How It Works
The AdvisorShare's Cornerstone Small Cap ETF's (NYSE Arca: SCAP) investment process focuses on stocks with market capitalizations typically between $250 million and $3 billion at the time of purchase and then screens out companies with weak fundamentals to create a well-diversified, fully invested portfolio of our 240 most compelling opportunities. The investment process doesn't stop once a stock is purchased. The portfolio is partly reconstituted each quarter, which ensures it responds to changes in market conditions and targets the most attractive securities, while limiting annual turnover.
- 1800 primarily domestic corporations
- Universe market capitalization ranges are typically between $250 million and $3 billion
- Improving underlying fundamentals
- Balance sheet strength
- Financial Flexibility
- Consider companies with the highest anticipated fundamental improvement
- Penalize financially stressed companies
- Sectors are constrained at the index weight plus or minus 15%
- New positions capped at 2%
- Existing positions capped at 5%
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.