DWAW: 4th Quarter 2024 Portfolio Review
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
DWAW put together a strong fourth quarter with a return of 2.52% (NAV) and 2.47% (market) besting its benchmark, the MSCI ACWI Index, by over 3.5%. DWAW made a change in the fourth quarter that tilted it more toward growth which helped it shake off weakness in much of the US equity market. For the 2024 year, DWAW posted a gain of 18.65% (NAV) and 18.69% (market) while its benchmark, MSCI ACWI Index posted a gain of 17.49%.
Holdings
The portfolio continues to be allocated to securities that displayed favorable relative strength characteristics during the fund’s last evaluation. As mentioned previously, DWAW rotated out of some of its blend exposure and into mid cap growth. While there were changes to the holdings, DWAW is still exclusively allocated to the US market. The portfolio is made up of two ETFs, both of which have shown high relative strength versus the broad market. DWAW now holds the iShares Morningstar Mid-Cap Growth ETF (IMCG) and iShares Morningstar U.S. Equity ETF (ILCB).
Top Holding(s)
| Ticker | Security Description | Portfolio Weight % |
| IMCG | ISHARES MORNINGSTAR MID-CAP | 49.97% |
| ILCB | ISHARES MORNINGSTAR U.S. EQU | 49.71% |
As of 12.31.2024. Cash not included. Holdings subject to change.
Top 10 Underlying Stock Exposure
| Security Description | Ticker | Portfolio Weight % |
| Apple Inc. | AAPL | 3.65% |
| NVIDIA Corporation | NVDA | 3.06% |
| Microsoft Corporation | MSFT | 3.02% |
| Amazon.com, Inc. | AMZN | 2.01% |
| Meta Platforms Inc Class A | META | 1.23% |
| Tesla, Inc. | TSLA | 1.09% |
| Alphabet Inc. Class A | GOOGL | 1.07% |
| Broadcom Inc. | AVGO | 1.02% |
| Alphabet Inc. Class C | GOOG | 0.95% |
| Berkshire Hathaway Inc. Class B | BRK.B | 0.79% |
As of 12.31.2024. Holdings subject to change.
Sector
With the rotation into the growth style box, DWAW has more exposure to the technology sector with over 20% of the underlying sector exposure. Industrials, consumer discretionary, and financials each have over 10% sector exposure. On the other hand, materials, energy, and utilities are underweighted with each having less than 3% sector exposure.
12.31.2024. Holdings subject to change. Source: Nasdaq Dorsey Wright.
Respectfully,
Nasdaq Dorsey Wright
AdvisorShares Dorsey Wright FSM All Cap World ETF (DWAW) Portfolio Model Manager
Past Commentary
Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus or summary 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.