FNG: April 2019 Portfolio Manager Review
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. For the fund’s most recent standardized and month-end performance, please click www.advisorshares.com/fund/fng.
For the month of April, the AdvisorShrares New Tech and Media ETF (FNG) was down 8.82% compared to a gain of 9.48% in the S&P 500 and gain of 5.46% in the NASDAQ. The “FANG” stocks (Facebook, Amazon, Netflix, Google) were up 6.22% for the month.
Effective May 1, 2019, Scott Freeze was named portfolio manager of FNG. Scott is also the portfolio manager of the AdvisorShares Sabretooth ETF (ticker: BKCH).
FNG is still holding a large position of AMRN (Amarin Corp). Catalysts coming up in the next few months for their drug Vascepa are a possible priority review from the FDA for label expansion for cardiovascular diseases. There are also whispers of a European deal in the works following the recent FDA review in Canada.
Amazon (AMZN) is still a core holding in FNG and one that we like to keep a higher weighting do to their growing AWS (cloud business) and forward revenue projections.
Zoom Communications (ZM) is a new holding in the ETF. ZM was a recent IPO and a leader in cloud based technology regarding meetings, phones systems, conferences, etc. Currently, this position has appreciated more than 6%.
Top 10 Holdings
|Ticker||Security Description||Portfolio Weight %|
|AMRN||AMARIN CORP PLC -ADR||15.56%|
|BKCH||ADVISORSHARES SABRETOOTH ETF||10.01%|
|AYX||ALTERYX INC – CLASS A||5.87%|
|ZM||ZOOM VIDEO COMMUNICATIONS-A||5.54%|
|SQ||SQUARE INC – A||5.02%|
|CSCO||CISCO SYSTEMS INC||4.67%|
As of 04.30.2019. Does not include cash holdings.
Scott Freeze, CIO
AdvisorShares New Tech and Media ETF (FNG) Portfolio Manager
Past Manager Commentary
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.
The Nasdaq Composite Index is the market capitalization-weighted index of approximately 3,000 common equities listed on the Nasdaq stock exchange.
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 www.advisorshares.com. Please read the prospectus carefully before you invest. Foreside Fund Services, LLC, distributor.
There is no guarantee that the Fund will achieve its investment objective. An investment in the Fund is subject to risk, including the possible loss of principal amount invested. When the Fund focuses its investments in a particular industry or sector, financial, economic, business, and other developments affecting issuers in that industry, market, or economic sector will have a greater effect on the Fund than if it had not done so. Market or economic factors impacting technology companies and companies that rely heavily on technological advances could have a major effect on the value of the Fund’s investments. Shares of the Fund may trade above or below their net asset value (“NAV”). The trading price of the Fund’s shares may deviate significantly from their NAV during periods of market volatility. There can be no assurance that an active trading market for the Fund’s shares will develop or be maintained. In addition, equity markets tend to move in cycles which may cause stock prices to fall over short or extended periods of time. Other Fund risks include market risk, liquidity risk, large cap, mid cap, and small cap risk. Please see prospectus for details regarding risk.
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.
The views in this commentary are those of the portfolio manager and may not reflect his views on the date this material is distributed or any time thereafter. These views are intended to assist shareholders in understanding their investments and do not constitute investment advice.