AdvisorShares Launches New Actively Managed ETFs Featuring ThinkBetter's Q Methodology™ Risk Management

AdvisorShares Q Portfolio Blended Allocation ETF (Ticker: QPT) and AdvisorShares Q Dynamic Growth ETF (Ticker: QPX) begin trading today

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AdvisorShares

Dec 29, 2020, 09:00 ET

BETHESDA, Md., Dec. 29, 2020 /PRNewswire/ -- AdvisorShares, a leading sponsor of actively managed exchange-traded funds (ETFs), today announced the launches of the AdvisorShares Q Portfolio Blended Allocation ETF (Ticker: QPT) and the AdvisorShares Q Dynamic Growth ETF (Ticker: QPX). QPT and QPX are actively managed ETFs sub-advised by ThinkBetter, LLC which utilizes their proprietary Q Methodology™ risk management process in the design and management their portfolios.

QPT is an asset allocation fund that invests across all asset classes and seeks to both maximize total return over the long-term and outperform traditional balanced funds. In pursuing its investment objective, QPT invests in ETFs which include U.S., international, broad market, and sector equities; government, municipal, and corporate fixed income; real estate, gold, and other commodities. QPT's asset allocation is calibrated to the expected drawdown of a typical balanced fund and is optimized on a regular basis. Asset classes may be added or removed from QPT's portfolio based on changing risk/reward characteristics.

QPX seeks to achieve long-term growth and targets equity market upside while tactically managing downside risk during abnormal market volatility. In pursuing its investment objective, QPX invests in ETFs featuring a broad variety of equities across market cap, style, and sectors as well as various fixed income categories and commodities to manage risk. QPX seeks to provide broad-market equity-like returns and the manager re-optimizes the portfolio monthly. However, during periods of high market volatility, QPX can allocate to a more defensive portfolio and seek short-term fixed income returns. QPX's market volatility indicator, the Q Implied Volatility Index™ (QIX), is reviewed daily which may result in mid-month allocation changes. Asset classes may be added or removed from QPX's portfolio based on changing risk/reward characteristics.

Both ETFs utilize ThinkBetter's Q Methodology in their investment process. QPT utilizes the proprietary risk management approach to strike a balance between long-term growth and market volatility while seeking to maximize returns. QPX utilizes it to optimally allocate the fund's assets against a given level of risk.

Additionally, both QPT and QPX feature a fulcrum fee expense structure which further aligns portfolio manager incentive with shareholder interests.

"We're excited to showcase ThinkBetter's collective industry experience and established portfolio management expertise in our active ETF suite," said Noah Hamman, chief executive officer of AdvisorShares. "We believe advisors and investors who conduct due diligence on these alpha-seeking investment solutions will find them as compelling considerations among their respective investment peer groups."

"Risk management resides at the core of our investment ethos," said Ron Piccinini, Ph.D., chief investment officer of ThinkBetter. "We believe our proprietary Q Methodology provides 'better math' in navigating portfolio management risk and potential returns which ultimately aims to align better investment outcomes for educated advisors and investors."

About Q Methodology™
Q Methodology™ is a modern quantitative approach to assessing risk/reward and optimizing investment portfolios. The methodology is based on heavy-tail distribution mathematical analysis and focuses on estimating the downside of a portfolio (expected drawdown) under extreme but plausible stress (tail risk). Using high performance computing power, Q Methodology™ generates tens of thousands of portfolio simulations to identify the asset allocation offering the greatest return for a given level of risk. Simply put, ThinkBetter believes Q Methodology™ is "better math" for better investment management.

About the Q Implied Volatility Index™ (QIX)

QIX is a proprietary indicator designed to tactically and unemotionally identify market volatility and to help avoid drawdowns. When QIX indicates normal volatility, QPX will have long equity exposure; when QIX is high, QPX moves to a defensive fixed income portfolio.

About AdvisorShares

AdvisorShares is a leading provider of actively managed ETFs. For financial professionals and investors requesting more information, call 1-877-843-3831 or visit www.advisorshares.com. Follow @AdvisorShares on Twitter and Facebook for more insights.

Before investing you should carefully consider the Fund's investment objectives, risks, charges and expenses. This and other information are 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. Foreside Fund Services, LLC, distributor.

Foreside Fund Services, LLC, distributor.

Definitions
Tail risk is the possibility of an investment's return moving significantly beyond expectations (i.e., more than three standard deviations from its mean).
Expected drawdown is the maximum peak to trough capital loss over a full market cycle (as measured from January 2006 to March 2020).

Investing Involves Risk Including possible loss of principal.

There is no guarantee the Advisors investment strategy will be successful. When models and data prove to be incorrect or incomplete, any decisions made in reliance thereon expose the Fund to potential risks. In addition, the use of predictive models has inherent risk. Because predictive models are usually constructed based on historical data supplied by third parties, the success of relying on such models may depend heavily on the accuracy and reliability of the supplied historical data. The Fund's particular allocations may have a significant effect on the Fund's performance. Allocation risk is the risk that the selection of ETFs and the allocation of assets among such ETFs will cause the Fund to underperform other funds with a similar investment objective that do not allocate their assets in the same manner or the market as a whole. For a list of the asset class specific risks please see the prospectus.

The Fund is subject to a number of risks that may affect the value of its shares. This section provides additional information about the Fund's principal risks. The degree to which a risk applies to the Fund varies according to its investment allocation. Each investor should review the complete description of the principal risks before investing in the Fund. As with investing in other securities whose prices increase and decrease in market value, you may lose money by investing in the Fund.

Tax Risk. In order to qualify for the favorable U.S. federal income tax treatment the Fund must, among other requirements described in the Fund's SAI, derive at least 90% of its gross income in each taxable year from certain categories of income ("qualifying income") and must satisfy certain asset diversification requirements. Certain of the Fund's investments may generate income that is not qualifying income. If the Fund were to fail to meet the qualifying income test or asset diversification requirements, it would be taxed in the same manner as an ordinary corporation, and distributions to its shareholders would not be deductible by the Fund in computing its taxable income.

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.

SOURCE AdvisorShares