Description
1.877.84 3.3831
Fund Shareholders
Any investor with a brokerage account can purchase shares of an ETF. It is this type of availability that makes
ETFs attractive for some investors, although commission costs exist with each buy and sell. Additional shareholder benefits include:
• Increased Liquidity - Investors can buy or sell ETFs any second of the trading day; however ETFs are only as liquid as
their underlying securities
• Transparency - Allows investors to make more educated investment decisions
• Trading Flexibility - Shareholders can hedge, buy on margin, purchase options (if available), and sell short
Tax Efficiency
Unlike mutual funds, where investors are responsible for taxes on capital gains, many ETF do not make taxable capital gain distributions. Transactions between the AP and the ETF are transferred in-kind and therefore
do not generate a taxable gain or loss for the shareholder.
Since the transactions will not be taxed it is benefical to transfer the lower basis securities.
However, at times it is advantages to sell high-basis securities at a loss in order to harvest losses to offset the taxable gains from that year. By balancing the cost basis, the ETF may be a tax efficient investment strategy. In-kind transfer of low-cost shares Basket of Securities AP Existing Units are Redeemed In-kind transfer ETF Retains higher-cost basis shares ETF Units Before investing you should carefully consider the Funds’ investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained by visiting the Funds’ website at www.AdvisorShares.com.
Please read the prospectus carefully before you invest. Foreside Fund Services, LLC, Distributor. An investment in the Funds is subject to risk, including the possible loss of principal amount invested. The risks associated with each Fund include the risks associated with the underlying ETFs, which can result in higher volatility, and are detailed in each Fund’s prospectus and on each Fund’s webpage. Alpha measures the difference between a fund’s actual returns and its expected performance, given its level of risk (as measured by beta). AdvisorShares 4800 Montgomery Lane Suite 150 Bethesda, Maryland 20814 1.877.843.3831 .
However, at times it is advantages to sell high-basis securities at a loss in order to harvest losses to offset the taxable gains from that year. By balancing the cost basis, the ETF may be a tax efficient investment strategy. In-kind transfer of low-cost shares Basket of Securities AP Existing Units are Redeemed In-kind transfer ETF Retains higher-cost basis shares ETF Units Before investing you should carefully consider the Funds’ investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained by visiting the Funds’ website at www.AdvisorShares.com.
Please read the prospectus carefully before you invest. Foreside Fund Services, LLC, Distributor. An investment in the Funds is subject to risk, including the possible loss of principal amount invested. The risks associated with each Fund include the risks associated with the underlying ETFs, which can result in higher volatility, and are detailed in each Fund’s prospectus and on each Fund’s webpage. Alpha measures the difference between a fund’s actual returns and its expected performance, given its level of risk (as measured by beta). AdvisorShares 4800 Montgomery Lane Suite 150 Bethesda, Maryland 20814 1.877.843.3831 .
