'Total return, when measuring performance, is the actual rate of return of an investment or a pool of investments over a given evaluation period. Total return includes interest, capital gains, dividends and distributions realized over a given period of time. Total return accounts for two categories of return: income including interest paid by fixed-income investments, distributions or dividends and capital appreciation, representing the change in the market price of an asset.'

Which means for our asset as example:- Compared with the benchmark SPY (67.7%) in the period of the last 5 years, the total return of % of AdvisorShares Pure Cannabis ETF is lower, thus worse.
- Compared with SPY (37%) in the period of the last 3 years, the total return, or increase in value of -49.4% is smaller, thus worse.

'The compound annual growth rate (CAGR) is a useful measure of growth over multiple time periods. It can be thought of as the growth rate that gets you from the initial investment value to the ending investment value if you assume that the investment has been compounding over the time period.'

Using this definition on our asset we see for example:- Looking at the compounded annual growth rate (CAGR) of % in the last 5 years of AdvisorShares Pure Cannabis ETF, we see it is relatively lower, thus worse in comparison to the benchmark SPY (10.9%)
- Looking at compounded annual growth rate (CAGR) in of -20.3% in the period of the last 3 years, we see it is relatively lower, thus worse in comparison to SPY (11.1%).

'Volatility is a rate at which the price of a security increases or decreases for a given set of returns. Volatility is measured by calculating the standard deviation of the annualized returns over a given period of time. It shows the range to which the price of a security may increase or decrease. Volatility measures the risk of a security. It is used in option pricing formula to gauge the fluctuations in the returns of the underlying assets. Volatility indicates the pricing behavior of the security and helps estimate the fluctuations that may happen in a short period of time.'

Applying this definition to our asset in some examples:- The volatility over 5 years of AdvisorShares Pure Cannabis ETF is %, which is lower, thus better compared to the benchmark SPY (21.4%) in the same period.
- During the last 3 years, the volatility is 47.7%, which is larger, thus worse than the value of 24.8% from the benchmark.

'Risk measures typically quantify the downside risk, whereas the standard deviation (an example of a deviation risk measure) measures both the upside and downside risk. Specifically, downside risk in our definition is the semi-deviation, that is the standard deviation of all negative returns.'

Which means for our asset as example:- Compared with the benchmark SPY (15.5%) in the period of the last 5 years, the downside volatility of % of AdvisorShares Pure Cannabis ETF is lower, thus better.
- Compared with SPY (17.9%) in the period of the last 3 years, the downside volatility of 32.5% is larger, thus worse.

'The Sharpe ratio (also known as the Sharpe index, the Sharpe measure, and the reward-to-variability ratio) is a way to examine the performance of an investment by adjusting for its risk. The ratio measures the excess return (or risk premium) per unit of deviation in an investment asset or a trading strategy, typically referred to as risk, named after William F. Sharpe.'

Which means for our asset as example:- Looking at the ratio of return and volatility (Sharpe) of in the last 5 years of AdvisorShares Pure Cannabis ETF, we see it is relatively lower, thus worse in comparison to the benchmark SPY (0.39)
- During the last 3 years, the Sharpe Ratio is -0.48, which is lower, thus worse than the value of 0.34 from the benchmark.

'The Sortino ratio, a variation of the Sharpe ratio only factors in the downside, or negative volatility, rather than the total volatility used in calculating the Sharpe ratio. The theory behind the Sortino variation is that upside volatility is a plus for the investment, and it, therefore, should not be included in the risk calculation. Therefore, the Sortino ratio takes upside volatility out of the equation and uses only the downside standard deviation in its calculation instead of the total standard deviation that is used in calculating the Sharpe ratio.'

Which means for our asset as example:- Looking at the excess return divided by the downside deviation of in the last 5 years of AdvisorShares Pure Cannabis ETF, we see it is relatively smaller, thus worse in comparison to the benchmark SPY (0.54)
- Compared with SPY (0.48) in the period of the last 3 years, the excess return divided by the downside deviation of -0.7 is smaller, thus worse.

'Ulcer Index is a method for measuring investment risk that addresses the real concerns of investors, unlike the widely used standard deviation of return. UI is a measure of the depth and duration of drawdowns in prices from earlier highs. Using Ulcer Index instead of standard deviation can lead to very different conclusions about investment risk and risk-adjusted return, especially when evaluating strategies that seek to avoid major declines in portfolio value (market timing, dynamic asset allocation, hedge funds, etc.). The Ulcer Index was originally developed in 1987. Since then, it has been widely recognized and adopted by the investment community. According to Nelson Freeburg, editor of Formula Research, Ulcer Index is “perhaps the most fully realized statistical portrait of risk there is.'

Applying this definition to our asset in some examples:- Looking at the Downside risk index of in the last 5 years of AdvisorShares Pure Cannabis ETF, we see it is relatively lower, thus better in comparison to the benchmark SPY (8.47 )
- Compared with SPY (10 ) in the period of the last 3 years, the Ulcer Ratio of 48 is larger, thus worse.

'A maximum drawdown is the maximum loss from a peak to a trough of a portfolio, before a new peak is attained. Maximum Drawdown is an indicator of downside risk over a specified time period. It can be used both as a stand-alone measure or as an input into other metrics such as 'Return over Maximum Drawdown' and the Calmar Ratio. Maximum Drawdown is expressed in percentage terms.'

Using this definition on our asset we see for example:- Looking at the maximum reduction from previous high of days in the last 5 years of AdvisorShares Pure Cannabis ETF, we see it is relatively smaller, thus worse in comparison to the benchmark SPY (-33.7 days)
- During the last 3 years, the maximum reduction from previous high is -86 days, which is lower, thus worse than the value of -33.7 days from the benchmark.

'The Drawdown Duration is the length of any peak to peak period, or the time between new equity highs. The Max Drawdown Duration is the worst (the maximum/longest) amount of time an investment has seen between peaks (equity highs) in days.'

Applying this definition to our asset in some examples:- The maximum days below previous high over 5 years of AdvisorShares Pure Cannabis ETF is days, which is lower, thus better compared to the benchmark SPY (231 days) in the same period.
- During the last 3 years, the maximum days below previous high is 457 days, which is higher, thus worse than the value of 231 days from the benchmark.

'The Average Drawdown Duration is an extension of the Maximum Drawdown. However, this metric does not explain the drawdown in dollars or percentages, rather in days, weeks, or months. The Avg Drawdown Duration is the average amount of time an investment has seen between peaks (equity highs), or in other terms the average of time under water of all drawdowns. So in contrast to the Maximum duration it does not measure only one drawdown event but calculates the average of all.'

Using this definition on our asset we see for example:- Compared with the benchmark SPY (54 days) in the period of the last 5 years, the average time in days below previous high water mark of days of AdvisorShares Pure Cannabis ETF is lower, thus better.
- Compared with SPY (58 days) in the period of the last 3 years, the average days under water of 173 days is greater, thus worse.

Historical returns have been extended using synthetic data.
[Show Details]

- Note that yearly returns do not equal the sum of monthly returns due to compounding.
- Performance results of AdvisorShares Pure Cannabis ETF are hypothetical, do not account for slippage, fees or taxes, and are based on backtesting, which has many inherent limitations, some of which are described in our Terms of Use.