%), 02/16/23@ |
|
| 172,171 |
|
| 172,909 |
CHS/Community Health Systems, Inc., 5.56%, (3-Month USD LIBOR + 3.25%), 01/27/21@ |
|
| 313,963 |
|
| 307,097 |
IQVIA Holdings, Inc., 4.08%, (3-Month USD LIBOR + 1.75%), 06/11/25@ |
|
| 230,000 |
|
| 228,275 |
Syneos Health, Inc. (fka INC Research Holdings, Inc.), 4.09%, (1-Month USD LIBOR + 2.00%), 08/01/24@ |
|
| 187,703 |
|
| 187,028 |
Valeant Pharmaceuticals International, Inc., 4.98%, (3-Month USD LIBOR + 3.00%), 06/02/25@ |
|
| 513,969 |
|
| 512,900 |
Total Health Care |
|
|
|
|
| 1,408,209 |
|
|
|
|
|
|
|
Investments |
| Principal |
| Value | ||
TERM LOANS (continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Housing — 0.8% |
|
|
|
|
|
|
Capital Automotive LP, 4.60%, (1-Month USD LIBOR + 2.50%), 03/25/24@ |
| $ | 507,623 |
| $ | 505,720 |
Quikrete Holdings, Inc., 4.84%, (1-Month USD LIBOR + 2.75%), 11/15/23@ |
|
| 445,192 |
|
| 443,892 |
Realogy Group, 4.30%, (1-Month USD LIBOR + 2.25%), 02/08/25@ |
|
| 284,308 |
|
| 284,042 |
Total Housing |
|
|
|
|
| 1,233,654 |
|
|
|
|
|
|
|
Information Technology — 0.9% |
|
|
| |||
Kronos, Inc., 5.36%, (3-Month USD LIBOR + 3.00%), 11/01/23@ |
|
| 328,852 |
|
| 328,647 |
Rackspace Hosting, Inc., 5.36%, (3-Month USD LIBOR + 3.00%), 11/03/23@ |
|
| 498,535 |
|
| 493,029 |
SS&C European Holdings S.a.r.l., 4.59%, (1-Month USD LIBOR + 2.50%), 04/16/25@ |
|
| 143,416 |
|
| 143,624 |
SS&C Technologies, Inc., 4.59%, (1-Month USD LIBOR + 2.50%), 04/16/25@ |
|
| 379,093 |
|
| 379,644 |
Total Information Technology |
|
|
|
|
| 1,344,944 |
|
|
|
|
|
|
|
Media/Telecom – Broadcasting — 0.6% |
|
|
| |||
Sinclair Television Group, Inc., 12/12/24(b) |
|
| 505,000 |
|
| 504,055 |
Univision Communications, 4.84%, (1-Month USD LIBOR + 2.75%), 03/15/24@ |
|
| 496,435 |
|
| 480,510 |
Total Media/Telecom – Broadcasting |
|
|
|
|
| 984,565 |
|
|
|
|
|
|
|
Media/Telecom – Cable/Wireless Video — 1.1% | ||||||
Charter Communications Operating, LLC (aka CCO Safari LLC), 4.10%, (1-Month USD LIBOR + 2.00%), 04/30/25@ |
|
| 466,665 |
|
| 466,555 |
CSC Holdings, LLC (fka CSC Holdings Inc. (Cablevision)), 4.32%, (1-Month USD LIBOR + 2.25%), 07/17/25@ |
|
| 390,038 |
|
| 388,047 |
Telenet Financing, 4.32%, (1-Month USD LIBOR + 2.25%), 08/15/26@ |
|
| 415,000 |
|
| 411,757 |
Virgin Media Bristol LLC, 4.57%, (1-Month USD LIBOR + 2.50%), 01/15/26@ |
|
| 495,000 |
|
| 492,062 |
Total Media/Telecom – Cable/Wireless Video |
|
|
|
|
| 1,758,421 |
See accompanying Notes to Financial Statements.
74
ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)
June 30, 2018
Investments |
| Principal |
| Value | ||
TERM LOANS (continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Media/Telecom - Diversified Media — 0.4% | ||||||
McGraw-Hill Global Education Holdings LLC, 6.09%, (1-Month USD LIBOR + 4.00%), 05/04/22@ |
| $ | 329,032 |
| $ | 322,520 |
Meredith Corp., 5.09%, (1-Month USD LIBOR + 3.00%), 01/31/25@ |
|
| 264,338 |
|
| 264,606 |
Total Media/Telecom – Diversified Media |
|
|
|
|
| 587,126 |
|
|
|
|
|
|
|
Media/Telecom – Telecommunications — 1.0% | ||||||
CenturyLink, Inc., 4.84%, (1-Month USD LIBOR + 2.75%), 01/31/25@ |
|
| 363,175 |
|
| 356,289 |
Frontier Communications Corp., 5.85%, (1-Month USD LIBOR + 3.75%), 06/15/24@ |
|
| 298,492 |
|
| 295,602 |
Level 3 Financing, Inc., 4.33%, (1-Month USD LIBOR + 2.25%), 02/22/24@ |
|
| 815,000 |
|
| 813,537 |
TDC A/S, 06/11/25(b) |
|
| 145,000 |
|
| 144,955 |
Total Media/Telecom – Telecommunications |
|
|
|
|
| 1,610,383 |
|
|
|
|
|
|
|
Media/Telecom – Wireless Communications — 0.1% | ||||||
SBA Senior Finance II LLC, 4.10%, (1-Month USD LIBOR + 2.00%), 04/11/25@ |
|
| 195,000 |
|
| 193,972 |
|
|
|
|
|
|
|
Service — 0.5% |
|
|
|
|
|
|
First Data Corp., 4.09%, (1-Month USD LIBOR + 2.00%), 07/08/22@ |
|
| 249,622 |
|
| 248,842 |
First Data Corp., 4.09%, (1-Month USD LIBOR + 2.00%), 04/26/24@ |
|
| 487,489 |
|
| 485,268 |
Total Service |
|
|
|
|
| 734,110 |
|
|
|
|
|
|
|
Utilities — 0.9% |
|
|
|
|
|
|
Calpine Corp., 4.84%, (3-Month USD LIBOR + 2.50%), 01/15/24@ |
|
| 435,530 |
|
| 435,301 |
NRG Energy, Inc., 4.08%, (3-Month USD LIBOR + 1.75%), 06/30/23@ |
|
| 381,626 |
|
| 379,791 |
Vistra Operations Company LLC (fka Tex Operations Company LLC), 4.06%, |
|
| 320,000 |
|
| 318,378 |
Investments |
| Principal |
| Value | ||
TERM LOANS (continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Utilities (continued) |
|
|
|
|
|
|
Vistra Operations Company LLC (fka Tex Operations Company LLC), 4.09%, (1-Month USD LIBOR + 2.00%), 08/04/23@ |
| $ | 226,148 |
| $ | 224,859 |
Total Utilities |
|
|
|
|
| 1,358,329 |
Total Term Loans |
|
|
|
|
|
|
(Cost $18,268,843) |
|
|
|
|
| 18,180,074 |
|
|
|
|
|
|
|
FOREIGN BONDS — 4.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Staples — 0.5% |
|
|
| |||
BAT Capital Corp. (United Kingdom), 2.76%, 08/15/22‡ |
|
| 805,000 |
|
| 772,653 |
|
|
|
|
|
|
|
Financials — 1.6% |
|
|
|
|
|
|
AerCap Ireland Capital DAC/AerCap Global Aviation Trust (Ireland), 4.50%, 05/15/21 |
|
| 405,000 |
|
| 412,921 |
AerCap Ireland Capital DAC/AerCap Global Aviation Trust (Ireland), 3.95%, 02/01/22 |
|
| 150,000 |
|
| 149,238 |
Guanay Finance Ltd. (Chile), 6.00%, 12/15/20‡ |
|
| 527,281 |
|
| 531,236 |
HSBC Holdings PLC (United Kingdom), 2.95%, 05/25/21 |
|
| 640,000 |
|
| 630,358 |
Mizuho Financial Group, Inc. (Japan), 2.27%, 09/13/21 |
|
| 785,000 |
|
| 753,716 |
Total Financials |
|
|
|
|
| 2,477,469 |
|
|
|
|
|
|
|
Health Care — 0.3% |
|
|
|
|
|
|
Bayer US Finance II LLC (Germany), 2.97%, (3-Month USD LIBOR + 0.63%), 06/25/21@‡ |
|
| 310,000 |
|
| 310,568 |
Bayer US Finance II LLC (Germany), 3.35%, (3-Month USD LIBOR + 1.01%), 12/15/23@‡ |
|
| 235,000 |
|
| 235,163 |
Total Health Care |
|
|
|
|
| 545,731 |
|
|
|
|
|
|
|
Industrials — 0.5% |
|
|
|
|
|
|
British Airways Class B Pass Through Trust (United Kingdom), 5.63%, 06/20/20‡ |
|
| 140,173 |
|
| 143,090 |
See accompanying Notes to Financial Statements.
75
ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)
June 30, 2018
Investments |
| Principal |
| Value | ||
FOREIGN BONDS (continued) |
|
|
| |||
|
|
|
|
|
|
|
Industrials (continued) |
|
|
| |||
Doric Nimrod Air Finance Alpha Ltd. Class A Pass-Through Trust, Series 2012-1A (Guernsey), 5.13%, 11/30/22‡ |
| $ | 551,814 |
| $ | 570,372 |
Total Industrials |
|
|
|
|
| 713,462 |
|
|
|
| |||
Information Technology — 0.1% |
|
|
| |||
Tencent Holdings Ltd. (China), 2.99%, 01/19/23‡ |
|
| 200,000 |
|
| 194,581 |
|
|
|
|
|
|
|
Materials — 1.4% |
|
|
|
|
|
|
ArcelorMittal (Luxembourg), 6.13%, 06/01/25(a) |
|
| 365,000 |
|
| 395,112 |
FMG Resources August 2006 Pty Ltd. (Australia), 5.13%, 03/15/23‡(a) |
|
| 240,000 |
|
| 233,400 |
Glencore Funding LLC (Switzerland), 4.13%, 05/30/23‡ |
|
| 640,000 |
|
| 639,302 |
James Hardie International Finance Dac (Ireland), 4.75%, 01/15/25‡ |
|
| 345,000 |
|
| 338,100 |
NOVA Chemicals Corp. (Canada), 4.88%, 06/01/24‡ |
|
| 70,000 |
|
| 66,762 |
NOVA Chemicals Corp. (Canada), 5.00%, 05/01/25‡ |
|
| 545,000 |
|
| 517,750 |
Total Materials |
|
|
|
|
| 2,190,426 |
Total Foreign Bonds |
|
|
|
|
|
|
(Cost $7,046,598) |
|
|
|
|
| 6,894,322 |
|
|
|
|
|
|
|
MONEY MARKET FUND — 4.6% | ||||||
JPMorgan U.S. Government Money Market Fund – Institutional Class, 1.76%(c) (Cost $7,209,505) |
|
| 7,209,505 |
|
| 7,209,505 |
|
|
|
|
|
|
|
REPURCHASE AGREEMENTS — 0.6%(d) |
|
|
| |||
Deutsche Bank Securities, Inc., dated 06/29/18, due 07/02/18, 2.12%, total to be received $250,044, (collateralized by various U.S. Government Agency Obligations, 0.00% – 7.25%, 07/27/18 – 09/06/44, totaling $253,704) |
| $ | 250,000 |
|
| 250,000 |
Investments |
| Principal |
| Value | ||
FOREIGN BONDS (continued) |
|
|
| |||
|
|
|
|
|
|
|
REPURCHASE AGREEMENTS (continued) |
| |||||
NatWest Markets PLC, dated 06/29/18, due 07/02/18, 2.09%, total to be received $11,182, (collateralized by various U.S. Government Agency Obligations, 2.50% – 6.63%, 05/15/20 – 05/15/46, totaling $11,337) |
| $ | 11,180 |
| $ | 11,180 |
NBC Global Finance Ltd., dated 06/29/18, due 07/02/18, 1.95%, total to be received $250,041, (collateralized by various U.S. Government Agency Obligations, 0.00% – 3.63%, 01/31/20 – 09/09/49, totaling $254,375) |
|
| 250,000 |
|
| 250,000 |
Nomura Securities International, Inc., dated 06/29/18, due 07/02/18, 2.12%, total to be received $250,044, (collateralized by various U.S. Government Agency Obligations, 0.00% – 9.00%, 07/15/18 – 05/20/68, totaling $254,049) |
|
| 250,000 |
|
| 250,000 |
RBC Dominion Securities, Inc., dated 06/29/18, due 07/02/18, 2.11%, total to be received $250,044, (collateralized by various U.S. Government Agency Obligations, 3.00% – 7.00%, 11/01/36 – 06/01/48, totaling $254,194) |
|
| 250,000 |
|
| 250,000 |
Total Repurchase Agreements |
|
|
| |||
(Cost $1,011,180) |
|
|
|
|
| 1,011,180 |
Total Investments — 100.7% |
|
|
|
|
|
|
(Cost $157,753,405) |
|
|
|
|
| 156,682,978 |
Liabilities in Excess of Other Assets — (0.7%) |
|
|
|
|
| (1,154,148) |
|
|
|
|
|
|
|
Net Assets — 100.0% |
|
|
|
| $ | 155,528,830 |
____________
LP — Limited Partnership
PLC — Public Limited Company
# Perpetual security with no stated maturity date.
@ Variable rate instrument. The interest rate shown reflects the rate in effect at June 30, 2018.
* Adjustable rate security with an interest rate that is not based on a published reference index and spread. The rate is based on the structure of the agreement and current market conditions.
See accompanying Notes to Financial Statements.
76
ADVISORSHARES NEWFLEET MULTI-SECTOR INCOME ETF
Schedule of Investments (continued)
June 30, 2018
‡ 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 $984,775; the aggregate market value of the collateral held by the fund is $1,011,180.
(b) This loan will settle after June 30, 2018 at which time the interest rate will be determined.
(c) Rate shown reflects the 7-day yield as of June 30, 2018.
(d) Collateral received from brokers for securities lending was invested in these short-term investments.
SUMMARY OF SCHEDULE OF INVESTMENTS
|
| % of | |
Aerospace |
| 0.6 | % |
Asset Backed Securities |
| 29.2 |
|
Chemicals |
| 0.2 |
|
Commercial Mortgage Backed Securities |
| 5.9 |
|
Consumer Discretionary |
| 2.2 |
|
Consumer Non-Durables |
| 0.1 |
|
Consumer Staples |
| 1.5 |
|
Energy |
| 1.3 |
|
Financials |
| 10.7 |
|
Food and Drug |
| 0.3 |
|
Food/Tobacco |
| 0.6 |
|
Gaming/Leisure |
| 2.1 |
|
Health Care |
| 3.2 |
|
Housing |
| 0.8 |
|
Industrials |
| 2.2 |
|
Information Technology |
| 1.3 |
|
Materials |
| 1.6 |
|
Media/Telecom – Broadcasting |
| 0.6 |
|
Media/Telecom – Cable/Wireless Video |
| 1.1 |
|
Media/Telecom – Diversified Media |
| 0.4 |
|
Media/Telecom – Telecommunications |
| 1.0 |
|
Media/Telecom – Wireless Communications |
| 0.1 |
|
Real Estate |
| 0.5 |
|
Residential Mortgage Backed Securities |
| 24.3 |
|
Service |
| 0.5 |
|
Telecommunication Services |
| 2.0 |
|
Utilities |
| 1.2 |
|
Money Market Fund |
| 4.6 |
|
Repurchase Agreements |
| 0.6 |
|
Total Investments |
| 100.7 |
|
Liabilities in Excess of Other Assets |
| (0.7 | ) |
Net Assets |
| 100.0 | % |
See accompanying Notes to Financial Statements.
77
ADVISORSHARES PACIFIC ASSET ENHANCED FLOATING RATE ETF
Schedule of Investments
June 30, 2018
Investments |
| Principal |
| Value | ||
TERM LOANS – 77.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising – 1.2% |
|
|
|
|
|
|
Acosta, Inc., 5.34%, (1-Month USD LIBOR + 3.25%), 09/26/21@ |
| $ | 483,784 |
| $ | 366,770 |
|
|
|
|
|
|
|
Aerospace / Defense – 2.3% |
|
|
|
|
|
|
Accudyne Industries Borrower SCA, 5.34%, (1-Month USD LIBOR + 3.25%), 08/19/24 (Luxembourg)@ |
|
| 238,144 |
|
| 237,958 |
TransDigm, Inc., 4.59%, (1-Month USD LIBOR + 2.50%), 06/09/23@ |
|
| 431,334 |
|
| 429,339 |
Total Aerospace / Defense |
|
|
|
|
| 667,297 |
Auto Manufacturers – 0.9% |
|
|
|
|
|
|
Navistar, Inc., 5.53%, (1-Month USD LIBOR + 3.50%), 11/06/24@ |
|
| 249,375 |
|
| 249,844 |
|
|
|
|
|
|
|
Auto Parts & Equipment – 2.1% |
|
|
|
|
|
|
Cooper-Standard Automotive, Inc., 4.09%, (1-Month USD LIBOR + 2.00%), 11/02/23@ |
|
| 224,389 |
|
| 224,669 |
Federal-Mogul LLC, 5.82%, (1-Month USD LIBOR + 3.75%), 04/15/21@ |
|
| 289,077 |
|
| 290,007 |
Federal-Mogul LLC, 5.83%, (1-Month USD LIBOR + 3.75%), 04/15/21@ |
|
| 95,676 |
|
| 95,983 |
Total Auto Parts & Equipment |
|
|
|
|
| 610,659 |
Building Materials – 1.7% |
|
|
|
|
|
|
Quikrete Holdings, Inc., 4.84%, (1-Month USD LIBOR + 2.75%), 11/15/23@ |
|
| 491,593 |
|
| 490,157 |
|
|
|
|
|
|
|
Chemicals – 1.5% |
|
|
|
|
|
|
MacDermid, Inc., 5.09%, (1-Month USD LIBOR + 3.00%), 06/07/23@ |
|
| 189,056 |
|
| 189,548 |
Solenis International LP, 12/26/23(a) |
|
| 250,000 |
|
| 249,796 |
Total Chemicals |
|
|
|
|
| 439,344 |
Coal – 0.8% |
|
|
|
|
|
|
Arch Coal, Inc., 4.84%, (1-Month USD LIBOR + 2.75%), 03/07/24@ |
|
| 247,494 |
|
| 246,566 |
|
|
|
|
|
|
|
Commercial Services – 3.7% |
|
|
|
|
|
|
Allied Universal Holdco LLC, 5.84%, (1-Month USD LIBOR + 3.75%), 07/28/22@ |
|
| 247,468 |
|
| 244,246 |
Brightview Landscapes LLC, 5.09%, (1-Month USD LIBOR + 3.00%), 12/18/20@ |
|
| 237,469 |
|
| 238,084 |
Brightview Landscapes LLC, 8.59%, (1-Month USD LIBOR + 6.50%), 12/17/21@ |
|
| 117,021 |
|
| 118,035 |
Investments |
| Principal |
| Value | ||
TERM LOANS (continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Services (continued) |
|
|
|
|
|
|
Camelot Finance LP, 5.34%, (1-Month USD LIBOR + 3.25%), 10/03/23@ |
| $ | 242,559 |
| $ | 242,165 |
Garda World Security Corp., 5.80%, (3-Month USD LIBOR + 3.50%), 05/24/24 (Canada)@ |
|
| 247,494 |
|
| 248,034 |
Garda World Security Corp., 7.50%, (Prime + 2.50%), 05/24/24 (Canada)@ |
|
| 627 |
|
| 628 |
Total Commercial Services |
|
|
|
|
| 1,091,192 |
|
|
|
|
|
|
|
Computers – 2.0% |
|
|
|
|
|
|
McAfee LLC, 6.59%, (1-Month USD LIBOR + 4.50%), 09/30/24@ |
|
| 248,125 |
|
| 249,765 |
Western Digital Corp., 3.84%, (1-Month USD LIBOR + 1.75%), 05/01/23@ |
|
| 326,542 |
|
| 326,882 |
Total Computers |
|
|
|
|
| 576,647 |
|
|
|
|
|
|
|
Distribution / Wholesale – 4.6% |
|
|
|
|
|
|
Nexeo Solutions LLC, 5.56%, (2-Month USD LIBOR + 3.25%), 06/09/23@ |
|
| 164,122 |
|
| 164,533 |
Nexeo Solutions LLC, 5.58%, (3-Month USD LIBOR + 3.25%), 06/09/23@ |
|
| 159,531 |
| $ | 159,930 |
Nexeo Solutions LLC, 5.61%, (2-Month USD LIBOR + 3.25%), 06/09/23@ |
|
| 166,412 |
|
| 166,828 |
Spin Holdco, Inc., 5.34%, (2-Month USD LIBOR + 3.25%), 11/14/22@ |
|
| 484,469 |
|
| 483,388 |
Univar USA, Inc., 4.59%, (1-Month USD LIBOR + 2.50%), 07/01/24@ |
|
| 375,082 |
|
| 374,645 |
Total Distribution / Wholesale |
|
|
|
|
| 1,349,324 |
|
|
|
|
|
|
|
Electric – 2.5% |
|
|
|
|
|
|
Talen Energy Supply LLC, 6.09%, (1-Month USD LIBOR + 4.00%), 04/15/24@ |
|
| 248,360 |
|
| 249,417 |
Vistra Operations Co. LLC, 4.23%, (1-Month USD LIBOR + 2.25%), 12/14/23@ |
|
| 118,750 |
|
| 118,355 |
Vistra Operations Co. LLC, 4.34%, (1-Month USD LIBOR + 2.25%), 12/14/23@ |
|
| 373,750 |
|
| 372,505 |
Total Electric |
|
|
|
|
| 740,277 |
|
|
|
|
|
|
|
Entertainment – 1.3% |
|
|
|
|
|
|
Cineworld Finance US, Inc., 4.59%, (1-Month USD LIBOR + 2.50%), 02/28/25 (United Kingdom)@ |
|
| 374,063 |
|
| 371,893 |
See accompanying Notes to Financial Statements.
78
ADVISORSHARES PACIFIC ASSET ENHANCED FLOATING RATE ETF
Schedule of Investments (continued)
June 30, 2018
Investments |
| Principal |
| Value | ||
TERM LOANS (continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Environmental Control – 0.8% |
|
|
|
|
|
|
Wrangler Buyer Corp., 4.84%, (1-Month USD LIBOR + 2.75%), 09/27/24@ |
| $ | 248,750 |
| $ | 248,563 |
|
|
|
|
|
|
|
Food – 2.8% |
|
|
|
|
|
|
Albertson’s LLC, 5.32%, (3-Month USD LIBOR + 3.00%), 06/22/23@ |
|
| 344,737 |
|
| 341,529 |
U.S. Foods, Inc., 4.09%, (1-Month USD LIBOR + 2.50%), 06/27/23@ |
|
| 483,782 |
|
| 483,808 |
Total Food |
|
|
|
|
| 825,337 |
|
|
|
|
|
|
|
Hand / Machine Tools – 1.6% |
|
|
|
|
|
|
Apex Tool Group LLC, 5.84%, (1-Month USD LIBOR + 3.75%), 02/01/22@ |
|
| 472,173 |
|
| 473,205 |
|
|
|
|
|
|
|
Healthcare - Products – 0.9% |
|
|
|
|
|
|
Avantor, Inc., 6.09%, (1-Month USD LIBOR + 4.00%), 11/21/24@ |
|
| 248,750 |
|
| 250,305 |
|
|
|
|
|
|
|
Healthcare - Services – 1.8% |
|
|
|
|
|
|
Air Medical Group Holdings, Inc., 5.28%, (1-Month USD LIBOR + 3.25%), 04/28/22@ |
|
| 247,481 |
|
| 240,985 |
CHS/Community Health Systems, Inc., 5.31%, (3-Month USD LIBOR + 3.00%), 12/31/19@ |
|
| 102,117 |
|
| 102,101 |
CHS/Community Health Systems, Inc., 5.56%, (3-Month USD LIBOR + 3.25%), 01/27/21@ |
|
| 189,150 |
|
| 185,013 |
Total Healthcare - Services |
|
|
|
|
| 528,099 |
|
|
|
|
|
|
|
Household Products / Wares – 1.3% |
|
|
| |||
Prestige Brands, Inc., 4.09%, (1-Month USD LIBOR + 2.00%), 01/26/24@ |
|
| 375,241 |
|
| 374,695 |
|
|
|
|
|
|
|
Insurance – 3.0% |
|
|
|
|
|
|
HUB International, Ltd., 04/25/25(a) |
|
| 250,000 |
|
| 248,777 |
USI, Inc., 5.33%, (3-Month USD LIBOR + 3.00%), 05/16/24@ |
|
| 397,000 |
|
| 395,164 |
VF Holdings Corp., 5.34%, (1-Month USD LIBOR + 3.25%), 06/30/23@ |
|
| 247,481 |
|
| 246,244 |
Total Insurance |
|
|
|
|
| 890,185 |
|
|
|
|
|
|
|
Internet – 1.7% |
|
|
|
|
|
|
Uber Technologies, Inc., 5.55%, (1-Month USD LIBOR + 3.50%), 07/13/23@ |
|
| 491,250 |
|
| 492,685 |
Investments |
| Principal |
| Value | ||
TERM LOANS (continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Leisure Time – 2.5% |
|
|
|
|
|
|
BRP US, Inc., 4.09%, (1-Month USD LIBOR + 2.00%), 05/23/25 (Canada)@ |
| $ | 246,252 |
| $ | 244,620 |
ClubCorp Holdings, Inc., 5.08%, (3-Month USD LIBOR + 2.75%), 09/18/24@ |
|
| 489,634 |
|
| 484,738 |
Total Leisure Time |
|
|
|
|
| 729,358 |
|
|
|
|
|
|
|
Lodging – 3.1% |
|
|
|
|
|
|
Caesars Resort Collection LLC, 4.84%, (1-Month USD LIBOR + 2.75%), 12/23/24@ |
|
| 497,500 |
|
| 496,722 |
Hilton Worldwide Finance LLC, 3.84%, (1-Month USD LIBOR + 1.75%), 10/25/23@ |
|
| 177,571 |
|
| 177,755 |
Playa Resorts Holding BV, 4.84%, (1-Month USD LIBOR + 2.75%), 04/29/24@ |
|
| 247,502 |
|
| 245,181 |
Total Lodging |
|
|
|
|
| 919,658 |
|
|
|
|
|
|
|
Machinery – Diversified – 0.7% |
|
|
|
|
|
|
RBS Global, Inc., 4.34%, (1-Month USD LIBOR + 2.25%), 08/21/24@ |
|
| 207,725 |
|
| 207,842 |
|
|
|
|
|
|
|
Media – 0.8% |
|
|
|
|
|
|
Altice US Finance I Corp., 4.34%, (1-Month USD LIBOR + 2.25%), 07/28/25@ |
|
| 243,736 |
|
| 242,366 |
|
|
|
|
|
|
|
Metal Fabricate / Hardware – 0.8% |
|
|
| |||
Crosby U.S. Acquisition Corp., 5.08%, (1-Month USD LIBOR + 3.00%), 11/23/20@ |
|
| 247,409 |
|
| 243,698 |
|
|
|
|
|
|
|
Miscellaneous Manufacturing – 1.0% |
|
|
| |||
Gates Global LLC, 5.08%, (3-Month USD LIBOR + 2.75%), 04/01/24@ |
|
| 296,947 |
|
| 297,173 |
|
|
|
|
|
|
|
Oil & Gas – 1.8% |
|
|
|
|
|
|
Chesapeake Energy Corp., 9.59%, (1-Month USD LIBOR + 7.50%), 08/23/21@ |
|
| 500,000 |
|
| 524,273 |
|
|
|
|
|
|
|
Packaging & Containers – 6.4% |
|
|
|
|
|
|
Kloeckner Pentaplast of America, Inc., 6.34%, (1-Month USD LIBOR + 4.25%), 06/30/22 (Luxembourg)@ |
|
| 248,747 |
|
| 238,835 |
Plastipak Holdings, Inc., 4.60%, (1-Month USD LIBOR + 2.50%), 10/14/24@ |
|
| 248,128 |
|
| 247,198 |
Proampac PG Borrower LLC, 5.50%, (1-Month USD LIBOR + 3.50%), 11/20/23@ |
|
| 88,726 |
|
| 88,449 |
See accompanying Notes to Financial Statements.
79
ADVISORSHARES PACIFIC ASSET ENHANCED FLOATING RATE ETF
Schedule of Investments (continued)
June 30, 2018
Investments |
| Principal |
| Value | ||
TERM LOANS (continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Packaging & Containers (continued) |
|
|
| |||
Proampac PG Borrower LLC, 5.53%, (1-Month USD LIBOR + 3.50%), 11/20/23@ |
| $ | 33,766 |
| $ | 33,661 |
Proampac PG Borrower LLC, 5.58%, (1-Month USD LIBOR + 3.50%), 11/20/23@ |
|
| 289,833 |
|
| 288,927 |
Proampac PG Borrower LLC, 5.86%, (3-Month USD LIBOR + 3.50%), 11/20/23@ |
|
| 80,174 |
|
| 79,924 |
Reynolds Group Holdings, Inc., 4.84%, (1-Month USD LIBOR + 2.75%), 02/06/23@ |
|
| 442,485 |
|
| 442,115 |
SIG Combibloc, 4.84%, (1-Month USD LIBOR + 2.75%), 03/11/22 (Luxembourg)@ |
|
| 447,015 |
|
| 447,762 |
Total Packaging & Containers |
|
|
|
|
| 1,866,871 |
|
|
|
|
|
|
|
Pharmaceuticals – 0.8% |
|
|
|
|
|
|
Valeant Pharmaceuticals International, Inc., 5.09%, (1-Month USD LIBOR + 3.00%), 05/30/25@ |
|
| 229,990 |
|
| 229,512 |
|
|
|
|
|
|
|
Real Estate – 1.7% |
|
|
|
|
|
|
DTZ US Borrower LLC, 5.34%, (1-Month USD LIBOR + 3.25%), 11/04/21@ |
|
| 17,255 |
|
| 17,257 |
DTZ US Borrower LLC, 5.56%, (3-Month USD LIBOR + 3.25%), 11/04/21@ |
|
| 326,585 |
|
| 326,621 |
DTZ US Borrower LLC, 5.61%, (3-Month USD LIBOR + 3.25%), 11/04/21@ |
|
| 146,059 |
|
| 146,075 |
Total Real Estate |
|
|
|
|
| 489,953 |
|
|
|
|
|
|
|
Retail – 13.4% |
|
|
|
|
|
|
1011778 BC ULC, 4.34%, (1-Month USD LIBOR + 2.25%), 02/16/24 (Canada)@ |
|
| 368,307 |
|
| 367,213 |
Bass Pro Group LLC, 09/25/24(a) |
|
| 250,000 |
|
| 250,704 |
BJ’s Wholesale Club, Inc., 9.53%, (1-Month USD LIBOR + 7.50%), 02/03/25@ |
|
| 248,938 |
|
| 251,998 |
CEC Entertainment, Inc., 5.34%, (1-Month USD LIBOR + 3.25%), 02/15/21@ |
|
| 482,368 |
|
| 450,512 |
GYP Holdings III Corp., 4.84%, (1-Month USD LIBOR + 2.75%), 06/02/25@ |
|
| 350,378 |
|
| 348,626 |
GYP Holdings III Corp., 4.85%, (2-Month USD LIBOR + 2.75%), 06/02/25@ |
|
| 133,484 |
|
| 132,817 |
Michaels Stores, Inc., 4.56%, (1-Month USD LIBOR + 2.50%), 01/30/23@ |
|
| 116,545 |
|
| 115,817 |
Investments |
| Principal |
| Value | ||
TERM LOANS (continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail (continued) |
|
|
| |||
Michaels Stores, Inc., 4.59%, (1-Month USD LIBOR + 2.50%), 01/30/23@ |
| $ | 330,773 |
| $ | 328,706 |
Neiman Marcus Group Ltd. LLC, 5.26%, (1-Month USD LIBOR + 3.25%), 10/25/20@ |
|
| 483,586 |
|
| 429,787 |
Petco Animal Supplies, Inc., 5.61%, (3-Month USD LIBOR + 3.25%), 01/26/23@ |
|
| 491,206 |
|
| 355,920 |
PetSmart, Inc., 5.01%, (1-Month USD LIBOR + 3.00%), 03/11/22@ |
|
| 485,000 |
|
| 402,179 |
Smart & Final Stores LLC, 5.59%, (1-Month USD LIBOR + 3.50%), 11/15/22@ |
|
| 250,000 |
|
| 244,584 |
SRS Distribution, Inc., |
|
| 250,000 |
|
| 246,667 |
Total Retail |
|
|
|
|
| 3,925,530 |
|
|
|
|
|
|
|
Semiconductors – 0.6% |
|
|
|
|
|
|
ON Semiconductor Corp., 3.84%, (1-Month USD LIBOR + 1.75%), 03/31/23@ |
|
| 181,494 |
|
| 181,645 |
|
|
|
|
|
|
|
Software – 2.3% |
|
|
|
|
|
|
CCC Information Services, Inc., 5.10%, (1-Month USD LIBOR + 3.00%), 04/29/24@ |
|
| 248,120 |
|
| 248,054 |
Infor US, Inc., 4.84%, (1-Month USD LIBOR + 2.75%), 02/01/22@ |
|
| 428,484 |
|
| 427,092 |
Total Software |
|
|
|
|
| 675,146 |
|
|
|
|
|
|
|
Telecommunications – 3.0% |
|
|
|
|
|
|
Avaya, Inc., 6.32%, (1-Month USD LIBOR + 4.25%), 12/15/24@ |
|
| 373,125 |
|
| 374,146 |
Frontier Communications Corp., 5.85%, (1-Month USD LIBOR + 3.75%), 06/17/24@ |
|
| 247,500 |
|
| 245,103 |
Intelsat Jackson Holdings SA, 5.85%, (1-Month USD LIBOR + 3.75%), 11/30/23@ |
|
| 250,000 |
|
| 249,785 |
Total Telecommunications |
|
|
|
|
| 869,034 |
Total Term Loans |
|
|
|
|
|
|
(Cost $23,144,296) |
|
|
|
|
| 22,685,103 |
|
|
|
|
|
|
|
CORPORATE BONDS – 8.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Auto Manufacturers – 0.4% |
|
|
|
|
|
|
Tesla, Inc., 5.30%, 08/15/25‡(b) |
|
| 125,000 |
|
| 111,719 |
|
|
|
|
|
|
|
Commercial Services – 1.6% |
|
|
|
|
|
|
Ahern Rentals, Inc., 7.38%, 05/15/23‡ |
|
| 250,000 |
|
| 245,000 |
See accompanying Notes to Financial Statements.
