SCAP Profile
The AdvisorShares Cornerstone Small Cap ETF is designed to deliver a combination of long-term capital appreciation and current income through a diversified investment strategy focused on small-cap U.S. equities. The fund aims to achieve its investment objective by allocating its assets across a broad range of equity securities, including common and preferred stocks, American Depositary Receipts (ADRs), and Real Estate Investment Trusts (REITs). This diversified approach helps the fund capture growth opportunities and income across various sectors of the small-cap market.
Under normal market conditions, the fund commits at least 80% of its net assets, plus any borrowings for investment purposes, to small-cap securities. These securities are defined as those with market capitalizations smaller than the largest company within the Russell 2000 Index at the time of acquisition. By focusing on small-cap stocks, the fund aims to exploit the growth potential of emerging and expanding companies that are not yet part of the larger indices.
The fund is managed by AdvisorShares, with its investment decisions guided by a sub-advisor specializing in small-cap equities. The sub-advisor utilizes a comprehensive analysis of market trends, company fundamentals, and sector dynamics to identify promising small-cap investment opportunities. The investment process involves selecting stocks that demonstrate strong growth potential and financial stability, aiming to build a well-rounded portfolio that reflects the overall small-cap market.
In addition to its focus on small-cap stocks, the AdvisorShares Cornerstone Small Cap ETF includes allocations to ADRs and REITs, providing additional avenues for diversification and income generation. The inclusion of REITs offers exposure to real estate sectors, which can contribute to income through dividends, while ADRs provide access to international companies traded in U.S. markets. This multi-faceted investment strategy is designed to enhance the fund's overall return profile while managing risk through diversification across different asset types and sectors.
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