DWAW: 4th Quarter 2022 Portfolio Review
Strategy
Performance
2022 has been a tough year for most domestic and international equity benchmarks with the MSCI ACWI finishing the year down -18.36%. DWAW fared slightly better in 2022 relative to its benchmark with a loss of -17.53%. However, the fourth quarter was a much better quarter for equites. DWAW returned +11.60% over the fourth quarter which outpaced the MSCI ACWI by 1.84%. DWAW entered the year with a heavy growth tilt which led to underperformance during the start of the year after a rough January. In February, both holdings were sold, and the new holdings shifted focus from US large cap growth to US large cap value. The fund continued to move more defensively in the second quarter as it picked up low volatility exposure in May. Then in August, DWAW rotated out of low volatility and into large blend which still leaves the portfolio with an overweight towards large cap value. The ETF maintained this exposure during the fourth quarter and benefited from its overweight towards value.
Holdings
Top Holding(s)
| Ticker | Security Description | Portfolio Weight % |
| RSP | INVESCO S&P 500 EQUAL WEIGHT WTF | 50.72% |
| RPVP | INVESCO S&P 500 PURE VALUE ETF | 49.09% |
Top Underlying Stock Exposure
| Security Description | Ticker | Portfolio Weight % |
| Lumen Technologies, Inc. | LUMN | 1.69% |
| Paramount Global Class B | PARA | 1.48% |
| DISH Network Corporation Class A | DISH | 1.43% |
| WestRock Company | WRK | 1.24% |
| General Motors Company | GM | 1.19% |
| Mohawk Industries, Inc. | MHK | 1.15% |
| Phillips 66 | PSX | 1.14% |
| Walgreens Boot Alliance, Inc. | WBA | 1.13% |
| Viatris, Inc. | VTRS | 1.08% |
| Valero Energy Corporation | VLO | 1.06% |
As of 12.31.2022. 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 12.31.2022.
Given the overweighting of value in DWAW, financials is the highest weighted sector at 17.67%. Given the rotation out of low volatility, exposure to consumer staples and utilities fell in the third quarter but consumer staples still have a notable allocation of 7.16%. Consumer discretionary is now the second-highest weighted sector with 13.61% of the overall allocation. Real estate and utilities have the lowest weightings of the eleven major sectors.
As of 12.31.2022.
Respectfully,
Nasdaq Dorsey Wright
AdvisorShares Dorsey Wright FSM All Cap World ETF (DWAW) Portfolio Model Manager
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.