80
ADVISORSHARES PACIFIC ASSET ENHANCED FLOATING RATE ETF
Schedule of Investments (continued)
June 30, 2018
Investments |
| Principal |
| Value | ||
CORPORATE BONDS (continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Services (continued) |
|
|
| |||
Prime Security Services Borrower LLC / Prime Finance, Inc., 9.25%, 05/15/23‡ |
| $ | 202,000 |
| $ | 215,574 |
Total Commercial Services |
|
|
|
|
| 460,574 |
|
|
|
| |||
Diversified Financial Services – 0.9% |
|
|
| |||
Jefferies Finance LLC / JFIN Co-Issuer Corp., 7.38%, 04/01/20‡ |
|
| 250,000 |
|
| 252,432 |
|
|
|
|
|
|
|
Home Builders – 0.8% |
|
|
|
|
|
|
Lennar Corp., 4.50%, 06/15/19 |
|
| 250,000 |
|
| 251,562 |
|
|
|
|
|
|
|
Lodging – 0.9% |
|
|
|
|
|
|
MGM Resorts International, 6.75%, 10/01/20 |
|
| 250,000 |
|
| 262,500 |
|
|
|
|
|
|
|
Media – 0.9% |
|
|
|
|
|
|
CSC Holdings LLC, 6.63%, 10/15/25‡ |
|
| 250,000 |
|
| 256,563 |
|
|
|
|
|
|
|
Retail – 0.8% |
|
|
|
|
|
|
Golden Nugget, Inc., 6.75%, 10/15/24‡ |
|
| 250,000 |
|
| 250,670 |
|
|
|
|
|
|
|
Telecommunications – 1.7% |
|
|
|
|
|
|
Sprint Communications, Inc., 6.00%, 11/15/22 |
|
| 250,000 |
|
| 248,438 |
T-Mobile USA, Inc., 6.38%, 03/01/25 |
|
| 250,000 |
|
| 259,425 |
Total Telecommunications |
|
|
|
|
| 507,863 |
|
|
|
|
|
|
|
Toys / Games / Hobbies – 0.4% |
|
|
|
|
|
|
Mattel, Inc., 2.35%, 08/15/21 |
|
| 125,000 |
|
| 114,063 |
Total Corporate Bonds |
|
|
|
|
|
|
(Cost $2,470,975) |
|
|
|
|
| 2,467,946 |
|
|
|
|
|
|
|
FOREIGN BONDS – 2.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Food – 0.4% |
|
|
|
|
|
|
JBS USA LUX SA / JBS USA Finance, Inc., 7.25%, 06/01/21 (Brazil)‡ |
|
| 125,000 |
|
| 126,875 |
|
|
|
|
|
|
|
Mining – 0.4% |
|
|
|
|
|
|
Constellium NV, 5.75%, 05/15/24 (Netherlands)‡ |
|
| 125,000 |
|
| 121,562 |
|
|
|
|
|
|
|
Pharmaceuticals – 0.8% |
|
|
|
|
|
|
Teva Pharmaceutical Finance Netherlands III BV, 2.20%, 07/21/21 (Israel) |
|
| 250,000 |
|
| 232,052 |
Investments |
| Principal |
| Value | ||
FOREIGN BONDS (continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Trucking & Leasing – 0.9% |
|
|
|
|
|
|
Park Aerospace Holdings Ltd., 5.25%, 08/15/22 (Ireland)‡ |
| $ | 250,000 |
| $ | 248,440 |
Total Foreign Bonds |
|
|
|
|
|
|
(Cost $731,717) |
|
|
|
|
| 728,929 |
|
|
|
|
|
|
|
EXCHANGE TRADED FUND – 0.1% |
|
|
| |||
|
|
|
|
|
|
|
Closed-End Funds – 0.1% |
|
|
|
|
|
|
Eagle Point Credit Co., Inc. |
|
|
|
|
|
|
(Cost $35,053) |
|
| 1,905 |
|
| 34,614 |
|
|
|
|
|
|
|
MONEY MARKET FUND – 13.9% |
|
|
|
|
|
|
JPMorgan U.S. Government Money Market Fund – Institutional Class, 1.76%(c) (Cost $4,067,546) |
|
| 4,067,546 |
|
| 4,067,546 |
|
|
|
|
|
|
|
REPURCHASE AGREEMENT – 0.4%(d) |
|
|
| |||
Nomura Securities International, Inc., dated 06/29/18, due 07/02/18, 2.12%, total to be received $116,444, (collateralized by various U.S. Government Agency Obligations, 0.00% – 9.00%, 07/15/18 – 05/20/68, totaling $118,308) |
|
|
|
|
|
|
(Cost $116,424) |
| $ | 116,424 |
| $ | 116,424 |
|
|
|
|
|
|
|
Total Investments – 102.7% |
|
|
|
|
|
|
(Cost $30,566,011) |
|
|
|
|
| 30,100,562 |
|
|
|
|
|
|
|
Liabilities in Excess of Other |
|
|
|
|
| (778,004) |
Net Assets – 100.0% |
|
|
|
| $ | 29,322,558 |
____________
LP – Limited Partnership
@ Variable rate instrument. The interest rate shown reflects the rate in effect at June 30, 2018.
‡ 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) The loan will settle after June 30, 2018 at which time the interest rate will be determined.
(b) All or a portion of security is on loan. The aggregate market value of the securities on loan is $113,872; the aggregate market value of the collateral held by the fund is $116,424.
(c) Rate shown reflects the 7-day yield as of June 30, 2018.
(d) Collateral received from brokers for securities lending was invested in these short-term investments.
See accompanying Notes to Financial Statements.
81
ADVISORSHARES PACIFIC ASSET ENHANCED FLOATING RATE ETF
Schedule of Investments (continued)
June 30, 2018
SUMMARY OF SCHEDULE OF INVESTMENTS
|
| % of |
Advertising |
| 1.2% |
Aerospace/Defense |
| 2.3 |
Auto Manufacturers |
| 1.3 |
Auto Parts & Equipment |
| 2.1 |
Building Materials |
| 1.7 |
Chemicals |
| 1.5 |
Closed-End Funds |
| 0.1 |
Coal |
| 0.8 |
Commercial Services |
| 5.3 |
Computers |
| 2.0 |
Distribution/Wholesale |
| 4.6 |
Diversified Financial Services |
| 0.9 |
Electric |
| 2.5 |
Entertainment |
| 1.3 |
Environmental Control |
| 0.8 |
Food |
| 3.2 |
Hand/Machine Tools |
| 1.6 |
Healthcare – Products |
| 0.9 |
Healthcare – Services |
| 1.8 |
Home Builders |
| 0.8 |
Household Products/Wares |
| 1.3 |
Insurance |
| 3.0 |
Internet |
| 1.7 |
|
| % of |
Leisure Time |
| 2.5% |
Lodging |
| 4.0 |
Machinery – Diversified |
| 0.7 |
Media |
| 1.7 |
Metal Fabricate/Hardware |
| 0.8 |
Mining |
| 0.4 |
Miscellaneous Manufacturing |
| 1.0 |
Oil & Gas |
| 1.8 |
Packaging & Containers |
| 6.4 |
Pharmaceuticals |
| 1.6 |
Real Estate |
| 1.7 |
Retail |
| 14.2 |
Semiconductors |
| 0.6 |
Software |
| 2.3 |
Telecommunications |
| 4.7 |
Toys/Games/Hobbies |
| 0.4 |
Trucking & Leasing |
| 0.9 |
Money Market Fund |
| 13.9 |
Repurchase Agreement |
| 0.4 |
Total Investments |
| 102.7 |
Liabilities in Excess of Other Assets |
| (2.7) |
Net Assets |
| 100.0% |
Total Return Swaps contracts outstanding as of June 30, 2018:
Reference Entity |
| Number of Contracts |
| Annual Financing Rate Received (Paid) |
| Payment Frequency |
| Termination Date |
| Notional Amounts |
| Fair Value |
| Unrealized Appreciation/ (Depreciation) | |
iBoxx USD Liquid Leveraged Loans Index |
| 4,000,000 |
| (1.61 | )% |
| Quarterly |
| 9/20/2018 |
| $4,000,000 |
| $4,048,964 |
| $48,964 |
Morgan Stanley 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.
82
ADVISORSHARES RANGER EQUITY BEAR ETF
Schedule of Investments
June 30, 2018
Investments |
| Shares |
| Value | |
EXCHANGE TRADED FUND – 33.4% |
|
| |||
|
|
| |||
Debt Fund – 33.4% |
|
|
|
|
|
AdvisorShares Sage Core Reserves ETF† |
|
|
|
|
|
(Cost $44,743,500) |
| 450,000 |
|
| $44,635,500 |
|
|
|
|
|
|
MONEY MARKET FUNDS – 18.4% |
|
| |||
Fidelity Institutional Money Market Government Portfolio – Class III, 1.52%(a) |
| 24,098,179 |
|
| 24,098,179 |
Morgan Stanley Institutional Liquidity Funds – Government Portfolio, 1.78%(a) |
| 500,000 |
|
| 500,000 |
Total Money Market Funds |
|
|
|
|
|
(Cost $24,598,179) |
|
|
|
| 24,598,179 |
Total Investments Before Securities Sold, Not Yet Purchased |
|
|
|
|
|
(Cost $69,341,679) |
|
|
|
| 69,233,679 |
|
|
|
|
|
|
Securities Sold, Not Yet Purchased – (94.5)% | |||||
| |||||
COMMON STOCKS – (94.5)% |
|
| |||
|
|
| |||
Aerospace/Defense – (6.1)% |
|
|
|
|
|
Aerojet Rocketdyne Holdings, Inc.* |
| (165,000 | ) |
| (4,865,850) |
Triumph Group, Inc. |
| (165,000 | ) |
| (3,234,000) |
Total Aerospace/Defense |
|
|
|
| (8,099,850) |
|
|
|
|
|
|
Apparel – (3.6)% |
|
|
|
|
|
Michael Kors Holdings Ltd.* |
| (50,000 | ) |
| (3,330,000) |
Skechers U.S.A., Inc., Class A* |
| (50,000 | ) |
| (1,500,500) |
Total Apparel |
|
|
|
| (4,830,500) |
|
|
|
|
|
|
Banks – (2.0)% |
|
|
|
|
|
Citigroup, Inc. |
| (40,000 | ) |
| (2,676,800) |
|
|
|
|
|
|
Chemicals – (6.5)% |
|
|
|
|
|
GCP Applied Technologies, Inc.* |
| (150,000 | ) |
| (4,342,500) |
Sensient Technologies Corp. |
| (60,000 | ) |
| (4,293,000) |
Total Chemicals |
|
|
|
| (8,635,500) |
|
|
|
|
|
|
Computers – (5.2)% |
|
|
|
|
|
Electronics For Imaging, Inc.* |
| (75,000 | ) |
| (2,442,000) |
NetScout Systems, Inc.* |
| (151,739 | ) |
| (4,506,648) |
Total Computers |
|
|
|
| (6,948,648) |
|
|
|
|
|
|
Cosmetics/Personal Care – (2.6)% | |||||
Edgewell Personal Care Co.* |
| (70,000 | ) |
| (3,532,200) |
|
|
|
|
|
|
Investments |
| Shares |
| Value | ||
COMMON STOCKS (continued) |
|
|
| |||
|
|
|
|
|
|
|
Diversified Financial Services – (4.0)% | ||||||
Credit Acceptance Corp.* |
| (8,000 | ) |
| $ | (2,827,200) |
Ellie Mae, Inc.* |
| (23,783 | ) |
|
| (2,469,627) |
Total Diversified Financial Services |
|
|
|
|
| (5,296,827) |
| ||||||
Electrical Components & Equipment – (2.5)% | ||||||
Belden, Inc. |
| (55,000 | ) |
|
| (3,361,600) |
|
|
|
|
|
|
|
Electronics – (6.3)% |
|
|
|
|
|
|
Knowles Corp.* |
| (280,000 | ) |
|
| (4,284,000) |
OSI Systems, Inc.* |
| (52,500 | ) |
|
| (4,059,825) |
Total Electronics |
|
|
|
|
| (8,343,825) |
| ||||||
Engineering & Construction – (1.4)% | ||||||
Dycom Industries, Inc.* |
| (20,000 | ) |
|
| (1,890,200) |
|
|
|
|
|
|
|
Food – (5.8)% |
|
|
|
|
|
|
B&G Foods, Inc. |
| (95,000 | ) |
| $ | (2,840,500) |
Kellogg Co. |
| (70,000 | ) |
|
| (4,890,900) |
Total Food |
|
|
|
|
| (7,731,400) |
| ||||||
Hand/Machine Tools – (2.9)% | ||||||
Snap-on, Inc. |
| (24,000 | ) |
|
| (3,857,280) |
|
|
|
|
|
|
|
Healthcare – Products – (7.6)% | ||||||
Align Technology, Inc.* |
| (6,500 | ) |
|
| (2,223,910) |
DENTSPLY SIRONA, Inc. |
| (96,000 | ) |
|
| (4,201,920) |
West Pharmaceutical Services, Inc. |
| (37,500 | ) |
|
| (3,723,375) |
Total Healthcare - Products |
|
|
|
|
| (10,149,205) |
|
|
|
|
|
|
|
Home Furnishings – (3.1)% |
|
|
|
|
|
|
Tempur Sealy International, Inc.* |
| (86,000 | ) |
|
| (4,132,300) |
|
|
|
|
|
|
|
Leisure Time – (3.3)% |
|
|
|
|
|
|
Harley-Davidson, Inc. |
| (105,000 | ) |
|
| (4,418,400) |
|
|
|
|
|
|
|
Machinery – Construction & Mining – (3.4)% | ||||||
Oshkosh Corp. |
| (65,000 | ) |
|
| (4,570,800) |
|
|
|
|
|
|
|
Miscellaneous Manufacturing – (3.3)% | ||||||
Actuant Corp., Class A |
| (70,000 | ) |
|
| (2,054,500) |
Textron, Inc. |
| (35,000 | ) |
|
| (2,306,850) |
Total Miscellaneous Manufacturing |
|
|
|
|
| (4,361,350) |
| ||||||
Packaging & Containers – (2.1)% | ||||||
Owens-Illinois, Inc.* |
| (170,000 | ) |
|
| (2,857,700) |
|
|
|
|
|
|
|
Pharmaceuticals – (2.2)% |
|
|
|
|
|
|
Prestige Brands Holdings, Inc.* |
| (75,000 | ) |
|
| (2,878,500) |
|
|
|
|
|
|
|
See accompanying Notes to Financial Statements.
83
ADVISORSHARES RANGER EQUITY BEAR ETF
Schedule of Investments (continued)
June 30, 2018
Investments |
| Shares |
| Value | ||
COMMON STOCKS (continued) |
|
|
| |||
|
|
|
|
|
|
|
Real Estate – (1.1)% |
|
|
|
|
|
|
Realogy Holdings Corp. |
| (65,000 | ) |
| $ | (1,482,000) |
|
|
|
|
|
|
|
REITS – (8.4)% |
|
|
|
|
|
|
Equity Residential |
| (30,000 | ) |
|
| (1,910,700) |
Simon Property Group, Inc. |
| (14,000 | ) |
|
| (2,382,660) |
Tanger Factory Outlet Centers, Inc. |
| (200,000 | ) |
|
| (4,698,000) |
Urban Edge Properties |
| (100,000 | ) |
|
| (2,287,000) |
Total REITS |
|
|
|
|
| (11,278,360) |
|
|
|
|
|
|
|
Retail – (1.2)% |
|
|
|
|
|
|
Sally Beauty Holdings, Inc.* |
| (100,000 | ) |
|
| (1,603,000) |
|
|
|
|
|
|
|
Software – (4.2)% |
|
|
|
|
|
|
Bottomline Technologies (DE), Inc.* |
| (40,000 | ) |
|
| (1,993,200) |
Omnicell, Inc.* |
| (70,000 | ) |
|
| (3,671,500) |
Total Software |
|
|
|
|
| (5,664,700) |
|
|
|
|
|
|
|
Telecommunications – (5.7)% |
|
|
|
|
|
|
LogMeIn, Inc. |
| (25,000 | ) |
|
| (2,581,250) |
NETGEAR, Inc.* |
| (40,000 | ) |
|
| (2,500,000) |
Ubiquiti Networks, Inc.* |
| (30,000 | ) |
|
| (2,541,600) |
Total Telecommunications |
|
|
|
|
| (7,622,850) |
|
|
|
|
|
|
|
Total Securities Sold, Not Yet Purchased [Proceeds Received $(123,457,892)] |
|
|
|
|
| (126,223,795) |
|
|
|
|
|
|
|
Total Investments – (42.7)% |
|
|
|
|
|
|
(Cost $(54,116,213)) |
|
|
|
|
| (56,990,116) |
Other Assets in Excess of Liabilities – 142.7% |
|
|
|
|
| 190,577,167 |
Net Assets – 100.0% |
|
|
|
| $ | 133,587,051 |
____________
ETF – Exchange Traded Fund
REITS – Real Estate Investment Trusts
† Affiliated Company.
* Non-income producing security.
(a) Rate shown reflects the 7-day yield as of June 30, 2018.
Cash of $117,949,870 has been segregated to cover margin requirement for open short sales as of June 30, 2018.
SUMMARY OF SCHEDULE OF INVESTMENTS
|
| % of | |
Aerospace/Defense |
| (6.1 | )% |
Apparel |
| (3.6 | ) |
Banks |
| (2.0 | ) |
Chemicals |
| (6.5 | ) |
Computers |
| (5.2 | ) |
Cosmetics/Personal Care |
| (2.6 | ) |
Debt Fund |
| 33.4 |
|
Diversified Financial Services |
| (4.0 | ) |
Electrical Components & Equipment |
| (2.5 | ) |
Electronics |
| (6.3 | ) |
Engineering & Construction |
| (1.4 | ) |
Food |
| (5.8 | ) |
Hand/Machine Tools |
| (2.9 | ) |
Healthcare – Products |
| (7.6 | ) |
Home Furnishings |
| (3.1 | ) |
Leisure Time |
| (3.3 | ) |
Machinery – Construction & Mining |
| (3.4 | ) |
Miscellaneous Manufacturing |
| (3.3 | ) |
Packaging & Containers |
| (2.1 | ) |
Pharmaceuticals |
| (2.2 | ) |
Real Estate |
| (1.1 | ) |
REITS |
| (8.4 | ) |
Retail |
| (1.2 | ) |
Software |
| (4.2 | ) |
Telecommunications |
| (5.7 | ) |
Money Market Funds |
| 18.4 |
|
Total Investments |
| (42.7 | ) |
Other Assets in Excess of Liabilities |
| 142.7 |
|
Net Assets |
| 100.0 | % |
Affiliated holdings are funds which are managed by the Trust or an affiliate of the Trust. Transactions with affiliated companies during the year ended June 30, 2018 were as follows:
Affiliated Fund Name |
| Value at 6/30/2017 |
| Purchases/ Additions |
| Sales/ Reductions |
| Realized Gain (Loss) |
| Change in |
| Value at 6/30/2018 |
| Dividend Income | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sage Core Reserves ETF |
| $ | 67,182,750 |
| $ | – |
| $ | (22,339,734 | ) |
| $ | (32,016 | ) |
| $ | (175,500 | ) |
| $ | 44,635,500 |
| $ | 878,697 |
See accompanying Notes to Financial Statements.
84
ADVISORSHARES SAGE CORE RESERVES ETF
Schedule of Investments
June 30, 2018
Investments |
| Principal |
| Value | ||
CORPORATE BONDS – 51.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerospace/Defense – 1.0% |
|
|
|
|
|
|
Spirit AeroSystems, Inc., 3.12%, (3-Month USD LIBOR + 0.80%), 06/15/21@ |
| $ | 530,000 |
| $ | 531,030 |
|
|
|
|
|
|
|
Auto Manufacturers – 3.0% |
|
|
|
|
|
|
General Motors Co., 3.50%, 10/02/18 |
|
| 525,000 |
|
| 526,027 |
General Motors Co., 3.16%, (3-Month USD LIBOR + 0.80%), 08/07/20@ |
|
| 517,000 |
|
| 518,881 |
Hyundai Capital America, 2.88%, 08/09/18‡ |
|
| 516,000 |
|
| 515,938 |
Total Auto Manufacturers |
|
|
|
|
| 1,560,846 |
|
|
|
|
|
|
|
Banks – 14.0% |
|
|
|
|
|
|
Bank of America Corp., Series L, 2.60%, 01/15/19 |
|
| 415,000 |
|
| 414,770 |
Bank of America Corp., Series L, 2.65%, 04/01/19 |
|
| 103,000 |
|
| 102,902 |
BB&T Corp., Series MTN, 2.25%, 02/01/19 |
|
| 630,000 |
|
| 628,462 |
Branch Banking & Trust Co., 2.80%, (3-Month USD LIBOR + 0.45%), 01/15/20@ |
|
| 475,000 |
|
| 476,965 |
Branch Banking & Trust Co., Series BKNT, 2.52%, (3-Month USD LIBOR + 0.22%), 06/01/20@ |
|
| 400,000 |
|
| 399,738 |
Capital One Financial Corp., 2.45%, 04/24/19 |
|
| 276,000 |
|
| 275,164 |
Citigroup, Inc., 2.05%, 06/07/19 |
|
| 260,000 |
|
| 257,976 |
Citigroup, Inc., 3.39%, (3-Month USD LIBOR + 1.07%), 12/08/21@ |
|
| 770,000 |
|
| 781,841 |
Goldman Sachs Group, Inc. (The), Series FRN, 4.10%, (3-Month USD LIBOR + 1.77%), 02/25/21@ |
|
| 1,065,000 |
|
| 1,100,175 |
JPMorgan Chase & Co., 2.35%, 01/28/19 |
|
| 590,000 |
|
| 589,115 |
JPMorgan Chase & Co., 3.78%, (3-Month USD LIBOR + 1.48%), 03/01/21@ |
|
| 630,000 |
|
| 647,728 |
Manufacturers & Traders Trust Co., Series BKNT, 2.63%, (3-Month USD LIBOR + 0.27%), 01/25/21@ |
|
| 520,000 |
|
| 519,909 |
Wells Fargo & Co., 2.13%, 04/22/19 |
|
| 1,100,000 |
|
| 1,093,927 |
Total Banks |
|
|
|
|
| 7,288,672 |
|
|
|
|
|
|
|
Biotechnology – 1.4% |
|
|
|
|
|
|
Amgen, Inc., 2.67%, (3-Month USD LIBOR + 0.32%), 05/10/19@ |
|
| 705,000 |
|
| 706,593 |
Investments |
| Principal |
| Value | ||
CORPORATE BONDS (continued) |
|
|
| |||
|
|
|
|
|
|
|
Building Materials – 1.3% |
|
|
|
|
|
|
Vulcan Materials Co., 2.94%, (3-Month USD LIBOR + 0.60%), 06/15/20@ |
| $ | 430,000 |
| $ | 429,549 |
Vulcan Materials Co., 2.95%, (3-Month USD LIBOR + 0.65%), 03/01/21@ |
|
| 245,000 |
|
| 245,495 |
Total Building Materials |
|
|
|
|
| 675,044 |
|
|
|
|
|
|
|
Chemicals – 1.4% |
|
|
|
|
|
|
Dow Chemical Co. (The), 8.55%, 05/15/19 |
|
| 680,000 |
|
| 712,845 |
|
|
|
|
|
|
|
Commercial Services – 1.1% |
|
|
|
|
|
|
Equifax, Inc., 3.20%, (3-Month USD LIBOR + 0.87%), 08/15/21@ |
|
| 570,000 |
|
| 571,957 |
|
|
|
|
|
|
|
Diversified Financial Services – 3.5% |
|
|
| |||
American Express Credit Corp., Series GMTN, 2.25%, 08/15/19 |
|
| 420,000 |
|
| 417,493 |
American Express Credit Corp., Series F, 3.39%, (3-Month USD LIBOR + 1.05%), 09/14/20@ |
|
| 540,000 |
|
| 549,176 |
Charles Schwab Corp. (The), 2.65%, (3-Month USD LIBOR + 0.32%), 05/21/21@ |
|
| 300,000 |
|
| 301,343 |
International Lease Finance Corp., 5.88%, 04/01/19 |
|
| 300,000 |
|
| 306,195 |
International Lease Finance Corp., 6.25%, 05/15/19 |
|
| 225,000 |
|
| 230,735 |
Total Diversified Financial Services |
|
|
|
|
| 1,804,942 |
|
|
|
|
|
|
|
Electric – 1.9% |
|
|
|
|
|
|
Dominion Energy, Inc., Series A, 1.88%, 01/15/19 |
|
| 180,000 |
|
| 178,950 |
Southern Co. (The), 2.45%, 09/01/18 |
|
| 805,000 |
|
| 804,501 |
Total Electric |
|
|
|
|
| 983,451 |
|
|
|
|
|
|
|
Food – 2.1% |
|
|
|
|
|
|
Kraft Heinz Foods Co., 2.79%, (3-Month USD LIBOR + 0.42%), 08/09/19@ |
|
| 525,000 |
|
| 525,339 |
Tyson Foods, Inc., 2.87%, (3-Month USD LIBOR + 0.55%), 06/02/20@ |
|
| 590,000 |
|
| 591,078 |
Total Food |
|
|
|
|
| 1,116,417 |
|
|
|
|
|
|
|
Healthcare – Products – 1.8% |
|
|
|
|
|
|
Abbott Laboratories, 2.35%, 11/22/19 |
|
| 146,000 |
|
| 145,194 |
Becton Dickinson and Co., 3.21%, (3-Month USD LIBOR + 0.88%), 12/29/20@ |
|
| 390,000 |
|
| 390,676 |
See accompanying Notes to Financial Statements.
