AdvisorShares HVAC and Industrials ETF

AdvisorShares HVAC and Industrials ETF (HVAC) is an actively managed fund holding a concentrated group of stocks tied to heating, ventilation and cooling systems and the wider industrials sector. It offers a hand-picked bet on that niche rather than a broad sector index, but at a price: 0.99% a year versus a 0.28% average for six similar funds. Its short record includes a 30.7% drop from June 22 to October 23, 2026.

• The deepest fall in its price history was 30.7% (Jun 22, 2026 to Oct 23, 2026), not yet recovered.

No distribution history is available for this fund.

As of Jun 30, 2026, the fund held 22 securities; the ten largest made up 56.27% of assets.

• Over the three months to Jun 30, 2026, investors added a net $7.0M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +16.43%, +1.09%, +4.13%.

HVAC does not track an index; AdvisorShares picks the stocks. Normally at least 80% of net assets go to two groups. The first is companies that draw a significant share of revenue or assets from making, servicing or installing heating, ventilation and cooling systems. The second is industrials companies such as capital goods makers, construction and engineering firms, and transportation providers. It owns U.S.-listed stocks of any size, plus American Depositary Receipts (ADRs, U.S.-traded shares representing foreign companies).

The manager favors companies with dominant market positions or unusual room to grow, using outside analyst ratings and stock-rating tools. At times it picks out-of-favor stocks it sees as underpriced. It may exit a holding that looks overvalued, to fund a better idea or to cap position size; there is no index rebalancing calendar. Turnover was 174%, per the prospectus filed October 28, 2026, meaning it traded the equivalent of its whole portfolio about 1.7 times, adding trading costs outside the expense ratio.

It concentrates more than 25% of assets in the capital goods industry group and is non-diversified, so it can put more in one company than a diversified fund. As of June 30, 2026, it held 22 companies, 56% in the top 10, led by Sterling Infrastructure (8.6%), Comfort Systems USA (7.2%) and Jabil (6.0%). It is not leveraged and held no derivatives.

• HVAC charges 0.99% a year, versus an average of 0.28% for the similar funds below (7th of 7, cheapest first).
• Of that, 0.6% is the management fee; the rest covers other fund expenses.
• The fee includes a 1.07% waiver from the adviser, which may end.
• Using the prospectus's standard example, $10,000 invested would cost about $101 in the first year and $2,304 over 10 years (assuming a 5% annual return).

Its concentrated, actively managed stake in HVAC and industrial stocks, 0.99% fee and steep price swings point to a small add-on rather than a foundation.

HVAC could add a concentrated stake in HVAC and industrial stocks alongside broader core holdings. It launched February 4, 2025, so it has no record through the 2008, 2020 or 2022 downturns and no full calendar year of official results. Its price fell 30.7% from June 22 to October 23, 2026, and had not recovered as of October 27, 2026. Its beta of 2.21 means it tended to move more than twice as much as the broad market. A retiree drawing cash in a stretch like that would lock in losses.

It is not an income fund: its trailing 12-month yield was 0% as of October 27, 2026, and any distributions are annual. Its 0.99% annual expense ratio compares with a 0.28% average for six similar funds. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).