AdvisorShares Launches HVAC and Industrials ETF (Ticker: HVAC), Introducing a New Opportunity for Growth in Thematic Investing

Rhea-AI Summary

AdvisorShares has launched the first ETF focused exclusively on the HVAC industry, trading under the ticker HVAC. The actively managed ETF targets U.S.-listed equities and American depositary receipts of companies in the heating, ventilation, and air conditioning sector, including system manufacturers, service providers, and installers.

The fund aims for long-term capital appreciation in a high-growth sector, offering targeted exposure to HVAC companies rather than diluted exposure through broader market indices. AdvisorShares CEO Noah Hamman highlighted the industry's rapid growth and resilience, citing construction growth, energy efficiency trends, and climate resilience as key drivers.

The launch is accompanied by a detailed whitepaper titled 'The Heat is On: Innovation, Stability, and Growth in the HVAC Industry.' HVAC joins other successful thematic ETFs from AdvisorShares, including the Hotel ETF (BEDZ) and Restaurant ETF (EATZ), both carrying five-star Morningstar ratings for their overall risk-adjusted performance.

Positive

• First-mover advantage as the only ETF focused exclusively on the HVAC industry
• BEDZ and EATZ ETFs achieved 5-star Morningstar ratings for risk-adjusted performance
• Targets a high-growth sector driven by construction, energy efficiency, and climate resilience

Negative

• Exposure to industry-specific risks including regulatory compliance costs
• Vulnerability to economic slowdowns and technological obsolescence
• Subject to real estate market fluctuations and infrastructure project delays

Becomes the first and only ETF dedicated to investing in the expanding and vital industry supporting modern infrastructure and daily life

BETHESDA, Md., Feb. 4, 2025 /PRNewswire/ -- AdvisorShares, a leading sponsor of actively managed exchange-traded funds (ETFs), today announced the launch of the AdvisorShares HVAC and Industrials ETF (Ticker: HVAC). Beginning trading today, the actively managed HVAC becomes the first ETF to focus exclusively on American companies within the heating, ventilation and air conditioning (HVAC) industry.  

HVAC seeks long-term capital appreciation by investing in a focused portfolio of U.S.-listed equities and American depositary receipts of companies in the HVAC investment universe, including system manufacturers, service providers and installers. The ETF is designed for investors seeking alpha in a high-growth sector. While select HVAC stocks are included in funds tracking broader market indices, their performance is often diluted by exposure to unrelated sectors. This ETF provides targeted, high-conviction exposure to the HVAC space, offering the potential for differentiated returns.

"The HVAC industry continues to demonstrate rapid growth and resilience with an established history of outperforming the broader market," said Noah Hamman, CEO of AdvisorShares. "We believe the HVAC ETF provides a compelling opportunity for investors to access targeted exposure to a sector primed for long-term expansion, driven by increasing construction, energy efficiency trends, and climate resilience—all delivered in a fully transparent and efficient ETF investment vehicle."

To showcase the investment opportunity in HVAC and Industrials, AdvisorShares has published a detailed whitepaper, "The Heat is On: Innovation, Stability, and Growth in the HVAC Industry," which examines the history of the HVAC industry, its role in capital goods, the case for investing in HVAC stocks, including historical performance and projected growth for the space. To download and view the whitepaper, please visit www.hvac.advisorshares.com.

HVAC joins other notable thematic offerings in the AdvisorShares ETF suite including the AdvisorShares Hotel ETF (Ticker: BEDZ) and the AdvisorShares Restaurant ETF (Ticker: EATZ) which each carry five-star Morningstar ratings for their overall risk-adjusted performance*.

Today, February 4, at 1:00pm EST, AdvisorShares will host a live webinar with their experts to discuss the HVAC investment space, its role in client portfolios and the long-term investment potential of HVAC-related industries. You may register and attend this webinar by visiting advisorshares.com/events/webinars/HVAC.

For more information on the AdvisorShares HVAC and Industrials ETF (HVAC), please visit www.hvac.advisorshares.com.

