advisorshares … · incremental move to cash based on momentum indicators equity dweq domestic...

For Financial Intermediary Use Only - Not for Use with the Retail Public

[email protected] advisorshares

www.advisorshares.com advisorshares

@advisorshares

1.877.843.3831

THEMATIC ETFs

EQUITY ETFs

Domestic

DWMCAdvisorShares Dorsey Wright

Micro-Cap ETF

Domestic

DWEQAdvisorShares Dorsey Wright

Equal Weight Alpha ETF

Short Domestic

DWSHAdvisorShares Dorsey Wright

Short ETF

Short Domestic

HDGEAdvisorShares Ranger

Equity Bear ETF

Global

DWAWAdvisorShares Dorsey Wright

FSM All Cap World ETF

DWUSAdvisorShares Dorsey Wright

FSM U.S. Core ETF

Domestic

CWSAdvisorShares

Focused Equity ETF

Domestic Domestic

DBLVAdvisorShares DoubleLine

Value Equity ETF

International

AADRAdvisorShares Dorsey Wright

ADR ETF

Total Return

VEGAAdvisorShares STAR Global

Buy-Write ETF

Concentrated

Diversified

Alternative

2For Financial Intermediary Use Only - Not for Use with the Retail Public

QPXAdvisorShares Q Dynamic

Growth ETF

Tactical Equity

QPTAdvisorShares Q Portfolio Blended Allocation ETF

Balanced

SENTAdvisorShares Alpha DNA

Equity Sentiment ETF

Domestic Hedged

INCOME ETFs

MULTI-ASSET ETFs

Global

VICEAdvisorShares

Vice ETF

Domestic

MSOSAdvisorShares

US Pure Cannabis ETF

Global

YOLOAdvisorShares

Pure Cannabis ETF

Yie

ld

Risk

HOLDAdvisorShares SageCore Reserves ETF

Ultra-Short Duration

FWDBAdvisorShares FolioBeyond

Smart Core Bond ETF

Global Multi-Sector

MINCAdvisorShares Newfleet

Multi-Sector ETF

Short Term Multi-Sector

AdvisorShares Dorsey Wright ADR ETFAADR focuses on traditional growth sectors and usesa technical approach to identify companies with thehighest relative strength. Relative strength investinginvolves buying securities that have appreciated inprice more than the other securities in the investmentuniverse and holding those securities until theyexperience sufficient underperformance. Various riskmanagement techniques are utilized to ensure sector,industry, and security diversification. AADR can beused in a portfolio to add a technical alpha seekingmanager in your foreign equity allocation.

StrategyBenchmark IndexAlpha ApproachRisk Mitigation

Technical, Relative StrengthMSCI EAFE IndexConcentrated, Technical Stock SelectionFully Invested

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AADR

Foreign LargeCap Growth

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AdvisorShares DoubleLine Value Equity ETFDBLV applies a differentiated approach to valueinvesting, looking beyond “classic” value strategy andlow stock prices or price-to-book ratios. Using arepeatable process, DBLV’s management empha-sizes a team approach to idea sourcing, detailed duediligence, a long-term time horizon and on-going riskmonitoring. DBLV uses fundamental analysis toscreen multiple factors for return potential and riskassessment, while also considering macroeconomicand business cycle factors. While DBLV is not limitedby market-cap, it will typically hold 30-50 larger-capU.S. traded equities.


Fundamental Value Stock SelectionRussell 1000 Value IndexConcentrated, Fundamental Stock SelectionFully Invested

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DBLV

Domestic Mid Cap Value

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AdvisorShares Focused Equity ETFCWS invests in fundamentally sound companies thathave shown consistency in their financial results anddemonstrated high earnings quality. The investmentstrategy has been employed by the portfolio manager,Eddy Elfenbein, since 2006 and is published annuallyas the Crossing Wall Street “Buy List.” As a focusedportfolio, CWS will typically look very different than atraditional benchmark like the S&P 500. CWS can beused in a portfolio to add a fundamental alpha seekingmanager in your domestic equity allocation.