85
ADVISORSHARES SAGE CORE RESERVES ETF
Schedule of Investments (continued)
June 30, 2018
Investments |
| Principal |
| Value | ||
CORPORATE BONDS (continued) |
|
|
| |||
|
|
|
|
|
|
|
Healthcare – Products (continued) |
|
|
| |||
Zimmer Biomet Holdings, Inc., 3.08%, (3-Month USD LIBOR + 0.75%), 03/19/21@(a) |
| $ | 390,000 |
| $ | 390,699 |
Total Healthcare – Products |
|
|
|
|
| 926,569 |
Healthcare – Services – 0.6% |
|
|
|
|
|
|
Catholic Health Initiatives, 2.60%, 08/01/18 |
|
| 340,000 |
|
| 340,010 |
Home Furnishings – 1.0% |
|
|
|
|
|
|
Whirlpool Corp., 2.40%, 03/01/19 |
|
| 524,000 |
|
| 522,699 |
Housewares – 1.2% |
|
|
|
|
|
|
Newell Brands, Inc., 2.60%, 03/29/19 |
|
| 610,000 |
|
| 607,965 |
Internet – 1.0% |
|
|
|
|
|
|
eBay, Inc., 2.20%, 08/01/19 |
|
| 522,000 |
|
| 517,783 |
Machinery - Diversified – 1.4% |
|
|
|
|
|
|
Roper Technologies, Inc., 2.05%, 10/01/18(a) |
|
| 755,000 |
|
| 754,101 |
Media – 3.5% |
|
|
|
|
|
|
Time Warner Cable, Inc., 6.75%, 07/01/18 |
|
| 785,000 |
|
| 785,000 |
Warner Media LLC, 2.10%, 06/01/19 |
|
| 525,000 |
|
| 521,454 |
Warner Media LLC, 4.88%, 03/15/20 |
|
| 502,000 |
|
| 515,611 |
Total Media |
|
|
|
|
| 1,822,065 |
Oil & Gas – 0.4% |
|
|
|
|
|
|
Phillips 66, 2.92%, (3-Month USD LIBOR + 0.60%), 02/26/21@ |
|
| 200,000 |
|
| 200,330 |
Pharmaceuticals – 4.7% |
|
|
|
|
|
|
Allergan Funding SCS, 3.58%, (3-Month USD LIBOR + 1.26%), 03/12/20@ |
|
| 855,000 |
|
| 864,459 |
CVS Health Corp., 1.90%, 07/20/18 |
|
| 340,000 |
|
| 339,933 |
CVS Health Corp., 2.96%, (3-Month USD LIBOR + 0.63%), 03/09/20@ |
|
| 500,000 |
|
| 502,051 |
Express Scripts Holding Co., 2.25%, 06/15/19 |
|
| 745,000 |
|
| 739,771 |
Total Pharmaceuticals |
|
|
|
|
| 2,446,214 |
Pipelines – 2.1% |
|
|
|
|
|
|
Buckeye Partners LP, 2.65%, 11/15/18 |
|
| 555,000 |
|
| 554,450 |
Midcontinent Express Pipeline LLC, 6.70%, 09/15/19‡ |
|
| 537,000 |
|
| 555,526 |
Total Pipelines |
|
|
|
|
| 1,109,976 |
REITS – 1.4% |
|
|
|
|
|
|
ERP Operating LP, 2.38%, 07/01/19(a) |
|
| 740,000 |
|
| 735,754 |
Investments |
| Principal |
| Value | ||
CORPORATE BONDS (continued) |
|
|
| |||
|
|
|
|
|
|
|
Retail – 0.5% |
|
|
|
|
|
|
Dollar Tree, Inc., 3.06%, (3-Month USD LIBOR + 0.70%), 04/17/20@ |
| $ | 270,000 |
| $ | 270,584 |
|
|
|
|
|
|
|
Telecommunications – 1.0% |
|
|
|
|
|
|
AT&T, Inc., 3.26%, (3-Month USD LIBOR + 0.93%), 06/30/20@ |
|
| 350,000 |
|
| 354,013 |
AT&T, Inc., 3.30%, (3-Month USD LIBOR + 0.95%), 07/15/21@ |
|
| 165,000 |
|
| 166,642 |
Total Telecommunications |
|
|
|
|
| 520,655 |
Total Corporate Bonds |
|
|
|
|
|
|
(Cost $26,721,668) |
|
|
|
|
| 26,726,502 |
|
|
|
| |||
ASSET BACKED SECURITIES – 26.5% |
|
|
| |||
|
|
|
| |||
Diversified Financial Services – 26.5% |
|
|
| |||
Ally Master Owner Trust, Class A2, Series 2015-2, 1.83%, 01/15/21 |
|
| 225,000 |
|
| 224,065 |
American Express Credit Account Master Trust, Class A, Series 2013-2, 2.49%, (1-Month USD LIBOR + 0.42%), 05/17/21@ |
|
| 650,000 |
|
| 650,729 |
BMW Vehicle Lease Trust, Class A4, Series 2016-1, 1.51%, 06/20/19 |
|
| 255,000 |
|
| 254,779 |
Cabela’s Credit Card Master Note Trust, Class A2, Series 2015-1A, 2.61%, (1-Month USD LIBOR + 0.54%), 03/15/23@ |
|
| 285,000 |
|
| 286,611 |
Capital One Multi-Asset Execution Trust, Class A3, Series 2016-A3, 1.34%, 04/15/22 |
|
| 1,090,000 |
|
| 1,075,959 |
CarMax Auto Owner Trust, Class A3, Series 2015-4, 1.56%, 11/16/20 |
|
| 390,832 |
|
| 389,012 |
CarMax Auto Owner Trust, Class A3, Series 2016-3, 1.39%, 05/17/21 |
|
| 531,820 |
|
| 527,258 |
Chase Issuance Trust, Class A, Series 2016-A2, 1.37%, 06/15/21 |
|
| 755,000 |
|
| 745,689 |
Chase Issuance Trust, Class A7, Series 2015-A7, 1.62%, 07/15/20 |
|
| 280,000 |
|
| 279,915 |
Citibank Credit Card Issuance Trust, Class A2, Series 2017-A2, 1.74%, 01/19/21 |
|
| 640,000 |
|
| 637,343 |
Citibank Credit Card Issuance Trust, Class A6, Series 2014-A6, 2.15%, 07/15/21 |
|
| 500,000 |
|
| 497,153 |
See accompanying Notes to Financial Statements.
86
ADVISORSHARES SAGE CORE RESERVES ETF
Schedule of Investments (continued)
June 30, 2018
Investments |
| Principal |
| Value | ||
ASSET BACKED SECURITIES (continued) |
|
|
| |||
|
|
|
|
|
|
|
Diversified Financial Services (continued) |
|
|
| |||
Discover Card Execution Note Trust, Class A2, Series 2016-A2, 2.61%, (1-Month USD LIBOR + 0.54%), 09/15/21@ |
| $ | 190,000 |
| $ | 190,537 |
Discover Card Execution Note Trust, Class A6, Series 2013-A6, 2.52%, (1-Month USD LIBOR + 0.45%), 04/15/21@ |
|
| 840,000 |
|
| 841,072 |
Ford Credit Auto Owner Trust, Class A2B, Series 2017-C, 2.19%, (1-Month USD LIBOR + 0.12%), 09/15/20@ |
|
| 400,610 |
|
| 401,234 |
Ford Credit Auto Owner Trust, Class A3, Series 2016-A, 1.39%, 07/15/20 |
|
| 177,169 |
|
| 176,377 |
Ford Credit Auto Owner Trust, Class B, Series 2014-C, 1.97%, 04/15/20 |
|
| 340,000 |
|
| 338,970 |
Ford Credit Floorplan Master Owner Trust A, Class A1, Series 2015-4, 1.77%, 08/15/20 |
|
| 375,000 |
|
| 374,672 |
GE Capital Credit Card Master Note Trust, Class A, Series 2012-2, 2.22%, 01/15/22 |
|
| 155,000 |
|
| 154,767 |
GM Financial Consumer Automobile, Class A2A, Series 2017-1A, 1.51%, 03/16/20‡ |
|
| 440,716 |
|
| 439,707 |
Honda Auto Receivables Owner Trust, Class A2, Series 2017-3, 1.57%, 01/21/20 |
|
| 147,257 |
|
| 146,657 |
Honda Auto Receivables Owner Trust, Class A3, Series 2016-1, 1.22%, 12/18/19 |
|
| 137,961 |
|
| 137,355 |
Honda Auto Receivables Owner Trust, Class A3, Series 2016-4, 1.21%, 12/18/20 |
|
| 680,000 |
|
| 672,807 |
Huntington Auto Trust, Class A4, Series 2015-1, 1.64%, 06/15/21 |
|
| 100,000 |
|
| 99,840 |
Hyundai Auto Receivables Trust, Class A2A, Series 2017-B, 1.57%, 08/17/20 |
|
| 259,627 |
|
| 258,480 |
Hyundai Auto Receivables Trust, Class A3, Series 2016-A, 1.56%, 09/15/20 |
|
| 201,694 |
|
| 200,713 |
Nissan Auto Receivables Owner Trust, Class A3, Series 2015-B, 1.34%, 03/16/20 |
|
| 261,046 |
|
| 260,141 |
Nissan Auto Receivables Owner Trust, Class A3, Series 2016-A, 1.34%, 10/15/20 |
|
| 209,757 |
|
| 208,438 |
Nissan Auto Receivables Owner Trust, Class A3, Series 2016-C, 1.18%, 01/15/21 |
|
| 591,471 |
|
| 584,964 |
Investments |
| Principal |
| Value | ||
ASSET BACKED SECURITIES (continued) |
|
|
| |||
|
|
|
|
|
|
|
Diversified Financial Services (continued) |
|
|
| |||
Nissan Master Owner Trust Receivables, Class A1, Series 2016-A, 2.71%, (1-Month USD LIBOR + 0.64%), 06/15/21@ |
| $ | 520,000 |
| $ | 521,980 |
SCF Equipment Leasing LLC, Class A1, Series 2018-1A, 2.81%, 04/20/21‡ |
|
| 149,094 |
|
| 149,099 |
Tesla Auto Lease Trust, Class A, Series 2018-A, 2.32%, 12/20/19‡ |
|
| 239,508 |
|
| 238,758 |
Toyota Auto Receivables Owner Trust, Class A2B, Series 2017-C, 2.15%, (1-Month USD LIBOR + 0.08%), 07/15/20@ |
|
| 123,988 |
|
| 123,974 |
Toyota Auto Receivables Owner Trust, Class A3, Series 2016-D, 1.23%, 10/15/20 |
|
| 920,000 |
|
| 912,409 |
Verizon Owner Trust, Class A, Series 2016-1A, 1.42%, 01/20/21‡ |
|
| 515,000 |
|
| 512,435 |
World Financial Network Credit Card Master Trust, Class A, Series 2012-C, 2.23%, 08/15/22 |
|
| 285,000 |
|
| 284,776 |
Total Asset Backed Securities |
|
|
|
|
|
|
(Cost $13,840,630) |
|
|
|
|
| 13,798,675 |
|
|
|
|
|
|
|
FOREIGN BONDS – 9.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Banks – 5.6% |
|
|
|
|
|
|
Barclays Bank PLC, Series GMTN, 2.91%, (3-Month USD LIBOR + 0.55%), 08/07/19 (United Kingdom)@ |
|
| 420,000 |
|
| 421,302 |
BNP Paribas SA, Series MTN, 2.40%, 12/12/18 (France) |
|
| 295,000 |
|
| 294,854 |
HSBC Holdings PLC, 2.93%, (3-Month USD LIBOR + 0.60%), 05/18/21 (United Kingdom)@ |
|
| 260,000 |
|
| 260,450 |
Sumitomo Mitsui Financial Group, Inc., 4.01%, (3-Month USD LIBOR + 1.68%), 03/09/21 (Japan)@ |
|
| 615,000 |
|
| 634,311 |
Toronto-Dominion Bank (The), Series GMTN, 1.45%, 09/06/18 (Canada) |
|
| 260,000 |
|
| 259,526 |
Toronto-Dominion Bank (The), 2.51%, (3-Month USD LIBOR + 0.15%), 10/24/19 (Canada)@ |
|
| 510,000 |
|
| 509,660 |
Westpac Banking Corp., 2.25%, 07/30/18 (Australia) |
|
| 561,000 |
|
| 561,029 |
Total Banks |
|
|
|
|
| 2,941,132 |
See accompanying Notes to Financial Statements.
87
ADVISORSHARES SAGE CORE RESERVES ETF
Schedule of Investments (continued)
June 30, 2018
Investments |
| Principal |
| Value | ||
FOREIGN BONDS (continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diversified Financial Services – 1.1% |
|
|
| |||
Nomura Holdings, Inc., Series GMTN, 2.75%, 03/19/19 (Japan) |
| $ | 549,000 |
| $ | 548,919 |
|
|
|
|
|
|
|
Oil & Gas – 1.0% |
|
|
|
|
|
|
Ecopetrol SA, 7.63%, 07/23/19 (Colombia) |
|
| 485,000 |
|
| 507,455 |
|
|
|
|
|
|
|
Pharmaceuticals – 1.0% |
|
|
|
|
|
|
Bayer US Finance II LLC, 2.97%, (3-Month USD LIBOR + 0.63%), 06/25/21 (Germany)@‡ |
|
| 260,000 |
|
| 260,476 |
GlaxoSmithKline Capital PLC, 2.69%, (3-Month USD LIBOR + 0.35%), 05/14/21 (United Kingdom)@ |
|
| 260,000 |
|
| 260,824 |
Total Pharmaceuticals |
|
|
|
|
| 521,300 |
Retail – 0.4% |
|
|
|
|
|
|
Alimentation Couche-Tard, Inc., 2.83%, (3-Month USD LIBOR + 0.50%), 12/13/19 (Canada)@‡ |
|
| 200,000 |
|
| 200,199 |
Total Foreign Bonds |
|
|
|
|
|
|
(Cost $4,714,802) |
|
|
|
|
| 4,719,005 |
| ||||||
MORTGAGE BACKED SECURITIES – 5.9% | ||||||
| ||||||
Commercial Mortgage Backed Securities – 5.9% | ||||||
COMM Mortgage Trust, Class A2, Series 2013-CR6, 2.12%, 03/10/46 |
|
| 59,079 |
|
| 59,036 |
COMM Mortgage Trust, Class A2, Series 2013-LC13, 3.01%, 08/10/46 |
|
| 180,073 |
|
| 180,075 |
Fannie Mae Connecticut Avenue Securities, Class M1, Series 2013-C01, 4.09%, (1-Month USD LIBOR + 2.00%), 10/25/23@ |
|
| 163,147 |
|
| 163,850 |
Fannie Mae Connecticut Avenue Securities, Class 1M1, Series 2014-C02, 3.04%, (1-Month USD LIBOR + 0.95%), 05/25/24@ |
|
| 155,266 |
|
| 155,719 |
Fannie Mae Connecticut Avenue Securities, Class 1M1, Series 2016-C04, 3.54%, (1-Month USD LIBOR + 1.45%), 01/25/29@ |
|
| 390,263 |
|
| 393,324 |
Fannie Mae Connecticut Avenue Securities, Class 1M1, Series 2016-C06, 3.39%, (1-Month USD LIBOR + 1.30%), 04/25/29@ |
|
| 571,074 |
|
| 576,075 |
Fannie Mae Connecticut Avenue Securities, Class 1M1, Series 2017-C03, 3.04%, (1-Month USD LIBOR + 0.95%), 10/25/29@ |
|
| 612,802 |
|
| 616,360 |
Investments |
| Principal |
| Value | ||
MORTGAGE BACKED SECURITIES (continued) | ||||||
| ||||||
Commercial Mortgage Backed Securities (continued) | ||||||
Fannie Mae Connecticut Avenue Securities, Class 1M1, Series 2017-C05, 2.64%, (1-Month USD LIBOR + 0.55%), 01/25/30@ |
| $ | 303,075 |
| $ | 303,214 |
Freddie Mac REMICS, Class ED, Series 2010-3645, 2.50%, 12/15/20 |
|
| 152,821 |
|
| 152,473 |
Freddie Mac Structured Agency Credit Risk Debt Notes, Class M1, Series 2018-DNA1, 2.54%, (1-Month USD LIBOR + 0.45%), 07/25/30@ |
|
| 484,168 |
|
| 482,270 |
Total Mortgage Backed Securities |
|
|
|
|
|
|
(Cost $3,074,142) |
|
|
|
|
| 3,082,396 |
|
|
|
|
|
|
|
U.S. TREASURY NOTES – 5.3% |
|
|
|
|
|
|
U.S. Treasury Note, 1.00%, 08/15/18 |
|
| 2,081,000 |
|
| 2,078,812 |
U.S. Treasury Note, 1.38%, 09/30/18 |
|
| 155,000 |
|
| 154,768 |
U.S. Treasury Note, 1.25%, 11/30/18 |
|
| 525,000 |
|
| 523,216 |
Total U.S. Treasury Notes |
|
|
|
|
|
|
(Cost $2,758,093) |
|
|
|
|
| 2,756,796 |
|
|
|
|
|
|
|
U.S. TREASURY BILL – 0.2% |
|
|
|
|
|
|
U.S. Treasury Bill, 1.98%, 11/01/18(b) |
|
|
|
|
|
|
(Cost $99,338) |
|
| 100,000 |
|
| 99,334 |
|
|
|
|
|
|
|
MONEY MARKET FUND – 1.2% |
|
|
|
|
|
|
JPMorgan U.S. Government Money Market Fund – Institutional Class, 1.76%(c) (Cost $633,112) |
|
| 633,112 |
|
| 633,112 |
|
|
|
|
|
|
|
REPURCHASE AGREEMENT – 0.3%(d) |
|
|
| |||
NBC Global Finance Ltd., dated 06/29/18, due 07/02/18, 1.95%, total to be received $144,729, (collateralized by various U.S. Government Agency Obligations, 0.00% – 3.63%, 01/31/20 – 09/09/49, totaling $147,237) |
|
|
|
|
|
|
(Cost $144,705) |
|
| 144,705 |
|
| 144,705 |
Total Investments – 99.8% |
|
|
|
|
|
|
(Cost $51,986,490) |
|
|
|
|
| 51,960,525 |
Other Assets in Excess of Liabilities – 0.2% |
|
|
|
|
| 126,274 |
Net Assets – 100.0% |
|
|
|
| $ | 52,086,799 |
See accompanying Notes to Financial Statements.
88
ADVISORSHARES SAGE CORE RESERVES ETF
Schedule of Investments (continued)
June 30, 2018
____________
LP – Limited Partnership
PLC – Public Limited Company
REITS – Real Estate Investment Trusts
@ Variable rate instrument. The interest rate shown reflects the rate in effect at June 30, 2018.
‡ 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 $140,465; the aggregate market value of the collateral held by the fund is $144,705.
(b) Represents a zero coupon bond. Rate shown reflects the effective yield.
(c) Rate shown reflects the 7-day yield as of June 30, 2018.
(d) Collateral received from brokers for securities lending was invested in these short-term investments.
SUMMARY OF SCHEDULE OF INVESTMENTS
|
| % of | |
Aerospace/Defense |
| 1.0 | % |
Auto Manufacturers |
| 3.0 |
|
Banks |
| 19.6 |
|
Biotechnology |
| 1.4 |
|
Building Materials |
| 1.3 |
|
Chemicals |
| 1.4 |
|
Commercial Mortgage Backed Securities |
| 5.9 |
|
Commercial Services |
| 1.1 |
|
Diversified Financial Services |
| 31.1 |
|
Electric |
| 1.9 |
|
Food |
| 2.1 |
|
Healthcare – Products |
| 1.8 |
|
Healthcare – Services |
| 0.6 |
|
Home Furnishings |
| 1.0 |
|
Housewares |
| 1.2 |
|
Internet |
| 1.0 |
|
Machinery – Diversified |
| 1.4 |
|
Media |
| 3.5 |
|
Oil & Gas |
| 1.4 |
|
Pharmaceuticals |
| 5.7 |
|
Pipelines |
| 2.1 |
|
REITS |
| 1.4 |
|
Retail |
| 0.9 |
|
SUMMARY OF SCHEDULE OF INVESTMENTS
(continued)
|
| % of | |
Telecommunications |
| 1.0 | % |
U.S. Treasury Bill |
| 0.2 |
|
U.S. Treasury Notes |
| 5.3 |
|
Money Market Fund |
| 1.2 |
|
Repurchase Agreement |
| 0.3 |
|
Total Investments |
| 99.8 |
|
Other Assets in Excess of Liabilities |
| 0.2 |
|
Net Assets |
| 100.0 | % |
See accompanying Notes to Financial Statements.
89
ADVISORSHARES STAR GLOBAL BUY-WRITE ETF
Schedule of Investments
June 30, 2018
|
| Shares |
| Value | |
EXCHANGE TRADED FUNDS – 93.6% |
|
|
| ||
|
|
|
|
|
|
Asset Allocation Fund – 2.0% |
|
|
|
|
|
SPDR Bloomberg Barclays Convertible Securities ETF(a) |
| 6,453 |
| $ | 342,138 |
|
|
|
|
|
|
Debt Fund – 14.1% |
|
|
|
|
|
Invesco Fundamental High Yield Corporate Bond ETF |
| 43,687 |
|
| 799,035 |
SPDR Doubleline Total Return Tactical ETF(a) |
| 17,003 |
|
| 808,493 |
Vanguard Intermediate-Term Bond ETF(a) |
| 9,863 |
|
| 798,607 |
Total Debt Fund |
|
|
|
| 2,406,135 |
|
|
|
|
|
|
Equity Fund – 77.5% |
|
|
|
|
|
Financial Select Sector SPDR Fund |
| 24,769 |
|
| 658,608 |
iShares MSCI EAFE ETF |
| 22,589 |
|
| 1,512,785 |
iShares Russell 2000 ETF |
| 6,719 |
|
| 1,100,371 |
SPDR S&P 500 ETF Trust |
| 31,834 |
|
| 8,635,928 |
Vanguard Real Estate ETF(a) |
| 5,994 |
|
| 488,211 |
X-trackers MSCI Europe Hedged Equity ETF |
| 28,652 |
|
| 804,262 |
Total Equity Fund |
|
|
|
| 13,200,165 |
Total Exchange Traded Funds |
|
|
|
|
|
(Cost $13,866,770) |
|
|
|
| 15,948,438 |
|
|
|
|
|
|
MONEY MARKET FUND – 6.5% |
|
|
| ||
BlackRock Liquidity Funds T-Fund Portfolio, Institutional Class, 1.70%(b) (Cost $1,115,011) |
| 1,115,011 |
|
| 1,115,011 |
Total Investments Before Written Options – 100.1% |
|
|
|
|
|
(Cost $14,981,781) |
|
|
|
| 17,063,449 |
Investments |
| Notional Amount |
| Contracts |
| Value | |||
|
|
|
|
|
|
| |||
WRITTEN CALL OPTIONS – (0.0)%** | |||||||||
iShares MSCI EAFE ETF, expiring 07/20/18, Strike Price $70.00 |
| $1,183,000 |
| (169 | ) |
| $ | (507) |
|
SPDR S&P 500 ETF Trust, expiring 07/20/18, Strike Price $281.00 |
| 4,467,900 |
| (159 | ) |
|
| (2,624) |
|
|
|
|
|
|
|
|
|
|
|
Total Written Options – (0.0)%** | |||||||||
[Premiums Received $(19,615)] |
|
|
|
|
| (3,131 | ) | ||
Total Investments – 100.1% |
|
|
|
|
|
|
| ||
(Cost $14,962,166) |
|
|
|
|
| 17,060,318 |
| ||
Liabilities in Excess of |
|
|
|
|
| (13,242 | ) | ||
Net Assets – 100.0% |
|
|
|
| $ | 17,047,076 |
|
____________
ETF – Exchange Traded Fund
** Less than 0.05%.
(a) All or a portion of this security has been pledged as collateral for option contracts. The aggregate market value of the collateral was $2,326,729 as of June 30, 2018.
(b) Rate shown reflects the 7-day yield as of June 30, 2018.
SUMMARY OF SCHEDULE OF INVESTMENTS
|
| % of | ||
Asset Allocation Fund |
| 2.0 | % |
|
Debt Fund |
| 14.1 |
|
|
Equity Fund |
| 77.5 |
|
|
Written Call Option |
| (0.0 | )** | |
Money Market Fund |
| 6.5 |
|
|
Total Investments |
| 100.1 |
|
|
Liabilities in Excess of Other Assets |
| (0.1 | ) |
|
Net Assets |
| 100.0 | % |
|
____________
** Less than 0.05%.
See accompanying Notes to Financial Statements.
90
ADVISORSHARES VICE ETF
Schedule of Investments
June 30, 2018
Investments |
| Shares |
| Value | |
COMMON STOCKS – 99.6% |
|
|
|
|
|
|
|
|
|
|
|
Agriculture – 25.8% |
|
|
|
|
|
Alliance One International, |
| 5,832 |
| $ | 92,437 |
Altria Group, Inc. |
| 10,373 |
|
| 589,083 |
British American Tobacco PLC (United Kingdom)(a) |
| 8,795 |
|
| 443,708 |
Imperial Brands PLC (United Kingdom)(a) |
| 10,995 |
|
| 408,354 |
Philip Morris International, Inc. |
| 6,992 |
|
| 564,534 |
Turning Point Brands, Inc. |
| 20,618 |
|
| 657,714 |
Universal Corp. |
| 3,707 |
|
| 244,847 |
Vector Group Ltd. |
| 15,936 |
|
| 304,059 |
Total Agriculture |
|
|
|
| 3,304,736 |
|
|
|
|
|
|
Apparel – 0.7% |
|
|
|
|
|
LVMH Moet Hennessy Louis Vuitton SE (France)(a) |
| 1,430 |
|
| 94,809 |
|
|
|
|
|
|
Beverages – 45.2% |
|
|
|
|
|
Ambev SA (Brazil)(a) |
| 68,109 |
|
| 315,345 |
Anheuser-Busch InBev SA/NV (Belgium)(a) |
| 1,650 |
|
| 166,254 |
Boston Beer Co., Inc. (The), Class A* |
| 3,334 |
|
| 999,200 |
Brown-Forman Corp., Class B |
| 11,896 |
|
| 583,023 |
China New Borun Corp. |
| 37,494 |
|
| 46,118 |
Cia Cervecerias Unidas SA (Chile)(a) |
| 13,948 |
|
| 347,863 |
Constellation Brands, Inc., Class A |
| 3,617 |
|
| 791,653 |
Craft Brew Alliance, Inc.* |
| 19,493 |
|
| 402,530 |
Diageo PLC (United |
| 2,400 |
|
| 345,624 |
Fomento Economico Mexicano SAB de CV (Mexico)(a) |
| 705 |
|
| 61,892 |
Heineken NV (Netherlands)(a) |
| 3,800 |
|
| 190,760 |
Kirin Holdings Co. Ltd. |
| 5,332 |
|
| 142,604 |
MGP Ingredients, Inc. |
| 8,765 |
|
| 778,420 |
Molson Coors Brewing Co., Class B |
| 2,000 |
|
| 136,080 |
Pernod Ricard SA (France)(a) |
| 4,168 |
|
| 136,293 |
Vina Concha y Toro SA |
| 8,300 |
|
| 345,363 |
Total Beverages |
|
|
|
| 5,789,022 |
|
|
|
|
|
|
Entertainment – 5.3% |
|
|
|
|
|
RCI Hospitality Holdings, Inc. |
| 21,567 |
|
| 682,596 |
|
|
|
|
|
|
Healthcare – Products – 3.5% |
|
|
|
|
|
Abbott Laboratories |
| 7,281 |
|
| 444,068 |
|
|
|
|
|
|
Healthcare – Services – 4.5% |
|
|
|
|
|
Catalent, Inc.* |
| 13,795 |
|
| 577,873 |
|
|
|
|
|
|
Housewares – 1.3% |
|
|
|
|
|
Scotts Miracle-Gro Co. (The) |
| 1,913 |
|
| 159,085 |
|
|
|
|
|
|
Pharmaceuticals – 9.1% |
|
|
|
|
|
AbbVie, Inc. |
| 7,587 |
|
| 702,935 |
Investments |
| Shares |
| Value | |
COMMON STOCKS (continued) |
|
|
|
|
|
|
|
|
|
|
|
Pharmaceuticals (continued) |
|
|
|
|
|
Corbus Pharmaceuticals Holdings, Inc.* |
| 59,597 |
| $ | 300,965 |
Insys Therapeutics, Inc.* |
| 22,013 |
|
| 159,374 |
Total Pharmaceuticals |
|
|
|
| 1,163,274 |
|
|
|
|
|
|
Retail – 4.2% |
|
|
|
|
|
BJ’s Restaurants, Inc. |
| 1,800 |
|
| 108,000 |
Darden Restaurants, Inc. |
| 3,000 |
|
| 321,180 |
Dave & Buster’s Entertainment, Inc.* |
| 2,319 |
|
| 110,384 |
Total Retail |
|
|
|
| 539,564 |
Total Common Stocks |
|
|
|
|
|
(Cost $12,823,951) |
|
|
|
| 12,755,027 |
|
|
|
|
|
|
MONEY MARKET FUND – 0.1% |
|
|
|
|
|
BlackRock Liquidity Funds Treasury Trust Fund Portfolio, Institutional Class, 1.70%(c) (Cost $9,313) |
| 9,313 |
|
| 9,313 |
Total Investments – 99.7% |
|
|
|
|
|
(Cost $12,833,264) |
|
|
|
| 12,764,340 |
Other Assets in Excess of |
|
|
|
| 35,443 |
Net Assets – 100.0% |
|
|
| $ | 12,799,783 |
____________
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 $7,961; the aggregate market value of the collateral held by the fund is $8,184. The aggregate market value of the collateral includes cash collateral having a value of $8,184.
(c) Rate shown reflects the 7-day yield as of June 30, 2018.
SUMMARY OF SCHEDULE OF INVESTMENTS
|
| % of | |
Agriculture |
| 25.8 | % |
Apparel |
| 0.7 |
|
Beverages |
| 45.2 |
|
Entertainment |
| 5.3 |
|
Healthcare – Products |
| 3.5 |
|
Healthcare – Services |
| 4.5 |
|
Housewares |
| 1.3 |
|
Pharmaceuticals |
| 9.1 |
|
Retail |
| 4.2 |
|
Money Market Fund |
| 0.1 |
|
Total Investments |
| 99.7 |
|
Other Assets in Excess of Liabilities |
| 0.3 |
|
Net Assets |
| 100.0 | % |
See accompanying Notes to Financial Statements.
91
ADVISORSHARES WILSHIRE BUYBACK ETF
Schedule of Investments
June 30, 2018
Investments |
| Shares |
| Value |
COMMON STOCKS – 97.3% |
|
|
|
|
|
|
|
|
|
Advertising – 0.8% |
|
|
|
|
Interpublic Group of Cos., Inc. (The) |
| 31,942 |
| $748,720 |
|
|
|
|
|
Aerospace/Defense – 1.0% |
|
|
|
|
HEICO Corp., Class A |
| 7,805 |
| 475,715 |
Lockheed Martin Corp. |
| 1,677 |
| 495,436 |
Total Aerospace/Defense |
|
|
| 971,151 |
|
|
|
|
|
Agriculture – 0.7% |
|
|
|
|
Altria Group, Inc. |
| 12,465 |
| 707,887 |
|
|
|
|
|
Airlines – 1.6% |
|
|
|
|
JetBlue Airways Corp.* |
| 81,497 |
| 1,546,813 |
|
|
|
|
|
Auto Parts & Equipment – 1.7% |
|
|
|
|
Goodyear Tire & Rubber Co. (The) |
| 33,675 |
| 784,291 |
Lear Corp. |
| 4,355 |
| 809,202 |
Total Auto Parts & Equipment |
|
|
| 1,593,493 |
|
|
|
|
|
Banks – 7.6% |
|
|
|
|
Citizens Financial Group, Inc. |
| 27,578 |
| 1,072,784 |
Fifth Third Bancorp |
| 56,419 |
| 1,619,225 |
KeyCorp |
| 44,247 |
| 864,587 |
M&T Bank Corp. |
| 4,498 |
| 765,335 |
Regions Financial Corp. |
| 83,354 |
| 1,482,034 |
US Bancorp |
| 17,067 |
| 853,691 |
Wells Fargo & Co. |
| 10,441 |
| 578,849 |
Total Banks |
|
|
| 7,236,505 |
|
|
|
|
|
Biotechnology – 1.8% |
|
|
|
|
Amgen, Inc. |
| 5,072 |
| 936,240 |
Celgene Corp.* |
| 10,104 |
| 802,460 |
Total Biotechnology |
|
|
| 1,738,700 |
|
|
|
|
|
Building Materials – 1.8% |
|
|
|
|
Fortune Brands Home & Security, Inc. |
| 16,447 |
| 883,040 |
Masco Corp. |
| 21,977 |
| 822,379 |
Total Building Materials |
|
|
| 1,705,419 |
|
|
|
|
|
Chemicals – 1.1% |
|
|
|
|
PPG Industries, Inc. |
| 5,760 |
| 597,485 |
WR Grace & Co. |
| 6,709 |
| 491,837 |
Total Chemicals |
|
|
| 1,089,322 |
|
|
|
|
|
Commercial Services – 2.8% |
|
|
|
|
ManpowerGroup, Inc. |
| 6,702 |
| 576,774 |
Robert Half International, Inc. |
| 13,969 |
| 909,382 |
S&P Global, Inc. |
| 3,498 |
| 713,207 |
Total System Services, Inc. |
| 5,318 |
| 449,478 |
Total Commercial Services |
|
|
| 2,648,841 |
Investments |
| Shares |
| Value |
COMMON STOCKS (continued) |
|
|
|
|
|
|
|
|
|
Computers – 1.3% |
|
|
|
|
HP, Inc. |
| 56,223 |
| $1,275,700 |
|
|
|
|
|
Cosmetics/Personal Care – 0.5% |
|
|
|
|
Colgate-Palmolive Co. |
| 7,830 |
| 507,462 |
|
|
|
|
|
Diversified Financial Services – 5.8% | ||||
Affiliated Managers Group, Inc. |
| 5,456 |
| 811,143 |
Discover Financial Services |
| 22,980 |
| 1,618,022 |
E*TRADE Financial Corp.* |
| 18,260 |
| 1,116,781 |
FNF Group |
| 7,406 |
| 278,614 |
Synchrony Financial |
| 50,878 |
| 1,698,308 |
Total Diversified Financial Services |
|
|
| 5,522,868 |
|
|
|
|
|
Electric – 0.4% |
|
|
|
|
MDU Resources Group, Inc. |
| 13,184 |
| 378,117 |
|
|
|
|
|
Electrical Components & Equipment – 0.7% |
|
| ||
Emerson Electric Co. |
| 9,042 |
| 625,164 |
Electronics – 1.5% |
|
|
|
|
Gentex Corp. |
| 36,171 |
| 832,656 |
Waters Corp.* |
| 3,300 |
| 638,847 |
Total Electronics |
|
|
| 1,471,503 |
|
|
|
|
|
Engineering & Construction – 0.2% |
|
| ||
nVent Electric PLC (United Kingdom)* |
| 9,044 |
| 227,004 |
|
|
|
|
|
Environmental Control – 0.9% |
|
|
|
|
Waste Management, Inc. |
| 10,909 |
| 887,338 |
|
|
|
|
|
Food – 2.1% |
|
|
|
|
Conagra Brands, Inc. |
| 55,924 |
| 1,998,165 |
|
|
|
|
|
Healthcare - Services – 8.0% |
|
|
|
|
Cigna Corp. |
| 10,912 |
| 1,854,494 |
DaVita Inc.* |
| 37,125 |
| 2,577,960 |
HCA Healthcare, Inc. |
| 20,477 |
| 2,100,940 |
Laboratory Corp. of America Holdings* |
| 2,714 |
| 487,245 |
Quest Diagnostics, Inc. |
| 4,909 |
| 539,696 |
Total Healthcare - Services |
|
|
| 7,560,335 |
|
|
|
|
|
Home Builders – 1.9% |
|
|
|
|
NVR, Inc.* |
| 129 |
| 383,175 |
Toll Brothers, Inc. |
| 38,069 |
| 1,408,172 |
Total Home Builders |
|
|
| 1,791,347 |
|
|
|
|
|
Household Products/Wares – 0.7% |
|
| ||
Kimberly-Clark Corp. |
| 6,352 |
| 669,120 |
See accompanying Notes to Financial Statements.
