AdvisorShares Dorsey Wright ETFs
Since 2016, Nasdaq Dorsey Wright (NDW) has been managing ETF strategies for AdvisorShares. As a leading provider of technical analysis research, portfolio-risk management, and relative strength investing, NDW now manages six AdvisorShares ETFs including core equity, multi-sector, international, micro, and NDW’s only short strategy.
All the AdvisorShares Dorsey Wright ETFs employ NDW’s proprietary systematic, relative strength strategies that remove human emotion from the day-to-day decision making.
DWAW
Global
AdvisorShares Dorsey Wright FSM All Cap World Equity ETF
An unconstrained global equity “go anywhere” strategy investing in domestic and foreign asset classes across any market cap and style, including emerging markets.
Uses NDW’s proprietary research and FSM* modeling to tactically allocate to the two funds in the FSM Core Solution All Cap World Strategy with the highest FSM rankings.
DWUS
U.S. Large-Cap
AdvisorShares Dorsey Wright FSM U.S. Core ETF
A targeted U.S. equity strategy using a technical, systematically-driven process to answer the question, “What part of the U.S. Large Cap Equity market should I own?”
Uses NDW’s proprietary research and FSM* modeling to tactically allocate to the two funds in the FSM Core Solution U.S. Core Strategy with the highest FSM rankings.
Targeted Asset Class Exposure
By tactically allocating to the top ranked asset classes based on NDW’s relative strength or FSM ranking and modeling, DWAW/ DWUS seek to identify and benefit from exposure to major leadership themes within their respective universes.
Tactical Defensive Investing
DWAW/ DWUS use a rules-based “offense / defense” investing feature.When the market displays overall weakness, as measured by a proprietary NDW indicator, the ETFs gradually begin to move to cash. Once the indicator signals market strength, the ETFs gradually move back to their respective equity exposure.
Alpha-Seeking Complement
Broad based indexes, by their nature, have the good and the bad, the strong and the weak. DWAW/ DWUS seek to add alpha with NDW’s historically successful trend following process and investment modeling that looks to identify the strongest stocks/ funds and asset classes while avoiding the weakest performers.
AADR
Foreign
AdvisorShares Dorsey Wright ADR ETF
Uses momentum growth signals and market price movement to identify and hold the most attractive foreign companies based on proprietary relative strength analysis.
Allocates to a focused portfolio of U.S.-traded ADRs across any market cap in developed and emerging markets. Relative strength determines the macroeconomic sectors and international market weightings.
DWSH
Hedging / Short
AdvisorShares Dorsey Wright Short ETF
Seeks positive returns in declining markets by opportunistically shorting equities with the weakest relative strength and turning laggards into winners.
Typically shorts 75-100 large-cap equities demonstrating the highest relative weakness based on NDW’s analysis. Does not use “geared” exposure, index swaps, nor require daily rebalancing.
Strategy Diversification
AADR’s / DWSH’s systematic portfolio management process takes several factors into account to limit unnecessary risk, to maximize exposure to the momentum factor, and to spread out allocations within its stock model. Portfolio holdings are regularly trimmed back in line with the other security weights. The ETFs’ objective sell discipline is an important component of the portfolio construction process.
Manager Diversification
Through AADR’s / DWSH’s established portfolio manager, spreading your investment risk among equities not correlated to the broader market may help diversify and mitigate your overall portfolio risk.
Alpha-Seeking Diversification
Broad based indexes, by their nature, have the good and the bad, the strong and the weak. AADR / DWSH seek to add alpha with NDW’s historically successful trend following process and investment modeling that looks to identify the strongest stocks and asset classes (weakest for DWSH) while avoiding the weakest (strongest for DWSH) performers.
*FSM (Fund Score Method) is NDW’s proprietary scoring system to measure ETFs and mutual funds based on trend analysis and relative strength.
Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained by visiting www.advisorshares.com. Please read the prospectus carefully before you invest. Foreside Fund Services, LLC, distributor.
Definitions
- Alpha, one of the most commonly quoted indicators of investment performance, is defined as the excess return on an investment relative to the return on a benchmark index
There is no guarantee that the Fund will achieve its investment objective. An investment in the Fund is subject to risk, including the possible loss of principal amount invested.
AADR: Emerging Markets, which consist of countries or markets with low to middle income economics can be subject to greater social, economic, regulatory and political uncertainties and can be extremely volatile. Other Fund risks include concentration risk, foreign securities and currency risk, ADRs which may be less liquid, large-cap risk, early closing risk, counterparty risk and trading risk, which can increase Fund expenses and may decrease Fund performance. The Fund is, also, subject to the same risks associated with the underlying ETFs, which can result in higher volatility.
DWAW / DWUS: The Advisor’s judgment about the markets, the economy, or companies may not anticipate actual market movements, economic conditions or company performance, and these factors may affect the return on your investment. The prices of equity securities rise and fall daily. These price movements may result from factors affecting individual issuers, industries or the stock market as a whole. Foreign investing involves special risks, such as risk of loss from currency fluctuation or political or economic uncertainty. Investments in emerging or offshore markets are generally less liquid and less efficient than investments in developed markets and are subject to additional risks, such as risks of adverse governmental regulation and intervention or political developments. The Fund(s) may experience relatively high portfolio turnover, which may result in increased transaction costs and performance that is lower than expected and potentially greater tax exposure. The market value of debt securities held by the Fund(s) typically changes as interest rates change, as demand for the instruments changes, and as actual or perceived creditworthiness of an issuer changes.
DWMC: Stock prices of micro-cap companies are significantly more volatile, and more vulnerable to adverse business and economic developments, than those of larger companies. Micro-cap stocks may also be thinly traded, making it difficult for the Fund to buy and sell them. There is no guarantee that the Fund will achieve its investment objective.
DWSH: Short sales are transactions in which the Fund sells a security it does not own. To complete the transaction, the Fund must borrow the security to make delivery to the buyer. The Fund is then obligated to replace the security borrowed by purchasing the security at the market price at the time of replacement. If the underlying security goes down in price between the time the Fund sells the security and buys it back, the Fund will realize a gain on the transaction. Conversely, if the underlying security goes up in price during the period, the Fund will realize a loss on the transaction. Any such loss is increased by the amount of premium or interest the Fund must pay to the lender of the security. Likewise, any gain will be decreased by the amount of premium or interest the Fund must pay to the lender of the security. Because a short position loses value as the security’s price increases, the loss on a short sale is theoretically unlimited. Short sales involve leverage because the Fund borrows securities and then sells them, effectively leveraging its assets. The use of leverage may magnify gains or losses for the Fund. As with any fund, there is no guarantee that the Fund will achieve its investment objective.