DWAW: 2nd Quarter 2023 Portfolio Review
Strategy
Performance
During the second quarter, DWAW completely changed its allocation. It now has international developed market and domestic growth as its primary focus. The shift to international equities came after they had a strong start to 2023 but have cooled off over the last month. DWAW’s benchmark, the MSCI All-Cap World Index (ACWI) returned 6.18% over the second quarter while DWAW posted a smaller gain of 1.43% (NAV). The two changes for DWAW occurred at the beginning of May, so it’s had its current allocation for just about 2 months.
Holdings
The portfolio continues to be allocated to securities that displayed favorable relative strength characteristics during the fund’s last evaluation. As mentioned previously, the May evaluation overhauled DWAW’s holdings. 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 the iShares MSCI EAFE ETF (EFA).
Top Holding(s)
| Ticker | Security Description | Portfolio Weight % |
| QQEW | FIRST TRUST NASDQ 100 EQ WEI | 52.06% |
| EFA | ISHARES MSCI EAFE ETF | 46.87% |
As of 06.30.2023. Cash not included.
Top Underlying Stock Exposure
| Security Description | Ticker | Portfolio Weight % |
| Nestle S.A. | NSRGF | 0.99% |
| ASML Holding NV | ASMLF | 0.87% |
| Novo Nordisk A/S Class B | NONOF | 0.80% |
| LVMH Moet Hennessy Louis Vuitton SE | LVMHF | 0.78% |
| AstraZeneca PLC | AZNCF | 0.67% |
| Novartis AG | NVSEF | 0.62% |
| Shell Plc | RYDAF | 0.61% |
| Sirius XM Holdings, Inc. | SIRI | 0.60% |
| Old Dominion Freight Line, Inc. | ODFL | 0.59% |
| Charter Communications, Inc. Class A | CHTR | 0.56% |
As of 06.30.2023.
Geographic & Sector Allocations
The portfolio’s universe of funds to choose from includes domestic, emerging, and developed markets. The latest changes marked a major shift in DWAW’s regional make-up and now has significant Europe and Asia exposure at the expense of North America.
As of 06.30.2023.
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 06.30.2023.
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, 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.
