SURE - AdvisorShares Insiders Advantage ETF

Find the Insider Advantage

Invest in firms reducing their equity float through buyback programs and insider buying

Symbol Exchange Inception Date CUSIP
SURE NYSE Arca 10/4/2011 00768Y818
<strong>About the ETF</strong>

Following a core investment philosophy that corporate insiders know their companies the best, the AdvisorShares Insider Advantage ETF (SURE) seeks to invest in the equities of companies actively trying to reduce their public equity float through well-executed stock buyback programs and corporate insider buying. Not only do buybacks and insider buying demonstrate that executives may see relative value in the firm’s stock, they also could create favorable shareholder market conditions through the reduction of publicly available shares (float shrink). SURE selects holdings using an active, quantitative, multi-factor model to identify companies shrinking float, lowering leverage, growing free cash flow, and providing dividends. SURE’s holdings are equal-weighted and reconstituted/rebalanced monthly.

<strong>What Is Float Shrink?</strong>

Public equity float refers to the portion of a company’s outstanding shares that is in the hands of public investors – as opposed to company officers, directors, or stockholders that hold controlling interests – and are available for trading in the open market. The float is calculated by subtracting restricted shares from outstanding shares. Float shrink occurs when there is a reduction of publicly available shares. 

Buybacks – action taken by a corporation to repurchase its own shares from the marketplace – are the most common cause of float shrink today and one of two ways a company can distribute profits to shareholders. Dividend payments are the second form. While firms may implement both, since 1997, share buybacks have surpassed cash dividends to become the dominant form of corporate payout in the U.S. Not only do buybacks avoid a stock price penalty if a firm cuts or ends a program, like dividends are subject to, but also provide a positive market impact by improving earnings and cash flow per share.

Insider buying – the purchase of shares in a corporation by a board member, officer, or executive within that company (i.e., corporate insider) – is another way that float shrink occurs. It may be a strong indicator that insiders are becoming more optimistic about the company’s future. Buying by corporate insiders is legal, highly regulated, publicly disclosed, and different from “insider trading” – the illegal act of buying or selling stock by someone who has privileged, non-public information about a company.

 

<strong>Why Invest?</strong>
  • Investing with Corporate Insiders – Top firm executives know more about the company’s fundamentals than the investing public. These insiders can influence their company’s share price by timing equity issuance and repurchase to the firm’s advantage. A well-implemented buyback program reduces publicly available shares and can increase the stock’s price. Additionally, corporate insider buying can be a bullish signal that the stock is underpriced by the market.
  • Conscientious Float Shrink – Investing solely in stock buybacks can be problematic. SURE employs a comprehensive, multi-factor strategy to assess if a firm is reducing their float in a well-planned manner, analyzing free cash flow, profitability, leverage reduction, dividend yield, net buybacks and insider buying.
  • Disciplined Growth – A quantitative, actively managed, equal weight investment strategy focused on long-term growth. 

 

<strong>Key Attributes</strong>
  • Float Shrink – Corporate insiders have better information than the investing public and know their companies the best. Stock buyback programs and insider buying not only show that corporate insiders see relative value in investing in their own equity securities, but also create favorable market conditions for shareholders by reducing the number of publicly traded shares and improving earnings and cash flow per share. 
  • Extensive Stock Screening – SURE’s portfolio manager screens approximately 3,000 companies and looks for the following characteristics when selecting stocks: shareholder-friendliness (measured by float shrink and dividend yield), profitability (measured by free cash flow), solid balance sheet (measured by outstanding leverage).
  • Equal Weight Investing – In a market-cap weighted portfolio, a small number of the largest companies receive the heaviest allocations and overvalued components are overweighted relative to undervalued components. By contrast, with an equal weight strategy, the bias to the largest companies is removed; a buy low, sell high discipline is regularly followed with periodic rebalancing; and reallocation to undervalued stocks may provide the opportunity to capture long-term equity performance.
  • Actively Managed ETF Structure – SURE is different from other buyback-focused investments that follow passive, market-cap weighted indexes and only reconstitute annually. SURE re-evaluates its investable universe and existing holdings monthly – adding or removing stocks and returning each security to an equal-weight allocation – allowing SURE to react more quickly to changes in buyback programs, acquisition announcements, etc. An ETF structure allows for better tax efficiency than mutual funds or than investing in the underlying stocks directly.
<strong>Where Can SURE Fit in a Traditional Portfolio?</strong>

