DWAW: 1st Quarter 2022 Portfolio Review
Performance & Holdings
2022 has started off on a poor note for most domestic and international equity benchmarks with the MSCI All Country World Index (ACWI) finishing the quarter down -5.36%. DWAW did not fare any better in the first quarter and posted a loss of -9.94%. DWAW entered the year with a heavy growth tilt which led to underperformance for the quarter after a rough January. In February, both holdings were sold, and the new holdings shifted the portfolio’s focus from US large cap growth to US large cap value. The transition has been positive for performance so far with DWAW outperforming its benchmark since the start of February by roughly 3%.
The portfolio continues to be allocated to securities that displayed favorable relative strength characteristics during the fund’s last evaluation. The portfolio is made up of two ETFs, both of which have shown high relative strength versus the broad market. This past quarter has brought a change in leadership which led the fund to change its holdings in February with a move from growth to value.
|Ticker||Security Description||Portfolio Weight %|
|RPV||INVESCO S&P 500 PURE VALUE E||50.09%|
|RSP||INVESCO S&P 500 EQUAL WEIGHT||49.54%|
Top Underlying Stock Exposure
|Security Description||Ticker||Portfolio Weight %|
|Kraft Heinz Company||KHC||0.59%|
|Walgreens Boots Alliance Inc||WBA||0.58%|
|American Electric Power Company, Inc.||AEP||0.19%|
|T-Mobile US, Inc.||TMUS||0.16%|
|EPAM Systems, Inc.||EPAM||0.14%|
As of 03.31.2022. 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 03.31.2022.
Given the overweighting of value in DWAW, Financials is the highest weighted sector at 22.37% which is the only sector given a heavy overweighting in the portfolio. The rest of the sectors in the portfolio, aside from real estate, make up at least 5% of the sector exposure for the fund leading to a much more balanced sector allocation that has shifted more towards value and away from growth.
As of 03.31.2022.