AdvisorShares

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AdvisorShares Investments, Inc.
Limited Liability Company (LLC)
Industry Investment Management
Founded 2006
Founder Noah Hamman
Headquarters Bethesda, Maryland
Key people
Noah Hamman
Dan Ahrens
James Carl
Products 18 Exchange-Traded Funds (ETFs): U.S. and International Equity, Fixed Income and Alternatives[1]
AUM US$1.08 billion[2]
Parent Employee Owned
Website advisorshares.com

AdvisorShares Investments is a US-based investment management firm based in Bethesda, Maryland which offers actively managed exchange-traded funds (ETFs) through the AdvisorShares Trust. Fund.com took an interest in the firm in 2008 and the firm launched its first active ETF fund in 2009.

History[edit]

The firm launched its first active ETF fund in 2009.[3] By 2014 it had 24 active ETFs and $1.83 billion under management.[4] By August 2017 it had 18 ETFs with an average expense ratio of 1.15% and only $1.11 billion in assets under management.[5] AdvisorShares is a subsidiary of Fund.com, which has a 60% ownership interest.[6]

AdvisorShares partners with third party financial advisers who already manage clients’ assets to package their investment strategy using exchange-traded funds. As part of promoting its funds it also provides educational support to help financial advisors and investors understand actively managed ETFs and their underlying investment strategies.[7][8]

In October 2012 Esposito Securities LLC sued AdvisorShares, claiming that the parties signed a mutual nondisclosure agreement and that subsequently Dan Ahrens, an officer of AdvisorShares, began sharing confidential information with Esposito's clients and told them not to do business with Esposito.[9]

Funds[edit]

The DENT Tactical ETF[edit]

The Dent Tactical ETF commenced trading on the New York Stock Exchange on September 15, 2009 under the NYSEDENT. The first product of AdvisorShares Investments, LLC, DENT was actively managed by HS Dent Investment Management, LLC, an independent economic research and forecasting company and publisher of The Dent Method.[10]

HS Dent Investment Management was managed by financial author, Harry S. Dent Jr. Previously, HS Dent had raised and managed a $2.0 billion mutual fund, AIM Dent Demographic Trends, which was merged into another fund after it lost 80% of its assets.[11] According to Morningstar, Inc., DENT had highest expense ratio among ETFs, 1.5% of assets, as of July 2011.[12]

DENT closed in August 2012.[13] Its last day of trading was August 8, 2012 and remaining investments were returned to shareholders on August 15, 2012.[14]

The Mars Hill Global Relative Value ETF (NYSE symbol: GRV)[edit]

The Mars Hill Global Relative Value ETF commenced trading on the New York Stock Exchange on July 9, 2010 under the NYSE Ticker: GRV and was managed by Mars Hill Partners, LLC. GRV was the industry's first actively managed long/short ETF.[15]

While GRV managed to raise $38 million a month after it launched, investors fled until the fund had only $3.2 million left. On December 1, 2011, Accuvest Global Advisors took over management of the fund and changed the name and ticker to AdvisorShares Accuvest Global Long Short ETF (AGLS).[15]

The Global Echo ETF (NYSE Symbol: GIVE) and partnership with Philippe Cousteau Jr.[edit]

In May 2012, AdvisorShares launched the AdvisorShares Global Echo ETF on the New York Stock Exchange NYSEGIVE focused on sustainable investing; the fund also said it would donate a portion of the fund expense fees to Global Echo Foundation, a nonprofit co-founded by Philippe Cousteau, Jr. focused on social issues impacting women and children to environmental conservation, as well as supporting social entrepreneurship.[16] The fund's expense ratio is 1.7%, including 0.4% that is donated to the Global Echo Foundation. One potential concern investors may have about investing in GIVE is that they don't get a tax write-off for the portion of the management fee that is donated to the charitable foundation, whereas an individual donating the proceeds of a profitable investment to an eligible charity would be able to get a substantial tax write-off.[17] In reaction to that, AdvisorShares lowered the management fee on GIVE to 0.80% and capped its net expense ratio at 0.99% in January 2017.[18] GIVE finally closed on May 17, 2017. [19]

References[edit]

  1. ^ "AdvisorShares ETF Overview". ETF.com. etf.com. Retrieved 29 August 2017. 
  2. ^ "ETF League Table As Of May 1, 2017". etf.com. etf.com. Retrieved 2 May 2017. 
  3. ^ "AdvisorShares Investments, Initiates Public Offering Launching its Unique Exchange Traded Fund Platform for Investment Advisors and Lists on the New York Stock Exchange (NYSE Ticker: DENT)". ETF Daily News. 
  4. ^ Jeff Benjamin. "Are active ETFs finally growing in popularity?". Investment News. 
  5. ^ "AdvisorShares ETF Overview". ETF.com. etf.com. Retrieved 29 August 2017. 
  6. ^ Stern, Richard. "Fund.com Subsidiary, AdvisorShares, Partners with BNY Mellon and WCM Investment Management to Launch WCM/BNY Mellon Focused Growth ADR ETF". PR Newswire. 
  7. ^ "AdvisorShares Launches Four Gold ETFs". Financial Advisor Magazine. 
  8. ^ "AdvisorShares". Nasdaq. 
  9. ^ "Nasty Doings Alleged in Investment Business". Courthouse News Service. 
  10. ^ "AdvisorShares Investments, LLC Brings a Tailored ETF Investment Vehicle to the Marketplace". Reuters. September 17, 2009. 
  11. ^ Roth, Allan. "Second Dent investment fund to disappear". CBS News. 
  12. ^ Burton, Jonathan. "His Forecasts of Booms and Busts Sell Lots of Books. But an ETF? Maybe Not". The Wall Street Journal. 
  13. ^ "Harry Dent Tactical ETF Gets The Ax". 
  14. ^ "AdvisorShares Announces the Closing of the Dent Tactical ETF (DENT)". Reuters. July 25, 2012. 
  15. ^ a b Murphy, Cinthia. "AdvisorShares' GRV To Get A Makeover". IndexUniverse. 
  16. ^ Johnston, Michael. "AdvisorShares Launches Global Echo ETF (GIVE)". 
  17. ^ Ferri, Rick. "This ETF is Bound to be Underwater". Archived from the original on 2013-12-17. 
  18. ^ Bennett, Johanna. "AdvisorShares Cuts Management Fee For Global Echo ETF". barrons.com. Barron's. Retrieved 29 August 2017. 
  19. ^ Bell, Heather. "ETF Closures". ETF.com. etf.com. Retrieved 3 August 2017. 

External links[edit]