DWAW: 4th Quarter 2021 Portfolio Review

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. For the fund’s most recent standardized and month-end performance, please click www.advisorshares.com/etfs/dwaw.

Strategy

The AdvisorShares Dorsey Wright FSM All Cap World Equity ETF’s (DWAW) uses relative strength to allocate towards the strongest performing areas of Global Markets including size, style, broad market, and factor ETFs. The strategy implements Dorsey Wright’s proprietary Fund Scoring Method (FSM) which is built around relative strength and momentum. The top two scoring funds at each seasonal quarterly evaluation are selected as the holdings.  The strategy is not constrained to holding a set allocation to any sector, style, cap, or factor. This allows the portfolio to over or underweight markets to concentrate on areas of strength in the global market, often pushing the portfolio to vary dramatically from a standard broad market benchmark.

Performance & Holdings

2021 has been a market that has been through multiple leadership changes as growth was favored entering the year, then value came into favor for a few months until May, and since large cap growth has come back into a leadership role. DWAW shifted to value at the beginning of May which set up for its underperformance during the second quarter. DWAW shifted back into a growth allocation in August. For the 4th quarter, DWAW outperformed the MSCI ACWI, 7.98% and 6.68% respectively,  but it wasn’t enough for the fund to outpace its benchmark during 2021.

​Top Holding(s)

The portfolio continues to be allocated to securities that displayed favorable relative strength characteristics during the fund’s last evaluation. The portfolio is made up of two ETFs, both of which have shown high relative strength versus the broad market. This past quarter has brought a change in leadership which led the fund to change its holdings in November with a move from blend to growth.

Ticker Security Description Portfolio Weight %
RPG INVESCO S&P 500 PURE GROWTH 50.13%
QQQM INVESCO NASDAQ 100 ETF 49.82%

 

Top Underlying Stock Exposure

Ticker Security Description Portfolio Weight %
AAPL Apple Inc. 6.44%
MSFT Microsoft Corporation 5.76%
AMZN Amazon.com, Inc. 3.91%
TSLA Tesla Inc 3.45%
NVDA NVIDIA Corporation 3.31%
FB Meta Platforms Inc. Class A 3.06%
GOOG Alphabet Inc. Class C 2.37%
GOOGL Alphabet Inc. Class A 2.31%
AMD Advanced Micro Devices, Inc. 1.76%
FTNT Fortinet, Inc. 1.71%

As of 12.31.2021. Cash is not included.

Geographic & Sector Allocations

The portfolio’s universe of funds to choose from includes domestic, emerging, and developed markets, but is currently allocated only to the domestic equity market.

As of 12.31.2021.

Given the overweighting of growth in DWAW, Information Technology is the highest weighted sector at 43.79% followed by Consumer Discretionary at 15.14%. The next highest weighted sectors are Health Care, Communication Services, and Financials. The fund is currently underweighting Utilities, Real Estate, Energy, Materials, and Consumer Staples with none of them having more than 4% of the exposure.

As of 12.31.2021.

Respectfully,

Nasdaq Dorsey Wright
AdvisorShares Dorsey Wright FSM All Cap World ETF (DWAW) Portfolio Strategist

 


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. Investing Involves risk including possible loss of principal. 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. 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 market value of debt securities held by the Fund typically changes as interest rates change, as demand for the instruments changes, and as actual or perceived creditworthiness of an issuer changes. 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. The views in this commentary are those of the portfolio manager and may not reflect his views on the date this material is distributed or anytime thereafter. These views are intended to assist shareholders in understanding their investments and do not constitute investment advice.