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In an era of unpredictable global shifts, many investors are searching for a more balanced path—a way to participate in global growth while actively mitigating the impact of market downturns. The AdvisorShares STAR Global Buy-Write ETF (Ticker: VEGA) is designed to meet this need.
While many ETFs simply mirror an index, VEGA utilizes a sophisticated, multi-layered strategy that aims to manage risk and provide a more consistent experience for the long-term investor.
The Strategic Advantage of the "Buy-Write"
At the heart of VEGA is a buy-write (covered call) strategy. This approach seeks efficiency and income generation.
Think of it as generating an "income overlay" on top of traditional holdings. The fund holds a diversified portfolio of assets and sells call options against them. This process converts a portion of the market's potential movement into immediate cash flow.
- In Sideways Markets: The income from these options can provide a total return that exceeds the underlying price movement.
- In Declining Markets: The premiums collected act as a vital cushion, helping to offset a portion of the downward pressure on the portfolio.
- In Volatile Environments: Because option prices often increase when uncertainty rises, the fund can potentially capture higher premiums during periods of market stress.
A Robust, Three-Tiered Framework
VEGA distinguishes itself by moving beyond a single asset class. It employs a comprehensive framework to insulate the portfolio:
- Broad Global Allocation: As a "fund-of-funds," VEGA provides instant exposure to a diversified mix of U.S. equities, international markets, and fixed-income assets.
- Systematic Income: The covered call overlay provides a consistent stream of revenue, intended to lower the overall risk profile of the investment.
- Strategic Hedging: The fund has the flexibility to purchase protective puts—effectively a risk mitigation tool—to further insulate the portfolio against significant systemic shocks.
How Has VEGA Performed During Corrections?
Past performance is not indicative of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. One cannot invest directly in an index. For standardized and month end performance please visit VEGA.advisorshares.com. Market corrections are measured as declines in the S&P 500 of 10% or more from its peak.
Who is VEGA For?
VEGA is not intended to track the full upward trajectory of a singular, aggressive bull market; the same strategy that mitigates downside risk also caps maximum upside. Instead, it is a tool for disciplined, conservative growth.
By targeting a 0.65 beta, the fund aims to deliver roughly two-thirds of the broad market's movement. For investors transitioning toward a wealth-preservation phase or those seeking a "core" allocation that prioritizes stability, VEGA offers institutional-grade portfolio management within a transparent and liquid ETF structure.
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— For Institutional Investor Use Only. Not for Public Distribution —
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| Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus and summary prospectus, a copy of which may be obtained by visiting the Fund’s website at www.AdvisorShares.com. Please read the prospectus carefully before you invest. Foreside Fund Services, LLC, distributor. An investment in the Funds is subject to risk, including the possible loss of principal amount invested. The risks associated with each Fund include the risks associated with the underlying ETFs, which can result in higher volatility, and are detailed in each Fund’s prospectus and on each Fund’s webpage. AIL-887489-2026-02-17 |
