AdvisorShares Files For Legacy Long/Short & Active Foreign ETFs

september11According to a filing to the Securities and Exchange Commission dated Sept. 7, AdvisorShares Investments is planning to launch two new active exchange-traded funds. The two funds will be, WCM/BNY Mellon Focused Growth ADR ETF (AADR), and Legacy Long/Short ETF (HDGE). We have included portions of the filing below. For the full filing click: HERE

WCM / BNY Mellon Focused Growth ADR ETF (AADR)

PRINCIPAL INVESTMENT STRATEGIES
WCM Investment Management (“WCM”) seeks to achieve the Fund’s investment objective by selecting a portfolio consisting primarily of American Depositary Receipts (ADRs) included in The Bank of New York Mellon Classic ADR Index. (see page , About American Depositary Receipts, for a detailed explanation of ADRs). The Fund’s investment focus follows WCM’s core philosophy of investing in industry-leading non-US organizations, led by visionary management teams with sound business strategies. WCM believes that these companies often dominate their industry and are likely to continue that domination well into the future. WCM establishes guidelines for sector and industry emphasis and develops the portfolio of the Fund. WCM analyzes the major trends in the global economy in order to identify those economic sectors and industries that are most likely to benefit. Typical themes incorporated in their investment process include demographics, global commerce, outsourcing, the growing global middle class and the proliferation of technology. A portfolio strategy is then implemented that will best capitalize on these investment themes and subsequent expected growth of the underlying assets.

FUND INVESTMENT OBJECTIVE
The Fund’s investment objective is long-term capital appreciation above international benchmarks such as The Bank of New York Mellon Classic ADR Index, the MSCI EAFE Index and MSCI EAFE Growth Index. This investment objective may be changed by the Board of Trustees of the Trust (the “Board”) without a shareholder vote.

MORE INFORMATION ABOUT PRINCIPAL INVESTMENT STRATEGIES
The Fund is an actively managed exchange-traded fund (“ETF”) and thus does not seek to replicate the performance of a specified index. An actively managed ETF uses an active investment strategy to meet its investment objective. Accordingly, the Sub-Advisor has discretion on a daily basis to manage the Fund’s portfolio in accordance with the Fund’s investment objective.
Investment Philosophy: WCM seeks to achieve the Fund’s investment objective by selecting a portfolio consisting primarily of ADRs included in The Bank of New York Mellon Classic ADR Index. The Fund’s focus follows WCM’s core philosophy of investing in industry-leading non-US organizations, led by visionary management teams with sound business strategies. WCM believes that attractive returns can only be achieved by structuring portfolios distinct from the market indices. As a result, the Fund’s portfolio will typically have fewer than 30 companies concentrating on the best ideas developed in WCM’s investment process. The focus is on industry-leading non-US organizations, led by visionary management teams with sound business strategies. WCM believes that these companies often dominate their industry and are likely to continue that domination well into the future. Thus, when selecting equity investments, typically the minimum time horizon is 3-5 years.

Legacy Long/Short ETF

PRINCIPAL INVESTMENT STRATEGIES
The Fund is a “fund of funds,” which means that the Fund seeks to achieve its investment objective by investing primarily in other exchange-traded funds (the “Underlying ETFs”), and shares of certain exchange-traded products, including but not limited to, exchange-traded notes, exchange-traded currency trusts and exchange-traded commodities pools. The goal of the Fund is to minimize volatility while embracing risk management principles. Overall, the Fund’s investments should outperform in flat to negative market periods and could possibly underperform during periods of strong positive market performance. The Fund’s investment strategy is implementedusing multiple inter-related investment models. The investment models adjust to shifts in market volatility and result in a risk managed long, short, or flat (cash) position for investment in some or all of the following asset classes: US equity, International equity, commodities, fixed income, and real estate.

FUND INVESTMENT OBJECTIVE
The Fund seeks to achieve long-term capital appreciation with an emphasis on absolute (positive) returns, risk management and low volatility in all market conditions. The investment objective of the Fund is “non-fundamental” and may be changed by the Board of Trustees of the Trust (the “Board”).

MORE INFORMATION ABOUT PRINCIPAL INVESTMENT STRATEGIES
The Fund is an actively managed exchange-traded fund (“ETF”) and thus does not seek to replicate the performance of a specified index. An actively managed ETF uses an active investment strategy to meet its investment objective. Accordingly, the Sub-Advisor has discretion on a daily basis to manage the Fund’s portfolio in accordance with the Fund’s investment objective. The goal of the Fund is to minimize volatility while embracing risk management principles. Overall, the Fund’s investments should outperform in flat to negative market periods and could possibly underperform during periods of strong positive market performance.

 

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