DWAW: 3rd Quarter 2021 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 & Holdings

2021 has been a market that has been through multiple leadership changes as growth was favored entering the year, then value came into favor for a few months until May, and since large cap growth has come back into a leadership role. DWAW shifted to value at the beginning of May which set up for its underperformance during the second quarter. DWAW shifted back into a growth allocation in August, but it wasn’t enough for the fund to outpace its benchmark during the second quarter underperforming by 2.85%.

​Top Holding(s)

Ticker Security Description Portfolio Weight %
RSP INVESCO S&P 500 EQUAL WEIGHT 50.04%
RPG INVESCO S&P 500 PURE GROWTH 49.69%

 

Top 10 Underlying Stock Exposure

Ticker Security Description Portfolio Weight %
MPWR Monolithic Power Systems, Inc. 1.37%
SIVB SVB Financial Group 1.36%
ETSY Etsy, Inc. 1.25%
TSLA Tesla Inc 1.22%
FTNT Fortinet, Inc. 1.21%
NOW ServiceNow, Inc. 1.10%
DXCM DexCom, Inc. 1.07%
URI United Rentals, Inc. 0.95%
NFLX Netflix, Inc. 0.94%
AMZN Amazon.com, Inc. 0.93%

As of 09.30.2021. 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 09.30.2021.

Given the overweighting of growth in DWAW, Information Technology is the highest weighted sector at 26.84% followed by Health Care at 17.23%. The next highest weighted sectors are Consumer Discretionary, Industrials, a­­­­nd Financials. The fund is currently underweighting Utilities, Real Estate, Energy, Materials, and Consumer Staples with none of them having more than 4% of the exposure.

As of 09.30.2021.

Respectfully,

Nasdaq Dorsey Wright
AdvisorShares Dorsey Wright FSM All Cap World ETF (DWAW) Portfolio Strategist

 

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.