According its press release on the matter, AdvisorShares said it would "lower its total net expense ratio to 0.99%, capping shareholder costs from exceeding that amount. The reduction includes decreasing the fund's management fee to 0.80%. As the actively managed GIVE increases its assets under management and becomes more operationally-efficient, the total expense ratio would align with the 0.80% management fee."
If you aren't familiar with the fund, GIVE is a very unique product that makes regular charitable contributions based on its asset levels. Fund literature states that GIVE's sub-advisors "contribute 25 basis points of their management fee to support the GlobalECHO Foundation. AdvisorShares also contributes 15 basis points to support the Foundation and additional charities that make an impact across communities."
The fund's issuer commented on the change:
The AdvisorShares Global Echo ETF ( NYSE:GIVE ) was unchanged in premarket trading Thursday. Year-to-date, GIVE has gained 1.97%, versus a 2.70% rise in the benchmark S&P 500 index during the same period.
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