92
ADVISORSHARES WILSHIRE BUYBACK ETF
Schedule of Investments (continued)
June 30, 2018
Investments |
| Shares |
| Value | |
COMMON STOCKS (continued) |
|
|
|
| |
|
|
|
|
| |
Housewares – 1.1% |
|
|
|
| |
Newell Brands, Inc.(a) |
| 15,525 |
| $400,390 | |
Toro Co. (The) |
| 10,275 |
| 619,069 | |
Total Housewares |
|
|
| 1,019,459 | |
|
|
|
|
| |
Insurance – 7.2% |
|
|
|
| |
Alleghany Corp. |
| 491 |
| 282,310 | |
Assurant, Inc. |
| 12,537 |
| 1,297,454 | |
Brown & Brown, Inc. |
| 23,438 |
| 649,936 | |
Everest Re Group Ltd. |
| 1,355 |
| 312,301 | |
Markel Corp.* |
| 255 |
| 276,509 | |
Prudential Financial, Inc. |
| 5,812 |
| 543,480 | |
RenaissanceRe Holdings Ltd. (Bermuda) |
| 4,119 |
| 495,598 | |
Torchmark Corp. |
| 9,992 |
| 813,449 | |
Unum Group |
| 18,521 |
| 685,092 | |
Voya Financial, Inc.(a) |
| 31,442 |
| 1,477,774 | |
Total Insurance |
|
|
| 6,833,903 | |
|
|
|
|
| |
Internet – 1.9% |
|
|
|
| |
eBay, Inc.* |
| 48,538 |
| 1,759,988 | |
|
|
|
|
| |
Iron/Steel – 1.4% |
|
|
|
| |
Nucor Corp. |
| 4,976 |
| 311,000 | |
Reliance Steel & Aluminum Co. |
| 2,831 |
| 247,826 | |
Steel Dynamics, Inc. |
| 17,437 |
| 801,230 | |
Total Iron/Steel |
|
|
| 1,360,056 | |
|
|
|
|
| |
Leisure Time – 1.2% |
|
|
|
| |
Brunswick Corp. |
| 12,612 |
| 813,222 | |
Royal Caribbean Cruises Ltd. |
| 2,874 |
| 297,746 | |
Total Leisure Time |
|
|
| 1,110,968 | |
|
|
|
|
| |
Lodging – 1.4% |
|
|
|
|
|
Marriott International, Inc., Class A |
| 10,380 |
|
| 1,314,108 |
|
|
|
|
| |
Machinery - Diversified – 1.8% |
|
|
|
|
|
Cummins, Inc. |
| 6,132 |
|
| 815,556 |
Pentair PLC (United Kingdom) |
| 9,043 |
|
| 380,529 |
Rockwell Automation, Inc. |
| 2,829 |
|
| 470,265 |
Total Machinery – Diversified |
|
|
|
| 1,666,350 |
|
|
|
|
| |
Media – 1.7% |
|
|
|
|
|
Charter Communications, Inc., Class A* |
| 5,588 |
|
| 1,638,458 |
|
|
|
|
| |
Miscellaneous Manufacturing – 0.9% |
|
|
| ||
Eaton Corp. PLC |
| 11,055 |
|
| 826,251 |
|
|
|
|
| |
Oil & Gas – 4.3% |
|
|
|
|
|
Anadarko Petroleum Corp. |
| 29,341 |
|
| 2,149,228 |
Investments |
| Shares |
| Value | |
COMMON STOCKS (continued) |
|
|
|
| |
|
|
|
|
| |
Oil & Gas (continued) |
|
|
|
|
|
ConocoPhillips |
| 27,468 |
| $ | 1,912,322 |
Total Oil & Gas |
|
|
|
| 4,061,550 |
|
|
|
|
|
|
Oil & Gas Services – 0.5% |
|
|
|
|
|
Halliburton Co. |
| 10,711 |
|
| 482,638 |
|
|
|
|
|
|
Packaging & Containers – 1.6% |
|
|
|
|
|
Sealed Air Corp.(a) |
| 36,711 |
|
| 1,558,382 |
|
|
|
|
|
|
Pharmaceuticals – 2.0% |
|
|
|
|
|
AbbVie, Inc. |
| 3,862 |
|
| 357,814 |
McKesson Corp. |
| 6,747 |
|
| 900,050 |
Zoetis, Inc. |
| 7,476 |
|
| 636,881 |
Total Pharmaceuticals |
|
|
|
| 1,894,745 |
|
|
|
|
|
|
Pipelines – 0.7% |
|
|
|
|
|
Kinder Morgan, Inc. |
| 34,873 |
|
| 616,206 |
|
|
|
|
|
|
REITS – 4.6% |
|
|
|
|
|
Brixmor Property Group, Inc. |
| 25,589 |
|
| 446,016 |
Colony Capital, Inc.(a) |
| 173,714 |
|
| 1,083,976 |
SL Green Realty Corp. |
| 23,664 |
|
| 2,378,942 |
VEREIT, Inc. |
| 55,937 |
|
| 416,171 |
Total REITS |
|
|
|
| 4,325,105 |
|
|
|
|
|
|
Retail – 12.1% |
|
|
|
|
|
AutoZone, Inc.* |
| 2,046 |
|
| 1,372,723 |
Best Buy Co., Inc.(a) |
| 18,445 |
|
| 1,375,628 |
Burlington Stores, Inc.* |
| 6,188 |
|
| 931,480 |
Dollar General Corp. |
| 5,524 |
|
| 544,667 |
Foot Locker, Inc. |
| 39,818 |
|
| 2,096,418 |
L Brands, Inc. |
| 18,840 |
|
| 694,819 |
Ross Stores, Inc. |
| 10,599 |
|
| 898,265 |
Target Corp. |
| 9,277 |
|
| 706,165 |
Walgreens Boots Alliance, Inc. |
| 35,943 |
|
| 2,157,119 |
Walmart, Inc. |
| 8,459 |
|
| 724,513 |
Total Retail |
|
|
|
| 11,501,797 |
|
|
|
|
|
|
Semiconductors – 1.2% |
|
|
|
|
|
KLA-Tencor Corp. |
| 3,592 |
|
| 368,288 |
Teradyne, Inc. |
| 20,037 |
|
| 762,808 |
Total Semiconductors |
|
|
|
| 1,131,096 |
|
|
|
|
|
|
Shipbuilding – 0.9% |
|
|
|
|
|
Huntington Ingalls Industries, Inc. |
| 3,756 |
|
| 814,263 |
|
|
|
|
|
|
Telecommunications – 3.6% |
|
|
|
| �� |
Juniper Networks, Inc.(a) |
| 86,911 |
|
| 2,383,100 |
LogMeIn, Inc.(a) |
| 3,330 |
|
| 343,822 |
See accompanying Notes to Financial Statements.
93
ADVISORSHARES WILSHIRE BUYBACK ETF
Schedule of Investments (continued)
June 30, 2018
Investments |
| Shares/Principal |
| Value | ||
COMMON STOCKS (continued) |
|
|
|
| ||
|
|
|
|
| ||
Telecommunications (continued) |
|
|
| |||
Motorola Solutions, Inc. |
|
| 5,990 |
| $ | 697,056 |
Total Telecommunications |
|
|
|
|
| 3,423,978 |
|
|
|
|
|
|
|
Transportation – 2.3% |
|
|
|
|
|
|
Kansas City Southern |
|
| 11,285 |
|
| 1,195,758 |
Norfolk Southern Corp. |
|
| 6,455 |
|
| 973,866 |
Total Transportation |
|
|
|
|
| 2,169,624 |
Total Common Stocks |
|
|
|
|
|
|
(Cost $93,513,477) |
|
|
|
|
| 92,409,899 |
|
|
|
|
|
|
|
MONEY MARKET FUND – 2.7% |
|
|
|
|
|
|
Wells Fargo Advantage Government Money Market Fund - Institutional Class, 1.78%(b) (Cost $2,576,115) |
|
| 2,576,115 |
|
| 2,576,115 |
|
|
|
|
|
|
|
REPURCHASE AGREEMENTS – 2.5%(c) |
|
|
| |||
|
|
|
|
|
|
|
Deutsche Bank Securities, Inc., dated 06/29/18, due 07/02/18, 2.12%, total to be received $555,268, (collateralized by various U.S. Government Agency Obligations, 0.00% – 7.25%, 07/27/18 – 09/06/44, totaling $563,395) |
| $ | 555,170 |
|
| 555,170 |
NatWest Markets PLC, dated 06/29/18, due 07/02/18, 2.09%, total to be received $164,611, (collateralized by various U.S. Government Agency Obligations, 2.50% – 6.63%, 05/15/20 – 05/15/46, totaling $166,889) |
|
| 164,582 |
|
| 164,582 |
NBC Global Finance Ltd., dated 06/29/18, due 07/02/18, 1.95%, total to be received $555,260, (collateralized by various U.S. Government Agency Obligations, 0.00% – 3.63%, 01/31/20 – 09/09/49, totaling $564,886) |
|
| 555,170 |
|
| 555,170 |
Nomura Securities International, Inc., dated 06/29/18, due 07/02/18, 2.12%, total to be received $555,268, (collateralized by various U.S. Government Agency Obligations, 0.00% – 9.00%, 07/15/18 – 05/20/68, totaling $564,161) |
|
| 555,170 |
|
| 555,170 |
Investments |
|
|
| Value | ||
REPURCHASE AGREEMENTS (continued) |
|
|
| |||
|
|
|
|
|
|
|
RBC Dominion Securities, Inc., dated 06/29/18, due 07/02/18, 2.11%, total to be received $555,268, (collateralized by various U.S. Government Agency Obligations, 3.00% – 7.00%, 11/01/36 – 06/01/48, totaling $564,484) |
| $ | 555,170 |
| $ | 555,170 |
Total Repurchase Agreements |
|
|
|
|
|
|
(Cost $2,385,262) |
|
|
|
|
| 2,385,262 |
|
|
|
|
|
|
|
Total Investments – 102.5% |
|
|
|
|
|
|
(Cost $98,474,854) |
|
|
|
|
| 97,371,276 |
Liabilities in Excess of Other |
|
|
|
|
| (2,337,221) |
Net Assets – 100.0% |
|
|
|
| $ | 95,034,055 |
____________
PLC – Public Limited Company
REITS – Real Estate Investment Trusts
* Non-income producing security.
(a) All or a portion of security is on loan. The aggregate market value of the securities on loan is $7,764,185; the aggregate market value of the collateral held by the fund is $7,944,597. The aggregate market value of the collateral includes non-cash U.S. Treasury securities collateral having a value of $5,559,335.
(b) Rate shown reflects the 7-day yield as of June 30, 2018.
(c) Collateral received from brokers for securities lending was invested in these short-term investments.
SUMMARY OF SCHEDULE OF INVESTMENTS
|
| % of | |
Advertising |
| 0.8 | % |
Aerospace/Defense |
| 1.0 |
|
Agriculture |
| 0.7 |
|
Airlines |
| 1.6 |
|
Auto Parts & Equipment |
| 1.7 |
|
Banks |
| 7.6 |
|
Biotechnology |
| 1.8 |
|
Building Materials |
| 1.8 |
|
Chemicals |
| 1.1 |
|
Commercial Services |
| 2.8 |
|
Computers |
| 1.3 |
|
Cosmetics/Personal Care |
| 0.5 |
|
Diversified Financial Services |
| 5.8 |
|
Electric |
| 0.4 |
|
Electrical Components & Equipment |
| 0.7 |
|
Electronics |
| 1.5 |
|
Engineering & Construction |
| 0.2 |
|
See accompanying Notes to Financial Statements.
94
ADVISORSHARES WILSHIRE BUYBACK ETF
Schedule of Investments (continued)
June 30, 2018
SUMMARY OF SCHEDULE OF INVESTMENTS
(continued)
|
| % of | |
Environmental Control |
| 0.9 | % |
Food |
| 2.1 |
|
Healthcare – Services |
| 8.0 |
|
Home Builders |
| 1.9 |
|
Household Products/Wares |
| 0.7 |
|
Housewares |
| 1.1 |
|
Insurance |
| 7.2 |
|
Internet |
| 1.9 |
|
Iron/Steel |
| 1.4 |
|
Leisure Time |
| 1.2 |
|
Lodging |
| 1.4 |
|
Machinery – Diversified |
| 1.8 |
|
Media |
| 1.7 |
|
Miscellaneous Manufacturing |
| 0.9 |
|
Oil & Gas |
| 4.3 |
|
Oil & Gas Services |
| 0.5 |
|
Packaging & Containers |
| 1.6 |
|
Pharmaceuticals |
| 2.0 |
|
Pipelines |
| 0.7 |
|
REITS |
| 4.6 |
|
Retail |
| 12.1 |
|
Semiconductors |
| 1.2 |
|
Shipbuilding |
| 0.9 |
|
Telecommunications |
| 3.6 |
|
Transportation |
| 2.3 |
|
Money Market Fund |
| 2.7 |
|
Repurchase Agreements |
| 2.5 |
|
Total Investments |
| 102.5 |
|
Liabilities in Excess of Other Assets |
| (2.5 | ) |
Net Assets |
| 100.0 | % |
See accompanying Notes to Financial Statements.
95
ADVISORSHARES TRUST
Statements of Assets and Liabilities
June 30, 2018
|
| AdvisorShares Cornerstone Small Cap ETF |
| AdvisorShares Dorsey Wright ADR ETF |
| AdvisorShares Focused Equity ETF | |||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
Investments, at Cost |
| $ | 4,245,853 |
|
| $ | 240,019,591 |
|
| $ | 12,678,613 |
Repurchase Agreements, at Cost (Note 2) |
|
| 172,820 |
|
|
| 21,756,156 |
|
|
| 206 |
|
| 4,418,673 |
|
|
| 261,775,747 |
|
|
| 12,678,819 | |
Investments, at Market Value (including securities on loan) (Note 2)(a) |
|
| 5,225,548 |
|
|
| 246,539,212 |
|
|
| 14,338,925 |
Repurchase Agreements, at Market Value (Note 2) |
|
| 172,820 |
|
|
| 21,756,156 |
|
|
| 206 |
|
| 5,398,368 |
|
|
| 268,295,368 |
|
|
| 14,339,131 | |
Cash |
|
| — |
|
|
| 46,446 |
|
|
| — |
Dividends and Interest Receivable |
|
| 5,340 |
|
|
| 284,743 |
|
|
| 5,431 |
Receivable from Securities Sold |
|
| — |
|
|
| — |
|
|
| — |
Reclaim Receivable |
|
| — |
|
|
| 10,109 |
|
|
| — |
Due from Investment Advisor |
|
| 6,702 |
|
|
| — |
|
|
| 1,027 |
Prepaid Expenses |
|
| 4,742 |
|
|
| 46,776 |
|
|
| 6,431 |
|
| 5,415,152 |
|
|
| 268,683,442 |
|
|
| 14,352,020 | |
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
Cash collateral for securities on loan(b) |
|
| 172,820 |
|
|
| 21,756,156 |
|
|
| 206 |
Advisory Fees Payable |
|
| — |
|
|
| 153,314 |
|
|
| — |
Trustee Fees Payable |
|
| 5 |
|
|
| — |
|
|
| — |
Payable for Securities Purchased |
|
| — |
|
|
| — |
|
|
| — |
CCO Fees Payable |
|
| 13 |
|
|
| 857 |
|
|
| 40 |
Accrued Expenses |
|
| 42,741 |
|
|
| 72,532 |
|
|
| 40,426 |
|
| 215,579 |
|
|
| 21,982,859 |
|
|
| 40,672 | |
NET ASSETS |
| $ | 5,199,573 |
|
| $ | 246,700,583 |
|
| $ | 14,311,348 |
COMPONENTS OF NET ASSETS |
|
|
|
|
|
|
|
|
|
|
|
Capital Stock at Zero Par Value |
| $ | 4,523,306 |
|
| $ | 255,548,792 |
|
| $ | 12,361,080 |
Undistributed (Accumulated) Net Investment Income (Loss) |
|
| 6,873 |
|
|
| — |
|
|
| 32,966 |
Undistributed (Accumulated) Net Realized Gain (Loss) |
|
| (310,301 | ) |
|
| (15,367,830 | ) |
|
| 256,990 |
Net Unrealized Appreciation (Depreciation) |
|
| 979,695 |
|
|
| 6,519,621 |
|
|
| 1,660,312 |
NET ASSETS |
| $ | 5,199,573 |
|
| $ | 246,700,583 |
|
| $ | 14,311,348 |
SHARES ISSUED AND OUTSTANDING |
|
|
|
|
|
|
|
|
|
|
|
Shares Outstanding (Unlimited Shares Authorized) |
|
| 136,476 |
|
|
| 4,625,000 |
|
|
| 450,000 |
Net Asset Value (NAV) Per Share |
| $ | 38.10 |
|
| $ | 53.34 |
|
| $ | 31.80 |
|
|
|
|
|
|
|
|
|
|
|
|
(a) Market value of securities on loan |
| $ | 1,188,500 |
|
| $ | 30,313,115 |
|
| $ | 2,732,822 |
(b) Non-cash collateral for securities on loan |
| $ | 1,041,700 |
|
| $ | 9,321,462 |
|
| $ | 2,790,703 |
See accompanying Notes to Financial Statements.
96
ADVISORSHARES TRUST
Statements of Assets and Liabilities
June 30, 2018
AdvisorShares |
| AdvisorShares Madrona |
| AdvisorShares Madrona Global Bond ETF |
| AdvisorShares Madrona International ETF |
| AdvisorShares |
| AdvisorShares Newfleet Multi- | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ | 8,607,989 |
| $ | 26,366,570 |
|
| $ | 18,525,990 |
|
| $ | 13,323,406 |
|
| $ | 38,850,772 |
|
| $ | 156,742,225 |
|
| — |
|
| 292,712 |
|
|
| 3,602,075 |
|
|
| 2,004,390 |
|
|
| 790 |
|
|
| 1,011,180 |
|
| 8,607,989 |
|
| 26,659,282 |
|
|
| 22,128,065 |
|
|
| 15,327,796 |
|
|
| 38,851,562 |
|
|
| 157,753,405 |
|
| 9,485,664 |
|
| 30,602,956 |
|
|
| 18,438,924 |
|
|
| 13,650,033 |
|
|
| 40,657,058 |
|
|
| 155,671,798 |
|
| — |
|
| 292,712 |
|
|
| 3,602,075 |
|
|
| 2,004,390 |
|
|
| 790 |
|
|
| 1,011,180 |
|
| 9,485,664 |
|
| 30,895,668 |
|
|
| 22,040,999 |
|
|
| 15,654,423 |
|
|
| 40,657,848 |
|
|
| 156,682,978 |
|
| 69,421 |
|
| 439 |
|
|
| — |
|
|
| 17 |
|
|
| — |
|
|
| 82,017 |
|
| 16,536 |
|
| 28,802 |
|
|
| 7,269 |
|
|
| 12,927 |
|
|
| 5,127 |
|
|
| 472,437 |
|
| 42,846 |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 6,538,739 |
|
|
| 1,434,128 |
|
| — |
|
| — |
|
|
| — |
|
|
| 1,175 |
|
|
| 3,349 |
|
|
| — |
|
| 15,891 |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
| 8,703 |
|
| 12,940 |
|
|
| 11,146 |
|
|
| 9,861 |
|
|
| 12,889 |
|
|
| 57,102 |
|
| 9,639,061 |
|
| 30,937,849 |
|
|
| 22,059,414 |
|
|
| 15,678,403 |
|
|
| 47,217,952 |
|
|
| 158,728,662 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| — |
|
| 292,712 |
|
|
| 3,602,075 |
|
|
| 2,004,390 |
|
|
| 790 |
|
|
| 1,011,180 |
|
| — |
|
| 22,826 |
|
|
| 6,527 |
|
|
| 8,507 |
|
|
| 13,686 |
|
|
| 66,951 |
|
| — |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
| 58,308 |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 2,038,296 |
|
| 29 |
|
| 84 |
|
|
| 51 |
|
|
| 40 |
|
|
| 151 |
|
|
| 386 |
|
| 34,098 |
|
| 48,961 |
|
|
| 45,416 |
|
|
| 46,254 |
|
|
| 29,958 |
|
|
| 83,019 |
|
| 92,435 |
|
| 364,583 |
|
|
| 3,654,069 |
|
|
| 2,059,191 |
|
|
| 44,585 |
|
|
| 3,199,832 |
|
$ | 9,546,626 |
| $ | 30,573,266 |
|
| $ | 18,405,345 |
|
| $ | 13,619,212 |
|
| $ | 47,173,367 |
|
| $ | 155,528,830 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ | 8,315,679 |
| $ | 28,636,197 |
|
| $ | 19,431,950 |
|
| $ | 17,670,701 |
|
| $ | 51,040,810 |
|
| $ | 163,691,173 |
|
| 45,569 |
|
| 71,277 |
|
|
| 21,836 |
|
|
| 142,610 |
|
|
| (24,351 | ) |
|
| 66,412 |
|
| 307,741 |
|
| (2,370,594 | ) |
|
| (961,375 | ) |
|
| (4,520,726 | ) |
|
| (5,649,378 | ) |
|
| (7,158,328 | ) |
| 877,637 |
|
| 4,236,386 |
|
|
| (87,066 | ) |
|
| 326,627 |
|
|
| 1,806,286 |
|
|
| (1,070,427 | ) |
$ | 9,546,626 |
| $ | 30,573,266 |
|
| $ | 18,405,345 |
|
| $ | 13,619,212 |
|
| $ | 47,173,367 |
|
| $ | 155,528,830 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 350,000 |
|
| 575,000 |
|
|
| 725,000 |
|
|
| 450,000 |
|
|
| 2,225,000 |
|
|
| 3,250,000 |
|
$ | 27.28 |
| $ | 53.17 |
|
| $ | 25.39 |
|
| $ | 30.26 |
|
| $ | 21.20 |
|
| $ | 47.86 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ | — |
| $ | 3,016,413 |
|
| $ | 3,510,085 |
|
| $ | 3,775,356 |
|
| $ | 3,304,116 |
|
| $ | 984,775 |
|
$ | — |
| $ | 2,789,316 |
|
| $ | — |
|
| $ | 1,865,171 |
|
| $ | 3,375,302 |
|
| $ | — |
|
See accompanying Notes to Financial Statements.
97
ADVISORSHARES TRUST
Statements of Assets and Liabilities
June 30, 2018
|
| AdvisorShares Pacific Asset Enhanced Floating Rate ETF |
| AdvisorShares Ranger Equity Bear ETF |
| AdvisorShares Sage Core Reserves ETF | ||||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
Investments, at Cost |
| $ | 30,449,587 |
|
| $ | 24,598,179 |
|
| $ | 51,841,785 |
|
Investments in Affiliates, at Cost (Note 8) |
|
| — |
|
|
| 44,743,500 |
|
|
| — |
|
Repurchase Agreements, at Cost (Note 2) |
|
| 116,424 |
|
|
| — |
|
|
| 144,705 |
|
|
| 30,566,011 |
|
|
| 69,341,679 |
|
|
| 51,986,490 |
| |
Investments, at Market Value (including securities on loan) (Note 2)(a) |
|
| 29,984,138 |
|
|
| 24,598,179 |
|
|
| 51,815,820 |
|
Investments in Affiliates, at Market Value (Note 8) |
|
| — |
|
|
| 44,635,500 |
|
|
| — |
|
Repurchase Agreements, at Market Value (Note 2) |
|
| 116,424 |
|
|
| — |
|
|
| 144,705 |
|
|
| 30,100,562 |
|
|
| 69,233,679 |
|
|
| 51,960,525 |
| |
Cash |
|
| 9,280 |
|
|
| 59,000,000 |
|
|
| — |
|
Cash collateral held at brokers |
|
| — |
|
|
| 132,103,957 |
|
|
| 121,179 |
|
Unrealized Appreciation on Swaps Contracts |
|
| 48,964 |
|
|
| — |
|
|
| — |
|
Dividends and Interest Receivable |
|
| 83,727 |
|
|
| 47,872 |
|
|
| 242,066 |
|
Receivable from Securities Sold |
|
| 245,151 |
|
|
| 2,995,929 |
|
|
| 386,357 |
|
Reclaim Receivable |
|
| — |
|
|
| — |
|
|
| — |
|
Due from Investment Advisor |
|
| — |
|
|
| — |
|
|
| — |
|
Prepaid Expenses |
|
| 8,621 |
|
|
| 25,188 |
|
|
| 10,100 |
|
|
| 30,496,305 |
|
|
| 263,406,625 |
|
|
| 52,720,227 |
| |
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
Interest Payable |
|
| — |
|
|
| 297 |
|
|
| — |
|
Cash collateral for securities on loan(b) |
|
| 116,424 |
|
|
| — |
|
|
| 144,705 |
|
Advisory Fees Payable |
|
| 11,915 |
|
|
| 173,487 |
|
|
| 795 |
|
Securities Sold, Not Yet Purchased(c) |
|
| — |
|
|
| 126,223,795 |
|
|
| — |
|
Payable for Securities Purchased |
|
| 1,001,250 |
|
|
| 3,335,037 |
|
|
| 439,476 |
|
Options Written, at value(d) |
|
| — |
|
|
| — |
|
|
| — |
|
CCO Fees Payable |
|
| 81 |
|
|
| 346 |
|
|
| 108 |
|
Due to Broker |
|
| — |
|
|
| — |
|
|
| — |
|
Dividend Payable on Securities Sold, Not Yet Purchased |
|
| — |
|
|
| 11,850 |
|
|
| — |
|
Accrued Expenses |
|
| 44,077 |
|
|
| 74,762 |
|
|
| 48,344 |
|
|
| 1,173,747 |
|
|
| 129,819,574 |
|
|
| 633,428 |
| |
NET ASSETS |
| $ | 29,322,558 |
|
| $ | 133,587,051 |
|
| $ | 52,086,799 |
|
COMPONENTS OF NET ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
Capital Stock at Zero Par Value |
| $ | 29,958,361 |
|
| $ | 363,986,245 |
|
| $ | 52,417,458 |
|
Undistributed (Accumulated) Net Investment Income (Loss) |
|
| 19,995 |
|
|
| (798,572 | ) |
|
| 16,312 |
|
Undistributed (Accumulated) Net Realized Gain (Loss) |
|
| (239,313 | ) |
|
| (226,726,719 | ) |
|
| (321,006 | ) |
Net Unrealized Appreciation (Depreciation) |
|
| (416,485 | ) |
|
| (2,873,903 | ) |
|
| (25,965 | ) |
NET ASSETS |
| $ | 29,322,558 |
|
| $ | 133,587,051 |
|
| $ | 52,086,799 |
|
SHARES ISSUED AND OUTSTANDING |
|
|
|
|
|
|
|
|
|
|
|
|
Shares Outstanding (Unlimited Shares Authorized) |
|
| 600,000 |
|
|
| 17,125,000 |
|
|
| 525,000 |
|
Net Asset Value (NAV) Per Share |
| $ | 48.87 |
|
| $ | 7.80 |
|
| $ | 99.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Market value of securities on loan |
| $ | 113,872 |
|
| $ | — |
|
| $ | 140,465 |
|
(b) Non-cash collateral for securities on loan |
| $ | — |
|
| $ | — |
|
| $ | — |
|
(c) Proceeds Received from Securities Sold, Not Yet Purchased |
| $ | — |
|
| $ | 123,457,892 |
|
| $ | — |
|
(d) Premiums Received for Options Written |
| $ | — |
|
| $ | — |
|
| $ | — |
|
See accompanying Notes to Financial Statements.
98
ADVISORSHARES TRUST
Statements of Assets and Liabilities
June 30, 2018
|
| AdvisorShares |
| AdvisorShares Wilshire Buyback ETF | ||||||
|
|
|
|
|
|
|
|
|
|
|
$ | 14,981,781 |
|
| $ | 12,833,264 |
|
| $ | 96,089,592 |
|
| — |
|
|
| — |
|
|
| — |
|
| — |
|
|
| — |
|
|
| 2,385,262 |
|
| 14,981,781 |
|
|
| 12,833,264 |
|
|
| 98,474,854 |
|
| 17,063,449 |
|
|
| 12,764,340 |
|
|
| 94,986,014 |
|
| — |
|
|
| — |
|
|
| — |
|
| — |
|
|
| — |
|
|
| 2,385,262 |
|
| 17,063,449 |
|
|
| 12,764,340 |
|
|
| 97,371,276 |
|
| — |
|
|
| 8,184 |
|
|
| — |
|
| — |
|
|
| — |
|
|
| — |
|
| — |
|
|
| — |
|
|
| — |
|
| 40,227 |
|
|
| 31,032 |
|
|
| 127,769 |
|
| — |
|
|
| — |
|
|
| — |
|
| — |
|
|
| 824 |
|
|
| — |
|
| — |
|
|
| 13,169 |
|
|
| — |
|
| 12,017 |
|
|
| 7,823 |
|
|
| 25,696 |
|
| 17,115,693 |
|
|
| 12,825,372 |
|
|
| 97,524,741 |
|
|
|
|
|
| ||||||
| — |
|
|
| — |
|
|
| — |
|
| — |
|
|
| 8,184 |
|
|
| 2,385,262 |
|
| 15,342 |
|
|
| — |
|
|
| 56,494 |
|
| — |
|
|
| — |
|
|
| — |
|
| — |
|
|
| — |
|
|
| — |
|
| 3,131 |
|
|
| — |
|
|
| — |
|
| 44 |
|
|
| 47 |
|
|
| 263 |
|
| 3,683 |
|
|
| — |
|
|
| — |
|
| — |
|
|
| — |
|
|
| — |
|
| 46,417 |
|
|
| 17,358 |
|
|
| 48,667 |
|
| 68,617 |
|
|
| 25,589 |
|
|
| 2,490,686 |
|
$ | 17,047,076 |
|
| $ | 12,799,783 |
|
| $ | 95,034,055 |
|
|
|
|
|
| ||||||
$ | 15,973,742 |
|
| $ | 13,001,431 |
|
| $ | 121,063,167 |
|
| 64,622 |
|
|
| 105,103 |
|
|
| 547,154 |
|
| (1,089,440 | ) |
|
| (237,827 | ) |
|
| (25,472,688 | ) |
| 2,098,152 |
|
|
| (68,924 | ) |
|
| (1,103,578 | ) |
$ | 17,047,076 |
|
| $ | 12,799,783 |
|
| $ | 95,034,055 |
|
|
|
|
|
| ||||||
| 550,000 |
|
|
| 500,000 |
|
|
| 1,400,000 |
|
$ | 30.99 |
|
| $ | 25.60 |
|
| $ | 67.88 |
|
|
|
|
|
| ||||||
$ | — |
|
| $ | 7,961 |
|
| $ | 7,764,185 |
|
$ | — |
|
| $ | — |
|
| $ | 5,559,335 |
|
$ | — |
|
| $ | — |
|
| $ | — |
|
$ | 19,615 |
|
| $ | — |
|
| $ | — |
|
See accompanying Notes to Financial Statements.
