Cornerstone Investment Partners believes that stock prices are far more volatile than the fundamentals of companies and that potential improvements in fundamentals are under appreciated by the market. This belief stems from the observation that the market tends to overreact to incremental pieces of information, whether pushing prices too far to the downside on pessimistic outlooks or pushing prices too high as optimism flourishes. Particularly for small cap stocks, investor perceptions often change quickly and even independently of the fundamentals a company is likely to achieve.
The AdvisorShares Cornerstone Small Cap ETF (NYSE Arca: SCAP) portfolio seeks to provide total return through long-term capital appreciation and current income. The portfolio is actively managed and seeks to accomplish its investment objective by investing in a diversified group of primarily US traded securities. The investable universe for the strategy is constructed to mimic the Russell 2000 index by choosing publicly traded US companies with market capitalization typically between $250 million and $3 billion at the time of purchase. The portfolio is comprised of 240 stocks that are equally weighted with sectors weights constrained at the index weight plus or minus 15%.
For current holdings and performance information please visit www.advisorshares.com/fund/scap
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. Foreside Fund Services, LLC, distributor.
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 in small capitalization companies may be riskier and more volatile than large cap companies. Security prices of small-cap companies are generally more vulnerable than those of large-cap companies to adverse business and economic developments. Other Fund risks include market risk, equity risk, large cap risk, liquidity risk and trading risk. Please see prospectus for details regarding risk.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.