AdvisorShares STAR Global Buy-Write ETF

Frequently Asked Questions About VEGA

What does VEGA invest in?

The AdvisorShares STAR Global Buy-Write ETF (VEGA) is an actively managed investment vehicle that primarily operates as a "fund of funds." It allocates its capital to other exchange-traded funds (ETFs) and exchange-traded notes (ETNs) that are designed to track a diverse range of worldwide market benchmarks and industry segments. The selection of these underlying investments adheres to specific criteria set by the fund's sub-advisor. Additionally, VEGA has the option to invest in exchange-traded products that offer direct exposure to commodities or currencies, provided they meet the same rigorous selection standards. All such exchange-traded products, encompassing ETFs, ETNs, and commodity/currency instruments, are registered under the Securities Act of 1933.

What is the expense ratio of VEGA?

AdvisorShares STAR Global Buy-Write ETF (VEGA) charges an expense ratio of 1.25%. This is the annual fee deducted from fund assets to cover management and operations.

What is VEGA's distribution yield?

VEGA's trailing-twelve-month yield is 1.27%, calculated from the sum of distributions over the past year divided by the current price.

How does VEGA's covered-call strategy work?

VEGA sells call options against the stocks (or index) it holds, collecting premium income that gets passed through to shareholders as distributions. The strategy generates above-market income in flat or rising markets but caps upside — when the underlying rallies past the strike, the gains above the strike go to the option buyer, not the fund.

How big is VEGA?

AdvisorShares STAR Global Buy-Write ETF (VEGA) manages $89.2M in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure — funds below ~$50M are at higher risk of liquidation.

Is VEGA actively managed or an index fund?

VEGA's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.