99
ADVISORSHARES TRUST
Statements of Operations
Year Ended June 30, 2018
|
| AdvisorShares Cornerstone Small Cap ETF |
| AdvisorShares Dorsey Wright ADR ETF |
| AdvisorShares Focused Equity | ||||||
INVESTMENT INCOME: |
|
|
|
|
|
|
|
|
|
|
|
|
| $ | 47,390 |
|
| $ | 3,232,429 |
|
| $ | 144,221 |
| |
|
| — |
|
|
| — |
|
|
| — |
| |
|
| — |
|
|
| — |
|
|
| — |
| |
|
| 4,648 |
|
|
| 467,638 |
|
|
| 1,321 |
| |
|
| (8 | ) |
|
| (245,889 | ) |
|
| — |
| |
|
| 52,030 |
|
|
| 3,454,178 |
|
|
| 145,542 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 30,320 |
|
|
| 1,294,976 |
|
|
| 89,823 |
| |
|
| 56,120 |
|
|
| 105,050 |
|
|
| 41,396 |
| |
|
| 19,547 |
|
|
| 69,161 |
|
|
| 21,878 |
| |
|
| 12,348 |
|
|
| 8,384 |
|
|
| 7,413 |
| |
|
| 6,078 |
|
|
| 15,181 |
|
|
| 1,605 |
| |
|
| 4,126 |
|
|
| 51,687 |
|
|
| 6,571 |
| |
|
| 5,068 |
|
|
| 7,297 |
|
|
| 5,275 |
| |
|
| 1,971 |
|
|
| 14,215 |
|
|
| 2,681 |
| |
|
| 4,194 |
|
|
| 7,461 |
|
|
| 4,728 |
| |
|
| 350 |
|
|
| 13,124 |
|
|
| 991 |
| |
|
| 231 |
|
|
| 3,899 |
|
|
| 597 |
| |
|
| — |
|
|
| 66,747 |
|
|
| — |
| |
|
| 2,263 |
|
|
| 7,677 |
|
|
| 927 |
| |
|
| 142,616 |
|
|
| 1,664,859 |
|
|
| 183,885 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Advisory Fees Waived/Recoupment |
|
| (30,320 | ) |
|
| 117,221 |
|
|
| (89,823 | ) |
Expense Reimbursement |
|
| (70,315 | ) |
|
| — |
|
|
| (4,239 | ) |
|
| 41,981 |
|
|
| 1,782,080 |
|
|
| 89,823 |
| |
|
| 10,049 |
|
|
| 1,672,098 |
|
|
| 55,719 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
REALIZED AND UNREALIZED GAIN (LOSS) ON: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| (336,362 | ) |
|
| (12,241,383 | ) |
|
| 274,857 |
| |
|
| — |
|
|
| — |
|
|
| — |
| |
|
| 877,624 |
|
|
| 3,493,557 |
|
|
| 513,725 |
| |
|
| — |
|
|
| — |
|
|
| — |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
| 465,077 |
|
|
| 2,258,827 |
|
|
| 595,369 |
| |
|
| — |
|
|
| — |
|
|
| — |
| |
|
| — |
|
|
| — |
|
|
| — |
| |
|
| 1,006,339 |
|
|
| (6,488,999 | ) |
|
| 1,383,951 |
| |
| $ | 1,016,388 |
|
| $ | (4,816,901 | ) |
| $ | 1,439,670 |
|
See accompanying Notes to Financial Statements.
100
ADVISORSHARES TRUST
Statements of Operations
Year Ended June 30, 2018
AdvisorShares |
| AdvisorShares Madrona |
| AdvisorShares Madrona Global Bond ETF |
| AdvisorShares Madrona International ETF |
| AdvisorShares New Tech and Media ETF(1) |
| AdvisorShares Newfleet Multi- | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 352,094 |
|
| $ | 492,733 |
|
| $ | 606,659 |
|
| $ | 353,854 |
|
| $ | 122,999 |
|
| $ | 67,963 |
|
— |
|
|
| — |
|
|
| 104,369 |
|
|
| — |
|
|
| — |
|
|
| — |
|
— |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 6,243,506 |
|
— |
|
|
| 2,862 |
|
|
| 98,786 |
|
|
| 29,558 |
|
|
| 96,530 |
|
|
| 6,623 |
|
(41,958 | ) |
|
| (34 | ) |
|
| — |
|
|
| (26,122 | ) |
|
| (3,349 | ) |
|
| — |
|
310,136 |
|
|
| 495,561 |
|
|
| 809,814 |
|
|
| 357,290 |
|
|
| 216,180 |
|
|
| 6,318,092 |
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
|
|
|
|
|
|
|
|
|
|
| |||||||||||
87,874 |
|
|
| 231,515 |
|
|
| 91,560 |
|
|
| 103,443 |
|
|
| 209,946 |
|
|
| 1,408,780 |
|
43,174 |
|
|
| 84,436 |
|
|
| 75,794 |
|
|
| 75,994 |
|
|
| 17,490 |
|
|
| 145,393 |
|
34,962 |
|
|
| 26,685 |
|
|
| 23,569 |
|
|
| 21,844 |
|
|
| 78,061 |
|
|
| 97,078 |
|
7,371 |
|
|
| 6,924 |
|
|
| 6,941 |
|
|
| 6,941 |
|
|
| 6,896 |
|
|
| 6,940 |
|
76,853 |
|
|
| 16,135 |
|
|
| 1,746 |
|
|
| 1,427 |
|
|
| 5,965 |
|
|
| 29,792 |
|
3,924 |
|
|
| 6,511 |
|
|
| 4,792 |
|
|
| 2,660 |
|
|
| 19,207 |
|
|
| 46,189 |
|
5,244 |
|
|
| 5,478 |
|
|
| 5,341 |
|
|
| 5,175 |
|
|
| 5,686 |
|
|
| 7,763 |
|
2,510 |
|
|
| 3,879 |
|
|
| 3,060 |
|
|
| 2,624 |
|
|
| 3,955 |
|
|
| 18,931 |
|
4,351 |
|
|
| 7,561 |
|
|
| 7,551 |
|
|
| 6,783 |
|
|
| 3,999 |
|
|
| 21,547 |
|
785 |
|
|
| 2,171 |
|
|
| 1,373 |
|
|
| 970 |
|
|
| 2,768 |
|
|
| 16,257 |
|
503 |
|
|
| 1,599 |
|
|
| 1,097 |
|
|
| 723 |
|
|
| 1,308 |
|
|
| 15,837 |
|
— |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
2,651 |
|
|
| 3,608 |
|
|
| 1,261 |
|
|
| 1,313 |
|
|
| 3,470 |
|
|
| 15,747 |
|
270,202 |
|
|
| 396,502 |
|
|
| 224,085 |
|
|
| 229,897 |
|
|
| 358,751 |
|
|
| 1,830,254 |
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(87,874 | ) |
|
| (34,760 | ) |
|
| (50,120 | ) |
|
| (68,268 | ) |
|
| (56,539 | ) |
|
| (204,737 | ) |
(78,763 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
103,565 |
|
|
| 361,742 |
|
|
| 173,965 |
|
|
| 161,629 |
|
|
| 302,212 |
|
|
| 1,625,517 |
|
206,571 |
|
|
| 133,819 |
|
|
| 635,849 |
|
|
| 195,661 |
|
|
| (86,032 | ) |
|
| 4,692,575 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
453,065 |
|
|
| 1,147,685 |
|
|
| (89,262 | ) |
|
| 1,438,639 |
|
|
| (6,164,542 | ) |
|
| (881,725 | ) |
— |
|
|
| — |
|
|
| 55,370 |
|
|
| — |
|
|
| — |
|
|
| — |
|
— |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 2,397,117 |
|
|
| 10,238 |
|
(6,639 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (2,294 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(525,957 | ) |
|
| 1,357,738 |
|
|
| (288,559 | ) |
|
| (309,457 | ) |
|
| 1,806,286 |
|
|
| (1,599,553 | ) |
— |
|
|
| — |
|
|
| (42,423 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
38 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
(79,493 | ) |
|
| 2,505,423 |
|
|
| (364,874 | ) |
|
| 1,129,182 |
|
|
| (1,961,139 | ) |
|
| (2,473,334 | ) |
|
|
| $ | 2,639,242 |
|
| $ | 270,975 |
|
| $ | 1,324,843 |
|
| $ | (2,047,171 | ) |
| $ | 2,219,241 |
|
See accompanying Notes to Financial Statements.
101
ADVISORSHARES TRUST
Statements of Operations
Year Ended June 30, 2018
|
| AdvisorShares Pacific Asset Enhanced Floating Rate ETF |
| AdvisorShares Ranger Equity |
| AdvisorShares | ||||||
INVESTMENT INCOME: |
|
|
|
|
|
|
|
|
|
|
|
|
| $ | 1,905 |
|
| $ | 339,568 |
|
| $ | 18,877 |
| |
|
| — |
|
|
| 878,696 |
|
|
| — |
| |
|
| 1,319,425 |
|
|
| 179,839 |
|
|
| 1,243,612 |
| |
|
| 881 |
|
|
| — |
|
|
| 1,007 |
| |
|
| — |
|
|
| — |
|
|
| — |
| |
|
| 1,322,211 |
|
|
| 1,398,103 |
|
|
| 1,263,496 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 266,525 |
|
|
| 2,339,561 |
|
|
| 201,164 |
| |
|
| 106,422 |
|
|
| 76,007 |
|
|
| 114,679 |
| |
|
| 28,186 |
|
|
| 68,689 |
|
|
| 39,278 |
| |
|
| 6,813 |
|
|
| 6,942 |
|
|
| 7,105 |
| |
|
| 9,393 |
|
|
| 11,737 |
|
|
| 7,016 |
| |
|
| 6,352 |
|
|
| 55,864 |
|
|
| 23,224 |
| |
|
| 5,450 |
|
|
| 6,990 |
|
|
| 5,939 |
| |
|
| 3,856 |
|
|
| 13,894 |
|
|
| 7,051 |
| |
|
| 16,412 |
|
|
| 10,523 |
|
|
| 17,597 |
| |
|
| 2,105 |
|
|
| 11,699 |
|
|
| 5,030 |
| |
|
| 1,579 |
|
|
| 10,558 |
|
|
| 5,051 |
| |
|
| — |
|
|
| 1,314,563 |
|
|
| — |
| |
|
| 1,732 |
|
|
| 9,801 |
|
|
| 4,348 |
| |
|
| 454,825 |
|
|
| 3,936,828 |
|
|
| 437,482 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Advisory Fees Waived/Recoupment |
|
| (146,217 | ) |
|
| — |
|
|
| (201,164 | ) |
Expense Reimbursement |
|
| — |
|
|
| — |
|
|
| (1,627 | ) |
|
| 308,608 |
|
|
| 3,936,828 |
|
|
| 234,691 |
| |
|
| 1,013,603 |
|
|
| (2,538,725 | ) |
|
| 1,028,805 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
REALIZED AND UNREALIZED GAIN (LOSS) ON: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| (45,567 | ) |
|
| — |
|
|
| 7,393 |
| |
|
| — |
|
|
| (32,016 | ) |
|
| — |
| |
|
| — |
|
|
| — |
|
|
| — |
| |
|
| — |
|
|
| (16,190,900 | ) |
|
| — |
| |
|
| — |
|
|
| — |
|
|
| — |
| |
|
| (64,016 | ) |
|
| — |
|
|
| — |
| |
|
| — |
|
|
| — |
|
|
| — |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
| (333,675 | ) |
|
| — |
|
|
| (142,203 | ) | |
|
| — |
|
|
| (175,500 | ) |
|
| — |
| |
|
| — |
|
|
| 2,792,088 |
|
|
| — |
| |
|
| — |
|
|
| — |
|
|
| — |
| |
|
| 72,007 |
|
|
| — |
|
|
| — |
| |
Net Realized and Unrealized Gain (Loss) |
|
| (371,251 | ) |
|
| (13,606,328 | ) |
|
| (134,810 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCREASE (DECREASE) IN NET ASSETS RESULTING |
| $ | 642,352 |
|
| $ | (16,145,053 | ) |
| $ | 893,995 |
|
____________
(1) Represents the period July 11, 2017 (commencement of operations) to June 30, 2018.
(2) Represents the period December 12, 2017 (commencement of operations) to June 30, 2018.
See accompanying Notes to Financial Statements.
102
ADVISORSHARES TRUST
Statements of Operations
Year Ended June 30, 2018
|
| AdvisorShares |
| AdvisorShares Wilshire | ||||||
|
|
|
|
|
|
|
|
|
|
|
$ | 381,421 |
|
| $ | 175,712 |
|
| $ | 1,989,868 |
|
| — |
|
|
| — |
|
|
| — |
|
| — |
|
|
| — |
|
|
| — |
|
| — |
|
|
| — |
|
|
| 21,190 |
|
| — |
|
|
| (2,934 | ) |
|
| (5,825 | ) |
| 381,421 |
|
|
| 172,778 |
|
|
| 2,005,233 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 231,178 |
|
|
| 43,395 |
|
|
| 1,065,425 |
|
| 75,499 |
|
|
| 4,210 |
|
|
| 76,125 |
|
| 31,823 |
|
|
| 78,707 |
|
|
| 59,226 |
|
| 6,942 |
|
|
| 8,072 |
|
|
| 8,384 |
|
| 1,284 |
|
|
| 1,882 |
|
|
| 20,145 |
|
| 5,158 |
|
|
| 11,450 |
|
|
| 27,107 |
|
| 5,325 |
|
|
| 3,819 |
|
|
| 6,692 |
|
| 2,973 |
|
|
| 1,636 |
|
|
| 11,425 |
|
| 9,220 |
|
|
| 2,582 |
|
|
| 5,553 |
|
| 1,284 |
|
|
| 542 |
|
|
| 9,139 |
|
| 1,064 |
|
|
| 559 |
|
|
| 8,461 |
|
| — |
|
|
| — |
|
|
| — |
|
| 1,291 |
|
|
| 854 |
|
|
| 8,026 |
|
| 373,041 |
|
|
| 157,708 |
|
|
| 1,305,708 |
|
|
|
|
|
|
|
|
|
|
|
|
| (56,242 | ) |
|
| (43,395 | ) |
|
| (240,281 | ) |
| — |
|
|
| (60,069 | ) |
|
| — |
|
| 316,799 |
|
|
| 54,244 |
|
|
| 1,065,427 |
|
| 64,622 |
|
|
| 118,534 |
|
|
| 939,806 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 168,208 |
|
|
| (262,559 | ) |
|
| (4,075,709 | ) |
| — |
|
|
| — |
|
|
| — |
|
| 346,715 |
|
|
| 77,119 |
|
|
| 17,644,727 |
|
| — |
|
|
| — |
|
|
| — |
|
| (84,552 | ) |
|
| — |
|
|
| — |
|
| — |
|
|
| — |
|
|
| — |
|
| 791 |
|
|
| — |
|
|
| — |
|
|
|
|
|
|
|
|
|
|
|
|
| 568,250 |
|
|
| (68,924 | ) |
|
| (9,297,731 | ) |
| — |
|
|
| — |
|
|
| — |
|
| — |
|
|
| — |
|
|
| — |
|
| 3,525 |
|
|
| — |
|
|
| — |
|
| — |
|
|
| — |
|
|
| — |
|
| 1,002,937 |
|
|
| (254,364 | ) |
|
| 4,271,287 |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
|
|
| $ | (135,830 | ) |
| $ | 5,211,093 |
|
See accompanying Notes to Financial Statements.
103
ADVISORSHARES TRUST
Statements of Changes in Net Assets
|
| AdvisorShares Cornerstone |
| AdvisorShares | |||||||||||
|
| Year ended June 30, 2018 |
| For the period July 6, 2016* to June 30, 2017 |
| Year ended |
| Year ended June 30, 2017 | |||||||
INCREASE (DECREASE) IN NET ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ | 10,049 |
|
| $ | 3,030 |
|
| $ | 1,672,098 |
|
| $ | 430,035 | |
|
| 541,262 |
|
|
| 252,170 |
|
|
| (8,747,826 | ) |
|
| 126,327 | |
|
| 465,077 |
|
|
| 514,618 |
|
|
| 2,258,827 |
|
|
| 2,996,898 | |
|
| 1,016,388 |
|
|
| 769,818 |
|
|
| (4,816,901 | ) |
|
| 3,553,260 | |
DISTRIBUTIONS TO SHAREHOLDERS FROM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (4,326 | ) |
|
| (2,606 | ) |
|
| (1,740,860 | ) |
|
| (482,641) | |
|
| (96,752 | ) |
|
| — |
|
|
| — |
|
|
| — | |
|
| (101,078 | ) |
|
| (2,606 | ) |
|
| (1,740,860 | ) |
|
| (482,641) | |
CAPITAL STOCK TRANSACTIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 4,224,145 |
|
|
| 4,274,277 |
|
|
| 199,194,895 |
|
|
| 58,828,551 | |
|
| (4,226,206 | ) |
|
| (755,165 | ) |
|
| (11,121,388 | ) |
|
| (11,362,316) | |
|
| (2,061 | ) |
|
| 3,519,112 |
|
|
| 188,073,507 |
|
|
| 47,466,235 | |
|
| 913,249 |
|
|
| 4,286,324 |
|
|
| 181,515,746 |
|
|
| 50,536,854 | |
Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 4,286,324 |
|
|
| — |
|
|
| 65,184,837 |
|
|
| 14,647,983 | |
| $ | 5,199,573 |
|
| $ | 4,286,324 |
|
| $ | 246,700,583 |
|
| $ | 65,184,837 | |
| $ | 6,873 |
|
| $ | 424 |
|
| $ | — |
|
| $ | 27,111 | |
Changes in Shares Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 136,476 |
|
|
| — |
|
|
| 1,400,000 |
|
|
| 375,000 | |
|
| 125,000 |
|
|
| 161,476 |
|
|
| 3,425,000 |
|
|
| 1,300,000 | |
|
| (125,000 | ) |
|
| (25,000 | ) |
|
| (200,000 | ) |
|
| (275,000) | |
|
| 136,476 |
|
|
| 136,476 |
|
|
| 4,625,000 |
|
|
| 1,400,000 |
See accompanying Notes to Financial Statements.
104
ADVISORSHARES TRUST
Statements of Changes in Net Assets
AdvisorShares Focused Equity ETF |
| AdvisorShares KIM Korea Equity ETF |
| AdvisorShares Madrona Domestic ETF | |||||||||||||||||
Year ended |
| For the period September 20, 2016* to June 30, 2017 |
| Year ended |
| For the period September 28, 2016* to June 30, 2017 |
| Year ended |
| Year ended | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ | 55,719 |
|
| $ | 18,058 |
|
| $ | 206,571 |
|
| $ | 159,600 |
|
| $ | 133,819 |
|
| $ | 128,712 |
| 788,582 |
|
|
| (21,046 | ) |
|
| 446,426 |
|
|
| 117,769 |
|
|
| 1,147,685 |
|
|
| 2,566,957 |
| 595,369 |
|
|
| 1,064,943 |
|
|
| (525,919 | ) |
|
| 1,403,556 |
|
|
| 1,357,738 |
|
|
| 2,357,587 |
|
|
|
|
| 1,061,955 |
|
|
| 127,078 |
|
|
| 1,680,925 |
|
|
| 2,639,242 |
|
|
| 5,053,256 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (38,174 | ) |
|
| (2,637 | ) |
|
| (244,793 | ) |
|
| (37,280 | ) |
|
| (101,602 | ) |
|
| (174,323) |
| — |
|
|
| — |
|
|
| (295,337 | ) |
|
| — |
|
|
| — |
|
|
| — |
| (38,174 | ) |
|
| (2,637 | ) |
|
| (540,130 | ) |
|
| (37,280 | ) |
|
| (101,602 | ) |
|
| (174,323) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 3,109,438 |
|
|
| 11,090,289 |
|
|
| — |
|
|
| 8,316,033 |
|
|
| 1,299,246 |
|
|
| 5,659,351 |
| (2,349,193 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (11,247,204) |
|
|
|
|
| 11,090,289 |
|
|
| — |
|
|
| 8,316,033 |
|
|
| 1,299,246 |
|
|
| (5,587,853) |
| 2,161,741 |
|
|
| 12,149,607 |
|
|
| (413,052 | ) |
|
| 9,959,678 |
|
|
| 3,836,886 |
|
|
| (708,920) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 12,149,607 |
|
|
| — |
|
|
| 9,959,678 |
|
|
| — |
|
|
| 26,736,380 |
|
|
| 27,445,300 |
$ | 14,311,348 |
|
| $ | 12,149,607 |
|
| $ | 9,546,626 |
|
| $ | 9,959,678 |
|
| $ | 30,573,266 |
|
| $ | 26,736,380 |
$ |
|
|
| $ | 15,421 |
|
| $ | 45,569 |
|
| $ | 90,430 |
|
| $ | 71,277 |
|
| $ | 39,060 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 425,000 |
|
|
| — |
|
|
| 350,000 |
|
|
| — |
|
|
| 550,000 |
|
|
| 675,000 |
| 100,000 |
|
|
| 425,000 |
|
|
| — |
|
|
| 350,000 |
|
|
| 25,000 |
|
|
| 125,000 |
| (75,000 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (250,000) |
| 450,000 |
|
|
| 425,000 |
|
|
| 350,000 |
|
|
| 350,000 |
|
|
| 575,000 |
|
|
| 550,000 |
See accompanying Notes to Financial Statements.
105
ADVISORSHARES TRUST
Statements of Changes in Net Assets
|
|
|
| AdvisorShares Madrona International ETF | |||||||||||
|
|
|
| Year ended June 30, 2017 |
| Year ended June 30, 2018 |
| Year ended June 30, 2017 | |||||||
INCREASE (DECREASE) IN NET ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ | 635,849 |
|
| $ | 598,952 |
|
| $ | 195,661 |
|
| $ | 196,314 | |
|
| (33,892 | ) |
|
| 92,189 |
|
|
| 1,438,639 |
|
|
| 1,225,746 | |
|
| (330,982 | ) |
|
| 60,524 |
|
|
| (309,457 | ) |
|
| 1,556,958 | |
|
| 270,975 |
|
|
| 751,665 |
|
|
| 1,324,843 |
|
|
| 2,979,018 | |
DISTRIBUTIONS TO SHAREHOLDERS FROM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (631,268 | ) |
|
| (591,272 | ) |
|
| (158,733 | ) |
|
| (306,516) | |
|
| (631,268 | ) |
|
| (591,272 | ) |
|
| (158,733 | ) |
|
| (306,516) | |
CAPITAL STOCK TRANSACTIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 1,299,426 |
|
|
| 1,933,092 |
|
|
| 1,551,010 |
|
|
| — | |
|
| — |
|
|
| (5,114,905 | ) |
|
| — |
|
|
| (6,432,777) | |
|
| 1,299,426 |
|
|
| (3,181,813 | ) |
|
| 1,551,010 |
|
|
| (6,432,777) | |
|
| 939,133 |
|
|
| (3,021,420 | ) |
|
| 2,717,120 |
|
|
| (3,760,275) | |
Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 17,466,212 |
|
|
| 20,487,632 |
|
|
| 10,902,092 |
|
|
| 14,662,367 | |
| $ | 18,405,345 |
|
| $ | 17,466,212 |
|
| $ | 13,619,212 |
|
| $ | 10,902,092 | |
| $ | 21,836 |
|
| $ | 17,255 |
|
| $ | 142,610 |
|
| $ | 105,682 | |
Changes in Shares Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 675,000 |
|
|
| 800,000 |
|
|
| 400,000 |
|
|
| 650,000 | |
|
| 50,000 |
|
|
| 75,000 |
|
|
| 50,000 |
|
|
| — | |
|
| — |
|
|
| (200,000 | ) |
|
| — |
|
|
| (250,000) | |
|
| 725,000 |
|
|
| 675,000 |
|
|
| 450,000 |
|
|
| 400,000 |
See accompanying Notes to Financial Statements.
106
ADVISORSHARES TRUST
Statements of Changes in Net Assets
AdvisorShares New Tech and Media ETF |
| AdvisorShares Newfleet |
| AdvisorShares Pacific Asset | |||||||||||||
For the period |
| Year ended |
| Year ended |
| Year ended |
| Year ended | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ | (86,032 | ) |
| $ | 4,692,575 |
|
| $ | 4,000,339 |
|
| $ | 1,013,603 |
|
| $ | 951,281 |
| (3,767,425 | ) |
|
| (873,781 | ) |
|
| 426,691 |
|
|
| (109,583 | ) |
|
| 40,296 |
| 1,806,286 |
|
|
| (1,599,553 | ) |
|
| 1,504,734 |
|
|
| (261,668 | ) |
|
| 280,261 |
|
| ) |
|
| 2,219,241 |
|
|
| 5,931,764 |
|
|
| 642,352 |
|
|
| 1,271,838 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| — |
|
|
| (5,480,339 | ) |
|
| (6,793,358 | ) |
|
| (932,851 | ) |
|
| (929,104) |
| — |
|
|
| (5,480,339 | ) |
|
| (6,793,358 | ) |
|
| (932,851 | ) |
|
| (929,104) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 70,494,864 |
|
|
| 17,006,336 |
|
|
| 14,641,846 |
|
|
| 2,469,990 |
|
|
| — |
| (21,274,326 | ) |
|
| (116,221,531 | ) |
|
| (17,038,617 | ) |
|
| — |
|
|
| — |
|
|
|
|
| (99,215,195 | ) |
|
| (2,396,771 | ) |
|
| 2,469,990 |
|
|
| — |
| 47,173,367 |
|
|
| (102,476,293 | ) |
|
| (3,258,365 | ) |
|
| 2,179,491 |
|
|
| 342,734 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| — |
|
|
| 258,005,123 |
|
|
| 261,263,488 |
|
|
| 27,143,067 |
|
|
| 26,800,333 |
$ | 47,173,367 |
|
| $ | 155,528,830 |
|
| $ | 258,005,123 |
|
| $ | 29,322,558 |
|
| $ | 27,143,067 |
$ |
| ) |
| $ | 66,412 |
|
| $ | 109,347 |
|
| $ | 19,995 |
|
| $ | 18,763 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| — |
|
|
| 5,300,000 |
|
|
| 5,350,000 |
|
|
| 550,000 |
|
|
| 550,000 |
| 3,200,000 |
|
|
| 350,000 |
|
|
| 300,000 |
|
|
| 50,000 |
|
|
| — |
| (975,000 | ) |
|
| (2,400,000 | ) |
|
| (350,000 | ) |
|
| — |
|
|
| — |
| 2,225,000 |
|
|
| 3,250,000 |
|
|
| 5,300,000 |
|
|
| 600,000 |
|
|
| 550,000 |
See accompanying Notes to Financial Statements.
107
ADVISORSHARES TRUST
Statements of Changes in Net Assets
|
| AdvisorShares Ranger |
| AdvisorShares Sage Core Reserves ETF | |||||||||||
|
| Year ended |
|
|
| Year ended June 30, 2018 |
| Year ended June 30, 2017 | |||||||
INCREASE (DECREASE) IN NET ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ | (2,538,725 | ) |
| $ | (3,963,360 | ) |
| $ | 1,028,805 |
|
| $ | 887,673 | |
|
| (16,222,916 | ) |
|
| (28,449,687 | ) |
|
| 7,393 |
|
|
| 13,815 | |
|
| 2,616,588 |
|
|
| (7,383,569 | ) |
|
| (142,203 | ) |
|
| 79,076 | |
|
| (16,145,053 | ) |
|
| (39,796,616 | ) |
|
| 893,995 |
|
|
| 980,564 | |
DISTRIBUTIONS TO SHAREHOLDERS FROM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| — |
|
|
| — |
|
|
| (1,031,706 | ) |
|
| (973,996) | |
|
| — |
|
|
| — |
|
|
| (1,031,706 | ) |
|
| (973,996) | |
CAPITAL STOCK TRANSACTIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 41,997,327 |
|
|
| 82,749,313 |
|
|
| — |
|
|
| 12,428,209 | |
|
| (66,769,640 | ) |
|
| (82,395,823 | ) |
|
| (32,298,232 | ) |
|
| (39,777,832) | |
|
| — |
|
|
| — |
|
|
| 3,373 |
|
|
| — | |
|
| (24,772,313 | ) |
|
| 353,490 |
|
|
| (32,294,859 | ) |
|
| (27,349,623) | |
|
| (40,917,366 | ) |
|
| (39,443,126 | ) |
|
| (32,432,570 | ) |
|
| (27,343,055) | |
Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 174,504,417 |
|
|
| 213,947,543 |
|
|
| 84,519,369 |
|
|
| 111,862,424 | |
| $ | 133,587,051 |
|
| $ | 174,504,417 |
|
| $ | 52,086,799 |
|
| $ | 84,519,369 | |
| $ | (798,572 | ) |
| $ | (1,474,035 | ) |
| $ | 16,312 |
|
| $ | 19,213 | |
Changes in Shares Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 20,375,000 |
|
|
| 20,175,000 |
|
|
| 850,000 |
|
|
| 1,125,000 | |
|
| 5,050,000 |
|
|
| 8,925,000 |
|
|
| — |
|
|
| 125,000 | |
|
| (8,300,000 | ) |
|
| (8,725,000 | ) |
|
| (325,000 | ) |
|
| (400,000) | |
|
| 17,125,000 |
|
|
| 20,375,000 |
|
|
| 525,000 |
|
|
| 850,000 |
____________
* Commencement of operations.
See accompanying Notes to Financial Statements.
108
ADVISORSHARES TRUST
Statements of Changes in Net Assets
AdvisorShares STAR |
| AdvisorShares |
| AdvisorShares | |||||||||||||
Year ended |
| Year ended |
| For the period December 12, 2017* to |
| Year ended |
| Year ended | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ | 64,622 |
|
| $ | 55,257 |
|
| $ | 118,534 |
|
| $ | 939,806 |
|
| $ | 1,121,853 |
| 431,162 |
|
|
| 664,566 |
|
|
| (185,440 | ) |
|
| 13,569,018 |
|
|
| 15,382,803 |
| 571,775 |
|
|
| 932,693 |
|
|
| (68,924 | ) |
|
| (9,297,731 | ) |
|
| 10,498,238 |
|
|
|
|
| 1,652,516 |
|
|
| (135,830 | ) |
|
| 5,211,093 |
|
|
| 27,002,894 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| — |
|
|
| (140,175 | ) |
|
| (13,431 | ) |
|
| (815,430 | ) |
|
| (1,650,149) |
| — |
|
|
| (140,175 | ) |
|
| (13,431 | ) |
|
| (815,430 | ) |
|
| (1,650,149) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 774,479 |
|
|
| 4,985,784 |
|
|
| 15,506,105 |
|
|
| 91,394,853 |
|
|
| 104,180,597 |
| (2,271,473 | ) |
|
| (6,421,545 | ) |
|
| (2,557,061 | ) |
|
| (143,155,981 | ) |
|
| (142,703,816) |
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
| ) |
|
| (1,435,761 | ) |
|
| 12,949,044 |
|
|
| (51,761,128 | ) |
|
| (38,523,219) |
| (429,435 | ) |
|
| 76,580 |
|
|
| 12,799,783 |
|
|
| (47,365,465 | ) |
|
| (13,170,474) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 17,476,511 |
|
|
| 17,399,931 |
|
|
| — |
|
|
| 142,399,520 |
|
|
| 155,569,994 |
$ | 17,047,076 |
|
| $ | 17,476,511 |
|
| $ | 12,799,783 |
|
| $ | 95,034,055 |
|
| $ | 142,399,520 |
$ |
|
|
| $ | — |
|
| $ | 105,103 |
|
| $ | 547,154 |
|
| $ | 422,778 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 600,000 |
|
|
| 650,000 |
|
|
| — |
|
|
| 2,150,000 |
|
|
| 2,800,000 |
| 25,000 |
|
|
| 175,000 |
|
|
| 600,000 |
|
|
| 1,325,000 |
|
|
| 1,675,000 |
| (75,000 | ) |
|
| (225,000 | ) |
|
| (100,000 | ) |
|
| (2,075,000 | ) |
|
| (2,325,000) |
| 550,000 |
|
|
| 600,000 |
|
|
| 500,000 |
|
|
| 1,400,000 |
|
|
| 2,150,000 |
See accompanying Notes to Financial Statements.
