Launch Date Announcement for AdvisorShares YieldPro ETF (YPRO) New actively managed ETF seeks yield with enhanced protection from volatility
BETHESDA, Md., March 4, 2014 /PRNewswire/ -- AdvisorShares, a leading sponsor of 23 actively managed exchange-traded funds (ETFs), announced today that the AdvisorShares YieldPro ETF (NASDAQ: YPRO) will begin trading on Wednesday, March 5, 2014. YPRO is sub-advised by The Elements Group, LLC (TEG), an Irvine, Calif.-based SEC registered investment adviser, with an established expertise in delivering innovative investment and technology solutions for advisors and their clients. TEG also sub-advises the AdvisorShares EquityPro ETF (NYSE Arca: EPRO).
YPRO is a "fund of funds" multi-asset income strategy, investing primarily in other exchange-traded products (ETPs), that seeks to provide current income and capital appreciation. The fund will aim to allocate the majority of its portfolio to long and short investments across all sectors of income producing securities. In YPRO's structured investment process, TEG will pursue attractive yield and manage volatility through a quantitative approach to risk budgeting, which also includes the use of options to hedge residual equity and interest rate risk as needed. YPRO's combination of portfolio construction, risk budgeting, and hedging seeks to provide less volatility, low correlations to equity market risk, and the flexibility to manage interest rate risk.
"We are pleased to again partner with Josh Emanuel and TEG on a strategy which we believe provides another compelling income offering within our actively managed ETF suite," said Noah Hamman, chief executive officer of AdvisorShares. "In the current interest rate environment where many investors and advisors actively hunt for the dual goals of yield and mitigation of risk, we feel YPRO may help allow the flexibility to potentially achieve both objectives."
"We feel the desire for a robust income solution that serves as a suitable substitute to traditional bond risk is a significant need across many investor and advisor wish lists," said Joshua Emanuel, chief investment officer of TEG and portfolio manager of YPRO. "By aiming to provide a low volatility, low correlated income strategy based on TEG's rigorous combination of quantitative research and disciplined portfolio construction, we believe that we can deliver an attractive income solution for investors, especially with the attributes of transparency, liquidity and efficiency in its actively managed ETF structure."
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).
Please visit www.advisorshares.com to register for free weekly economic commentary. For educational insight into the active ETF marketplace, visit www.alphabaskets.com, follow @AdvisorShares on Twitter and 'Like' us on Facebook. Every Thursday at 4:00pm Eastern time, AdvisorShares hosts an educational conference call for Financial Professionals featuring our portfolio managers and leading investment industry experts. On Thursday, 3/6/2014, the call will feature Josh Emanuel to discuss the actively managed YPRO ETF—Dial: 1-800-977-8002; Code: 777534#
AdvisorShares is one of the leading providers of actively managed ETFs. As of 2/28/2014, AdvisorShares offers 23 active ETFs currently trading with approximately $1,420,000,000 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.
About The Elements Financial Group, LLC
The Elements Financial Group, LLC, based in Irvine, California, is an SEC registered investment adviser. As of December 31, 2013, The Elements Financial Group had approximately $450 million in assets under management. www.tegadvisor.com
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. Investing derivatives may be risker than other types of investments because they are more sensitive to change in economic or marketing conditions that could result in losses that significantly exceed the Fund's original investment. The Fund may invest in (or short) ETP's. Through its investments in ETPs, the fund will be subject to risks associated with such investment vehicles' investments, including the possibility that the value of the securities or instruments held or tracked by an ETP could decrease. Other Fund risks include market risk, equity risk, early closing risk, liquidity risk, fixed income security risk, income and interest rate risk, issuer risk, liquidity risk, management risk, mortgage- backed securities risk, portfolio turnover risk, prepayment risk, U.S. Government Securities Risk and trading risk. Please see prospectus for details regarding risk.
Duration is the change of a fixed income security that will result from a 1% change in interest rates, and is based on the yield to worst date. Volatility is a statistical measure of the dispersion of returns for a given security or market index. Volatility can either be measured by using the standard deviation or variance between returns from that same security or market index. Commonly, the higher the volatility, the riskier the security. A long position is the purchase of an investment with the expectation that it will rise in value. A short position is the sale of a borrowed investment with the expectation that it will decline in value. An option is a privilege, sold by one party to another that gives the buyer the right, but not the obligation, to buy (call) or sell (put) a security at an agreed upon price within a certain period or on a specific date. Correlation is a statistical measure of how two securities move in relation to each other.
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.