SURE can serve as a thematic investment or a complement to a dividend investing or market-cap weighted core strategy.

<strong>About the Portfolio Strategist</strong>

Minyi Chen, Portfolio Strategist

Minyi Chen, CFA is the founder and CEO of Qubed Capital, a registered investment advisor founded in 2015 and based in Oakland, California. For over a decade, Mr. Chen has been providing quantitative financial research and analysis along with proprietary investment models to both retail and institutional investors. In the past, Mr. Chen has served as a portfolio manager of the AdvisorShares TrimTabs Float Shrink ETF (ticker: TTFS) and the TrimTabs International Free-Cash-Flow ETF (ticker: FCFI).

 

 

SURE Overview 

Get a quick and easy introduction to the SURE ETF.

 

SURE Overview

  Get a quick and easy introduction to the SURE ETF.

Fund

Price History

Fund Data

3/27/2024
NAV $116.39
Change $1.54
Shares Outstanding 430,000
Assets Under Management $50,048,649.59

 

 

 

 

Market Data

3/27/2024
Closing Price $116.32
Close Change $1.39
Volume 0

Regulatory Data

3/27/2024
Premium Discount $0.000
30-Day Median bid-ask Spread 0
Premium/Discount Historical Data | NAV Historical Data | Daily Premium/Discount Historical Data

Shares are bought and sold at market price (closing price) not NAV and are not individually redeemed from the Fund. Market price returns are based on the midpoint of the bid/ask spread at 4:00 pm Eastern Time (when NAV is normally determined), and do not represent the return you would receive if you traded at other times.

FUND

Characteristics

As of 2/29/2024

SURE Market Capitalization

Source: Morningstar & AdvisorShares

SURE Sector Allocation

FUND

Performance

As of 2/29/2024

  NAV Market Price Return Russell 1000 Value Russell 3000 Index
1 Month 5.50 5.44 3.69 5.41
3 Months 13.07 13.26 9.55 12.23
YTD 6.12 6.06 3.80 6.58
1 Year 19.90 19.88 14.01 28.60
3 Years 10.81 10.91 8.41 9.90
5 Years 12.57 12.65 9.38 13.94
Since Inception (10/04/2011, Annualized) 13.43 13.43 12.12 14.79

As of 12/31/2023

  NAV Market Price Return Russell 1000 Value Russell 3000 Index
1 Month 6.55 6.79 5.54 5.31
3 Months 11.48 11.52 9.50 12.07
YTD 23.44 23.50 11.46 25.94
1 Year 23.44 23.50 11.46 25.94
3 Years 10.44 10.57 8.86 8.53
5 Years 13.43 13.56 10.91 15.16
Since Inception (10/04/2011, Annualized) 13.07 13.07 10.64 12.62

As of 2/29/2024

  NAV Market Price Return Russell 1000 Value Russell 3000 Index
1 Month 5.50 5.44 3.69 5.41
3 Months 13.07 13.26 9.55 12.23
YTD 6.12 6.06 3.80 6.58
1 Year 19.90 19.88 14.01 28.60
Since 9/1/2022, Annualized 19.93 20.15 19.77 11.93

Performance data quoted represents past performance and is no guarantee of future results. All Fund data and performance data quoted is believed to be accurate, and unless otherwise stated, is sourced from the Fund administrator, the Advisor’s or Sub-Advisor’s proprietary data, and Morningstar. 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. Returns less than one year are not annualized.

