(AADR) DORSEY WRIGHT ADR ETF

AADR

Overview

The AdvisorShares Dorsey Wright ADR ETF (Ticker: AADR) is an actively managed strategy that seeks long-term capital appreciation using a technical, systematically-driven investment approach that seeks to outperform international benchmarks such as the MSCI EAFE Index and the BNY Mellon Classic ADR Index. AADR is managed by Dorsey, Wright & Associates, LLC, a firm renowned for their core philosophy of relative strength investing, which AADR’s investment focus follows. Relative strength investing involves buying securities that have appreciated in price more than the other securities in their investment universe and holding those securities until they exhibit sell signals. AADR’s investment process is purely systematic and removes any human emotion from the day-to-day decision making.

In implementing AADR’s strategy, Dorsey Wright measures relative strength across both macroeconomic sector and international equity models and then takes an unconstrained approach to selecting securities for its international portfolio. The investment strategy does not give consideration to the allocation between developed and emerging markets, and will allocate between the two depending on global price trends.

Symbol Exchange Inception Date CUSIP Indicative NAV
AADR Nasdaq 7/20/2010 00768Y206 AADR.NV
<strong>Why Invest in AADR?</strong>

AADR can serve as an alpha-seeking complement to a broad-based market cap weighted position, such as a fund that tracks the MSCI EAFE Index, as well as a standalone investment solution for international equity exposure.

<strong>5 Key Attributes</strong>
  1. Concentrated Portfolio of Highest-Ranked – AADR typically has a portfolio of less than 40 equities that demonstrate favorable relative strength characteristics according to Dorsey Wright’s 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. Systematic Approach – AADR’s investment process is entirely systematic and is designed to remove human emotion from the decision process. This approach allows the portfolio manager the ability to continually execute their proven investment process through all types of different markets. The process also allows the portfolio manager the ability to analyze a large number of markets that may become very different over time.
  4. Relative Strength Analysis – AADR uses relative strength which compares price performance within a universe of stocks. Relative strength investing 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 technical, systematic ranks and does not allow for any portfolio manager discretion or overrides.
<strong>About American Depositary Receipts</strong>

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.

<strong>About the Portfolio Manager</strong>

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. 

Fund

Price History

As of 12/1/2021

NAV $61.37 Closing Price $61.05
Change $-0.19 Close Change $-0.44
Shares Outstanding 1,210,000 Volume 6,897
4PM Bid/Offer Midpoint $61.32 Premium Discount $-0.05
Assets Under Management $74,258,732.24 30-Day Median bid-ask Spread 0.0041721
Premium/Discount Historical Data | NAV Historical Data | Daily Premium/Discount Historical Data

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.

FUND

Performance

As of 10/31/2021

  NAV Market Price Return MSCI EAFE Index
1 Month 2.35 2.27 2.46
3 Months -2.75 -2.9 1.24
YTD 7.21 7.42 11.01
1 Year 22.2 22.49 34.18
3 Years 12.31 12.25 11.54
5 Years 9.99 9.97 9.79
10 Years 9.17 9.19 7.37
Since Inception (7/20/2010, Annualized) 9.46 9.44 7.43

As of 9/30/2021

  NAV Market Price Return MSCI EAFE Index
1 Month -6.36 -6.36 -2.9
3 Months -4.15 -4.13 -0.45
YTD 4.75 5.04 8.35
1 Year 15.21 15.22 25.73
3 Years 6.2 6.21 7.62
5 Years 10.05 9.96 8.81
10 Years 10.09 10.11 8.1
Since Inception (7/20/2010, Annualized) 9.31 9.3 7.25

Performance data quoted represents past performance and is no guarantee of future results. All Fund data and performance data quoted is believed to be accurate, and unless otherwise stated, is sourced from the Fund administrator, the Advisor’s or Sub-Advisor’s proprietary data, and Morningstar. 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

