ETF Hearsay
Tuesday, December 15, 2020

AdvisorShares to list two ETFs before Christmas

 Target listing date of December 23



AdvisorShares Q Portfolio Blended Allocation ETF | QPT
AdvisorShares Q Dynamic Growth ETF  | QPX


Both are fund-of-funds, each investing in a portfolio of ETFs.


Sub-Adviser: ThinkBetter, LLC - Ron Piccinini, Ph.D, Chief Investment Officer at Sub-Adviser since May 2019
(Q Consulting)

Focus on tail risk (Dr Piccinini of ThinkBetter did his Ph.D on tail risk) as driver for investment signals.

ThinkBetter investment strategies provide investors with dynamic, passive and alternative strategies. We offer investment solutions using a qualitative and quantitative approach, primarily utilizing ETFs, equities and options, for institutions and their clients. ThinkBetter makes use of proprietary Q Methodology™ in the design and management of our portfolios.

Q Methodology™ generates a set of optimal portfolios that offer the highest expected return for a defined level of tail risk (which is the risk that an investment’s return will move significantly beyond expectations, i.e., more than three standard deviations from its mean) and expected drawdown. 


Prospectus is here.


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AdvisorShares Q Portfolio Blended Allocation ETF
Ticker: QPT
Exchange: NYSE arca
Expense ratio: 1.17%
Filing date: September 11, 2020
Effective date: November 25, 2020
Listing Date: December 22, 2020
CUSIP: 00768Y446

Strategy: Active

Universe: All asset classes of ETFs

The Fund seeks to strike a balance between long term growth and market volatility by maximizing returns relative to its peer group through a risk- and rewards-based approach to portfolio allocation.

Within the constraints of the expected drawdown, the Sub-Advisor then utilizes Q Methodology™, a proprietary risk analysis program, to determine the optimal risk/reward portfolio allocation.

Q Methodology™ generates a set of optimal portfolios that offer the highest expected return for a defined level of tail risk (which is the risk that an investment’s return will move significantly beyond expectations, i.e., more than three standard deviations from its mean) and expected drawdown. 


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AdvisorShares Q Dynamic Growth ETF
Ticker: QPX
Exchange: NYSE arca
Expense ratio: 1.46%
Filing date: September 11, 2020
Effective date: November 25, 2020
Listing Date: December 22, 2020
CUSIP: 00768Y438

Strategy: Active


The Fund seeks to maximize long-term growth by providing equity-like returns in most normal market conditions except when faced with abnormal levels of implied volatility as measured by QIX™, a proprietary implied volatility index owned by ThinkBetter,

QIX is a weighted average, computed daily, of implied volatilities of certain large ETFs representing different market sectors. Implied volatility is the market’s forecast of the likelihood of changes in a given security’s price. 

The greater a portfolio’s volatility, the wider the fluctuations between its high and low prices. 

In the event of implied volatility, the Fund takes a defensive position and seeks short-term fixed income returns. 

The Sub-Advisor seeks to achieve the desired results for the Fund by calibrating its portfolio to a tail risk and expected drawdown equivalent to the overall U.S. equity market.

Within the constraints of the expected drawdown, the Sub-Advisor then utilizes Q Methodology™, a proprietary risk analysis program, to determine the optimal risk/reward portfolio allocation. 

Q Methodology™ generates a set of optimal portfolios that offer the highest expected return for a defined level of tail risk and expected drawdown. The resulting portfolio for the Fund is composed of a diversified mix of investments, including equities, fixed income, and commodities that are held through ETFs.


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About Henry Jim Henry is a senior ETF Product Developer who has launched over 100 ETFs in the USA, Canada, Latin America, and the UK. He has launched global equity and fixed income, non-indexed , currency-hedged, factor ETFs, and tax-sheltered private equity / venture capital funds. HEARSAY stands for Henry’s ETF Alert, Research, and Strategic Analysis sYstem.

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