109
ADVISORSHARES TRUST
Financial Highlights
|
| AdvisorShares Cornerstone | ||||||
|
| Year ended |
| For the period | ||||
Selected Data for a Share of Capital Stock Outstanding |
|
|
|
|
|
|
|
|
Net Asset Value, Beginning of Year/Period |
| $ | 31.41 |
|
| $ | 25.15 |
|
Investment Operations |
|
|
|
|
|
|
|
|
Net Investment Income (Loss)(1) |
|
| 0.07 |
|
|
| 0.03 |
|
Net Realized and Unrealized Gain (Loss) |
|
| 7.36 |
|
|
| 6.26 |
|
|
| 7.43 |
|
|
| 6.29 |
| |
Distributions from Net Investment Income |
|
| (0.03 | ) |
|
| (0.03 | ) |
Distributions from Realized Capital Gains |
|
| (0.71 | ) |
|
| — |
|
|
| (0.74 | ) |
|
| (0.03 | ) | |
Net Asset Value, End of Year/Period |
| $ | 38.10 |
|
| $ | 31.41 |
|
Market Value, End of Year/Period |
| $ | 38.12 |
|
| $ | 31.40 |
|
|
|
|
|
|
|
|
|
|
Total Return |
|
|
|
|
|
|
|
|
Total Investment Return Based on Net Asset Value(4) |
|
| 23.93 | % |
|
| 25.00 | % |
Total Investment Return Based on Market(4) |
|
| 24.04 | % |
|
| 24.98 | % |
Ratios/Supplemental Data |
|
|
|
|
|
|
|
|
Net Assets, End of Year/Period (000’s omitted) |
| $ | 5,200 |
|
| $ | 4,286 |
|
Ratio to Average Net Assets of: |
|
|
|
|
|
|
|
|
Expenses, net of expense waivers and reimbursements(5) |
|
| 0.90 | % |
|
| 0.90 | % |
Expenses, prior to expense waivers and reimbursements(5) |
|
| 3.06 | % |
|
| 3.91 | % |
Net Investment Income (Loss)(5) |
|
| 0.22 | % |
|
| 0.09 | % |
Portfolio Turnover Rate(7) |
|
| 95 | % |
|
| 93 | % |
See accompanying Notes to Financial Statements.
110
ADVISORSHARES TRUST
Financial Highlights
AdvisorShares Dorsey Wright ADR ETF |
| AdvisorShares Focused Equity ETF | |||||||||||||||||||||||||
Year ended |
| Year ended |
| Year ended |
| Year ended |
| Year ended |
| Year ended |
| For the period September 20, 2016* to | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ | 46.56 |
|
| $ | 39.06 |
|
|
| $ | 38.86 |
|
| $ | 38.95 |
|
| $ | 32.65 |
|
| $ | 28.59 |
|
| $ | 25.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 0.55 |
|
|
| 0.68 |
|
|
|
| 0.17 |
|
|
| 0.34 |
|
|
| 0.18 |
|
|
| 0.13 |
|
|
| 0.06 |
|
| 6.66 |
|
|
| 7.27 |
|
|
|
| 0.23 |
|
|
| (0.20 | ) |
|
| 6.29 |
|
|
| 3.17 |
|
|
| 3.54 |
|
| 7.21 |
|
|
| 7.95 |
|
|
|
| 0.40 |
|
|
| 0.14 |
|
|
| 6.47 |
|
|
| 3.30 |
|
|
| 3.60 |
|
| (0.43 | ) |
|
| (0.45 | ) |
|
| (0.20 | ) |
|
| (0.23 | ) |
|
| (0.17 | ) |
|
| (0.09 | ) |
|
| (0.01 | ) | |
| — |
|
|
| — |
|
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
| (0.43 | ) |
|
| (0.45 | ) |
|
| (0.20 | ) |
|
| (0.23 | ) |
|
| (0.17 | ) |
|
| (0.09 | ) |
|
| (0.01 | ) | |
$ | 53.34 |
|
| $ | 46.56 |
|
|
| $ | 39.06 |
|
| $ | 38.86 |
|
| $ | 38.95 |
|
| $ | 31.80 |
|
| $ | 28.59 |
|
$ | 53.19 |
|
| $ | 46.61 |
|
|
| $ | 39.06 |
|
| $ | 38.77 |
|
| $ | 38.93 |
|
| $ | 31.79 |
|
| $ | 28.59 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 15.45 | % |
|
| 20.43 | % |
|
| 1.05 | % |
|
| 0.36 | % |
|
| 19.85 | % |
|
| 11.57 | % |
|
| 14.39 | % | |
| 15.01 | % |
|
| 20.55 | % |
|
| 1.27 | % |
|
| 0.19 | % |
|
| 19.85 | % |
|
| 11.51 | % |
|
| 14.40 | % | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ | 246,701 |
|
| $ | 65,185 |
|
|
| $ | 14,648 |
|
| $ | 15,543 |
|
| $ | 12,660 |
|
| $ | 14,311 |
|
| $ | 12,150 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 1.02 | % |
|
| 1.25 | % |
|
| 1.25 | % |
|
| 1.25 | % |
|
| 1.25 | % |
|
| 0.68 | % |
|
| 0.75 | % | |
| 0.95 | % |
|
| 1.43 | % |
|
| 1.62 | % |
|
| 1.63 | % |
|
| 1.67 | % |
|
| 1.39 | % |
|
| 2.04 | % | |
| 0.96 | % |
|
| 1.55 | % |
|
| 0.44 | % |
|
| 0.88 | % |
|
| 0.50 | % |
|
| 0.42 | % |
|
| 0.28 | % | |
| 71 | % |
|
| 108 | % | (8) |
|
| 25 | % |
|
| 27 | % |
|
| 24 | % |
|
| 26 | % |
|
| 36 | % |
See accompanying Notes to Financial Statements.
111
ADVISORSHARES TRUST
Financial Highlights
|
| AdvisorShares KIM Korea Equity ETF | ||||||
|
| Year ended |
| For the period September 28, 2016* to | ||||
Selected Data for a Share of Capital Stock Outstanding |
|
|
|
|
|
|
|
|
Net Asset Value, Beginning of Year/Period |
| $ | 28.46 |
|
| $ | 25.00 |
|
Investment Operations |
|
|
|
|
|
|
|
|
Net Investment Income (Loss)(1) |
|
| 0.59 |
|
|
| 0.56 |
|
Net Realized and Unrealized Gain (Loss) |
|
| (0.23 | ) |
|
| 3.01 |
|
Distributions of Net Realized Gains by other investment companies |
|
| — |
|
|
| — |
|
|
| 0.36 |
|
|
| 3.57 |
| |
Distributions from Net Investment Income |
|
| (0.70 | ) |
|
| (0.11 | ) |
Distributions from Realized Capital Gains |
|
| (0.84 | ) |
|
| — |
|
|
| (1.54 | ) |
|
| (0.11 | ) | |
Net Asset Value, End of Year/Period |
| $ | 27.28 |
|
| $ | 28.46 |
|
Market Value, End of Year/Period |
| $ | 27.38 |
|
| $ | 28.54 |
|
|
|
|
|
|
|
|
|
|
Total Return |
|
|
|
|
|
|
|
|
Total Investment Return Based on Net Asset Value(4) |
|
| 0.82 | % |
|
| 14.40 | % |
Total Investment Return Based on Market(4) |
|
| 0.79 | % |
|
| 14.73 | % |
Ratios/Supplemental Data |
|
|
|
|
|
|
|
|
Net Assets, End of Year/Period (000’s omitted) |
| $ | 9,547 |
|
| $ | 9,960 |
|
Ratio to Average Net Assets of: |
|
|
|
|
|
|
|
|
Expenses, net of expense waivers and reimbursements(5) |
|
| 0.99 | % |
|
| 0.99 | % |
Expenses, prior to expense waivers and reimbursements(5) |
|
| 2.58 | % |
|
| 2.37 | % |
Net Investment Income (Loss)(5) |
|
| 1.97 | % |
|
| 2.93 | % |
Portfolio Turnover Rate(7) |
|
| 98 | % |
|
| 69 | % |
See accompanying Notes to Financial Statements.
112
ADVISORSHARES TRUST
Financial Highlights
AdvisorShares Madrona Domestic ETF | ||||||||||||||||||
Year ended |
|
|
| Year ended |
| Year ended |
| Year ended | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ | 48.61 |
|
| $ | 40.66 |
|
| $ | 43.55 |
|
| $ | 41.26 |
|
| $ | 32.34 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 0.24 |
|
|
| 0.21 |
|
|
| 0.23 |
|
|
| 0.13 |
|
|
| 0.11 |
|
| 4.50 |
|
|
| 8.04 |
|
|
| (2.97 | ) |
|
| 2.30 |
|
|
| 8.91 |
|
| — |
|
|
| 0.00 | (2) |
|
| — |
|
|
| — |
|
|
| — |
|
| 4.74 |
|
|
| 8.25 |
|
|
| (2.74 | ) |
|
| 2.43 |
|
|
| 9.02 |
|
| (0.18 | ) |
|
| (0.30 | ) |
|
| (0.15 | ) |
|
| (0.14 | ) |
|
| (0.10 | ) |
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
| (0.18 | ) |
|
| (0.30 | ) |
|
| (0.15 | ) |
|
| (0.14 | ) |
|
| (0.10 | ) |
$ | 53.17 |
|
| $ | 48.61 |
|
| $ | 40.66 |
|
| $ | 43.55 |
|
| $ | 41.26 |
|
$ | 53.19 |
|
| $ | 48.62 |
|
| $ | 40.67 |
|
| $ | 43.55 |
|
| $ | 41.26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 9.76 | % |
|
| 20.36 | % |
|
| (6.29 | )% |
|
| 5.89 | % |
|
| 27.93 | % |
| 9.78 | % |
|
| 20.36 | % |
|
| (6.26 | )% |
|
| 5.89 | % |
|
| 27.93 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ | 30,573 |
|
| $ | 26,736 |
|
| $ | 27,445 |
|
| $ | 31,574 |
|
| $ | 24,755 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 1.25 | % |
|
| 1.25 | % |
|
| 1.25 | % |
|
| 1.25 | % |
|
| 1.25 | % |
| 1.37 | % |
|
| 1.37 | % |
|
| 1.32 | % |
|
| 1.37 | % |
|
| 1.42 | % |
| 0.46 | % |
|
| 0.48 | % |
|
| 0.57 | % |
|
| 0.30 | % |
|
| 0.31 | % |
| 53 | % |
|
| 62 | % |
|
| 53 | % |
|
| 15 | % |
|
| 14 | % |
See accompanying Notes to Financial Statements.
113
ADVISORSHARES TRUST
Financial Highlights
|
|
| ||||||||||||||||||
|
|
|
| Year ended June 30, 2017 |
| Year ended June 30, 2016 |
| Year ended June 30, 2015 |
| Year ended June 30, 2014 | ||||||||||
Selected Data for a Share of Capital Stock Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value, Beginning of Year/Period |
| $ | 25.88 |
|
| $ | 25.61 |
|
| $ | 24.97 |
|
| $ | 26.36 |
|
| $ | 25.05 |
|
Investment Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Investment Income (Loss)(1) |
|
| 0.90 |
|
|
| 0.81 |
|
|
| 0.75 |
|
|
| 0.74 |
|
|
| 0.86 |
|
Net Realized and Unrealized Gain (Loss) |
|
| (0.50 | ) |
|
| 0.25 |
|
|
| 0.59 |
|
|
| (1.39 | ) |
|
| 1.30 |
|
Distributions of Net Realized Gains by other investment companies |
|
| — |
|
|
| 0.01 |
|
|
| 0.06 |
|
|
| 0.04 |
|
|
| — |
|
|
| 0.40 |
|
|
| 1.07 |
|
|
| 1.40 |
|
|
| (0.61 | ) |
|
| 2.16 |
| |
Distributions from Net Investment Income |
|
| (0.89 | ) |
|
| (0.80 | ) |
|
| (0.76 | ) |
|
| (0.78 | ) |
|
| (0.85 | ) |
|
| (0.89 | ) |
|
| (0.80 | ) |
|
| (0.76 | ) |
|
| (0.78 | ) |
|
| (0.85 | ) | |
Net Asset Value, End of Year/Period |
| $ | 25.39 |
|
| $ | 25.88 |
|
| $ | 25.61 |
|
| $ | 24.97 |
|
| $ | 26.36 |
|
Market Value, End of Year/Period |
| $ | 25.38 |
|
| $ | 25.89 |
|
| $ | 25.62 |
|
| $ | 24.96 |
|
| $ | 26.42 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Return |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return Based on Net Asset |
|
| 1.55 | % |
|
| 4.23 | % |
|
| 5.76 | % |
|
| (2.37 | )% |
|
| 8.80 | % |
Total Investment Return Based on Market(4) |
|
| 1.47 | % |
|
| 4.24 | % |
|
| 5.84 | % |
|
| (2.63 | )% |
|
| 9.44 | % |
Ratios/Supplemental Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets, End of Year/Period (000’s omitted) |
| $ | 18,405 |
|
| $ | 17,466 |
|
| $ | 20,488 |
|
| $ | 28,096 |
|
| $ | 24,383 |
|
Ratio to Average Net Assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, net of expense waivers and reimbursements(5) |
|
| 0.95 | % |
|
| 0.95 | % |
|
| 0.95 | % |
|
| 0.95 | % |
|
| 0.95 | % |
Expenses, prior to expense waivers and reimbursements(5) |
|
| 1.22 | % |
|
| 1.20 | % |
|
| 1.05 | % |
|
| 0.99 | % |
|
| 1.07 | % |
Net Investment Income (Loss)(5) |
|
| 3.47 | % |
|
| 3.15 | % |
|
| 3.01 | % |
|
| 2.88 | % |
|
| 3.36 | % |
Portfolio Turnover Rate(7) |
|
| 39 | % |
|
| 21 | % |
|
| 24 | % |
|
| 34 | % |
|
| 20 | % |
See accompanying Notes to Financial Statements.
114
ADVISORSHARES TRUST
Financial Highlights
AdvisorShares Madrona International ETF |
| AdvisorShares New Tech and Media ETF | ||||||||||||||||||||
Year ended |
| Year ended |
| Year ended |
| Year ended |
| Year ended |
| For the period July 11, 2017* to June 30, 2018 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
$ | 27.26 |
|
| $ | 22.56 |
|
| $ | 27.66 |
|
| $ | 29.66 |
|
| $ | 23.97 |
|
| $ | 20.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 0.46 |
|
|
| 0.36 |
|
|
| 0.41 |
|
|
| 0.39 |
|
|
| 0.41 |
|
|
| (0.05 | ) |
| 2.91 |
|
|
| 4.85 |
|
|
| (5.17 | ) |
|
| (1.92 | ) |
|
| 5.77 |
|
|
| 1.25 |
|
|
|
|
|
| 0.00 | (2) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
|
|
|
| 5.21 |
|
|
| (4.76 | ) |
|
| (1.53 | ) |
|
| 6.18 |
|
|
| 1.20 |
|
| (0.37 | ) |
|
| (0.51 | ) |
|
| (0.34 | ) |
|
| (0.47 | ) |
|
| (0.49 | ) |
|
| — |
|
| (0.37 | ) |
|
| (0.51 | ) |
|
| (0.34 | ) |
|
| (0.47 | ) |
|
| (0.49 | ) |
|
| — |
|
$ | 30.26 |
|
| $ | 27.26 |
|
| $ | 22.56 |
|
| $ | 27.66 |
|
| $ | 29.66 |
|
| $ | 21.20 |
|
$ | 30.27 |
|
| $ | 27.25 |
|
| $ | 22.56 |
|
| $ | 27.65 |
|
| $ | 29.58 |
|
| $ | 21.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| % |
|
| 23.36 | % |
|
| (17.32 | )% |
|
| (5.06 | )% |
|
| 25.91 | % |
|
| 6.01 | % |
| 12.42 | % |
|
| 23.31 | % |
|
| (17.25 | )% |
|
| (4.82 | )% |
|
| 25.64 | % |
|
| 6.05 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ | 13,619 |
|
| $ | 10,902 |
|
| $ | 14,662 |
|
| $ | 19,365 |
|
| $ | 19,279 |
|
| $ | 47,173 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| % |
|
| 1.25 | % |
|
| 1.25 | % |
|
| 1.25 | % |
|
| 1.25 | % |
|
| 0.82 | % |
|
| % |
|
| 1.80 | % |
|
| 1.62 | % |
|
| 1.69 | % |
|
| 1.55 | % |
|
| 0.97 | % |
| 1.51 | % |
|
| 1.43 | % |
|
| 1.69 | % |
|
| 1.41 | % |
|
| 1.48 | % |
|
| (0.23 | )% |
| 78 | % |
|
| 186 | % |
|
| 196 | % |
|
| 85 | % |
|
| 182 | % |
|
| 799 | % |
See accompanying Notes to Financial Statements.
115
ADVISORSHARES TRUST
Financial Highlights
|
| AdvisorShares Newfleet Multi-Sector Income ETF | ||||||||||||||||||
|
| Year ended June 30, 2018 |
|
|
| Year ended June 30, 2016 |
| Year ended June 30, 2015 |
| Year ended June 30, 2014 | ||||||||||
Selected Data for a Share of Capital Stock Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value, Beginning of Year/Period |
| $ | 48.68 |
|
| $ | 48.83 |
|
| $ | 49.08 |
|
| $ | 49.94 |
|
| $ | 49.04 |
|
Investment Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Investment Income (Loss)(1) |
|
| 1.05 |
|
|
| 0.74 |
|
|
| 1.25 |
|
|
| 1.28 |
|
|
| 1.26 |
|
Net Realized and Unrealized Gain (Loss) |
|
| (0.62 | ) |
|
| 0.38 |
|
|
| (0.13 | ) |
|
| (0.77 | ) |
|
| 0.99 |
|
Distributions of Net Realized Gains by other investment companies |
|
| — |
|
|
| 0.00 | (2) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 0.43 |
|
|
| 1.12 |
|
|
| 1.12 |
|
|
| 0.51 |
|
|
| 2.25 |
| |
Distributions from Net Investment Income |
|
| (1.25 | ) |
|
| (1.27 | ) |
|
| (1.37 | ) |
|
| (1.37 | ) |
|
| (1.35 | ) |
|
| (1.25 | ) |
|
| (1.27 | ) |
|
| (1.37 | ) |
|
| (1.37 | ) |
|
| (1.35 | ) | |
Net Asset Value, End of Year/Period |
| $ | 47.86 |
|
| $ | 48.68 |
|
| $ | 48.83 |
|
| $ | 49.08 |
|
| $ | 49.94 |
|
Market Value, End of Year/Period |
| $ | 47.79 |
|
| $ | 48.70 |
|
| $ | 48.82 |
|
| $ | 49.04 |
|
| $ | 49.94 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Return |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return Based on Net Asset Value(4) |
|
| 0.87 | % |
|
| 2.30 | % |
|
| 2.33 | % |
|
| 1.04 | % |
|
| 4.65 | % |
Total Investment Return Based on Market(4) |
|
| 0.70 | % |
|
| 2.37 | % |
|
| 2.39 | % |
|
| 0.95 | % |
|
| 4.70 | % |
Ratios/Supplemental Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets, End of Year/Period (000’s omitted) |
| $ | 155,529 |
|
| $ | 258,005 |
|
| $ | 261,263 |
|
| $ | 215,941 |
|
| $ | 154,811 |
|
Ratio to Average Net Assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, net of expense waivers and reimbursements(5) |
|
| 0.75 | % |
|
| 0.75 | % |
|
| 0.75 | % |
|
| 0.75 | % |
|
| 0.75 | % |
Expenses, prior to expense waivers and reimbursements(5) |
|
| 0.84 | % |
|
| 0.80 | % |
|
| 0.81 | % |
|
| 0.82 | % |
|
| 0.83 | % |
Net Investment Income (Loss)(5) |
|
| 2.17 | % |
|
| 1.53 | % |
|
| 2.57 | % |
|
| 2.60 | % |
|
| 2.55 | % |
Portfolio Turnover Rate(7) |
|
| 66 | % |
|
| 63 | % |
|
| 51 | % |
|
| 49 | % |
|
| 85 | % |
See accompanying Notes to Financial Statements.
116
ADVISORSHARES TRUST
Financial Highlights
AdvisorShares Pacific Asset Enhanced Floating Rate ETF |
| AdvisorShares Ranger Equity Bear ETF | |||||||||||||||||||||||||||||||||||||
Year ended June 30, 2018 |
| Year ended June 30, 2017 |
| Year ended June 30, 2016 |
| For the period February 18, 2015* to |
| Year ended June 30, 2018 |
| Year ended June 30, 2017 |
| Year ended June 30, 2016 |
| Year ended June 30, 2015 |
| Year ended June 30, 2014 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ | 49.35 |
|
| $ | 48.73 |
|
| $ | 49.66 |
|
| $ | 50.00 |
|
| $ | 8.56 |
|
|
| $ | 10.60 |
|
|
| $ | 10.88 |
|
|
| $ | 11.78 |
|
|
| $ | 16.17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 1.78 |
|
|
| 1.73 |
|
|
| 1.74 |
|
|
| 0.62 |
|
|
| (0.13 | ) |
|
| (0.20 | ) |
|
| (0.27 | ) |
|
| (0.31 | ) |
|
| (0.38 | ) | |||||
| (0.63 | ) |
|
| 0.58 |
|
|
| (0.95 | ) |
|
| (0.38 | ) |
|
| (0.63 | ) |
|
| (1.84 | ) |
|
| (0.01 | ) |
|
| (0.59 | ) |
|
| (4.01 | ) | |||||
|
|
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
|
|
|
|
| 2.31 |
|
|
| 0.79 |
|
|
| 0.24 |
|
|
| (0.76 | ) |
|
| (2.04 | ) |
|
| (0.28 | ) |
|
| (0.90 | ) |
|
| (4.39 | ) | |||||
| (1.63 | ) |
|
| (1.69 | ) |
|
| (1.72 | ) |
|
| (0.58 | ) |
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
| (1.63 | ) |
|
| (1.69 | ) |
|
| (1.72 | ) |
|
| (0.58 | ) |
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
|
| — |
|
|
$ | 48.87 |
|
| $ | 49.35 |
|
| $ | 48.73 |
|
| $ | 49.66 |
|
| $ | 7.80 |
|
|
| $ | 8.56 |
|
|
| $ | 10.60 |
|
|
| $ | 10.88 |
|
|
| $ | 11.78 |
|
|
$ | 48.99 |
|
| $ | 49.33 |
|
| $ | 48.26 |
|
| $ | 49.78 |
|
| $ | 7.78 |
|
|
| $ | 8.55 |
|
|
| $ | 10.61 |
|
|
| $ | 10.88 |
|
|
| $ | 11.79 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 2.36 | % |
|
| 4.78 | % |
|
| 1.69 | % |
|
| 0.47 | % |
|
| (8.92 | )% |
|
| (19.24 | )% |
|
| (2.53 | )% |
|
| (7.64 | )% |
|
| (27.15 | )% | |||||
| 2.65 | % |
|
| 5.75 | % |
|
| 0.46 | % |
|
| 0.71 | % |
|
| (9.01 | )% |
|
| (19.42 | )% |
|
| (2.48 | )% |
|
| (7.72 | )% |
|
| (27.04 | )% | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ | 29,323 |
|
| $ | 27,143 |
|
| $ | 26,800 |
|
| $ | 27,312 |
|
| $ | 133,587 |
|
|
| $ | 174,504 |
|
|
| $ | 213,948 |
|
|
| $ | 128,059 |
|
|
| $ | 161,952 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 1.10 | % |
|
| 1.10 | % |
|
| 1.10 | % |
|
| 1.10 | % |
|
| 2.52 | %(6) |
|
| 2.67 | %(6) |
|
| 2.68 | %(6) |
|
| 2.80 | %(6) |
|
| 2.87 | %(6) |
| ||||
| 1.62 | % |
|
| 1.39 | % |
|
| 1.51 | % |
|
| 1.41 | % |
|
| 2.52 | %(6) |
|
| 2.67 | %(6) |
|
| 2.68 | %(6) |
|
| 2.80 | )%(6) |
|
| 2.87 | %(6) | |||||
| 3.61 | % |
|
| 3.49 | % |
|
| 3.58 | % |
|
| 3.46 | % |
|
| (1.63 | )% |
|
| (2.15 | )% |
|
| (2.49 | )% |
|
| (2.72 | )% |
|
| (2.81 | )% | |||||
| 73 | % |
|
| 52 | % |
|
| 27 | % |
|
| 102 | % |
|
| 301 | % |
|
| 245 | % |
|
| 402 | % |
|
| 419 | % |
|
| 484 | % |
See accompanying Notes to Financial Statements.
117
ADVISORSHARES TRUST
Financial Highlights
|
|
| ||||||||||||||||||
|
| Year ended June 30, 2018 |
| Year ended June 30, 2017 |
| Year ended June 30, 2016 |
| Year ended June 30, 2015 |
| For the period January 14, 2014* to | ||||||||||
Selected Data for a Share of Capital Stock Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value, Beginning of Year/Period |
| $ | 99.43 |
|
| $ | 99.43 |
|
| $ | 99.38 |
|
| $ | 99.78 |
|
| $ | 100.00 |
|
Investment Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Investment Income (Loss)(1) |
|
| 1.53 |
|
|
| 0.97 |
|
|
| 0.69 |
|
|
| 0.12 |
|
|
| 0.36 |
|
Net Realized and Unrealized Gain (Loss) |
|
| (0.16 | ) |
|
| 0.11 |
|
|
| 0.12 |
|
|
| (0.12 | ) |
|
| (0.25 | ) |
Distributions of Net Realized Gains by other investment companies |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 1.37 |
|
|
| 1.08 |
|
|
| 0.81 |
|
|
| — |
|
|
| 0.11 |
| |
Distributions from Net Investment Income |
|
| (1.59 | ) |
|
| (1.08 | ) |
|
| (0.76 | ) |
|
| (0.40 | ) |
|
| (0.33 | ) |
|
| (1.59 | ) |
|
| (1.08 | ) |
|
| (0.76 | ) |
|
| (0.40 | ) |
|
| (0.33 | ) | |
Net Asset Value, End of Year/Period |
| $ | 99.21 |
|
| $ | 99.43 |
|
| $ | 99.43 |
|
| $ | 99.38 |
|
| $ | 99.78 |
|
Market Value, End of Year/Period |
| $ | 99.19 |
|
| $ | 99.44 |
|
| $ | 99.63 |
|
| $ | 99.40 |
|
| $ | 99.80 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Return |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return Based on Net Asset Value(4) |
|
| 1.38 | % |
|
| 1.08 | % |
|
| 0.83 | % |
|
| 0.00 | %(2) |
|
| 0.11 | % |
Total Investment Return Based on Market(4) |
|
| 1.34 | % |
|
| 0.88 | % |
|
| 1.00 | % |
|
| 0.00 | %(2) |
|
| 0.13 | % |
Ratios/Supplemental Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets, End of Year/Period (000’s omitted) |
| $ | 52,087 |
|
| $ | 84,519 |
|
| $ | 111,862 |
|
| $ | 34,783 |
|
| $ | 37,419 |
|
Ratio to Average Net Assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, net of expense waivers and reimbursements(5) |
|
| 0.35 | % |
|
| 0.35 | % |
|
| 0.35 | % |
|
| 0.35 | % |
|
| 0.35 | % |
Expenses, prior to expense waivers and reimbursements(5) |
|
| 0.65 | % |
|
| 0.50 | % |
|
| 0.55 | % |
|
| 0.73 | % |
|
| 0.73 | % |
Net Investment Income (Loss)(5) |
|
| 1.53 | % |
|
| 0.97 | % |
|
| 0.70 | % |
|
| 0.12 | % |
|
| 0.78 | % |
Portfolio Turnover Rate(7) |
|
| 74 | % |
|
| 81 | % |
|
| 72 | % |
|
| 59 | % |
|
| 12 | % |
See accompanying Notes to Financial Statements.
118
ADVISORSHARES TRUST
Financial Highlights
AdvisorShares STAR Global Buy-Write ETF |
| AdvisorShares | ||||||||||||||||||||
Year ended |
| Year ended |
| Year ended |
| Year ended |
| Year ended |
| For the period December 12, 2017* to | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
$ | 29.13 |
|
| $ | 26.77 |
|
| $ | 26.60 |
|
| $ | 26.18 |
|
| $ | 23.61 |
|
| $ | 25.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 0.11 |
|
|
| 0.09 |
|
|
| 0.10 |
|
|
| 0.01 |
|
|
| (0.10 | ) |
|
| 0.23 |
|
| 1.75 |
|
|
| 2.48 |
|
|
| 0.07 |
|
|
| 0.41 |
|
|
| 2.67 |
|
|
| 0.41 |
|
|
| (2) |
|
| 0.01 |
|
|
| 0.00 | (2) |
|
| — |
|
|
| — |
|
|
| — |
|
|
|
|
|
| 2.58 |
|
|
| 0.17 |
|
|
| 0.42 |
|
|
| 2.57 |
|
|
| 0.64 |
|
| — |
|
|
| (0.22 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| (0.04 | ) |
| — |
|
|
| (0.22 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| (0.04 | ) |
$ | 30.99 |
|
| $ | 29.13 |
|
| $ | 26.77 |
|
| $ | 26.60 |
|
| $ | 26.18 |
|
| $ | 25.60 |
|
$ | 31.01 |
|
| $ | 29.13 |
|
| $ | 26.76 |
|
| $ | 26.61 |
|
| $ | 26.22 |
|
| $ | 25.68 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| % |
|
| 9.70 | % |
|
| 0.64 | % |
|
| 1.60 | % |
|
| 10.89 | % |
|
| 2.58 | % |
| 6.45 | % |
|
| 9.74 | % |
|
| 0.56 | % |
|
| 1.49 | % |
|
| 11.01 | % |
|
| 2.89 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ | 17,047 |
|
| $ | 17,477 |
|
| $ | 17,400 |
|
| $ | 26,597 |
|
| $ | 27,490 |
|
| $ | 12,800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| % |
|
| 1.85 | % |
|
| 1.85 | % |
|
| 1.85 | % |
|
| 1.85 | % |
|
| 0.75 | % |
|
| % |
|
| 2.14 | % |
|
| 1.97 | % |
|
| 1.87 | % |
|
| 1.79 | % |
|
| 2.18 | % |
| 0.38 | % |
|
| 0.32 | % |
|
| 0.38 | % |
|
| 0.03 | % |
|
| (0.42 | )% |
|
| 1.64 | % |
| 12 | % |
|
| 26 | % |
|
| 58 | % |
|
| 45 | % |
|
| 166 | % |
|
| 25 | % |
See accompanying Notes to Financial Statements.
