EATZ Profile
The AdvisorShares Restaurant ETF is an actively managed exchange-traded fund that focuses on capturing the growth potential of the restaurant industry by investing at least 80% of its net assets in securities of companies where at least half of their revenue is generated from restaurant operations. The fund primarily targets U.S. exchange-listed equity securities, including common and preferred stocks, as well as American Depositary Receipts (ADRs), to provide investors with a diversified yet focused exposure to the restaurant sector. By concentrating on companies that are deeply entrenched in the restaurant business, the fund aims to offer a direct play on consumer trends and spending in this industry.
The ETF is designed to capitalize on the dynamic nature of the restaurant industry, which is influenced by consumer preferences, economic conditions, and innovation in dining experiences. The fund's management team uses an active investment approach to select companies that are expected to benefit from these trends, including fast-food chains, casual dining establishments, and emerging restaurant brands. This approach allows the fund to adapt to changes in the market, potentially providing higher returns than a passive index-based strategy.
A key feature of the AdvisorShares Restaurant ETF is its concentration in the Hotels, Restaurants & Leisure Industry within the Consumer Discretionary Sector, with at least 25% of its investments allocated to this specific industry group. This concentration reflects the fund's commitment to providing targeted exposure to the restaurant sector, while also acknowledging the interconnected nature of restaurants with the broader leisure and hospitality industries. The fund’s focus on consumer discretionary companies means it can be more sensitive to changes in consumer spending patterns, making it a potentially valuable tool for investors looking to capitalize on economic cycles.
As a non-diversified fund, the AdvisorShares Restaurant ETF may invest a larger percentage of its assets in a smaller number of companies or industries compared to more diversified funds. This concentrated approach can lead to higher volatility but also allows the fund to take advantage of specific opportunities within the restaurant industry. Managed by a team with expertise in consumer discretionary sectors, the ETF offers investors a unique opportunity to gain exposure to the evolving landscape of the restaurant business, while also participating in the potential growth of leading and emerging restaurant brands.
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