*On September 1, 2022, the AdvisorShares DoubleLine Value Equity ETF (the “Predecessor Fund”) was renamed the AdvisorShares Insider Advantage ETF. The Predecessor Fund had different portfolio managers and investment strategy than the AdvisorShares Insider Advantage ETF. Performance prior to September 1, 2022 reflects the Fund’s performance prior to the change in manager and investment strategy and may not be indicative of the Fund’s performance under the new manager and revised investment strategy. Performance since September 1, 2022 reflects actual  AdvisorShares Insider Advantage ETF performance.

Performance data quoted represents past performance and is no guarantee of future results. All Fund data and performance data quoted is believed to be accurate, and unless otherwise stated, is sourced from the Fund administrator, the Advisor’s or Sub-Advisor’s proprietary data, and Morningstar. 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. Returns less than one year are not annualized. One cannot invest directly in an index. The Russell 1000 Index represents the top 1000 companies by market capitalization in the United States. The index is a subset of the Russell 3000 Index. The Russell 3000 Index is broad market, capitalization-weighted index comprised of the largest 3,000 U.S. companies and represents 98% of the investable U.S. equity market. 

Fund

Holdings

As of

Excel    CSV

Date Account Symbol Stock Ticker Security ID Security Description Shares Share Price Market Value Portfolio Weight Asset Group
03/27/2024 SURE VST 92840M102 VISTRA CORP 12,619.00 68.3 861,877.70 1.72% S
LRCX 512807108 LAM RESEARCH CORP 629 965.67 607,406.43 1.21% S
CSL 142339100 CARLISLE COS INC 1,562.00 388.62 607,024.44 1.21% S
KLAC 482480100 KLA CORP 862 696.87 600,701.94 1.20% S
EXP 26969P108 EAGLE MATERIALS INC 2,200.00 269.13 592,086.00 1.18% S
HLT 43300A203 HILTON WORLDWIDE HOLDINGS IN 2,736.00 214.34 586,434.24 1.17% S
WIRE 292562105 ENCORE WIRE CORP 2,314.00 253.19 585,881.66 1.17% S
AXP 025816109 AMERICAN EXPRESS CO 2,570.00 227.75 585,317.50 1.17% S
NRG 629377508 NRG ENERGY INC 8,700.00 66.62 579,594.00 1.16% S
PHM 745867101 PULTEGROUP INC 4,879.00 118.01 575,770.79 1.15% S
MTG 552848103 MGIC INVESTMENT CORP 25,878.00 22.13 572,680.14 1.14% S
MGY 559663109 MAGNOLIA OIL & GAS CORP - A 22,400.00 25.53 571,872.00 1.14% S
EBAY 278642103 EBAY INC 10,900.00 51.92 565,928.00 1.13% S
GFF 398433102 GRIFFON CORP 7,762.00 72.75 564,685.50 1.13% S
IBP 45780R101 INSTALLED BUILDING PRODUCTS 2,200.00 255.38 561,836.00 1.12% S
MRO 565849106 MARATHON OIL CORP 20,200.00 27.71 559,742.00 1.12% S
HCA 40412C101 HCA HEALTHCARE INC 1,680.00 331.69 557,239.20 1.11% S
AWI 04247X102 ARMSTRONG WORLD INDUSTRIES 4,400.00 124.47 547,668.00 1.09% S
MUR 626717102 MURPHY OIL CORP 12,100.00 45.11 545,831.00 1.09% S