119
ADVISORSHARES TRUST
Financial Highlights
|
| AdvisorShares Wilshire Buyback ETF | ||||||||||||||||||
|
| Year ended June 30, 2018 |
| Year ended June 30, 2017 |
| Year ended June 30, 2016 |
| Year ended June 30, 2015 |
| Year ended June 30, 2014 | ||||||||||
Selected Data for a Share of Capital Stock Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Asset Value, Beginning of Year/Period |
| $ | 66.23 |
|
| $ | 55.56 |
|
| $ | 57.05 |
|
| $ | 51.22 |
|
| $ | 41.05 |
|
Investment Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Investment Income (Loss)(1) |
|
| 0.53 |
|
|
| 0.47 |
|
|
| 0.47 |
|
|
| 0.42 |
|
|
| 0.43 |
|
Net Realized and Unrealized Gain (Loss) |
|
| 1.59 |
|
|
| 10.93 |
|
|
| (1.54 | ) |
|
| 5.75 |
|
|
| 9.89 |
|
|
| 2.12 |
|
|
| 11.40 |
|
|
| (1.07 | ) |
|
| 6.17 |
|
|
| 10.32 |
| |
Distributions from Net Investment Income |
|
| (0.47 | ) |
|
| (0.73 | ) |
|
| (0.42 | ) |
|
| (0.34 | ) |
|
| (0.15 | ) |
|
| (0.47 | ) |
|
| (0.73 | ) |
|
| (0.42 | ) |
|
| (0.34 | ) |
|
| (0.15 | ) | |
Net Asset Value, End of Year/Period |
| $ | 67.88 |
|
| $ | 66.23 |
|
| $ | 55.56 |
|
| $ | 57.05 |
|
| $ | 51.22 |
|
Market Value, End of Year/Period |
| $ | 67.88 |
|
| $ | 66.17 |
|
| $ | 55.53 |
|
| $ | 57.05 |
|
| $ | 51.25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Return |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return Based on Net |
|
| 3.15 | % |
|
| 20.55 | % |
|
| (1.87 | )% |
|
| 12.06 | % |
|
| 25.18 | % |
Total Investment Return Based on Market(4) |
|
| 3.26 | % |
|
| 20.52 | % |
|
| (1.91 | )% |
|
| 11.99 | % |
|
| 25.00 | % |
Ratios/Supplemental Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets, End of Year/Period (000’s omitted) |
| $ | 95,034 |
|
| $ | 142,400 |
|
| $ | 155,570 |
|
| $ | 242,472 |
|
| $ | 137,015 |
|
Ratio to Average Net Assets of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses, net of expense waivers and reimbursements(5) |
|
| 0.87 | % |
|
| 0.90 | % |
|
| 0.99 | % |
|
| 0.99 | % |
|
| 0.99 | % |
Expenses, prior to expense waivers and reimbursements(5) |
|
| 1.07 | % |
|
| 1.07 | % |
|
| 1.21 | % |
|
| 1.11 | % |
|
| 1.16 | % |
Net Investment Income (Loss)(5) |
|
| 0.77 | % |
|
| 0.76 | % |
|
| 0.86 | % |
|
| 0.76 | % |
|
| 0.90 | % |
Portfolio Turnover Rate(7) |
|
| 171 | % |
|
| 180 | % |
|
| 196 | % |
|
| 52 | % |
|
| 7 | % |
____________
* Commencement of operations.
(1) Based on average shares outstanding.
(2) Amount represents less than $0.005 or 0.005%.
(3) 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.
(4) Net asset value total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions 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.
(5) Ratios of periods of less than one year have been annualized. Excludes expenses incurred by the underlying investments in other funds.
(6) The expense ratio includes interest and dividend expenses on short sales of 0.84%, 1.03%, 1.05%, 1.15% and 1.22% for the periods ended June 30, 2018, June 30, 2017, June 30, 2016, June 30, 2015 and June 30, 2014 respectively.
(7) 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.
(8) During the year, the Fund underwent a sub-advisor change. As a result, investment transactions were increased during the period, which caused a higher than normal portfolio rate.
See accompanying Notes to Financial Statements.
120
ADVISORSHARES TRUST
Notes to Financial Statements
June 30, 2018
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 15 active funds (the “Funds” or “ETFs” and individually, the “Fund” or “ETF”):
Fund |
| Ticker |
| Commencement |
AdvisorShares Cornerstone Small Cap ETF |
| SCAP |
| July 6, 2016 |
AdvisorShares Dorsey Wright ADR ETF |
| AADR |
| July 21, 2010 |
AdvisorShares Focused Equity ETF |
| CWS |
| September 20, 2016 |
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 New Tech and Media ETF |
| FNG |
| July 11, 2017 |
AdvisorShares Newfleet Multi-Sector Income ETF |
| MINC |
| March 19, 2013 |
AdvisorShares Pacific Asset Enhanced Floating Rate ETF |
| FLRT |
| February 18, 2015 |
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 Vice ETF |
| ACT |
| December 12, 2017 |
AdvisorShares Wilshire Buyback ETF |
| TTFS |
| October 4, 2011 |
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, American Depositary Receipts (“ADRs”), and publicly-traded REITs.
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 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 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.
121
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2018
1. Organization – (continued)
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 Bloomberg Barclays U.S. Aggregate Bond Index. The Portfolio Manager seeks to achieve this objective by selecting a diversified portfolio of fixed income exchange-traded products (ETPs), including but not limited to, exchange-traded notes (ETNs), exchange-traded currency trusts and exchange-traded commodity pools. FWDB invests in at least 12 distinct global bond classes that cover the entire global investable bond universe. The Portfolio Manager constructs FWDB’s portfolio using a weighted allocation system based on historic yield curve analysis and a mean reversion strategy.
AdvisorShares Madrona International ETF (‘‘Madrona International ETF’’) seeks to provide long-term capital appreciation above the capital appreciation of its international benchmarks, such as the MSCI EAFE Index, the Fund’s primary benchmark, and the BNY Mellon Classic ADR Index, the Fund’s secondary benchmark. The Fund seeks to achieve this objective by selecting a portfolio primarily composed of at least 250 of the largest 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 New Tech and Media ETF (“New Tech and Media ETF”) seeks to achieve its investment objective by investing, under normal circumstances, at least 80% of its net assets (plus any borrowings for investment purposes) in securities of technology and media companies. The Fund will invest primarily in U.S. exchange-listed equity securities, including common and preferred stock and ADRs, of technology and technology-related companies, including innovative and fast-growing technologies such as social media companies and internet retail companies. The Fund will concentrate its investments in the software and services industry within the information technology sector.
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 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
122
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2018
1. Organization – (continued)
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 Vice ETF (“Vice ETF”) seeks to achieve its investment objective by investing in securities of companies that derive at least 50% of their net revenue from tobacco and alcoholic beverages and companies that derive at least 50% of their net revenue from the marijuana and hemp industry or have at least 50% of their company assets dedicated to lawful research and development of cannabis or cannabinoid-related products. The Fund will invest primarily in U.S. exchange listed equity securities, including common and preferred stock and ADRs.
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 other exchange-traded products (“ETPs”), including, but not limited to, exchange-traded notes (“ETNs”) and closed-end funds (collectively with ETFs, ETNs, and ETPs), that offer diversified exposure to various global regions, credit qualities, durations and maturity dates.
For the year ended June 30, 2018, 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 |
| % of Fund |
| Reference location | |
Ranger Equity Bear ETF |
| AdvisorShares Sage Core Reserves ETF |
| $ 44,635,500 |
| 33.4 | % |
| Contained within this report |
|
|
|
|
|
|
|
|
|
|
STAR Global Buy-Write ETF |
| SPDR S&P 500 ETF Trust |
| 8,635,928 |
| 50.7 |
|
| https://us.spdrs.com |
123
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2018
2. Summary of Significant Accounting Policies
These financial statements are prepared in accordance with U.S. generally accepted accounting principles (‘‘GAAP’’) which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
Investment Valuation
In computing each Fund’s NAV, the Fund’s securities holdings are valued based on their last readily available market price. Price information on listed securities, including Underlying ETFs, is taken from the exchange where the security is primarily traded. Securities regularly traded in an OTC market are valued at the latest quoted sales price on the primary exchange or national securities market on which such securities are traded. Securities not listed on an exchange or national securities market, or securities in which there was no last reported sales price, are valued at the most recent bid price. Other portfolio securities and assets for which market quotations are not readily available are valued based on fair value as determined in good faith by the Board of Trustees of the Trust.
Investment Transactions
Investment transactions are accounted for on the trade date. Realized gains and losses on sales of investment securities are calculated using the identified cost method. Dividend income and distributions to shareholders are recognized on the ex-dividend date and interest income and expenses are recognized on the accrual basis. Premiums and discounts are amortized over the life of the bond using the effective interest method.
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.
124
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2018
2. 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 Advisor or Sub-Advisor, 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 June 30, 2018 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 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.
125
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2018
2. Summary of Significant Accounting Policies – (continued)
The Funds are required to pledge cash or securities to the broker as collateral for the securities sold short. Collateral requirements are calculated daily based on the current market value of the short positions. Cash deposited with broker for collateral for securities sold short is recorded as an asset on the 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 amount of income or fees paid to Ranger Equity Bear ETF for the year ended June 30, 2018 was $179,839, which is included as Interest Income 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.
Term Loans
Certain Funds invests in senior secured corporate loans or bank loans, some of which may be partially or entirely unfunded and purchased on a when-issued or delayed delivery basis, that pay interest at rates which are periodically reset by reference to a base lending rate plus a spread. Bank loans generally pay interest at rates which are periodically determined by reference to a base lending rate plus a premium. All loans carry a variable rate of interest. These base lending rates are generally (i) the Prime Rate offered by one or more major United States banks, (ii) the lending rate offered by one or more European banks such as the London Interbank Offered Rate (“LIBOR”) or (iii) the Certificate of Deposit rate. Bank Loans, while exempt from registration, under the Securities Act of 1933, contain certain restrictions on resale and cannot be sold publicly. Floating rate bank loans often require prepayments from excess cash flow or permit the borrower to repay at its election. The degree to which borrowers repay, whether as a contractual requirement or at their election, cannot be predicted with accuracy. As a result, actual maturity may be substantially less than the stated maturity. Bank loans in which the Fund invests are generally readily marketable, but may be subject to certain restrictions on resale.
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.
126
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2018
2. Summary of Significant Accounting Policies – (continued)
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 as cash and non-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 money market instruments and overnight repurchase agreements, which are collateralized at 102% with securities issued or fully guaranteed by the U.S. Treasury; U.S. Government or any agency, instrumentality or authority of the U.S. government. The securities purchased with cash collateral received are reflected in the Schedule of Investments. 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 money market instruments and repurchase agreements income related to the Program earned by the Funds is disclosed on the Statements of Operations.
The value of loaned securities and related collateral outstanding at June 30, 2018 are shown in the Schedules of Investments and Statements of Assets and Liabilities. Non-cash collateral received by the Funds may not be sold or re-pledged except to satisfy a borrower default. Therefore, non-cash collateral is not included on the Fund’s Schedules of Investments or Statements of Asset and Liabilities.
127
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2018
2. Summary of Significant Accounting Policies – (continued)
|
| Gross |
| Gross Amounts Offset in the |
| Net Amounts |
| Gross Amounts not offset in the Statements of Assets and Liabilities |
|
| |||||||||||||||||||
Fund and Description |
| Amounts of Recognized Assets (Liabilities) |
| Statements |
| Statements of Assets and |
| Financial Instruments |
| Collateral Pledged/ |
| Net | |||||||||||||||||
Cornerstone Small Cap ETF |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Securities Lending |
| $ | (172,820 | ) |
| $ | — |
| $ | (172,820 | ) |
| $ | 172,820 | (1) |
| $ | — |
| $ | — | ||||||||
Repurchase Agreements |
|
| 172,820 |
|
|
| — |
|
| 172,820 |
|
|
| 172,820 | (2) |
|
| — |
|
| — | ||||||||
Dorsey Wright ADR ETF |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Securities Lending |
|
| (21,756,156 | ) |
|
| — |
|
| (21,756,156 | ) |
|
| 21,756,156 | (1) |
|
| — |
|
| — | ||||||||
Repurchase Agreements |
|
| 21,756,156 |
|
|
| — |
|
| 21,756,156 |
|
|
| 21,756,156 | (2) |
|
| — |
|
| — | ||||||||
Focused Equity ETF |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Securities Lending |
|
| (206 | ) |
|
| — |
|
| (206 | ) |
|
| 206 | (1) |
|
| — |
|
| — | ||||||||
Repurchase Agreements |
|
| 206 |
|
|
| — |
|
| 206 |
|
|
| 206 | (2) |
|
| — |
|
| — | ||||||||
Madrona Domestic ETF |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Securities Lending |
|
| (292,712 | ) |
|
| — |
|
| (292,712 | ) |
|
| 292,712 | (1) |
|
| — |
|
| — | ||||||||
Repurchase Agreements |
|
| 292,712 |
|
|
| — |
|
| 292,712 |
|
|
| 292,712 | (2) |
|
| — |
|
| — | ||||||||
Madrona Global Bond ETF |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Securities Lending |
|
| (3,602,075 | ) |
|
| — |
|
| (3,602,075 | ) |
|
| 3,602,075 | (1) |
|
| — |
|
| — | ||||||||
Repurchase Agreements |
|
| 3,602,075 |
|
|
| — |
|
| 3,602,075 |
|
|
| 3,602,075 | (2) |
|
| — |
|
| — | ||||||||
Madrona International ETF |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Securities Lending |
|
| (2,004,390 | ) |
|
| — |
|
| (2,004,390 | ) |
|
| 2,004,390 | (1) |
|
| — |
|
| — | ||||||||
Repurchase Agreements |
|
| 2,004,390 |
|
|
| — |
|
| 2,004,390 |
|
|
| 2,004,390 | (2) |
|
| — |
|
| — | ||||||||
New Tech and Media ETF |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Securities Lending |
|
| (790 | ) |
|
| — |
|
| (790 | ) |
|
| 790 | (1) |
|
| — |
|
| — | ||||||||
Repurchase Agreements |
|
| 790 |
|
|
| — |
|
| 790 |
|
|
| 790 | (2) |
|
| — |
|
| — | ||||||||
Newfleet Multi-Sector Income ETF |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Securities Lending |
|
| (1,011,180 | ) |
|
| — |
|
| (1,011,180 | ) |
|
| 1,011,180 | (1) |
|
| — |
|
| — | ||||||||
Repurchase Agreements |
|
| 1,011,180 |
|
|
| — |
|
| 1,011,180 |
|
|
| 1,011,180 | (2) |
|
| — |
|
| — | ||||||||
Pacific Asset Enhanced Floating Rate ETF |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Securities Lending |
|
| (116,424 | ) |
|
| — |
|
| (116,424 | ) |
|
| 116,424 | (1) |
|
| — |
|
| — | ||||||||
Repurchase Agreements |
|
| 116,424 |
|
|
| — |
|
| 116,424 |
|
|
| 116,424 | (2) |
|
| — |
|
| — | ||||||||
Swaps |
|
| 48,964 |
|
|
| — |
|
| 48,964 |
|
|
| — |
|
|
| — |
|
| 48,964 | ||||||||
Sage Core Reserves ETF |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Securities Lending |
|
| (144,705 | ) |
|
| — |
|
| (144,705 | ) |
|
| 144,705 | (1) |
|
| — |
|
| — | ||||||||
Repurchase Agreements |
|
| 144,705 |
|
|
| — |
|
| 144,705 |
|
|
| 144,705 | (2) |
|
| — |
|
| — | ||||||||
Wilshire Buyback ETF |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Securities Lending |
|
| (2,385,262 | ) |
|
| — |
|
| (2,385,262 | ) |
|
| 2,385,262 | (1) |
|
| — |
|
| — | ||||||||
Repurchase Agreements |
|
| 2,385,262 |
|
|
| — |
|
| 2,385,262 |
|
|
| 2,385,262 | (2) |
|
| — |
|
| — | ||||||||
____________
(1) Collateral for securities on loan is included in the Schedules of Investments and consists of Repurchase Agreements and shares of Money Market instruments.
(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.
128
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2018
2. 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.
3. Investment Advisory Agreement and Other Agreements
Investment Advisory Agreement
Each Fund has entered into an investment advisory agreement with AdvisorShares Investments, LLC (the ‘‘Advisor’’) pursuant to which the Advisor acts as the Fund’s investment advisor. 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-advisors. 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: |
Cornerstone Small Cap ETF |
| 0.65% |
Dorsey Wright ADR ETF |
| 0.75%(a) |
Focused Equity ETF |
| 0.75%(b) |
KIM Korea Equity ETF |
| 0.84% |
Madrona Domestic ETF |
| 0.80% |
Madrona Global Bond ETF |
| 0.50% |
Madrona International ETF |
| 0.80% |
New Tech and Media ETF |
| 0.60%(c) |
Newfleet Multi-Sector Income ETF |
| 0.65% |
Pacific Asset Enhanced Floating Rate ETF |
| 0.95% |
Ranger Equity Bear ETF |
| 1.50% |
Sage Core Reserves ETF |
| 0.30% |
STAR Global Buy-Write ETF |
| 1.35% |
Vice ETF |
| 0.60% |
Wilshire Buyback ETF |
| 0.90%(d) |
____________
(a) For the period February 6, 2018 to March 6, 2018, the Fund accrued and paid a reduced fee of 0.25%.
(b) The actual fee paid may vary from the contractual fee based on the Fund’s performance to its benchmark. Accordingly, the Advisor’s annual advisory fee will range from 0.65% to 0.85% of the Fund’s average daily net assets.
(c) For the period February 6, 2018 to March 6, 2018, the Fund accrued and paid a reduced fee of 0.30%.
(d) For the period February 6, 2018 to March 6, 2018, the Fund accrued and paid a reduced fee of 0.55%.
129
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2018
3. Investment Advisory Agreement and Other Agreements – (continued)
Pursuant to an investment advisory agreement between the Focused Equity ETF and the Advisor, the Advisor is entitled to receive, on a monthly basis, an annual advisory fee based on the average daily net assets of the Fund. The Advisor’s advisory fee has two components — the base fee and the performance fee adjustment. The base fee is the pre-determined rate at which the Advisor is paid when the Fund’s net performance is in line with Fund’s pre-determined performance benchmark. The base fee is subject to an upward or downward adjustment by the performance fee. If the Fund outperforms the performance benchmark, the Advisor may receive an upward fee adjustment. If the Fund underperforms the performance benchmark, the Advisor may receive a downward fee adjustment. The Advisor’s annual base fee is 0.75% of the Fund’s average daily net assets. The performance fee adjustment is derived by comparing the Fund’s performance over a rolling twelve-month period to its performance benchmark, the S&P 500 Index. The base fee is adjusted at a rate of 0.02% for every 0.25% to 0.50% of out-performance or under-performance compared to the performance benchmark, but only up to 2.00% of the performance benchmark. As a result, the maximum possible performance fee adjustment, up or down, to the base fee is 0.10%. Accordingly, the Advisor’s annual advisory fee may range from 0.65% to 0.85% of the Fund’s average daily net assets. For the year ended June 30, 2018, the performance fee adjustment was -0.07%, resulting in a net advisory fee of 0.68%.
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. 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
130
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2018
3. Investment Advisory Agreement and Other Agreements – (continued)
terminated with the approval of the Fund’s Board. The expense caps in effect for each Fund during the year ended June 30, 2018 were as follows:
Fund: |
| Rate: |
Cornerstone Small Cap ETF |
| 0.90% |
Dorsey Wright ADR ETF |
| 0.88%(a) |
Focused Equity ETF |
| 0.75%(b) |
KIM Korea Equity ETF |
| 0.99% |
Madrona Domestic ETF |
| 1.25% |
Madrona Global Bond ETF |
| 0.95% |
Madrona International ETF |
| 1.25% |
New Tech and Media ETF |
| 0.85%(c) |
Newfleet Multi-Sector Income ETF |
| 0.75% |
Pacific Asset Enhanced Floating Rate ETF |
| 1.10% |
Ranger Equity Bear ETF |
| 1.85% |
Sage Core Reserves ETF |
| 0.35% |
STAR Global Buy-Write ETF |
| 1.85% |
Vice ETF |
| 0.75% |
Wilshire Buyback ETF |
| 0.90%(d) |
____________
(a) Prior to November 21, 2017, the expense cap was 1.25%. For the period November 21, 2017 to February 6, 2018, the expense cap was 0.98%. For the period February 6, 2018 to February 12, 2018, the expense cap was 0.48%. For the period February 12, 2018 to June 5, 2018, the expense cap was 0.98%.
(b) The Advisor has contractually agreed to waive its fees and/or reimburse expenses in order to keep net expenses (excluding amounts payable pursuant to any plan adopted in accordance with Rule 12b-1, interest expense, taxes, brokerage commissions, acquired fund fees and expenses, other expenditures which are capitalized in accordance with generally accepted accounting principles, and extraordinary expenses) from exceeding a percentage of the Fund’s average daily net assets equal to the monthly calculated rate of the management fee, which can range from 0.65% to 0.85%.
(c) Prior to February 6, 2018, the expense cap was 0.85%. For the period February 6, 2018 to March 6, 2018, the expense cap was reduced to 0.55%.
(d) Prior to February 6, 2018, the expense cap was 0.90%. For the period February 6, 2018 to March 6, 2018, the expense cap was reduced to 0.55%.
For the year ended June 30, 2018, 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.
131
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2018
3. Investment Advisory Agreement and Other Agreements – (continued)
Fund: |
| Recoupment Balance: |
| Recoupment Expiration: |
| Year | |
Cornerstone Small Cap ETF |
| $ | 101,317 |
| 6/30/2020 |
| 2017 |
|
|
| 100,635 |
| 6/30/2021 |
| 2018 |
Total |
|
| 201,952 |
|
|
|
|
|
|
|
|
|
|
| |
Dorsey Wright ADR ETF |
|
| 46,865 |
| 6/30/2020 |
| 2017 |
Total |
|
| 46,865 |
|
|
|
|
|
|
|
|
|
|
|
|
Focused Equity ETF |
|
| 83,821 |
| 6/30/2020 |
| 2017 |
|
|
| 94,062 |
| 6/30/2021 |
| 2018 |
Total |
|
| 177,883 |
|
|
|
|
|
|
|
|
|
|
|
|
KIM Korea Equity ETF |
|
| 75,130 |
| 6/30/2020 |
| 2017 |
|
|
| 166,637 |
| 6/30/2021 |
| 2018 |
Total |
|
| 241,767 |
|
|
|
|
|
|
|
|
|
|
|
|
Madrona Domestic ETF |
|
| 21,361 |
| 6/30/2019 |
| 2016 |
|
|
| 32,079 |
| 6/30/2020 |
| 2017 |
|
|
| 34,760 |
| 6/30/2021 |
| 2018 |
Total |
|
| 88,200 |
|
|
|
|
|
|
|
|
|
|
|
|
Madrona Global Bond ETF |
|
| 23,218 |
| 6/30/2019 |
| 2016 |
|
|
| 46,960 |
| 6/30/2020 |
| 2017 |
|
|
| 50,120 |
| 6/30/2021 |
| 2018 |
Total |
|
| 120,298 |
|
|
|
|
|
|
|
|
|
|
|
|
Madrona International ETF |
|
| 63,601 |
| 6/30/2019 |
| 2016 |
|
|
| 75,380 |
| 6/30/2020 |
| 2017 |
|
|
| 68,268 |
| 6/30/2021 |
| 2018 |
Total |
|
| 207,249 |
|
|
|
|
|
|
|
|
|
|
|
|
New Tech and Media ETF |
|
| 56,539 |
| 6/30/2021 |
| 2018 |
Total |
|
| 56,539 |
|
|
|
|
|
|
|
|
|
|
|
|
Newfleet Multi-Sector Income ETF |
|
| 132,621 |
| 6/30/2019 |
| 2016 |
|
|
| 133,302 |
| 6/30/2020 |
| 2017 |
|
|
| 204,737 |
| 6/30/2021 |
| 2018 |
Total |
|
| 470,660 |
|
|
|
|
|
|
|
|
|
|
|
|
132
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2018
3. Investment Advisory Agreement and Other Agreements – (continued)
Fund: |
| Recoupment Balance: |
| Recoupment Expiration: |
| Year |
Pacific Asset Enhanced Floating Rate ETF |
| 108,286 |
| 6/30/2019 |
| 2016 |
|
| 79,534 |
| 6/30/2020 |
| 2017 |
|
| 146,217 |
| 6/30/2021 |
| 2018 |
Total |
| 334,037 |
|
|
|
|
|
|
|
|
|
|
|
Sage Core Reserves ETF |
| 90,545 |
| 6/30/2019 |
| 2016 |
|
| 141,505 |
| 6/30/2020 |
| 2017 |
|
| 202,791 |
| 6/30/2021 |
| 2018 |
Total |
| 434,841 |
|
|
|
|
|
|
|
|
|
|
|
STAR Global Buy-Write ETF |
| 25,820 |
| 6/30/2019 |
| 2016 |
|
| 50,044 |
| 6/30/2020 |
| 2017 |
|
| 56,242 |
| 6/30/2021 |
| 2018 |
Total |
| 132,106 |
|
|
|
|
|
|
|
|
|
|
|
Vice ETF |
| 103,464 |
| 6/30/2021 |
| 2018 |
Total |
| 103,464 |
|
|
|
|
|
|
|
|
|
|
|
Wilshire Buyback ETF |
| 454,474 |
| 6/30/2019 |
| 2016 |
|
| 244,904 |
| 6/30/2020 |
| 2017 |
|
| 240,281 |
| 6/30/2021 |
| 2018 |
Total |
| 939,659 |
|
|
|
|
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.
133
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2018
4. Creation and Redemption Transactions
The Funds issue and redeem shares on a continuous basis at NAV in groups of 25,000 shares, at minimum, called ‘‘Creation Units.’’ Except when aggregated in Creation Units, shares are not redeemable securities of a Fund. Only ‘‘Authorized Participants’’ may purchase or redeem shares directly from each Fund. An Authorized Participant is either (i) a broker-dealer or other participant in the clearing process through the Continuous Net Settlement System of the National Securities Clearing Corporation or (ii) a DTC participant and, in each case, must have executed a Participant Agreement with the Distributor. Most retail investors will not qualify as Authorized Participants or have the resources to buy and sell whole Creation Units. Therefore, they will be unable to purchase or redeem the shares directly from the Fund. Rather, most retail investors will purchase shares in the secondary market with the assistance of a broker and will be subject to customary brokerage commissions or fees.
5. Summary of Fair Value Disclosure
The Financial Accounting Standard Board’s (‘‘FASB’’) Accounting Standards Codification (‘‘ASC’’) 820-10, Fair Value Measurements and Disclosures, defines fair value, establishes an authoritative framework for measuring fair value in accordance with generally accepted accounting principles, and expands disclosure about fair value measurements. Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below:
• Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities that the company has the ability to access.
• Level 2 — Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates, and similar data.
• Level 3 — Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the company’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.
Investments that use Level 2 or Level 3 inputs may include, but are not limited to: (i) an unlisted security related to corporate actions; (ii) a restricted security (e.g., one that may not be publicly sold without registration under the Securities Act of 1933 as amended); (iii) a security whose trading has been suspended or which has been de-listed from its primary trading exchange; (iv) a security that is thinly traded; (v) a security in default or bankruptcy proceedings for which there is no current market quotation; (vi) a security affected by currency controls or restrictions; and (vii) a security affected by a significant event (e.g., an event that occurs after the close of the markets on which the security is traded but before the time as of which a Fund’s net asset value is computed and that may materially affect the value of the Fund’s investment). Examples of events that may be ‘‘significant events’’ are government actions, natural disasters, armed conflicts and acts of terrorism. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
134
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2018
5. Summary of Fair Value Disclosure – (continued)
The following is a summary of the inputs used as of June 30, 2018 in valuing the Funds’ assets and liabilities carried at fair value:
Assets |
| Cornerstone Small Cap |
| Dorsey |
| Focused |
| KIM Korea Equity |
| Madrona Domestic |
| Madrona Global Bond ETF |
| Madrona International ETF | |||||||
Level 1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange Traded Funds |
| $ | — |
| $ | — |
| $ | — |
| $ | — |
| $ | — |
| $ | 18,080,062 |
| $ | — |
Common Stocks |
|
| 5,167,993 |
|
| 245,559,796 |
|
| 14,169,151 |
|
| 9,207,915 |
|
| 30,015,912 |
|
| — |
|
| 13,204,953 |
Money Market Funds |
|
| 57,555 |
|
| 979,416 |
|
| 169,774 |
|
| — |
|
| 587,044 |
|
| 358,862 |
|
| 445,080 |
Level 2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stocks |
|
| — |
|
| — |
|
| — |
|
| 263,201 |
|
| — |
|
| — |
|
| — |
Repurchase Agreements for Securities Loaned |
|
| 172,820 |
|
| 21,756,156 |
|
| 206 |
|
| — |
|
| 292,712 |
|
| 3,602,075 |
|
| 2,004,390 |
Level 3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stocks |
|
| — |
|
| — |
|
| — |
|
| 14,548 |
|
| — |
|
| — |
|
| — |
Total |
| $ | 5,398,368 |
| $ | 268,295,368 |
| $ | 14,339,131 |
| $ | 9,485,664 |
| $ | 30,895,668 |
| $ | 22,040,999 |
| $ | 15,654,423 |
Assets |
| New Tech and Media ETF |
| Newfleet Multi-Sector Income ETF |
| Pacific Asset Enhanced Floating |
| Ranger |
| Sage Core Reserves |
| STAR |
| Vice ETF | |||||||||
Level 1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange Traded Funds |
| $ | — |
| $ | — |
| $ | 34,614 |
| $ | 44,635,500 |
|
| $ | — |
| $ | 15,948,438 |
|
| $ | — |
Common Stocks |
|
| 38,022,567 |
|
| — |
|
| — |
|
| — |
|
|
| — |
|
|
|
|
|
| 12,755,027 |
Money Market Funds |
|
| 2,634,491 |
|
| 7,209,505 |
|
| 4,067,546 |
|
| 24,598,179 |
|
|
| 633,112 |
|
| 1,115,011 |
|
|
| 9,313 |
Level 2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage Backed Securities |
|
| — |
|
| 47,003,436 |
|
| — |
|
| — |
|
|
| 3,082,396 |
|
| — |
|
|
| — |
Asset Backed Securities |
|
| — |
|
| 45,356,672 |
|
| — |
|
| — |
|
|
| 13,798,675 |
|
| — |
|
|
| — |
Corporate Bonds |
|
| — |
|
| 31,027,789 |
|
| 2,467,946 |
|
| — |
|
|
| 26,726,502 |
|
| — |
|
|
| — |
Term Loans |
|
| — |
|
| 18,180,074 |
|
| 22,685,103 |
|
| — |
|
|
| — |
|
| — |
|
|
| — |
Foreign Bonds |
|
| — |
|
| 6,894,322 |
|
| 728,929 |
|
| — |
|
|
| 4,719,005 |
|
| — |
|
|
| — |
U.S. Treasury Note |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
| 2,756,796 |
|
| — |
|
|
| — |
U.S. Treasury Bill |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
| 99,334 |
|
| — |
|
|
| — |
Repurchase Agreements for Securities Loaned |
|
| 790 |
|
| 1,011,180 |
|
| 116,424 |
|
| — |
|
|
| 144,705 |
|
| — |
|
|
| — |
Swaps† |
|
| — |
|
| — |
|
| 48,964 |
|
| — |
|
|
| — |
|
| — |
|
|
| — |
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Level 1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stocks |
|
| — |
|
| — |
|
| — |
|
| (126,223,795 | ) |
|
| — |
|
| — |
|
|
| — |
Written Options |
|
| — |
|
| — |
|
| — |
|
| — |
|
|
| — |
|
| (3,131 | ) |
|
| — |
Total |
| $ | 40,657,848 |
| $ | 156,682,978 |
| $ | 30,149,526 |
| $ | (56,990,116 | ) |
| $ | 51,960,525 |
| $ | 17,060,318 |
|
| $ | 12,764,340 |
Assets |
| Wilshire Buyback ETF | |
Level 1 |
|
|
|
Common Stocks |
| $ | 92,409,899 |
Money Market Funds |
|
| 2,576,115 |
Level 2 |
|
|
|
Repurchase Agreements for Securities Loaned |
|
| 2,385,262 |
Total |
| $ | 97,371,276 |
____________
† Derivative instruments, including swap contracts and futures, are valued at the net unrealized gain (loss) on the instrument.
