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(AADR) Dorsey Wright ADR ETF

Overview

AADR Shareholders: Please check your email or physical mail for a proxy statement and Notice of a Special Meeting of AADR shareholders asking for your vote on two proposals. You can see the proxy statement here. Your vote is extremely important, even if you only own a few of the Fund’s shares. If you have questions, please call an AdvisorShares Investment Consultant at 1.877.843.3831.

How AADR Works

The AdvisorShares Dorsey Wright ADR ETF (NYSE Arca: AADR) seeks long-term capital appreciation above international benchmarks such as the MSCI EAFE Index and the BNY Mellon Classic ADR Index. AADR is managed by Dorsey, Wright & Associates, LLC (“Portfolio Manager”). AADR’s investment focus follows the Portfolio Manager’s core philosophy of relative strength. Relative strength investing involves buying securities that have appreciated in price more than the other securities in the investment universe and holding those securities until they experience sufficient underperformance. The strategy is entirely based on market movement of the securities and there is no company fundamental data involved in the analysis. The Portfolio Manager’s process is systematic and removes emotion from the day-to-day decision making.

In implementing AADR’s strategy, the Portfolio Manager takes into account current sector and industry group allocations in order to keep the strategy diversified. There is no consideration given to the allocation between developed and emerging markets; the strategy will allocate between the two depending on global price trends.

Fund Documents

Portfolio Manager Commentaries

AADR in the News

The following reprints should not be construed as an offer to sell or a solicitation of an offer to buy shares of any other funds. They are provided for informational purposes for AdvisorShares only.

Performance -Month-End

AADR Performance History (%) as of 11/30/2016
 NAVMarket Price ReturnMSCI EAFE IndexBNY Mellon Classic ADR Index
1 Month-2.13-1.93-1.99-2.13
3 Months1.401.56-2.82-2.52
YTD6.456.11-2.340.88
1 Year4.404.34-3.66-1.36
3 Years3.823.93-2.32-2.22
5 Years7.998.095.624.58
Since Inception
(7/20/2010, Annualized)
8.558.585.174.24

Performance -Quarter-End

AADR Performance History (%) as of 09/30/2016
 NAVMarket Price ReturnMSCI EAFE IndexBNY Mellon Classic ADR Index
1 Month0.991.261.231.45
3 Months4.024.336.436.85
YTD6.025.801.734.99
1 Year12.6313.016.529.00
3 Years5.265.370.480.44
5 Years10.1310.257.397.05
Since Inception
(7/20/2010, Annualized)
8.728.776.015.04

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Returns less than one year are not annualized.

The performance for periods before 09/01/16 is for the AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF (the “Predecessor Fund”) which was renamed the AdvisorShares Dorsey Wright ADR ETF on 09/01/16. The Predecessor Fund had different portfolio managers and investment strategy than the Dorsey Wright ADR ETF. Performance prior to 09/01/16 reflects the Fund’s performance prior to the change in manager and investment strategy and may not be indicative of the Fund’s performance under the new manager and revised investment strategy. Performance since 09/01/16 reflects actual Dorsey Wright ADR ETF performance.

The MSCI EAFE Index is an unmanaged free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the US & Canada. One cannot invest directly in an index.

The BNY Mellon Classic ADR Index combines the over the counter (OTC) traded ADRs with exchange-listed ADRs bringing transparency to the available universe of American Depositary Receipts, including those issued by many of the world's premier companies. One cannot invest directly in an index.