MPC 56585A102 MARATHON PETROLEUM CORP 2,742.00 196.99 540,146.58 1.08% S
MUSA 626755102 MURPHY USA INC 1,292.00 417.06 538,841.52 1.08% S
CI 125523100 THE CIGNA GROUP 1,483.00 363.34 538,833.22 1.08% S
CBT 127055101 CABOT CORP 5,864.00 91.85 538,608.40 1.08% S
NUE 670346105 NUCOR CORP 2,711.00 198.56 538,296.16 1.08% S
NSP 45778Q107 INSPERITY INC 4,900.00 108.57 531,993.00 1.06% S
SHW 824348106 SHERWIN-WILLIAMS CO/THE 1,532.00 346.89 531,435.48 1.06% S
DD 26614N102 DUPONT DE NEMOURS INC 6,900.00 76.5 527,850.00 1.05% S
VLO 91913Y100 VALERO ENERGY CORP 3,143.00 167.81 527,426.83 1.05% S
MATX 57686G105 MATSON INC 4,694.00 111.17 521,831.98 1.04% S
HIG 416515104 HARTFORD FINANCIAL SVCS GRP 5,100.00 102.3 521,730.00 1.04% S
SEM 81619Q105 SELECT MEDICAL HOLDINGS CORP 17,600.00 29.45 518,320.00 1.04% S
MAR 571903202 MARRIOTT INTERNATIONAL -CL A 2,044.00 253.56 518,276.64 1.04% S
WU 959802109 WESTERN UNION CO 37,800.00 13.71 518,238.00 1.04% S
WNC 929566107 WABASH NATIONAL CORP 17,600.00 29.43 517,968.00 1.04% S
MLKN 600544100 MILLERKNOLL INC 16,900.00 30.53 515,957.00 1.03% S
PRI 74164M108 PRIMERICA INC 2,004.00 256.18 513,384.72 1.03% S
RSG 760759100 REPUBLIC SERVICES INC 2,669.00 191.52 511,166.88 1.02% S
STLD 858119100 STEEL DYNAMICS INC 3,450.00 146.99 507,115.50 1.01% S
RS 759509102 RELIANCE INC 1,500.00 336.9 505,350.00 1.01% S
PBF 69318G106 PBF ENERGY INC-CLASS A 8,975.00 56.08 503,318.00 1.01% S
SYF 87165B103 SYNCHRONY FINANCIAL 11,900.00 42.28 503,132.00 1.01% S
AMG 008252108 AFFILIATED MANAGERS GROUP 3,000.00 166.36 499,080.00 1.00% S
LPLA 50212V100 LPL FINANCIAL HOLDINGS INC 1,900.00 262.59 498,921.00 1.00% S
POOL 73278L105 POOL CORP 1,200.00 414.62 497,544.00 0.99% S
LII 526107107 LENNOX INTERNATIONAL INC 1,020.00 486.68 496,413.60 0.99% S
VRTS 92828Q109 VIRTUS INVESTMENT PARTNERS 2,000.00 247.61 495,220.00 0.99% S
TPX 88023U101 TEMPUR SEALY INTERNATIONAL I 8,800.00 56.23 494,824.00 0.99% S
MSI 620076307 MOTOROLA SOLUTIONS INC 1,400.00 353.41 494,774.00 0.99% S
META 30303M102 META PLATFORMS INC-CLASS A 1,000.00 493.86 493,860.00 0.99% S
UFPI 90278Q108 UFP INDUSTRIES INC 4,053.00 121.79 493,614.87 0.99% S
PSX 718546104 PHILLIPS 66 3,100.00 158.96 492,776.00 0.98% S
CL 194162103 COLGATE-PALMOLIVE CO 5,476.00 89.95 492,566.20 0.98% S
COR 03073E105 CENCORA INC 2,000.00 244.64 489,280.00 0.98% S
HST 44107P104 HOST HOTELS & RESORTS INC 23,700.00 20.61 488,457.00 0.98% S
ASH 044186104 ASHLAND INC 5,000.00 97.61 488,050.00 0.98% S
RTX 75513E101 RTX CORP 5,000.00 97.45 487,250.00 0.97% S
LBRT 53115L104 LIBERTY ENERGY INC 23,900.00 20.34 486,126.00 0.97% S
OC 690742101 OWENS CORNING 2,900.00 167.21 484,909.00 0.97% S
KFRC 493732101 KFORCE INC 6,900.00 69.97 482,793.00 0.96% S
MAS 574599106 MASCO CORP 6,200.00 77.85 482,670.00 0.96% S
MCRI 609027107 MONARCH CASINO & RESORT INC 6,500.00 74.17 482,105.00 0.96% S