Fundamental Bottom-UpS&P 500 IndexConcentrated, Fundamental Stock SelectionFully Invested

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CWS

Domestic LargeCap Blend

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AdvisorShares Dorsey Wright FSM All Cap World ETFDWAW is an actively managed, global strategy thatprovides an objective, rules-based approach to “go-anywhere” equity investing. Using Nasdaq DorseyWright's relative strength-based Fund Score Methodframework, DWAW tactically allocates its portfolio toonly the highest ranked securities in its investmentuniverse and may include exposure to domestic,international, or emerging markets; small, mid or largecaps; growth or value styles; factor- or market-basedweights; or even cash. DWAW seeks to identify andbenefit from changing leadership themes in themarket.


Technical, Relative Strength, Tactical RotationMSCI All Cap World Index (ACWI)Technical Fund SelectionIncremental move to cash based on momentum indicators

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DWAW

Global All-Cap

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AdvisorShares Dorsey Wright FSM U.S. Core ETFDWUS is an actively managed, targeted U.S. Coremarket strategy applying a technical, systematically-driven process to answer the question – "What part ofthe U.S. Large Cap equity market should be owned?"Using Nasdaq Dorsey Wright's Fund Score Methodframework, DWUS allocates its portfolio to thedomestic large cap funds in its U.S. Core investmentuniverse that demonstrate the highest-ranked relativestrength, regularly reassessing and reallocating itsholdings. DWUS's tactical strategy seeks to benefitfrom evolving factor- or market-based themes in thedomestic large cap equity market.


Technical, Relative Strength, Tactical RotationS&P 500 IndexTechnical Fund SelectionIncremental move to cash based on momentum indicators

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DWUS

Domestic LargeCap Growth

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AdvisorShares Dorsey Wright Micro-Cap ETFDWMC focuses on micro cap companies and uses atechnical approach to identify the ones with the highestrelative strength. Relative strength investing involvesbuying securities that have appreciated in price morethan others in the investment universe and holdingthose securities until they exhibit sell signals.Management seeks to spread out allocations within itsportfolio, trimming back a security’s weight when itbecomes too large. Typically, DWMC will hold 150+micro cap stocks.


Technical, Relative StrengthRussell Microcap IndexTechnical Stock SelectionFully Invested

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DWMC

Domestic MicroCap Growth

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AdvisorShares Dorsey Wright Short ETFDWSH implements a technical stock selection processto short large cap U.S. equities utilizing Dorsey’sproprietary relative strength process. DWSH will shortsell securities exhibiting the high relative weaknessfrom its universe. Relative weakness investinginvolves short selling securities that have depreciatedin price more than others in their investment universeand holding those securities until they exhibit buysignals. DWSH can be used as part of a long/shortstrategy to hedge an investor’s long domesticallytraded equity exposure.


Technical, Relative Strength, Short SellingS&P 500 IndexTechnical Stock SelectionAfter bear market trigger, moves from concentrated to broad market

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DWSH

U.S. Listed Equity

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AdvisorShares Dorsey Wright Alpha Equal Weight ETFDWEQ takes a modern targeted sector approach todomestic large cap equities. Using a technically drivenprocess, DWEQ identifies industry sectors andcompanies with the high relative strength and investsequally in the top ranked U.S. equity securities withinthe three highest ranked sectors. Regularly, DWEQwill rebalance its portfolio to maintain targetedexposure to the highest relative strength sectors andequal weighted allocation to the strongest stocks inthose sectors. DWEQ seeks to add alpha by tacticallytargeting sectors based on the successful relativestrength trend process.


Technical, Relative Strength, Tactical Sector RotationS&P 500 IndexConcentrated, Technical Sector and Stock SelectionIncremental move to cash based on momentum indicators

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DWEQ

Domestic LargeCap Growth

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AdvisorShares FolioBeyondSmart Core Bond ETFFWDB is an actively managed core bond ETF using aquantitative investing strategy to assess over 20distinct bond classes to construct its portfolio. Thesystematic model evaluates a variety of factors,including value, momentum, correlation effects andimplied volatility levels, to identify the fixed incomeallocation. Exposure to the desired fixed incomesectors will be via liquid ETFs. FWDB's goal is tooutperform the Bloomberg Barclays U.S. AggregateBond Index over time while targeting a similar level ofrisk as the index.