Holdings

As of

Excel    CSV

Date Account Symbol Stock Ticker Security Number Security Description Shares/Par (Full) Price (Base) Traded Market Value (Base) Portfolio Weight % Asset Group
12/01/2021 AADR ASML N07059210 ASML HOLDING NV-NY REG SHS 6,269.00 804 5,040,276.00 6.79% FS
LVMUY 502441306 LVMH MOET HENNESSY-UNSP ADR 21,267.00 153.75 3,269,801.25 4.40% FS
BNTX 09075V102 BIONTECH SE-ADR 9,667.00 334.48 3,233,418.16 4.36% FS
DAC Y1968P121 DANAOS CORP 47,038.00 65.69 3,089,926.22 4.16% FS
TTM 876568502 TATA MOTORS LTD-SPON ADR 92,020.00 31.28 2,878,385.60 3.88% FS
BCYC 088786108 BICYCLE THERAPEUTICS PLC-ADR 46,010.00 56.67 2,607,386.70 3.51% FS
NXPI N6596X109 NXP SEMICONDUCTORS NV 10,528.00 223 2,347,744.00 3.16% FS
NVO 670100205 NOVO-NORDISK A/S-SPONS ADR 20,476.00 107.28 2,196,665.28 2.96% FS
IBN 45104G104 ICICI BANK LTD-SPON ADR 116,364.00 18.52 2,155,061.28 2.90% FS
TX 880890108 TERNIUM SA-SPONSORED ADR 55,863.00 37.72 2,107,152.36 2.84% FS
ERJ 29082A107 EMBRAER SA-SPON ADR 162,921.00 12.92 2,104,939.32 2.84% FS
DEO 25243Q205 DIAGEO PLC-SPONSORED ADR 10,238.00 200.77 2,055,483.26 2.77% FS
ABB 000375204 ABB LTD-SPON ADR 58,714.00 34.15 2,005,083.10 2.70% FS
SSL 803866300 SASOL LTD-SPONSORED ADR 118,730.00 16.41 1,948,359.30 2.62% FS
CRH 12626K203 CRH PLC-SPONSORED ADR 39,206.00 48.02 1,882,672.12 2.54% FS
ING 456837103 ING GROEP N.V.-SPONSORED ADR 137,638.00 13.66 1,880,135.08 2.53% FS
KT 48268K101 KT CORP-SP ADR 143,012.00 12.61 1,803,381.32 2.43% FS
MT 03938L203 ARCELORMITTAL-NY REGISTERED 66,832.00 26.89 1,797,112.48 2.42% FS
OGZPY 368287207 GAZPROM PJSC-SPON ADR 189,240.00 9.21 1,742,900.40 2.35% FS
GMAB 372303206 GENMAB A/S -SP ADR 45,443.00 38 1,726,834.00 2.33% FS
IMAB 44975P103 I-MAB-SPONSORED ADR 28,844.00 59.66 1,720,833.04 2.32% FS
E 26874R108 ENI SPA-SPONSORED ADR 63,379.00 26.38 1,671,938.02 2.25% FS
BBVA 05946K101 BANCO BILBAO VIZCAYA-SP ADR 315,987.00 5.27 1,665,251.49 2.24% FS
RELX 759530108 RELX PLC - SPON ADR 54,077.00 30.72 1,661,245.44 2.24% FS
HDB 40415F101 HDFC BANK LTD-ADR 24,690.00 66.3 1,636,947.00 2.21% FS
TS 88031M109 TENARIS SA-ADR 82,203.00 19.64 1,614,466.92 2.17% FS
ICLR G4705A100 ICON PLC 5,884.00 272.97 1,606,155.48 2.16% FS
UBS H42097107 UBS GROUP AG-REG 93,216.00 17.19 1,602,383.04 2.16% FS
VWAGY 928662600 VOLKSWAGEN A G-UNSPON ADR 54,151.00 29.14 1,577,960.14 2.13% FS
GGAL 399909100 GRUPO FINANCIERO GALICIA-ADR 166,100.00 9.43 1,566,323.00 2.11% FS
ALC H01301128 ALCON INC 19,862.00 78.36 1,556,386.32 2.10% FS
AMX 02364W105 AMERICA MOVIL-SPN ADR CL L 86,832.00 17.84 1,549,082.88 2.09% FS
SKM 78440P306 SK TELECOM CO LTD-SPON ADR 34,897.23 43.81 1,528,847.52 2.06% FS
EQNR 29446M102 EQUINOR ASA-SPON ADR 59,600.00 24.63 1,467,948.00 1.98% FS
BCS 06738E204 BARCLAYS PLC-SPONS ADR 141,715.00 9.89 1,401,561.35 1.89% FS
VLRS 21240E105 CONTROLADORA VUELA CIA-ADR 74,246.00 14.64 1,086,961.44 1.46% FS
DSX Y2066G104 DIANA SHIPPING INC 277,000.00 3.92 1,085,840.00 1.46% FS
OP Y6430L103 OCEANPAL INC 27,700.00 6.54 181,158.00 0.24% FS
X9USDAIMP INVESCO GOVT AGENCY PRIV 1903 194,405.72 1 194,405.72 0.26% MM
CASH 5,050.90 100 5,050.90 0.01% CA

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

Characteristics

As of 10/31/2021

AADR Emerging vs Developed

AADR Country Allocation

FUND

Fees & Expenses

Management Fee 0.75%
Other Expenses 0.21%
Total Annual Operating Expenses 0.96%
Fee/Expense Recapture* 0.14%
Total Annual Expense Ratio after Recapture 1.10%

*The Advisor has contractually agreed to keep net expenses from exceeding 1.10% 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.

Last Ten

Fund Distributions

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 the Fund’s website at www.AdvisorShares.com. Please read the prospectus carefully before you invest. Foreside Fund Services, LLC, distributor.

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. 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.

This Fund may not be suitable for all investors.
See prospectus for detail regarding risk.

Definitions

Alpha: 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.

ADR: 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 to issue Depositary Receipts