DHI 23331A109 DR HORTON INC 2,966.00 162.05 480,640.30 0.96% S
FBIN 34964C106 FORTUNE BRANDS INNOVATIONS I 5,700.00 84.15 479,655.00 0.96% S
CHH 169905106 CHOICE HOTELS INTL INC 3,750.00 127.9 479,625.00 0.96% S
SM 78454L100 SM ENERGY CO 9,772.00 49.05 479,316.60 0.96% S
RPRX G7709Q104 ROYALTY PHARMA PLC- CL A 15,717.00 30.45 478,582.65 0.96% FS
BYD 103304101 BOYD GAMING CORP 7,200.00 66.42 478,224.00 0.96% S
SEIC 784117103 SEI INVESTMENTS COMPANY 6,592.00 72.02 474,755.84 0.95% S
MRK 58933Y105 MERCK & CO. INC. 3,600.00 131.75 474,300.00 0.95% S
PG 742718109 PROCTER & GAMBLE CO/THE 2,900.00 162.61 471,569.00 0.94% S
ENS 29275Y102 ENERSYS 5,000.00 94.17 470,850.00 0.94% S
TPG 872657101 TPG INC 10,400.00 44.98 467,792.00 0.93% S
SYY 871829107 SYSCO CORP 5,700.00 81.94 467,058.00 0.93% S
TMUS 872590104 T-MOBILE US INC 2,867.00 162.01 464,482.67 0.93% S
MCHP 595017104 MICROCHIP TECHNOLOGY INC 5,200.00 89.19 463,788.00 0.93% S
MSFT 594918104 MICROSOFT CORP 1,100.00 421.43 463,573.00 0.93% S
BMY 110122108 BRISTOL-MYERS SQUIBB CO 8,699.00 53.25 463,221.75 0.93% S
MCO 615369105 MOODY'S CORP 1,186.00 390.24 462,824.64 0.92% S
DOX G02602103 AMDOCS LTD 5,140.00 89.9 462,086.00 0.92% FS
TER 880770102 TERADYNE INC 4,100.00 111.54 457,314.00 0.91% S
MA 57636Q104 MASTERCARD INC - A 956 477.95 456,920.20 0.91% S
V 92826C839 VISA INC-CLASS A SHARES 1,625.00 279.02 453,407.50 0.91% S
XRX 98421M106 XEROX HOLDINGS CORP 25,500.00 17.75 452,625.00 0.90% S
ZWS 98983L108 ZURN ELKAY WATER SOLUTIONS C 13,800.00 32.76 452,088.00 0.90% S
OXY 674599105 OCCIDENTAL PETROLEUM CORP 7,018.00 64.2 450,555.60 0.90% S
EXPD 302130109 EXPEDITORS INTL WASH INC 3,576.00 121.24 433,554.24 0.87% S
AMR 020764106 ALPHA METALLURGICAL RESOURCE 1,342.00 323.02 433,492.84 0.87% S
LMT 539830109 LOCKHEED MARTIN CORP 939 456.78 428,916.42 0.86% S
MNRO 610236101 MONRO INC 13,600.00 31.46 427,856.00 0.85% S
IDCC 45867G101 INTERDIGITAL INC 4,000.00 105.91 423,640.00 0.85% S
MCD 580135101 MCDONALD'S CORP 1,483.00 282.02 418,235.66 0.84% S
OLN 680665205 OLIN CORP 7,134.00 58.25 415,555.50 0.83% S
MO 02209S103 ALTRIA GROUP INC 9,382.00 43.66 409,618.12 0.82% S
CMCSA 20030N101 COMCAST CORP-CLASS A 9,460.00 43.07 407,442.20 0.81% S
EA 285512109 ELECTRONIC ARTS INC 3,064.00 131.87 404,049.68 0.81% S
AAPL 037833100 APPLE INC 2,314.00 173.31 401,039.34 0.80% S
LNG 16411R208 CHENIERE ENERGY INC 2,455.00 161.14 395,598.70 0.79% S
SBUX 855244109 STARBUCKS CORP 4,152.00 91.5 379,908.00 0.76% S
OEC L72967109 ORION SA 15,288.00 23.53 359,726.64 0.72% FS
HUM 444859102 HUMANA INC 920 349.5 321,540.00 0.64% S
CASH 183,790.20 100 183,790.20 0.37% CA
X9USDBLYT BLACKROCK TREASURY TRUST INSTL 62 54,402.89 1 54,402.89 0.11% MM
Holdings and allocations are subject to risks and to change. A holding identified with an “MM” at the end of its name indicates it is a Money Market fund.