Fund Distributions

Ex-DateRecord DatePay DateCash DivST Cap GainLT Cap GainReturn of CapitalTotal Distribution
12-23-16
12-28-16
12-30-16
-----
09-26-16
09-28-16
09-30-16
$0.1183$0.00$0.00$0.00$0.1183/per share
06-24-16
06-28-16
06-30-16
$0.0600$0.00$0.00$0.00$0.0600/per share
03-24-16
03-29-16
03-31-16
$0.0243$0.00$0.00$0.00$0.0243/per share
12-24-15
12-29-15
12-31-15
$0.0061$0.00$0.00$0.00$0.0061/per share
09-24-15
09-28-15
09-30-15
$0.1054$0.00$0.00$0.00$0.1054/per share
06-24-15
06-26-15
06-30-15
$0.0769$0.00$0.00$0.00$0.0769/per share
03-25-15
03-27-15
03-31-15
$0.1230$0.00$0.00$0.00$0.1230/per share
12-24-14
12-29-14
12-31-14
$0.011$0.00$0.00$0.00$0.011/per share
09-24-14
09-26-14
09-30-14
$0.021$0.00$0.00$0.00$0.021/per share
06-24-14
06-26-14
06-30-14
$0.115$0.00$0.00$0.00$0.115/per share
03-25-14
03-27-14
03-31-14
$0.036$0.00$0.00$0.00$0.036/per share
12-24-13
12-27-13
12-31-13
$0.009$0.00$0.00$0.00$0.009/per share
09-24-13
09-26-13
09-30-13
$0.014$0.00$0.00$0.00$0.014/per share
06-24-13
06-26-13
06-28-13
$0.102$0.00$0.00$0.00$0.102/per share
03-22-13
03-26-13
03-28-13
$0.003$0.00$0.00$0.00$0.003/per share
12-24-12
12-27-12
12-31-12
$0.056$0.00$0.00$0.00$0.056/per share
09-24-12
09-26-12
09-28-12
$0.008$0.00$0.00$0.00$0.008/per share
06-25-12
06-27-12
06-29-12
$0.039$0.00$0.00$0.00$0.039/per share
03-26-12
03-28-12
03-30-12
$0.00$0.00$0.00$0.00$0.00/per share
12-23-11
12-28-11
12-30-11
$0.073$0.122$0.00$0.00$0.195/per share
09-26-11
09-28-11
09-30-11
$0.00$0.00$0.00$0.00$0.00/per share
06-24-11
06-28-11
06-30-11
$0.02$0.00$0.00$0.00$0.02/per share
03-25-11
03-29-11
03-31-11
$0.00$0.00$0.00$0.00$0.00/per share
12-23-10
12-28-10
12-31-10
$0.07$0.00$0.00$0.00$0.07/per share
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Why Invest in AADR

  • As a complement to the MSCI EAFE - Broad based indexes by their nature have the good and the bad, the strong and the weak, AADR offers the opportunity to add alpha with a historically successful trend following process that owns the strongest companies while eliminating the weakest performers.
  • For Portfolio Diversification - Spreading your investment risk among foreign companies, markets, and currencies that are different than the U.S. economy can help diversify and mitigate your overall portfolio risk.
  • For Sound Portfolio Construction - The systematic portfolio management process takes several factors into account to limit unnecessary risk and maximize exposure to the momentum factor. If a security becomes too large as a percentage of the portfolio it is trimmed to bring it back in line with the other security weights. The process also spreads the allocation among multiple macro sectors and limits the allocation to each based on the size of the macro sector. The process also seeks to spread out allocations within each macro sector to multiple industry groups if possible. The objective sell discipline is also an important of the portfolio construction process.
  • For Potential Tax Advantages over other Investment Structures - The Portfolio Manager believes that the ETF structure offers potential tax advantages over other investment structures, including separately managed accounts and mutual funds. Furthermore, this strategy was previously only available as a separately managed account with high investment minimums. AADR now makes the strategy available to a much broader group of investors.

Where can AADR Fit in a Traditional Portfolio?

AADR can serve multiple roles in a globally diversified equity portfolio as a compliment to a position in a broad based market cap weighted fund. Its broad diversification also allows it to serve as a standalone solution for foreign equity exposure.

5 Key Attributes

  1. Dorsey Wright Trend Following - AADR has a portfolio of 30-40 equities that demonstrate, in the Portfolio Manager’s opinion, favorable relative strength characteristics and pursuant to their proprietary macroeconomic sector ranking and individual stock rotation methodology.
  2. Unconstrained International Equity Portfolio - AADR is uniquely positioned from an investment opportunity perspective because it is not limited by style (value or growth), investment capitalization (small, mid or large), or even classification of international market (emerging or developed).
  3. Differentiation - AADR’s investment process is entirely systematic and seeks to remove human emotion from the decision process. This allows the Portfolio Manager the ability to continually execute their proven investment process through all types of different markets. It also allows the Portfolio Manager the ability to analyze a large number of markets which may be very different over time.
  4. Relative Strength Analysis - AADR uses relative strength which compares price performance within a universe of stocks. It provides a repeatable process to identify and select the leaders while avoiding the laggards. It is important to be equally good at identifying both long-term winners and losers.
  5. Disciplined Sell Process - Securities are automatically sold from the portfolio when they fall below a predetermined rank threshold. The sell rank is determined when the security is purchased and is not adjusted for different market scenarios. The sell process is entirely based on our objective ranks and does not allow for any portfolio manager discretion or overrides.

About American Depositary Receipts

An American Depositary Receipt (ADR) is a negotiable U.S. security that generally represents a company’s publicly traded equity or debt. Depositary Receipts are created when a broker purchases a non-U.S. company’s shares on its home stock market and delivers the shares to the depositary’s local custodian bank, and then instructs the depositary bank such as BNY Mellon, to issue Depositary Receipts.

