AdvisorShares Vice ETF (VICE)

Overview

The AdvisorShares Vice ETF (VICE) provides exposure to companies involved in the alcohol, tobacco, and cannabis industries, focusing on sectors often considered 'sin' or 'vice' stocks. It aims to capitalize on the potential growth and stability within these sectors.

Reputation and Reliability

AdvisorShares is known for its actively managed ETFs, offering unique investment strategies. Their reputation depends on the performance of their specialized funds.

Management Expertise

AdvisorShares employs experienced portfolio managers with specific expertise in the cannabis and vice-related industries.

Goal

The primary investment goal of VICE is to seek long-term capital appreciation by investing in companies that derive a significant portion of their revenue from the alcohol, tobacco, and cannabis industries.

Investment Approach and Strategy

Strategy: VICE is actively managed, meaning it does not track a specific index. The portfolio managers select stocks based on their assessment of growth potential and other fundamental factors within the vice industries.

Composition VICE predominantly holds stocks of companies involved in the alcohol, tobacco, and cannabis industries.

Market Share: Data not readily available to calculate specific market share. The niche focus limits direct comparison with broader sector ETFs.

Total Net Assets (AUM): 3750000

Key Competitors

• MJUS
• TOKE
• YOLO

Competitive Landscape

The competitive landscape includes other cannabis-focused ETFs. VICE distinguishes itself by including alcohol and tobacco, offering a broader 'vice' sector exposure. A disadvantage is the relatively small AUM compared to larger cannabis ETFs.

Historical Performance: Historical performance data unavailable for direct inclusion. Check financial data provider for past performance data.

Benchmark Comparison: The ETF does not track a specific benchmark, making direct comparison difficult. Performance should be compared against relevant sector indices and peer ETFs.

Expense Ratio: 0.99

Average Trading Volume

The ETF has a low average trading volume, which could increase trading costs and impact execution.

Bid-Ask Spread

The bid-ask spread varies depending on market conditions and trading volume, but generally could be wider than more liquid ETFs.

Market Environment Factors

Legalization trends in cannabis, changing consumer preferences for alcohol and tobacco, and regulatory changes significantly affect VICE.

Growth Trajectory

The growth trajectory depends on the expansion of the cannabis industry and the stability of the alcohol and tobacco sectors. Changes to holdings are made based on market conditions and company performance.

Competitive Edge

VICE's competitive edge lies in its unique blend of alcohol, tobacco, and cannabis exposure, diversifying within the 'vice' sector. This combination caters to investors seeking exposure to industries traditionally considered recession-resistant. The active management strategy allows for adjustments based on market trends and regulatory changes. However, the smaller AUM and trading volume are potential drawbacks.

Volatility

The ETF can experience volatility due to the fluctuating nature of the cannabis industry and regulatory uncertainties.

Market Risk

Specific risks include regulatory changes affecting the cannabis, alcohol, and tobacco industries, as well as changing consumer preferences and potential health concerns.

Ideal Investor Profile

The ideal investor is risk-tolerant and seeks exposure to the vice industries, recognizing the potential for growth and the ethical considerations involved.

Market Risk

VICE is likely best for long-term investors seeking sector-specific exposure. It may not be suitable for passive index followers due to its active management and niche focus.

AdvisorShares Vice ETF (VICE) offers targeted exposure to companies in the alcohol, tobacco, and cannabis sectors. Its active management aims to capitalize on growth opportunities within these 'vice' industries. However, the ETF faces risks related to regulatory changes and market volatility. Its smaller AUM and low trading volume make it less liquid than larger sector ETFs, potentially affecting execution costs. It's suitable for risk-tolerant investors seeking specific sector exposure.

Data Sources:

• AdvisorShares website
• ETF.com
• Yahoo Finance

Disclaimers:

This analysis is for informational purposes only and does not constitute financial advice. Investment decisions should be based on individual circumstances and consultation with a financial advisor. Data may be subject to change.