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(CWS) Focused Equity ETF

Overview

How CWS Works

The AdvisorShares Focused Equity ETF (NYSE Arca: CWS) seeks long-term capital appreciation. CWS aims to achieve its investment objective by investing primarily in a focused group of U.S. exchange-listed equity securities that the portfolio manager believes have favorable fundamental attributes.

The Advisor may use a variety of methods for security selection and will seek to focus on firms that are fundamentally sound and have shown consistency in their financial results and high earnings quality. The Advisor may look for stocks with a strong history of sales and earnings growth, or companies that have steadily increased their earnings and dividends for several years. In addition, the Advisor may invest the Fund’s assets in lesser-known companies that the Advisor believes have a unique opportunity for growth. At times, the Advisor may buy certain out-of-favor stocks believed to be priced below their intrinsic value, as measured by the Advisor. Additionally, the Advisor aims to keep the portfolio turnover low.

CWS’s principal investment strategy has been employed by the portfolio manager, Eddy Elfenbein, since 2006 and is published annually as the Crossing Wall Street “Buy List.” The Buy List is a list of 25 stocks selected at the start of each year. The Buy List is then locked and sealed, and no changes can be made throughout the year. Each year, only five stocks, just one-fourth of the Buy List, have been replaced.

 

Fund Documents

Portfolio Manager Commentaries

CWS in the News

12/29/2016 -

AdvisorShares Press Release, AdvisorShares Announces December 2016 Distributions

10/09/2016 -

Constable, Simon. "How a Blogger Started His Own ETF" http://www.wsj.com/articles/how-a-blogger-started-his-own-etf-1476065040

09/21/2016 -

Viskanta, Tadas. "Q&A with Eddy Elfenbein on the launch of the AdvisorShares Focused Equity ETF" http://abnormalreturns.com/2016/09/21/qa-with-eddy-elfenbein-on-the-laun...

09/21/2016 -

Chen, Max. "A New Active ETF Puts the Manager’s Money Where His Mouth Is" http://www.etftrends.com/2016/09/a-new-active-etf-puts-the-managers-mone...

Performance -Month-End

CWS Performance History (%) as of 10/31/2017
 NAVMarket Price ReturnS&P 500 Index
1 Month2.842.592.33
3 Months4.293.994.76
YTD14.8514.4916.91
1 Year20.3820.0323.63
Since Inception
(09/20/2016)
17.1016.8220.49

Performance -Quarter-End

CWS Performance History (%) as of 9/30/2017
 NAVMarket Price ReturnS&P 500 Index
1 Month2.803.102.06
3 Months1.321.294.48
YTD11.6711.6014.24
1 Year14.9814.9618.61
Since Inception
(09/20/2016)
15.4415.4319.65

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. Returns less than one year are not annualized.

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.

Fund Distributions

Ex-DateRecord DatePay DateCash DivST Cap GainLT Cap GainReturn of CapitalTotal Distribution
12-22-17
12-27-17
12-29-17
-----
12-23-16
12-28-16
12-30-16
$0.0088$0.00$0.00$0.00$0.0088/per share
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Why Invest in CWS?

  • As a Complement to any Broad-Based Index Fund - By their nature, index funds buy everything - the good, the bad and the ugly. The strategy at CWS is to avoid fundamentally weak companies and only invest in the “first in class” companies.
  • Low Turnover - The CWS strategy is focused on the long term. That’s why CWS aims to trade its positions as infrequently as possible. The fund’s goal is to hold a stock for as long as it can. CWS believes that a disciplined buy-and-hold strategy is ideal for riding out market storms.
  • Innovative Fulcrum Fee Structure - In a first for the ETF industry, the portfolio manager of CWS has “skin in the game.” The manager’s compensation is directly tied to portfolio’s performance. Stronger out-performance is rewarded with a larger management fee while weak or under-performance is penalized with a smaller management fee.
  • Disciplined Stock-Picking Strategy - CWS is focused on a core group of outstanding companies. The Portfolio Manager believes that CWS offers an attractive and simple way for an investor to get instant exposure to a concentrated portfolio of companies with proven competitive advantages.

Where can CWS Fit in a Traditional Portfolio?

As a potential source of alpha, CWS can serve as a compliment or satellite equity holding alongside of broadly based domestic equity position.

5 Key Attributes

  1. Concentrated Portfolio - The Fund typically holds 25 stocks. By focusing on a small group of high-quality stocks, the Portfolio Manager feels that the portfolio can most efficiently exploit the advantages of owning top tier companies.
  2. Crossing Wall Street's Buy List - CWS's principal investment strategy is based on the Crossing Wall Street "Buy List," an annual list of 25 stocks selected by the Portfolio Manager that has been in place since 2006. Central to the Buy List is the concept that quality companies can outperform the broad market especially when implemented with a long term, patient focus.
  3. Bottom Up, Fundamental Stock Selection - CWS seeks to benefit from investing in the highest-quality companies. These are typically firms with proven managements, solid balance sheets and strong market positions. CWS stocks often have a long history of steadily rising sales, earnings and dividends.
  4. Disciplined and Patient Approach - The Portfolio Manager understands that stock prices are much more volatile than their underlying fundamentals. That’s why CWS takes a long-term view. With longer holding periods, the CWS strategy seeks to benefit from the market’s well-known tendency to overact to any sign of trouble.
  5. Value Focus - CWS strives to buy the highest-quality stocks at the lowest possible prices. By focusing on value, the Fund aims to reduce its risk to broad-based market drops. A commitment to value also aids long-term capital appreciation.

About the Portfolio Manager

Eddy Elfenbein
Eddy Elfenbein, MBA is the Owner, Publisher and Editor of the Crossing Wall Street Investment Newsletter, an investment analysis and research blog on the global stock market expressing opinions on individual securities and publishing the crossing Wall Street buy list since 2006 while working as an educator and evangelist for stock investing in the financial services industry, former editor at InvestorPlace.

Mr. Elfenbein earned his undergraduate degree from Washington College. Additionally, he has an MBA in Finance and Management from the University of Connecticut.

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Manager Minutes, November 2017

AlphaCall, September 2017

Price History

As of: 11/16/2017
NAV$29.92Closing Price$29.80
Change$0.31Change$0.07
Shares Outstanding425,000Volume181
4PM Bid/Offer Midpoint$29.88Premium/Discount$-0.04
Assets Under Management$12,714,792.85
Premium/Discount Historical Data

Holdings

As of: 11/16/2017

 

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. Holdings and allocations are subject to risks and to change.

Fund Basics

  • Symbol

    CWS

  • Exchange

    NYSE Arca

  • Inception Date

    09.20.2016

  • CUSIP

    00768Y560

  • Indicative Value

    CWS.IV

  • Options

    No

Fees & Expenses

  • Management Fee

    0.75%

  • Other Expenses

    1.29%

  • Gross Expense Ratio

    2.04%

  • Fee Waiver and/or Expense Reimbursement

    -1.29%

  • Net Expense Ratio

    0.75%*

  • *The Fund's base management fee is 0.75% and will increase or decrease based on the trailing 12-month net returns of CWS compared to its benchmark. The Advisor has contractually agreed to reduce its fees and/or reimburse expenses to keep net expenses from exceeding a percentage of the Fund’s average daily net assets equal to the annual rate of the management fee, which can range from 0.65% to 0.85%, for at least one year from the date of the Prospectus. See the Prospectus for information.