About the Portfolio Manager

John G. Lewis, Senior Vice President & Senior Portfolio Manager
Mr. Lewis joined Dorsey Wright Money Management in 2002. As Senior Portfolio Manager, he is responsible for investment strategy across DWA’s funds, ETFs, UITs and SMA accounts. He has worked in the investment industry since 1994. Mr. Lewis has conducted extensive research on relative strength and has authored several original research papers on the subject and works closely with the investment team on new product development. He holds a Bachelor of Business Administration from the University of San Diego and an MBA from the University of Southern California.

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Morningstar Rating ™

10 Yr 5 Yr 3 Yr Overall Category # in Overall Category
N/A Foreign Large Growth 329
Overall Morningstar rating is derived from a weighted average of the fund's 3-, 5-, and 10- year (if applicable) risk-adjusted returns as of 10/31/2016. Category consists of 329 funds in 3 year, 279 in 5 year, and 190 in 10 year.

Manager Minutes, November 2016

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Price History

As of: 12/08/2016
NAV$40.80Closing Price$40.80
Change$-0.01Change$-0.04
Shares Outstanding450,000Volume7,732
4PM Bid/Offer Midpoint$40.89Premium/Discount$0.09
Assets Under Management$18,359,224.70
Premium/Discount Historical Data

 

Holdings

As of: 12/08/2016
Ticker Name Weight
EDN EMP DISTRIB Y COMERC NOR-ADR 8.44%
PAM PAMPA ENERGIA SA-SPON ADR 8.01%
TAL TAL EDUCATION GROUP- ADR 4.00%
SIMO SILICON MOTION TECHNOL-ADR 3.84%
SQM QUIMICA Y MINERA CHIL-SP ADR 3.53%
PBR PETROLEO BRASILEIRO-SPON ADR 3.43%
TX TERNIUM SA-SPONSORED ADR 3.38%
SSMXY SYSMEX CORP-UNSPON ADR 3.31%
BAK BRASKEM SA-SPON ADR 2.93%
CZZ COSAN LTD-CLASS A SHARES 2.92%
EDU NEW ORIENTAL EDUCATIO-SP ADR 2.91%
BSBR BANCO SANTANDER BRASIL-ADS 2.78%
HTHT CHINA LODGING GROUP-SPON ADS 2.78%
CTRP CTRIP.COM INTERNATIONAL-ADR 2.77%
NICE NICE LTD 2.77%
CB CHUBB LTD 2.75%
LFL LATAM AIRLINES GROUP-SP ADR 2.64%
CRH CRH PLC-SPONSORED ADR 2.61%
SBRCY SBERBANK PJSC -SPONSORED ADR 2.52%
SAP SAP SE-SPONSORED ADR 2.52%
BDORY BANCO DO BRASIL SA-SPON ADR 2.48%
SHI SINOPEC SHANGHAI-SPONS ADR 2.47%
DCM NTT DOCOMO INC-SPON ADR 2.40%
BBD BANCO BRADESCO-ADR 2.33%
IRS IRSA -SP ADR 2.30%
ITUB ITAU UNIBANCO H-SPON PRF ADR 2.27%
CRESY CRESUD S.A.-SPONS ADR 2.23%
SUHJY SUN HUNG KAI PROPERTIES LTD 2.17%
BVN CIA DE MINAS BUENAVENTUR-ADR 2.17%
UGP ULTRAPAR PARTICPAC-SPON ADR 2.14%
XIN XINYUAN REAL ESTATE CO L-ADR 1.96%
SID CIA SIDERURGICA NACL-SP ADR 1.93%
NCMGY NEWCREST MINING LTD-SPON ADR 1.43%
--- INVESCO GOVT AGENCY PRIV 1903 0.65%
--- CASH 0.21%

Shares are bought and sold at market price (closing price) not NAV and are not individually redeemed from the Fund. Market price returns are based on the midpoint of the bid/ask spread at 4:00 pm Eastern Time (when NAV is normally determined), and do not represent the return you would receive if you traded at other times. Holdings and allocations are subject to risks and to change. A holding identified with an "MM" at the end of its name indicates it is a Money Market fund.

Fund Basics

  • Symbol

    AADR

  • Exchange

    NYSE Arca

  • Inception Date

    07/20/2010

  • CUSIP

    00768Y206

  • Indicative Value

    AADR.IV

  • Options

    No

Fees & Expenses

  • Management Fee

    0.75%

  • Other Expenses

    0.87%

  • Acquired Fund Fees

    0.02%

  • Gross Expense Ratio

    1.64%

  • Fee Waiver and/or Expense Reimbursement

    -0.37%

  • Net Expense Ratio

    1.27%*

  • *The Advisor has contractually agreed to keep net expenses from exceeding 1.25% of the Fund’s average daily net assets for at least one year from the date of the prospectus and for successive one-year periods thereafter unless the agreement is terminated. This agreement is limited to the Fund’s direct operating expenses and, therefore, does not apply to “Acquired Fund Fees and Expenses.”