BETHESDA, Md., Sept. 9, 2014 /PRNewswire/ -- AdvisorShares, a leading sponsor of actively managed exchange-traded funds (ETFs), announced today that the AdvisorShares Madrona Domestic ETF (NYSE Arca: FWDD) has received a Five-Star Morningstar Rating™ for both its three-year and overall risk adjusted performances from inception through August 31, 2014 out of 1,381 funds in Morningstar's Large Blend category.
FWDD is managed by Madrona Funds, an Everett, Washington-based SEC registered investment advisor and asset manager founded by Brian Evans that specializes in domestic equity, international equity and global fixed income strategies.
As more actively managed ETFs begin to reach their three-year track records and beyond, FWDD joins the AdvisorShares Peritus High Yield ETF (NYSE Arca: HYLD), which is recognized for its three-year and overall risk adjusted performance out of 564 funds in Morningstar's High Yield Bond category, as funds from AdvisorShares actively managed ETF suite with a Five-Star Morningstar Rating™. Additionally, another active ETF managed by Madrona, the AdvisorShares Madrona Global Bond ETF (NYSE Arca: FWDB) holds a Four-Star Morningstar Rating™ for its three-year and overall risk adjusted performances from inception through August 31, 2014 out of 294 funds in Morningstar's World Bond category.
Morningstar compares each ETF's risk-adjusted return, with at least a three-year history, to the open-end mutual rating breakpoints for each of its respective categories. Consistent with the open-end mutual fund ratings, FWDD earned its five-star ranking as being in the top 10% of funds – that includes both ETFs and mutual funds – in the Large Blend category.
"We are pleased to offer another actively managed ETF that has earned a Five-Star Morningstar Rating™ within an increasingly sought-after actively managed ETF marketplace," said Noah Hamman, chief executive of AdvisorShares. "Not only is this an acknowledgement of Brian Evans and Madrona's exemplary portfolio management, but it also reinforces that transparent active management in equity ETFs can work very well with the added benefits of intraday liquidity and overall efficiency of the ETF structure."
"We certainly appreciate Morningstar's five-star recognition of FWDD and believe this accolade further supports our belief that qualitative investing will be necessary to take advantage of opportunities in the market moving forward," said Mr. Evans, founder and portfolio manager of Madrona Funds. "Since most index-based domestic equity ETFs allocate their holdings by buying the most of the largest companies without regard to valuation, we feel that FWDD is well-positioned to invest in undervalued opportunities. We believe the forward-looking investment approach employed in FWDD has not only provided a competitive advantage, but most importantly has benefited our shareholders well."
For media inquiries requesting more information on AdvisorShares, please contact Ryan Graham at 202-684-6442 or firstname.lastname@example.org. For financial professionals and investors requesting more information, please visit www.advisorshares.com or call the AdvisorShares Investment Consultant Team at 1-877-THE-ETF1 (1-877-843-3831).
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AdvisorShares is one of the leading providers of actively managed ETFs. As of September 5, 2014, AdvisorShares offers 26 actively managed ETFs with over $1.8 billion of assets under management. AdvisorShares provides educational support to help financial advisors and investors understand the benefits of actively managed ETFs and their underlying investment strategies.
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.
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. The Fund may invest in large capitalization companies. During a period when the demand for large-cap securities is less than for other types of investments, the Fund's performance could be reduced. Other Fund risks include market risk, equity risk, early closing risk, liquidity risk and trading risk. This Fund may not be suitable for all investors.
Shares are bought and sold at market price not net asset value (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.
*The Morningstar Rating™ is provided for those exchange-traded funds ("ETFs") with at least a three-year history. Ratings are based on the ETF's Morningstar Risk-Adjusted Return measure which accounts for variation in monthly performance, placing more emphasis on downward variations and rewarding consistent performance. An ETF's risk-adjusted return includes a brokerage commission estimate. This estimate is intended to reflect what an average investor would pay when buying or selling an ETF. PLEASE NOTE, this estimate is subject to change and the actual brokerage commission an investor pays may be higher or lower than this estimate. Morningstar compares each ETF's risk-adjusted return to the open-end mutual fund rating breakpoints for that category. Consistent with the open-end mutual fund ratings, the top 10% of ETFs in each 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 rating for an ETF is based on a weighted average of the time-period ratings (e.g., the ETF's 3,5, and 10 year rating).. The determination of an ETF's rating does not affect the retail open end mutual fund data published by Morningstar. Past performance is no guarantee of future results.
Press Contact: Ryan Graham