DWAW: 4th Quarter 2023 Portfolio Review
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.
DWAW greatly benefitted from its heavy overweight in growth and technology in the fourth quarter posting a return of 13.71% (market). DWAW’s strong fourth quarter outpaced its benchmark, the MSCI ACWI Index by more than 200 bps. DWAW did not make any allocation changes in the fourth quarter.
The portfolio continues to be allocated to securities that displayed favorable relative strength characteristics during the fund’s last evaluation. As mentioned previously, DWAW has a hefty growth and technology exposure. The portfolio is made up of two ETFs, both of which have shown high relative strength versus the broad market. DWAW now holds the First Trust Nasdaq-100 Equal Weighted Index Fund (QQEW) and Invesco QQQ Trust Series I (QQQ).
|Portfolio Weight %
|FIRST TRUST NASDQ 100 EQ WEI
|INVESCO QQQ TRUST SERIES 1
As of 12.31.2023. Cash not included.
With the rotation out of value, DWAW now has much more exposure to technology and consumer discretionary. Financials and industrials lost the most exposure due to the May changes. Real estate, energy, utilities, materials, and financials each make up less than 5% of the fund’s exposure. However, due to the inclusion of EFA, only 72% of the underlying sector exposure is accounted for so they number displayed may not accurately reflect the actual exposure.
As of 12.31.2023.
Nasdaq Dorsey Wright
AdvisorShares Dorsey Wright FSM All Cap World ETF (DWAW) Portfolio Model Manager