For more detailed categories, see the accompanying Schedules of Investments.
There were no recognized transfers between Level 1 and Level 2.
135
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2018
5. Summary of Fair Value Disclosure – (continued)
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.
6. Derivative Instruments
The Funds have adopted authoritative standards of accounting for derivative instruments which establish enhanced disclosure requirements. These standards improve financial reporting for derivative instruments by requiring enhanced disclosures that enables investors to understand how and why a fund uses derivative instruments, how derivative instruments are accounted for and how derivative instruments affect a fund’s financial position and results of operations. The Funds use derivative instruments as part of their principal investment strategy to achieve their investment objective.
At June 30, 2018, the fair values of derivative instruments were as follows:
Statements of Assets and Liabilities:
Fund: |
| Asset Derivatives: |
| Equity Risk |
| Credit Risk | ||
Pacific Asset Enhanced Floating Rate ETF |
| Unrealized Appreciation on Swap Contracts |
| $ | — |
| $ | 48,964 |
Fund: |
| Liability Derivatives: |
| Equity Risk |
| Credit Risk | |||
STAR Global Buy-Write ETF |
| Options Written, at Value |
| $ | (3,131 | ) |
| $ | — |
Transactions in derivative instruments during the year ended June 30, 2018, were as follows:
Statements of Operations:
Fund: |
| Realized Gain (Loss): |
| Equity Risk |
| Credit Risk | ||||
Pacific Asset Enhanced Floating Rate ETF |
| Swaps |
| $ | — |
|
| $ | (64,016 | ) |
STAR Global Buy-Write ETF |
| Investments – Options Purchased |
|
| (157,309 | ) |
|
| — |
|
STAR Global Buy-Write ETF |
| Options Written |
|
| (84,552 | ) |
|
| — |
|
Fund: |
| Change in Unrealized Gain (Loss): |
| Equity Risk |
| Credit Risk | |||
Pacific Asset Enhanced Floating Rate ETF |
| Swaps |
| $ | — |
|
| $ | 72,007 |
STAR Global Buy-Write ETF |
| Investments – Options Purchased |
|
| (14,186 | ) |
|
| — |
STAR Global Buy-Write ETF |
| Options Written |
|
| 3,525 |
|
|
| — |
For the year ended June 30, 2018, the average volume of the derivatives opened by the Funds was as follows:
|
| Pacific Asset Enhanced Floating |
| STAR Global Buy-Write ETF |
Long Swap Contracts |
| 4,000,000 |
| — |
Purchased Options Contracts |
| — |
| 821 |
Written Options Contracts |
| — |
| 6,263 |
136
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2018
7. Federal Income Tax
Each Fund intends 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 (2015 − 2018), as defined by IRS statute of limitations, for all major jurisdictions, including federal tax authorities and certain state tax authorities. As of June 30, 2018, the Funds did not have a liability for any unrecognized tax benefits. The Funds have no examination in progress and is not aware of any tax positions for which it is reasonably possible that the amounts of unrecognized tax benefits will significantly change in the next twelve months.
At June 30, 2018, the approximate cost of investments, excluding 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) | ||||||||
Cornerstone Small Cap |
| $ | 4,467,187 |
| $ | 1,031,948 |
| $ | (100,767 | ) |
| $ | 931,181 |
|
| $ | — |
|
Dorsey Wright ADR ETF |
|
| 262,171,484 |
|
| 22,946,961 |
|
| (16,823,077 | ) |
|
| 6,123,884 |
|
|
| — |
|
Focused Equity ETF |
|
| 12,689,564 |
|
| 2,012,390 |
|
| (362,823 | ) |
|
| 1,649,567 |
|
|
| — |
|
KIM Korea Equity ETF |
|
| 8,701,760 |
|
| 1,296,364 |
|
| (512,460 | ) |
|
| 783,904 |
|
|
| (38 | ) |
Madrona Domestic ETF |
|
| 26,807,443 |
|
| 5,301,770 |
|
| (1,213,545 | ) |
|
| 4,088,225 |
|
|
| — |
|
Madrona Global Bond ETF |
|
| 22,143,762 |
|
| 308,027 |
|
| (410,790 | ) |
|
| (102,763 | ) |
|
| — |
|
Madrona International |
|
| 15,341,977 |
|
| 1,578,696 |
|
| (1,266,250 | ) |
|
| 312,446 |
|
|
| — |
|
New Tech and Media ETF |
|
| 39,744,835 |
|
| 1,904,251 |
|
| (991,238 | ) |
|
| 913,013 |
|
|
| — |
|
Newfleet Multi-Sector Income ETF |
|
| 157,755,888 |
|
| 370,590 |
|
| (1,443,500 | ) |
|
| (1,072,910 | ) |
|
| — |
|
Pacific Asset Enhanced Floating Rate ETF |
|
| 30,566,011 |
|
| 4,105,192 |
|
| (4,570,641 | ) |
|
| (465,449 | ) |
|
| 51,547 |
|
Ranger Equity Bear ETF |
|
| 69,341,679 |
|
| 5,122,185 |
|
| (5,230,185 | ) |
|
| (108,000 | ) |
|
| (4,661,284 | ) |
Sage Core Reserves ETF |
|
| 51,986,712 |
|
| 86,720 |
|
| (112,907 | ) |
|
| (26,187 | ) |
|
| — |
|
STAR Global Buy-Write ETF |
|
| 14,982,311 |
|
| 2,175,154 |
|
| (94,016 | ) |
|
| 2,081,138 |
|
|
| 16,484 |
|
Vice ETF |
|
| 12,865,131 |
|
| 1,020,431 |
|
| (1,121,222 | ) |
|
| (100,791 | ) |
|
| — |
|
Wilshire Buyback ETF |
|
| 98,705,010 |
|
| 4,901,010 |
|
| (6,234,744 | ) |
|
| (1,333,734 | ) |
|
| — |
|
137
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2018
7. Federal Income Tax – (continued)
At June 30, 2018, the components of distributable earnings/loss on a tax basis were as follows:
Fund |
| Undistributed Ordinary Income |
| Undistributed Long-Term Capital Gains |
| Capital Loss Carryforward |
| Timing Differences |
| Post-October/ Late-year Ordinary Deferrals |
| Net Unrealized Appreciation (Depreciation) |
| Total Earnings (Losses) | ||||||||||||
Cornerstone Small Cap ETF |
| $ | 6,839 |
| $ | — |
| $ | (261,753 | ) |
| $ | — |
|
| $ | — |
|
| $ | 931,181 |
|
| $ | 676,267 |
|
Dorsey Wright ADR ETF |
|
| — |
|
| — |
|
| (14,972,093 | ) |
|
| — |
|
|
| — |
|
|
| 6,123,884 |
|
|
| (8,848,209 | ) |
Focused Equity ETF |
|
| 133,386 |
|
| 167,315 |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 1,649,567 |
|
|
| 1,950,268 |
|
KIM Korea Equity ETF |
|
| 243,317 |
|
| 203,764 |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 783,866 |
|
|
| 1,230,947 |
|
Madrona Domestic ETF |
|
| 71,277 |
|
| — |
|
| (2,222,433 | ) |
|
| — |
|
|
| — |
|
|
| 4,088,225 |
|
|
| 1,937,069 |
|
Madrona Global Bond ETF |
|
| 21,836 |
|
| — |
|
| (945,678 | ) |
|
| — |
|
|
| — |
|
|
| (102,763 | ) |
|
| (1,026,605 | ) |
Madrona International ETF |
|
| 142,610 |
|
| — |
|
| (4,506,545 | ) |
|
| — |
|
|
| — |
|
|
| 312,446 |
|
|
| (4,051,489 | ) |
New Tech and Media ETF |
|
| — |
|
| — |
|
| (4,756,105 | ) |
|
| — |
|
|
| (24,351 | ) |
|
| 913,013 |
|
|
| (3,867,443 | ) |
Newfleet Multi-Sector Income ETF |
|
| 66,412 |
|
| — |
|
| (7,155,845 | ) |
|
| — |
|
|
| — |
|
|
| (1,072,910 | ) |
|
| (8,162,343 | ) |
Pacific Asset Enhanced Floating Rate ETF |
|
| 17,412 |
|
| — |
|
| (239,313 | ) |
|
| — |
|
|
| — |
|
|
| (413,902 | ) |
|
| (635,803 | ) |
Ranger Equity Bear ETF |
|
| — |
|
| — |
|
| (224,831,338 | ) |
|
| — |
|
|
| (798,572 | ) |
|
| (4,769,284 | ) |
|
| (230,399,194 | ) |
Sage Core Reserves ETF |
|
| 16,312 |
|
| — |
|
| (320,784 | ) |
|
| — |
|
|
| — |
|
|
| (26,187 | ) |
|
| (330,659 | ) |
STAR Global Buy-Write ETF |
|
| 64,622 |
|
| — |
|
| (492,663 | ) |
|
| (596,247 | ) |
|
| — |
|
|
| 2,097,622 |
|
|
| 1,073,334 |
|
Vice ETF |
|
| 105,103 |
|
| — |
|
| (205,960 | ) |
|
| — |
|
|
| — |
|
|
| (100,791 | ) |
|
| (201,648 | ) |
Wilshire Buyback ETF |
|
| 547,154 |
|
| — |
|
| (25,242,532 | ) |
|
| — |
|
|
| — |
|
|
| (1,333,734 | ) |
|
| (26,029,112 | ) |
The differences between book and tax basis components of net assets are primarily attributed to wash sale loss deferrals and other book/tax differences.
At June 30, 2018, the effect of permanent book/tax reclassifications resulted in increases/(decreases) to the components of net assets as follows:
Fund |
| Undistributed Net Investment Income (Loss) |
| Accumulated Net Realized Gains (Losses) |
| Paid-in Capital | ||||||
Cornerstone Small Cap ETF |
| $ | 726 |
|
| $ | (851,467 | ) |
| $ | 850,741 |
|
Dorsey Wright ADR ETF |
|
| 41,651 |
|
|
| (3,443,265 | ) |
|
| 3,401,614 |
|
Focused Equity ETF |
|
| — |
|
|
| (510,546 | ) |
|
| 510,546 |
|
KIM Korea Equity ETF |
|
| (6,639 | ) |
|
| 6,639 |
|
|
| — |
|
New Tech and Media ETF |
|
| 61,681 |
|
|
| (1,881,953 | ) |
|
| 1,820,272 |
|
Newfleet Multi-Sector Income ETF |
|
| 744,829 |
|
|
| (755,067 | ) |
|
| 10,238 |
|
Pacific Asset Enhanced Floating Rate ETF |
|
| (79,520 | ) |
|
| 79,520 |
|
|
| — |
|
Ranger Equity Bear ETF |
|
| 3,214,188 |
|
|
| (130,866 | ) |
|
| (3,083,322 | ) |
STAR Global Buy-Write ETF |
|
| — |
|
|
| (339,123 | ) |
|
| 339,123 |
|
Vice ETF |
|
| — |
|
|
| (52,387 | ) |
|
| 52,387 |
|
Wilshire Buyback ETF |
|
| — |
|
|
| (16,726,062 | ) |
|
| 16,726,062 |
|
For financial reporting purposes, capital accounts are adjusted to reflect the tax character of permanent book/tax differences. Reclassifications are primarily due to the tax treatment of net operating losses and distributions reclassifications.
138
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2018
7. Federal Income Tax – (continued)
The tax character of distributions paid during the fiscal years ended June 30, 2018 and 2017 were:
Fund |
| 2018 Ordinary Income |
| 2018 Long Term Capital Gains |
| 2017 Ordinary Income |
| 2017 Long Term Capital Gains | ||||
Cornerstone Small Cap ETF |
| $ | 87,198 |
| $ | 13,880 |
| $ | 2,606 |
| $ | — |
Dorsey Wright ADR ETF |
|
| 1,740,860 |
|
| — |
|
| 482,641 |
|
| — |
Focused Equity ETF |
|
| 38,174 |
|
| — |
|
| 2,637 |
|
| — |
KIM Korea Equity ETF |
|
| 540,130 |
|
| — |
|
| 37,280 |
|
| — |
Madrona Domestic ETF |
|
| 101,602 |
|
| — |
|
| 174,323 |
|
| — |
Madrona Global Bond ETF |
|
| 631,268 |
|
| — |
|
| 591,272 |
|
| — |
Madrona International ETF |
|
| 158,733 |
|
| — |
|
| 306,516 |
|
| — |
Newfleet Multi-Sector Income ETF |
|
| 5,480,339 |
|
| — |
|
| 6,793,358 |
|
| — |
Pacific Asset Enhanced Floating Rate ETF |
|
| 932,851 |
|
| — |
|
| 929,104 |
|
| — |
Sage Core Reserves ETF |
|
| 1,031,706 |
|
| — |
|
| 973,996 |
|
| — |
STAR Global Buy-Write ETF |
|
| — |
|
| — |
|
| 140,175 |
|
| — |
Vice ETF |
|
| 13,431 |
|
| — |
|
| — |
|
| — |
Wilshire Buyback ETF |
|
| 815,430 |
|
| — |
|
| 1,650,149 |
|
| — |
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 year. 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, 2018 are as follows:
Fund |
| Late Year Ordinary Loss Deferral |
| Short-Term Capital |
| Long-Term Capital | |||
New Tech and Media ETF |
| $ | 24,351 |
| $ | — |
| $ | — |
Ranger Equity Bear ETF |
|
| 798,572 |
|
| — |
|
| — |
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 | |||
Cornerstone Small Cap ETF |
| $ | 227,344 |
| $ | 34,409 |
| $ | 261,753 |
Dorsey Wright ADR ETF |
|
| 14,972,093 |
|
| — |
|
| 14,972,093 |
Madrona Domestic ETF |
|
| 1,126,106 |
|
| 1,096,327 |
|
| 2,222,433 |
Madrona Global Bond ETF |
|
| 356,464 |
|
| 589,214 |
|
| 945,678 |
Madrona International ETF |
|
| 4,395,457 |
|
| 111,088 |
|
| 4,506,545 |
New Tech and Media ETF |
|
| 4,756,105 |
|
| — |
|
| 4,756,105 |
Newfleet Multi-Sector Income ETF |
|
| 1,882,314 |
|
| 5,273,531 |
|
| 7,155,845 |
Pacific Asset Enhanced Floating Rate ETF |
|
| 193,385 |
|
| 45,928 |
|
| 239,313 |
Ranger Equity Bear ETF |
|
| 224,624,122 |
|
| 207,216 |
|
| 224,831,338 |
Sage Core Reserves ETF |
|
| 187,485 |
|
| 133,299 |
|
| 320,784 |
STAR Global Buy-Write ETF |
|
| — |
|
| 492,663 |
|
| 492,663 |
Vice ETF |
|
| 205,960 |
|
| — |
|
| 205,960 |
Wilshire Buyback ETF |
|
| 23,342,434 |
|
| 1,900,098 |
|
| 25,242,532 |
139
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2018
7. Federal Income Tax – (continued)
The following Funds utilized capital loss carryforwards to offset taxable gains realized during the year ended June 30, 2018:
Fund: |
| Utilized Amount: | |
Focused Equity ETF |
| $ | 5,916 |
Madrona Domestic ETF |
|
| 1,135,037 |
Madrona International ETF |
|
| 1,429,354 |
Sage Core Reserves ETF |
|
| 7,615 |
STAR Global Buy-Write ETF |
|
| 187,709 |
8. Investment Transactions
Purchases and sales of investments and securities sold short (excluding short term securities) for the year ended June 30, 2018 were as follows:
|
| Purchases |
| Sales | ||||||||||||||
Fund |
| Long Term |
| U.S. Government |
| In-Kind |
| Long Term |
| U.S. Government |
| In-Kind | ||||||
Cornerstone Small Cap ETF |
| $ | 4,362,737 |
| $ | — |
| $ | 4,194,813 |
| $ | 4,698,928 |
| $ | — |
| $ | 3,922,953 |
Dorsey Wright ADR ETF |
|
| 124,252,040 |
|
| — |
|
| 196,613,842 |
|
| 122,336,417 |
|
| — |
|
| 11,159,093 |
Focused Equity ETF |
|
| 3,379,691 |
|
| — |
|
| 3,084,930 |
|
| 3,404,708 |
|
| — |
|
| 2,339,601 |
KIM Korea Equity ETF |
|
| 10,086,565 |
|
| — |
|
| — |
|
| 10,313,559 |
|
| — |
|
| — |
Madrona Domestic ETF |
|
| 15,119,621 |
|
| — |
|
| 1,265,833 |
|
| 14,943,724 |
|
| — |
|
| — |
Madrona Global Bond ETF |
|
| 7,102,791 |
|
| — |
|
| 1,278,580 |
|
| 7,173,332 |
|
| — |
|
| — |
Madrona International ETF |
|
| 9,992,774 |
|
| — |
|
| 1,526,114 |
|
| 9,875,836 |
|
| — |
|
| — |
New Tech and Media ETF |
|
| 277,566,734 |
|
| — |
|
| 68,903,661 |
|
| 286,056,887 |
|
| — |
|
| 20,430,775 |
Newfleet Multi-Sector |
|
| 130,995,154 |
|
| 7,200,215 |
|
| 389,025 |
|
| 221,827,255 |
|
| 14,314,616 |
|
| 399,263 |
Pacific Asset Enhanced Floating Rate ETF |
|
| 21,624,869 |
|
| — |
|
| — |
|
| 17,925,784 |
|
| — |
|
| — |
Ranger Equity Bear ETF |
|
| 624,093,143 |
|
| — |
|
| — |
|
| 586,452,879 |
|
| — |
|
| — |
Sage Core Reserves ETF |
|
| 37,931,588 |
|
| 1,261,333 |
|
| — |
|
| 52,837,926 |
|
| 4,524,585 |
|
| — |
STAR Global Buy-Write ETF |
|
| 1,940,753 |
|
| — |
|
| 762,397 |
|
| 2,245,279 |
|
| — |
|
| 2,205,402 |
Vice ETF |
|
| 3,708,550 |
|
| — |
|
| 14,723,717 |
|
| 2,885,520 |
|
| — |
|
| 2,537,355 |
Wilshire Buyback ETF |
|
| 203,247,447 |
|
| — |
|
| 89,674,307 |
|
| 204,839,464 |
|
| — |
|
| 139,160,662 |
9. Risks Involved with Investing in the Funds
The Funds are subject to the principal risks described below, some or all of these risks may adversely affect the Funds’ NAV, trading price, yield, total return and ability to meet its investment objective. As with any investment, an investment in each Fund could result in a loss or the performance of each Fund could be inferior to that of other investments.
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
140
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2018
9. Risks Involved with Investing in the Funds – (continued)
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 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.
10. Subsequent Events
The Funds have evaluated subsequent events through the issuance of the financial statements and detrmined that no events have occurred that require additional disclosure.
141
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2018
11. Unaudited Tax Information
Qualified Dividend Income — Certain dividends paid by the Funds may be subject to a minimum tax rate of 15%, as provided by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The percentage of ordinary income distributions for the year ended June 30, 2018, taxed at a minimum rate of 15% were:
Fund |
| Percentage | |
Cornerstone Small Cap ETF |
| 93.02 | % |
Dorsey Wright ADR ETF |
| 78.93 |
|
Focused Equity ETF |
| 94.76 |
|
KIM Korea Equity ETF |
| 35.00 |
|
Madrona Domestic ETF |
| 100.00 |
|
Madrona Global Bond ETF |
| 15.91 |
|
Madrona International ETF |
| 69.78 |
|
New Tech and Media ETF |
| 0.00 |
|
Newfleet Multi-Sector Income ETF |
| 0.00 |
|
Pacific Asset Enhanced Floating Rate ETF |
| 0.00 |
|
Ranger Equity Bear ETF |
| 0.00 |
|
Sage Core Reserves ETF |
| 0.00 |
|
STAR Global Buy-Write ETF |
| 0.00 |
|
Vice ETF |
| 100.00 |
|
Wilshire Buyback ETF |
| 100.00 |
|
Dividends Received Deduction — For corporate shareholders, the percentage of ordinary income distributions for the year ended June 30, 2018 that qualifies for the dividends received deduction were:
Fund |
| Percentage | |
Cornerstone Small Cap ETF |
| 93.02 | % |
Dorsey Wright ADR ETF |
| 0.00 |
|
Focused Equity ETF |
| 94.76 |
|
KIM Korea Equity ETF |
| 0.00 |
|
Madrona Domestic ETF |
| 100.00 |
|
Madrona Global Bond ETF |
| 9.44 |
|
Madrona International ETF |
| 0.00 |
|
New Tech and Media ETF |
| 0.00 |
|
Newfleet Multi-Sector Income ETF |
| 0.00 |
|
Pacific Asset Enhanced Floating Rate ETF |
| 0.00 |
|
Ranger Equity Bear ETF |
| 0.00 |
|
Sage Core Reserves ETF |
| 0.00 |
|
STAR Global Buy-Write ETF |
| 0.00 |
|
Vice ETF |
| 100.00 |
|
Wilshire Buyback ETF |
| 100.00 |
|
142
ADVISORSHARES TRUST
Notes to Financial Statements (Continued)
June 30, 2018
11. Unaudited Tax Information – (continued)
Qualified Interest Income — For nonresident alien shareholders, the percentage of ordinary income distributions for the year ended June 30, 2018 that qualified interest income were:
Fund |
| Percentage | |
Cornerstone Small Cap ETF |
| 0.00 | % |
Dorsey Wright ADR ETF |
| 0.00 |
|
Focused Equity ETF |
| 0.00 |
|
KIM Korea Equity ETF |
| 0.00 |
|
Madrona Domestic ETF |
| 0.00 |
|
Madrona Global Bond ETF |
| 41.15 |
|
Madrona International ETF |
| 0.00 |
|
New Tech and Media ETF |
| 0.00 |
|
Newfleet Multi-Sector Income ETF |
| 95.19 |
|
Pacific Asset Enhanced Floating Rate ETF |
| 99.25 |
|
Ranger Equity Bear ETF |
| 0.00 |
|
Sage Core Reserves ETF |
| 100.00 |
|
STAR Global Buy-Write ETF |
| 0.00 |
|
Vice ETF |
| 0.00 |
|
Wilshire Buyback ETF |
| 0.00 |
|
The following Funds intend to elect to pass through to shareholders the credit for taxes paid to foreign countries. The gross foreign source income and foreign taxes paid are as follows:
Fund |
| Foreign Taxes Paid |
| Gross Foreign Income | ||
Cornerstone Small Cap ETF |
| $ | — |
| $ | — |
Dorsey Wright ADR ETF |
|
| — |
|
| — |
Focused Equity ETF |
|
| — |
|
| — |
KIM Korea Equity ETF |
|
| 41,958 |
|
| 352,047 |
Madrona Domestic ETF |
|
| — |
|
| — |
Madrona Global Bond ETF |
|
| — |
|
| — |
Madrona International ETF |
|
| 11,051 |
|
| 254,459 |
New Tech and Media ETF |
|
| — |
|
| — |
Newfleet Multi-Sector Income ETF |
|
| — |
|
| — |
Pacific Asset Enhanced Floating Rate ETF |
|
| — |
|
| — |
Ranger Equity Bear ETF |
|
| — |
|
| — |
Sage Core Reserves ETF |
|
| — |
|
| — |
STAR Global Buy-Write ETF |
|
| 7,185 |
|
| 83,230 |
Vice ETF |
|
| — |
|
| — |
Wilshire Buyback ETF |
|
| — |
|
| — |
143
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and Board of Trustees of AdvisorShares Trust
Opinion on the Financial Statements
We have audited the accompanying statements of assets and liabilities of Cornerstone Small Cap ETF, Dorsey Wright ADR ETF, Focused Equity ETF, KIM Korea Equity ETF, Madrona Domestic ETF, Madrona Global Bond ETF, Madrona International ETF, New Tech and Media ETF, Newfleet Multi-Sector Income ETF, Pacific Asset Enhanced Floating Rate ETF, Ranger Equity Bear ETF, Sage Core Reserves ETF, STAR Global Buy-Write ETF, Vice ETF and Wilshire Buyback ETF (the “Funds”), each a series of AdvisorShares Trust (the “Trust”), including the schedules of investments, as of June 30, 2018, the related statements of operations, the statements of changes in net assets and financial highlights for the periods indicated thereon, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Funds as of June 30, 2018, the results of their operations, the changes in their net assets, and their financial highlights for the periods indicated thereon, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We have served as the auditor of one or more of the funds in the Trust since 2009.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of the Funds’ internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of June 30, 2018 by correspondence with the custodian, agent banks and brokers; when replies were not received, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
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| TAIT, WELLER & BAKER LLP |
Philadelphia, Pennsylvania |
|
|
August 27, 2018 |
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144
Board of Trustees and Officers (Unaudited)
The business of the Trust is managed under the direction of the Trust’s Board of Trustees. The Board elects the officers of the Trust who are responsible for administering the Trust’s day-to-day operations. Each Trustee serves until his or her successor is duly elected or appointed and qualified.
The name, age, address, and principal occupations during the past five years for each Trustee and officer of the Trust is set forth below, along with the other public directorships held by the Trustees. More information about the Trustees is in the Trust’s Statement of Additional Information, which is available without charge by calling 1-877-843-3831.
Name, Address, and Date of Birth of Trustee/Officer |
| Position(s) Held with the Trust, Term of Office and Length of Time Served |
| Principal Occupation(s) |
| Number of Portfolios in Fund Complex Overseen by Trustee |
| Other Directorships Held by Trustee During Past |
Interested Trustee |
|
|
|
|
|
|
|
|
Noah Hamman* |
| Trustee (no set term);served |
| Chief Executive Officer, President, and Founder of AdvisorShares Investments, LLC (2006–present). |
| 15 |
| None |
Independent Trustees |
|
|
|
|
|
|
|
|
Elizabeth (“Betsy”) |
| Trustee (no set term);served |
| Vice-President/Chief Operating Officer of NADA Retirement Administrators, Inc. (2009–present). |
| 15 |
| None |
William G. McVay |
| Trustee (no set term); served since 2011 |
| Principal of Red Tortoise LLC (May 2017 – present); Founder and Managing Member of RDK Strategies, LLC (2007–present). |
| 15 |
| None |
Officers |
|
|
|
|
|
|
|
|
Noah Hamman |
| President (no set term); served since 2009 |
| Chief Executive Officer, President, and Founder of AdvisorShares Investments, LLC (2006–present). |
| N/A |
| N/A |
Dan Ahrens |
| Secretary & Treasurer (no set terms); served since 2009 |
| Managing Director of AdvisorShares Investments, LLC (2013–present); Chief Compliance Officer of the Trust (2009–2013); Executive Vice President of AdvisorShares Investments, LLC (2008–2013). |
| N/A |
| N/A |
Stefanie Little |
| Chief Compliance Officer (no set term); served since 2013 |
| Founder of Chenery Compliance Group, LLC (2015-present); Chief Compliance Officer of AdvisorShares Investments, LLC and the Trust (2013–present); Managing Member of SEC Compliance Alliance, LLC (2012–present), President of Little Consulting Group, Inc. (2011–present); Director of Cipperman Compliance Services (2008–2011). |
| N/A |
| N/A |
____________
* Mr. Hamman is an “interested” person of the Trust, as that term is defined in the 1940 Act, by virtue of his ownership and controlling interest in the Advisor.
145
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.
146
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
Ranger Alternative Management, L.P.
2828 N. Harwood Street, Suite 1900
Dallas, TX 75201
Newfleet Asset Management, LLC
100 Pearl Street
Hartford, CT 06103
Partnervest Advisory Services, LLC
1216 State Street, 3rd Floor
Santa Barbara, CA 93101
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
Sabretooth Advisors, LLC
2600 Philmont Avenue, Suite 215
Huntington Valley, PA 19006
Distributor
Foreside Fund Services, LLC
Three Canal Plaza, Suite 100
Portland, ME 04101
Custodian/Fund Administrator/Transfer Agent
The Bank of New York Mellon
240 Greenwich 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.
(a) | The registrant, as of the end of the period covered by this report, has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. |
(c) | There have been no amendments, during the period covered by this report, to a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics description. |
(d) | The registrant has not granted any waivers, including an implicit waiver, from a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, that relates to one or more of the items set forth in paragraph (b) of this item’s instructions. |
Item 3. Audit Committee Financial Expert.
The Registrant’s Board of Trustees has one audit committee financial expert serving on its audit committee, an “independent” Trustee, Elizabeth Piper/Bach. Under applicable securities laws, a person who is determined to be an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities that are greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and Board of Trustees in the absence of such designation or identification.
Item 4. Principal Accountant Fees and Services.
Audit Fees
(a) | The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years are $278,000 for 2018 and $263,000 for 2017. |
Audit-Related Fees
(b) | The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph (a) of this Item are $0 for 2018 and $0 for 2017. |
Tax Fees
(c) | The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning are $45,000 for 2018 and $51,000 for 2017. |
All Other Fees
(d) | The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item are $0 for 2018 and $0 for 2017. |
(e)(1) | Disclose the audit committee's pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X. |
Per Rule 2-01(c)(7)(A), the Audit Committee pre-approves all of the Audit, Audit-Related, Tax and Other Fees of the Registrant.
(e)(2) | The percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X are as follows: |
(b) N/A
(c) 100%
(d) N/A
(f) | The percentage of hours expended on the principal accountant's engagement to audit the registrant's financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant's full-time, permanent employees was less than fifty percent. |
(g) | The aggregate non-audit fees billed by the registrant's accountant for services rendered to the registrant, and rendered to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant was $0 for 2018 and $0 for 2017. |
(h) | Not applicable. |
Item 5. Audit Committee of Listed Registrants.
(a) | The Fund has a designated Audit Committee in accordance with Section 3(a)(58)(A) of the Securities and Exchange Act of 1934 (the “Exchange Act”) and the member of such committee is Elizabeth Piper/Bach and William G. McVay. |
(b) Not applicable.
Item 6. Investments.
(a) | Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form. |
(b) | Not applicable. |
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11. Controls and Procedures.
(a) | The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). |
(b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
[Note that until the date that the registrant has filed its first report on Form N-PORT (17 CFR 270.150), the registrant’s disclosures required by this Item are limited to any change in the registrant’s internal control over financial reporting that occurred during the registrant’s last fiscal quarter that has materially affected or is reasonably likely to materially affect the registrant’s internal control over financial reporting.]
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13. Exhibits.
(a)(1) | Code of ethics that is the subject of disclosure required by Item 2 is attached hereto. |
(a)(2) | Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
[Note that until the date that the registrant has filed its first report on Form N-PORT (17 CFR 270.150), in the certification required by Item 13(a)(2), the registrant’s certifying officers must certify that they have disclosed in the report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect the registrant’s internal control over financial reporting.]
(a)(3) | Not applicable. |
(a)(4) | 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 | 8/16/2018 |
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 | 8/16/2018 |
By (Signature and Title)* | /s/ Dan Ahrens | |
Dan Ahrens, Treasurer | ||
(principal financial officer) |
Date | 8/16/2018 |
* Print the name and title of each signing officer under his or her signature.