*BEDZ earned five stars for its overall rating out of 48 funds and five stars for its three-year 48 funds based on risk-adjusted returns in Morningstar's US Fund Consumer Cyclical category, as of December 31, 2024. EATZ earned five stars for its overall rating out of 48 funds and five stars for its three-year rating out of 48 funds based on risk-adjusted returns in Morningstar's US Fund Consumer Cyclical category, as of December 31, 2024

About AdvisorShares

AdvisorShares is a leading provider of actively managed ETFs. For financial professionals and investors requesting more information, call 1-877-843-3831 or visit advisorshares.com. Follow @AdvisorShares on X and LinkedIn for more insights.

Before investing you should carefully consider the Fund's investment objectives, risks, charges and expenses. This and other information are in the prospectus, a copy of which may be obtained by visiting the Fund's website at www.advisorshares.com. Please read the prospectus and summary prospectus carefully before you invest.

Foreside Fund Services, LLC, distributor. 

An investment in the Fund is subject to risk, including the possible loss of principal amount invested. There is no guarantee that the Fund will achieve its investment objective.

HVAC Companies Risk. HVAC companies are subject to a variety of factors that may adversely affect their business or operations, including costs associated with environmental and other regulations, the effects of an economic slowdown, surplus capacity or technological obsolescence, industry competition, labor relations, rate caps or rate changes and other factors. Certain HVAC companies may be subject to extensive regulation by various governmental authorities. The costs of complying with governmental regulations, delays or failures to receive required regulatory approvals or the enactment of new adverse regulatory requirements may adversely affect HVAC companies. HVAC companies may also be affected by service interruption and/or legal challenges due to environmental, operational or other conditions or events, and the imposition of special tariffs and changes in tax laws, regulatory policies and accounting standards. There is also the risk that corruption may negatively affect publicly-funded infrastructure projects, especially in non-U.S. markets, resulting in work stoppage, delays and cost overruns. Other risks associated with HVAC companies include uncertainties resulting from such companies' diversification into new domestic and international businesses, as well as agreements by any such companies linking future rate increases to inflation or other factors not directly related to the actual operating profits of the enterprise. HVAC companies also can be significantly affected by the national, regional and local real estate markets.

American Depositary Receipt Risk. ADRs have the same currency and economic risks as the underlying non-U.S. shares they represent. They are affected by the risks associated with non-U.S. securities, such as changes in political or economic conditions of other countries, changes in the exchange rates of, or exchange control regulations associated with, foreign currencies, and differing accounting, auditing, financial reporting, and legal standards and practices. In addition, investments in ADRs may be less liquid than the underlying securities in their primary trading market.

Equity Risk. The prices of equity securities rise and fall daily. These price movements may result from factors affecting individual issuers, industries or the securities market as a whole. In addition, equity markets tend to move in cycles, which may cause stock prices to fall over short or extended periods of time.

Alpha. One of the most commonly quoted indicators of investment performance, alpha, is defined as the excess return on an investment relative to the return on a benchmark index.

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SOURCE AdvisorShares

FAQ

What is the ticker symbol for AdvisorShares' new HVAC ETF?

The new AdvisorShares HVAC and Industrials ETF trades under the ticker symbol HVAC.

What is the Morningstar rating for AdvisorShares Hotel ETF (BEDZ) as of December 2024?

BEDZ earned five stars for its overall rating out of 48 funds in Morningstar's US Fund Consumer Cyclical category as of December 31, 2024.

How has the AdvisorShares Hotel ETF (BEDZ) performed in its category?

BEDZ received five stars for both its overall and three-year ratings in Morningstar's US Fund Consumer Cyclical category, based on risk-adjusted returns.

What types of companies does the new HVAC ETF invest in?

The HVAC ETF invests in U.S.-listed equities and American depositary receipts of HVAC system manufacturers, service providers, and installers.

When did AdvisorShares launch its HVAC and Industrials ETF?

AdvisorShares launched the HVAC and Industrials ETF on February 4, 2025.