Systematic / QuantitativeBloomberg Barclays U.S. Aggregate Bond IndexFixed Income Sector AllocationFully Invested

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FWDB

Global Bond

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AdvisorShares Sage Core Reserves ETFHOLD provides exposure to an institutional style ultrashort duration bond strategy that will normally notexceed one year in targeted duration. HOLD will investin a broad range of investment grade debt securities,including mortgage or asset-backed rated Baa orhigher. The investment process is a top-downapproach focused on actively managing portfolioduration risk, yield curve positioning, market segmentallocation, and security selection. HOLD may serve asan alternative to cash or other short term cashequivalents with more risk.


Fundamental Bond SelectionBloomberg Barclays U.S. Treasury Bill 1-3 Month IndexDuration and Credit ManagementFully Invested

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HOLD

Ultra ShortDuration Bond

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AdvisorShares Ranger Equity Bear ETFHDGE implements a fundamental, research drivenstock selection process based on forensic accountingtechniques that short sell U.S. listed equities. HDGEseeks to identify stocks with low earnings quality oraggressive accounting designed to bolster short-termcorporate performance and may exhibit above-average downside volatility. HDGE may be used tohedge volatility and risk for similar long equityexposure, seeking positive returns in a declining equitymarket.


Fundamental Short SellingS&P 500 IndexStock SelectionDefensive Cash up to 20%

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HDGE

U.S. Listed Equity

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AdvisorShares US Pure Cannabis ETFMSOS seeks growth opportunities by offeringexposure to U.S. companies across multipleindustries engaged in the cannabis business. Theportfolio manager uses a fundamental investmentprocess to identify cannabis-related companies thatare establishing dominant positions in their respectivemarkets, while also focusing on profitability and upsidegrowth potential. Additionally, MSOS is activelymanaged and can adjust its portfolio more quickly andopportunistically than a passive index-based strategy– an important attribute in a rapidly evolving cannabismarketplace.


Fundamental Stock SelectionS&P 500 IndexThematic, Stock SelectionFully Invested

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MSOS

CannabisExposure

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AdvisorShares Newfleet Multi-Sector Income ETFMINC provides exposure to low duration fixed incomeconsistent with preservation of capital, while limitingfluctuations in net asset value due to changes ininterest rates. The portfolio manager uses an activesector rotation process to identify areas of the fixedincome market that they believe may outperform. Thefund employs a disciplined risk management approachthat seeks to minimize exposure to higher risk sectorsof the market. MINC can be used to provideconservative income to a portfolio


Fundamental Sector and Credit AnalysisBloomberg Barclays U.S. Aggregate Bond IndexSector and Security SelectionFully Invested

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MINC

Short DurationMulti-Sector

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AdvisorShares Q Dynamic Growth ETFQPX is an actively managed ETF seeking to target equitymarket upside while managing downside risk duringabnormal market volatility. Using ETFs, QPX may invest ina broad variety of equities across market cap, style orsectors and can use various fixed income categories andcommodities to manage risk. QPX applies Q Methodology’sproprietary risk management strategy to optimally allocatethe fund’s assets against a given level of risk. Normally,QPX invests primarily in equity ETFs to provide broad-market equity like returns. When market volatility is high,QPX can tactically allocate to a more defensive portfolioand seek short-term fixed income returns.


Risk Managed Quantitative Asset AllocationS&P 500 IndexTechnical Asset AllocationMay move to short-term fixed income exposure

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QPX

Tactical Equity(Semi-transparent)

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AdvisorShares Q Portfolio Blended Allocation ETFQPT is an actively managed asset allocation ETFseeking to outperform traditional balanced funds byinvesting in a variety of asset classes across market cap,duration, maturity, or credit quality. Using ETFs, QPTmay invest in domestic, foreign, broad-market, and sectorequities; government, municipal, and corporate fixedincome; and commodities. Employing Q Methodology, aproprietary risk management process, QPT seeks tostrike a balance between long term growth and marketvolatility while maximizing returns. QPT’s portfolio assetallocation is calibrated to the expected drawdown of atypical balanced fund and is optimized regularly


