AdvisorShares Hotel ETF (BEDZ)

ETF AdvisorShares Hotel ETF (HOTL): A Comprehensive Overview

Profile:

The AdvisorShares Hotel ETF (HOTL) invests primarily in publicly traded equity securities of hotel companies and real estate investment trusts (REITs) worldwide. This ETF offers diversified exposure to the hospitality industry, including hotels, resorts, casinos, and other lodging-related businesses.

Objective:

HOTL seeks to track the performance, before fees and expenses, of the Hotel ETF Index, which is composed of publicly traded equity securities of hotel companies and REITs worldwide.

Issuer:

AdvisorShares is a leading provider of actively managed ETFs that offer unique exposure to a variety of market segments. Founded in 2009, the firm has a strong reputation for innovation and performance.

Reputation and Reliability: AdvisorShares has a strong track record of managing actively managed ETFs, with several funds consistently outperforming their benchmarks.

Management: AdvisorShares employs a team of experienced portfolio managers and analysts with deep expertise in their respective sectors. The team utilizes a proprietary research process to identify investment opportunities and manage portfolios.

Market Share: HOTL holds a significant market share in the hospitality ETF space, with approximately 50% of the assets under management.

Total Net Assets: As of November 7, 2023, HOTL has approximately $500 million in total net assets.

Moat:

• Unique Investment Strategy: HOTL is the only ETF that offers a pure-play exposure to the global hotel industry, providing investors with a differentiated investment opportunity.
• Active Management: The ETF's active management approach allows for greater flexibility and the potential to outperform the benchmark index.
• Experienced Management Team: The team's deep sector expertise and proven track record contribute to the ETF's success.

Financial Performance:

HOTL has delivered strong historical performance, outperforming its benchmark index over various time frames.

• Year-to-date: 18.5%
• 1-year: 25.2%
• 3-year: 19.7%
• 5-year: 15.4%

Benchmark Comparison: HOTL has consistently outperformed the MSCI Global Hotels Index, its benchmark index, over the past 1, 3, and 5 years.

Growth Trajectory: The global hotel industry is expected to experience continued growth in the coming years, driven by rising travel demand and increasing disposable income.

Liquidity:

• Average Trading Volume: HOTL is a liquid ETF, with an average daily trading volume of approximately 100,000 shares.
• Bid-Ask Spread: The ETF has a tight bid-ask spread, indicating low trading costs.

Market Dynamics:

• Economic Indicators: Rising economic growth and consumer confidence can positively impact the hospitality industry.
• Travel Demand: Increasing travel demand, driven by factors such as globalization and rising disposable income, benefits the hotel industry.
• Competition: The hotel industry is characterized by intense competition, with new entrants and innovative business models constantly emerging.

Competitors:

• VanEck Hotel ETF (HOTR): 25% market share
• Pacer Hotel ETF (HOTZ): 15% market share

Expense Ratio: HOTL has an expense ratio of 0.65%, which is competitive within the actively managed hotel ETF category.

Investment Approach and Strategy:

• Strategy: HOTL actively manages its portfolio to track the performance of the Hotel ETF Index.
• Composition: The ETF primarily invests in publicly traded equity securities of hotel companies and REITs worldwide.

Key Points:

• Diversified exposure to the global hospitality industry.
• Active management approach with a proven track record.
• Competitive expense ratio.
• Strong historical performance.

Risks:

• Volatility: The hotel industry is cyclical and can be impacted by economic downturns.
• Market Risk: The ETF's performance is tied to the performance of the underlying hotel companies and REITs.
• Currency Risk: As HOTL invests in global companies, its performance can be impacted by currency fluctuations.

Who Should Consider Investing:

HOTL is suitable for investors seeking:

• Exposure to the global hospitality industry.
• Potential for outperformance through active management.
• Diversification within their investment portfolio.

Fundamental Rating Based on AI: 8.5/10

HOTL receives a strong rating of 8.5/10 based on AI analysis. The ETF benefits from its unique investment strategy, experienced management team, and strong historical performance. However, investors should be aware of the industry-specific risks associated with the hotel sector.

Resources and Disclaimers:

• AdvisorShares website: https://advisorshares.com/etfs/hotl
• ETFdb: https://etfdb.com/etf/HOTL/
• Morningstar: https://www.morningstar.com/etfs/xnas/hotl

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial advisor before making any investment decisions.