DWAW: 2nd Quarter 2023 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

​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


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.