Risk Managed Quantitative Asset AllocationS&P 500 Index / Bloom. Barclays U.S. Agg. Bond IndexTechnical Asset Allocation Fully Invested

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QPT

Balanced (Semi-transparent)

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AdvisorShares Alpha DNA Equity Sentiment ETFSENT seeks to deliver capital appreciation from an allcap equity portfolio while mitigating losses whenmarkets turn bearish with a hedging strategy.Deploying machine learning and alternative dataanalytics, SENT's proprietary research platformanalyzes customers' digital footprints to decodesentiment which serves as a proxy for tailwinds indemand. SENT's goal is to identify companies growingfaster than Wall Street's. expectations. Becausemarkets are uncertain, SENT uses a disciplinedhedging strategy to manage downside risk and tooffset losses in a material market sell off.


Machine Learning; Assessing Digital SignalsRussell 3000 IndexStock Selection by Decoding SentimentAlways Hedged

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SENT

Domestic Hedged

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AdvisorShares Pure CannabisETFYOLO seeks growth opportunities by investing in theequities of U.S. and foreign cannabis-relatedcompanies engaging in legal business. The portfoliomanager uses a fundamental investment process toidentify cannabis-related companies across multipleindustries with dominant positions in their respectivemarkets, as well as companies in unique positions forupside growth and expansion. Additionally, the activelymanaged YOLO can adjust its portfolio more quicklythan a passive index-based strategy – an importantattribute in a rapidly evolving cannabis marketplace.



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YOLO

CannabisExposure

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AdvisorShares Vice ETFVICE offers concentrated equity exposure to globalcompanies in the alcohol, gambling, and tobaccoindustries that historically have exhibited consistent,steady growth with durable moat advantages. Theseareas of the market can be viewed as recession-resistant as consumers traditionally spend on leisureand vices in all economic environments. VICE alsoinvests in companies providing products or servicesrelated to gaming, food and beverage, restaurant andhospitality, or other vice-related consumer trends.VICE can serve as a growth equity allocation in adiversified portfolio.



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VICE

Alcohol, Gambling,Tobacco Exposure

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AdvisorShares STAR Global Buy-Write ETFVEGA is a low volatility, moderate risk global balancedportfolio that strategically allocates to the capitalmarkets, tactically weights regions, sectors, orsecurities and then employs option strategies seekingto create additional sources of income andenhancements to risk management. Over a marketcycle, the portfolio manager strives to manage theportfolio to a beta of 0.6 of the S&P 500. VEGA canserve as a complete portfolio or core holding.


Risk Managed Quantitative Asset AllocationMSCI World IndexAsset Allocation, Option PremiumDefensive Cash, Hedging, Option Overlay

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VEGA

Global AlternativeAsset Allocation

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The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock marketconditions based on the average of 500 widely held common stocks. The Russell Microcap Index isa capitalization-weighted index of 2,000 small cap and micro cap stocks that captures the smallest1,000 companies in the Russell 2000, plus 1,000 smaller U.S.-based listed stocks. The Russell 1000Value Index measures the performance of the large-cap value segment of the U.S. equity market. Itincludes those Russell 1000 companies with lower price-to-book ratios and lower expected andhistorical growth rates. The Russell 3000 Index is broad market, capitalization-weighted indexcomprised of the largest 3,000 U.S. companies and represents 98% of the investable U.S. equitymarket. The MSCI EAFE Index is an unmanaged free float-adjusted market capitalization index thatis designed to measure the equity market performance of developed markets, excluding the US &Canada. The MSCI World Index is an unmanaged free float-adjusted market capitalization index thatis designed to measure the performance of large and mid cap equities across developed marketscountries. The BNY Mellon Classic ADR Index combines the over the counter (OTC) traded ADRswith exchange-listed ADRs bringing transparency to the available universe of American DepositaryReceipts, including those issued by many of the world’s premier companies. The MSCI All CountryWorld Index (ACWI) is an unmanaged free float-adjusted market capitalization weighted index that isdesigned to measure the equity market performance of developed and emerging markets. TheBloomberg Barclays U.S. Aggregate Bond Index measures the performance of the U.S. investmentgrade bond market. The Bloomberg Barclays 1-3 Month U.S. Treasury Bill Index includes allpublicly issued zero-coupon U.S. Treasury Bills that have a remaining maturity of less than 3 monthsand more than 1 month, are rated investment grade, and have $250 million or more of outstandingface value. The ICE BofA Merrill Lynch 1-5 Year US Corporate & Government Bond Index whichtracks the performance of US dollar denominated investment grade debt publicly issued in the USdomestic market, including US Treasury, US agency, foreign government, supranational andcorporate securities, with a remaining term to final maturity less than 5 years, calculated on a totalreturn basis.

