Overview

How QEH Works

The AdvisorShares QAM Equity Hedge ETF (NYSE Arca: QEH) seeks investment results that exceed the risk adjusted performance of approximately 50% of the long/short equity hedge fund universe as defined by the HFRI Equity Hedge Total Index constituents. QEH is managed by Commerce Asset Management (“Portfolio Manager”).

Performance — Quarter-End

About the Portfolio Manager

4800 Montgomery Lane, Suite 150 Bethesda, Maryland 20814 1.877.843.3831

There is no guarantee that the Fund will achieve its investment objective. An investment in the Fund is subject to risk, including the possible loss of principal amount invested. The Fund may invest in derivatives to gain market exposure, enhance returns or hedge against market declines. Derivatives may be riskier than other types of investments because they may be more sensitive to changes in economic or market conditions than other types of investments and could result in losses that significantly exceed the Fund’s original investment. The Fund may participate in leveraged transactions to include selling securities short which create the risk of magnified capital losses. Under certain market conditions, short sales can increase the volatility and decrease the liquidity of certain securities or positions and may lower the Fund’s return or result in a loss. The Fund is subject to the underlying ETFs and ETNs risks that comprise this “fund of funds. ETNs are senior, unsecured unsubordinated debt securities issued by an underwriting bank that are designed to provide returns that are linked to a particular benchmark less investor fees. ETNs have a maturity date and generally are backed only by the creditworthiness of the issuer. As a result, the value of an ETN may be influenced by time of maturity, level of supply and demand for the ETN, volatility and lack of liquidity in the underlying market (e.g. the commodities market), changes in the applicable interest rates, and changes in the issuer’s credit rating and economic, legal, political or geographic events that affect the referenced market. This Fund may not be suitable for all investors.

The HFRI Equity Hedge Index and HFR are the trademarks and service marks of Hedge Fund Research, Inc. (“HFR”) and are used under license from HFR. HFR is in no way related or connected to or affiliated with Commerce Asset Management, LLC or the Licensee Fund. HFR has not participated in the formation of the Licensee Fund, and HFR does not endorse, approve or recommend investing in the Licensee Fund.