AdvisorShares's longest-tenured managers do not have the same experience as teams at other firms. Specifically, average asset-weighted tenure within the firm is only five years, building concern in the group's ability to manage capital through a full market cycle effectively. The firm’s lineup has demonstrated industry-average durability. Its five-year risk-adjusted success ratio is 50%, meaning that 50% of strategies have both survived and beaten their respective category median on a risk-adjusted basis. A firm's success ratio indicates relative performance and provides insight into a firm’s discipline around investment strategy and product development. The firm charges fees on its open-end and exchange-traded funds that are on par with category peers. On average, fees on its funds are within the middle quintile, giving it neither an advantage nor disadvantage compared with the competition.
AdvisorShares fails to meet industry-standard stewardship qualities, culminating in a Low Parent Pillar rating.
United States