Alpha is a measure of performance on a risk-adjusted basis. Alpha takes the volatility (price risk) of afund and compares its risk-adjusted performance to a benchmark index. The excess return of the fundrelative to the return of the benchmark index is a fund’s alpha. An option is a financial derivative thatrepresents a contract sold by one party (option writer) to another party (option holder). The contractoffers the buyer the right, but not the obligation, to buy (call) or sell (put) a security or other financialasset at an agreed upon price (the strike price) during a certain period of time or on a specific date(exercise date). An investor who employs a cash-secured put writes a put contract, and at the sametime deposits in his brokerage account the full cash amount for a possible purchase of underlyingshares. The purpose of depositing this cash is to ensure that it’s available should the investor beassigned on the short put position and be obligated to purchase shares at the put's strike price. Whilethe cash is on deposit, it may generally be invested in short-term, interest-bearing instruments. A longposition is the purchase of an investment with the expectation that it will rise in value. A shortposition is the sale of a borrowed investment with the expectation that it will decline in value.

Duration measures (in years) the sensitivity of the price of a fixed-income investment to a 1% changein interest rates.

One cannot invest directly into an index.

An investment in the Funds is subject to risk, including the possible loss of principal amount invested.Derivatives, as associated with VEGA and YOLO, may be riskier and more sensitive to changes ineconomic or market conditions than other types of investments and could result in losses thatsignificantly exceed the Fund’s original investment. DWSH, HDGE and VEGA may participate inleveraged transactions to include selling securities short which creates the risk of magnified capitallosses. Under certain market conditions, short sales can increase the volatility and decrease theliquidity of certain securities or positions and may lower the Fund’s return or result in a loss. Writingand purchasing call and put options are specialized activities and entail greater than ordinaryinvestment risk when considering DWSH or VEGA. AADR may use ADRs which are subject to the riskof change in political or economic conditions and exchange rates in foreign currencies. HOLD’sinvestment in fixed income securities will change in value in response to interest rate changes andother factors, such as the perception of the issuer’s creditworthiness. Cannabis-related companies aresubject to various laws and regulations that may differ at the state/local and federal level. These lawsand regulations may (i) significantly affect a cannabis-related company’s ability to secure financing, (ii)impact the market for marijuana industry sales and services, and (iii) set limitations on marijuana use,production, transportation, and storage. In addition, cannabis-related companies are subject to therisks associated with the greater agricultural industry, including changes to or trends that affectcommodity prices, labor costs, weather conditions, and laws and regulations related to environmentalprotection, health and safety. The risks associated with each Fund include the risks associated withthe underlying ETFs, which can result in higher volatility, and are detailed in each Fund’s prospectus.These Funds may not be suitable for all investors.

Shares are bought and sold at market price (closing price) not NAV and are not individually redeemedfrom the Fund. Market price returns are based on the midpoint of the bid/ask spread at 4:00pmEastern Time (when NAV is normally determined), and do not represent the return you would receiveif you traded at other times. Holdings and allocations are subject to risks and to change.

Before investing you should carefully consider the Fund’s investment objectives, risks,charges and expenses. This and other information is in the prospectus, a copy of which maybe obtained by visiting the Fund’s website at www.AdvisorShares.com. Please read theprospectus carefully before you invest. Foreside Fund Services, LLC, distributor.

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[email protected] advisorshares

www.advisorshares.com advisorshares

@advisorshares

1.877.843.3831

For Financial Intermediary Use Only - Not for Use with the Retail Public

advisorshares … · incremental move to cash based on momentum indicators equity dweq domestic...

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