A Strategy for All Seasons: Managing Uncertainty

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:

1. 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.
2. Systematic Income: The covered call overlay provides a consistent stream of revenue, intended to lower the overall risk profile of the investment.
3. 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.

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.