DWAW: 3rd Quarter 2022 Portfolio Review
Performance & Holdings
2022 has been a tough year for most domestic and international equity benchmarks with the MSCI ACWI Index finishing the third quarter down -6.82%. DWAW fared about the same in the third quarter relative to its benchmark with a loss of -7.45%. DWAW entered the year with a heavy growth tilt which led to underperformance during the start of the year after a rough January. In February, both holdings were sold, and the new holdings shifted focus from US large cap growth to US large cap value. The fund continued to move more defensively in the second quarter as it picked up low volatility exposure in May. Then in August, DWAW rotated out of low volatility and into large blend which still leaves the portfolio with an overweight towards large cap value.
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 August to a large cap value tilt.
|Ticker||Security Description||Portfolio Weight %|
|RPV||INVESCO S&P 500 PURE VALUE ETF||49.98%|
|RSP||INVESCO S&P 500 EQUAL WEIGHT||48.66%|
Top Underlying Stock Exposure
|Security Description||Ticker||Portfolio Weight %|
|Berkshire Hathaway Inc. Class B||BRK.B||1.22%|
|Valero Energy Corporation||VLO||1.17%|
|CVS Health Corporation||CVS||0.95%|
|Prudential Financial, Inc.||PRU||0.91%|
|Everest Re Group, Ltd.||RE||0.90%|
As of 09.30.2022. 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 09.30.2022.
Given the overweighting of value in DWAW, financials is the highest weighted sector at 22.00%. Given the rotation out of low volatility, exposure to consumer staples and utilities fell in the third quarter but consumer staples still have a notable allocation of 8.52%. Healthcare is now the second-highest weighted sector with 12.84% of the overall allocation. Real estate and communication services have the lowest weightings of the eleven major sectors.
As of 09.30.2022.
Nasdaq Dorsey Wright
AdvisorShares Dorsey Wright FSM All Cap World ETF (DWAW) Portfolio Strategist