FUND

Fees & Expenses

Management Fee 0.70%
Total Annual Operating Expenses 1.05%
Fee Waiver/Expense Reimbursement* -0.15%
Total Annual Operating Expenses After Waiver/Reimbursement 0.90%

*The Advisor has contractually agreed to keep net expenses from exceeding 0.90% of the Fund’s average daily net assets for at least one year from the date of the prospectus. For more information, please read the full prospectus.

Last Ten

Fund Distributions

  • 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 may be obtained by visiting the Fund’s website at www.AdvisorShares.com. Please read the prospectus carefully before you invest. Foreside Fund Services, LLC, Distributor. 
  •    
  • The Fund’s investment focus follows a core philosophy that corporate insiders know their companies best.  The Advisor believes that insider buying and stock buyback programs not only show that corporate insiders see relative value in investing in their own company’s equity securities, but also create favorable market conditions by reducing public equity float (i.e., the share supply available to investors on the public secondary market).  The Advisor allocates the Fund’s portfolio using research from a disciplined and quantitative proprietary model, the U.S. Insiders Edge Model, developed by Qubed Capital, LLC. In utilizing the model, the Advisor seeks to remove emotion from day-to-day decision-making by following a systematic process.
  •  
  •  
  • The Fund is an actively-managed exchange-traded fund (“ETF”) that seeks to achieve its investment objective by primarily investing in a portfolio of U.S. traded companies selected from a universe of the largest 3,000 U.S. equity securities based on market capitalization. When models and data prove to be incorrect or incomplete, any decisions made in reliance thereon expose the Fund to potential risks. In addition, the use of predictive models has inherent risk.
  •  
  • Definitions   
    A buyback occurs when a company repurchases its own shares from the marketplace, reducing the number of shares outstanding.
  •   
  • Equity float is the portion of a company’s outstanding shares that is in the hands of public investors, as opposed to company officers, directors, or stockholders that hold controlling interests that have trading restrictions.
  •     
  • Float shrink is a reduction in the number of a company’s shares available for trading.
  •   
  • Free cash flow represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. It is a measure of profitability and represents the cash available for the company to repay creditors and pay out dividends and interest to investors.
  •  
  • An insider is an officer, director, executive, entity, or individual that owns more than 10% of a publicly traded company’s shares.
  •   
  • Insider buying is the legal purchase of shares in a firm by a corporate insider that is not based on non-public, material information and follows the U.S. Securities and Exchange Commission’s rules and reporting requirements. 
  •  
  •  
  • Insider trading is the illegal trading a publicly traded company’s security by anyone who has non-public, material information about that security before the information becomes public.

The Morningstar Rating™ for funds, or “star rating,” is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Past performance is no guarantee of future results.   

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SURE received 3 stars for the 3-year rating among 1,129 funds, 4 stars for the 5-year rating among 1,074 funds, 3 stars for the 10-year rating among 825 funds, and 3 stars for the overall rating among 1,129 funds in Morningstar’s Large Value category as of January 31st, 2024.