VICE ETF · AdvisorShares Vice ETF

Diversification stands among the most important attributes of an investment portfolio. While finding true negative or non-correlation among investments remains challenging, building a diversified portfolio during a normal market environment can allow an easier path. Recessions represent a natural and cyclical part of markets. Consumer spending slows significantly during recessionary environments: no new cars, less retail purchases and generally less of everything. However, even in the toughest economic environments, people still historically spend on their leisure, habits and vices. Alcohol and tobacco have been often viewed as potentially recession-resistant areas simply because individuals take pleasure in such related activities during both good times and bad times. The investment thesis of the AdvisorShares Vice ETF (Ticker: ACT) believes that investing in select alcohol and tobacco companies will provide continued growth and long-term performance across all types of market environments. With evolving societal and regulatory landscapes, the upside potential of cannabis as a new investment avenue has emerged to complement the historically resilient characteristics of alcohol and tobacco. While cannabis represents a new investment frontier, proper caution and due diligence must be exercised surrounding its regulations and risks. ACT only invests in cannabis-related companies conducting federally legal business per the United States government.