Weakness in AdvisorShares Gerber Kawasaki ETF's People and Process Pillar ratings limits this strategy to a Morningstar Medalist Rating of Negative. The portfolio maintains a cost advantage over competitors, priced within the second-cheapest fee quintile among peers.  

 The team managing the strategy earns a Low People Pillar. The strategy gets a Low Process Pillar rating.  High liquidity exposure is attributed to stocks with a high trading volume, lending managers more flexibility. And high volatility exposure is rooted in stocks that have a higher standard deviation of returns. The strategy's parent organization still has a way to go to reach the industry standard, evidenced by a bench of unseasoned portfolio managers and low portfolio manager retention. As a result, the firm obtains a Low Parent Pillar rating.

Analyst Rating

NVIDIA

MGM Resorts

Microsoft

Alphabet

Lennar

Disney

Apple

LPL Financial Hlds

Netflix

Trane Technologies plc

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category benchmark on a risk-adjusted basis over the long term. AdvisorShares Gerber Kawasaki ETF earns a Low Process Pillar rating. 

The predominant detractor from the rating is the parent firm's five-year retention rate of 15%, which suggests it could do more to retain its portfolio managers. Management team experience, which averages three years at this fund, also holds the rating back. The parent firm's five-year risk-adjusted success ratio of 50% further limits the process. The measure indicates the percentage of a firm's funds that survived and outperformed their respective category's median Morningstar Risk-Adjusted Return for the period. The parent's modest success ratio suggests that the firm could do better across its fund lineup.

 This strategy tends to hold smaller, more growth-oriented companies compared with its average peer in the Large Growth Morningstar Category. Analyzing additional factors, this strategy has held more highly liquid stocks compared to Morningstar Category Peers in the past few years. More-liquid assets contribute to more-flexible exit strategies without price changes and tend to be a ballast during market selloffs. For example, if the portfolio faces successive redemptions in a short period of time, it will be less likely to experience a significant loss. In recent months, the strategy was more exposed to the Liquidity factor compared with its Morningstar Category peers as well. This strategy has also exhibited a tilt toward high-volatility stocks over these years, meaning it has invested in companies that have a higher historical standard deviation of returns. This orientation tends to pay off most prominently when markets are hot. Compared with category peers, the strategy also had more exposure to the Volatility factor in the most recent month. Additionally, the strategy had more exposure to high-quality stocks compared with Morningstar Category peers in recent months. Though it may trail peers during an economic boom, this orientation contributes to helping it weather periods of economic stress better.  More information on a fund and its respective category's factor exposure can be found in the Factor Profile module within the Portfolio section. 

 The portfolio is overweight in consumer cyclical and communication services relative to the category average by 8.5 and 4.0 percentage points, respectively. The sectors with low exposure compared to category peers are technology and consumer defensive, underweight the average by 4.4 and 2.9 percentage points of assets, respectively. The portfolio is positioned across 30 holdings and is relatively top-heavy. Of the strategy's assets, 62.5% are concentrated within the top 10 holdings, compared to the typical peer's 54.8%. And finally, in terms of portfolio turnover, on a year-over-year basis, 48% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.

Process

AdvisorShares Gerber Kawasaki ETF earns a Low People Pillar rating. The main detractor from the rating is the parent firm's five-year retention rate of 15%, which suggests it could do more to retain its portfolio managers. Management team experience, which averages three years at this fund, also weakens the team. The parent firm's five-year success ratio of 50% further weakens the team. The measure indicates the percentage of a firm's funds that survived and beat their respective category's median return for the period. The parent's relatively low success ratio suggests that the firm could do better across its fund lineup.

People

AdvisorShares fails to meet industry-standard stewardship qualities, culminating in a Low Parent Pillar rating. A notable weakness of AdvisorShares is the inexperience of its longest-tenured managers compared with other asset managers. Managing capital through a full market cycle is a challenging prospect for seasoned managers, but with only about four years of average asset-weighted tenure, there's cause for concern. A detractor from the firm's rating is its lower-than-average portfolio management retention over the past five years, as elevated turnover bears watching. The firm's risk-adjusted performance compares similarly to competitors. Across all open-end and exchange-traded funds, the firm's average five-year Morningstar Rating is 3.5 stars, which is about standard.

Parent

AdvisorShares Gerber Kawasaki ETF

GK is an actively managed fund that offers exposure to a portfolio of US growth stocks across multiple investment themes believed to represent top thematic macro opportunities.

First Trust S-Network Streaming and Gaming ETF

ALPS Global Travel Beneficiaries ETF

Invesco S&P 500 Equal Weight Communication Services ETF

Communication Services Select Sector SPDR Fund

Look into how Disney heavy ETFs performed after its Q1 earnings.

Focus on Disney ETFs Post Q1 Earnings Beat

Advisorshares Hotel ETF

Advisorshares Restaurant ETF

AdvisorShares Vice ETF

BETHESDA, Md., March 10, 2022 /PRNewswire/ -- AdvisorShares, a leading sponsor of actively managed exchange-traded funds (ETFs), today announced that options are now listed for trading for the following ETFs: AdvisorShares Hotel ETF (Ticker: BEDZ) AdvisorShares Restaurant ETF (Ticker: EATZ) AdvisorShares Gerber Kawasaki ETF (Ticker: GK) AdvisorShares Alpha DNA Equity Sentiment ETF (Ticker: SENT) AdvisorShares Vice ETF (Ticker: VICE) These ETFs join other AdvisorShares ETFs with options listed including the AdvisorShares Pure US Cannabis ETF (Ticker: MSOS), AdvisorShares Pure Cannabis ETF (Ticker: YOLO) and AdvisorShares Ranger Equity Bear ETF (Ticker: HDGE).

Options Listed for AdvisorShares ETFs

iShares Global Clean Energy ETF

On this week's episode of ETF Prime, host Nate Geraci is joined by ETF Trends' CIO and Director of Research, Dave Nadig, to discuss a variety of ETF-related questions, as well as the role of social media regarding ETFs. Plus, President and CEO of Gerber Kawasaki Wealth & Investment Management, Ross Gerber, spotlights the AdvsiorShares Gerber Kawasaki [.

ETF Prime: Dave Nadig On The Role of Social Media

On Thursday, Gerber Kawasaki Wealth & Investment Management, a registered investment advisor (RIA) and a leading independent financial advisory firm, announced that the AdvisorShares Gerber Kawasaki ETF (GK) will begin trading July 2 and be listed on the New York Stock Exchange Arca, Inc. In contrast to many broad index ETFs, the actively managed fund [...] The post Gerber Kawasaki Wealth & Investment Management Launches ETF, ‘GK' appeared first on ETF Trends.

Gerber Kawasaki Wealth & Investment Management Launches ETF, ‘GK'

BETHESDA, Md., July 1, 2021 /PRNewswire/ -- AdvisorShares, a leading sponsor of actively managed exchange-traded funds (ETFs), today announced that the AdvisorShares Gerber Kawasaki ETF (Ticker: GK) will begin trading on Friday, July 2, 2021. GK is sub-advised by Los Angeles-based Gerber Kawasaki Wealth and Investment Management with its president and CEO Ross Gerber serving as the ETF's portfolio manager.

News for AdvisorShares Gerber Kawasaki ETF ETF (GK)